-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
VzDPa5C3JdfgSNZkWaBTKFA7SSNaeEIT3Fs04x9He1neLdxTOtNwBwGnUQ45hh2j
Y6RXKuwFZemnmBnWpjtOUQ==
UNITED STATES FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4118
Fidelity Securities Fund 82 Devonshire St., Boston, Massachusetts 02109 Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109 Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end:
July 31
Date of reporting period:
January 31, 2005
Item 1. Reports to Stockholders
Fidelity®
Portfolio
Semiannual Report
January 31, 2005
(2_fidelity_logos)
(Registered_Trademark)
Chairman's Message
3
Ned Johnson's message to shareholders.
Shareholder Expense
Example
4
An example of shareholder expenses.
Investment Changes
5
A summary of major shifts in the fund's
investments over the past six months.
Investments
6
A complete list of the fund's investments
with their market values.
Financial Statements
15
Statements of assets and liabilities,
operations, and changes in net assets,
as well as financial highlights.
Notes
19
Notes to the financial statements.
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30,
visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web
site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc.
and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks
of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of
the shareholders of the fund. This report is not authorized for distribution to prospective investors in the
fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at
http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference
Room in Washington, DC. Information regarding the operation of the SEC's Public Reference
Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio
holdings, view the most recent quarterly holdings report, semiannual report, or annual report
on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and
much of it has been more critical than I believe is warranted. Allegations that some
companies have been less than forthright with their shareholders have cast a shadow on
the entire industry. I continue to find these reports disturbing, and assert that they do not
create an accurate picture of the industry overall. Therefore, I would like to remind
everyone where Fidelity stands on these issues. I will say two things specifically regarding
allegations that some mutual fund companies were in violation of the Securities and
Exchange Commission's forward pricing rules or were involved in so-called "market timing"
activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to
obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not
deceive the company through fraudulent acts. However, we are extremely diligent in
preventing fraud from occurring in this manner - and in every other. But I underscore
again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to
predatory short-term trading that adversely affects shareholders in a mutual fund. Back in
the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors
- - to discourage this activity. Further, we took the lead several years ago in developing a
Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am
confident we will find other ways to make it more difficult for predatory traders to operate.
However, this will only be achieved through close cooperation among regulators, legislators
and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the
mutual fund industry from time to time. That is true of any industry. When this occurs,
confessed or convicted offenders should be dealt with appropriately. But we are still
concerned about the risk of over-regulation and the quick application of simplistic
solutions to intricate problems. Every system can be improved, and we support and applaud
well thought out improvements by regulators, legislators and industry representatives that
achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to
justify your trust. When our family founded this company in 1946, we had only a few
hundred customers. Today, we serve more than 18 million customers including individual
investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that
we must always work to improve all aspects of our service to you. In turn, we urge you to
continue your active participation with your financial matters, so that your interests can be
well served.
Best regards,
/s/Edward C. Johnson 3d Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and
(2) ongoing costs, including management fees and other Fund expenses. This Example is
intended to help you understand your ongoing costs (in dollars) of investing in the Fund
and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period
and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and
actual expenses. You may use the information in this line, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide your
account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 =
8.6), then multiply the result by the number in the first line under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account during
this period. A small balance maintenance fee of $12.00 that is charged once a year may
apply for certain accounts with a value of less than $2,000. This fee is not included in the
table below. If it was, the estimate of expenses you paid during the period would be higher,
and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values
and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate
of return of 5% per year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do so, compare this
5% hypothetical example with the 5% hypothetical examples that appear in the
share-holder 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.
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.
Beginning Ending Expenses Paid Actual
$ 1,000.00
$ 1,097.20
$ 4.55
Hypothetical (5% return per year
before expenses)
$ 1,000.00
$ 1,020.87
$ 4.38
* Expenses are equal to the Fund's annualized expense ratio of .86%; multiplied by
the average account value over the period, multiplied by 184/365 (to reflect the
one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005
% of fund's % of fund's net assets Microsoft Corp.
11.4
13.2
Dell, Inc.
5.7
5.5
Intel Corp.
5.5
3.8
Cisco Systems, Inc.
4.7
0.2
Yahoo!, Inc.
2.5
2.2
Nextel Communications, Inc. Class A
2.2
2.1
Oracle Corp.
1.9
0.3
QUALCOMM, Inc.
1.7
0.0
Cognizant Technology Solutions Corp. Class A
1.4
1.1
Amgen, Inc.
1.2
0.0
38.2
Top Five Market Sectors as of January 31, 2005
% of fund's % of fund's net assets Information Technology
64.5
59.4
Health Care
10.8
10.4
Consumer Discretionary
9.7
11.0
Industrials
3.7
6.1
Telecommunication Services
3.6
4.5
Asset Allocation (% of fund's net assets)
As of January 31, 2005 *
As of July 31, 2004 **
Stocks 97.7%
Stocks 98.7%
Short-Term
Short-Term
* Foreign 6.9%
** Foreign 13.3%
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.7%
Shares
Value (Note 1)
(000s)
CONSUMER DISCRETIONARY - 9.7%
Auto Components - 0.2%
Keystone Automotive Industries, Inc. (a)
574,300
$ 12,635
Hotels, Restaurants & Leisure - 1.1%
Buffalo Wild Wings, Inc. (a)
156,100
6,320
Panera Bread Co. Class A (a)(d)
820,880
41,865
Penn National Gaming, Inc. (a)
108,900
7,143
Red Robin Gourmet Burgers, Inc. (a)
365,100
17,251
The Cheesecake Factory, Inc. (a)
378,600
12,255
84,834
Household Durables - 0.3%
LG Electronics, Inc.
374,230
25,739
Internet & Catalog Retail - 1.5%
Amazon.com, Inc. (a)
516,500
22,323
Blue Nile, Inc. (d)
546,500
15,302
Drugstore.com, Inc. (a)
1,014,900
2,898
eBay, Inc. (a)
731,900
59,650
eDiets.com, Inc. (a)
574,341
2,481
Shopping.Com Ltd.
387,700
8,630
111,284
Media - 3.4%
Comcast Corp.:
Class A (a)
1,173,500
37,775
Class A (special) (a)
1,194,600
37,761
Cumulus Media, Inc. Class A (a)
595,632
8,244
EchoStar Communications Corp. Class A
1,680,622
51,276
Emmis Communications Corp. Class A (a)
108,000
1,898
Lamar Advertising Co. Class A (a)
877,900
37,732
NTL, Inc. (a)
998,643
67,938
XM Satellite Radio Holdings, Inc. Class A (a)
502,700
16,041
258,665
Specialty Retail - 3.1%
American Eagle Outfitters, Inc.
337,100
17,125
Big 5 Sporting Goods Corp.
359,000
9,829
Hot Topic, Inc. (a)
2,051,000
39,748
Rent-A-Center, Inc. (a)
219,100
5,366
Ross Stores, Inc.
1,950,000
55,809
Select Comfort Corp. (a)
1,298,100
25,404
Staples, Inc.
1,676,700
54,895
Common Stocks - continued
Shares
Value (Note 1)
(000s)
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
Steiner Leisure Ltd. (a)
413,700
$ 12,833
West Marine, Inc. (a)
779,000
18,392
239,401
Textiles, Apparel & Luxury Goods - 0.1%
Brown Shoe Co., Inc.
75,600
2,189
Warnaco Group, Inc. (a)
390,000
8,428
10,617
TOTAL CONSUMER DISCRETIONARY
743,175
CONSUMER STAPLES - 0.5%
Food & Staples Retailing - 0.5%
Costco Wholesale Corp.
821,700
38,842
ENERGY - 1.7%
Energy Equipment & Services - 1.0%
Patterson-UTI Energy, Inc.
4,195,600
81,604
Oil & Gas - 0.7%
Ashland, Inc.
38,500
2,363
Top Tankers, Inc. (e)
1,763,200
29,780
Valero Energy Corp.
381,200
19,834
51,977
TOTAL ENERGY
133,581
FINANCIALS - 3.2%
Capital Markets - 1.2%
Ameritrade Holding Corp. (a)
5,725,500
74,031
Calamos Asset Management, Inc. Class A
853,600
21,562
95,593
Commercial Banks - 2.0%
Fifth Third Bancorp
1,111,600
51,656
Nara Bancorp, Inc.
434,000
8,658
Silicon Valley Bancshares (a)
642,000
28,017
Texas Capital Bancshares, Inc. (a)
400,000
9,484
Texas Regional Bancshares, Inc. Class A
113,800
3,522
UCBH Holdings, Inc.
353,400
15,574
Common Stocks - continued
Shares
Value (Note 1)
(000s)
FINANCIALS - continued
Commercial Banks - continued
Wachovia Corp.
375,077
$ 20,573
Zions Bancorp
181,800
12,330
149,814
TOTAL FINANCIALS
245,407
HEALTH CARE - 10.8%
Biotechnology - 5.6%
Affymetrix, Inc. (a)
485,100
19,967
Alkermes, Inc. (a)
704,800
8,930
Amgen, Inc. (a)
1,526,600
95,016
Biogen Idec, Inc. (a)
968,100
62,888
BioMarin Pharmaceutical, Inc. (a)
1,377,600
8,334
Celgene Corp. (a)
799,800
21,867
Cephalon, Inc. (a)
486,900
23,955
Enzon Pharmaceuticals, Inc. (a)
804,900
10,383
Gen-Probe, Inc. (a)
143,000
6,980
Genentech, Inc. (a)
760,400
36,279
ImmunoGen, Inc. (a)
51,041
356
Invitrogen Corp. (a)
725,700
49,863
MedImmune, Inc. (a)
876,000
20,722
Millennium Pharmaceuticals, Inc. (a)
3,228,400
29,734
ONYX Pharmaceuticals, Inc. (a)
623,100
18,095
OSI Pharmaceuticals, Inc. (a)
181,000
11,783
Seattle Genetics, Inc. (a)
551,300
3,264
428,416
Health Care Equipment & Supplies - 1.3%
American Medical Systems Holdings, Inc. (a)
605,200
23,766
Cytyc Corp. (a)
484,000
12,124
DENTSPLY International, Inc.
283,650
15,904
Respironics, Inc. (a)
772,300
44,716
96,510
Health Care Providers & Services - 2.9%
Accredo Health, Inc. (a)
930,100
27,698
Caremark Rx, Inc. (a)
456,660
17,855
Express Scripts, Inc. (a)
501,500
37,206
HealthSouth Corp. (a)
86,700
507
Henry Schein, Inc. (a)
462,100
31,451
Humana, Inc. (a)
1,404,300
48,125
Common Stocks - continued
Shares
Value (Note 1)
(000s)
HEALTH CARE - continued
Health Care Providers & Services - continued
IMPATH, Inc. (a)
303,600
$ 1,312
PacifiCare Health Systems, Inc. (a)
381,500
23,474
Patterson Companies, Inc. (a)
233,200
10,862
Sun Healthcare Group, Inc. (a)
11,300
86
WebMD Corp. (a)
3,213,300
24,260
222,836
Pharmaceuticals - 1.0%
Elan Corp. PLC sponsored ADR (a)
470,400
12,668
Endo Pharmaceuticals Holdings, Inc. (a)
2,011,800
42,268
Sepracor, Inc. (a)
19,600
1,121
Teva Pharmaceutical Industries Ltd. sponsored ADR
722,500
20,757
76,814
TOTAL HEALTH CARE
824,576
INDUSTRIALS - 3.7%
Air Freight & Logistics - 0.2%
Forward Air Corp. (a)
275,000
11,719
Airlines - 0.7%
JetBlue Airways Corp. (a)
1,693,156
33,508
Ryanair Holdings PLC sponsored ADR (a)
448,100
20,985
54,493
Building Products - 0.1%
Trex Co., Inc. (a)
230,100
11,286
Commercial Services & Supplies - 1.7%
Apollo Group, Inc. Class A (a)
240,900
18,836
Cintas Corp.
1,127,200
49,033
Herman Miller, Inc.
1,371,000
36,633
Monster Worldwide, Inc. (a)
193,000
6,039
Strayer Education, Inc.
177,400
19,044
129,585
Machinery - 0.3%
PACCAR, Inc.
328,150
23,187
Road & Rail - 0.5%
Landstar System, Inc. (a)
1,037,392
36,080
Common Stocks - continued
Shares
Value (Note 1)
(000s)
INDUSTRIALS - continued
Trading Companies & Distributors - 0.2%
Rush Enterprises, Inc. Class A (a)(e)
1,104,395
$ 16,809
TOTAL INDUSTRIALS
283,159
INFORMATION TECHNOLOGY - 64.5%
Communications Equipment - 11.7%
Alcatel SA sponsored ADR (a)(d)
2,145,100
30,718
Alvarion Ltd. (a)
1,376,500
14,233
Andrew Corp. (a)
1,089,800
14,233
Arris Group, Inc. (a)
758,596
4,696
Avaya, Inc. (a)
500,000
7,175
Carrier Access Corp. (a)(e)
1,968,400
14,527
CIENA Corp. (a)
6,582,600
16,786
Cisco Systems, Inc. (a)
20,015,400
361,078
Comverse Technology, Inc. (a)
1,909,100
42,668
Enterasys Networks, Inc. (a)
9,256,700
13,052
Ixia (a)
360,600
5,597
Juniper Networks, Inc. (a)
3,195,400
80,300
Motorola, Inc.
4,659,230
73,336
Nokia Corp. sponsored ADR
1,068,300
16,324
Polycom, Inc. (a)
748,626
12,936
Powerwave Technologies, Inc. (a)
883,700
6,955
QUALCOMM, Inc.
3,538,500
131,774
Research In Motion Ltd. (a)
578,900
41,198
Sonus Networks, Inc. (a)
1,946,600
11,933
899,519
Computers & Peripherals - 10.9%
Apple Computer, Inc. (a)
1,127,100
86,674
Avid Technology, Inc. (a)
152,100
9,590
Dell, Inc. (a)
10,408,700
434,667
Diebold, Inc.
848,600
45,689
EMC Corp. (a)
3,165,200
41,464
Hutchinson Technology, Inc. (a)
646,787
22,832
Maxtor Corp. (a)
2,708,000
12,809
Network Appliance, Inc. (a)
244,900
7,798
Seagate Technology
4,774,000
80,776
Sun Microsystems, Inc. (a)
11,574,345
50,464
Western Digital Corp. (a)
4,089,000
44,039
836,802
Common Stocks - continued
Shares
Value (Note 1)
(000s)
INFORMATION TECHNOLOGY - continued
Electronic Equipment & Instruments - 1.6%
CDW Corp.
472,200
$ 27,624
DDi Corp. (a)
519,189
1,251
Flextronics International Ltd. (a)
2,097,900
29,685
Hon Hai Precision Industries Co. Ltd.
4,613,794
20,265
Molex, Inc.
503,400
14,458
Nano-Proprietary, Inc. (a)
2,213,900
4,649
Solectron Corp. (a)
5,257,900
26,132
Universal Display Corp. (a)
69,900
527
124,591
Internet Software & Services - 3.3%
Akamai Technologies, Inc. (a)
1,272,200
16,666
Google, Inc. Class A (sub. vtg.)
203,400
39,791
Marchex, Inc. Class B
2,300
41
Vignette Corp. (a)
3,278,200
4,294
Yahoo!, Inc. (a)
5,374,116
189,223
250,015
IT Services - 2.0%
Cognizant Technology Solutions Corp. Class A (a)
2,861,600
108,455
Infosys Technologies Ltd. sponsored ADR
246,300
16,266
Paychex, Inc.
497,400
15,166
Syntel, Inc.
799,300
13,436
153,323
Semiconductors & Semiconductor Equipment - 17.0%
Agere Systems, Inc.:
Class A (a)
16,484,211
23,737
Class B (a)
16,413,400
23,635
Altera Corp. (a)
585,400
11,240
Analog Devices, Inc.
1,654,300
59,373
Applied Materials, Inc. (a)
5,917,000
94,080
ATI Technologies, Inc. (a)
826,700
14,342
ATMI, Inc. (a)
1,341,111
30,483
FEI Co. (a)
964,500
19,444
Freescale Semiconductor, Inc.:
Class A
1,934,100
33,073
Class B (a)
1,215,334
21,232
Integrated Circuit Systems, Inc. (a)
1,287,600
24,464
Intel Corp.
18,833,400
422,810
Intersil Corp. Class A
679,900
10,083
KLA-Tencor Corp. (a)
371,300
17,173
Common Stocks - continued
Shares
Value (Note 1)
(000s)
INFORMATION TECHNOLOGY - continued
Semiconductors & Semiconductor Equipment - continued
Linear Technology Corp.
1,183,500
$ 44,665
Marvell Technology Group Ltd. (a)
1,657,600
55,447
Maxim Integrated Products, Inc.
1,205,400
47,023
Microchip Technology, Inc.
1,186,300
30,903
Mindspeed Technologies, Inc. (a)
2,969,033
6,903
National Semiconductor Corp.
2,783,800
47,130
NVIDIA Corp. (a)
1,867,600
42,805
Omnivision Technologies, Inc. (a)(d)
490,000
7,953
PMC-Sierra, Inc. (a)
1,171,100
12,039
Samsung Electronics Co. Ltd.
131,350
63,340
Silicon Laboratories, Inc. (a)
1,259,200
42,939
STATS ChipPAC Ltd. ADR (a)(d)
2,802,270
16,085
Texas Instruments, Inc.
2,151,100
49,927
Vitesse Semiconductor Corp. (a)
3,950,000
11,455
Xilinx, Inc.
610,200
17,812
1,301,595
Software - 18.0%
Activision, Inc. (a)
100,000
2,260
BEA Systems, Inc. (a)
4,253,943
36,244
FileNET Corp. (a)
1,204,882
26,929
Intuit, Inc. (a)
355,900
13,880
Jack Henry & Associates, Inc.
384,109
7,986
Kronos, Inc. (a)
253,500
13,631
Lawson Software, Inc. (a)
2,646,700
17,336
Microsoft Corp.
33,281,800
874,640
Oracle Corp. (a)
10,796,200
148,664
Quest Software, Inc. (a)
1,691,100
24,014
Red Hat, Inc. (a)
3,103,900
33,677
Siebel Systems, Inc. (a)
5,095,494
44,382
Symantec Corp. (a)
3,643,400
85,073
Take-Two Interactive Software, Inc. (a)
595,300
20,984
TIBCO Software, Inc. (a)
1,808,300
19,873
WatchGuard Technologies, Inc. (a)
1,237,200
5,023
1,374,596
TOTAL INFORMATION TECHNOLOGY
4,940,441
Common Stocks - continued
Shares
Value (Note 1)
(000s)
MATERIALS - 0.0%
Containers & Packaging - 0.0%
Anchor Glass Container Corp. (a)
161,305
$ 960
TELECOMMUNICATION SERVICES - 3.6%
Diversified Telecommunication Services - 0.1%
AboveNet, Inc. (a)
99,200
2,976
Wireless Telecommunication Services - 3.5%
American Tower Corp. Class A (a)
1,701,900
30,838
Nextel Communications, Inc. Class A (a)
5,953,900
170,817
Nextel Partners, Inc. Class A (a)
487,200
9,690
NII Holdings, Inc. (a)
1,072,600
57,706
269,051
TOTAL TELECOMMUNICATION SERVICES
272,027
TOTAL COMMON STOCKS
(Cost $6,992,618)
7,482,168
Money Market Funds - 3.2%
Fidelity Cash Central Fund, 2.31% (b)
166,719,431
166,719
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c)
78,532,300
78,532
TOTAL MONEY MARKET FUNDS
(Cost $245,251)
245,251
TOTAL INVESTMENT PORTFOLIO - 100.9%
(Cost $7,237,869)
7,727,419
NET OTHER ASSETS - (0.9)%
(65,733)
NET ASSETS - 100%
$ 7,661,686
Legend
(a) Non-income producing
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available
upon request.
(c) Includes investment made with cash collateral received from securities on loan.
(d) Security or a portion of the security is on loan at period end.
(e) Affiliated company
An affiliated company is a company in which the fund has ownership of at least 5% of the
voting securities. Companies which are affiliates of the fund at period-end are noted in the
fund's Schedule of Investments. Transactions during the period with companies which are or
were affiliates are as follows:
Affiliates Value,
beginning of
period
Purchases
Sales
Proceeds
Dividend
Income
Value, 24/7 Real Media, Inc.
$ 6,713
$ 7,257
$ 10,999
$ -
$ -
Carrier Access Corp.
-
19,282
-
-
14,527
eDiets.com, Inc.
3,208
-
2,218
-
-
Homestore, Inc.
27,581
16,819
35,800
-
-
Redback Networks, Inc.
15,289
-
13,429
-
-
Rush Enterprises, Inc.
Class A
-
18,460
4,508
-
16,809
Time Warner Telecom,
Inc. Class A
32,301
166
28,716
-
-
Top Tankers, Inc.
1,987
22,221
-
345
29,780
WatchGuard
Technologies, Inc.
6,848
4,362
4,158
-
-
Wet Seal, Inc. Class A
7,768
-
2,746
-
-
Total
$ 101,695
$ 88,567
$ 102,574
$ 345
$ 61,116
Income Tax Information
At July 31, 2004, the fund had a capital loss carryforward of approximately $5,419,239,000
of which $4,169,344,000 and $1,249,895,000 will expire on July 31, 2010 and 2011,
respectively.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount)
January 31, 2005 (Unaudited)
Assets
Investment in securities, at value (including securities
loaned of $77,173) (cost $7,237,869) - See
accompanying schedule
$ 7,727,419
Foreign currency held at value (cost $157)
166
Receivable for investments sold
99,411
Receivable for fund shares sold
8,031
Dividends receivable
2,484
Interest receivable
277
Prepaid expenses
26
Other affiliated receivables
30
Other receivables
599
Total assets
7,838,443
Liabilities
Payable for investments purchased
$ 80,181
Payable for fund shares redeemed
12,405
Accrued management fee
3,761
Other affiliated payables
1,788
Other payables and accrued expenses
90
Collateral on securities loaned, at value
78,532
Total liabilities
176,757
Net Assets
$ 7,661,686
Net Assets consist of:
Paid in capital
$ 12,082,479
Accumulated net investment loss
(3,909)
Accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions
(4,906,476)
Net unrealized appreciation (depreciation) on
investments and assets and liabilities in foreign
currencies
489,592
Net Assets, for 232,252 shares outstanding
$ 7,661,686
Net Asset Value, offering price and redemption price per
share ($7,661,686 ÷ 232,252 shares)
$ 32.99
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands
Six months ended January 31, 2005
(Unaudited)
Investment Income
Dividends (including $345 received from affiliated
issuers)
$ 16,021
Special Dividends
106,284
Interest
647
Security lending
330
Total income
123,282
Expenses
Management fee $ 23,517
Performance adjustment
(1,057)
Transfer agent fees
9,038
Accounting and security lending fees
580
Non-interested trustees' compensation
22
Appreciation in deferred trustee compensation account
3
Custodian fees and expenses
183
Registration fees
63
Audit
42
Legal
16
Interest
2
Miscellaneous
18
Total expenses before reductions
32,427
Expense reductions
(866)
31,561
Net investment income (loss)
91,721
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of
$(79,763) from affiliated issuers)
531,675
Foreign currency transactions
27
Total net realized gain (loss)
531,702
Change in net unrealized appreciation (depreciation) on:
Investment securities
77,193
Assets and liabilities in foreign currencies
56
Total change in net unrealized appreciation
(depreciation)
77,249
Net gain (loss)
608,951
Net increase (decrease) in net assets resulting from
operations
$ 700,672
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands
Six months ended
January 31, 2005
(Unaudited)
Year ended Increase (Decrease) in Net Assets
Operations
Net investment income (loss)
$ 91,721
$ (41,667)
Net realized gain (loss)
531,702
1,268,916
Change in net unrealized appreciation (depreciation)
77,249
(703,476)
Net increase (decrease) in net assets resulting 700,672
523,773
Distributions to shareholders from net investment income
(95,497)
-
Share transactions 788,333
2,620,488
Reinvestment of distributions
94,057
-
Cost of shares redeemed
(1,147,881)
(2,863,293)
Net increase (decrease) in net assets resulting from
share transactions
(265,491)
(242,805)
Total increase (decrease) in net assets
339,684
280,968
Net Assets
Beginning of period
7,322,002
7,041,034
End of period (including accumulated net investment
loss of $3,909 and accumulated net investment loss
of $133, respectively)
$ 7,661,686
$ 7,322,002
Other Information
Shares
Sold
24,589
82,028
Issued in reinvestment of distributions
2,762
-
Redeemed
(35,733)
(89,916)
Net increase (decrease)
(8,382)
(7,888)
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended
January 31, 2005
Years ended July 31,
(Unaudited)
2004
2003
2002
2001
2000
Selected Per-Share Data
Net asset value,
beginning of period
$ 30.43
$ 28.33
$ 23.46
$ 32.96
$ 69.82
$ 51.53
Income from Investment
Operations
Net investment
income (loss) D
.39 E
(.17)
(.17)
(.24)
(.18)
(.27)
Net realized and
unrealized gain
(loss)
2.58
2.27
5.04
(9.26)
(24.02)
24.07
Total from investment
operations
2.97
2.10
4.87
(9.50)
(24.20)
23.80
Distributions from net
investment income
(.41)
-
-
-
-
-
Distributions from net
realized gain
-
-
-
-
(12.66)
(5.51)
Total distributions
(.41)
-
-
-
(12.66)
(5.51)
Net asset value, end of
period
$ 32.99
$ 30.43
$ 28.33
$ 23.46
$ 32.96
$ 69.82
Total Return B, C
9.72%
7.41%
20.76%
(28.82)%
(42.79)%
50.05%
Ratios to Average Net Assets F
Expenses before
expense reductions
.86% A
.91%
1.18%
1.14%
.97%
.76%
Expenses net of
voluntary waivers,
if any
.86% A
.91%
1.18%
1.14%
.97%
.76%
Expenses net of all
reductions
.84% A
.89%
1.12%
1.09%
.94%
.75%
Net investment
income (loss)
2.43% A, E
(.53)%
(.71)%
(.81)%
(.40)%
(.43)%
Supplemental Data
Net assets, end of
period (in millions)
$ 7,662
$ 7,322
$ 7,041
$ 5,911
$ 8,802
$ 14,548
Portfolio turnover rate
94% A
61%
116%
120%
219%
196%
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.45 per share. Excluding the special dividend, the ratio of net investment
income to average net assets would have been (.39)%.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or
reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during
periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment
adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions
represent the net expenses paid by the fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity OTC Portfolio (the fund) is a fund of Fidelity Securities Fund (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
financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America, which require management to make
certain estimates and assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the
close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time.
Equity securities, including restricted securities, for which market quotations are
available are valued at the last sale price or official closing price (closing bid price or last
evaluated quote if no sale has occurred) on the primary market or exchange on which
they trade. If prices are not readily available or do not accurately reflect fair value for a
security, or if a security's value has been materially affected by events occurring after the
close of the exchange or market on which the security is principally traded, that security
may be valued by another method that the Board of Trustees believes accurately reflects
fair value. A security's valuation may differ depending on the method used for
determining value. Price movements in futures contracts and ADRs, market and trading
trends, the bid/ask quotes of brokers and off-exchange institutional trading may be
reviewed in the course of making a good faith determination of a security's fair value.
Short-term securities with remaining maturities of sixty days or less for which quotations
are not readily available are valued on the basis of amortized cost. Investments in
open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions
in foreign-denominated securities. 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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the basis of identified
cost and may include proceeds received from litigation. Dividend income is recorded on
the ex-dividend date, except for certain dividends from foreign securities where the
ex-dividend date may have passed, which are recorded as soon as the fund is informed of
the ex-dividend date. Non-cash dividends included in dividend income, if any, are
recorded at the fair market value of the securities received. Distributions received on
securities that represent a return of capital or capital gain are recorded as a reduction of
cost of investments and/or as a realized gain. The fund estimates the components of
distributions received that may be considered return of capital distributions or capital
gain distributions. 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.
Interest income includes coupon interest and amortization of premium and accretion of
discount on debt securities. Investment income is recorded net of foreign taxes withheld
where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses
which cannot be directly attributed are apportioned among the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan),
non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt
of an additional portion of, their annual compensation. Deferred amounts are treated as
though equivalent dollar amounts had been invested in shares of the fund or are invested
in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts
remain in the fund until distributed in accordance with the Plan.
Income Tax Information and Distributions to Shareholders. Each year, the fund
intends to qualify as a regulated investment company by distributing all of its taxable
income and realized gains under Subchapter M of the Internal Revenue Code. As a result,
no provision for income taxes is required in the accompanying financial statements.
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 recorded on the ex-dividend date. Income and capital gain
distributions are determined in accordance with income tax regulations, which may
differ from generally accepted accounting principles.
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.
Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, net operating
losses, capital loss carryforwards and losses deferred due to wash sales and excise tax
regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of
period end were as follows:
Unrealized appreciation
$ 1,011,942
Unrealized depreciation
(543,068)
Net unrealized appreciation (depreciation)
$ 468,874
Cost for federal income tax purposes
$ 7,258,545
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has
received an Exemptive Order from the Securities and Exchange Commission (the SEC)
which permits the fund and other affiliated entities of FMR to transfer uninvested cash
balances into joint trading accounts. These accounts are then invested in repurchase
agreements that are collateralized by U.S. Treasury or Government obligations. The fund
may also invest directly with institutions, in repurchase agreements that are
collateralized by commercial paper obligations and corporate obligations. Collateral is
held in segregated accounts with custodian banks and may be obtained in the event of a
default of the counterparty. Collateral is marked-to-market daily and maintained at a
value at least equal to the principal amount of the repurchase agreement (including
accrued interest).
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government
securities, aggregated $3,519,068 and $3,871,144, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .35% of the fund's average net assets and a group fee rate that averaged .27% during the
period. The group fee rate is based upon the average net assets of all the mutual funds
advised by FMR. The group fee rate decreases as assets under management increase and
increases as assets under management decrease. In addition, the management fee is
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
subject to a performance adjustment (up to a maximum of ±.20% of the fund's average
net assets over a 36 month performance period). The upward or downward adjustment to
the management fee is based on the fund's relative investment performance as compared
to an appropriate benchmark index. For the period, the total annualized management
fee rate, including the performance adjustment, was .60% of the fund's average net
assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives
account fees and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of shareholder reports, except
proxy statements. For the period, the transfer agent fees were equivalent to an
annualized rate of .24% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting
records. The accounting fee is based on the level of average net assets for the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity
Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds
are open-end investment companies available only to investment companies and other
accounts managed by FMR and its affiliates. The Central Funds seek preservation of
capital and current income and do not pay a management fee. Income distributions
earned by the fund are recorded as income in the accompanying financial statements
and totaled $635 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with
brokerage firms which are affiliates of the investment adviser. The commissions paid to
these affiliated firms were $595 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the
fund, along with other registered investment companies having management contracts
with FMR, may participate in an interfund lending program. This program provides an
alternative credit facility allowing the funds to borrow from, or lend money to, other
participating funds. At period end, there were no interfund loans outstanding. The fund's
activity in this program during the period was as follows:
Borrower or Lender
Average Daily Loan
Balance
Weighted Average
Interest Rate
Interest Expense
Borrower
$ 27,227
2.14%
$ 2
Semiannual Report
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period,
there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income.
The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit
and/or cash) against the loaned securities and maintains collateral in an amount not less
than 100% of the market value of the loaned securities during the period of the loan. The
market value of the loaned securities is determined at the close of business of the fund
and any additional required collateral is delivered to the fund on the next business day. If
the borrower defaults on its obligation to return the securities loaned because of
insolvency or other reasons, a fund could experience delays and costs in recovering the
securities loaned or in gaining access to the collateral. Cash collateral is invested in cash
equivalents. The value of loaned securities and cash collateral at period end are
disclosed on the fund's Statement of Assets and Liabilities.
7. Bank Borrowings.
The fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. The fund has
established borrowing arrangements with certain banks. The
interest rate on the borrowings is the bank's base rate, as revised
from time to time. The average daily loan balance during the period
amounted to $5,484. The weighted average interest rate was 2.06%.
At period end, there were no bank borrowings outstanding.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided
services to the fund in addition to trade execution. These services included payments of
certain expenses on behalf of the fund totaling $797 for the period. In addition, through
arrangements with the fund's custodian and transfer agent, credits realized as a result of
uninvested cash balances were used to reduce the fund's expenses. During the period,
these credits reduced the fund's custody and transfer agent expenses by $1 and $68,
respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Other.
The fund's organizational documents provide former and current trustees and officers
with a limited indemnification against liabilities arising in connection with the
performance of their duties to the fund. In the normal course of business, the fund may
also enter into contracts that provide general indemnifications. The fund's maximum
exposure under these arrangements is unknown as this would be dependent on future
claims that may be made against the fund. The risk of material loss from such claims is
considered remote.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via
your telephone or PC. You can access your account information, conduct trades and
research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate the service, and on
your first call, the system will help you create a personal identification number (PIN)
for security.
(phone_graphic)Fidelity Automated Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual 5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including
daily financial news, fund performance, interactive planning tools and news about
Fidelity products and services.
(computer_graphic)Fidelity's Web Site * When you call the quotes line, please remember that a fund's yield and return will vary and,
except for money market funds, share price will also vary. This means that you may have a gain
or loss when you sell your shares. There is no assurance that money market funds will be able to
maintain a stable $1 share price; an investment in a money market fund is not insured or
guaranteed by the U.S. government. Total returns are historical and include changes in share price,
reinvestment of dividends and capital gains, and the effects of any sales charges.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Exact name of registrant as specified in charter)
(Address of principal executive offices) (Zip code)
(Name and address of agent for service)
OTC
Contents
Chairman's Message
Edward C. Johnson 3d
Shareholder Expense Example
Account Value
August 1, 2004
Account Value
January 31, 2005
During Period*
August 1, 2004
to January 31, 2005
Investment Changes
net assets
6 months ago
net assets
6 months ago
Investments and
Net Other Assets 2.3%
Investments and
Net Other Assets 1.3%
investments
investments
Investments January 31, 2005 (Unaudited)
(Amounts in thousands)
end of
period
Financial Statements
Basic fee
July 31,
2004
from operations
Proceeds from sales of shares
Notes to Financial Statements
Managing Your Investments
Service Telephone (FAST®)
1-800-544-5555
fund activity.
www.fidelity.com
Semiannual Report
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
Nevada
2225 Village Walk Drive
Henderson, NV
Semiannual Report
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investments
Advisors
Fidelity International Investments
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
OTC-USAN-0305
1.789288.101
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
5 |
A summary of major shifts in the fund's investments over the last six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
15 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
19 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,187.40 |
$ 4.80 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,020.82 |
$ 4.43 |
* Expenses are equal to the Fund's annualized expense ratio of .87%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Teekay Shipping Corp. |
6.2 |
6.9 |
AES Corp. |
6.0 |
6.4 |
General Maritime Corp. |
5.6 |
5.6 |
Forest Oil Corp. |
4.7 |
4.1 |
Nextel Communications, Inc. Class A |
3.4 |
3.5 |
Qwest Communications International, Inc. |
3.0 |
3.6 |
Range Resources Corp. |
2.8 |
3.5 |
Tyco International Ltd. |
2.7 |
4.2 |
CMS Energy Corp. |
2.5 |
3.0 |
DaVita, Inc. |
2.1 |
2.2 |
|
39.0 |
|
Top Five Market Sectors as of January 31, 2005 |
||
|
% of fund's net assets |
% of fund's net assets |
Energy |
34.1 |
31.6 |
Industrials |
11.1 |
10.1 |
Materials |
10.8 |
8.0 |
Telecommunication Services |
9.3 |
12.1 |
Utilities |
8.7 |
9.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005 * |
As of July 31, 2004 ** |
||||||
![]() |
Stocks 93.6% |
|
![]() |
Stocks 96.4% |
|
||
![]() |
Convertible |
|
![]() |
Bonds 0.3% |
|
||
![]() |
Other Investments 0.9% |
|
![]() |
Convertible |
|
||
![]() |
Short-Term |
|
![]() |
Other Investments 1.2% |
|
||
![]() |
|
|
![]() |
Short-Term |
|
||
* Foreign |
20.8% |
|
** Foreign |
19.7% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 93.3% |
||||
Shares |
Value (Note 1) (000s) |
|||
CONSUMER DISCRETIONARY - 8.1% |
||||
Auto Components - 0.8% |
||||
Dana Corp. |
204,100 |
$ 3,239 |
||
Tenneco Automotive, Inc. (a) |
135,500 |
2,187 |
||
TRW Automotive Holdings Corp. |
618,100 |
12,300 |
||
|
17,726 |
|||
Hotels, Restaurants & Leisure - 1.2% |
||||
Centerplate, Inc. unit |
363,005 |
4,937 |
||
Friendly Ice Cream Corp. (a)(e) |
423,400 |
3,696 |
||
Six Flags, Inc. (a) |
1,951,100 |
8,351 |
||
Sunterra Corp. (a)(d) |
342,900 |
4,735 |
||
Wyndham International, Inc. Class A (a) |
4,877,800 |
4,634 |
||
|
26,353 |
|||
Household Durables - 0.0% |
||||
Juno Lighting, Inc. |
3,600 |
144 |
||
Leisure Equipment & Products - 0.4% |
||||
Alliance Gaming Corp. (a)(d) |
896,000 |
8,933 |
||
Media - 4.7% |
||||
Cablevision Systems Corp. - NY Group Class A (a) |
242,900 |
6,653 |
||
Charter Communications, Inc. Class A (a)(d) |
6,307,871 |
10,156 |
||
Gray Television, Inc. |
622,300 |
8,998 |
||
Liberty Media International, Inc. Class A (a) |
11,987 |
543 |
||
News Corp. Class A |
180,888 |
3,075 |
||
NTL, Inc. (a) |
625,907 |
42,580 |
||
Spanish Broadcasting System, Inc. Class A (a) |
209,400 |
2,152 |
||
The DIRECTV Group, Inc. (a) |
619,645 |
9,326 |
||
The Reader's Digest Association, Inc. (non-vtg.) |
752,900 |
12,137 |
||
Time Warner, Inc. (a) |
277,400 |
4,993 |
||
UnitedGlobalCom, Inc. Class A (a) |
582,912 |
5,695 |
||
|
106,308 |
|||
Specialty Retail - 1.0% |
||||
AutoNation, Inc. (a) |
247,600 |
4,714 |
||
Gap, Inc. |
758,200 |
16,688 |
||
|
21,402 |
|||
TOTAL CONSUMER DISCRETIONARY |
180,866 |
|||
CONSUMER STAPLES - 2.7% |
||||
Food & Staples Retailing - 2.0% |
||||
Koninklijke Ahold NV sponsored ADR (a)(d) |
2,756,800 |
22,799 |
||
Kroger Co. (a) |
371,300 |
6,349 |
||
Common Stocks - continued |
||||
Shares |
Value (Note 1) (000s) |
|||
CONSUMER STAPLES - continued |
||||
Food & Staples Retailing - continued |
||||
Pathmark Stores, Inc. (a) |
1,297,047 |
$ 6,148 |
||
Safeway, Inc. (a) |
445,700 |
8,401 |
||
|
43,697 |
|||
Food Products - 0.4% |
||||
Kellogg Co. |
184,900 |
8,254 |
||
Personal Products - 0.3% |
||||
Revlon, Inc. Class A (a) |
3,225,199 |
7,740 |
||
TOTAL CONSUMER STAPLES |
59,691 |
|||
ENERGY - 34.1% |
||||
Energy Equipment & Services - 4.8% |
||||
Grant Prideco, Inc. (a) |
606,300 |
11,883 |
||
Grey Wolf, Inc. (a) |
6,220,200 |
32,967 |
||
Hanover Compressor Co. (a) |
451,500 |
6,402 |
||
Nabors Industries Ltd. (a) |
163,100 |
8,220 |
||
Petroleum Geo-Services ASA ADR (a)(d) |
296,153 |
20,568 |
||
Pride International, Inc. (a) |
484,300 |
11,328 |
||
Rowan Companies, Inc. |
321,100 |
9,042 |
||
Universal Compression Holdings, Inc. (a) |
184,700 |
7,189 |
||
|
107,599 |
|||
Oil & Gas - 29.3% |
||||
Burlington Resources, Inc. |
709,500 |
31,012 |
||
Chesapeake Energy Corp. |
2,434,100 |
42,767 |
||
Comstock Resources, Inc. (a) |
311,800 |
7,315 |
||
Forest Oil Corp. (a)(e) |
3,133,300 |
105,561 |
||
Frontier Oil Corp. |
578,600 |
16,183 |
||
Frontline Ltd. (d) |
185,300 |
9,230 |
||
Frontline Ltd. (NY Shares) |
603,900 |
30,648 |
||
General Maritime Corp. (a)(e) |
2,738,500 |
125,697 |
||
Houston Exploration Co. (a) |
89,200 |
4,836 |
||
OMI Corp. (d) |
2,725,200 |
47,691 |
||
Overseas Shipholding Group, Inc. |
123,200 |
6,876 |
||
Range Resources Corp. |
2,814,300 |
62,449 |
||
Ship Finance International Ltd. (d) |
156,252 |
3,556 |
||
Common Stocks - continued |
||||
Shares |
Value (Note 1) (000s) |
|||
ENERGY - continued |
||||
Oil & Gas - continued |
||||
Teekay Shipping Corp. |
3,096,000 |
$ 137,375 |
||
Valero Energy Corp. |
455,200 |
23,684 |
||
|
654,880 |
|||
TOTAL ENERGY |
762,479 |
|||
FINANCIALS - 2.6% |
||||
Consumer Finance - 0.5% |
||||
Metris Companies, Inc. |
937,300 |
11,154 |
||
Insurance - 1.7% |
||||
American Financial Group, Inc., Ohio |
1,002,800 |
30,876 |
||
UnumProvident Corp. |
423,700 |
7,275 |
||
|
38,151 |
|||
Thrifts & Mortgage Finance - 0.4% |
||||
Capital Crossing Bank (a) |
258,800 |
8,282 |
||
TOTAL FINANCIALS |
57,587 |
|||
HEALTH CARE - 3.6% |
||||
Health Care Equipment & Supplies - 0.3% |
||||
Baxter International, Inc. |
184,700 |
6,235 |
||
Health Care Providers & Services - 2.1% |
||||
Carriage Services, Inc. (a) |
14,700 |
73 |
||
DaVita, Inc. (a) |
1,151,600 |
48,321 |
||
|
48,394 |
|||
Pharmaceuticals - 1.2% |
||||
Elan Corp. PLC sponsored ADR (a) |
987,700 |
26,599 |
||
TOTAL HEALTH CARE |
81,228 |
|||
INDUSTRIALS - 11.1% |
||||
Aerospace & Defense - 0.4% |
||||
BE Aerospace, Inc. (a) |
365,424 |
3,943 |
||
Goodrich Corp. |
133,700 |
4,586 |
||
|
8,529 |
|||
Air Freight & Logistics - 0.2% |
||||
Park-Ohio Holdings Corp. (a) |
162,411 |
4,007 |
||
Airlines - 2.2% |
||||
America West Holding Corp. Class B (a)(d) |
800,600 |
4,011 |
||
Common Stocks - continued |
||||
Shares |
Value (Note 1) (000s) |
|||
INDUSTRIALS - continued |
||||
Airlines - continued |
||||
AMR Corp. (a)(d) |
2,514,530 |
$ 21,625 |
||
Delta Air Lines, Inc. (a)(d) |
3,927,450 |
21,169 |
||
Northwest Airlines Corp. (a)(d) |
455,100 |
3,363 |
||
|
50,168 |
|||
Building Products - 2.6% |
||||
American Standard Companies, Inc. (a) |
713,200 |
28,557 |
||
Lennox International, Inc. |
230,700 |
4,605 |
||
Royal Group Technologies Ltd. (sub. vtg.) (a) |
564,700 |
5,073 |
||
York International Corp. |
536,700 |
19,493 |
||
|
57,728 |
|||
Commercial Services & Supplies - 1.3% |
||||
Allied Waste Industries, Inc. (a) |
889,800 |
7,394 |
||
Clean Harbors, Inc. (a)(d) |
140,200 |
2,641 |
||
Corrections Corp. of America (a) |
479,200 |
19,690 |
||
|
29,725 |
|||
Construction & Engineering - 0.1% |
||||
Integrated Electrical Services, Inc. (a) |
326,200 |
1,298 |
||
Industrial Conglomerates - 2.7% |
||||
Tyco International Ltd. |
1,646,200 |
59,494 |
||
Machinery - 1.0% |
||||
Navistar International Corp. (a) |
234,000 |
9,107 |
||
SPX Corp. |
180,200 |
7,550 |
||
Terex Corp. (a) |
82,700 |
3,560 |
||
Thermadyne Holdings Corp. (a) |
64,900 |
833 |
||
Timken Co. |
92,800 |
2,391 |
||
|
23,441 |
|||
Marine - 0.1% |
||||
Golden Ocean Group Ltd. (a)(d) |
2,067,600 |
1,218 |
||
Road & Rail - 0.5% |
||||
Central Freight Lines, Inc. (a)(e) |
973,340 |
6,103 |
||
Kansas City Southern (a) |
326,700 |
5,704 |
||
|
11,807 |
|||
TOTAL INDUSTRIALS |
247,415 |
|||
INFORMATION TECHNOLOGY - 3.2% |
||||
Communications Equipment - 0.2% |
||||
Motorola, Inc. |
244,900 |
3,855 |
||
Common Stocks - continued |
||||
Shares |
Value (Note 1) (000s) |
|||
INFORMATION TECHNOLOGY - continued |
||||
Electronic Equipment & Instruments - 0.9% |
||||
DDi Corp. (a)(d) |
2,071,300 |
$ 4,992 |
||
Merix Corp. (a) |
385,000 |
3,550 |
||
Solectron Corp. (a) |
475,100 |
2,361 |
||
Viasystems Group, Inc. (a) |
95,400 |
1,145 |
||
Viasystems Group, Inc. (a)(h) |
625,780 |
7,509 |
||
|
19,557 |
|||
Semiconductors & Semiconductor Equipment - 2.1% |
||||
Atmel Corp. (a) |
1,776,500 |
5,436 |
||
Conexant Systems, Inc. (a) |
927,700 |
1,521 |
||
Fairchild Semiconductor International, Inc. (a) |
200,000 |
2,854 |
||
Freescale Semiconductor, Inc.: |
|
|
||
Class A |
287,500 |
4,916 |
||
Class B (a) |
27,040 |
472 |
||
ON Semiconductor Corp. (a) |
8,789,700 |
32,170 |
||
|
47,369 |
|||
TOTAL INFORMATION TECHNOLOGY |
70,781 |
|||
MATERIALS - 10.8% |
||||
Chemicals - 4.1% |
||||
Celanese Corp. Class A |
106,300 |
1,715 |
||
Crompton Corp. |
2,974,200 |
34,649 |
||
Great Lakes Chemical Corp. |
813,000 |
21,504 |
||
NOVA Chemicals Corp. |
454,800 |
20,515 |
||
Rhodia SA ADR (d) |
5,081,400 |
12,958 |
||
Solutia, Inc. (a) |
1,779,500 |
1,602 |
||
|
92,943 |
|||
Construction Materials - 0.3% |
||||
Texas Industries, Inc. |
103,800 |
6,595 |
||
Containers & Packaging - 3.7% |
||||
Anchor Glass Container Corp. (a) |
150,400 |
895 |
||
Owens-Illinois, Inc. (a) |
1,432,890 |
32,555 |
||
Pactiv Corp. (a) |
1,408,200 |
31,276 |
||
Sealed Air Corp. (a) |
156,900 |
8,049 |
||
Smurfit-Stone Container Corp. (a) |
637,000 |
9,580 |
||
|
82,355 |
|||
Common Stocks - continued |
||||
Shares |
Value (Note 1) (000s) |
|||
MATERIALS - continued |
||||
Metals & Mining - 0.5% |
||||
Freeport-McMoRan Copper & Gold, Inc. Class B |
282,500 |
$ 10,399 |
||
Haynes International, Inc. (a)(f) |
16,834 |
305 |
||
|
10,704 |
|||
Paper & Forest Products - 2.2% |
||||
Georgia-Pacific Corp. |
301,300 |
9,672 |
||
International Paper Co. |
510,400 |
19,982 |
||
Weyerhaeuser Co. |
318,900 |
19,899 |
||
|
49,553 |
|||
TOTAL MATERIALS |
242,150 |
|||
TELECOMMUNICATION SERVICES - 8.4% |
||||
Diversified Telecommunication Services - 4.0% |
||||
Covad Communications Group, Inc. (a) |
931,615 |
1,574 |
||
General Communications, Inc. Class A (a) |
907,800 |
9,060 |
||
Qwest Communications International, Inc. (a) |
15,875,700 |
66,678 |
||
Telewest Global, Inc. (a) |
590,291 |
9,946 |
||
XO Communications, Inc. (a) |
926,500 |
2,548 |
||
|
89,806 |
|||
Wireless Telecommunication Services - 4.4% |
||||
American Tower Corp. Class A (a) |
300,300 |
5,441 |
||
Crown Castle International Corp. (a) |
536,100 |
8,792 |
||
Nextel Communications, Inc. Class A (a) |
2,660,585 |
76,332 |
||
NII Holdings, Inc. (a) |
160,800 |
8,651 |
||
|
99,216 |
|||
TOTAL TELECOMMUNICATION SERVICES |
189,022 |
|||
UTILITIES - 8.7% |
||||
Multi-Utilities & Unregulated Power - 8.7% |
||||
AES Corp. (a) |
9,559,458 |
134,310 |
||
Aquila, Inc. (a) |
911,800 |
3,374 |
||
CMS Energy Corp. (a) |
5,352,600 |
56,363 |
||
|
194,047 |
|||
TOTAL COMMON STOCKS (Cost $1,563,428) |
2,085,266 |
|||
Preferred Stocks - 0.3% |
||||
Shares |
Value (Note 1) (000s) |
|||
Convertible Preferred Stocks - 0.0% |
||||
CONSUMER DISCRETIONARY - 0.0% |
||||
Media - 0.0% |
||||
Emmis Communications Corp. Series A, 6.25% |
32,200 |
$ 1,401 |
||
Nonconvertible Preferred Stocks - 0.3% |
||||
CONSUMER STAPLES - 0.3% |
||||
Food Products - 0.3% |
||||
Doane Pet Care Co. 14.25% pay-in-kind (a) |
122,505 |
6,370 |
||
TELECOMMUNICATION SERVICES - 0.0% |
||||
Diversified Telecommunication Services - 0.0% |
||||
PTV, Inc. Series A, 10.00% |
84 |
0 |
||
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
6,370 |
|||
TOTAL PREFERRED STOCKS (Cost $6,956) |
7,771 |
|||
Floating Rate Loans - 0.9% |
||||
|
Principal Amount (000s) |
|
||
TELECOMMUNICATION SERVICES - 0.9% |
||||
Diversified Telecommunication Services - 0.9% |
||||
McLeodUSA, Inc.: |
|
|
||
revolver loan 5.5967% 5/31/07 (g) |
$ 5,792 |
2,954 |
||
Tranche A, term loan 5.6002% 5/31/07 (g) |
17,276 |
9,329 |
||
Tranche B, term loan 5.67% 5/30/08 (g) |
15,507 |
7,599 |
||
19,882 |
||||
TOTAL FLOATING RATE LOANS (Cost $27,146) |
19,882 |
|||
Money Market Funds - 7.6% |
||||
Shares |
Value (Note 1) (000s) |
|||
Fidelity Cash Central Fund, 2.31% (b) |
120,955,029 |
$ 120,955 |
||
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c) |
48,445,500 |
48,446 |
||
TOTAL MONEY MARKET FUNDS (Cost $169,401) |
169,401 |
|||
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $1,766,931) |
2,282,320 |
|||
NET OTHER ASSETS - (2.1)% |
(46,523) |
|||
NET ASSETS - 100% |
$ 2,235,797 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $305,000 or 0.0% of net assets. |
(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,509,000 or 0.3% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Viasystems Group, Inc. |
2/13/04 |
$ 12,594 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
79.2% |
Marshall Islands |
13.9% |
Bermuda |
2.1% |
Ireland |
1.2% |
Canada |
1.1% |
Netherlands |
1.0% |
Others (individually less than 1%) |
1.5% |
|
100.0% |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Companies which are affiliates of the fund at period-end are noted in the fund's Schedule of Investments. Transactions during the period with companies which are or were affiliates are as follows: |
Affiliates |
Value, beginning of period |
Purchases |
Sales |
Dividend |
Value, end of period |
Central Freight Lines, Inc. |
$ - |
$ 6,048 |
$ - |
$ - |
$ 6,103 |
Forest Oil Corp. |
61,599 |
28,862 |
- |
- |
105,561 |
Friendly Ice Cream Corp. |
3,362 |
792 |
- |
- |
3,696 |
General Maritime Corp. |
84,190 |
4,005 |
6,432 |
- |
125,697 |
Pathmark Stores, Inc. |
11,606 |
- |
1,585 |
- |
- |
Triton PCS Holdings, Inc. Class A |
11,894 |
- |
10,296 |
- |
- |
Total |
$ 172,651 |
$ 39,707 |
$ 18,313 |
$ - |
$ 241,057 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) |
January 31, 2005 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,149) (cost $1,766,931) - See accompanying schedule |
|
$ 2,282,320 |
Receivable for investments sold |
|
77 |
Receivable for fund shares sold |
|
13,954 |
Dividends receivable |
|
417 |
Interest receivable |
|
438 |
Prepaid expenses |
|
5 |
Other affiliated receivables |
|
2 |
Other receivables |
|
315 |
Total assets |
|
2,297,528 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 8,840 |
|
Payable for fund shares redeemed |
2,919 |
|
Accrued management fee |
1,103 |
|
Other affiliated payables |
390 |
|
Other payables and accrued expenses |
33 |
|
Collateral on securities loaned, at value |
48,446 |
|
Total liabilities |
|
61,731 |
|
|
|
Net Assets |
|
$ 2,235,797 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,715,631 |
Undistributed net investment income |
|
3,913 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
864 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
515,389 |
Net Assets, for 98,960 shares outstanding |
|
$ 2,235,797 |
Net Asset Value, offering price and redemption price per share ($2,235,797 ÷ 98,960 shares) |
|
$ 22.59 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 7,824 |
Interest |
|
3,069 |
Security lending |
|
645 |
Total income |
|
11,538 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,360 |
|
Transfer agent fees |
1,759 |
|
Accounting and security lending fees |
261 |
|
Non-interested trustees' compensation |
5 |
|
Custodian fees and expenses |
14 |
|
Registration fees |
68 |
|
Audit |
24 |
|
Legal |
2 |
|
Miscellaneous |
8 |
|
Total expenses before reductions |
7,501 |
|
Expense reductions |
(173) |
7,328 |
Net investment income (loss) |
|
4,210 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities (Including realized gain (loss) of $(3,075) from affiliated issuers) |
14,587 |
|
Foreign currency transactions |
(53) |
|
Total net realized gain (loss) |
|
14,534 |
Change in net unrealized appreciation (depreciation) on Investment securities |
|
262,643 |
Net gain (loss) |
|
277,177 |
Net increase (decrease) in net assets resulting from operations |
|
$ 281,387 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 4,210 |
$ 2,937 |
Net realized gain (loss) |
14,534 |
106,434 |
Change in net unrealized appreciation (depreciation) |
262,643 |
162,681 |
Net increase (decrease) in net assets resulting |
281,387 |
272,052 |
Distributions to shareholders from net investment income |
(3,319) |
- |
Distributions to shareholders from net realized gain |
(83,080) |
(14,471) |
Total distributions |
(86,399) |
(14,471) |
Share transactions |
808,922 |
1,359,933 |
Reinvestment of distributions |
82,680 |
13,770 |
Cost of shares redeemed |
(355,564) |
(847,399) |
Net increase (decrease) in net assets resulting from share transactions |
536,038 |
526,304 |
Redemption fees |
576 |
2,119 |
Total increase (decrease) in net assets |
731,602 |
786,004 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,504,195 |
718,191 |
End of period (including undistributed net investment income of $3,913 and $3,427, respectively) |
$ 2,235,797 |
$ 1,504,195 |
Other Information Shares |
|
|
Sold |
37,544 |
70,707 |
Issued in reinvestment of distributions |
4,282 |
788 |
Redeemed |
(17,416) |
(45,040) |
Net increase (decrease) |
24,410 |
26,455 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended January 31, 2005 |
Years ended July 31, |
|||
|
(Unaudited) |
2004 |
2003 |
2002 |
2001 E |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period |
$ 20.18 |
$ 14.93 |
$ 7.37 |
$ 10.66 |
$ 10.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D |
.05 |
.04 |
.01 |
.11 G |
.07 |
Net realized and unrealized gain (loss) |
3.51 |
5.45 |
7.49 |
(3.22) G |
.58 |
Total from investment operations |
3.56 |
5.49 |
7.50 |
(3.11) |
.65 |
Distributions from net investment income |
(.04) |
- |
- |
(.20) |
- |
Distributions from net realized gain |
(1.12) |
(.27) |
- |
- |
- |
Total distributions |
(1.16) |
(.27) |
- |
(.20) |
- |
Redemption fees added to paid in capital D |
.01 |
.03 |
.06 |
.02 |
.01 |
Net asset value, end of period |
$ 22.59 |
$ 20.18 |
$ 14.93 |
$ 7.37 |
$ 10.66 |
Total Return B, C |
18.74% |
37.27% |
102.58% |
(29.40)% |
6.60% |
Ratios to Average Net Assets F |
|
|
|
|
|
Expenses before expense reductions |
.87% A |
.88% |
.93% |
1.14% |
.94% A |
Expenses net of voluntary waivers, if any |
.87% A |
.88% |
.93% |
1.14% |
.94% A |
Expenses net of all reductions |
.85% A |
.85% |
.83% |
.93% |
.83% A |
Net investment income (loss) |
.49% A |
.23% |
.07% |
1.16%G |
1.12% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period |
$ 2,236 |
$ 1,504 |
$ 718 |
$ 36 |
$ 195 |
Portfolio turnover rate |
20% A |
35% |
79% |
203% |
230% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period December 19, 2000 (commencement of operations) to July 31, 2001.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
G Effective August 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Leveraged Company Stock Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 625,352 |
|
Unrealized depreciation |
(107,809) |
|
Net unrealized appreciation (depreciation) |
$ 517,543 |
|
Cost for federal income tax purposes |
$ 1,764,777 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Operating Policies - continued
Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $531,208 and $169,630, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 .35% of the fund's average net assets and a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .62% of the fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .21% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting rec-ords. The accounting fee is based on the level of average net assets for the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $639 for the period.
Semiannual Report
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $170 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $3.
8. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST ®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
LSF-USAN-0305
1.789286.101
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
5 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
13 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
17 |
Notes to the financial statements. |
|
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the share-holder 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.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,058.40 |
$ 3.68 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,021.63 |
$ 3.62 |
*Expenses are equal to the Fund's annualized expense ratio of .71%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
American International Group, Inc. |
5.7 |
6.1 |
Cardinal Health, Inc. |
5.5 |
3.7 |
Home Depot, Inc. |
5.4 |
4.3 |
Microsoft Corp. |
5.1 |
5.5 |
Fannie Mae |
4.2 |
4.9 |
SBC Communications, Inc. |
4.1 |
4.2 |
Pfizer, Inc. |
3.9 |
4.4 |
General Electric Co. |
3.8 |
3.7 |
Clear Channel Communications, Inc. |
3.8 |
4.1 |
Wyeth |
3.7 |
3.1 |
|
45.2 |
|
Top Five Market Sectors as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Financials |
25.8 |
27.0 |
Information Technology |
16.3 |
12.9 |
Health Care |
16.1 |
16.1 |
Consumer Discretionary |
10.6 |
10.1 |
Industrials |
8.5 |
7.0 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005 * |
As of July 31, 2004 ** |
||||||
![]() |
Stocks 97.3% |
|
![]() |
Stocks and Equity |
|
||
![]() |
Convertible |
|
![]() |
Convertible |
|
||
![]() |
Short-Term |
|
![]() |
Short-Term |
|
||
* Foreign |
2.7% |
|
** Foreign |
2.4% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.3% |
|||
Shares |
Value (Note 1) (000s) |
||
CONSUMER DISCRETIONARY - 10.6% |
|||
Hotels, Restaurants & Leisure - 0.4% |
|||
McDonald's Corp. |
2,468,600 |
$ 79,958 |
|
Media - 4.5% |
|||
Clear Channel Communications, Inc. |
21,360,940 |
692,735 |
|
News Corp. Class A |
7,255,800 |
123,349 |
|
Univision Communications, Inc. Class A (a) |
100,300 |
2,739 |
|
|
818,823 |
||
Specialty Retail - 5.7% |
|||
Home Depot, Inc. |
23,995,000 |
990,034 |
|
Ross Stores, Inc. |
399,176 |
11,424 |
|
TJX Companies, Inc. |
1,562,800 |
39,133 |
|
|
1,040,591 |
||
TOTAL CONSUMER DISCRETIONARY |
1,939,372 |
||
CONSUMER STAPLES - 8.1% |
|||
Beverages - 0.5% |
|||
PepsiCo, Inc. |
1,757,790 |
94,393 |
|
Food & Staples Retailing - 4.4% |
|||
CVS Corp. |
9,629,500 |
446,327 |
|
Safeway, Inc. (a) |
7,476,300 |
140,928 |
|
Wal-Mart Stores, Inc. |
4,335,400 |
227,175 |
|
|
814,430 |
||
Household Products - 0.3% |
|||
Colgate-Palmolive Co. |
864,100 |
45,400 |
|
Procter & Gamble Co. |
168,100 |
8,948 |
|
|
54,348 |
||
Personal Products - 1.3% |
|||
Alberto-Culver Co. |
4,196,645 |
227,668 |
|
Tobacco - 1.6% |
|||
Altria Group, Inc. |
4,628,500 |
295,437 |
|
TOTAL CONSUMER STAPLES |
1,486,276 |
||
ENERGY - 4.1% |
|||
Energy Equipment & Services - 3.1% |
|||
Diamond Offshore Drilling, Inc. (d) |
3,949,300 |
172,861 |
|
ENSCO International, Inc. |
2,522,094 |
86,331 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
ENERGY - continued |
|||
Energy Equipment & Services - continued |
|||
GlobalSantaFe Corp. |
4,138,079 |
$ 146,322 |
|
Transocean, Inc. (a) |
3,488,000 |
153,472 |
|
|
558,986 |
||
Oil & Gas - 1.0% |
|||
ConocoPhillips |
1,710,200 |
158,689 |
|
Exxon Mobil Corp. |
574,120 |
29,625 |
|
|
188,314 |
||
TOTAL ENERGY |
747,300 |
||
FINANCIALS - 25.8% |
|||
Capital Markets - 3.6% |
|||
Goldman Sachs Group, Inc. |
1,625,400 |
175,299 |
|
Lehman Brothers Holdings, Inc. |
634,700 |
57,878 |
|
Merrill Lynch & Co., Inc. |
3,403,000 |
204,418 |
|
Morgan Stanley |
3,454,400 |
193,308 |
|
Nuveen Investments, Inc. Class A |
667,500 |
24,764 |
|
|
655,667 |
||
Commercial Banks - 4.4% |
|||
Bank of America Corp. |
8,204,698 |
380,452 |
|
North Fork Bancorp, Inc., New York |
935,220 |
26,841 |
|
Synovus Financial Corp. |
1,428,900 |
38,766 |
|
Wachovia Corp. |
3,481,853 |
190,980 |
|
Wells Fargo & Co. |
2,910,000 |
178,383 |
|
|
815,422 |
||
Consumer Finance - 0.3% |
|||
MBNA Corp. |
2,356,200 |
62,628 |
|
Diversified Financial Services - 2.4% |
|||
Citigroup, Inc. |
7,127,039 |
349,581 |
|
J.P. Morgan Chase & Co. |
2,637,624 |
98,463 |
|
|
448,044 |
||
Insurance - 9.7% |
|||
ACE Ltd. |
2,073,600 |
89,994 |
|
AFLAC, Inc. |
392,400 |
15,504 |
|
AMBAC Financial Group, Inc. |
1,304,200 |
100,267 |
|
American International Group, Inc. |
15,837,800 |
1,049,889 |
|
Hartford Financial Services Group, Inc. |
3,906,120 |
262,843 |
|
MBIA, Inc. |
1,237,900 |
73,952 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
MetLife, Inc. |
2,685,000 |
$ 106,729 |
|
PartnerRe Ltd. |
390,300 |
24,733 |
|
Prudential Financial, Inc. |
1,007,100 |
54,293 |
|
|
1,778,204 |
||
Thrifts & Mortgage Finance - 5.4% |
|||
Fannie Mae |
11,813,780 |
762,934 |
|
MGIC Investment Corp. |
1,743,400 |
111,403 |
|
New York Community Bancorp, Inc. |
2,156,500 |
38,450 |
|
Washington Mutual, Inc. |
1,797,900 |
72,545 |
|
|
985,332 |
||
TOTAL FINANCIALS |
4,745,297 |
||
HEALTH CARE - 16.1% |
|||
Health Care Equipment & Supplies - 0.4% |
|||
Baxter International, Inc. |
1,029,100 |
34,742 |
|
Medtronic, Inc. |
535,700 |
28,119 |
|
|
62,861 |
||
Health Care Providers & Services - 5.7% |
|||
Cardinal Health, Inc. |
18,076,470 |
1,018,067 |
|
Henry Schein, Inc. (a) |
11,438 |
778 |
|
Service Corp. International (SCI) (a) |
1,216,983 |
8,397 |
|
UnitedHealth Group, Inc. |
230,700 |
20,509 |
|
|
1,047,751 |
||
Pharmaceuticals - 10.0% |
|||
Johnson & Johnson |
5,488,700 |
355,119 |
|
Pfizer, Inc. |
29,755,500 |
718,893 |
|
Schering-Plough Corp. |
5,151,300 |
95,608 |
|
Wyeth |
16,968,700 |
672,470 |
|
|
1,842,090 |
||
TOTAL HEALTH CARE |
2,952,702 |
||
INDUSTRIALS - 8.0% |
|||
Aerospace & Defense - 1.1% |
|||
Lockheed Martin Corp. |
1,153,400 |
66,678 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INDUSTRIALS - continued |
|||
Aerospace & Defense - continued |
|||
Northrop Grumman Corp. |
864,300 |
$ 44,840 |
|
United Technologies Corp. |
817,700 |
82,326 |
|
|
193,844 |
||
Air Freight & Logistics - 0.0% |
|||
Ryder System, Inc. |
220,800 |
10,057 |
|
Commercial Services & Supplies - 0.4% |
|||
Aramark Corp. Class B |
655,100 |
17,026 |
|
ChoicePoint, Inc. (a) |
1,222,700 |
56,244 |
|
|
73,270 |
||
Industrial Conglomerates - 5.6% |
|||
General Electric Co. |
19,489,900 |
704,170 |
|
Tyco International Ltd. |
8,839,700 |
319,467 |
|
|
1,023,637 |
||
Machinery - 0.7% |
|||
Ingersoll-Rand Co. Ltd. Class A |
1,772,900 |
131,868 |
|
Marine - 0.1% |
|||
Alexander & Baldwin, Inc. |
275,616 |
12,678 |
|
Road & Rail - 0.1% |
|||
CSX Corp. |
614,200 |
24,550 |
|
TOTAL INDUSTRIALS |
1,469,904 |
||
INFORMATION TECHNOLOGY - 16.3% |
|||
Communications Equipment - 3.1% |
|||
Cisco Systems, Inc. (a) |
19,539,000 |
352,484 |
|
Comverse Technology, Inc. (a) |
1,921,500 |
42,946 |
|
Motorola, Inc. |
8,492,500 |
133,672 |
|
Nokia Corp. sponsored ADR |
572,400 |
8,746 |
|
QUALCOMM, Inc. |
843,300 |
31,404 |
|
|
569,252 |
||
Computers & Peripherals - 2.4% |
|||
Dell, Inc. (a) |
6,914,500 |
288,750 |
|
Diebold, Inc. |
602,800 |
32,455 |
|
Hewlett-Packard Co. |
6,272,100 |
122,870 |
|
|
444,075 |
||
Electronic Equipment & Instruments - 0.7% |
|||
Flextronics International Ltd. (a) |
2,426,800 |
34,339 |
|
Jabil Circuit, Inc. (a) |
1,794,700 |
42,301 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Electronic Equipment & Instruments - continued |
|||
Sanmina-SCI Corp. (a) |
2,437,700 |
$ 15,065 |
|
Solectron Corp. (a)(d) |
9,028,400 |
44,871 |
|
|
136,576 |
||
IT Services - 0.8% |
|||
Affiliated Computer Services, Inc. Class A (a) |
1,107,200 |
59,999 |
|
First Data Corp. |
1,967,200 |
80,144 |
|
|
140,143 |
||
Semiconductors & Semiconductor Equipment - 3.2% |
|||
Analog Devices, Inc. |
317,200 |
11,384 |
|
Applied Materials, Inc. (a) |
6,024,200 |
95,785 |
|
Freescale Semiconductor, Inc. Class B (a) |
880,868 |
15,389 |
|
Intel Corp. |
13,713,000 |
307,857 |
|
KLA-Tencor Corp. (a) |
854,700 |
39,530 |
|
Lam Research Corp. (a) |
1,133,300 |
30,327 |
|
Linear Technology Corp. |
215,400 |
8,129 |
|
Novellus Systems, Inc. (a) |
722,700 |
18,899 |
|
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR |
3,237,659 |
28,330 |
|
United Microelectronics Corp. sponsored ADR (d) |
6,080,176 |
21,463 |
|
Xilinx, Inc. |
145,500 |
4,247 |
|
|
581,340 |
||
Software - 6.1% |
|||
BEA Systems, Inc. (a) |
5,128,200 |
43,692 |
|
Microsoft Corp. |
35,658,737 |
937,112 |
|
Symantec Corp. (a) |
860,400 |
20,090 |
|
VERITAS Software Corp. (a) |
4,813,234 |
123,796 |
|
|
1,124,690 |
||
TOTAL INFORMATION TECHNOLOGY |
2,996,076 |
||
MATERIALS - 0.5% |
|||
Chemicals - 0.2% |
|||
Praxair, Inc. |
1,033,500 |
44,596 |
|
Metals & Mining - 0.2% |
|||
Alcan, Inc. |
1,020,800 |
40,707 |
|
Paper & Forest Products - 0.1% |
|||
International Paper Co. |
216,200 |
8,464 |
|
TOTAL MATERIALS |
93,767 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
TELECOMMUNICATION SERVICES - 6.8% |
|||
Diversified Telecommunication Services - 6.5% |
|||
BellSouth Corp. |
5,787,100 |
$ 151,854 |
|
Qwest Communications International, Inc. (a) |
28,571,200 |
119,999 |
|
SBC Communications, Inc. |
31,380,791 |
745,608 |
|
Verizon Communications, Inc. |
4,808,850 |
171,147 |
|
|
1,188,608 |
||
Wireless Telecommunication Services - 0.3% |
|||
Nextel Communications, Inc. Class A (a) |
2,207,600 |
63,336 |
|
TOTAL TELECOMMUNICATION SERVICES |
1,251,944 |
||
UTILITIES - 1.0% |
|||
Electric Utilities - 1.0% |
|||
Entergy Corp. |
679,700 |
47,253 |
|
FirstEnergy Corp. |
1,325,700 |
52,710 |
|
PG&E Corp. (a) |
2,133,800 |
74,683 |
|
|
174,646 |
||
TOTAL COMMON STOCKS (Cost $16,564,389) |
17,857,284 |
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
MATERIALS - 0.1% |
|||
Paper & Forest Products - 0.1% |
|||
International Paper Capital Trust 2.625% |
426,800 |
21,553 |
|
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $21,703) |
21,553 |
Convertible Bonds - 0.5% |
||||
|
Principal Amount (000s) |
|
||
INDUSTRIALS - 0.5% |
||||
Industrial Conglomerates - 0.5% |
||||
Tyco International Group SA yankee 3.125% 1/15/23 |
|
$ 51,110 |
86,560 |
|
Convertible Bonds - continued |
||||
|
Principal Amount (000s) |
Value (Note 1) (000s) |
||
INFORMATION TECHNOLOGY - 0.0% |
||||
Communications Equipment - 0.0% |
||||
CIENA Corp. 3.75% 2/1/08 |
|
$ 8,560 |
$ 7,597 |
|
TOTAL CONVERTIBLE BONDS (Cost $65,238) |
94,157 |
Money Market Funds - 3.4% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 2.31% (b) |
510,227,343 |
510,227 |
|
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c) |
117,266,961 |
117,267 |
|
TOTAL MONEY MARKET FUNDS (Cost $627,494) |
627,494 |
||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $17,278,824) |
18,600,488 |
||
NET OTHER ASSETS - (1.3)% |
(238,383) |
||
NET ASSETS - 100% |
$ 18,362,105 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Income Tax Information |
At July 31, 2004, the fund had a capital loss carryforward of approximately $195,547,000 all of which will expire on July 31, 2011. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) |
January 31, 2005 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $116,673) (cost $17,278,824) - See accompanying schedule |
|
$ 18,600,488 |
Receivable for investments sold |
|
102,053 |
Receivable for fund shares sold |
|
19,422 |
Dividends receivable |
|
20,201 |
Interest receivable |
|
969 |
Prepaid expenses |
|
65 |
Other affiliated receivables |
|
22 |
Other receivables |
|
594 |
Total assets |
|
18,743,814 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 17,897 |
|
Payable for fund shares redeemed |
235,666 |
|
Accrued management fee |
6,942 |
|
Other affiliated payables |
3,803 |
|
Other payables and accrued expenses |
134 |
|
Collateral on securities loaned, at value |
117,267 |
|
Total liabilities |
|
381,709 |
|
|
|
Net Assets |
|
$ 18,362,105 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 17,250,971 |
Undistributed net investment income |
|
11,656 |
Accumulated undistributed net realized gain (loss) on investments, foreign currency transactions and futures |
|
(222,186) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,321,664 |
Net Assets, for 661,933 shares outstanding |
|
$ 18,362,105 |
Net Asset Value, offering price and redemption price per share ($18,362,105 ÷ 661,933 shares) |
|
$ 27.74 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 150,834 |
Special Dividends |
|
106,976 |
Interest |
|
7,508 |
Security lending |
|
218 |
Total income |
|
265,536 |
|
|
|
Expenses |
|
|
Management fee |
$ 54,133 |
|
Performance adjustment |
(9,931) |
|
Transfer agent fees |
21,180 |
|
Accounting and security lending fees |
806 |
|
Non-interested trustees' compensation |
55 |
|
Appreciation in deferred trustee compensation account |
4 |
|
Custodian fees and expenses |
146 |
|
Registration fees |
53 |
|
Audit |
64 |
|
Legal |
23 |
|
Miscellaneous |
35 |
|
Total expenses before reductions |
66,568 |
|
Expense reductions |
(932) |
65,636 |
Net investment income (loss) |
|
199,900 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
58,988 |
|
Foreign currency transactions |
2 |
|
Futures contracts |
11,990 |
|
Total net realized gain (loss) |
|
70,980 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
805,688 |
|
Assets and liabilities in foreign currencies |
(16) |
|
Futures contracts |
3,469 |
|
Total change in net unrealized appreciation (depreciation) |
|
809,141 |
Net gain (loss) |
|
880,121 |
Net increase (decrease) in net assets resulting from operations |
|
$ 1,080,021 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 199,900 |
$ 133,702 |
Net realized gain (loss) |
70,980 |
573,551 |
Change in net unrealized appreciation (depreciation) |
809,141 |
587,273 |
Net increase (decrease) in net assets resulting |
1,080,021 |
1,294,526 |
Distributions to shareholders from net investment income |
(269,024) |
(142,749) |
Share transactions |
1,842,113 |
5,305,733 |
Reinvestment of distributions |
260,163 |
137,933 |
Cost of shares redeemed |
(2,938,031) |
(3,945,945) |
Net increase (decrease) in net assets resulting from share transactions |
(835,755) |
1,497,721 |
Total increase (decrease) in net assets |
(24,758) |
2,649,498 |
|
|
|
Net Assets |
|
|
Beginning of period |
18,386,863 |
15,737,365 |
End of period (including undistributed net investment income of $11,656 and undistributed net investment income of $80,780, respectively) |
$ 18,362,105 |
$ 18,386,863 |
Other Information Shares |
|
|
Sold |
67,603 |
198,128 |
Issued in reinvestment of distributions |
9,419 |
5,341 |
Redeemed |
(106,797) |
(147,303) |
Net increase (decrease) |
(29,775) |
56,166 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended |
Years ended July 31, |
||||
|
(Unaudited) |
2004 |
2003 |
2002 |
2001 |
2000 |
Selected Per-Share Data |
|
|
|
|
||
Net asset value, beginning of period |
$ 26.58 |
$ 24.76 |
$ 22.20 |
$ 29.75 |
$ 30.90 |
$ 31.14 |
Income from Investment |
|
|
|
|
||
Net investment income (loss) D |
.29 E |
.20 |
.22 |
.24 G |
.16 |
.15 |
Net realized and unrealized gain (loss) |
1.26 |
1.84 |
2.56 |
(7.31) G |
1.27 |
1.89 |
Total from investment operations |
1.55 |
2.04 |
2.78 |
(7.07) |
1.43 |
2.04 |
Distributions from net investment income |
(.39) |
(.22) |
(.22) |
(.15) |
(.18) |
(.14) |
Distributions from net realized gain |
- |
- |
- |
(.33) |
(2.40) |
(2.14) |
Total distributions |
(.39) |
(.22) |
(.22) |
(.48) |
(2.58) |
(2.28) |
Net asset value, end of period |
$ 27.74 |
$ 26.58 |
$ 24.76 |
$ 22.20 |
$ 29.75 |
$ 30.90 |
Total Return B, C |
5.84% |
8.27% |
12.63% |
(24.04)% |
4.58% |
7.00% |
Ratios to Average Net Assets F |
|
|
|
|
||
Expenses before expense reductions |
.71% A |
.90% |
1.05% |
.98% |
.97% |
.77% |
Expenses net of voluntary waivers, if any |
.71% A |
.90% |
1.05% |
.98% |
.97% |
.77% |
Expenses net of all reductions |
.70% A |
.89% |
1.02% |
.95% |
.94% |
.74% |
Net investment income (loss) |
2.12% A, E |
.75% |
.94% |
.90% G |
.54% |
.52% |
Supplemental Data |
|
|
|
|
|
|
Net assets, |
$ 18,362 |
$ 18,387 |
$ 15,737 |
$ 12,648 |
$ 14,463 |
$ 10,432 |
Portfolio turnover rate |
30% A |
37% |
51% |
81% |
88% |
86% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been .99%.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
G Effective August 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Dividend Growth Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 2,506,875 |
|
Unrealized depreciation |
(1,291,309) |
|
Net unrealized appreciation (depreciation) |
$ 1,215,566 |
|
Cost for federal income tax purposes |
$ 17,384,922 |
|
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Operating Policies - continued
Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $2,735,895 and $3,127,176, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .22% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting rec-ords. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $5,910 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $155 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $798 for the period. In addition, through arrangements with the transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's transfer agent expenses by $134.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity International Investment
Advisors
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST ®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
DGF-USAN-0305
1.789283.101
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
5 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
17 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
21 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the share-holder 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.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,120.70 |
$ 5.29 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,020.21 |
$ 5.04 |
* Expenses are equal to the Fund's annualized expense ratio of .99%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
General Electric Co. |
6.0 |
5.8 |
Exxon Mobil Corp. |
3.6 |
3.0 |
Bank of America Corp. |
3.2 |
3.2 |
Honeywell International, Inc. |
2.7 |
2.1 |
American International Group, Inc. |
2.5 |
2.3 |
Altria Group, Inc. |
1.9 |
0.1 |
Wachovia Corp. |
1.8 |
0.6 |
Tyco International Ltd. |
1.8 |
2.1 |
E.I. du Pont de Nemours & Co. |
1.6 |
0.9 |
Baxter International, Inc. |
1.5 |
1.7 |
|
26.6 |
|
Top Five Market Sectors as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Industrials |
19.3 |
18.9 |
Financials |
18.6 |
24.8 |
Energy |
12.5 |
12.0 |
Health Care |
10.2 |
9.8 |
Consumer Discretionary |
9.3 |
11.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005 * |
As of July 31, 2004** |
||||||
![]() |
Stocks 95.9% |
|
![]() |
Stocks 100.0% |
|
||
![]() |
Short-Term |
|
![]() |
Short-Term |
|
||
* Foreign |
4.0% |
|
** Foreign |
3.6% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 95.9% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 9.3% |
|||
Auto Components - 0.0% |
|||
Amerigon, Inc. (a) |
3,200 |
$ 14,848 |
|
Automobiles - 0.2% |
|||
Toyota Motor Corp. ADR |
2,000 |
156,380 |
|
Distributors - 0.2% |
|||
WESCO International, Inc. (a) |
5,300 |
179,087 |
|
Hotels, Restaurants & Leisure - 0.8% |
|||
McDonald's Corp. |
27,300 |
884,247 |
|
Household Durables - 1.1% |
|||
Blount International, Inc. (a) |
6,300 |
113,085 |
|
Centex Corp. |
3,700 |
226,847 |
|
KB Home |
3,500 |
380,275 |
|
LG Electronics, Inc. |
1,510 |
103,854 |
|
Sony Corp. sponsored ADR |
6,000 |
222,120 |
|
Techtronic Industries Co. Ltd. |
72,000 |
161,080 |
|
|
1,207,261 |
||
Leisure Equipment & Products - 0.4% |
|||
Eastman Kodak Co. |
13,900 |
459,951 |
|
Media - 4.5% |
|||
Clear Channel Communications, Inc. |
18,400 |
596,712 |
|
Emmis Communications Corp. Class A (a) |
8,250 |
144,953 |
|
Grupo Televisa SA de CV sponsored ADR |
4,900 |
288,267 |
|
Lamar Advertising Co. Class A (a) |
19,000 |
816,620 |
|
News Corp. Class A |
5,232 |
88,944 |
|
NTL, Inc. (a) |
1,953 |
132,863 |
|
Omnicom Group, Inc. |
4,500 |
382,005 |
|
Time Warner, Inc. (a) |
19,600 |
352,800 |
|
Univision Communications, Inc. Class A (a) |
1,600 |
43,696 |
|
Valassis Communications, Inc. (a) |
2,400 |
81,480 |
|
Viacom, Inc. Class B (non-vtg.) |
32,341 |
1,207,613 |
|
Walt Disney Co. |
30,400 |
870,352 |
|
XM Satellite Radio Holdings, Inc. Class A (a) |
2,500 |
79,775 |
|
|
5,086,080 |
||
Multiline Retail - 0.6% |
|||
99 Cents Only Stores (a)(d) |
15,000 |
225,000 |
|
JCPenney Co., Inc. |
6,200 |
264,864 |
|
Nordstrom, Inc. |
4,700 |
226,775 |
|
|
716,639 |
||
Specialty Retail - 1.5% |
|||
Asbury Automotive Group, Inc. (a) |
10,000 |
168,800 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Specialty Retail - continued |
|||
bebe Stores, Inc. |
8,000 |
$ 207,280 |
|
Blockbuster, Inc. Class A (d) |
10,000 |
91,600 |
|
Home Depot, Inc. |
13,100 |
540,506 |
|
Sonic Automotive, Inc. Class A (sub. vtg.) |
7,000 |
163,520 |
|
The Pep Boys - Manny, Moe & Jack |
5,700 |
98,154 |
|
Toys 'R' Us, Inc. (a) |
19,400 |
416,130 |
|
|
1,685,990 |
||
TOTAL CONSUMER DISCRETIONARY |
10,390,483 |
||
CONSUMER STAPLES - 3.5% |
|||
Beverages - 0.3% |
|||
PepsiCo, Inc. |
5,800 |
311,460 |
|
Food & Staples Retailing - 0.4% |
|||
Albertsons, Inc. |
6,500 |
148,720 |
|
Safeway, Inc. (a) |
14,800 |
278,980 |
|
|
427,700 |
||
Food Products - 0.4% |
|||
Bunge Ltd. |
3,500 |
197,890 |
|
General Mills, Inc. |
4,100 |
217,259 |
|
Smithfield Foods, Inc. (a) |
2,900 |
87,783 |
|
|
502,932 |
||
Household Products - 0.1% |
|||
Clorox Co. |
2,160 |
128,347 |
|
Personal Products - 0.4% |
|||
Gillette Co. |
8,320 |
421,990 |
|
Tobacco - 1.9% |
|||
Altria Group, Inc. |
34,200 |
2,182,986 |
|
TOTAL CONSUMER STAPLES |
3,975,415 |
||
ENERGY - 12.5% |
|||
Energy Equipment & Services - 5.2% |
|||
Baker Hughes, Inc. |
2,200 |
95,260 |
|
BJ Services Co. |
4,300 |
206,615 |
|
ENSCO International, Inc. |
6,880 |
235,502 |
|
FMC Technologies, Inc. (a) |
10,200 |
312,426 |
|
GlobalSantaFe Corp. |
14,500 |
512,720 |
|
Halliburton Co. |
26,900 |
1,106,397 |
|
Hornbeck Offshore Services, Inc. |
5,600 |
121,520 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Energy Equipment & Services - continued |
|||
National-Oilwell, Inc. (a) |
2,700 |
$ 99,576 |
|
Pride International, Inc. (a) |
24,300 |
568,377 |
|
Rowan Companies, Inc. |
8,000 |
225,280 |
|
Schlumberger Ltd. (NY Shares) |
8,400 |
571,536 |
|
Smith International, Inc. (a) |
4,400 |
260,480 |
|
Transocean, Inc. (a) |
12,500 |
550,000 |
|
Varco International, Inc. (a) |
18,140 |
555,265 |
|
Weatherford International Ltd. (a) |
8,650 |
469,436 |
|
|
5,890,390 |
||
Oil & Gas - 7.3% |
|||
Apache Corp. |
5,520 |
300,398 |
|
BP PLC sponsored ADR |
2,800 |
166,936 |
|
Burlington Resources, Inc. |
10,400 |
454,584 |
|
Cheniere Energy, Inc. (a) |
1,000 |
74,900 |
|
ChevronTexaco Corp. |
18,000 |
979,200 |
|
ConocoPhillips |
5,600 |
519,624 |
|
Encore Acquisition Co. (a) |
3,600 |
134,280 |
|
Exxon Mobil Corp. |
79,500 |
4,102,200 |
|
Occidental Petroleum Corp. |
7,200 |
420,336 |
|
Premcor, Inc. |
4,700 |
225,600 |
|
Quicksilver Resources, Inc. (a)(d) |
8,200 |
364,326 |
|
Valero Energy Corp. |
7,800 |
405,834 |
|
|
8,148,218 |
||
TOTAL ENERGY |
14,038,608 |
||
FINANCIALS - 18.6% |
|||
Capital Markets - 3.4% |
|||
Bear Stearns Companies, Inc. |
5,800 |
586,148 |
|
Lehman Brothers Holdings, Inc. |
8,500 |
775,115 |
|
Merrill Lynch & Co., Inc. |
24,500 |
1,471,715 |
|
Morgan Stanley |
13,200 |
738,672 |
|
optionsXpress Holdings, Inc. |
1,000 |
20,280 |
|
State Street Corp. |
4,600 |
206,126 |
|
TradeStation Group, Inc. (a) |
10,700 |
65,270 |
|
|
3,863,326 |
||
Commercial Banks - 6.0% |
|||
Banco Bradesco SA sponsored ADR (non-vtg.) |
16,400 |
403,440 |
|
Bank of America Corp. |
77,216 |
3,580,506 |
|
Texas Capital Bancshares, Inc. (a) |
4,300 |
101,953 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
FINANCIALS - continued |
|||
Commercial Banks - continued |
|||
UCBH Holdings, Inc. |
4,300 |
$ 189,501 |
|
Wachovia Corp. |
37,356 |
2,048,977 |
|
Wells Fargo & Co. |
6,600 |
404,580 |
|
|
6,728,957 |
||
Consumer Finance - 0.4% |
|||
Capital One Financial Corp. |
3,100 |
242,668 |
|
First Marblehead Corp. (a) |
3,200 |
205,856 |
|
|
448,524 |
||
Diversified Financial Services - 1.5% |
|||
Citigroup, Inc. |
23,600 |
1,157,580 |
|
J.P. Morgan Chase & Co. |
13,652 |
509,629 |
|
|
1,667,209 |
||
Insurance - 4.9% |
|||
ACE Ltd. |
13,480 |
585,032 |
|
AFLAC, Inc. |
7,800 |
308,178 |
|
AMBAC Financial Group, Inc. |
6,600 |
507,408 |
|
American International Group, Inc. |
41,600 |
2,757,664 |
|
Hartford Financial Services Group, Inc. |
6,400 |
430,656 |
|
Hilb Rogal & Hobbs Co. |
5,600 |
199,136 |
|
MetLife, Inc. |
4,300 |
170,925 |
|
Scottish Re Group Ltd. |
2,900 |
66,903 |
|
Unitrin, Inc. |
2,000 |
85,660 |
|
W.R. Berkley Corp. |
8,400 |
400,680 |
|
|
5,512,242 |
||
Real Estate - 0.8% |
|||
Apartment Investment & Management Co. Class A |
11,810 |
423,979 |
|
Equity Lifestyle Properties, Inc. |
1,400 |
47,992 |
|
General Growth Properties, Inc. |
8,100 |
257,337 |
|
iStar Financial, Inc. |
2,500 |
104,625 |
|
Spirit Finance Corp. (e) |
2,000 |
23,800 |
|
|
857,733 |
||
Thrifts & Mortgage Finance - 1.6% |
|||
Fannie Mae |
4,140 |
267,361 |
|
Freddie Mac |
3,900 |
254,631 |
|
Golden West Financial Corp., Delaware |
4,720 |
305,006 |
|
New York Community Bancorp, Inc. |
6,100 |
108,763 |
|
Sovereign Bancorp, Inc. |
22,200 |
504,828 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
FINANCIALS - continued |
|||
Thrifts & Mortgage Finance - continued |
|||
W Holding Co., Inc. |
6,732 |
$ 87,785 |
|
Washington Mutual, Inc. |
6,200 |
250,170 |
|
|
1,778,544 |
||
TOTAL FINANCIALS |
20,856,535 |
||
HEALTH CARE - 10.2% |
|||
Biotechnology - 1.2% |
|||
Alexion Pharmaceuticals, Inc. (a) |
6,000 |
148,440 |
|
Alkermes, Inc. (a) |
5,400 |
68,418 |
|
Amgen, Inc. (a) |
3,300 |
205,392 |
|
Biogen Idec, Inc. (a) |
3,800 |
246,848 |
|
BioMarin Pharmaceutical, Inc. (a) |
22,800 |
137,940 |
|
Genentech, Inc. (a) |
2,100 |
100,191 |
|
ImClone Systems, Inc. (a) |
1,900 |
79,705 |
|
MedImmune, Inc. (a) |
11,200 |
264,936 |
|
Millennium Pharmaceuticals, Inc. (a) |
5,400 |
49,734 |
|
|
1,301,604 |
||
Health Care Equipment & Supplies - 4.1% |
|||
Aspect Medical Systems, Inc. (a) |
4,000 |
90,160 |
|
Baxter International, Inc. |
50,140 |
1,692,726 |
|
Dade Behring Holdings, Inc. (a) |
3,800 |
217,170 |
|
Guidant Corp. |
3,000 |
217,470 |
|
Medtronic, Inc. |
21,500 |
1,128,535 |
|
PerkinElmer, Inc. |
10,300 |
236,797 |
|
Thermo Electron Corp. (a) |
3,300 |
98,802 |
|
Waters Corp. (a) |
19,200 |
942,336 |
|
|
4,623,996 |
||
Health Care Providers & Services - 1.9% |
|||
McKesson Corp. |
13,500 |
465,615 |
|
Omnicare, Inc. |
3,000 |
92,250 |
|
PacifiCare Health Systems, Inc. (a) |
3,400 |
209,202 |
|
Sierra Health Services, Inc. (a) |
5,700 |
313,101 |
|
UnitedHealth Group, Inc. |
12,100 |
1,075,690 |
|
|
2,155,858 |
||
Pharmaceuticals - 3.0% |
|||
Connetics Corp. (a) |
4,500 |
109,890 |
|
Johnson & Johnson |
10,360 |
670,292 |
|
Merck & Co., Inc. |
16,300 |
457,215 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Pharmaceuticals - continued |
|||
Pfizer, Inc. |
15,700 |
$ 379,312 |
|
Schering-Plough Corp. |
49,710 |
922,618 |
|
Wyeth |
20,300 |
804,489 |
|
|
3,343,816 |
||
TOTAL HEALTH CARE |
11,425,274 |
||
INDUSTRIALS - 19.3% |
|||
Aerospace & Defense - 4.6% |
|||
Engineered Support Systems, Inc. |
1,800 |
104,418 |
|
Hexcel Corp. (a) |
8,700 |
128,151 |
|
Honeywell International, Inc. |
85,560 |
3,078,449 |
|
Lockheed Martin Corp. |
12,720 |
735,343 |
|
Precision Castparts Corp. |
4,000 |
281,200 |
|
Raytheon Co. |
10,200 |
381,480 |
|
The Boeing Co. |
8,200 |
414,920 |
|
|
5,123,961 |
||
Air Freight & Logistics - 0.1% |
|||
Expeditors International of Washington, Inc. |
3,300 |
185,262 |
|
Airlines - 0.5% |
|||
AirTran Holdings, Inc. (a) |
6,200 |
52,948 |
|
Delta Air Lines, Inc. (a) |
19,200 |
103,488 |
|
JetBlue Airways Corp. (a) |
4,800 |
94,992 |
|
Ryanair Holdings PLC sponsored ADR (a) |
1,100 |
51,513 |
|
Southwest Airlines Co. |
18,700 |
270,776 |
|
|
573,717 |
||
Building Products - 1.0% |
|||
Masco Corp. |
32,300 |
1,188,640 |
|
Commercial Services & Supplies - 2.3% |
|||
Apollo Group, Inc. Class A (a) |
5,900 |
461,321 |
|
Asset Acceptance Capital Corp. |
600 |
12,288 |
|
Career Education Corp. (a) |
12,500 |
503,625 |
|
Cintas Corp. |
14,116 |
614,046 |
|
On Assignment, Inc. (a) |
11,793 |
64,862 |
|
Robert Half International, Inc. |
30,530 |
926,280 |
|
|
2,582,422 |
||
Construction & Engineering - 1.2% |
|||
Chicago Bridge & Iron Co. NV (NY Shares) |
8,600 |
325,080 |
|
Fluor Corp. |
6,900 |
369,426 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Construction & Engineering - continued |
|||
Jacobs Engineering Group, Inc. (a) |
6,900 |
$ 350,451 |
|
MasTec, Inc. (a) |
33,600 |
298,704 |
|
|
1,343,661 |
||
Electrical Equipment - 0.2% |
|||
ABB Ltd. sponsored ADR (a) |
15,000 |
82,650 |
|
Rockwell Automation, Inc. |
2,000 |
113,300 |
|
|
195,950 |
||
Industrial Conglomerates - 7.9% |
|||
General Electric Co. |
184,950 |
6,682,244 |
|
Siemens AG sponsored ADR |
2,000 |
158,820 |
|
Tyco International Ltd. |
55,940 |
2,021,672 |
|
|
8,862,736 |
||
Machinery - 0.4% |
|||
CUNO, Inc. (a) |
2,000 |
114,860 |
|
ITT Industries, Inc. |
3,000 |
255,870 |
|
Timken Co. |
3,500 |
90,160 |
|
|
460,890 |
||
Marine - 0.1% |
|||
Alexander & Baldwin, Inc. |
1,600 |
73,600 |
|
Road & Rail - 0.9% |
|||
Norfolk Southern Corp. |
14,700 |
513,324 |
|
Swift Transportation Co., Inc. (a) |
12,300 |
274,290 |
|
Union Pacific Corp. |
4,200 |
250,320 |
|
|
1,037,934 |
||
Trading Companies & Distributors - 0.1% |
|||
UAP Holding Corp. |
5,200 |
78,000 |
|
TOTAL INDUSTRIALS |
21,706,773 |
||
INFORMATION TECHNOLOGY - 7.8% |
|||
Communications Equipment - 1.2% |
|||
Cisco Systems, Inc. (a) |
5,300 |
95,612 |
|
Comverse Technology, Inc. (a) |
13,700 |
306,195 |
|
Foundry Networks, Inc. (a) |
18,000 |
185,040 |
|
Juniper Networks, Inc. (a) |
16,500 |
414,645 |
|
Motorola, Inc. |
6,300 |
99,162 |
|
QUALCOMM, Inc. |
6,100 |
227,164 |
|
|
1,327,818 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - continued |
|||
Computers & Peripherals - 0.8% |
|||
International Business Machines Corp. |
4,220 |
$ 394,232 |
|
Sun Microsystems, Inc. (a) |
17,400 |
75,864 |
|
Western Digital Corp. (a) |
37,200 |
400,644 |
|
|
870,740 |
||
Electronic Equipment & Instruments - 0.8% |
|||
Amphenol Corp. Class A |
5,600 |
220,248 |
|
BEI Technologies, Inc. |
3,300 |
93,027 |
|
Molex, Inc. |
5,000 |
143,600 |
|
Solectron Corp. (a) |
6,300 |
31,311 |
|
Symbol Technologies, Inc. |
25,000 |
457,500 |
|
|
945,686 |
||
Internet Software & Services - 0.1% |
|||
Akamai Technologies, Inc. (a) |
8,200 |
107,420 |
|
IT Services - 0.6% |
|||
Affiliated Computer Services, Inc. Class A (a) |
9,500 |
514,805 |
|
BearingPoint, Inc. (a) |
12,900 |
101,781 |
|
Sapient Corp. (a) |
8,600 |
67,768 |
|
|
684,354 |
||
Office Electronics - 0.4% |
|||
Xerox Corp. (a) |
25,000 |
397,000 |
|
Semiconductors & Semiconductor Equipment - 1.6% |
|||
Analog Devices, Inc. |
5,400 |
193,806 |
|
Applied Materials, Inc. (a) |
8,900 |
141,510 |
|
Cabot Microelectronics Corp. (a) |
9,800 |
298,214 |
|
Freescale Semiconductor, Inc. Class A |
20,700 |
353,970 |
|
Intel Corp. |
16,500 |
370,425 |
|
Lam Research Corp. (a) |
5,261 |
140,784 |
|
PMC-Sierra, Inc. (a) |
8,900 |
91,492 |
|
Samsung Electronics Co. Ltd. |
440 |
212,177 |
|
|
1,802,378 |
||
Software - 2.3% |
|||
BEA Systems, Inc. (a) |
27,659 |
235,655 |
|
Macrovision Corp. (a) |
1,800 |
41,994 |
|
Microsoft Corp. |
62,760 |
1,649,333 |
|
Oracle Corp. (a) |
20,400 |
280,908 |
|
Symantec Corp. (a) |
16,400 |
382,940 |
|
|
2,590,830 |
||
TOTAL INFORMATION TECHNOLOGY |
8,726,226 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
MATERIALS - 8.8% |
|||
Chemicals - 5.5% |
|||
Albemarle Corp. |
3,600 |
$ 126,396 |
|
Celanese Corp. Class A |
5,400 |
87,102 |
|
Dow Chemical Co. |
24,600 |
1,222,620 |
|
E.I. du Pont de Nemours & Co. |
38,200 |
1,816,792 |
|
Lubrizol Corp. |
3,500 |
126,105 |
|
Lyondell Chemical Co. |
52,918 |
1,556,848 |
|
Monsanto Co. |
11,800 |
638,734 |
|
Mosaic Co. (a) |
7,700 |
127,050 |
|
Nalco Holding Co. |
10,000 |
193,500 |
|
Olin Corp. |
10,156 |
226,174 |
|
Valspar Corp. |
2,000 |
98,000 |
|
|
6,219,321 |
||
Construction Materials - 0.1% |
|||
Vulcan Materials Co. |
2,000 |
112,960 |
|
Containers & Packaging - 1.4% |
|||
Crown Holdings, Inc. (a) |
7,000 |
94,430 |
|
Owens-Illinois, Inc. (a) |
18,300 |
415,776 |
|
Packaging Corp. of America |
18,500 |
412,735 |
|
Smurfit-Stone Container Corp. (a) |
41,700 |
627,168 |
|
|
1,550,109 |
||
Metals & Mining - 1.6% |
|||
Alcoa, Inc. |
15,300 |
451,503 |
|
Allegheny Technologies, Inc. |
7,000 |
168,000 |
|
Freeport-McMoRan Copper & Gold, Inc. Class B |
3,900 |
143,559 |
|
Industrias Penoles SA de CV |
20,000 |
104,899 |
|
International Steel Group, Inc. (a) |
2,500 |
100,625 |
|
Massey Energy Co. |
4,200 |
159,306 |
|
Metals USA, Inc. (a) |
600 |
10,734 |
|
Newmont Mining Corp. |
6,300 |
262,017 |
|
Nucor Corp. |
3,720 |
208,915 |
|
Phelps Dodge Corp. |
1,700 |
163,710 |
|
|
1,773,268 |
||
Paper & Forest Products - 0.2% |
|||
Louisiana-Pacific Corp. |
3,700 |
94,720 |
|
Wausau-Mosinee Paper Corp. |
5,000 |
74,100 |
|
|
168,820 |
||
TOTAL MATERIALS |
9,824,478 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
TELECOMMUNICATION SERVICES - 4.0% |
|||
Diversified Telecommunication Services - 2.6% |
|||
Covad Communications Group, Inc. (a) |
202,200 |
$ 341,718 |
|
SBC Communications, Inc. |
61,200 |
1,454,112 |
|
Telewest Global, Inc. (a) |
17,000 |
286,450 |
|
Verizon Communications, Inc. |
24,600 |
875,514 |
|
|
2,957,794 |
||
Wireless Telecommunication Services - 1.4% |
|||
American Tower Corp. Class A (a) |
20,500 |
371,460 |
|
Leap Wireless International, Inc. (a) |
3,200 |
87,200 |
|
Mobile TeleSystems OJSC sponsored ADR (d) |
3,600 |
129,528 |
|
Nextel Communications, Inc. Class A (a) |
11,300 |
324,197 |
|
Nextel Partners, Inc. Class A (a) |
15,300 |
304,317 |
|
SpectraSite, Inc. (a) |
2,700 |
158,220 |
|
Vimpel Communications sponsored ADR (a) |
4,000 |
144,800 |
|
|
1,519,722 |
||
TOTAL TELECOMMUNICATION SERVICES |
4,477,516 |
||
UTILITIES - 1.9% |
|||
Electric Utilities - 1.3% |
|||
Entergy Corp. |
7,600 |
528,352 |
|
PG&E Corp. (a) |
13,000 |
455,000 |
|
PPL Corp. |
5,700 |
307,800 |
|
Southern Co. |
2,660 |
89,828 |
|
TXU Corp. |
1,400 |
96,880 |
|
|
1,477,860 |
||
Multi-Utilities & Unregulated Power - 0.6% |
|||
AES Corp. (a) |
17,600 |
247,280 |
|
CMS Energy Corp. (a) |
33,000 |
347,490 |
|
Public Service Enterprise Group, Inc. |
1,500 |
79,125 |
|
|
673,895 |
||
TOTAL UTILITIES |
2,151,755 |
||
TOTAL COMMON STOCKS (Cost $94,329,842) |
107,573,063 |
||
Money Market Funds - 4.3% |
|||
Shares |
Value (Note 1) |
||
Fidelity Cash Central Fund, 2.31% (b) |
4,034,789 |
$ 4,034,789 |
|
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c) |
733,700 |
733,700 |
|
TOTAL MONEY MARKET FUNDS (Cost $4,768,489) |
4,768,489 |
||
TOTAL INVESTMENT PORTFOLIO - 100.2% (Cost $99,098,331) |
112,341,552 |
||
NET OTHER ASSETS - (0.2)% |
(228,398) |
||
NET ASSETS - 100% |
$ 112,113,154 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $23,800 or 0.0% of net assets. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $728,432) (cost $99,098,331) - See accompanying schedule |
|
$ 112,341,552 |
Receivable for investments sold |
|
806,800 |
Receivable for fund shares sold |
|
703,954 |
Dividends receivable |
|
76,528 |
Interest receivable |
|
7,252 |
Prepaid expenses |
|
243 |
Other receivables |
|
13,479 |
Total assets |
|
113,949,808 |
|
|
|
Liabilities |
|
|
Payable to custodian bank |
$ 24,660 |
|
Payable for investments purchased |
845,905 |
|
Payable for fund shares redeemed |
132,854 |
|
Accrued management fee |
48,861 |
|
Other affiliated payables |
30,090 |
|
Other payables and accrued expenses |
20,584 |
|
Collateral on securities loaned, at value |
733,700 |
|
Total liabilities |
|
1,836,654 |
|
|
|
Net Assets |
|
$ 112,113,154 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 98,888,461 |
Distributions in excess of net investment income |
|
(15,987) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(2,597) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
13,243,277 |
Net Assets, for 9,025,616 shares outstanding |
|
$ 112,113,154 |
Net Asset Value, offering price and redemption price per share ($112,113,154 ÷ 9,025,616 shares) |
|
$ 12.42 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2005 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 697,792 |
Special Dividends |
|
153,780 |
Interest |
|
25,078 |
Security lending |
|
1,820 |
Total income |
|
878,470 |
|
|
|
Expenses |
|
|
Management fee |
$ 249,154 |
|
Performance adjustment |
(16,810) |
|
Transfer agent fees |
134,778 |
|
Accounting and security lending fees |
16,756 |
|
Non-interested trustees' compensation |
232 |
|
Custodian fees and expenses |
16,937 |
|
Registration fees |
10,780 |
|
Audit |
16,503 |
|
Legal |
342 |
|
Miscellaneous |
1,413 |
|
Total expenses before reductions |
430,085 |
|
Expense reductions |
(19,006) |
411,079 |
Net investment income (loss) |
|
467,391 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
381,960 |
|
Foreign currency transactions |
(219) |
|
Total net realized gain (loss) |
|
381,741 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
8,676,957 |
|
Assets and liabilities in foreign currencies |
67 |
|
Total change in net unrealized appreciation (depreciation) |
|
8,677,024 |
Net gain (loss) |
|
9,058,765 |
Net increase (decrease) in net assets resulting from operations |
|
$ 9,526,156 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
Six months ended January 31, 2005 (Unaudited) |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 467,391 |
$ 253,479 |
Net realized gain (loss) |
381,741 |
342,318 |
Change in net unrealized appreciation (depreciation) |
8,677,024 |
4,732,030 |
Net increase (decrease) in net assets resulting |
9,526,156 |
5,327,827 |
Distributions to shareholders from net investment income |
(665,945) |
(70,717) |
Distributions to shareholders from net realized gain |
(480,889) |
(168,054) |
Total distributions |
(1,146,834) |
(238,771) |
Share transactions |
60,479,485 |
73,889,048 |
Reinvestment of distributions |
1,111,320 |
232,131 |
Cost of shares redeemed |
(26,397,781) |
(29,251,784) |
Net increase (decrease) in net assets resulting from share transactions |
35,193,024 |
44,869,395 |
Total increase (decrease) in net assets |
43,572,346 |
49,958,451 |
|
|
|
Net Assets |
|
|
Beginning of period |
68,540,808 |
18,582,357 |
End of period (including distributions in excess of net investment income of $15,987 and undistributed net investment income of $189,382, respectively) |
$ 112,113,154 |
$ 68,540,808 |
Other Information Shares |
|
|
Sold |
5,088,440 |
6,816,269 |
Issued in reinvestment of distributions |
95,054 |
21,396 |
Redeemed |
(2,254,026) |
(2,650,499) |
Net increase (decrease) |
2,929,468 |
4,187,166 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended |
Years ended July 31, |
|
|
(Unaudited) |
2004 |
2003 E |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period |
$ 11.24 |
$ 9.73 |
$ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D |
.06 H |
.05 |
- G |
Net realized and unrealized gain (loss) |
1.29 |
1.52 |
(.27) |
Total from investment operations |
1.35 |
1.57 |
(.27) |
Distributions from net investment income |
(.09) |
(.02) |
- |
Distributions from net realized gain |
(.08) |
(.04) |
- |
Total distributions |
(.17) |
(.06) |
- |
Net asset value, end of period |
$ 12.42 |
$ 11.24 |
$ 9.73 |
Total Return B, C |
12.07% |
16.16% |
(2.70)% |
Ratios to Average Net Assets F |
|
|
|
Expenses before expense reductions |
.99% A |
1.17% |
3.37% A |
Expenses net of voluntary waivers, if any |
.99% A |
1.17% |
1.50% A |
Expenses net of all reductions |
.95% A |
1.13% |
1.50% A |
Net investment income (loss) |
1.08% A, H |
.50% |
.41% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) |
$ 112,113 |
$ 68,541 |
$ 18,582 |
Portfolio turnover rate |
88% A |
111% |
84% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period June 17, 2003 (commencement of operations) to July 31, 2003.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
G Amount represents less than $.01 per share.
H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been .72%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Blue Chip Value Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 14,517,365 |
|
Unrealized depreciation |
(1,583,451) |
|
Net unrealized appreciation (depreciation) |
$ 12,933,914 |
|
Cost for federal income tax purposes |
$ 99,407,638 |
|
Semiannual Report
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $67,503,544 and $37,485,405, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .54% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .31% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $25,064 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,456 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the
Semiannual Report
6. Security Lending - continued
securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $19,006 for the period.
8. Other Information.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
Nevada
2225 Village Walk Drive
Henderson, NV
Semiannual Report
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Inc. Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
BCV-USAN-0305
1.789732.101
Fidelity®
Portfolio
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
5 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
16 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
20 |
Notes to the financial statements. |
|
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,073.90 |
$ 3.61 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,021.73 |
$ 3.52 |
*Expenses are equal to the Fund's annualized expense ratio of .69%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
General Electric Co. |
4.0 |
3.9 |
SLM Corp. |
4.0 |
3.4 |
Exxon Mobil Corp. |
3.6 |
3.7 |
Microsoft Corp. |
3.2 |
4.0 |
Verizon Communications, Inc. |
2.6 |
2.8 |
UnitedHealth Group, Inc. |
2.4 |
1.8 |
SBC Communications, Inc. |
2.3 |
2.7 |
Pfizer, Inc. |
2.2 |
3.7 |
Wal-Mart Stores, Inc. |
2.1 |
2.4 |
American International Group, Inc. |
2.1 |
2.2 |
|
28.5 |
|
Top Five Market Sectors as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Financials |
20.0 |
20.2 |
Health Care |
13.6 |
14.6 |
Consumer Staples |
12.4 |
12.7 |
Industrials |
12.0 |
11.6 |
Consumer Discretionary |
10.6 |
9.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
As of July 31, 2004** |
||||||
![]() |
Stocks 94.9% |
|
![]() |
Stocks 96.0% |
|
||
![]() |
Convertible |
|
![]() |
Convertible |
|
||
![]() |
Short-Term |
|
![]() |
Short-Term |
|
||
* Foreign |
4.6% |
|
** Foreign |
5.6% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 94.8% |
|||
Shares |
Value (Note 1) (000s) |
||
CONSUMER DISCRETIONARY - 10.6% |
|||
Automobiles - 0.2% |
|||
Harley-Davidson, Inc. |
836,200 |
$ 50,264 |
|
Hotels, Restaurants & Leisure - 2.8% |
|||
Carnival Corp. unit |
2,606,900 |
150,157 |
|
Harrah's Entertainment, Inc. (d) |
1,986,700 |
125,639 |
|
Marriott International, Inc. Class A |
2,930,700 |
185,162 |
|
McDonald's Corp. |
6,369,700 |
206,315 |
|
MGM MIRAGE (a) |
1,726,728 |
123,996 |
|
Starbucks Corp. (a) |
1,441,206 |
77,825 |
|
|
869,094 |
||
Household Durables - 0.0% |
|||
D.R. Horton, Inc. |
196,800 |
7,829 |
|
Media - 5.0% |
|||
Arbitron, Inc. (a) |
492,700 |
20,151 |
|
Clear Channel Communications, Inc. |
1,191,700 |
38,647 |
|
Comcast Corp. Class A (special) (a) |
2,274,298 |
71,891 |
|
E.W. Scripps Co. Class A |
744,600 |
34,520 |
|
EchoStar Communications Corp. Class A |
6,366,445 |
194,240 |
|
Gannett Co., Inc. |
1,503,800 |
120,364 |
|
News Corp. Class B |
6,790,900 |
119,384 |
|
Omnicom Group, Inc. |
5,175,700 |
439,365 |
|
Time Warner, Inc. (a) |
5,069,146 |
91,245 |
|
Tribune Co. |
851,400 |
34,039 |
|
Univision Communications, Inc. Class A (a) |
2,707,900 |
73,953 |
|
Viacom, Inc. Class B (non-vtg.) |
4,003,047 |
149,474 |
|
Walt Disney Co. |
6,603,800 |
189,067 |
|
|
1,576,340 |
||
Multiline Retail - 0.4% |
|||
Kohl's Corp. (a) |
1,147,600 |
53,949 |
|
Target Corp. |
1,524,800 |
77,414 |
|
|
131,363 |
||
Specialty Retail - 1.9% |
|||
Home Depot, Inc. |
11,371,450 |
469,186 |
|
Staples, Inc. |
3,886,100 |
127,231 |
|
|
596,417 |
||
Textiles, Apparel & Luxury Goods - 0.3% |
|||
NIKE, Inc. Class B |
885,900 |
76,746 |
|
TOTAL CONSUMER DISCRETIONARY |
3,308,053 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
CONSUMER STAPLES - 12.4% |
|||
Beverages - 1.9% |
|||
Anheuser-Busch Companies, Inc. |
1,102,700 |
$ 54,231 |
|
PepsiCo, Inc. |
5,630,507 |
302,358 |
|
The Coca-Cola Co. |
5,397,600 |
223,946 |
|
|
580,535 |
||
Food & Staples Retailing - 4.3% |
|||
Costco Wholesale Corp. |
582,000 |
27,511 |
|
Safeway, Inc. (a) |
3,345,030 |
63,054 |
|
Sysco Corp. |
5,913,600 |
206,799 |
|
Wal-Mart Stores, Inc. |
12,657,300 |
663,243 |
|
Walgreen Co. |
8,535,000 |
363,676 |
|
Whole Foods Market, Inc. |
221,120 |
19,773 |
|
|
1,344,056 |
||
Food Products - 0.4% |
|||
General Mills, Inc. |
39,100 |
2,072 |
|
Kellogg Co. |
1,451,500 |
64,795 |
|
McCormick & Co., Inc. (non-vtg.) |
1,768,600 |
65,739 |
|
|
132,606 |
||
Household Products - 2.4% |
|||
Colgate-Palmolive Co. |
3,355,600 |
176,303 |
|
Kimberly-Clark Corp. |
2,711,400 |
177,624 |
|
Procter & Gamble Co. |
7,303,482 |
388,764 |
|
|
742,691 |
||
Personal Products - 1.2% |
|||
Avon Products, Inc. |
1,086,500 |
45,872 |
|
Gillette Co. |
6,831,200 |
346,478 |
|
|
392,350 |
||
Tobacco - 2.2% |
|||
Altria Group, Inc. |
9,897,100 |
631,732 |
|
UST, Inc. |
975,000 |
49,394 |
|
|
681,126 |
||
TOTAL CONSUMER STAPLES |
3,873,364 |
||
ENERGY - 6.3% |
|||
Energy Equipment & Services - 0.3% |
|||
Halliburton Co. |
473,000 |
19,454 |
|
Schlumberger Ltd. (NY Shares) |
983,500 |
66,917 |
|
|
86,371 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
ENERGY - continued |
|||
Oil & Gas - 6.0% |
|||
Apache Corp. |
1,585,420 |
$ 86,279 |
|
BP PLC sponsored ADR |
5,706,000 |
340,192 |
|
ChevronTexaco Corp. |
5,588,820 |
304,032 |
|
Exxon Mobil Corp. |
22,142,594 |
1,142,558 |
|
|
1,873,061 |
||
TOTAL ENERGY |
1,959,432 |
||
FINANCIALS - 19.9% |
|||
Capital Markets - 2.6% |
|||
Bank of New York Co., Inc. |
1,427,100 |
42,399 |
|
Goldman Sachs Group, Inc. |
1,455,780 |
157,006 |
|
Merrill Lynch & Co., Inc. |
4,805,300 |
288,654 |
|
Morgan Stanley |
4,972,900 |
278,283 |
|
Northern Trust Corp. |
989,100 |
43,164 |
|
|
809,506 |
||
Commercial Banks - 3.9% |
|||
Bank of America Corp. |
11,987,738 |
555,871 |
|
Wachovia Corp. |
3,124,213 |
171,363 |
|
Wells Fargo & Co. |
7,887,400 |
483,498 |
|
|
1,210,732 |
||
Consumer Finance - 5.0% |
|||
American Express Co. |
4,511,490 |
240,688 |
|
Capital One Financial Corp. |
1,008,340 |
78,933 |
|
SLM Corp. (e) |
25,048,630 |
1,257,191 |
|
|
1,576,812 |
||
Diversified Financial Services - 2.3% |
|||
Citigroup, Inc. |
12,323,438 |
604,465 |
|
J.P. Morgan Chase & Co. |
3,641,592 |
135,941 |
|
|
740,406 |
||
Insurance - 2.9% |
|||
AFLAC, Inc. |
2,352,800 |
92,959 |
|
Allstate Corp. |
160,400 |
8,091 |
|
American International Group, Inc. |
9,611,610 |
637,154 |
|
MBIA, Inc. |
2,738,100 |
163,574 |
|
|
901,778 |
||
Real Estate - 1.3% |
|||
Apartment Investment & Management Co. Class A |
989,100 |
35,509 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
FINANCIALS - continued |
|||
Real Estate - continued |
|||
Equity Lifestyle Properties, Inc. (e) |
1,466,000 |
$ 50,254 |
|
Equity Office Properties Trust |
2,995,790 |
83,822 |
|
Equity Residential (SBI) |
5,129,870 |
161,796 |
|
Simon Property Group, Inc. |
625,400 |
37,086 |
|
Vornado Realty Trust |
575,700 |
39,804 |
|
|
408,271 |
||
Thrifts & Mortgage Finance - 1.9% |
|||
Fannie Mae |
6,078,120 |
392,525 |
|
Freddie Mac |
1,170,000 |
76,389 |
|
Golden West Financial Corp., Delaware |
1,788,200 |
115,553 |
|
|
584,467 |
||
TOTAL FINANCIALS |
6,231,972 |
||
HEALTH CARE - 13.6% |
|||
Biotechnology - 0.6% |
|||
Amgen, Inc. (a) |
757,200 |
47,128 |
|
Biogen Idec, Inc. (a) |
1,649,002 |
107,119 |
|
Protein Design Labs, Inc. (a) |
1,200,000 |
24,204 |
|
|
178,451 |
||
Health Care Equipment & Supplies - 2.9% |
|||
Alcon, Inc. |
2,151,750 |
170,419 |
|
Baxter International, Inc. |
1,193,600 |
40,296 |
|
Becton, Dickinson & Co. |
2,105,320 |
119,266 |
|
Boston Scientific Corp. (a) |
2,281,340 |
75,421 |
|
C.R. Bard, Inc. |
1,605,320 |
108,841 |
|
Medtronic, Inc. |
3,993,390 |
209,613 |
|
St. Jude Medical, Inc. (a) |
2,678,640 |
105,217 |
|
Stryker Corp. |
875,200 |
43,007 |
|
Zimmer Holdings, Inc. (a) |
459,733 |
36,250 |
|
|
908,330 |
||
Health Care Providers & Services - 3.1% |
|||
Aetna, Inc. |
418,160 |
53,127 |
|
IMS Health, Inc. |
7,444,919 |
174,062 |
|
UnitedHealth Group, Inc. |
8,437,700 |
750,112 |
|
|
977,301 |
||
Pharmaceuticals - 7.0% |
|||
Abbott Laboratories |
5,313,300 |
239,205 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
HEALTH CARE - continued |
|||
Pharmaceuticals - continued |
|||
Allergan, Inc. |
955,100 |
$ 72,540 |
|
Altana AG sponsored ADR (d) |
590,300 |
34,680 |
|
AstraZeneca PLC sponsored ADR |
253,800 |
9,543 |
|
Elan Corp. PLC sponsored ADR (a) |
1,378,800 |
37,131 |
|
Eli Lilly & Co. |
1,263,402 |
68,527 |
|
GlaxoSmithKline PLC sponsored ADR |
1,673,030 |
74,567 |
|
Johnson & Johnson |
7,108,600 |
459,926 |
|
Merck & Co., Inc. |
1,629,500 |
45,707 |
|
Novartis AG sponsored ADR |
3,419,850 |
163,742 |
|
Novo Nordisk AS ADR |
639,500 |
34,181 |
|
Pfizer, Inc. |
28,518,869 |
689,016 |
|
Roche Holding AG (participation certificate) |
1,155,800 |
123,070 |
|
Sepracor, Inc. (a) |
275,400 |
15,747 |
|
Wyeth |
3,336,700 |
132,233 |
|
|
2,199,815 |
||
TOTAL HEALTH CARE |
4,263,897 |
||
INDUSTRIALS - 12.0% |
|||
Aerospace & Defense - 2.8% |
|||
Honeywell International, Inc. |
3,826,200 |
137,667 |
|
Lockheed Martin Corp. |
3,489,700 |
201,740 |
|
Northrop Grumman Corp. |
1,934,545 |
100,364 |
|
Raytheon Co. |
2,182,800 |
81,637 |
|
The Boeing Co. |
3,123,000 |
158,024 |
|
United Technologies Corp. |
1,891,100 |
190,396 |
|
|
869,828 |
||
Air Freight & Logistics - 0.5% |
|||
United Parcel Service, Inc. Class B |
2,011,683 |
150,232 |
|
Airlines - 0.6% |
|||
Southwest Airlines Co. |
12,696,293 |
183,842 |
|
Commercial Services & Supplies - 1.1% |
|||
Apollo Group, Inc. Class A (a) |
1,524,800 |
119,224 |
|
Aramark Corp. Class B |
446,800 |
11,612 |
|
Cendant Corp. |
735,000 |
17,309 |
|
Cintas Corp. |
1,752,327 |
76,226 |
|
Waste Management, Inc. |
4,031,500 |
116,914 |
|
|
341,285 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 0.2% |
|||
Emerson Electric Co. |
1,183,400 |
$ 79,572 |
|
Industrial Conglomerates - 6.0% |
|||
3M Co. |
2,165,780 |
182,705 |
|
General Electric Co. |
34,802,200 |
1,257,404 |
|
Siemens AG sponsored ADR |
1,155,860 |
91,787 |
|
Tyco International Ltd. |
9,672,350 |
349,559 |
|
|
1,881,455 |
||
Machinery - 0.6% |
|||
Caterpillar, Inc. |
346,620 |
30,884 |
|
Dover Corp. |
859,300 |
32,911 |
|
Eaton Corp. |
393,500 |
26,754 |
|
Illinois Tool Works, Inc. |
746,800 |
64,957 |
|
Ingersoll-Rand Co. Ltd. Class A |
354,800 |
26,390 |
|
|
181,896 |
||
Road & Rail - 0.2% |
|||
Burlington Northern Santa Fe Corp. |
1,313,200 |
63,270 |
|
TOTAL INDUSTRIALS |
3,751,380 |
||
INFORMATION TECHNOLOGY - 10.1% |
|||
Communications Equipment - 1.1% |
|||
Cisco Systems, Inc. (a) |
17,360,400 |
313,182 |
|
QUALCOMM, Inc. |
989,100 |
36,834 |
|
|
350,016 |
||
Computers & Peripherals - 3.0% |
|||
Dell, Inc. (a) |
8,859,200 |
369,960 |
|
EMC Corp. (a) |
6,152,700 |
80,600 |
|
International Business Machines Corp. |
4,478,700 |
418,400 |
|
Lexmark International, Inc. Class A (a) |
911,670 |
75,988 |
|
|
944,948 |
||
Electronic Equipment & Instruments - 0.2% |
|||
Flextronics International Ltd. (a) |
4,430,500 |
62,692 |
|
Internet Software & Services - 0.3% |
|||
Yahoo!, Inc. (a) |
2,581,670 |
90,901 |
|
IT Services - 0.8% |
|||
Accenture Ltd. Class A (a) |
520,400 |
13,556 |
|
Automatic Data Processing, Inc. |
1,759,900 |
76,520 |
|
DST Systems, Inc. (a) |
973,600 |
47,200 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
IT Services - continued |
|||
First Data Corp. |
1,169,765 |
$ 47,656 |
|
Paychex, Inc. |
1,457,000 |
44,424 |
|
|
229,356 |
||
Office Electronics - 0.1% |
|||
Xerox Corp. (a) |
1,672,500 |
26,559 |
|
Semiconductors & Semiconductor Equipment - 1.0% |
|||
Analog Devices, Inc. |
616,500 |
22,126 |
|
Intel Corp. |
11,644,000 |
261,408 |
|
Teradyne, Inc. (a) |
2,235,000 |
31,357 |
|
|
314,891 |
||
Software - 3.6% |
|||
Microsoft Corp. |
38,065,600 |
1,000,364 |
|
Oracle Corp. (a) |
7,000,872 |
96,402 |
|
Symantec Corp. (a) |
491,800 |
11,484 |
|
VERITAS Software Corp. (a) |
491,800 |
12,649 |
|
|
1,120,899 |
||
TOTAL INFORMATION TECHNOLOGY |
3,140,262 |
||
MATERIALS - 2.0% |
|||
Chemicals - 1.7% |
|||
BASF AG sponsored ADR |
565,600 |
38,806 |
|
Dow Chemical Co. |
2,367,870 |
117,683 |
|
E.I. du Pont de Nemours & Co. |
741,400 |
35,261 |
|
Monsanto Co. |
2,027,400 |
109,743 |
|
Praxair, Inc. |
5,115,100 |
220,717 |
|
|
522,210 |
||
Metals & Mining - 0.1% |
|||
Alcoa, Inc. |
684,300 |
20,194 |
|
Paper & Forest Products - 0.2% |
|||
International Paper Co. |
2,044,700 |
80,050 |
|
TOTAL MATERIALS |
622,454 |
||
TELECOMMUNICATION SERVICES - 6.9% |
|||
Diversified Telecommunication Services - 6.6% |
|||
ALLTEL Corp. |
1,659,150 |
91,320 |
|
BellSouth Corp. |
16,624,700 |
436,232 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
TELECOMMUNICATION SERVICES - continued |
|||
Diversified Telecommunication Services - continued |
|||
SBC Communications, Inc. |
30,749,200 |
$ 730,601 |
|
Verizon Communications, Inc. |
22,536,240 |
802,065 |
|
|
2,060,218 |
||
Wireless Telecommunication Services - 0.3% |
|||
Crown Castle International Corp. (a) |
1,475,700 |
24,201 |
|
Vodafone Group PLC sponsored ADR |
3,053,000 |
79,317 |
|
|
103,518 |
||
TOTAL TELECOMMUNICATION SERVICES |
2,163,736 |
||
UTILITIES - 1.0% |
|||
Electric Utilities - 1.0% |
|||
Entergy Corp. |
2,224,000 |
154,612 |
|
Exelon Corp. |
1,585,750 |
70,169 |
|
Southern Co. |
2,259,000 |
76,286 |
|
|
301,067 |
||
TOTAL COMMON STOCKS (Cost $18,815,770) |
29,615,617 |
||
Preferred Stocks - 0.7% |
|||
|
|
|
|
Convertible Preferred Stocks - 0.6% |
|||
UTILITIES - 0.6% |
|||
Electric Utilities - 0.5% |
|||
FPL Group, Inc.: |
|
|
|
8.00% |
83,100 |
5,094 |
|
8.50% |
2,242,600 |
140,252 |
|
|
145,346 |
||
Gas Utilities - 0.1% |
|||
KeySpan Corp. 8.75% MEDS |
615,600 |
32,307 |
|
TOTAL UTILITIES |
177,653 |
||
Preferred Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
Nonconvertible Preferred Stocks - 0.1% |
|||
FINANCIALS - 0.1% |
|||
Thrifts & Mortgage Finance - 0.1% |
|||
Fannie Mae 7.00% |
656,400 |
$ 37,251 |
|
TOTAL PREFERRED STOCKS (Cost $189,170) |
214,904 |
||
Money Market Funds - 4.6% |
|||
|
|
|
|
Fidelity Cash Central Fund, 2.31% (b) |
1,438,048,139 |
1,438,048 |
|
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c) |
4,489,500 |
4,490 |
|
TOTAL MONEY MARKET FUNDS (Cost $1,442,538) |
1,442,538 |
||
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $20,447,478) |
31,273,059 |
||
NET OTHER ASSETS - (0.1)% |
(16,132) |
||
NET ASSETS - 100% |
$ 31,256,927 |
Security Type Abbreviations |
||
MEDS |
- |
Mandatorily Exchangeable Debt Securities |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
Other Information |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Companies which are affiliates of the fund at period-end are noted in the fund's Schedule of Investments. Transactions during the period with companies which are or were affiliates are as follows: |
Affiliates |
Value, |
Purchases |
Sales |
Dividend |
Value, |
Equity Lifestyle Properties, Inc. (formerly Manufactured Home Communities, Inc.) |
$ 46,458 |
$ - |
$ - |
$ 4 |
$ 50,254 |
SLM Corp. |
1,024,258 |
26,601 |
122,708 |
10,064 |
1,257,191 |
TOTALS |
$ 1,070,716 |
$ 26,601 |
$ 122,708 |
$ 10,068 |
$ 1,307,445 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) |
January 31, 2005 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $4,450) (cost $20,447,478) - See accompanying schedule |
|
$ 31,273,059 |
Receivable for investments sold |
|
101,805 |
Receivable for fund shares sold |
|
27,587 |
Dividends receivable |
|
35,856 |
Interest receivable |
|
2,597 |
Prepaid expenses |
|
106 |
Other affiliated receivables |
|
172 |
Other receivables |
|
1,099 |
Total assets |
|
31,442,281 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 130,027 |
|
Payable for fund shares redeemed |
32,056 |
|
Accrued management fee |
12,347 |
|
Other affiliated payables |
6,225 |
|
Other payables and accrued expenses |
209 |
|
Collateral on securities loaned, at value |
4,490 |
|
Total liabilities |
|
185,354 |
|
|
|
Net Assets |
|
$ 31,256,927 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 20,172,500 |
Undistributed net investment income |
|
25,441 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
233,405 |
Net unrealized appreciation (depreciation) on investments |
|
10,825,581 |
Net Assets, for 836,748 shares outstanding |
|
$ 31,256,927 |
Net Asset Value, offering price and redemption price per share ($31,256,927 ÷ 836,748 shares) |
|
$ 37.36 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
|
|
|
|
Investment Income |
|
|
Dividends (including $10,068 received from affiliated issuers) |
|
$ 278,471 |
Special Dividends |
|
110,357 |
Interest |
|
13,411 |
Security lending |
|
161 |
Total income |
|
402,400 |
|
|
|
Expenses |
|
|
Management fee |
$ 72,832 |
|
Transfer agent fees |
31,780 |
|
Accounting and security lending fees |
973 |
|
Non-interested trustees' compensation |
89 |
|
Appreciation in deferred trustee compensation account |
34 |
|
Custodian fees and expenses |
162 |
|
Registration fees |
52 |
|
Audit |
105 |
|
Legal |
38 |
|
Miscellaneous |
88 |
|
Total expenses before reductions |
106,153 |
|
Expense reductions |
(1,358) |
104,795 |
Net investment income (loss) |
|
297,605 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities (Including realized gain (loss) of $62,046 from affiliated issuers) |
459,996 |
|
Foreign currency transactions |
(77) |
|
Total net realized gain (loss) |
|
459,919 |
Change in net unrealized appreciation (depreciation) on investment securities |
|
1,423,214 |
Net gain (loss) |
|
1,883,133 |
Net increase (decrease) in net assets resulting from operations |
|
$ 2,180,738 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 297,605 |
$ 338,806 |
Net realized gain (loss) |
459,919 |
1,042,653 |
Change in net unrealized appreciation (depreciation) |
1,423,214 |
1,223,009 |
Net increase (decrease) in net assets resulting |
2,180,738 |
2,604,468 |
Distributions to shareholders from net investment income |
(308,248) |
(349,784) |
Distributions to shareholders from net realized gain |
(283,191) |
- |
Total distributions |
(591,439) |
(349,784) |
Share transactions |
1,690,232 |
3,793,282 |
Reinvestment of distributions |
575,264 |
338,999 |
Cost of shares redeemed |
(2,373,628) |
(4,874,618) |
Net increase (decrease) in net assets resulting from share transactions |
(108,132) |
(742,337) |
Total increase (decrease) in net assets |
1,481,167 |
1,512,347 |
|
|
|
Net Assets |
|
|
Beginning of period |
29,775,760 |
28,263,413 |
End of period (including undistributed net investment income of $25,441 and undistributed net investment income of $36,084, respectively) |
$ 31,256,927 |
$ 29,775,760 |
Other Information Shares |
|
|
Sold |
45,922 |
108,237 |
Issued in reinvestment of distributions |
15,515 |
9,611 |
Redeemed |
(64,425) |
(138,812) |
Net increase (decrease) |
(2,988) |
(20,964) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended January 31, 2005 |
Years ended July 31, |
||||
|
(Unaudited) |
2004 |
2003 |
2002 |
2001 |
2000 |
Selected Per-Share Data |
||||||
Net asset value, beginning of period |
$ 35.46 |
$ 32.84 |
$ 31.61 |
$ 39.10 |
$ 46.83 |
$ 47.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D |
.36E |
.40 |
.40 |
.34 |
.39 |
.38 |
Net realized and unrealized gain (loss) |
2.25 |
2.63 |
1.20 |
(7.12) |
(3.83) |
2.47 |
Total from investment operations |
2.61 |
3.03 |
1.60 |
(6.78) |
(3.44) |
2.85 |
Distributions from net investment income |
(.37) |
(.41) |
(.37) |
(.33) |
(.38) |
(.39) |
Distributions from net realized gain |
(.34) |
- |
- |
(.38) |
(3.91) |
(2.90) |
Total distributions |
(.71) |
(.41) |
(.37) |
(.71) |
(4.29) |
(3.29) |
Net asset value, end of period |
$ 37.36 |
$ 35.46 |
$ 32.84 |
$ 31.61 |
$ 39.10 |
$ 46.83 |
Total ReturnB,C |
7.39% |
9.24% |
5.15% |
(17.56)% |
(8.25)% |
6.34% |
Ratios to Average Net AssetsF |
||||||
Expenses before expense reductions |
.69% A |
.70% |
.73% |
.69% |
.68% |
.67% |
Expenses net of voluntary waivers, if any |
.69% A |
.70% |
.73% |
.69% |
.68% |
.67% |
Expenses net of all reductions |
.68% A |
.69% |
.71% |
.68% |
.66% |
.66% |
Net investment income (loss) |
1.94% A, E |
1.13% |
1.29% |
.94% |
.94% |
.82% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 31,257 |
$ 29,776 |
$ 28,263 |
$ 27,849 |
$ 36,099 |
$ 41,440 |
Portfolio turnover rate |
21% A |
30% |
33% |
36% |
46% |
41% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.13 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 1.22%.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Growth & Income Portfolio (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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.
Semiannual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to futures transactions, foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 11,287,178 |
|
Unrealized depreciation |
(486,519) |
|
Net unrealized appreciation (depreciation) |
$ 10,800,659 |
|
Cost for federal income tax purposes |
$ 20,472,400 |
|
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $3,123,249 and $3,997,538, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the fund's average net assets and a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .47% of the fund's average net assets.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .21% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $13,064 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $119 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $1,335 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $1 and $22, respectively.
8. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
Nevada
2225 Village Walk Drive
Henderson, NV
Semiannual Report
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
GAI-USAN-0305
1.789285.101
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
5 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
15 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
19 |
Notes to the financial statements. |
|
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,058.90 |
$ 3.43 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,021.88 |
$ 3.36 |
* Expenses are equal to the Fund's annualized expense ratio of .66%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Microsoft Corp. |
4.3 |
4.8 |
General Electric Co. |
4.0 |
3.8 |
Johnson & Johnson |
2.7 |
2.3 |
Pfizer, Inc. |
2.4 |
3.7 |
Intel Corp. |
2.3 |
2.4 |
American International Group, Inc. |
2.2 |
2.4 |
Wal-Mart Stores, Inc. |
2.0 |
1.9 |
Dell, Inc. |
2.0 |
1.7 |
Procter & Gamble Co. |
1.9 |
1.9 |
Cisco Systems, Inc. |
1.8 |
2.4 |
|
25.6 |
|
Top Five Market Sectors as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
23.5 |
23.8 |
Health Care |
19.7 |
20.3 |
Financials |
13.9 |
13.4 |
Industrials |
12.1 |
11.4 |
Consumer Staples |
11.0 |
11.7 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
As of July 31, 2004** |
||||||
![]() |
Stocks 99.4% |
|
![]() |
Stocks 97.9% |
|
||
![]() |
Short-Term |
|
![]() |
Short-Term |
|
||
* Foreign investments |
4.6% |
|
** Foreign investments |
4.3% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 99.4% |
|||
Shares |
Value (Note 1) (000s) |
||
CONSUMER DISCRETIONARY - 10.8% |
|||
Hotels, Restaurants & Leisure - 2.0% |
|||
Brinker International, Inc. (a) |
2,185,700 |
$ 82,204 |
|
Carnival Corp. unit |
2,617,000 |
150,739 |
|
McDonald's Corp. |
4,470,000 |
144,783 |
|
Royal Caribbean Cruises Ltd. |
1,399,800 |
74,189 |
|
|
451,915 |
||
Household Durables - 0.1% |
|||
Leggett & Platt, Inc. |
960,800 |
27,383 |
|
Internet & Catalog Retail - 0.8% |
|||
Amazon.com, Inc. (a) |
1,187,900 |
51,341 |
|
eBay, Inc. (a) |
1,471,100 |
119,895 |
|
|
171,236 |
||
Media - 3.9% |
|||
Clear Channel Communications, Inc. |
1,377,500 |
44,672 |
|
EchoStar Communications Corp. Class A |
1,538,934 |
46,953 |
|
Fox Entertainment Group, Inc. Class A (a) |
1,810,900 |
60,937 |
|
News Corp. Class B (d) |
5,088,800 |
89,461 |
|
Omnicom Group, Inc. |
1,675,500 |
142,233 |
|
Time Warner, Inc. (a) |
4,777,332 |
85,992 |
|
Tribune Co. |
929,000 |
37,141 |
|
Univision Communications, Inc. Class A (a) |
3,401,100 |
92,884 |
|
Viacom, Inc. Class B (non-vtg.) |
1,380,596 |
51,551 |
|
Walt Disney Co. |
6,413,100 |
183,607 |
|
XM Satellite Radio Holdings, Inc. Class A (a) |
1,795,300 |
57,288 |
|
|
892,719 |
||
Multiline Retail - 0.4% |
|||
Kohl's Corp. (a) |
865,300 |
40,678 |
|
Target Corp. |
994,200 |
50,476 |
|
|
91,154 |
||
Specialty Retail - 2.9% |
|||
Home Depot, Inc. |
9,738,400 |
401,806 |
|
Lowe's Companies, Inc. |
1,627,600 |
92,757 |
|
Ross Stores, Inc. |
1,959,000 |
56,067 |
|
Staples, Inc. |
3,450,800 |
112,979 |
|
|
663,609 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - 0.7% |
|||
Liz Claiborne, Inc. |
1,084,600 |
$ 45,488 |
|
NIKE, Inc. Class B |
1,423,200 |
123,292 |
|
|
168,780 |
||
TOTAL CONSUMER DISCRETIONARY |
2,466,796 |
||
CONSUMER STAPLES - 11.0% |
|||
Beverages - 1.9% |
|||
PepsiCo, Inc. |
6,609,662 |
354,939 |
|
The Coca-Cola Co. |
2,041,200 |
84,689 |
|
|
439,628 |
||
Food & Staples Retailing - 3.1% |
|||
Costco Wholesale Corp. |
470,400 |
22,236 |
|
CVS Corp. |
1,613,100 |
74,767 |
|
Sysco Corp. |
1,991,700 |
69,650 |
|
Wal-Mart Stores, Inc. |
8,542,455 |
447,625 |
|
Walgreen Co. |
2,322,700 |
98,970 |
|
|
713,248 |
||
Food Products - 0.3% |
|||
Bunge Ltd. |
1,241,000 |
70,166 |
|
Household Products - 2.5% |
|||
Colgate-Palmolive Co. |
2,292,200 |
120,432 |
|
Procter & Gamble Co. |
8,236,980 |
438,454 |
|
|
558,886 |
||
Personal Products - 2.3% |
|||
Avon Products, Inc. |
2,936,600 |
123,983 |
|
Estee Lauder Companies, Inc. Class A |
1,277,000 |
57,644 |
|
Gillette Co. |
6,850,000 |
347,432 |
|
|
529,059 |
||
Tobacco - 0.9% |
|||
Altria Group, Inc. |
3,144,800 |
200,733 |
|
TOTAL CONSUMER STAPLES |
2,511,720 |
||
ENERGY - 5.4% |
|||
Energy Equipment & Services - 3.5% |
|||
Baker Hughes, Inc. |
3,702,100 |
160,301 |
|
BJ Services Co. |
1,960,300 |
94,192 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
ENERGY - continued |
|||
Energy Equipment & Services - continued |
|||
Halliburton Co. |
3,283,500 |
$ 135,050 |
|
Nabors Industries Ltd. (a) |
1,889,100 |
95,211 |
|
Schlumberger Ltd. (NY Shares) |
2,500,300 |
170,120 |
|
Transocean, Inc. (a) |
1,697,100 |
74,672 |
|
Weatherford International Ltd. (a) |
1,250,500 |
67,865 |
|
|
797,411 |
||
Oil & Gas - 1.9% |
|||
Burlington Resources, Inc. |
406,200 |
17,755 |
|
ChevronTexaco Corp. |
1,851,200 |
100,705 |
|
Exxon Mobil Corp. |
3,436,400 |
177,318 |
|
Total SA Series B |
593,000 |
127,554 |
|
|
423,332 |
||
TOTAL ENERGY |
1,220,743 |
||
FINANCIALS - 13.9% |
|||
Capital Markets - 2.2% |
|||
Goldman Sachs Group, Inc. |
640,600 |
69,089 |
|
Lehman Brothers Holdings, Inc. |
1,428,700 |
130,283 |
|
Merrill Lynch & Co., Inc. |
1,970,800 |
118,386 |
|
Morgan Stanley |
2,558,800 |
143,190 |
|
State Street Corp. |
848,800 |
38,035 |
|
|
498,983 |
||
Commercial Banks - 2.2% |
|||
Bank of America Corp. |
5,573,600 |
258,448 |
|
Wachovia Corp. |
2,264,700 |
124,219 |
|
Wells Fargo & Co. |
1,955,400 |
119,866 |
|
|
502,533 |
||
Consumer Finance - 3.0% |
|||
American Express Co. |
5,217,529 |
278,355 |
|
Capital One Financial Corp. |
1,351,000 |
105,756 |
|
MBNA Corp. |
6,741,200 |
179,181 |
|
SLM Corp. |
2,178,800 |
109,354 |
|
|
672,646 |
||
Diversified Financial Services - 1.3% |
|||
Citigroup, Inc. |
6,071,354 |
297,800 |
|
Insurance - 3.2% |
|||
AFLAC, Inc. |
1,506,400 |
59,518 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
AMBAC Financial Group, Inc. |
1,493,200 |
$ 114,797 |
|
American International Group, Inc. |
7,428,955 |
492,465 |
|
MBIA, Inc. |
1,151,650 |
68,800 |
|
|
735,580 |
||
Thrifts & Mortgage Finance - 2.0% |
|||
Fannie Mae |
4,621,100 |
298,431 |
|
Freddie Mac |
252,100 |
16,460 |
|
Golden West Financial Corp., Delaware |
1,971,200 |
127,379 |
|
|
442,270 |
||
TOTAL FINANCIALS |
3,149,812 |
||
HEALTH CARE - 19.7% |
|||
Biotechnology - 2.6% |
|||
Alkermes, Inc. (a) |
632,500 |
8,014 |
|
Amgen, Inc. (a) |
3,598,500 |
223,971 |
|
Biogen Idec, Inc. (a) |
2,051,250 |
133,249 |
|
Cephalon, Inc. (a) |
843,000 |
41,476 |
|
Genentech, Inc. (a) |
3,286,400 |
156,794 |
|
Millennium Pharmaceuticals, Inc. (a) |
2,533,900 |
23,337 |
|
Protein Design Labs, Inc. (a) |
832,100 |
16,783 |
|
|
603,624 |
||
Health Care Equipment & Supplies - 4.8% |
|||
Baxter International, Inc. |
2,800,400 |
94,542 |
|
Becton, Dickinson & Co. |
1,634,600 |
92,600 |
|
Boston Scientific Corp. (a) |
1,763,980 |
58,317 |
|
Cytyc Corp. (a) |
3,088,100 |
77,357 |
|
Fisher Scientific International, Inc. (a) |
1,372,200 |
86,654 |
|
Guidant Corp. |
1,364,100 |
98,884 |
|
Medtronic, Inc. |
5,649,600 |
296,548 |
|
Millipore Corp. (a) |
1,156,100 |
50,325 |
|
St. Jude Medical, Inc. (a) |
3,586,600 |
140,882 |
|
Waters Corp. (a) |
2,187,400 |
107,358 |
|
|
1,103,467 |
||
Health Care Providers & Services - 2.5% |
|||
Cardinal Health, Inc. |
1,422,675 |
80,125 |
|
Health Management Associates, Inc. Class A |
1,226,100 |
27,072 |
|
Laboratory Corp. of America Holdings (a) |
1,348,700 |
64,535 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Quest Diagnostics, Inc. |
683,600 |
$ 65,147 |
|
UnitedHealth Group, Inc. |
3,666,800 |
325,979 |
|
|
562,858 |
||
Pharmaceuticals - 9.8% |
|||
Abbott Laboratories |
5,162,700 |
232,425 |
|
Allergan, Inc. |
1,079,200 |
81,965 |
|
Barr Pharmaceuticals, Inc. (a) |
1,828,200 |
86,931 |
|
Eli Lilly & Co. |
2,090,200 |
113,372 |
|
Johnson & Johnson |
9,503,504 |
614,877 |
|
Merck & Co., Inc. |
2,973,300 |
83,401 |
|
Pfizer, Inc. |
22,987,400 |
555,376 |
|
Schering-Plough Corp. |
8,462,500 |
157,064 |
|
Watson Pharmaceuticals, Inc. (a) |
208,900 |
6,231 |
|
Wyeth |
7,232,200 |
286,612 |
|
|
2,218,254 |
||
TOTAL HEALTH CARE |
4,488,203 |
||
INDUSTRIALS - 12.1% |
|||
Aerospace & Defense - 2.4% |
|||
EADS NV (d) |
4,900,000 |
149,767 |
|
Honeywell International, Inc. |
2,125,100 |
76,461 |
|
Northrop Grumman Corp. |
2,323,000 |
120,517 |
|
The Boeing Co. |
3,312,100 |
167,592 |
|
United Technologies Corp. |
426,600 |
42,950 |
|
|
557,287 |
||
Air Freight & Logistics - 1.1% |
|||
FedEx Corp. |
427,300 |
40,871 |
|
Ryder System, Inc. |
428,700 |
19,527 |
|
United Parcel Service, Inc. Class B |
2,569,100 |
191,860 |
|
|
252,258 |
||
Airlines - 0.3% |
|||
Southwest Airlines Co. |
4,593,000 |
66,507 |
|
Building Products - 0.3% |
|||
Masco Corp. |
1,810,200 |
66,615 |
|
Commercial Services & Supplies - 1.1% |
|||
Apollo Group, Inc. Class A (a) |
768,800 |
60,112 |
|
Avery Dennison Corp. |
402,400 |
24,180 |
|
Career Education Corp. (a) |
946,900 |
38,151 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INDUSTRIALS - continued |
|||
Commercial Services & Supplies - continued |
|||
Cintas Corp. |
1,125,500 |
$ 48,959 |
|
Robert Half International, Inc. |
2,557,900 |
77,607 |
|
|
249,009 |
||
Construction & Engineering - 0.3% |
|||
Fluor Corp. |
1,316,000 |
70,459 |
|
Industrial Conglomerates - 6.1% |
|||
3M Co. |
2,910,600 |
245,538 |
|
General Electric Co. |
25,118,400 |
907,528 |
|
Tyco International Ltd. |
6,169,500 |
222,966 |
|
|
1,376,032 |
||
Machinery - 0.5% |
|||
Danaher Corp. |
1,388,400 |
76,195 |
|
Ingersoll-Rand Co. Ltd. Class A |
589,750 |
43,866 |
|
|
120,061 |
||
TOTAL INDUSTRIALS |
2,758,228 |
||
INFORMATION TECHNOLOGY - 23.5% |
|||
Communications Equipment - 3.1% |
|||
Cisco Systems, Inc. (a) |
22,588,200 |
407,491 |
|
Juniper Networks, Inc. (a) |
1,918,400 |
48,209 |
|
QUALCOMM, Inc. |
6,184,400 |
230,307 |
|
Telefonaktiebolaget LM Ericsson ADR (a)(d) |
705,500 |
20,692 |
|
|
706,699 |
||
Computers & Peripherals - 4.6% |
|||
Dell, Inc. (a) |
10,688,700 |
446,360 |
|
EMC Corp. (a) |
11,206,300 |
146,803 |
|
International Business Machines Corp. |
4,236,200 |
395,746 |
|
Lexmark International, Inc. Class A (a) |
815,842 |
68,000 |
|
|
1,056,909 |
||
Electronic Equipment & Instruments - 0.7% |
|||
CDW Corp. |
1,109,000 |
64,877 |
|
Flextronics International Ltd. (a) |
5,942,500 |
84,086 |
|
|
148,963 |
||
Internet Software & Services - 1.3% |
|||
Google, Inc. Class A (sub. vtg.) |
424,800 |
83,104 |
|
Yahoo!, Inc. (a) |
6,114,064 |
215,276 |
|
|
298,380 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
IT Services - 1.6% |
|||
Affiliated Computer Services, Inc. Class A (a) |
1,531,900 |
$ 83,014 |
|
Automatic Data Processing, Inc. |
663,880 |
28,866 |
|
DST Systems, Inc. (a) |
1,526,600 |
74,010 |
|
First Data Corp. |
2,843,400 |
115,840 |
|
Paychex, Inc. |
2,059,920 |
62,807 |
|
|
364,537 |
||
Semiconductors & Semiconductor Equipment - 6.0% |
|||
Altera Corp. (a) |
2,978,400 |
57,185 |
|
Analog Devices, Inc. |
3,286,100 |
117,938 |
|
Applied Materials, Inc. (a) |
4,619,700 |
73,453 |
|
Intel Corp. |
23,646,840 |
530,872 |
|
Intersil Corp. Class A |
2,528,000 |
37,490 |
|
KLA-Tencor Corp. (a) |
2,175,800 |
100,631 |
|
Lam Research Corp. (a) |
1,286,400 |
34,424 |
|
Linear Technology Corp. |
1,506,160 |
56,842 |
|
Marvell Technology Group Ltd. (a) |
2,386,000 |
79,812 |
|
Microchip Technology, Inc. |
813,700 |
21,197 |
|
PMC-Sierra, Inc. (a) |
3,169,500 |
32,582 |
|
Teradyne, Inc. (a) |
1,680,900 |
23,583 |
|
Texas Instruments, Inc. |
5,878,500 |
136,440 |
|
Xilinx, Inc. |
1,883,400 |
54,976 |
|
|
1,357,425 |
||
Software - 6.2% |
|||
Adobe Systems, Inc. |
755,668 |
42,998 |
|
BEA Systems, Inc. (a) |
3,577,500 |
30,480 |
|
Cadence Design Systems, Inc. (a) |
1,926,600 |
25,682 |
|
McAfee, Inc. (a) |
1,766,500 |
45,664 |
|
Microsoft Corp. |
37,157,800 |
976,509 |
|
Oracle Corp. (a) |
10,391,000 |
143,084 |
|
Siebel Systems, Inc. (a) |
1,914,900 |
16,679 |
|
Symantec Corp. (a) |
1,278,600 |
29,855 |
|
Synopsys, Inc. (a) |
1,762,654 |
29,965 |
|
VERITAS Software Corp. (a) |
2,253,528 |
57,961 |
|
|
1,398,877 |
||
TOTAL INFORMATION TECHNOLOGY |
5,331,790 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) (000s) |
||
MATERIALS - 2.1% |
|||
Chemicals - 1.9% |
|||
Dow Chemical Co. |
3,130,200 |
$ 155,571 |
|
Monsanto Co. |
1,721,700 |
93,196 |
|
Potash Corp. of Saskatchewan |
797,200 |
64,718 |
|
Praxair, Inc. |
2,671,800 |
115,288 |
|
|
428,773 |
||
Containers & Packaging - 0.2% |
|||
Smurfit-Stone Container Corp. (a) |
2,825,716 |
42,499 |
|
TOTAL MATERIALS |
471,272 |
||
TELECOMMUNICATION SERVICES - 0.9% |
|||
Diversified Telecommunication Services - 0.3% |
|||
Verizon Communications, Inc. |
2,045,400 |
72,796 |
|
Wireless Telecommunication Services - 0.6% |
|||
Nextel Communications, Inc. Class A (a) |
4,561,200 |
130,861 |
|
TOTAL TELECOMMUNICATION SERVICES |
203,657 |
||
TOTAL COMMON STOCKS (Cost $18,474,883) |
22,602,221 |
||
Convertible Preferred Stocks - 0.0% |
|||
|
|
|
|
INFORMATION TECHNOLOGY - 0.0% |
|||
Communications Equipment - 0.0% |
|||
Chorum Technologies, Inc. Series E (a)(e) |
132,000 |
0 |
|
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,980) |
0 |
||
Money Market Funds - 1.3% |
|||
Shares |
Value (Note 1) |
||
Fidelity Cash Central Fund, 2.31% (b) |
138,307,139 |
$ 138,307 |
|
Fidelity Securities Lending Cash Central Fund, 2.29% (b)(c) |
144,577,000 |
144,577 |
|
TOTAL MONEY MARKET FUNDS (Cost $282,884) |
282,884 |
||
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $18,759,747) |
22,885,105 |
||
NET OTHER ASSETS - (0.7)% |
(156,329) |
||
NET ASSETS - 100% |
$ 22,728,776 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $0 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Chorum Technologies, Inc. Series E |
9/19/00 |
$ 2,276 |
Income Tax Information |
At July 31, 2004, the fund had a capital loss carryforward of approximately $2,889,394,000 of which $1,006,654,000 and $1,882,740,000 will expire on July 31, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) |
January 31, 2005 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $140,101) (cost $18,759,747) - See accompanying schedule |
|
$ 22,885,105 |
Receivable for investments sold |
|
37,641 |
Receivable for fund shares sold |
|
24,494 |
Dividends receivable |
|
9,390 |
Interest receivable |
|
440 |
Prepaid expenses |
|
79 |
Other affiliated receivables |
|
88 |
Other receivables |
|
600 |
Total assets |
|
22,957,837 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 25,906 |
|
Payable for fund shares redeemed |
45,644 |
|
Accrued management fee |
7,534 |
|
Other affiliated payables |
5,241 |
|
Other payables and accrued expenses |
159 |
|
Collateral on securities loaned, at value |
144,577 |
|
Total liabilities |
|
229,061 |
|
|
|
Net Assets |
|
$ 22,728,776 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 21,144,789 |
Undistributed net investment income |
|
233 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(2,541,603) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
4,125,357 |
Net Assets, for 559,625 shares outstanding |
|
$ 22,728,776 |
Net Asset Value, offering price and redemption price per share ($22,728,776 ÷ 559,625 shares) |
|
$ 40.61 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands |
Six months ended January 31, 2005 (Unaudited) |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 130,049 |
Special Dividends |
|
111,473 |
Interest |
|
3,737 |
Security lending |
|
315 |
Total income |
|
245,574 |
|
|
|
Expenses |
|
|
Management fee |
$ 64,850 |
|
Performance adjustment |
(19,569) |
|
Transfer agent fees |
28,031 |
|
Accounting and security lending fees |
878 |
|
Non-interested trustees' compensation |
66 |
|
Appreciation in deferred trustee compensation account |
9 |
|
Custodian fees and expenses |
175 |
|
Registration fees |
97 |
|
Audit |
73 |
|
Legal |
28 |
|
Miscellaneous |
102 |
|
Total expenses before reductions |
74,740 |
|
Expense reductions |
(1,127) |
73,613 |
Net investment income (loss) |
|
171,961 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
357,952 |
|
Foreign currency transactions |
47 |
|
Total net realized gain (loss) |
|
357,999 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
771,296 |
|
Assets and liabilities in foreign currencies |
(16) |
|
Total change in net unrealized appreciation (depreciation) |
|
771,280 |
Net gain (loss) |
|
1,129,279 |
Net increase (decrease) in net assets resulting from operations |
|
$ 1,301,240 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 171,961 |
$ 106,237 |
Net realized gain (loss) |
357,999 |
750,921 |
Change in net unrealized appreciation (depreciation) |
771,280 |
695,358 |
Net increase (decrease) in net assets resulting |
1,301,240 |
1,552,516 |
Distributions to shareholders from net investment income |
(220,167) |
(122,754) |
Share transactions |
2,048,238 |
4,701,393 |
Reinvestment of distributions |
214,432 |
119,640 |
Cost of shares redeemed |
(2,717,105) |
(4,084,178) |
Net increase (decrease) in net assets resulting from share transactions |
(454,435) |
736,855 |
Total increase (decrease) in net assets |
626,638 |
2,166,617 |
|
|
|
Net Assets |
|
|
Beginning of period |
22,102,138 |
19,935,521 |
End of period (including undistributed net investment income of $233 and undistributed net investment income of $48,439, respectively) |
$ 22,728,776 |
$ 22,102,138 |
Other Information Shares |
|
|
Sold |
51,229 |
120,270 |
Issued in reinvestment of distributions |
5,283 |
3,151 |
Redeemed |
(67,655) |
(104,362) |
Net increase (decrease) |
(11,143) |
19,059 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended |
Years ended July 31, |
||||
|
(Unaudited) |
2004 |
2003 |
2002 |
2001 |
2000 |
Selected Per-Share Data |
||||||
Net asset value, beginning of period |
$ 38.72 |
$ 36.13 |
$ 33.24 |
$ 45.08 |
$ 60.25 |
$ 53.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)D |
.30E |
.19 |
.21 |
.10 |
.01 |
(.01) |
Net realized and unrealized gain (loss) |
1.98 |
2.62 |
2.81 |
(11.88) |
(12.66) |
9.27 |
Total from investment operations |
2.28 |
2.81 |
3.02 |
(11.78) |
(12.65) |
9.26 |
Distributions from net investment income |
(.39) |
(.22) |
(.13) |
(.06) |
- |
(.14) |
Distributions from net realized gain |
- |
- |
- |
- |
(2.52) |
(2.07) |
Total distributions |
(.39) |
(.22) |
(.13) |
(.06) |
(2.52) |
(2.21) |
Net asset value, end of period |
$ 40.61 |
$ 38.72 |
$ 36.13 |
$ 33.24 |
$ 45.08 |
$ 60.25 |
Total ReturnB, C |
5.89% |
7.79% |
9.13% |
(26.16)% |
(21.92)% |
17.97% |
Ratios to Average Net AssetsF |
||||||
Expenses before expense reductions |
.66%A |
.68% |
.71% |
.76% |
.89% |
.88% |
Expenses net of voluntary waivers, if any |
.66%A |
.68% |
.71% |
.76% |
.89% |
.88% |
Expenses net of all reductions |
.65%A |
.67% |
.69% |
.74% |
.87% |
.86% |
Net investment income (loss) |
1.52%A,E |
.48% |
.64% |
.25% |
.01% |
(.02)% |
Supplemental Data |
||||||
Net assets, end of period (in millions) |
$ 22,729 |
$ 22,102 |
$ 19,936 |
$ 17,021 |
$ 23,032 |
$ 29,154 |
Portfolio turnover rate |
18%A |
23% |
24% |
33% |
46% |
40% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.20 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been .54%.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Blue Chip Growth Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 5,303,481 |
|
Unrealized depreciation |
(1,188,278) |
|
Net unrealized appreciation (depreciation) |
$ 4,115,203 |
|
Cost for federal income tax purposes |
$ 18,769,902 |
|
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $2,013,748 and $2,186,296, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .40% of the fund's average net assets.
Sales Load. Fidelity Distributors Corporation (FDC), an affiliate of FMR, is the general distributor of the fund. Shares purchased prior to October 12, 1990 are subject to a 1% deferred sales charge upon redemption. For the period, FDC received sales charges of $10 on redemption of shares of the fund.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .25% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $3,735 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $78 for the period.
Semiannual Report
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $913 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's transfer agent expenses by $214, respectively.
8. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
BCF-USAN-0305
1.789282.101
Fidelity Advisor
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® Small Cap
Growth Fund
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of the fund's investments. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.98B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,150.00 |
$ 4.64B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,148.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,149.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Small Cap Growth |
|
|
|
Actual |
$ 1,000.00 |
$ 1,152.00 |
$ 3.32B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.31B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Growth |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
4.4 |
EVCI Career Colleges, Inc. |
4.4 |
Collegiate Pacific, Inc. |
3.8 |
Lionbridge Technologies, Inc. |
3.0 |
Pediatrix Medical Group, Inc. |
2.6 |
Career Education Corp. |
2.3 |
Range Resources Corp. |
1.9 |
Pacific Sunwear of California, Inc. |
1.8 |
ICON PLC sponsored ADR |
1.8 |
Big 5 Sporting Goods Corp. |
1.6 |
|
27.6 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
20.5 |
Information Technology |
17.6 |
Energy |
16.8 |
Health Care |
14.5 |
Industrials |
11.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 90.5% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign investments |
14.8% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 90.5% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 20.5% |
|||
Hotels, Restaurants & Leisure - 4.4% |
|||
Ambassadors Group, Inc. |
3,200 |
$ 108,800 |
|
Brinker International, Inc. (a) |
1,900 |
71,459 |
|
Buffalo Wild Wings, Inc. (a) |
1,900 |
76,931 |
|
Century Casinos, Inc. (a) |
147,478 |
1,234,391 |
|
Ctrip.com International Ltd. ADR (a) |
14,000 |
576,786 |
|
Friendly Ice Cream Corp. (a) |
7,700 |
67,221 |
|
Penn National Gaming, Inc. (a) |
3,200 |
209,888 |
|
Sportingbet PLC (a) |
300,000 |
1,347,573 |
|
|
3,693,049 |
||
Household Durables - 1.6% |
|||
Interface, Inc. Class A (a) |
69,700 |
657,271 |
|
Jarden Corp. (a) |
15,000 |
690,000 |
|
|
1,347,271 |
||
Internet & Catalog Retail - 4.7% |
|||
Blue Nile, Inc. |
25,900 |
725,200 |
|
Collegiate Pacific, Inc. |
242,900 |
3,184,419 |
|
|
3,909,619 |
||
Leisure Equipment & Products - 0.8% |
|||
RC2 Corp. (a) |
22,800 |
660,060 |
|
Multiline Retail - 0.4% |
|||
Tuesday Morning Corp. (a) |
12,300 |
353,379 |
|
Specialty Retail - 7.3% |
|||
Big 5 Sporting Goods Corp. |
50,100 |
1,371,738 |
|
Cost Plus, Inc. (a) |
23,500 |
616,405 |
|
Hibbett Sporting Goods, Inc. (a) |
19,500 |
503,100 |
|
Hot Topic, Inc. (a) |
10,500 |
203,490 |
|
Jos. A. Bank Clothiers, Inc. (a) |
13,000 |
373,100 |
|
Pacific Sunwear of California, Inc. (a) |
62,400 |
1,528,176 |
|
RONA, Inc. (a) |
22,000 |
800,548 |
|
Select Comfort Corp. (a) |
27,500 |
538,175 |
|
Steiner Leisure Ltd. (a) |
6,100 |
189,216 |
|
|
6,123,948 |
||
Textiles, Apparel & Luxury Goods - 1.3% |
|||
Bijou Brigitte Modische Accessoires AG |
1,665 |
251,413 |
|
Carter's, Inc. (a) |
7,300 |
266,888 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Lakeland Industries, Inc. (a) |
20,300 |
$ 400,925 |
|
Oxford Industries, Inc. |
4,100 |
152,438 |
|
|
1,071,664 |
||
TOTAL CONSUMER DISCRETIONARY |
17,158,990 |
||
CONSUMER STAPLES - 2.6% |
|||
Beverages - 0.5% |
|||
C&C Group PLC |
100,000 |
422,302 |
|
Food & Staples Retailing - 0.6% |
|||
Caffe Nero Group PLC (a) |
199,000 |
462,874 |
|
Food Products - 0.5% |
|||
Poore Brothers, Inc. (a) |
47,100 |
158,727 |
|
Rocky Mountain Chocolate Factory, Inc. |
14,100 |
235,188 |
|
|
393,915 |
||
Personal Products - 1.0% |
|||
NBTY, Inc. (a) |
31,800 |
870,684 |
|
TOTAL CONSUMER STAPLES |
2,149,775 |
||
ENERGY - 16.8% |
|||
Energy Equipment & Services - 3.1% |
|||
AKITA Drilling Ltd. Class A (non-vtg.) |
32,000 |
701,342 |
|
Oil States International, Inc. (a) |
29,200 |
556,260 |
|
Pason Systems, Inc. |
39,800 |
1,235,001 |
|
Superior Energy Services, Inc. (a) |
5,300 |
84,376 |
|
|
2,576,979 |
||
Oil & Gas - 13.7% |
|||
Blackrock Ventures, Inc. (a) |
70,000 |
545,425 |
|
Denbury Resources, Inc. (a) |
28,700 |
838,040 |
|
Encore Acquisition Co. (a) |
19,200 |
716,160 |
|
Forest Oil Corp. (a) |
34,000 |
1,145,460 |
|
GMX Resources, Inc. (a) |
35,400 |
295,590 |
|
Holly Corp. |
44,700 |
1,352,622 |
|
Quicksilver Resources, Inc. (a) |
83,500 |
3,709,904 |
|
Range Resources Corp. |
71,000 |
1,575,490 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Thunder Energy, Inc. (a) |
107,000 |
$ 726,812 |
|
World Fuel Services Corp. |
12,100 |
613,228 |
|
|
11,518,731 |
||
TOTAL ENERGY |
14,095,710 |
||
FINANCIALS - 5.4% |
|||
Commercial Banks - 1.0% |
|||
Center Financial Corp., California |
37,600 |
782,456 |
|
Nara Bancorp, Inc. |
6,000 |
119,700 |
|
|
902,156 |
||
Insurance - 4.3% |
|||
Hilb Rogal & Hobbs Co. |
13,800 |
490,728 |
|
IPC Holdings Ltd. |
9,000 |
379,890 |
|
PXRE Group Ltd. |
17,615 |
457,109 |
|
Specialty Underwriters' Alliance, Inc. |
50,700 |
495,339 |
|
United America Indemnity Ltd. Class A |
41,700 |
750,600 |
|
USI Holdings Corp. (a) |
90,100 |
1,018,130 |
|
|
3,591,796 |
||
Thrifts & Mortgage Finance - 0.1% |
|||
W Holding Co., Inc. |
5,508 |
71,824 |
|
TOTAL FINANCIALS |
4,565,776 |
||
HEALTH CARE - 14.5% |
|||
Health Care Equipment & Supplies - 2.8% |
|||
DJ Orthopedics, Inc. (a) |
41,000 |
990,150 |
|
Enpath Medical, Inc. (a) |
17,000 |
173,570 |
|
Kensey Nash Corp. (a) |
9,300 |
300,297 |
|
Mentor Corp. |
2,700 |
84,537 |
|
Orthofix International NV (a) |
1,900 |
75,962 |
|
Regeneration Technologies, Inc. (a) |
68,900 |
708,637 |
|
|
2,333,153 |
||
Health Care Providers & Services - 11.7% |
|||
America Service Group, Inc. (a) |
23,900 |
655,577 |
|
American Dental Partners, Inc. (a) |
16,800 |
338,520 |
|
AmSurg Corp. (a) |
42,300 |
1,117,143 |
|
Bio-Reference Laboratories, Inc. (a) |
11,200 |
159,152 |
|
Cedara Software Corp. (a) |
17,200 |
182,942 |
|
DaVita, Inc. (a) |
14,100 |
591,636 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Horizon Health Corp. (a) |
17,700 |
$ 538,965 |
|
ICON PLC sponsored ADR (a) |
42,500 |
1,492,600 |
|
LCA-Vision, Inc. |
10,000 |
266,500 |
|
Medtox Scientific, Inc. (a) |
50,300 |
412,460 |
|
Molina Healthcare, Inc. (a) |
11,330 |
563,441 |
|
Omnicare, Inc. |
21,400 |
658,050 |
|
Pediatrix Medical Group, Inc. (a) |
33,000 |
2,204,070 |
|
Per-Se Technologies, Inc. (a) |
46,400 |
677,440 |
|
|
9,858,496 |
||
TOTAL HEALTH CARE |
12,191,649 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 1.5% |
|||
BE Aerospace, Inc. (a) |
26,000 |
280,540 |
|
DRS Technologies, Inc. (a) |
5,800 |
235,480 |
|
SI International, Inc. (a) |
28,700 |
734,720 |
|
|
1,250,740 |
||
Commercial Services & Supplies - 9.2% |
|||
Career Education Corp. (a) |
49,000 |
1,974,210 |
|
Corinthian Colleges, Inc. (a) |
41,700 |
801,891 |
|
EVCI Career Colleges, Inc. (a) |
412,606 |
3,676,319 |
|
Exponent, Inc. (a) |
2,595 |
64,745 |
|
Learning Care Group, Inc. (a) |
62,120 |
227,359 |
|
The Geo Group, Inc. (a) |
31,600 |
946,420 |
|
|
7,690,944 |
||
Construction & Engineering - 0.2% |
|||
Infrasource Services, Inc. |
14,100 |
170,610 |
|
Electrical Equipment - 0.2% |
|||
A.O. Smith Corp. |
7,200 |
195,192 |
|
Machinery - 0.5% |
|||
The Weir Group PLC |
20,000 |
123,363 |
|
Watts Water Technologies, Inc. Class A |
7,500 |
240,375 |
|
|
363,738 |
||
Marine - 0.3% |
|||
Alexander & Baldwin, Inc. |
6,000 |
276,000 |
|
TOTAL INDUSTRIALS |
9,947,224 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - 17.6% |
|||
Communications Equipment - 0.2% |
|||
NETGEAR, Inc. (a) |
8,900 |
$ 133,856 |
|
Electronic Equipment & Instruments - 2.4% |
|||
Aeroflex, Inc. (a) |
25,700 |
247,234 |
|
Arrow Electronics, Inc. (a) |
26,200 |
618,582 |
|
Bell Microproducts, Inc. (a) |
9,550 |
77,451 |
|
Leica Geosystems AG (a) |
465 |
138,841 |
|
Measurement Specialties, Inc. (a) |
36,500 |
937,685 |
|
|
2,019,793 |
||
Internet Software & Services - 4.4% |
|||
Akamai Technologies, Inc. (a) |
75,800 |
992,980 |
|
Cryptologic, Inc. |
13,200 |
326,636 |
|
Homestore, Inc. (a) |
75,000 |
177,000 |
|
iMergent, Inc. (a) |
50,400 |
1,063,440 |
|
Intermix Media, Inc. (a) |
60,000 |
391,800 |
|
j2 Global Communications, Inc. (a) |
11,900 |
386,512 |
|
Marchex, Inc. Class B |
3,900 |
70,239 |
|
Sina Corp. (a) |
6,000 |
159,000 |
|
Vitria Technology, Inc. (a) |
26,400 |
108,240 |
|
|
3,675,847 |
||
IT Services - 5.0% |
|||
BearingPoint, Inc. (a) |
48,800 |
385,032 |
|
Lionbridge Technologies, Inc. (a) |
399,946 |
2,511,661 |
|
Tyler Technologies, Inc. (a) |
173,200 |
1,324,980 |
|
|
4,221,673 |
||
Semiconductors & Semiconductor Equipment - 3.1% |
|||
ATMI, Inc. (a) |
10,000 |
227,300 |
|
Axcelis Technologies, Inc. (a) |
26,000 |
194,220 |
|
Cascade Microtech, Inc. |
12,300 |
130,380 |
|
Exar Corp. (a) |
1,800 |
25,866 |
|
Fairchild Semiconductor International, Inc. (a) |
40,700 |
580,789 |
|
FormFactor, Inc. (a) |
9,000 |
204,930 |
|
Integrated Device Technology, Inc. (a) |
34,300 |
402,682 |
|
Microsemi Corp. (a) |
8,900 |
137,327 |
|
O2Micro International Ltd. (a) |
300 |
2,661 |
|
ON Semiconductor Corp. (a) |
12,200 |
44,652 |
|
Pericom Semiconductor Corp. (a) |
17,900 |
150,181 |
|
Varian Semiconductor Equipment Associates, Inc. (a) |
13,800 |
473,064 |
|
|
2,574,052 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - continued |
|||
Software - 2.5% |
|||
DATATRAK International, Inc. (a) |
2,200 |
$ 23,826 |
|
DATATRAK International, Inc. (a)(b) |
10,000 |
92,055 |
|
DATATRAK International, Inc. warrants 12/31/49 (a)(b) |
1,500 |
0 |
|
Moldflow Corp. (a) |
21,000 |
354,900 |
|
MSC.Software Corp. (a) |
17,900 |
184,549 |
|
Pegasystems, Inc. (a) |
26,900 |
182,113 |
|
Pervasive Software, Inc. (a) |
36,200 |
146,610 |
|
Phase Forward, Inc. |
163,900 |
1,111,242 |
|
|
2,095,295 |
||
TOTAL INFORMATION TECHNOLOGY |
14,720,516 |
||
MATERIALS - 1.2% |
|||
Metals & Mining - 0.9% |
|||
Apex Silver Mines Ltd. (a) |
14,000 |
226,240 |
|
Goldcorp, Inc. |
17,000 |
238,894 |
|
Meridian Gold, Inc. (a) |
17,000 |
312,316 |
|
|
777,450 |
||
Paper & Forest Products - 0.3% |
|||
Sino-Forest Corp. (a) |
74,041 |
247,589 |
|
TOTAL MATERIALS |
1,025,039 |
||
TOTAL COMMON STOCKS (Cost $71,172,341) |
75,854,679 |
||
Cash Equivalents - 11.8% |
|||
Maturity Amount |
|
||
Investments in repurchase agreements (Collateralized by U.S.
Treasury Obligations, in a joint trading account at 2.45%,
dated 1/31/05 due 2/1/05) (c) |
$ 9,895,672 |
$ 9,895,000 |
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $81,067,341) |
85,749,679 |
||
NET OTHER ASSETS - (2.3)% |
(1,895,075) |
||
NET ASSETS - 100% |
$ 83,854,604 |
Legend |
(a) Non-income producing |
(b) 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 $92,055 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
DATATRAK International, Inc. |
12/27/04 |
$ 95,000 |
DATATRAK International, Inc. warrants 12/31/49 |
12/27/04 |
$ 0 |
(c) Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement/ |
Value |
$9,895,000 due 2/1/05 at 2.45%: |
|
Banc of America Securites LLC |
$ 1,289,357 |
Barclays Capital Inc. |
1,482,761 |
Bear Stearns & Co. Inc. |
644,679 |
Credit Suisse First Boston LLC |
1,289,357 |
Deutsche Bank Securities Inc. |
1,934,036 |
J.P. Morgan Securities, Inc. |
644,679 |
Lehman Brothers Inc. |
277,212 |
Morgan Stanley & Co. Incorporated |
386,230 |
BNP Paribas Securities Corp. |
1,934,036 |
UBS Securities LLC |
12,653 |
|
$ 9,895,000 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
85.2% |
Canada |
6.4% |
United Kingdom |
2.4% |
Ireland |
2.3% |
Cayman Islands |
1.8% |
Bermuda |
1.0% |
Others (individually less than 1%) |
0.9% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (including repurchase agreements of $9,895,000) (cost $81,067,341) - See accompanying schedule |
|
$ 85,749,679 |
Cash |
|
402 |
Foreign currency held at value (cost $34,077) |
|
34,039 |
Receivable for investments sold |
|
296,580 |
Receivable for fund shares sold |
|
1,003,904 |
Dividends receivable |
|
1,272 |
Prepaid expenses |
|
69,563 |
Receivable from investment adviser for expense reductions |
|
5,265 |
Other affiliated receivables |
|
894 |
Other receivables |
|
15,572 |
Total assets |
|
87,177,170 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 3,188,305 |
|
Payable for fund shares redeemed |
59,636 |
|
Accrued management fee |
42,777 |
|
Distribution fees payable |
2,755 |
|
Other affiliated payables |
14,271 |
|
Other payables and accrued expenses |
14,822 |
|
Total liabilities |
|
3,322,566 |
|
|
|
Net Assets |
|
$ 83,854,604 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 78,977,678 |
Accumulated net investment loss |
|
(76,926) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
271,551 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
4,682,301 |
Net Assets |
|
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.51 |
|
|
|
Maximum offering price per share (100/94.25 of $11.51) |
|
$ 12.21 |
Class T: |
|
$ 11.50 |
|
|
|
Maximum offering price per share (100/96.50 of $11.50) |
|
$ 11.92 |
Class B: |
|
$ 11.48 |
|
|
|
Class C: |
|
$ 11.49 |
|
|
|
Small Cap Growth: |
|
$ 11.52 |
|
|
|
Institutional Class: |
|
$ 11.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
For the period November 3, 2004 (commencement of operations) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 20,978 |
Interest |
|
36,181 |
Total income |
|
57,159 |
|
|
|
Expenses |
|
|
Management fee |
$ 83,521 |
|
Transfer agent fees |
30,566 |
|
Distribution fees |
6,700 |
|
Accounting fees and expenses |
7,681 |
|
Non-interested trustees' compensation |
27 |
|
Custodian fees and expenses |
9,985 |
|
Registration fees |
30,108 |
|
Audit |
11,607 |
|
Legal |
10 |
|
Total expenses before reductions |
180,205 |
|
Expense reductions |
(46,120) |
134,085 |
Net investment income (loss) |
|
(76,926) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
275,347 |
|
Foreign currency transactions |
(3,796) |
|
Total net realized gain (loss) |
|
271,551 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
4,682,338 |
|
Assets and liabilities in foreign currencies |
(37) |
|
Total change in net unrealized appreciation (depreciation) |
|
4,682,301 |
Net gain (loss) |
|
4,953,852 |
Net increase (decrease) in net assets resulting from operations |
|
$ 4,876,926 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (76,926) |
Net realized gain (loss) |
271,551 |
Change in net unrealized appreciation (depreciation) |
4,682,301 |
Net increase (decrease) in net assets resulting |
4,876,926 |
Share transactions - net increase (decrease) |
78,956,576 |
Redemption fees |
21,102 |
Total increase (decrease) in net assets |
83,854,604 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $76,926) |
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.51 |
Total Return B, C, D |
15.10% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.88% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.36% A |
Net investment income (loss) |
(.86)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,393 |
Portfolio turnover rate |
49% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.50 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.50 |
Total Return B, C, D |
15.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.10% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.61% A |
Net investment income (loss) |
(1.11)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,217 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.52 |
Total from investment operations |
1.48 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.48 |
Total Return B, C, D |
14.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.71% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 868 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.49 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.49 |
Total Return B, C, D |
14.90% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.64% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,286 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.54 |
Total from investment operations |
1.52 |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.52 |
Total Return B, C |
15.20% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.50% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 76,979 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital D |
- |
Net asset value, end of period |
$ 11.51 |
Total Return B, C |
15.10% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.59% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,112 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Growth Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Growth, and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 6,146,534 |
|
Unrealized depreciation |
(1,464,196) |
|
Net unrealized appreciation (depreciation) |
$ 4,682,338 |
|
Cost for federal income tax purposes |
$ 81,067,341 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $75,829,046 and $4,932,053, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .72% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 648 |
$ 386 |
Class T |
.25% |
.25% |
2,020 |
742 |
Class B |
.75% |
.25% |
1,792 |
1,738 |
Class C |
.75% |
.25% |
2,240 |
1,988 |
|
|
|
$ 6,700 |
$ 4,854 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
|
Class A |
$ 1,683 |
|
Class T |
772 |
|
Class B* |
7 |
|
Class C* |
- |
|
|
$ 2,462 |
|
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Growth. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Growth shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 585 |
.23* |
Class T |
1,039 |
.26* |
Class B |
426 |
.24* |
Class C |
503 |
.23* |
Small Cap Growth |
27,654 |
.27* |
Institutional Class |
359 |
.17* |
|
$ 30,566 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,006 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
Class A |
1.50% |
$ 985 |
Class T |
1.75% |
1,409 |
Class B |
2.25% |
816 |
Class C |
2.25% |
869 |
Small Cap Growth |
1.25% |
25,756 |
Institutional Class |
1.25% |
713 |
|
|
$ 30,548 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $15,572 for the period.
6. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
At the end of the period, one otherwise unaffiliated shareholder was the owner of record of 12% of the outstanding shares of the fund.
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
For the period |
For the period |
Class A |
|
|
Shares sold |
121,341 |
$ 1,256,152 |
Shares redeemed |
(316) |
(3,547) |
Net increase (decrease) |
121,025 |
$ 1,252,605 |
Class T |
|
|
Shares sold |
192,771 |
$ 2,026,359 |
Shares redeemed |
- |
- |
Net increase (decrease) |
192,771 |
$ 2,026,359 |
Class B |
|
|
Shares sold |
75,583 |
$ 770,623 |
Shares redeemed |
(29) |
(316) |
Net increase (decrease) |
75,554 |
$ 770,307 |
Class C |
|
|
Shares sold |
111,985 |
$ 1,174,349 |
Shares redeemed |
- |
- |
Net increase (decrease) |
111,985 |
$ 1,174,349 |
Small Cap Growth |
|
|
Shares sold |
6,813,279 |
$ 74,190,613 |
Shares redeemed |
(130,949) |
(1,461,306) |
Net increase (decrease) |
6,682,330 |
$ 72,729,307 |
Institutional Class |
|
|
Shares sold |
96,575 |
$ 1,003,649 |
Shares redeemed |
- |
- |
Net increase (decrease) |
96,575 |
$ 1,003,649 |
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ASCP-USAN-0305
1.803716.100
Fidelity Advisor
Fund - Institutional Class
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Growth
Fund
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of the fund's investments. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.98B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,150.00 |
$ 4.64B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,148.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,149.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Small Cap Growth |
|
|
|
Actual |
$ 1,000.00 |
$ 1,152.00 |
$ 3.32B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.31B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Growth |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
4.4 |
EVCI Career Colleges, Inc. |
4.4 |
Collegiate Pacific, Inc. |
3.8 |
Lionbridge Technologies, Inc. |
3.0 |
Pediatrix Medical Group, Inc. |
2.6 |
Career Education Corp. |
2.3 |
Range Resources Corp. |
1.9 |
Pacific Sunwear of California, Inc. |
1.8 |
ICON PLC sponsored ADR |
1.8 |
Big 5 Sporting Goods Corp. |
1.6 |
|
27.6 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
20.5 |
Information Technology |
17.6 |
Energy |
16.8 |
Health Care |
14.5 |
Industrials |
11.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 90.5% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign investments |
14.8% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 90.5% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 20.5% |
|||
Hotels, Restaurants & Leisure - 4.4% |
|||
Ambassadors Group, Inc. |
3,200 |
$ 108,800 |
|
Brinker International, Inc. (a) |
1,900 |
71,459 |
|
Buffalo Wild Wings, Inc. (a) |
1,900 |
76,931 |
|
Century Casinos, Inc. (a) |
147,478 |
1,234,391 |
|
Ctrip.com International Ltd. ADR (a) |
14,000 |
576,786 |
|
Friendly Ice Cream Corp. (a) |
7,700 |
67,221 |
|
Penn National Gaming, Inc. (a) |
3,200 |
209,888 |
|
Sportingbet PLC (a) |
300,000 |
1,347,573 |
|
|
3,693,049 |
||
Household Durables - 1.6% |
|||
Interface, Inc. Class A (a) |
69,700 |
657,271 |
|
Jarden Corp. (a) |
15,000 |
690,000 |
|
|
1,347,271 |
||
Internet & Catalog Retail - 4.7% |
|||
Blue Nile, Inc. |
25,900 |
725,200 |
|
Collegiate Pacific, Inc. |
242,900 |
3,184,419 |
|
|
3,909,619 |
||
Leisure Equipment & Products - 0.8% |
|||
RC2 Corp. (a) |
22,800 |
660,060 |
|
Multiline Retail - 0.4% |
|||
Tuesday Morning Corp. (a) |
12,300 |
353,379 |
|
Specialty Retail - 7.3% |
|||
Big 5 Sporting Goods Corp. |
50,100 |
1,371,738 |
|
Cost Plus, Inc. (a) |
23,500 |
616,405 |
|
Hibbett Sporting Goods, Inc. (a) |
19,500 |
503,100 |
|
Hot Topic, Inc. (a) |
10,500 |
203,490 |
|
Jos. A. Bank Clothiers, Inc. (a) |
13,000 |
373,100 |
|
Pacific Sunwear of California, Inc. (a) |
62,400 |
1,528,176 |
|
RONA, Inc. (a) |
22,000 |
800,548 |
|
Select Comfort Corp. (a) |
27,500 |
538,175 |
|
Steiner Leisure Ltd. (a) |
6,100 |
189,216 |
|
|
6,123,948 |
||
Textiles, Apparel & Luxury Goods - 1.3% |
|||
Bijou Brigitte Modische Accessoires AG |
1,665 |
251,413 |
|
Carter's, Inc. (a) |
7,300 |
266,888 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Lakeland Industries, Inc. (a) |
20,300 |
$ 400,925 |
|
Oxford Industries, Inc. |
4,100 |
152,438 |
|
|
1,071,664 |
||
TOTAL CONSUMER DISCRETIONARY |
17,158,990 |
||
CONSUMER STAPLES - 2.6% |
|||
Beverages - 0.5% |
|||
C&C Group PLC |
100,000 |
422,302 |
|
Food & Staples Retailing - 0.6% |
|||
Caffe Nero Group PLC (a) |
199,000 |
462,874 |
|
Food Products - 0.5% |
|||
Poore Brothers, Inc. (a) |
47,100 |
158,727 |
|
Rocky Mountain Chocolate Factory, Inc. |
14,100 |
235,188 |
|
|
393,915 |
||
Personal Products - 1.0% |
|||
NBTY, Inc. (a) |
31,800 |
870,684 |
|
TOTAL CONSUMER STAPLES |
2,149,775 |
||
ENERGY - 16.8% |
|||
Energy Equipment & Services - 3.1% |
|||
AKITA Drilling Ltd. Class A (non-vtg.) |
32,000 |
701,342 |
|
Oil States International, Inc. (a) |
29,200 |
556,260 |
|
Pason Systems, Inc. |
39,800 |
1,235,001 |
|
Superior Energy Services, Inc. (a) |
5,300 |
84,376 |
|
|
2,576,979 |
||
Oil & Gas - 13.7% |
|||
Blackrock Ventures, Inc. (a) |
70,000 |
545,425 |
|
Denbury Resources, Inc. (a) |
28,700 |
838,040 |
|
Encore Acquisition Co. (a) |
19,200 |
716,160 |
|
Forest Oil Corp. (a) |
34,000 |
1,145,460 |
|
GMX Resources, Inc. (a) |
35,400 |
295,590 |
|
Holly Corp. |
44,700 |
1,352,622 |
|
Quicksilver Resources, Inc. (a) |
83,500 |
3,709,904 |
|
Range Resources Corp. |
71,000 |
1,575,490 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Thunder Energy, Inc. (a) |
107,000 |
$ 726,812 |
|
World Fuel Services Corp. |
12,100 |
613,228 |
|
|
11,518,731 |
||
TOTAL ENERGY |
14,095,710 |
||
FINANCIALS - 5.4% |
|||
Commercial Banks - 1.0% |
|||
Center Financial Corp., California |
37,600 |
782,456 |
|
Nara Bancorp, Inc. |
6,000 |
119,700 |
|
|
902,156 |
||
Insurance - 4.3% |
|||
Hilb Rogal & Hobbs Co. |
13,800 |
490,728 |
|
IPC Holdings Ltd. |
9,000 |
379,890 |
|
PXRE Group Ltd. |
17,615 |
457,109 |
|
Specialty Underwriters' Alliance, Inc. |
50,700 |
495,339 |
|
United America Indemnity Ltd. Class A |
41,700 |
750,600 |
|
USI Holdings Corp. (a) |
90,100 |
1,018,130 |
|
|
3,591,796 |
||
Thrifts & Mortgage Finance - 0.1% |
|||
W Holding Co., Inc. |
5,508 |
71,824 |
|
TOTAL FINANCIALS |
4,565,776 |
||
HEALTH CARE - 14.5% |
|||
Health Care Equipment & Supplies - 2.8% |
|||
DJ Orthopedics, Inc. (a) |
41,000 |
990,150 |
|
Enpath Medical, Inc. (a) |
17,000 |
173,570 |
|
Kensey Nash Corp. (a) |
9,300 |
300,297 |
|
Mentor Corp. |
2,700 |
84,537 |
|
Orthofix International NV (a) |
1,900 |
75,962 |
|
Regeneration Technologies, Inc. (a) |
68,900 |
708,637 |
|
|
2,333,153 |
||
Health Care Providers & Services - 11.7% |
|||
America Service Group, Inc. (a) |
23,900 |
655,577 |
|
American Dental Partners, Inc. (a) |
16,800 |
338,520 |
|
AmSurg Corp. (a) |
42,300 |
1,117,143 |
|
Bio-Reference Laboratories, Inc. (a) |
11,200 |
159,152 |
|
Cedara Software Corp. (a) |
17,200 |
182,942 |
|
DaVita, Inc. (a) |
14,100 |
591,636 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Horizon Health Corp. (a) |
17,700 |
$ 538,965 |
|
ICON PLC sponsored ADR (a) |
42,500 |
1,492,600 |
|
LCA-Vision, Inc. |
10,000 |
266,500 |
|
Medtox Scientific, Inc. (a) |
50,300 |
412,460 |
|
Molina Healthcare, Inc. (a) |
11,330 |
563,441 |
|
Omnicare, Inc. |
21,400 |
658,050 |
|
Pediatrix Medical Group, Inc. (a) |
33,000 |
2,204,070 |
|
Per-Se Technologies, Inc. (a) |
46,400 |
677,440 |
|
|
9,858,496 |
||
TOTAL HEALTH CARE |
12,191,649 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 1.5% |
|||
BE Aerospace, Inc. (a) |
26,000 |
280,540 |
|
DRS Technologies, Inc. (a) |
5,800 |
235,480 |
|
SI International, Inc. (a) |
28,700 |
734,720 |
|
|
1,250,740 |
||
Commercial Services & Supplies - 9.2% |
|||
Career Education Corp. (a) |
49,000 |
1,974,210 |
|
Corinthian Colleges, Inc. (a) |
41,700 |
801,891 |
|
EVCI Career Colleges, Inc. (a) |
412,606 |
3,676,319 |
|
Exponent, Inc. (a) |
2,595 |
64,745 |
|
Learning Care Group, Inc. (a) |
62,120 |
227,359 |
|
The Geo Group, Inc. (a) |
31,600 |
946,420 |
|
|
7,690,944 |
||
Construction & Engineering - 0.2% |
|||
Infrasource Services, Inc. |
14,100 |
170,610 |
|
Electrical Equipment - 0.2% |
|||
A.O. Smith Corp. |
7,200 |
195,192 |
|
Machinery - 0.5% |
|||
The Weir Group PLC |
20,000 |
123,363 |
|
Watts Water Technologies, Inc. Class A |
7,500 |
240,375 |
|
|
363,738 |
||
Marine - 0.3% |
|||
Alexander & Baldwin, Inc. |
6,000 |
276,000 |
|
TOTAL INDUSTRIALS |
9,947,224 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - 17.6% |
|||
Communications Equipment - 0.2% |
|||
NETGEAR, Inc. (a) |
8,900 |
$ 133,856 |
|
Electronic Equipment & Instruments - 2.4% |
|||
Aeroflex, Inc. (a) |
25,700 |
247,234 |
|
Arrow Electronics, Inc. (a) |
26,200 |
618,582 |
|
Bell Microproducts, Inc. (a) |
9,550 |
77,451 |
|
Leica Geosystems AG (a) |
465 |
138,841 |
|
Measurement Specialties, Inc. (a) |
36,500 |
937,685 |
|
|
2,019,793 |
||
Internet Software & Services - 4.4% |
|||
Akamai Technologies, Inc. (a) |
75,800 |
992,980 |
|
Cryptologic, Inc. |
13,200 |
326,636 |
|
Homestore, Inc. (a) |
75,000 |
177,000 |
|
iMergent, Inc. (a) |
50,400 |
1,063,440 |
|
Intermix Media, Inc. (a) |
60,000 |
391,800 |
|
j2 Global Communications, Inc. (a) |
11,900 |
386,512 |
|
Marchex, Inc. Class B |
3,900 |
70,239 |
|
Sina Corp. (a) |
6,000 |
159,000 |
|
Vitria Technology, Inc. (a) |
26,400 |
108,240 |
|
|
3,675,847 |
||
IT Services - 5.0% |
|||
BearingPoint, Inc. (a) |
48,800 |
385,032 |
|
Lionbridge Technologies, Inc. (a) |
399,946 |
2,511,661 |
|
Tyler Technologies, Inc. (a) |
173,200 |
1,324,980 |
|
|
4,221,673 |
||
Semiconductors & Semiconductor Equipment - 3.1% |
|||
ATMI, Inc. (a) |
10,000 |
227,300 |
|
Axcelis Technologies, Inc. (a) |
26,000 |
194,220 |
|
Cascade Microtech, Inc. |
12,300 |
130,380 |
|
Exar Corp. (a) |
1,800 |
25,866 |
|
Fairchild Semiconductor International, Inc. (a) |
40,700 |
580,789 |
|
FormFactor, Inc. (a) |
9,000 |
204,930 |
|
Integrated Device Technology, Inc. (a) |
34,300 |
402,682 |
|
Microsemi Corp. (a) |
8,900 |
137,327 |
|
O2Micro International Ltd. (a) |
300 |
2,661 |
|
ON Semiconductor Corp. (a) |
12,200 |
44,652 |
|
Pericom Semiconductor Corp. (a) |
17,900 |
150,181 |
|
Varian Semiconductor Equipment Associates, Inc. (a) |
13,800 |
473,064 |
|
|
2,574,052 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - continued |
|||
Software - 2.5% |
|||
DATATRAK International, Inc. (a) |
2,200 |
$ 23,826 |
|
DATATRAK International, Inc. (a)(b) |
10,000 |
92,055 |
|
DATATRAK International, Inc. warrants 12/31/49 (a)(b) |
1,500 |
0 |
|
Moldflow Corp. (a) |
21,000 |
354,900 |
|
MSC.Software Corp. (a) |
17,900 |
184,549 |
|
Pegasystems, Inc. (a) |
26,900 |
182,113 |
|
Pervasive Software, Inc. (a) |
36,200 |
146,610 |
|
Phase Forward, Inc. |
163,900 |
1,111,242 |
|
|
2,095,295 |
||
TOTAL INFORMATION TECHNOLOGY |
14,720,516 |
||
MATERIALS - 1.2% |
|||
Metals & Mining - 0.9% |
|||
Apex Silver Mines Ltd. (a) |
14,000 |
226,240 |
|
Goldcorp, Inc. |
17,000 |
238,894 |
|
Meridian Gold, Inc. (a) |
17,000 |
312,316 |
|
|
777,450 |
||
Paper & Forest Products - 0.3% |
|||
Sino-Forest Corp. (a) |
74,041 |
247,589 |
|
TOTAL MATERIALS |
1,025,039 |
||
TOTAL COMMON STOCKS (Cost $71,172,341) |
75,854,679 |
||
Cash Equivalents - 11.8% |
|||
Maturity Amount |
|
||
Investments in repurchase agreements (Collateralized by U.S.
Treasury Obligations, in a joint trading account at 2.45%,
dated 1/31/05 due 2/1/05) (c) |
$ 9,895,672 |
$ 9,895,000 |
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $81,067,341) |
85,749,679 |
||
NET OTHER ASSETS - (2.3)% |
(1,895,075) |
||
NET ASSETS - 100% |
$ 83,854,604 |
Legend |
(a) Non-income producing |
(b) 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 $92,055 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
DATATRAK International, Inc. |
12/27/04 |
$ 95,000 |
DATATRAK International, Inc. warrants 12/31/49 |
12/27/04 |
$ 0 |
(c) Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement/ |
Value |
$9,895,000 due 2/1/05 at 2.45%: |
|
Banc of America Securites LLC |
$ 1,289,357 |
Barclays Capital Inc. |
1,482,761 |
Bear Stearns & Co. Inc. |
644,679 |
Credit Suisse First Boston LLC |
1,289,357 |
Deutsche Bank Securities Inc. |
1,934,036 |
J.P. Morgan Securities, Inc. |
644,679 |
Lehman Brothers Inc. |
277,212 |
Morgan Stanley & Co. Incorporated |
386,230 |
BNP Paribas Securities Corp. |
1,934,036 |
UBS Securities LLC |
12,653 |
|
$ 9,895,000 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
85.2% |
Canada |
6.4% |
United Kingdom |
2.4% |
Ireland |
2.3% |
Cayman Islands |
1.8% |
Bermuda |
1.0% |
Others (individually less than 1%) |
0.9% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (including repurchase agreements of $9,895,000) (cost $81,067,341) - See accompanying schedule |
|
$ 85,749,679 |
Cash |
|
402 |
Foreign currency held at value (cost $34,077) |
|
34,039 |
Receivable for investments sold |
|
296,580 |
Receivable for fund shares sold |
|
1,003,904 |
Dividends receivable |
|
1,272 |
Prepaid expenses |
|
69,563 |
Receivable from investment adviser for expense reductions |
|
5,265 |
Other affiliated receivables |
|
894 |
Other receivables |
|
15,572 |
Total assets |
|
87,177,170 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 3,188,305 |
|
Payable for fund shares redeemed |
59,636 |
|
Accrued management fee |
42,777 |
|
Distribution fees payable |
2,755 |
|
Other affiliated payables |
14,271 |
|
Other payables and accrued expenses |
14,822 |
|
Total liabilities |
|
3,322,566 |
|
|
|
Net Assets |
|
$ 83,854,604 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 78,977,678 |
Accumulated net investment loss |
|
(76,926) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
271,551 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
4,682,301 |
Net Assets |
|
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.51 |
|
|
|
Maximum offering price per share (100/94.25 of $11.51) |
|
$ 12.21 |
Class T: |
|
$ 11.50 |
|
|
|
Maximum offering price per share (100/96.50 of $11.50) |
|
$ 11.92 |
Class B: |
|
$ 11.48 |
|
|
|
Class C: |
|
$ 11.49 |
|
|
|
Small Cap Growth: |
|
$ 11.52 |
|
|
|
Institutional Class: |
|
$ 11.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
For the period November 3, 2004 (commencement of operations) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 20,978 |
Interest |
|
36,181 |
Total income |
|
57,159 |
|
|
|
Expenses |
|
|
Management fee |
$ 83,521 |
|
Transfer agent fees |
30,566 |
|
Distribution fees |
6,700 |
|
Accounting fees and expenses |
7,681 |
|
Non-interested trustees' compensation |
27 |
|
Custodian fees and expenses |
9,985 |
|
Registration fees |
30,108 |
|
Audit |
11,607 |
|
Legal |
10 |
|
Total expenses before reductions |
180,205 |
|
Expense reductions |
(46,120) |
134,085 |
Net investment income (loss) |
|
(76,926) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
275,347 |
|
Foreign currency transactions |
(3,796) |
|
Total net realized gain (loss) |
|
271,551 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
4,682,338 |
|
Assets and liabilities in foreign currencies |
(37) |
|
Total change in net unrealized appreciation (depreciation) |
|
4,682,301 |
Net gain (loss) |
|
4,953,852 |
Net increase (decrease) in net assets resulting from operations |
|
$ 4,876,926 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (76,926) |
Net realized gain (loss) |
271,551 |
Change in net unrealized appreciation (depreciation) |
4,682,301 |
Net increase (decrease) in net assets resulting |
4,876,926 |
Share transactions - net increase (decrease) |
78,956,576 |
Redemption fees |
21,102 |
Total increase (decrease) in net assets |
83,854,604 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $76,926) |
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.51 |
Total Return B, C, D |
15.10% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.88% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.36% A |
Net investment income (loss) |
(.86)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,393 |
Portfolio turnover rate |
49% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.50 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.50 |
Total Return B, C, D |
15.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.10% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.61% A |
Net investment income (loss) |
(1.11)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,217 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.52 |
Total from investment operations |
1.48 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.48 |
Total Return B, C, D |
14.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.71% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 868 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.49 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.49 |
Total Return B, C, D |
14.90% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.64% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,286 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.54 |
Total from investment operations |
1.52 |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.52 |
Total Return B, C |
15.20% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.50% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 76,979 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital D |
- |
Net asset value, end of period |
$ 11.51 |
Total Return B, C |
15.10% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.59% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,112 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Growth Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Growth, and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 6,146,534 |
|
Unrealized depreciation |
(1,464,196) |
|
Net unrealized appreciation (depreciation) |
$ 4,682,338 |
|
Cost for federal income tax purposes |
$ 81,067,341 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $75,829,046 and $4,932,053, respectively.
Semiannual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .72% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 648 |
$ 386 |
Class T |
.25% |
.25% |
2,020 |
742 |
Class B |
.75% |
.25% |
1,792 |
1,738 |
Class C |
.75% |
.25% |
2,240 |
1,988 |
|
|
|
$ 6,700 |
$ 4,854 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
|
Class A |
$ 1,683 |
|
Class T |
772 |
|
Class B* |
7 |
|
Class C* |
- |
|
|
$ 2,462 |
|
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Growth. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Growth shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 585 |
.23* |
Class T |
1,039 |
.26* |
Class B |
426 |
.24* |
Class C |
503 |
.23* |
Small Cap Growth |
27,654 |
.27* |
Institutional Class |
359 |
.17* |
|
$ 30,566 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,006 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
Class A |
1.50% |
$ 985 |
Class T |
1.75% |
1,409 |
Class B |
2.25% |
816 |
Class C |
2.25% |
869 |
Small Cap Growth |
1.25% |
25,756 |
Institutional Class |
1.25% |
713 |
|
|
$ 30,548 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $15,572 for the period.
6. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
At the end of the period, one otherwise unaffiliated shareholder was the owner of record of 12% of the outstanding shares of the fund.
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
For the period |
For the period |
Class A |
|
|
Shares sold |
121,341 |
$ 1,256,152 |
Shares redeemed |
(316) |
(3,547) |
Net increase (decrease) |
121,025 |
$ 1,252,605 |
Class T |
|
|
Shares sold |
192,771 |
$ 2,026,359 |
Shares redeemed |
- |
- |
Net increase (decrease) |
192,771 |
$ 2,026,359 |
Class B |
|
|
Shares sold |
75,583 |
$ 770,623 |
Shares redeemed |
(29) |
(316) |
Net increase (decrease) |
75,554 |
$ 770,307 |
Class C |
|
|
Shares sold |
111,985 |
$ 1,174,349 |
Shares redeemed |
- |
- |
Net increase (decrease) |
111,985 |
$ 1,174,349 |
Small Cap Growth |
|
|
Shares sold |
6,813,279 |
$ 74,190,613 |
Shares redeemed |
(130,949) |
(1,461,306) |
Net increase (decrease) |
6,682,330 |
$ 72,729,307 |
Institutional Class |
|
|
Shares sold |
96,575 |
$ 1,003,649 |
Shares redeemed |
- |
- |
Net increase (decrease) |
96,575 |
$ 1,003,649 |
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ASCPI-USAN-0305
1.803724.100
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
|
|
|
|
|
|
|
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the fund's most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.98B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,150.00 |
$ 4.64B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,148.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,149.00 |
$ 5.96B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42C |
Small Cap Growth |
|
|
|
Actual |
$ 1,000.00 |
$ 1,152.00 |
$ 3.32B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,151.00 |
$ 3.31B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Growth |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
4.4 |
EVCI Career Colleges, Inc. |
4.4 |
Collegiate Pacific, Inc. |
3.8 |
Lionbridge Technologies, Inc. |
3.0 |
Pediatrix Medical Group, Inc. |
2.6 |
Career Education Corp. |
2.3 |
Range Resources Corp. |
1.9 |
Pacific Sunwear of California, Inc. |
1.8 |
ICON PLC sponsored ADR |
1.8 |
Big 5 Sporting Goods Corp. |
1.6 |
|
27.6 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
20.5 |
Information Technology |
17.6 |
Energy |
16.8 |
Health Care |
14.5 |
Industrials |
11.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 90.5% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign investments |
14.8% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 90.5% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 20.5% |
|||
Hotels, Restaurants & Leisure - 4.4% |
|||
Ambassadors Group, Inc. |
3,200 |
$ 108,800 |
|
Brinker International, Inc. (a) |
1,900 |
71,459 |
|
Buffalo Wild Wings, Inc. (a) |
1,900 |
76,931 |
|
Century Casinos, Inc. (a) |
147,478 |
1,234,391 |
|
Ctrip.com International Ltd. ADR (a) |
14,000 |
576,786 |
|
Friendly Ice Cream Corp. (a) |
7,700 |
67,221 |
|
Penn National Gaming, Inc. (a) |
3,200 |
209,888 |
|
Sportingbet PLC (a) |
300,000 |
1,347,573 |
|
|
3,693,049 |
||
Household Durables - 1.6% |
|||
Interface, Inc. Class A (a) |
69,700 |
657,271 |
|
Jarden Corp. (a) |
15,000 |
690,000 |
|
|
1,347,271 |
||
Internet & Catalog Retail - 4.7% |
|||
Blue Nile, Inc. |
25,900 |
725,200 |
|
Collegiate Pacific, Inc. |
242,900 |
3,184,419 |
|
|
3,909,619 |
||
Leisure Equipment & Products - 0.8% |
|||
RC2 Corp. (a) |
22,800 |
660,060 |
|
Multiline Retail - 0.4% |
|||
Tuesday Morning Corp. (a) |
12,300 |
353,379 |
|
Specialty Retail - 7.3% |
|||
Big 5 Sporting Goods Corp. |
50,100 |
1,371,738 |
|
Cost Plus, Inc. (a) |
23,500 |
616,405 |
|
Hibbett Sporting Goods, Inc. (a) |
19,500 |
503,100 |
|
Hot Topic, Inc. (a) |
10,500 |
203,490 |
|
Jos. A. Bank Clothiers, Inc. (a) |
13,000 |
373,100 |
|
Pacific Sunwear of California, Inc. (a) |
62,400 |
1,528,176 |
|
RONA, Inc. (a) |
22,000 |
800,548 |
|
Select Comfort Corp. (a) |
27,500 |
538,175 |
|
Steiner Leisure Ltd. (a) |
6,100 |
189,216 |
|
|
6,123,948 |
||
Textiles, Apparel & Luxury Goods - 1.3% |
|||
Bijou Brigitte Modische Accessoires AG |
1,665 |
251,413 |
|
Carter's, Inc. (a) |
7,300 |
266,888 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Lakeland Industries, Inc. (a) |
20,300 |
$ 400,925 |
|
Oxford Industries, Inc. |
4,100 |
152,438 |
|
|
1,071,664 |
||
TOTAL CONSUMER DISCRETIONARY |
17,158,990 |
||
CONSUMER STAPLES - 2.6% |
|||
Beverages - 0.5% |
|||
C&C Group PLC |
100,000 |
422,302 |
|
Food & Staples Retailing - 0.6% |
|||
Caffe Nero Group PLC (a) |
199,000 |
462,874 |
|
Food Products - 0.5% |
|||
Poore Brothers, Inc. (a) |
47,100 |
158,727 |
|
Rocky Mountain Chocolate Factory, Inc. |
14,100 |
235,188 |
|
|
393,915 |
||
Personal Products - 1.0% |
|||
NBTY, Inc. (a) |
31,800 |
870,684 |
|
TOTAL CONSUMER STAPLES |
2,149,775 |
||
ENERGY - 16.8% |
|||
Energy Equipment & Services - 3.1% |
|||
AKITA Drilling Ltd. Class A (non-vtg.) |
32,000 |
701,342 |
|
Oil States International, Inc. (a) |
29,200 |
556,260 |
|
Pason Systems, Inc. |
39,800 |
1,235,001 |
|
Superior Energy Services, Inc. (a) |
5,300 |
84,376 |
|
|
2,576,979 |
||
Oil & Gas - 13.7% |
|||
Blackrock Ventures, Inc. (a) |
70,000 |
545,425 |
|
Denbury Resources, Inc. (a) |
28,700 |
838,040 |
|
Encore Acquisition Co. (a) |
19,200 |
716,160 |
|
Forest Oil Corp. (a) |
34,000 |
1,145,460 |
|
GMX Resources, Inc. (a) |
35,400 |
295,590 |
|
Holly Corp. |
44,700 |
1,352,622 |
|
Quicksilver Resources, Inc. (a) |
83,500 |
3,709,904 |
|
Range Resources Corp. |
71,000 |
1,575,490 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Thunder Energy, Inc. (a) |
107,000 |
$ 726,812 |
|
World Fuel Services Corp. |
12,100 |
613,228 |
|
|
11,518,731 |
||
TOTAL ENERGY |
14,095,710 |
||
FINANCIALS - 5.4% |
|||
Commercial Banks - 1.0% |
|||
Center Financial Corp., California |
37,600 |
782,456 |
|
Nara Bancorp, Inc. |
6,000 |
119,700 |
|
|
902,156 |
||
Insurance - 4.3% |
|||
Hilb Rogal & Hobbs Co. |
13,800 |
490,728 |
|
IPC Holdings Ltd. |
9,000 |
379,890 |
|
PXRE Group Ltd. |
17,615 |
457,109 |
|
Specialty Underwriters' Alliance, Inc. |
50,700 |
495,339 |
|
United America Indemnity Ltd. Class A |
41,700 |
750,600 |
|
USI Holdings Corp. (a) |
90,100 |
1,018,130 |
|
|
3,591,796 |
||
Thrifts & Mortgage Finance - 0.1% |
|||
W Holding Co., Inc. |
5,508 |
71,824 |
|
TOTAL FINANCIALS |
4,565,776 |
||
HEALTH CARE - 14.5% |
|||
Health Care Equipment & Supplies - 2.8% |
|||
DJ Orthopedics, Inc. (a) |
41,000 |
990,150 |
|
Enpath Medical, Inc. (a) |
17,000 |
173,570 |
|
Kensey Nash Corp. (a) |
9,300 |
300,297 |
|
Mentor Corp. |
2,700 |
84,537 |
|
Orthofix International NV (a) |
1,900 |
75,962 |
|
Regeneration Technologies, Inc. (a) |
68,900 |
708,637 |
|
|
2,333,153 |
||
Health Care Providers & Services - 11.7% |
|||
America Service Group, Inc. (a) |
23,900 |
655,577 |
|
American Dental Partners, Inc. (a) |
16,800 |
338,520 |
|
AmSurg Corp. (a) |
42,300 |
1,117,143 |
|
Bio-Reference Laboratories, Inc. (a) |
11,200 |
159,152 |
|
Cedara Software Corp. (a) |
17,200 |
182,942 |
|
DaVita, Inc. (a) |
14,100 |
591,636 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Horizon Health Corp. (a) |
17,700 |
$ 538,965 |
|
ICON PLC sponsored ADR (a) |
42,500 |
1,492,600 |
|
LCA-Vision, Inc. |
10,000 |
266,500 |
|
Medtox Scientific, Inc. (a) |
50,300 |
412,460 |
|
Molina Healthcare, Inc. (a) |
11,330 |
563,441 |
|
Omnicare, Inc. |
21,400 |
658,050 |
|
Pediatrix Medical Group, Inc. (a) |
33,000 |
2,204,070 |
|
Per-Se Technologies, Inc. (a) |
46,400 |
677,440 |
|
|
9,858,496 |
||
TOTAL HEALTH CARE |
12,191,649 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 1.5% |
|||
BE Aerospace, Inc. (a) |
26,000 |
280,540 |
|
DRS Technologies, Inc. (a) |
5,800 |
235,480 |
|
SI International, Inc. (a) |
28,700 |
734,720 |
|
|
1,250,740 |
||
Commercial Services & Supplies - 9.2% |
|||
Career Education Corp. (a) |
49,000 |
1,974,210 |
|
Corinthian Colleges, Inc. (a) |
41,700 |
801,891 |
|
EVCI Career Colleges, Inc. (a) |
412,606 |
3,676,319 |
|
Exponent, Inc. (a) |
2,595 |
64,745 |
|
Learning Care Group, Inc. (a) |
62,120 |
227,359 |
|
The Geo Group, Inc. (a) |
31,600 |
946,420 |
|
|
7,690,944 |
||
Construction & Engineering - 0.2% |
|||
Infrasource Services, Inc. |
14,100 |
170,610 |
|
Electrical Equipment - 0.2% |
|||
A.O. Smith Corp. |
7,200 |
195,192 |
|
Machinery - 0.5% |
|||
The Weir Group PLC |
20,000 |
123,363 |
|
Watts Water Technologies, Inc. Class A |
7,500 |
240,375 |
|
|
363,738 |
||
Marine - 0.3% |
|||
Alexander & Baldwin, Inc. |
6,000 |
276,000 |
|
TOTAL INDUSTRIALS |
9,947,224 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - 17.6% |
|||
Communications Equipment - 0.2% |
|||
NETGEAR, Inc. (a) |
8,900 |
$ 133,856 |
|
Electronic Equipment & Instruments - 2.4% |
|||
Aeroflex, Inc. (a) |
25,700 |
247,234 |
|
Arrow Electronics, Inc. (a) |
26,200 |
618,582 |
|
Bell Microproducts, Inc. (a) |
9,550 |
77,451 |
|
Leica Geosystems AG (a) |
465 |
138,841 |
|
Measurement Specialties, Inc. (a) |
36,500 |
937,685 |
|
|
2,019,793 |
||
Internet Software & Services - 4.4% |
|||
Akamai Technologies, Inc. (a) |
75,800 |
992,980 |
|
Cryptologic, Inc. |
13,200 |
326,636 |
|
Homestore, Inc. (a) |
75,000 |
177,000 |
|
iMergent, Inc. (a) |
50,400 |
1,063,440 |
|
Intermix Media, Inc. (a) |
60,000 |
391,800 |
|
j2 Global Communications, Inc. (a) |
11,900 |
386,512 |
|
Marchex, Inc. Class B |
3,900 |
70,239 |
|
Sina Corp. (a) |
6,000 |
159,000 |
|
Vitria Technology, Inc. (a) |
26,400 |
108,240 |
|
|
3,675,847 |
||
IT Services - 5.0% |
|||
BearingPoint, Inc. (a) |
48,800 |
385,032 |
|
Lionbridge Technologies, Inc. (a) |
399,946 |
2,511,661 |
|
Tyler Technologies, Inc. (a) |
173,200 |
1,324,980 |
|
|
4,221,673 |
||
Semiconductors & Semiconductor Equipment - 3.1% |
|||
ATMI, Inc. (a) |
10,000 |
227,300 |
|
Axcelis Technologies, Inc. (a) |
26,000 |
194,220 |
|
Cascade Microtech, Inc. |
12,300 |
130,380 |
|
Exar Corp. (a) |
1,800 |
25,866 |
|
Fairchild Semiconductor International, Inc. (a) |
40,700 |
580,789 |
|
FormFactor, Inc. (a) |
9,000 |
204,930 |
|
Integrated Device Technology, Inc. (a) |
34,300 |
402,682 |
|
Microsemi Corp. (a) |
8,900 |
137,327 |
|
O2Micro International Ltd. (a) |
300 |
2,661 |
|
ON Semiconductor Corp. (a) |
12,200 |
44,652 |
|
Pericom Semiconductor Corp. (a) |
17,900 |
150,181 |
|
Varian Semiconductor Equipment Associates, Inc. (a) |
13,800 |
473,064 |
|
|
2,574,052 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - continued |
|||
Software - 2.5% |
|||
DATATRAK International, Inc. (a) |
2,200 |
$ 23,826 |
|
DATATRAK International, Inc. (a)(b) |
10,000 |
92,055 |
|
DATATRAK International, Inc. warrants 12/31/49 (a)(b) |
1,500 |
0 |
|
Moldflow Corp. (a) |
21,000 |
354,900 |
|
MSC.Software Corp. (a) |
17,900 |
184,549 |
|
Pegasystems, Inc. (a) |
26,900 |
182,113 |
|
Pervasive Software, Inc. (a) |
36,200 |
146,610 |
|
Phase Forward, Inc. |
163,900 |
1,111,242 |
|
|
2,095,295 |
||
TOTAL INFORMATION TECHNOLOGY |
14,720,516 |
||
MATERIALS - 1.2% |
|||
Metals & Mining - 0.9% |
|||
Apex Silver Mines Ltd. (a) |
14,000 |
226,240 |
|
Goldcorp, Inc. |
17,000 |
238,894 |
|
Meridian Gold, Inc. (a) |
17,000 |
312,316 |
|
|
777,450 |
||
Paper & Forest Products - 0.3% |
|||
Sino-Forest Corp. (a) |
74,041 |
247,589 |
|
TOTAL MATERIALS |
1,025,039 |
||
TOTAL COMMON STOCKS (Cost $71,172,341) |
75,854,679 |
||
Cash Equivalents - 11.8% |
|||
Maturity Amount |
|
||
Investments in repurchase agreements (Collateralized by U.S.
Treasury Obligations, in a joint trading account at 2.45%,
dated 1/31/05 due 2/1/05) (c) |
$ 9,895,672 |
$ 9,895,000 |
|
TOTAL INVESTMENT PORTFOLIO - 102.3% (Cost $81,067,341) |
85,749,679 |
||
NET OTHER ASSETS - (2.3)% |
(1,895,075) |
||
NET ASSETS - 100% |
$ 83,854,604 |
Legend |
(a) Non-income producing |
(b) 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 $92,055 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
DATATRAK International, Inc. |
12/27/04 |
$ 95,000 |
DATATRAK International, Inc. warrants 12/31/49 |
12/27/04 |
$ 0 |
(c) Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement/ |
Value |
$9,895,000 due 2/1/05 at 2.45%: |
|
Banc of America Securites LLC |
$ 1,289,357 |
Barclays Capital Inc. |
1,482,761 |
Bear Stearns & Co. Inc. |
644,679 |
Credit Suisse First Boston LLC |
1,289,357 |
Deutsche Bank Securities Inc. |
1,934,036 |
J.P. Morgan Securities, Inc. |
644,679 |
Lehman Brothers Inc. |
277,212 |
Morgan Stanley & Co. Incorporated |
386,230 |
BNP Paribas Securities Corp. |
1,934,036 |
UBS Securities LLC |
12,653 |
|
$ 9,895,000 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
85.2% |
Canada |
6.4% |
United Kingdom |
2.4% |
Ireland |
2.3% |
Cayman Islands |
1.8% |
Bermuda |
1.0% |
Others (individually less than 1%) |
0.9% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (including repurchase agreements of $9,895,000) (cost $81,067,341) - See accompanying schedule |
|
$ 85,749,679 |
Cash |
|
402 |
Foreign currency held at value (cost $34,077) |
|
34,039 |
Receivable for investments sold |
|
296,580 |
Receivable for fund shares sold |
|
1,003,904 |
Dividends receivable |
|
1,272 |
Prepaid expenses |
|
69,563 |
Receivable from investment adviser for expense reductions |
|
5,265 |
Other affiliated receivables |
|
894 |
Other receivables |
|
15,572 |
Total assets |
|
87,177,170 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 3,188,305 |
|
Payable for fund shares redeemed |
59,636 |
|
Accrued management fee |
42,777 |
|
Distribution fees payable |
2,755 |
|
Other affiliated payables |
14,271 |
|
Other payables and accrued expenses |
14,822 |
|
Total liabilities |
|
3,322,566 |
|
|
|
Net Assets |
|
$ 83,854,604 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 78,977,678 |
Accumulated net investment loss |
|
(76,926) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
271,551 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
4,682,301 |
Net Assets |
|
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.51 |
|
|
|
Maximum offering price per share (100/94.25 of $11.51) |
|
$ 12.21 |
Class T: |
|
$ 11.50 |
|
|
|
Maximum offering price per share (100/96.50 of $11.50) |
|
$ 11.92 |
Class B: |
|
$ 11.48 |
|
|
|
Class C: |
|
$ 11.49 |
|
|
|
Small Cap Growth: |
|
$ 11.52 |
|
|
|
Institutional Class: |
|
$ 11.51 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
For the period November 3, 2004 (commencement of operations) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 20,978 |
Interest |
|
36,181 |
Total income |
|
57,159 |
|
|
|
Expenses |
|
|
Management fee |
$ 83,521 |
|
Transfer agent fees |
30,566 |
|
Distribution fees |
6,700 |
|
Accounting fees and expenses |
7,681 |
|
Non-interested trustees' compensation |
27 |
|
Custodian fees and expenses |
9,985 |
|
Registration fees |
30,108 |
|
Audit |
11,607 |
|
Legal |
10 |
|
Total expenses before reductions |
180,205 |
|
Expense reductions |
(46,120) |
134,085 |
Net investment income (loss) |
|
(76,926) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
275,347 |
|
Foreign currency transactions |
(3,796) |
|
Total net realized gain (loss) |
|
271,551 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
4,682,338 |
|
Assets and liabilities in foreign currencies |
(37) |
|
Total change in net unrealized appreciation (depreciation) |
|
4,682,301 |
Net gain (loss) |
|
4,953,852 |
Net increase (decrease) in net assets resulting from operations |
|
$ 4,876,926 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (76,926) |
Net realized gain (loss) |
271,551 |
Change in net unrealized appreciation (depreciation) |
4,682,301 |
Net increase (decrease) in net assets resulting |
4,876,926 |
Share transactions - net increase (decrease) |
78,956,576 |
Redemption fees |
21,102 |
Total increase (decrease) in net assets |
83,854,604 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $76,926) |
$ 83,854,604 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.51 |
Total Return B, C, D |
15.10% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.88% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.36% A |
Net investment income (loss) |
(.86)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,393 |
Portfolio turnover rate |
49% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.50 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.50 |
Total Return B, C, D |
15.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.10% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.61% A |
Net investment income (loss) |
(1.11)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,217 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.52 |
Total from investment operations |
1.48 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.48 |
Total Return B, C, D |
14.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.71% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 868 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.04) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.49 |
Redemption fees added to paid in capital E |
- |
Net asset value, end of period |
$ 11.49 |
Total Return B, C, D |
14.90% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.64% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.11% A |
Net investment income (loss) |
(1.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,286 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Growth
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.54 |
Total from investment operations |
1.52 |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.52 |
Total Return B, C |
15.20% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.50% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 76,979 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.02) |
Net realized and unrealized gain (loss) |
1.53 |
Total from investment operations |
1.51 |
Redemption fees added to paid in capital D |
- |
Net asset value, end of period |
$ 11.51 |
Total Return B, C |
15.10% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.59% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.11% A |
Net investment income (loss) |
(.61)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,112 |
Portfolio turnover rate |
49% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Growth Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Growth, and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
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. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 6,146,534 |
|
Unrealized depreciation |
(1,464,196) |
|
Net unrealized appreciation (depreciation) |
$ 4,682,338 |
|
Cost for federal income tax purposes |
$ 81,067,341 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $75,829,046 and $4,932,053, respectively.
Semiannual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .72% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 648 |
$ 386 |
Class T |
.25% |
.25% |
2,020 |
742 |
Class B |
.75% |
.25% |
1,792 |
1,738 |
Class C |
.75% |
.25% |
2,240 |
1,988 |
|
|
|
$ 6,700 |
$ 4,854 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
|
Class A |
$ 1,683 |
|
Class T |
772 |
|
Class B* |
7 |
|
Class C* |
- |
|
|
$ 2,462 |
|
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Growth. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Growth shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 585 |
.23* |
Class T |
1,039 |
.26* |
Class B |
426 |
.24* |
Class C |
503 |
.23* |
Small Cap Growth |
27,654 |
.27* |
Institutional Class |
359 |
.17* |
|
$ 30,566 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,006 for the period.
Semiannual Report
5. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
Class A |
1.50% |
$ 985 |
Class T |
1.75% |
1,409 |
Class B |
2.25% |
816 |
Class C |
2.25% |
869 |
Small Cap Growth |
1.25% |
25,756 |
Institutional Class |
1.25% |
713 |
|
|
$ 30,548 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $15,572 for the period.
6. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
At the end of the period, one otherwise unaffiliated shareholder was the owner of record of 12% of the outstanding shares of the fund.
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
For the period |
For the period |
Class A |
|
|
Shares sold |
121,341 |
$ 1,256,152 |
Shares redeemed |
(316) |
(3,547) |
Net increase (decrease) |
121,025 |
$ 1,252,605 |
Class T |
|
|
Shares sold |
192,771 |
$ 2,026,359 |
Shares redeemed |
- |
- |
Net increase (decrease) |
192,771 |
$ 2,026,359 |
Class B |
|
|
Shares sold |
75,583 |
$ 770,623 |
Shares redeemed |
(29) |
(316) |
Net increase (decrease) |
75,554 |
$ 770,307 |
Class C |
|
|
Shares sold |
111,985 |
$ 1,174,349 |
Shares redeemed |
- |
- |
Net increase (decrease) |
111,985 |
$ 1,174,349 |
Small Cap Growth |
|
|
Shares sold |
6,813,279 |
$ 74,190,613 |
Shares redeemed |
(130,949) |
(1,461,306) |
Net increase (decrease) |
6,682,330 |
$ 72,729,307 |
Institutional Class |
|
|
Shares sold |
96,575 |
$ 1,003,649 |
Shares redeemed |
- |
- |
Net increase (decrease) |
96,575 |
$ 1,003,649 |
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
SCP-USAN-0305
1.803699.100
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of the fund's investments. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,109.50 |
$ 3.90 B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63 C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.00 |
$ 4.55 B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89 C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Small Cap Value |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Value |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
5.4 |
RC2 Corp. |
4.9 |
Steven Madden Ltd. |
2.3 |
Holly Corp. |
2.1 |
Watts Water Technologies, Inc. Class A |
1.9 |
Oxford Industries, Inc. |
1.8 |
Pason Systems, Inc. |
1.8 |
Jarden Corp. |
1.6 |
Encore Acquisition Co. |
1.5 |
Interface, Inc. Class A |
1.4 |
|
24.7 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
28.4 |
Financials |
20.7 |
Energy |
17.6 |
Industrials |
11.9 |
Health Care |
5.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 92.1% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign |
12.0% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 92.1% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 28.4% |
|||
Auto Components - 0.7% |
|||
Spartan Motors, Inc. |
113,410 |
$ 1,254,315 |
|
Automobiles - 0.3% |
|||
National R.V. Holdings, Inc. (a) |
57,700 |
615,659 |
|
Distributors - 0.4% |
|||
WESCO International, Inc. (a) |
25,000 |
844,750 |
|
Hotels, Restaurants & Leisure - 3.7% |
|||
Ambassadors Group, Inc. |
3,650 |
124,100 |
|
CBRL Group, Inc. |
13,600 |
559,096 |
|
Cosi, Inc. (a) |
147,200 |
883,200 |
|
Famous Dave's of America, Inc. (a) |
89,900 |
1,069,810 |
|
Kerzner International Ltd. (a) |
14,470 |
872,975 |
|
La Quinta Corp. unit (a) |
106,300 |
923,747 |
|
Penn National Gaming, Inc. (a) |
29,340 |
1,924,411 |
|
Wyndham International, Inc. Class A (a) |
834,380 |
792,661 |
|
|
7,150,000 |
||
Household Durables - 3.0% |
|||
Interface, Inc. Class A (a) |
284,090 |
2,678,969 |
|
Jarden Corp. (a) |
65,650 |
3,019,900 |
|
Lifetime Hoan Corp. |
3,358 |
50,571 |
|
|
5,749,440 |
||
Leisure Equipment & Products - 6.1% |
|||
Marine Products Corp. |
35,820 |
907,321 |
|
MarineMax, Inc. (a) |
48,300 |
1,519,518 |
|
RC2 Corp. (a) |
322,990 |
9,350,561 |
|
|
11,777,400 |
||
Media - 0.5% |
|||
Emmis Communications Corp. Class A (a) |
51,900 |
911,883 |
|
Multiline Retail - 0.7% |
|||
Saks, Inc. |
40,300 |
573,469 |
|
Tuesday Morning Corp. (a) |
27,300 |
784,329 |
|
|
1,357,798 |
||
Specialty Retail - 7.4% |
|||
Asbury Automotive Group, Inc. (a) |
57,800 |
975,664 |
|
Cost Plus, Inc. (a) |
60,630 |
1,590,325 |
|
Genesco, Inc. (a) |
32,990 |
954,731 |
|
Hot Topic, Inc. (a) |
90,915 |
1,761,933 |
|
Kirkland's, Inc. (a) |
77,000 |
800,030 |
|
La Senza Corp. (sub. vtg.) |
19,100 |
186,221 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Specialty Retail - continued |
|||
Le Chateau, Inc.: |
|
|
|
Class A (sub. vtg.) (c) |
17,400 |
$ 312,304 |
|
Class A (sub. vtg.) |
15,100 |
301,136 |
|
Lithia Motors, Inc. Class A (sub. vtg.) |
37,525 |
1,019,930 |
|
Monro Muffler Brake, Inc. (a) |
4,100 |
106,354 |
|
Pacific Sunwear of California, Inc. (a) |
56,300 |
1,378,787 |
|
RONA, Inc. (a) |
58,240 |
2,119,269 |
|
Select Comfort Corp. (a) |
31,340 |
613,324 |
|
Sonic Automotive, Inc. Class A (sub. vtg.) |
39,800 |
929,728 |
|
Steiner Leisure Ltd. (a) |
17,030 |
528,254 |
|
The Cato Corp. Class A (sub. vtg.) |
17,240 |
524,096 |
|
|
14,102,086 |
||
Textiles, Apparel & Luxury Goods - 5.6% |
|||
Ashworth, Inc. (a) |
39,900 |
449,673 |
|
Oxford Industries, Inc. |
91,560 |
3,404,201 |
|
Steven Madden Ltd. (a) |
223,110 |
4,283,712 |
|
Tommy Hilfiger Corp. (a) |
161,130 |
1,582,297 |
|
True Religion Apparel, Inc. (a) |
103,900 |
950,685 |
|
|
10,670,568 |
||
TOTAL CONSUMER DISCRETIONARY |
54,433,899 |
||
CONSUMER STAPLES - 1.8% |
|||
Food Products - 1.8% |
|||
Green Mountain Coffee Roasters, Inc. (a) |
99,480 |
2,432,286 |
|
Hines Horticulture, Inc. (a) |
72,530 |
275,614 |
|
Poore Brothers, Inc. (a) |
122,530 |
412,926 |
|
Ridley, Inc. (a) |
44,600 |
344,998 |
|
|
3,465,824 |
||
ENERGY - 17.6% |
|||
Energy Equipment & Services - 3.3% |
|||
Maverick Tube Corp. (a) |
58,620 |
1,996,597 |
|
Oil States International, Inc. (a) |
28,860 |
549,783 |
|
Pason Systems, Inc. |
107,650 |
3,340,398 |
|
Willbros Group, Inc. (a) |
19,960 |
427,942 |
|
|
6,314,720 |
||
Oil & Gas - 14.3% |
|||
Blackrock Ventures, Inc. (a) |
166,490 |
1,297,255 |
|
Denbury Resources, Inc. (a) |
75,590 |
2,207,228 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Encore Acquisition Co. (a) |
79,080 |
$ 2,949,684 |
|
General Maritime Corp. (a) |
8,660 |
397,494 |
|
Holly Corp. |
132,750 |
4,017,015 |
|
Penn Virginia Corp. |
45,670 |
1,934,581 |
|
Quicksilver Resources, Inc. (a) |
231,100 |
10,267,765 |
|
Range Resources Corp. |
102,150 |
2,266,709 |
|
Thunder Energy, Inc. (a) |
268,860 |
1,826,268 |
|
Top Tankers, Inc. |
20,400 |
344,556 |
|
|
27,508,555 |
||
TOTAL ENERGY |
33,823,275 |
||
FINANCIALS - 20.7% |
|||
Capital Markets - 0.2% |
|||
Affiliated Managers Group, Inc. (a) |
6,000 |
380,460 |
|
Commercial Banks - 3.0% |
|||
Cathay General Bancorp |
30,120 |
1,094,260 |
|
Center Financial Corp., California |
82,960 |
1,726,398 |
|
Hanmi Financial Corp. |
37,520 |
1,333,086 |
|
Nara Bancorp, Inc. |
25,300 |
504,735 |
|
Wintrust Financial Corp. |
20,260 |
1,124,025 |
|
|
5,782,504 |
||
Consumer Finance - 0.5% |
|||
ACE Cash Express, Inc. (a) |
35,490 |
936,936 |
|
Diversified Financial Services - 0.9% |
|||
Marlin Business Services Corp. (a) |
99,100 |
1,803,620 |
|
Insurance - 8.0% |
|||
Arch Capital Group Ltd. (a) |
11,090 |
407,336 |
|
HCC Insurance Holdings, Inc. |
54,680 |
1,797,332 |
|
Hilb Rogal & Hobbs Co. |
24,650 |
876,554 |
|
IPC Holdings Ltd. |
54,600 |
2,304,666 |
|
National Interstate Corp. |
1,300 |
20,215 |
|
Philadelphia Consolidated Holding Corp. (a) |
12,580 |
843,741 |
|
RLI Corp. |
37,520 |
1,630,619 |
|
Specialty Underwriters' Alliance, Inc. |
174,900 |
1,708,773 |
|
StanCorp Financial Group, Inc. |
11,900 |
1,011,500 |
|
United America Indemnity Ltd. Class A |
127,412 |
2,293,416 |
|
USI Holdings Corp. (a) |
214,230 |
2,420,799 |
|
|
15,314,951 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
FINANCIALS - continued |
|||
Real Estate - 6.7% |
|||
American Campus Communities, Inc. |
44,620 |
$ 903,555 |
|
American Financial Realty Trust (SBI) |
63,800 |
960,190 |
|
CarrAmerica Realty Corp. |
18,360 |
557,226 |
|
Education Realty Trust, Inc. |
56,300 |
945,277 |
|
Extra Space Storage, Inc. |
47,000 |
609,590 |
|
Far East Consortium International Ltd. |
1,175,000 |
459,464 |
|
Feldman Mall Properties, Inc. |
125,000 |
1,600,000 |
|
GMH Communities Trust |
69,100 |
901,064 |
|
Highwoods Properties, Inc. (SBI) |
43,900 |
1,075,550 |
|
Kilroy Realty Corp. |
37,080 |
1,449,086 |
|
Macquarie Goodman Industrial Trust |
920,400 |
1,697,130 |
|
Pan Pacific Retail Properties, Inc. |
14,500 |
839,405 |
|
Reckson Associates Realty Corp. |
24,570 |
753,808 |
|
|
12,751,345 |
||
Thrifts & Mortgage Finance - 1.4% |
|||
Bank Mutual Corp. |
88,100 |
1,064,248 |
|
KNBT Bancorp, Inc. |
25,600 |
424,448 |
|
NetBank, Inc. |
118,100 |
1,127,855 |
|
|
2,616,551 |
||
TOTAL FINANCIALS |
39,586,367 |
||
HEALTH CARE - 5.4% |
|||
Biotechnology - 0.2% |
|||
Stratagene Corp. (a) |
61,700 |
407,220 |
|
Health Care Equipment & Supplies - 1.3% |
|||
Dade Behring Holdings, Inc. (a) |
9,540 |
545,211 |
|
DJ Orthopedics, Inc. (a) |
59,880 |
1,446,102 |
|
Orthofix International NV (a) |
10,790 |
431,384 |
|
|
2,422,697 |
||
Health Care Providers & Services - 3.7% |
|||
Air Methods Corp. (a) |
104,700 |
778,968 |
|
America Service Group, Inc. (a) |
32,860 |
901,350 |
|
DaVita, Inc. (a) |
9,650 |
404,914 |
|
Horizon Health Corp. (a) |
18,400 |
560,280 |
|
ICON PLC sponsored ADR (a) |
52,960 |
1,859,955 |
|
Medtox Scientific, Inc. (a) |
199,090 |
1,632,538 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Per-Se Technologies, Inc. (a) |
31,957 |
$ 466,572 |
|
PSS World Medical, Inc. (a) |
32,730 |
410,762 |
|
|
7,015,339 |
||
Pharmaceuticals - 0.2% |
|||
Connetics Corp. (a) |
11,500 |
280,830 |
|
Par Pharmaceutical Companies, Inc. (a) |
4,000 |
151,600 |
|
|
432,430 |
||
TOTAL HEALTH CARE |
10,277,686 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 0.5% |
|||
BE Aerospace, Inc. (a) |
65,760 |
709,550 |
|
Ceramic Protection Corp. (a) |
16,700 |
318,243 |
|
|
1,027,793 |
||
Air Freight & Logistics - 1.6% |
|||
Dynamex, Inc. (a) |
13,820 |
250,142 |
|
Hub Group, Inc. Class A (a) |
10,660 |
580,544 |
|
Park-Ohio Holdings Corp. (a) |
92,620 |
2,284,935 |
|
|
3,115,621 |
||
Building Products - 0.2% |
|||
Quixote Corp. |
22,300 |
445,777 |
|
Commercial Services & Supplies - 1.7% |
|||
Banta Corp. |
10,900 |
472,079 |
|
Cenveo, Inc. (a) |
213,130 |
628,734 |
|
Herman Miller, Inc. |
36,380 |
972,074 |
|
Standard Parking Corp. |
50,200 |
761,534 |
|
Waste Services, Inc. (a) |
95,000 |
313,500 |
|
|
3,147,921 |
||
Construction & Engineering - 1.9% |
|||
Comfort Systems USA, Inc. (a) |
339,600 |
2,312,676 |
|
Granite Construction, Inc. |
11,400 |
283,860 |
|
URS Corp. (a) |
35,000 |
987,350 |
|
|
3,583,886 |
||
Electrical Equipment - 1.1% |
|||
A.O. Smith Corp. |
16,000 |
433,760 |
|
Acuity Brands, Inc. |
61,650 |
1,693,526 |
|
|
2,127,286 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Industrial Conglomerates - 0.9% |
|||
Carlisle Companies, Inc. |
20,800 |
$ 1,311,856 |
|
Walter Industries, Inc. |
11,600 |
406,232 |
|
|
1,718,088 |
||
Machinery - 3.6% |
|||
Manitowoc Co., Inc. |
42,960 |
1,563,744 |
|
Tennant Co. |
24,000 |
929,040 |
|
Trinity Industries, Inc. |
6,082 |
183,981 |
|
Wabtec Corp. |
35,900 |
669,176 |
|
Watts Water Technologies, Inc. Class A |
111,410 |
3,570,691 |
|
|
6,916,632 |
||
Marine - 0.1% |
|||
Alexander & Baldwin, Inc. |
4,000 |
184,000 |
|
Trading Companies & Distributors - 0.3% |
|||
UAP Holding Corp. |
32,000 |
480,000 |
|
TOTAL INDUSTRIALS |
22,747,004 |
||
INFORMATION TECHNOLOGY - 4.0% |
|||
Electronic Equipment & Instruments - 1.2% |
|||
KEMET Corp. (a) |
123,800 |
1,046,110 |
|
Mettler-Toledo International, Inc. (a) |
18,430 |
924,449 |
|
Winland Electronics, Inc. (a) |
72,860 |
289,254 |
|
|
2,259,813 |
||
Internet Software & Services - 1.0% |
|||
Cryptologic, Inc. |
20,260 |
501,337 |
|
j2 Global Communications, Inc. (a) |
3,960 |
128,621 |
|
Mediagrif Interactive Technologies, Inc. (a) |
101,250 |
803,604 |
|
Vitria Technology, Inc. (a) |
105,590 |
432,919 |
|
|
1,866,481 |
||
Semiconductors & Semiconductor Equipment - 1.1% |
|||
Cascade Microtech, Inc. |
37,000 |
392,200 |
|
Fairchild Semiconductor International, Inc. (a) |
70,000 |
998,900 |
|
MKS Instruments, Inc. (a) |
47,700 |
746,505 |
|
|
2,137,605 |
||
Software - 0.7% |
|||
Moldflow Corp. (a) |
79,580 |
1,344,902 |
|
TOTAL INFORMATION TECHNOLOGY |
7,608,801 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
MATERIALS - 2.3% |
|||
Chemicals - 2.0% |
|||
Albemarle Corp. |
16,500 |
$ 579,315 |
|
Cytec Industries, Inc. |
15,070 |
768,570 |
|
Pioneer Companies, Inc. (a) |
115,290 |
2,463,747 |
|
|
3,811,632 |
||
Metals & Mining - 0.3% |
|||
Massey Energy Co. |
18,250 |
692,223 |
|
TOTAL MATERIALS |
4,503,855 |
||
TOTAL COMMON STOCKS (Cost $170,461,828) |
176,446,711 |
||
Money Market Funds - 8.6% |
|||
|
|
|
|
Fidelity Cash Central Fund, 2.31% (b) |
16,381,642 |
16,381,642 |
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $186,843,470) |
192,828,353 |
||
NET OTHER ASSETS - (0.7)% |
(1,341,346) |
||
NET ASSETS - 100% |
$ 191,487,007 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(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 $312,304 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
Le Chateau, Inc. Class A (sub. vtg.) |
12/16/04 |
$ 321,007 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
88.0% |
Canada |
6.0% |
Bermuda |
1.4% |
Cayman Islands |
1.2% |
Ireland |
1.0% |
Others (individually less than 1%) |
2.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (cost $186,843,470) - See accompanying schedule |
|
$ 192,828,353 |
Foreign currency held at value (cost $113,820) |
|
113,669 |
Receivable for investments sold |
|
2,558,421 |
Receivable for fund shares sold |
|
1,234,960 |
Dividends receivable |
|
40,072 |
Interest receivable |
|
34,569 |
Prepaid expenses |
|
69,563 |
Other affiliated receivables |
|
1,055 |
Other receivables |
|
28,689 |
Total assets |
|
196,909,351 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 5,180,265 |
|
Payable for fund shares redeemed |
70,768 |
|
Accrued management fee |
116,361 |
|
Distribution fees payable |
4,145 |
|
Other affiliated payables |
32,382 |
|
Other payables and accrued expenses |
18,423 |
|
Total liabilities |
|
5,422,344 |
|
|
|
Net Assets |
|
$ 191,487,007 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 185,399,299 |
Accumulated net investment loss |
|
(173,598) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
276,113 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
5,985,193 |
Net Assets |
|
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.09 |
|
|
|
Maximum offering price per share (100/94.25 of $11.09) |
|
$ 11.77 |
Class T: |
|
$ 11.10 |
|
|
|
Maximum offering price per share (100/96.50 of $11.10) |
|
$ 11.50 |
Class B: |
|
$ 11.08 |
|
|
|
Class C: |
|
$ 11.08 |
|
|
|
|
|
|
Small Cap Value: |
|
$ 11.10 |
|
|
|
Institutional Class: |
|
$ 11.10 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 122,601 |
Interest |
|
70,806 |
Total income |
|
193,407 |
|
|
|
Expenses |
|
|
Management fee |
$ 186,717 |
|
Transfer agent fees |
60,981 |
|
Distribution fees |
7,997 |
|
Accounting fees and expenses |
12,551 |
|
Non-interested trustees' compensation |
51 |
|
Custodian fees and expenses |
21,404 |
|
Registration fees |
43,403 |
|
Audit |
11,637 |
|
Legal |
12 |
|
Total expenses before reductions |
344,753 |
|
Expense reductions |
(47,342) |
297,411 |
Net investment income (loss) |
|
(104,004) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
256,343 |
|
Foreign currency transactions |
19,770 |
|
Total net realized gain (loss) |
|
276,113 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
5,984,883 |
|
Assets and liabilities in foreign currencies |
310 |
|
Total change in net unrealized appreciation (depreciation) |
|
5,985,193 |
Net gain (loss) |
|
6,261,306 |
Net increase (decrease) in net assets resulting from operations |
|
$ 6,157,302 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (104,004) |
Net realized gain (loss) |
276,113 |
Change in net unrealized appreciation (depreciation) |
5,985,193 |
Net increase (decrease) in net assets resulting |
6,157,302 |
Distributions to shareholders from net investment income |
(69,594) |
Share transactions - net increase (decrease) |
185,372,117 |
Redemption fees |
27,182 |
Total increase (decrease) in net assets |
191,487,007 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $173,598) |
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.09 |
Total Return B, C, D |
10.95% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.75% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.39% A |
Net investment income (loss) |
(.63)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,147 |
Portfolio turnover rate |
51% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.10 |
Total Return B, C, D |
11.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.07% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.64% A |
Net investment income (loss) |
(.88)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,304 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.56% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,414 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.43% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 3,040 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.31% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 181,522 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.48% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,060 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Value Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Value and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 10,083,627 |
|
Unrealized depreciation |
(4,158,686) |
|
Net unrealized appreciation (depreciation) |
$ 5,924,941 |
|
Cost for federal income tax purposes |
$ 186,903,412 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the fund's Schedule of Investments.
Semiannual Report
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $181,634,225 and $11,402,518, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 846 |
$ 366 |
Class T |
.25% |
.25% |
1,730 |
732 |
Class B |
.75% |
.25% |
2,162 |
1,999 |
Class C |
.75% |
.25% |
3,259 |
2,344 |
|
|
|
$ 7,997 |
$ 5,441 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 4,302 |
Class T |
1,849 |
Class B * |
98 |
Class C * |
- |
|
$ 6,249 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Value. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Value shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 868 |
.26* |
Class T |
1,158 |
.34* |
Class B |
534 |
.25* |
Class C |
627 |
.19* |
Small Cap Value |
57,440 |
.24* |
Institutional Class |
354 |
.17* |
|
$ 60,981 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $61,054 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $14,231 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
|
|
|
Class A |
1.50% |
$ 839 |
Class T |
1.75% |
1,091 |
Class B |
2.25% |
666 |
Class C |
2.25% |
571 |
Small Cap Value |
1.25% |
15,034 |
Institutional Class |
1.25% |
476 |
|
|
$ 18,677 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $28,665 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
November 3, 2004
(commencement
of operations) to |
From net investment income |
|
Class A |
$ 723 |
Small Cap Value |
68,438 |
Institutional Class |
433 |
Total |
$ 69,594 |
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
November 3, 2004 (commencement of operations) to January 31, 2005 |
November 3, 2004 (commencement of operations) to January 31, 2005 |
Class A |
|
|
Shares sold |
193,487 |
$ 2,028,329 |
Reinvestment of distributions |
54 |
590 |
Net increase (decrease) |
193,541 |
$ 2,028,919 |
Class T |
|
|
Shares sold |
207,872 |
$ 2,197,638 |
Shares redeemed |
(229) |
(2,544) |
Net increase (decrease) |
207,643 |
$ 2,195,094 |
Class B |
|
|
Shares sold |
127,792 |
$ 1,329,789 |
Shares redeemed |
(189) |
(2,048) |
Net increase (decrease) |
127,603 |
$ 1,327,741 |
Class C |
|
|
Shares sold |
276,817 |
$ 2,931,865 |
Shares redeemed |
(2,521) |
(27,703) |
Net increase (decrease) |
274,296 |
$ 2,904,162 |
Small Cap Value |
|
|
Shares sold |
16,534,181 |
$ 177,946,027 |
Reinvestment of distributions |
6,024 |
66,449 |
Shares redeemed |
(191,628) |
(2,079,070) |
Net increase (decrease) |
16,348,577 |
$ 175,933,406 |
Institutional Class |
|
|
Shares sold |
95,449 |
$ 982,362 |
Reinvestment of distributions |
39 |
433 |
Net increase (decrease) |
95,488 |
$ 982,795 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
SCV-USAN-0305
1.803708.100
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Changes |
6 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
24 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
28 |
Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm |
33 |
|
Top Fifty Securities and Derivatives of Fidelity's Fixed-Income Central Fund |
35 |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,071.80 |
$ 4.49 |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,020.87 |
$ 4.38 |
* Expenses are equal to the Fund's annualized expense ratio of .86%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Five Stocks as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
MFA Mortgage Investments, Inc. Series A, 8.50% |
0.9 |
0.9 |
Annaly Mortgage Management, Inc. |
0.9 |
1.1 |
Apartment Investment & Management Co. |
0.9 |
1.2 |
LaSalle Hotel Properties Series A, 10.25% |
0.8 |
1.2 |
Affordable Residential Communties, Inc. |
0.8 |
1.1 |
|
4.3 |
|
Top Five Bonds as of January 31, 2005 |
||
(with maturities greater than one year) |
% of fund's |
% of fund's net assets |
J.P. Morgan Commercial Mortgage Finance Corp. Series 1997-C5 Class F, 7.5605% 9/15/29 |
1.1 |
1.3 |
MeriStar Hospitality Corp. 9% 1/15/08 |
0.7 |
0.7 |
LNR Property Corp. Tranche B, term loan 5.59% 1/31/08 |
0.7 |
0.0 |
Banc of America Large Loan, Inc. floater Series 2003-BBA2 Class A3, 2.8% 11/15/15 |
0.7 |
0.0 |
Cohen Financial Capital Management LLC 9% 6/1/14 |
0.7 |
0.0 |
|
3.9 |
|
Top Five REIT Sectors as of January 31, 2005 |
||
|
% of fund's |
% of fund's net assets |
REITs - Mortgage |
10.2 |
6.7 |
REITs - Office Buildings |
7.5 |
8.7 |
REITs - Management/Investment |
6.8 |
5.7 |
REITs - Shopping Centers |
6.6 |
7.3 |
REITs - Apartments |
6.6 |
6.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005 * |
As of July 31, 2004 ** |
||||||
![]() |
Stocks 45.0% |
|
![]() |
Stocks 45.7% |
|
||
![]() |
Bonds 45.1% |
|
![]() |
Bonds 43.5% |
|
||
![]() |
Convertible |
|
![]() |
Convertible |
|
||
![]() |
Other Investments 3.3% |
|
![]() |
Other Investments 2.3% |
|
||
![]() |
Short-Term |
|
![]() |
Short-Term |
|
||
* Foreign investments |
1.4% |
|
** Foreign investments |
1.4% |
|
The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 15.8% |
|||
Shares |
Value |
||
CONSUMER DISCRETIONARY - 0.4% |
|||
Household Durables - 0.4% |
|||
KB Home |
12,200 |
$ 1,325,530 |
|
Ryland Group, Inc. |
18,000 |
1,167,660 |
|
|
2,493,190 |
||
FINANCIALS - 15.4% |
|||
Real Estate - 15.4% |
|||
Aames Investment Corp. Maryland |
50,000 |
524,500 |
|
Acadia Realty Trust (SBI) |
190,300 |
3,056,218 |
|
AMB Property Corp. (SBI) |
21,000 |
781,830 |
|
American Campus Communities, Inc. |
62,000 |
1,255,500 |
|
American Financial Realty Trust (SBI) |
91,600 |
1,378,580 |
|
Annaly Mortgage Management, Inc. |
52,000 |
1,019,200 |
|
Anworth Mortgage Asset Corp. |
86,500 |
861,540 |
|
Apartment Investment & Management Co. Class A |
18,000 |
646,200 |
|
Arbor Realty Trust, Inc. |
36,900 |
878,220 |
|
Arden Realty, Inc. |
20,100 |
677,772 |
|
AvalonBay Communities, Inc. |
18,900 |
1,264,788 |
|
Bimini Mortgage Management, Inc. |
176,700 |
2,669,937 |
|
BNP Residential Properties, Inc. |
64,400 |
1,038,128 |
|
Boston Properties, Inc. |
27,200 |
1,571,616 |
|
Capital Lease Funding, Inc. |
105,000 |
1,310,400 |
|
Catellus Development Corp. |
42,200 |
1,131,804 |
|
Commercial Net Lease Realty, Inc. |
34,800 |
652,500 |
|
Cornerstone Realty Income Trust, Inc. |
207,600 |
1,995,036 |
|
Duke Realty Corp. |
77,000 |
2,394,700 |
|
Eagle Hospitality Properties Trust, Inc. |
141,600 |
1,386,264 |
|
Education Realty Trust, Inc. |
79,900 |
1,341,521 |
|
Equity Lifestyle Properties, Inc. |
68,030 |
2,332,068 |
|
Equity Residential (SBI) |
81,300 |
2,564,202 |
|
Federal Realty Investment Trust (SBI) |
66,200 |
3,123,316 |
|
General Growth Properties, Inc. |
117,740 |
3,740,600 |
|
Glenborough Realty Trust, Inc. |
92,800 |
1,787,328 |
|
GMH Communities Trust |
76,000 |
991,040 |
|
Health Care Property Investors, Inc. |
11,500 |
298,540 |
|
Health Care REIT, Inc. |
61,100 |
2,046,850 |
|
Healthcare Realty Trust, Inc. |
42,800 |
1,560,916 |
|
Hersha Hospitality Trust |
127,700 |
1,405,977 |
|
Home Properties of New York, Inc. |
6,000 |
242,400 |
|
HomeBanc Mortgage Corp., Georgia |
127,000 |
1,191,260 |
|
Impac Mortgage Holdings, Inc. |
32,700 |
746,868 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
FINANCIALS - continued |
|||
Real Estate - continued |
|||
Inland Real Estate Corp. |
221,100 |
$ 3,354,087 |
|
Kimco Realty Corp. |
55,700 |
2,950,986 |
|
Lexington Corporate Properties Trust |
99,300 |
2,125,020 |
|
LTC Properties, Inc. |
35,000 |
681,800 |
|
Luminent Mortgage Capital, Inc. |
50,000 |
556,500 |
|
MeriStar Hospitality Corp. (a) |
110,000 |
849,200 |
|
MFA Mortgage Investments, Inc. |
115,600 |
966,416 |
|
MortgageIT Holdings, Inc. |
126,600 |
2,297,790 |
|
Nationwide Health Properties, Inc. |
55,700 |
1,208,133 |
|
New Century Financial Corp. |
23,300 |
1,395,437 |
|
Newcastle Investment Corp. |
45,500 |
1,375,920 |
|
Origen Financial, Inc. (d) |
100,000 |
800,000 |
|
Origen Financial, Inc. |
70,600 |
564,800 |
|
Prentiss Properties Trust (SBI) |
40,600 |
1,454,698 |
|
Redwood Trust, Inc. |
17,000 |
963,220 |
|
Regency Centers Corp. |
18,500 |
913,900 |
|
Saxon Capital, Inc. |
39,500 |
855,175 |
|
Simon Property Group, Inc. |
47,004 |
2,787,337 |
|
Spirit Finance Corp. (d) |
200,000 |
2,380,000 |
|
Spirit Finance Corp. |
50,000 |
595,000 |
|
Sunstone Hotel Investors, Inc. |
67,700 |
1,414,930 |
|
The St. Joe Co. |
10,100 |
694,880 |
|
Trizec Properties, Inc. |
132,000 |
2,337,720 |
|
U-Store-It Trust |
60,000 |
984,000 |
|
U.S. Restaurant Properties, Inc. |
25,100 |
420,425 |
|
United Dominion Realty Trust, Inc. (SBI) |
68,900 |
1,530,958 |
|
Ventas, Inc. |
89,400 |
2,288,640 |
|
Vornado Realty Trust |
38,500 |
2,661,890 |
|
W.P. Carey & Co. LLC |
40,900 |
1,321,070 |
|
|
92,597,551 |
||
TOTAL COMMON STOCKS (Cost $84,444,496) |
95,090,741 |
||
Preferred Stocks - 30.0% |
|||
Shares |
Value |
||
Convertible Preferred Stocks - 0.8% |
|||
FINANCIALS - 0.8% |
|||
Real Estate - 0.8% |
|||
Crescent Real Estate Equities Co. Series A, 6.75% |
17,700 |
$ 393,825 |
|
Equity Office Properties Trust Series B, 5.25% |
74,000 |
3,777,700 |
|
Glenborough Realty Trust, Inc. Series A, 7.75% |
38,330 |
976,265 |
|
|
5,147,790 |
||
Nonconvertible Preferred Stocks - 29.2% |
|||
CONSUMER DISCRETIONARY - 0.0% |
|||
Hotels, Restaurants & Leisure - 0.0% |
|||
Hilton Hotels Corp. 8.00% |
4,800 |
126,288 |
|
FINANCIALS - 29.2% |
|||
Diversified Financial Services - 0.6% |
|||
Westcoast Hospitality Capital Trust 9.50% |
135,000 |
3,600,450 |
|
Real Estate - 28.6% |
|||
Accredited Mortgage Loan Trust Series A, 9.75% |
162,595 |
4,349,416 |
|
Affordable Residential Communties, Inc. Series A, 8.25% |
184,000 |
4,839,200 |
|
Alexandria Real Estate Equities, Inc.: |
|
|
|
Series B, 9.10% |
101,200 |
2,747,580 |
|
Series C, 8.375% |
25,000 |
669,000 |
|
American Home Mortgage Investment Corp.: |
|
|
|
Series A, 9.375% |
120,000 |
3,199,200 |
|
Series B, 9.25% |
82,000 |
2,148,400 |
|
Annaly Mortgage Management, Inc. Series A, 7.875% |
207,000 |
5,222,610 |
|
Anthracite Capital, Inc. Series C, 9.375% |
46,000 |
1,239,700 |
|
Anworth Mortgage Asset Corp. Series A, 8.625% |
66,727 |
1,684,857 |
|
Apartment Investment & Management Co.: |
|
|
|
Series G, 9.375% |
66,600 |
1,811,520 |
|
Series Q, 10.10% |
82,490 |
2,205,783 |
|
Series R, 10.00% |
96,800 |
2,605,856 |
|
Series T, 8.00% |
204,400 |
5,222,420 |
|
Series U, 7.75% |
48,812 |
1,225,181 |
|
Series V, 8.00% |
40,000 |
1,023,600 |
|
Series Y, 7.875% |
40,000 |
1,003,200 |
|
Ashford Hospitality Trust, Inc. Series A, 8.55% |
100,000 |
2,640,000 |
|
Bedford Property Investors, Inc.: |
|
|
|
Series A, 8.75% (d) |
69,000 |
3,657,000 |
|
Series B, 7.625% |
64,800 |
1,668,600 |
|
Brandywine Realty Trust Series C, 7.50% |
54,000 |
1,385,100 |
|
Capital Automotive 6.75% |
153,000 |
3,880,080 |
|
Preferred Stocks - continued |
|||
Shares |
Value |
||
Nonconvertible Preferred Stocks - continued |
|||
FINANCIALS - continued |
|||
Real Estate - continued |
|||
CBL & Associates Properties, Inc.: |
|
|
|
(depositary shares) Series C, 7.75% |
48,600 |
$ 1,275,750 |
|
Series B, 8.75% |
60,000 |
3,297,000 |
|
Cedar Shopping Centers, Inc. 8.875% |
80,000 |
2,144,000 |
|
CenterPoint Properties Trust Series D, 5.377% |
3,000 |
3,000,000 |
|
Colonial Properties Trust Series C, 9.25% |
30,000 |
793,800 |
|
Commercial Net Lease Realty, Inc. Series A, 9.00% |
19,200 |
520,320 |
|
Cousins Properties, Inc.: |
|
|
|
Series A, 7.75% |
131,700 |
3,397,860 |
|
Series B, 7.50% |
40,000 |
1,010,000 |
|
Crescent Real Estate Equities Co. Series B, 9.50% |
10,400 |
276,120 |
|
CRT Properties, Inc. Series A, 8.50% |
25,000 |
660,500 |
|
Developers Diversified Realty Corp. (depositary shares): |
|
|
|
Class F, 8.60% |
7,200 |
194,040 |
|
Class G, 8.00% |
42,800 |
1,144,044 |
|
Duke Realty Corp. (depositary shares) Series B, 7.99% |
63,700 |
3,264,625 |
|
Eastgroup Properties, Inc. Series D, 7.95% |
104,000 |
2,766,400 |
|
Entertainment Properties Trust Series A 9.50% |
40,000 |
1,096,000 |
|
Equity Inns, Inc. Series B, 8.75% |
60,000 |
1,592,400 |
|
Federal Realty Investment Trust Series B, 8.50% |
11,600 |
310,416 |
|
Glimcher Realty Trust: |
|
|
|
Series F, 8.75% |
62,000 |
1,626,260 |
|
Series G, 8.125% |
127,000 |
3,302,000 |
|
Health Care REIT, Inc.: |
|
|
|
Series D, 7.875% |
30,000 |
788,100 |
|
Series F, 7.625% |
40,000 |
1,020,000 |
|
Highwoods Properties, Inc.: |
|
|
|
(depositary shares) Series D, 8.00% |
36,300 |
910,404 |
|
Series A, 8.625% |
214 |
213,465 |
|
Series B, 8.00% |
37,500 |
947,250 |
|
Host Marriott Corp.: |
|
|
|
Class B, 10.00% |
22,300 |
570,434 |
|
Class C, 10.00% |
8,500 |
226,270 |
|
Series E, 8.875% |
40,000 |
1,108,000 |
|
HRPT Properties Trust: |
|
|
|
Series A, 9.875% |
11,500 |
304,750 |
|
Series B, 8.75% |
29,700 |
807,840 |
|
Impac Mortgage Holdings, Inc. Series C, 9.125% |
130,000 |
3,347,500 |
|
Innkeepers USA Trust Series C, 8.00% |
70,000 |
1,799,000 |
|
Preferred Stocks - continued |
|||
Shares |
Value |
||
Nonconvertible Preferred Stocks - continued |
|||
FINANCIALS - continued |
|||
Real Estate - continued |
|||
iStar Financial, Inc.: |
|
|
|
Series D, 8.00% |
4,000 |
$ 102,320 |
|
Series E, 7.875% |
27,000 |
704,700 |
|
Series F, 7.80% |
13,800 |
360,870 |
|
Kilroy Realty Corp. Series E, 7.80% |
44,000 |
1,117,600 |
|
Kramont Realty Trust Series E, 8.25% |
140,000 |
3,542,000 |
|
La Quinta Properties, Inc. (depositary shares) Series A, 9.00% (a) |
10,000 |
257,500 |
|
LaSalle Hotel Properties: |
|
|
|
Series A, 10.25% |
178,900 |
4,955,530 |
|
Series B, 8.375% |
19,400 |
529,620 |
|
Lexington Corporate Properties Trust Series B, 8.05% |
124,500 |
3,261,900 |
|
LTC Properties, Inc. Series F, 8.00% |
79,300 |
2,061,800 |
|
MFA Mortgage Investments, Inc. Series A, 8.50% |
209,400 |
5,371,110 |
|
Mid-America Apartment Communities, Inc. Series H, 8.30% |
127,800 |
3,361,140 |
|
Nationwide Health Properties, Inc. 7.677% |
36,439 |
3,807,876 |
|
New Plan Excel Realty Trust (depositary shares) Series D, 7.80% |
22,231 |
1,161,570 |
|
Newcastle Investment Corp. Series B, 9.75% |
149,700 |
4,139,205 |
|
Novastar Financial, Inc. Series C, 8.90% |
35,800 |
918,986 |
|
Omega Healthcare Investors, Inc.: |
|
|
|
Series B, 8.625% |
32,000 |
813,440 |
|
Series D, 8.375% |
159,800 |
4,135,624 |
|
Parkway Properties, Inc. Series D, 8.00% |
165,000 |
4,323,000 |
|
Prime Group Realty Trust Series B, 9.00% |
45,600 |
1,140,000 |
|
ProLogis Series C, 8.54% |
6,478 |
370,866 |
|
PS Business Parks, Inc.: |
|
|
|
(depositary shares) 7.60% |
32,500 |
835,250 |
|
(depositary shares) Series F, 8.75% |
21,500 |
577,275 |
|
Series D, 9.50% |
28,100 |
751,675 |
|
RAIT Investment Trust: |
|
|
|
Series A, 7.75% |
185,900 |
4,666,090 |
|
Series B, 8.375% |
111,300 |
2,820,342 |
|
Realty Income Corp. 8.25% |
76,800 |
2,162,688 |
|
Saul Centers, Inc. 8.00% |
156,800 |
4,131,680 |
|
Simon Property Group, Inc.: |
|
|
|
Series G, 7.89% |
28,900 |
1,550,485 |
|
Series J, 8.375% |
17,100 |
1,026,000 |
|
SNH Capital Trust I Series Z, 10.125% |
43,300 |
1,162,605 |
|
Preferred Stocks - continued |
|||
Shares |
Value |
||
Nonconvertible Preferred Stocks - continued |
|||
FINANCIALS - continued |
|||
Real Estate - continued |
|||
Taubman Centers, Inc.: |
|
|
|
Series A, 8.30% |
86,500 |
$ 2,184,125 |
|
Series G, 8.00% |
25,000 |
643,750 |
|
The Mills Corp.: |
|
|
|
Series B, 9.00% |
25,000 |
682,500 |
|
Series C, 9.00% |
63,100 |
1,720,106 |
|
Series E, 8.75% |
44,100 |
1,193,346 |
|
United Dominion Realty Trust, Inc. Series B, 8.60% |
12,500 |
341,125 |
|
Winston Hotels, Inc. Series B, 8.00% |
35,600 |
916,700 |
|
|
171,945,250 |
||
TOTAL FINANCIALS |
175,545,700 |
||
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
175,671,988 |
||
TOTAL PREFERRED STOCKS (Cost $174,727,150) |
180,819,778 |
Nonconvertible Bonds - 25.1% |
||||
|
Principal Amount |
|
||
CONSUMER DISCRETIONARY - 3.5% |
||||
Hotels, Restaurants & Leisure - 1.4% |
||||
Felcor Lodging LP 9% 6/1/11 (f) |
|
$ 1,000,000 |
1,125,000 |
|
Hilton Hotels Corp. 7.625% 5/15/08 |
|
1,680,000 |
1,862,700 |
|
HMH Properties, Inc. 7.875% 8/1/08 |
|
202,000 |
208,060 |
|
Host Marriott LP: |
|
|
|
|
7% 8/15/12 (d) |
|
1,500,000 |
1,565,700 |
|
7.125% 11/1/13 |
|
1,503,000 |
1,583,786 |
|
John Q. Hammons Hotels LP/John Q. Hammons Hotels Corp. III 8.875% 5/15/12 |
|
2,080,000 |
2,314,000 |
|
|
8,659,246 |
|||
Household Durables - 2.1% |
||||
Beazer Homes USA, Inc. 8.375% 4/15/12 |
|
1,000,000 |
1,100,000 |
|
D.R. Horton, Inc.: |
|
|
|
|
4.875% 1/15/10 |
|
1,000,000 |
995,000 |
|
9.375% 3/15/11 |
|
300,000 |
331,875 |
|
K. Hovnanian Enterprises, Inc.: |
|
|
|
|
6% 1/15/10 (d) |
|
420,000 |
420,000 |
|
7.75% 5/15/13 |
|
1,500,000 |
1,605,000 |
|
Nonconvertible Bonds - continued |
||||
|
Principal Amount |
Value |
||
CONSUMER DISCRETIONARY - continued |
||||
Household Durables - continued |
||||
KB Home: |
|
|
|
|
5.875% 1/15/15 |
|
$ 1,000,000 |
$ 990,000 |
|
7.75% 2/1/10 |
|
1,000,000 |
1,085,000 |
|
Ryland Group, Inc. 9.125% 6/15/11 |
|
1,000,000 |
1,102,500 |
|
Standard Pacific Corp. 9.25% 4/15/12 |
|
1,600,000 |
1,848,000 |
|
WCI Communities, Inc.: |
|
|
|
|
7.875% 10/1/13 |
|
370,000 |
394,975 |
|
9.125% 5/1/12 |
|
1,500,000 |
1,668,750 |
|
William Lyon Homes, Inc. 7.5% 2/15/14 |
|
1,000,000 |
957,500 |
|
|
12,498,600 |
|||
TOTAL CONSUMER DISCRETIONARY |
21,157,846 |
|||
FINANCIALS - 19.5% |
||||
Diversified Financial Services - 0.7% |
||||
Cohen Financial Capital Management LLC 9% 6/1/14 (d)(e) |
|
4,000,000 |
4,000,000 |
|
Real Estate - 18.8% |
||||
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 |
|
1,512,867 |
1,637,678 |
|
AMB Property LP: |
|
|
|
|
6.9% 6/30/15 (f) |
|
1,200,000 |
1,219,682 |
|
7.2% 12/15/05 |
|
1,080,000 |
1,113,504 |
|
American Health Properties, Inc. 7.5% 1/15/07 |
|
1,000,000 |
1,059,159 |
|
American Real Estate Partners/American Real Estate Finance Corp. 8.125% 6/1/12 |
|
3,190,000 |
3,389,375 |
|
Archstone-Smith Trust 5% 8/15/07 |
|
200,000 |
204,500 |
|
Arden Realty LP: |
|
|
|
|
5.2% 9/1/11 |
|
500,000 |
506,191 |
|
7% 11/15/07 |
|
1,000,000 |
1,082,854 |
|
8.5% 11/15/10 |
|
1,000,000 |
1,181,723 |
|
8.875% 3/1/05 |
|
500,000 |
502,260 |
|
Bay Apartment Communities, Inc. 6.625% 1/15/08 |
|
840,000 |
897,168 |
|
Brandywine Operating Partnership LP 4.5% 11/1/09 |
|
1,000,000 |
992,657 |
|
Camden Property Trust 4.375% 1/15/10 |
|
620,000 |
616,122 |
|
Nonconvertible Bonds - continued |
||||
|
Principal Amount |
Value |
||
FINANCIALS - continued |
||||
Real Estate - continued |
||||
CarrAmerica Realty Corp.: |
|
|
|
|
3.625% 4/1/09 |
|
$ 1,000,000 |
$ 970,106 |
|
5.25% 11/30/07 |
|
1,525,000 |
1,565,814 |
|
CB Richard Ellis Services, Inc. 9.75% 5/15/10 |
|
1,932,000 |
2,202,480 |
|
Colonial Properties Trust: |
|
|
|
|
6.25% 6/15/14 |
|
1,000,000 |
1,071,114 |
|
7% 7/14/07 |
|
1,000,000 |
1,057,559 |
|
Commercial Net Lease Realty, Inc. 6.25% 6/15/14 |
|
500,000 |
523,690 |
|
Crescent Real Estate Equities LP 7.5% 9/15/07 (f) |
|
1,500,000 |
1,560,000 |
|
Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09 |
|
2,000,000 |
2,170,000 |
|
Developers Diversified Realty Corp.: |
|
|
|
|
4.625% 8/1/10 |
|
1,505,000 |
1,494,251 |
|
6.625% 1/15/08 |
|
550,000 |
582,651 |
|
7.5% 7/15/18 |
|
200,000 |
224,631 |
|
Duke Realty LP: |
|
|
|
|
5.25% 1/15/10 |
|
200,000 |
207,114 |
|
6.8% 2/12/09 |
|
1,500,000 |
1,651,106 |
|
EOP Operating LP: |
|
|
|
|
3.16% 10/1/10 (f) |
|
3,000,000 |
3,014,601 |
|
8.375% 3/15/06 |
|
1,000,000 |
1,049,230 |
|
ERP Operating LP 6.63% 4/13/15 |
|
450,000 |
453,172 |
|
Evans Withycombe Residential LP 7.625% 4/15/07 |
|
1,675,000 |
1,793,756 |
|
Federal Realty Investment Trust 6.125% 11/15/07 |
|
1,200,000 |
1,259,467 |
|
First Industrial LP: |
|
|
|
|
5.25% 6/15/09 |
|
1,000,000 |
1,025,591 |
|
7.375% 3/15/11 |
|
2,100,000 |
2,351,517 |
|
7.6% 5/15/07 |
|
1,000,000 |
1,077,120 |
|
Gables Realty LP: |
|
|
|
|
5.75% 7/15/07 |
|
1,100,000 |
1,137,195 |
|
7.25% 2/15/06 |
|
500,000 |
514,328 |
|
Health Care REIT, Inc.: |
|
|
|
|
6% 11/15/13 |
|
1,000,000 |
1,038,487 |
|
7.5% 8/15/07 |
|
1,500,000 |
1,614,747 |
|
8% 9/12/12 |
|
1,450,000 |
1,704,807 |
|
Healthcare Realty Trust, Inc. 8.125% 5/1/11 |
|
2,790,000 |
3,289,379 |
|
Heritage Property Investment Trust, Inc. 4.5% 10/15/09 (d) |
|
1,500,000 |
1,477,982 |
|
Highwoods/Forsyth LP: |
|
|
|
|
7% 12/1/06 |
|
500,000 |
520,706 |
|
Nonconvertible Bonds - continued |
||||
|
Principal Amount |
Value |
||
FINANCIALS - continued |
||||
Real Estate - continued |
||||
Highwoods/Forsyth LP: - continued |
|
|
|
|
7.125% 2/1/08 |
|
$ 950,000 |
$ 1,012,550 |
|
7.5% 4/15/18 |
|
1,250,000 |
1,361,544 |
|
Hospitality Properties Trust 6.75% 2/15/13 |
|
1,610,000 |
1,787,382 |
|
HRPT Properties Trust 6.5% 1/15/13 |
|
200,000 |
216,860 |
|
iStar Financial, Inc.: |
|
|
|
|
5.125% 4/1/11 |
|
1,000,000 |
1,002,790 |
|
6.5% 12/15/13 |
|
1,000,000 |
1,067,500 |
|
7% 3/15/08 |
|
1,800,000 |
1,923,750 |
|
Liberty Property LP 7.25% 8/15/07 |
|
1,500,000 |
1,608,858 |
|
LNR Property Corp. 7.625% 7/15/13 |
|
1,000,000 |
1,130,000 |
|
Mack-Cali Realty LP 7.25% 3/15/09 |
|
100,000 |
109,854 |
|
MeriStar Hospitality Corp. 9% 1/15/08 |
|
4,000,000 |
4,220,000 |
|
MeriStar Hospitality Operating Partnership LP/MeriStar Hospitality Finance Corp. III 9.125% 1/15/11 |
|
750,000 |
810,000 |
|
Nationwide Health Properties, Inc. 8.25% 7/1/12 |
|
1,300,000 |
1,494,678 |
|
Omega Healthcare Investors, Inc.: |
|
|
|
|
7% 4/1/14 |
|
1,970,000 |
1,970,000 |
|
7% 4/1/14 (d) |
|
500,000 |
500,000 |
|
Post Apartment Homes LP: |
|
|
|
|
5.125% 10/12/11 |
|
1,500,000 |
1,503,945 |
|
6.85% 3/16/15 (f) |
|
2,085,000 |
2,090,848 |
|
7.7% 12/20/10 |
|
2,500,000 |
2,854,470 |
|
Price Development Co. LP 7.29% 3/11/08 |
|
2,200,000 |
2,343,000 |
|
ProLogis 7.1% 4/15/08 |
|
775,000 |
846,175 |
|
Reckson Operating Partnership LP 7.75% 3/15/09 |
|
2,600,000 |
2,900,872 |
|
Security Capital Industrial Trust 7.95% 5/15/08 |
|
130,000 |
141,707 |
|
Senior Housing Properties Trust: |
|
|
|
|
7.875% 4/15/15 |
|
585,000 |
640,575 |
|
8.625% 1/15/12 |
|
1,500,000 |
1,710,000 |
|
Shopping Center Associates 7.625% 5/15/05 (d) |
|
1,500,000 |
1,516,428 |
|
Shurgard Storage Centers, Inc. 5.875% 3/15/13 |
|
1,000,000 |
1,039,312 |
|
Simon Property Group LP: |
|
|
|
|
5.375% 8/28/08 |
|
550,000 |
571,221 |
|
7.125% 6/24/05 |
|
775,000 |
786,703 |
|
Tanger Properties LP 9.125% 2/15/08 |
|
300,000 |
337,500 |
|
The Rouse Co.: |
|
|
|
|
3.625% 3/15/09 |
|
1,000,000 |
940,493 |
|
5.375% 11/26/13 |
|
2,000,000 |
1,931,116 |
|
7.2% 9/15/12 |
|
3,220,000 |
3,496,308 |
|
Nonconvertible Bonds - continued |
||||
|
Principal Amount |
Value |
||
FINANCIALS - continued |
||||
Real Estate - continued |
||||
Thornburg Mortgage, Inc. 8% 5/15/13 |
|
$ 3,000,000 |
$ 3,180,000 |
|
United Dominion Realty Trust: |
|
|
|
|
5% 1/15/12 |
|
1,000,000 |
996,615 |
|
7.95% 7/12/06 |
|
2,200,000 |
2,322,971 |
|
United Dominion Realty Trust, Inc. 6.5% 6/15/09 |
|
325,000 |
350,678 |
|
Ventas Realty LP/Ventas Capital Corp.: |
|
|
|
|
6.625% 10/15/14 |
|
1,670,000 |
1,686,700 |
|
8.75% 5/1/09 |
|
800,000 |
888,000 |
|
9% 5/1/12 |
|
1,961,000 |
2,274,760 |
|
Vornado Realty LP 4.5% 8/15/09 |
|
1,000,000 |
997,957 |
|
Vornado Realty Trust 5.625% 6/15/07 |
|
1,700,000 |
1,759,458 |
|
|
113,329,052 |
|||
TOTAL FINANCIALS |
117,329,052 |
|||
HEALTH CARE - 0.8% |
||||
Health Care Providers & Services - 0.8% |
||||
Beverly Enterprises, Inc. 7.875% 6/15/14 (d) |
|
1,030,000 |
1,153,600 |
|
Extendicare Health Services, Inc. 6.875% 5/1/14 |
|
1,500,000 |
1,518,750 |
|
Genesis HealthCare Corp. 8% 10/15/13 |
|
2,080,000 |
2,246,400 |
|
|
4,918,750 |
|||
TELECOMMUNICATION SERVICES - 1.3% |
||||
Wireless Telecommunication Services - 1.3% |
||||
American Tower Corp. 7.125% 10/15/12 (d) |
|
1,500,000 |
1,503,750 |
|
American Tower Escrow Corp. 0% 8/1/08 (c) |
|
2,000,000 |
1,502,600 |
|
Crown Castle International Corp.: |
|
|
|
|
Series B, 7.5% 12/1/13 |
|
2,160,000 |
2,284,200 |
|
7.5% 12/1/13 |
|
90,000 |
95,175 |
|
9.375% 8/1/11 |
|
2,000,000 |
2,215,000 |
|
|
7,600,725 |
|||
TOTAL NONCONVERTIBLE BONDS (Cost $146,938,587) |
151,006,373 |
|||
Asset-Backed Securities - 1.9% |
||||
|
||||
ABSC NIMS Trust: |
|
|
|
|
Series 2003-HE4 Class A, 7% 8/17/33 (d) |
|
412,857 |
413,889 |
|
Series 2003-HE5 Class A, 7% 8/17/33 (d) |
|
264,518 |
265,576 |
|
Series 2003-HE7 Class A, 7% 12/15/33 (d) |
|
489,129 |
492,797 |
|
Asset-Backed Securities - continued |
||||
|
Principal Amount |
Value |
||
Conseco Finance Securitizations Corp. Series 2000-4 Class A4, 7.73% 4/1/31 |
|
$ 1,175,458 |
$ 1,127,617 |
|
Countrywide Home Loans Series 2004-11N Class N, 5.25% 4/25/36 (d) |
|
650,210 |
648,337 |
|
Crest Dartmouth Street Ltd./Crest Dartmouth Street Corp. Series 2003-1A Class D, 9% 6/28/38 (d) |
|
850,000 |
931,016 |
|
Fremont NIMS Trust Series 2003-B Class NOTE, 5.65% 11/25/33 (d) |
|
71,574 |
71,663 |
|
Green Tree Financial Corp. Series 1996-4 Class M1, 7.75% 6/15/27 |
|
1,788,179 |
1,426,011 |
|
GS Mortgage Securities Corp. 5.5% 11/25/32 (d) |
|
81,116 |
81,116 |
|
Home Equity Asset Trust Series 2003-6 Class NIMS 22, 6.5% 3/27/34 (d) |
|
624,971 |
625,753 |
|
Home Equity Asset Trust NIMS Trust Series 2003-2N Class A, 8% 9/27/33 (d) |
|
6,851 |
6,851 |
|
Morgan Stanley Dean Witter Capital I Trust Series 2001-NC2 Class B1, 4.48% 1/25/32 (f) |
|
188,237 |
187,932 |
|
OMI Trust: |
|
|
|
|
Series 2000-A Class A2, 7.765% 5/15/17 |
|
989,543 |
833,711 |
|
Series 2002-B Class A4, 7.09% 6/15/32 |
|
2,000,000 |
1,899,475 |
|
Park Place NIMS Trust Series 2004-WCW1, 5.65% 9/25/34 (d) |
|
927,661 |
929,980 |
|
Park Place Securities NIM Trust Series 2004-WHQN2 Class A, 4% 2/25/35 (d) |
|
1,162,384 |
1,160,640 |
|
TOTAL ASSET-BACKED SECURITIES (Cost $11,241,298) |
11,102,364 |
|||
Collateralized Mortgage Obligations - 1.8% |
||||
|
||||
Private Sponsor - 1.7% |
||||
Countrywide Home Loans, Inc.: |
|
|
|
|
Series 2002-38 Class B3, 5% 2/25/18 (d) |
|
225,201 |
209,507 |
|
Series 2002-R2 Class 2B3, 4.3457% 7/25/33 (d)(f) |
|
279,799 |
176,798 |
|
Series 2003-40 Class B3, 4.5% 10/25/18 |
|
280,961 |
248,826 |
|
Series 2003-R2 Class B3, 5.5% 5/25/43 (d) |
|
599,458 |
444,161 |
|
Series 2003-R3: |
|
|
|
|
Class B2, 5.5% 11/25/33 |
|
1,896,757 |
1,625,876 |
|
Class B3, 5.5% 11/25/33 |
|
567,950 |
446,018 |
|
Series 2004-R1 Class 1B3, 5.5% 11/25/34 (f) |
|
666,031 |
514,509 |
|
CS First Boston Mortgage Securities Corp. Series 2003-TFLA Class F, 2.9433% 4/15/13 (d)(f) |
|
2,000,000 |
1,998,938 |
|
Collateralized Mortgage Obligations - continued |
||||
|
Principal Amount |
Value |
||
Private Sponsor - continued |
||||
Residential Finance LP/Residential Finance Development Corp. floater: |
|
|
|
|
Series 2002-A Class B10, 18.62% 10/10/34 (f) |
|
$ 557,951 |
$ 584,454 |
|
Series 2003-B Class B9, 14.37% 7/10/35 (d)(f) |
|
974,518 |
1,021,119 |
|
Series 2004-C Class B5, 3.77% 9/10/36 (f) |
|
398,232 |
398,232 |
|
Residential Funding Mortgage Securities I, Inc. |
|
90,772 |
86,432 |
|
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (d) |
|
189,723 |
167,283 |
|
Resix Finance Ltd. floater: |
|
|
|
|
Series 2003-D Class B8, 8.92% 12/10/35 (d)(f) |
|
736,508 |
762,809 |
|
Series 2004-A Class B7, 6.87% 2/10/36 (d)(f) |
|
691,878 |
691,874 |
|
Series 2004-B Class B7, 6.42% 2/10/36 (d)(f) |
|
831,998 |
834,738 |
|
TOTAL PRIVATE SPONSOR |
10,211,574 |
|||
U.S. Government Agency - 0.1% |
||||
Fannie Mae REMIC Trust Series 2003-W1 Subordinate REMIC Pass-Through Certificate, Class B3, 5.75% 12/25/42 |
|
339,334 |
258,795 |
|
Fannie Mae REMIC Trust Series 2003-W4 Subordinate REMIC Pass-Through Certificate, Class 2B3, 4.4504% 10/25/42 |
|
85,610 |
53,935 |
|
Fannie Mae REMIC Trust Series 2003-W10 Subordinate REMIC Pass-Through Certificate, Class 2B3, 4.2536% 6/25/43 |
|
199,730 |
122,959 |
|
Fannie Mae REMIC Trust Series 2001-W3 Subordinate REMIC Pass-Through Certificate, Class B3, 7% 9/25/41 |
|
299,409 |
252,065 |
|
Fannie Mae REMIC Trust Series 2002-W1 Subordinate REMIC Pass-Through Certificate, Class 3B3, 4.2721% 2/25/42 |
|
174,614 |
117,155 |
|
TOTAL U.S. GOVERNMENT AGENCY |
804,909 |
|||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $10,889,723) |
11,016,483 |
|||
Commercial Mortgage Securities - 13.4% |
||||
|
Principal Amount |
Value |
||
|
||||
Asset Securitization Corp. Series 1997-D4: |
|
|
|
|
Class B1, 7.525% 4/14/29 |
|
$ 2,500,000 |
$ 2,890,020 |
|
Class B2, 7.525% 4/14/29 |
|
515,000 |
516,428 |
|
Banc of America Commercial Mortgage, Inc.: |
|
|
|
|
Series 2002-PB2 Class XC, 0.3709% 6/11/35 (d)(f)(h) |
|
76,322,590 |
1,810,891 |
|
Series 2003-2: |
|
|
|
|
Class BWD, 6.947% 10/11/37 (d) |
|
432,893 |
439,265 |
|
Class BWE, 7.226% 10/11/37 (d) |
|
586,501 |
594,665 |
|
Class BWF, 7.55% 10/11/37 (d) |
|
517,677 |
525,920 |
|
Class BWG, 8.155% 10/11/37 (d) |
|
501,717 |
506,016 |
|
Class BWH, 9.073% 10/11/37 (d) |
|
263,327 |
270,060 |
|
Class BWJ, 9.99% 10/11/37 (d) |
|
432,893 |
442,625 |
|
Class BWK, 10.676% 10/11/37 (d) |
|
340,130 |
349,755 |
|
Class BWL, 10.1596% 10/11/37 (d) |
|
573,534 |
544,413 |
|
Banc of America Large Loan, Inc. floater Series 2003-BBA2 Class A3, 2.8% 11/15/15 (d)(f) |
|
4,000,000 |
4,006,734 |
|
Commercial Mortgage Asset Trust Series 1999-C1 |
|
16,932,461 |
827,891 |
|
Commercial Mortgage pass thru certificates: |
|
|
|
|
floater Series 2004-CNL: |
|
|
|
|
Class G, 3.46% 9/15/14 (d)(f) |
|
125,000 |
125,194 |
|
Class H, 3.56% 9/15/14 (d)(f) |
|
135,000 |
135,209 |
|
Series 2000-C1 Class G, 6.85% 8/15/33 (d) |
|
2,800,000 |
2,738,895 |
|
CS First Boston Mortgage Securities Corp.: |
|
|
|
|
floater Series 2004-HC1 Class E, 6.23% 12/15/21 (d)(f) |
|
2,000,000 |
1,999,986 |
|
Series 1998-C1 Class F, 6% 5/17/40 (d) |
|
4,250,000 |
3,120,592 |
|
Series 1998-C2 Class F, 6.75% 11/11/30 (d) |
|
2,000,000 |
2,007,313 |
|
Series 2003-TFLA Class AX, 0.5318% 4/15/13 (d)(f)(h) |
|
21,595,000 |
79,902 |
|
Series 2004-C3 Class AX, 0.0718% 7/15/36 (d)(f)(h) |
|
60,917,219 |
1,047,130 |
|
Series 2004-TF2A Class AX, 1.4278% 11/15/19 (d)(f)(h) |
|
63,399,921 |
1,445,518 |
|
Series 2004-TFLA Class AX, 1.7479% 2/15/14 (d)(f)(h) |
|
55,773,388 |
1,227,015 |
|
DLJ Commercial Mortgage Corp. Series 1998-CF2 |
|
2,000,000 |
2,001,775 |
|
EQI Financing Partnership I LP Series 1997-1 Class C, 7.58% 2/20/17 (d) |
|
2,500,000 |
2,549,022 |
|
Commercial Mortgage Securities - continued |
||||
|
Principal Amount |
Value |
||
First Chicago/Lennar Trust I: |
|
|
|
|
Series 1997-CHL1 Class E, 7.8633% 4/29/39 (d)(f) |
|
$ 3,500,001 |
$ 3,637,266 |
|
weighted average coupon Series 1997-CHL1 Class D, 7.8633% 4/29/39 (d)(f) |
|
1,750,000 |
1,832,305 |
|
Global Signal Trust Series 2004-1: |
|
|
|
|
Class F, 8.08% 1/15/34 (d)(f) |
|
2,860,000 |
2,962,536 |
|
Class G, 10% 1/15/34 (d)(f) |
|
2,640,000 |
2,710,446 |
|
Greenwich Capital Commercial Funding Corp. floater: |
|
|
|
|
Series 2003-FL1 Class MCH, 5.65% 7/5/18 (d)(f) |
|
1,047,643 |
1,047,643 |
|
Series 2004-FL2A Class NMV, 4.15% 11/5/19 (d)(f) |
|
2,000,000 |
2,006,250 |
|
J.P. Morgan Chase Commercial Mortgage Securities Corp. Series 2001-A: |
|
|
|
|
Class G, 6% 10/15/32 (d)(f) |
|
2,895,000 |
2,115,290 |
|
Class X, 1.7955% 10/15/32 (d)(f)(h) |
|
21,904,730 |
1,037,907 |
|
J.P. Morgan Commercial Mortgage Finance Corp.: |
|
|
|
|
Series 1997-C5 Class F, 7.5605% 9/15/29 |
|
5,885,000 |
6,518,646 |
|
Series 1999-C7 Class F, 6% 10/15/35 (d) |
|
350,000 |
364,949 |
|
Series 2000-BAT1 Class P, 10/15/32 (d)(i) |
|
6,550,000 |
2,816,500 |
|
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2003-C4A Class F, 4.68% 7/11/15 (d)(f) |
|
136,171 |
136,321 |
|
LTC Commercial Mortgage pass thru certificates Series 1998-1: |
|
|
|
|
Class D, 6.96% 5/28/30 (d) |
|
2,250,000 |
2,323,847 |
|
Class E, 7.792% 5/28/30 (d) |
|
2,020,000 |
2,047,942 |
|
Meristar Commercial Mortgage Trust Series 1999-C1: |
|
|
|
|
Class C, 8.29% 3/3/16 (d) |
|
1,500,000 |
1,670,332 |
|
Class X, 0.2154% 3/3/16 (d)(h) |
|
36,650,000 |
307,985 |
|
Merrill Lynch Mortgage Investors, Inc. Series 2001-HRPA Class G, 6.778% 2/3/16 (d) |
|
820,000 |
882,805 |
|
Mezz Capital Commercial Mortgage Trust Series 2004-C1: |
|
|
|
|
Class D, 6.988% 9/15/13 |
|
750,000 |
749,517 |
|
Class E, 7.983% 10/15/13 |
|
1,453,000 |
1,443,594 |
|
Class X, 7.8532% 1/15/18 (f)(h) |
|
7,192,953 |
3,241,324 |
|
Morgan Stanley Capital I, Inc.: |
|
|
|
|
Series 1997-C1 Class F, 6.85% 2/15/20 (d) |
|
500,000 |
532,483 |
|
Series 1997-HF1 Class G, 6.86% 7/15/29 (d) |
|
555,000 |
572,309 |
|
Series 1998-HF1 Class F, 7.18% 3/15/30 (d) |
|
1,500,000 |
1,626,746 |
|
Nationslink Funding Corp. Series 1998-2 Class F, 7.105% 8/20/30 (d) |
|
2,075,000 |
2,281,376 |
|
Commercial Mortgage Securities - continued |
||||
|
Principal Amount |
Value |
||
Nomura Asset Securities Corp. Series 1998-D6 Class B1, 6% 3/15/30 (d) |
|
$ 2,800,000 |
$ 2,959,313 |
|
Trizechahn Office Properties Trust Series 2001-TZHA Class E4, 7.604% 5/15/16 (d) |
|
790,000 |
885,730 |
|
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $76,412,820) |
80,913,596 |
|||
Floating Rate Loans - 3.2% |
||||
CONSUMER DISCRETIONARY - 0.6% |
||||
Hotels, Restaurants & Leisure - 0.6% |
||||
Lake Las Vegas LLC Tranche 1, term loan 5.1575% 11/1/09 (f) |
|
400,261 |
403,263 |
|
Wyndham International, Inc. term loan 7.1875% 6/30/06 (f) |
|
3,185,953 |
3,193,918 |
|
|
3,597,181 |
|||
FINANCIALS - 2.5% |
||||
Diversified Financial Services - 0.4% |
||||
American Tower LP Tranche B, term loan 4.2299% 8/31/11 (f) |
|
995,000 |
1,004,950 |
|
Landsource Communication Development LLC Tranche B, term loan 5.0625% 3/31/10 (f) |
|
1,200,000 |
1,215,000 |
|
|
2,219,950 |
|||
Real Estate - 2.1% |
||||
Apartment Investment & Management Co. term loan 4.75% 11/2/09 (f) |
|
2,000,000 |
2,030,000 |
|
Crescent Real Estate Funding XII LP term loan 4.64% 1/12/06 (f) |
|
2,181,761 |
2,214,487 |
|
General Growth Properties, Inc.: |
|
|
|
|
Tranche A, term loan 4.64% 11/12/07 (f) |
|
2,987,027 |
2,994,495 |
|
Tranche B, term loan 4.64% 11/12/08 (f) |
|
1,500,000 |
1,515,000 |
|
LNR Property Corp. Tranche B, term loan 5.59% 1/31/08 (e)(f) |
|
4,000,000 |
4,030,000 |
|
Newkirk Master LP term loan 7.0212% 11/24/06 (f) |
|
209,771 |
212,863 |
|
|
12,996,845 |
|||
TOTAL FINANCIALS |
15,216,795 |
|||
Floating Rate Loans - continued |
||||
|
Principal Amount |
Value |
||
HEALTH CARE - 0.0% |
||||
Health Care Providers & Services - 0.0% |
||||
Beverly Enterprises, Inc. term loan 5.0818% 10/22/08 (f) |
|
$ 197,500 |
$ 198,488 |
|
TELECOMMUNICATION SERVICES - 0.1% |
||||
Wireless Telecommunication Services - 0.1% |
||||
SpectraSite Communications, Inc. Tranche B, term loan 4.03% 5/19/12 (f) |
|
450,000 |
453,375 |
|
TOTAL FLOATING RATE LOANS (Cost $19,228,433) |
19,465,839 |
Preferred Securities - 0.1% |
|||
FINANCIALS - 0.1% |
|||
Diversified Financial Services - 0.1% |
|||
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A |
590,000 |
608,414 |
|
Fixed-Income Funds - 4.2% |
|||
Shares |
|
||
Fidelity Ultra-Short Central Fund (g) |
251,145 |
24,996,462 |
|
Money Market Funds - 5.6% |
|||
|
|
|
|
Fidelity Cash Central Fund, 2.31% (b) |
33,690,385 |
33,690,385 |
|
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $583,162,869) |
608,710,435 |
||
NET OTHER ASSETS - (1.1)% |
(6,694,758) |
||
NET ASSETS - 100% |
$ 602,015,677 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(d) 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 period end, the value of these securities amounted to $95,241,101 or 15.8% of net assets. |
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete listing of the fund's holdings as of its most recent quarter end is available upon request. |
(h) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool. |
(i) Principal Only Strips represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S. Government and |
0.5% |
AAA,AA,A |
5.0% |
BBB |
16.1% |
BB |
13.8% |
B |
7.1% |
CCC,CC,C |
0.5% |
Not Rated |
5.4% |
Equities |
45.8% |
Short-Term Investments and Net Other Assets |
5.8% |
|
100.0% |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 |
||
|
|
|
Assets |
|
|
Investment in securities, at value (cost $583,162,869) - See accompanying schedule |
|
$ 608,710,435 |
Cash |
|
1,096,259 |
Receivable for investments sold |
|
558,445 |
Receivable for fund shares sold |
|
1,447,992 |
Dividends receivable |
|
621,642 |
Interest receivable |
|
3,453,984 |
Prepaid expenses |
|
1,498 |
Other affiliated receivables |
|
268 |
Other receivables |
|
7,804 |
Total assets |
|
615,898,327 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 2,443,235 |
|
Delayed delivery |
8,043,000 |
|
Payable for fund shares redeemed |
2,948,767 |
|
Accrued management fee |
283,984 |
|
Other affiliated payables |
122,349 |
|
Other payables and accrued expenses |
41,315 |
|
Total liabilities |
|
13,882,650 |
|
|
|
Net Assets |
|
$ 602,015,677 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 570,910,971 |
Undistributed net investment income |
|
1,509,309 |
Accumulated undistributed net realized gain (loss) on investments |
|
4,047,831 |
Net unrealized appreciation (depreciation) on investments |
|
25,547,566 |
Net Assets, for 51,265,708 shares outstanding |
|
$ 602,015,677 |
Net Asset Value, offering price and redemption price per share ($602,015,677 ÷ 51,265,708 shares) |
|
$ 11.74 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2005 |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 6,902,390 |
Interest |
|
9,008,864 |
Total income |
|
15,911,254 |
|
|
|
Expenses |
|
|
Management fee |
$ 1,529,257 |
|
Transfer agent fees |
554,682 |
|
Accounting fees and expenses |
102,123 |
|
Non-interested trustees' compensation |
1,462 |
|
Custodian fees and expenses |
9,484 |
|
Registration fees |
41,728 |
|
Audit |
40,975 |
|
Legal |
1,739 |
|
Miscellaneous |
4,470 |
|
Total expenses before reductions |
2,285,920 |
|
Expense reductions |
(11,064) |
2,274,856 |
Net investment income (loss) |
|
13,636,398 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities |
|
4,770,410 |
Change in net unrealized appreciation (depreciation) on investment securities |
|
16,660,793 |
Net gain (loss) |
|
21,431,203 |
Net increase (decrease) in net assets resulting from operations |
|
$ 35,067,601 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 13,636,398 |
$ 19,812,277 |
Net realized gain (loss) |
4,770,410 |
10,307,573 |
Change in net unrealized appreciation (depreciation) |
16,660,793 |
3,123,862 |
Net increase (decrease) in net assets resulting |
35,067,601 |
33,243,712 |
Distributions to shareholders from net investment income |
(16,847,468) |
(17,564,086) |
Distributions to shareholders from net realized gain |
(7,090,927) |
(1,945,418) |
Total distributions |
(23,938,395) |
(19,509,504) |
Share transactions |
218,297,025 |
411,886,173 |
Reinvestment of distributions |
20,876,241 |
16,882,212 |
Cost of shares redeemed |
(70,943,407) |
(248,916,115) |
Net increase (decrease) in net assets resulting from share transactions |
168,229,859 |
179,852,270 |
Redemption fees |
105,297 |
420,153 |
Total increase (decrease) in net assets |
179,464,362 |
194,006,631 |
|
|
|
Net Assets |
|
|
Beginning of period |
422,551,315 |
228,544,684 |
End of period (including undistributed net investment income of $1,509,309 and undistributed net investment income of $4,720,379, respectively) |
$ 602,015,677 |
$ 422,551,315 |
Other Information Shares |
|
|
Sold |
18,726,640 |
36,337,200 |
Issued in reinvestment of distributions |
1,802,839 |
1,514,555 |
Redeemed |
(6,050,512) |
(22,005,866) |
Net increase (decrease) |
14,478,967 |
15,845,889 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
Six months ended |
Years ended July 31, |
|
|
2005 |
2004 |
2003 E |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period |
$ 11.49 |
$ 10.91 |
$ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D |
.30 |
.59 |
.27 |
Net realized and unrealized gain (loss) |
.51 |
.60 |
.71 |
Total from investment operations |
.81 |
1.19 |
.98 |
Distributions from net investment income |
(.38) |
(.55) |
(.07) |
Distributions from net realized gain |
(.18) |
(.07) |
- |
Total distributions |
(.56) |
(.62) |
(.07) |
Redemption fees added to paid in capital D |
- G |
.01 |
- G |
Net asset value, end of period |
$ 11.74 |
$ 11.49 |
$ 10.91 |
Total Return B, C |
7.18% |
11.31% |
9.83% |
Ratios to Average Net Assets F |
|
|
|
Expenses before expense reductions |
.86% A |
.85% |
.97% A |
Expenses net of voluntary waivers, if any |
.86% A |
.85% |
.97% A |
Expenses net of all reductions |
.86% A |
.85% |
.94% A |
Net investment income (loss) |
5.13% A |
5.25% |
5.10% A |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) |
$ 602,016 |
$ 422,551 |
$ 228,545 |
Portfolio turnover rate |
27% A |
61% |
41% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period February 4, 2003 (commencement of operations) to July 31, 2003.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
G Amount represents less than $.01 per share.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
For the period ended January 31, 2005
1. Significant Accounting Policies.
Fidelity Real Estate Income Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Investment Transactions and Income. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund
Semiannual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income - continued
estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. The fund follows the provisions of Emerging Issues Task Force Issue No. 99-20 (EITF 99-20), "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets" for certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities). Under EITF 99-20, if there is a change in the estimated cash flows for any of these securities, based on an evaluation of current information, then the estimated yield is adjusted on a prospective basis over the remaining life of the security.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, partnerships, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 28,907,164 |
|
Unrealized depreciation |
(3,329,398) |
|
Net unrealized appreciation (depreciation) |
$ 25,577,766 |
|
Cost for federal income tax purposes |
$ 583,132,669 |
|
Semiannual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of 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.
Semiannual Report
2. Operating Policies - continued
Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $225,256,928 and $65,899,865, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .57% of the fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .21% of average net assets.
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $546,867 for the period.
Semiannual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $12,434 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $9,814 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $1,250.
7. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
Semiannual Report
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Real Estate Income Fund (the Fund), a fund of Fidelity Securities Fund, including the portfolio of investments, as of January 31, 2005, and the related statement of operations for the six months then ended, the statement of changes in net assets for the six months ended January 31, 2005 and the year ended July 31, 2004 and the financial highlights for the six months ended January 31, 2005, the year ended July 31, 2004 and for the period from February 4, 2003 (commencement of operations) to July 31, 2003. These financial statements and financial highlights are the responsibility of the Funds' 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 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. An audit includes 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 January 31, 2005, by correspondence with custodians and brokers; where 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, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Real Estate Income Fund as of January 31, 2005, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2005 and the year ended July 31, 2004 and its financial highlights for the six months ended January 31, 2005, the year ended July 31, 2004 and for the period from February 4, 2003 (commencement of operations) to July 31, 2003, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Semiannual Report
Boston, Massachusetts
March 15, 2005
Semiannual Report
January 31, 2005 (Unaudited)
Top Fifty Securities and Derivatives |
Maturity |
% of Fund's |
||
Investments in repurchase agreements: (Collateralized by U.S. Government Obligations, in a joint trading account at 2.51%, dated 1/31/05 due 2/1/05) |
$ 1,484,022,606 |
$ 1,483,919,000 |
25.5 |
With Goldman Sachs & Co. at 2.35%, dated 1/6/05 due 2/3/05 (Collateralized by Mortgage Loan Obligations with principal amounts of $270,555,985, 4.08%- 5.21%, 2/25/35 - 10/25/43) |
265,484,361 |
264,998,172 |
4.6 |
|
Principal |
|
|
Federal Home Loan Bank 1.265% 3/15/05 |
$ 200,000,000 |
199,659,389 |
3.4 |
Fannie Mae 1.55% 5/4/05 |
90,000,000 |
89,739,000 |
1.6 |
Federal Home Loan Bank 1.35% 4/29/05 |
90,000,000 |
89,715,960 |
1.5 |
Fannie Mae 1.8% 5/27/05 |
60,000,000 |
59,827,740 |
1.0 |
Bank One Issuance Trust Series 2002-C2 Class C2, 3.47% 5/15/08 |
35,785,000 |
35,935,193 |
0.6 |
Fannie Mae 6.25% 3/22/12 |
34,005,000 |
34,173,325 |
0.6 |
Sears Credit Account Master Trust II Series 2002-4 Class B, 2.905% 8/18/09 |
33,300,000 |
33,344,289 |
0.6 |
Discover Card Master Trust I Series 2002-1 Class B, 2.88% 7/15/07 |
30,637,000 |
30,634,574 |
0.5 |
MBNA Credit Card Master Note Trust: |
|
|
|
Series 2001-B2 Class B2, 2.84% 1/15/09 |
30,353,000 |
30,462,611 |
0.5 |
Series 2001-B1 Class B1, 2.855% 10/15/08 |
30,000,000 |
30,069,528 |
0.5 |
Sears Credit Account Master Trust II: |
|
|
|
Series 2002-5 Class B, 3.73% 11/17/09 |
30,000,000 |
30,052,917 |
0.5 |
Series 2002-4 Class A, 2.61% 8/18/09 |
27,000,000 |
27,016,246 |
0.5 |
Thornburg Mortgage Securities Trust floater Series 2004-3 Class A, 2.9% 9/25/34 |
25,918,906 |
25,962,033 |
0.5 |
Amortizing Residential Collateral Trust Series 2002-BC6 Class M1, 3.28% 8/25/32 |
24,900,000 |
25,084,701 |
0.4 |
AmeriCredit Automobile Receivables Trust Series 2002-EM Class A4A, 3.67% 6/8/09 |
25,000,000 |
25,075,038 |
0.4 |
Citibank Credit Card Issuance Trust Series 2003-B1 Class B1, 2.74% 3/7/08 |
25,000,000 |
25,042,223 |
0.4 |
Holmes Financing No. 8 PLC floater Series 2 Class A, 2.72% 4/15/11 |
25,000,000 |
24,990,235 |
0.4 |
Calwest Industrial Trust floater Series 2002-CALW Class AFL, 2.86% 2/15/12 |
24,300,000 |
24,359,824 |
0.4 |
Bear Stearns Alt-A Trust floater Series 2005-1 Class A1, 2.8388% 1/25/35 |
23,650,000 |
23,650,000 |
0.4 |
Top Fifty Securities and Derivatives |
|
Principal |
Value |
% of Fund's |
ACE Securities Corp. Series 2002-HE2 Class M1, 3.38% 8/25/32 |
$ 21,525,000 |
$ 21,644,195 |
0.4 |
Asset Backed Securities Corp. Home Equity Loan Trust Series 2004-HE6 Class A2, 2.89% 6/25/34 |
23,589,523 |
23,588,502 |
0.4 |
Household Credit Card Master Trust I Series 2002-1 Class B, 3.13% 7/15/08 |
22,589,000 |
22,663,483 |
0.4 |
Holmes Financing No. 8 PLC floater Series 1 Class C, 3.26% 7/15/40 |
22,640,000 |
22,647,075 |
0.4 |
CDC Mortgage Capital Trust Series 2002-HE3 Class M1, 3.63% 3/25/33 |
21,499,948 |
21,961,275 |
0.4 |
Bank One Issuance Trust Series 2002-B1 Class B1, 2.86% 12/15/09 |
20,655,000 |
20,765,926 |
0.4 |
Argent Securities, Inc. Series 2003-W3 Class M2, 4.33% 9/25/33 |
20,000,000 |
20,687,082 |
0.4 |
MBNA Credit Card Master Note Trust Series 2002-B2 Class B2, 2.86% 10/15/09 |
20,000,000 |
20,111,192 |
0.3 |
Wells Fargo Mortgage Backed Securities Trust Series 2004-M Class A3, 4.725% 8/25/34 |
19,880,000 |
20,064,387 |
0.3 |
MBNA Master Credit Card Trust II Series 1998-G Class B, 2.88% 2/17/09 |
20,000,000 |
20,060,062 |
0.3 |
American Express Credit Account Master Trust Series 2004-C Class C, 2.98% 2/15/12 |
20,000,000 |
20,037,482 |
0.3 |
Ford Credit Auto Owner Trust Series 2003-B Class B2, 2.91% 10/15/07 |
19,600,000 |
19,698,284 |
0.3 |
Long Beach Mortgage Loan Trust Series 2003-2 Class M1, 3.35% 6/25/33 |
19,500,000 |
19,690,182 |
0.3 |
Capital One Master Trust Series 2001-1 Class B, 2.99% 12/15/10 |
19,500,000 |
19,671,680 |
0.3 |
British Telecommunications PLC 7.875% 12/15/05 |
18,145,000 |
18,836,288 |
0.3 |
Nissan Auto Lease Trust Series 2003-A Class A3A, 2.62% 6/15/09 |
18,550,330 |
18,571,028 |
0.3 |
Citibank Credit Card Issuance Trust Series 2003-C1 Class C1, 3.69% 4/7/10 |
17,785,000 |
18,217,047 |
0.3 |
SDG Macerich Properties LP floater Series 2000-1 Class A3, 2.82% 5/15/09 |
18,000,000 |
18,020,322 |
0.3 |
Keycorp Student Loan Trust Series 1999-A Class A2, 2.28% 12/27/09 |
17,947,151 |
18,005,482 |
0.3 |
Capital One Multi-Asset Execution Trust Series 2002-B1 Class B1, 3.16% 7/15/08 |
17,705,000 |
17,743,951 |
0.3 |
Citibank Credit Card Issuance Trust Series 2002-C1 Class C1, 3.2% 2/9/09 |
17,500,000 |
17,737,743 |
0.3 |
Top Fifty Securities and Derivatives |
|
Principal |
Value |
% of Fund's |
Sequoia Mortgage Trust floater Series 2004-8 Class A2, 2.35% 9/20/34 |
$ 17,715,665 |
$ 17,702,403 |
0.3 |
Citibank Credit Card Issuance Trust Series 2000-C2 Class C2, 3.31% 10/15/07 |
17,500,000 |
17,538,220 |
0.3 |
Freddie Mac Multi-class participation certificates guaranteed planned amortization class Series 2136 Class PE, 6% 1/15/28 |
17,331,818 |
17,496,765 |
0.3 |
AmeriCredit Automobile Receivables Trust Series 2003-CF Class A3, 2.75% 10/9/07 |
17,500,000 |
17,439,151 |
0.3 |
Liberty Media Corp. 3.99% 9/17/06 |
17,000,000 |
17,198,730 |
0.3 |
Deutsche Telekom International Finance BV 8.25% 6/15/05 |
16,638,000 |
16,943,557 |
0.3 |
Merrill Lynch Mortgage Investors, Inc. floater Series 2004-C Class A2, 3.07% 7/25/29 |
16,713,022 |
16,676,810 |
0.3 |
Countrywide Home Loans, Inc. floater Series 2005-1 Class 2A1, 2.84% 3/25/35 |
16,450,000 |
16,450,000 |
0.3 |
Top Fifty securities as a percentage of the Fund's net assets - 54.2% |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value |
Unrealized
Appreciation/ |
||
Sold |
|||||
Eurodollar Contracts |
|||||
201 Eurodollar 90 Day Index Contracts |
June 2005 |
$ 199,356,825 |
$ (145,062) |
||
123 Eurodollar 90 Day Index Contracts |
Sept. 2005 |
121,920,675 |
(121,462) |
||
69 Eurodollar 90 Day Index Contracts |
Dec. 2005 |
68,362,612 |
(66,654) |
||
18 Eurodollar 90 Day Index Contracts |
March 2006 |
17,827,650 |
(17,765) |
||
4 Eurodollar 90 Day Index Contracts |
June 2006 |
3,960,700 |
(7,566) |
||
TOTAL EURODOLLAR CONTRACTS |
(358,509) |
||||
Swap Agreements |
|||||
|
|
Notional Amount |
Value |
||
Credit Default Swap |
|||||
Receive quarterly notional amount multiplied by 1.12% and pay Morgan Stanley, Inc. upon default of Comcast Cable Communications, Inc., par value of the notional amount of Comcast Cable Communications, Inc. 6.75% 1/30/11 |
June 2006 |
$ 10,000,000 |
$ 125,807 |
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
Nevada
2225 Village Walk Drive
Henderson, NV
Semiannual Report
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisers
Fidelity International Investment
Advisers (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
REI-USAN-0305
1.789734.101
Fidelity®
Fund
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
5 |
A summary of major shifts in the fund's investments over the past six months. |
Investments |
6 |
A complete list of the fund's investments with their market values. |
Financial Statements |
9 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
13 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 8, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
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.
|
Beginning |
Ending |
Expenses Paid |
Actual |
$ 1,000.00 |
$ 1,168.00 |
$ 6.50 A |
Hypothetical (5% return per year before expenses) |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63 B |
A Actual expenses are equal to the Fund's expense ratio of 1.50%; multiplied by the average account value over the period, multiplied by 146/365 (to reflect the period September 8, 2004 to January 31, 2005).
B Hypothetical expenses are equal to the Fund's annualized expense ratio of 1.50%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Westfield Group unit |
9.0 |
Sun Hung Kai Properties Ltd. |
4.8 |
Mitsui Fudosan Co. Ltd. |
4.7 |
British Land Co. PLC |
4.5 |
Mitsubishi Estate Co. Ltd. |
3.9 |
Land Securities Group PLC |
3.0 |
Stockland |
2.9 |
Slough Estates PLC |
2.9 |
Rodamco Europe NV |
2.4 |
Gecina SA |
2.3 |
|
40.4 |
Top Five Countries as of January 31, 2005 |
|
(excluding cash equivalents) |
% of fund's |
United Kingdom |
22.6 |
Australia |
20.5 |
Japan |
16.0 |
Hong Kong |
13.8 |
Netherlands |
7.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Top Five REIT Sectors as of January 31, 2005 |
|
|
% of fund's |
REITs - Management/Investment |
28.0 |
REITs - Office Buildings |
3.9 |
REITs - Shopping Centers |
1.0 |
REITs - Industrial Buildings |
0.6 |
Asset Allocation (% of fund's net assets) |
|||
As of January 31, 2005 |
|||
![]() |
Stocks 96.6% |
|
|
![]() |
Short-Term |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 96.6% |
|||
Shares |
Value (Note 1) |
||
Australia - 20.5% |
|||
Centro Properties Group unit |
622,500 |
$ 2,575,385 |
|
CFS Gandel Retail Trust |
1,701,800 |
2,109,551 |
|
Commonwealth Property Office Fund |
1,020,100 |
980,000 |
|
DB RREEF Trust unit |
713,638 |
713,229 |
|
General Property Trust |
553,800 |
1,660,449 |
|
Macquarie Goodman Industrial Trust |
1,753,100 |
3,232,550 |
|
Multiplex Group unit |
278,959 |
1,262,161 |
|
Stockland unit |
946,700 |
4,305,386 |
|
Westfield Group unit |
992,300 |
13,100,085 |
|
TOTAL AUSTRALIA |
29,938,796 |
||
Austria - 0.6% |
|||
IMMOFINANZ Immobilien Anlagen AG (a) |
98,300 |
909,682 |
|
Finland - 1.0% |
|||
Citycon Oyj |
374,000 |
1,442,916 |
|
France - 6.1% |
|||
Gecina SA |
33,000 |
3,385,060 |
|
Klepierre SA |
27,500 |
2,390,762 |
|
Unibail (Reg.) |
26,500 |
3,153,511 |
|
TOTAL FRANCE |
8,929,333 |
||
Greece - 1.1% |
|||
Babis Vovos International Technical SA |
111,980 |
1,675,560 |
|
Hong Kong - 13.8% |
|||
Cheung Kong Holdings Ltd. ADR |
133,600 |
1,229,120 |
|
China Overseas Land & Investment Ltd. |
2,700,000 |
675,013 |
|
Great Eagle Holdings Ltd. |
220,000 |
504,882 |
|
Hang Lung Properties Ltd. |
621,000 |
931,518 |
|
Henderson Land Development Co. Ltd. |
609,700 |
2,892,222 |
|
Hong Kong Land Holdings Ltd. |
711,000 |
1,677,960 |
|
Hysan Development Co. Ltd. |
547,000 |
1,044,930 |
|
Kerry Properties Ltd. |
403,500 |
848,401 |
|
New World Development Co. Ltd. |
1,508,000 |
1,469,362 |
|
Sino Land Co. |
2,136,000 |
1,903,267 |
|
Sun Hung Kai Properties Ltd. |
755,000 |
6,993,564 |
|
TOTAL HONG KONG |
20,170,239 |
||
Italy - 1.8% |
|||
Beni Stabili Spa |
1,241,100 |
1,287,002 |
|
Pirelli & C. Real Estate Spa |
25,000 |
1,376,065 |
|
TOTAL ITALY |
2,663,067 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Japan - 16.0% |
|||
Japan Prime Realty Investment Corp. |
400 |
$ 1,107,841 |
|
Japan Real Estate Investment Corp. |
154 |
1,307,793 |
|
Japan Retail Fund Investment Corp. |
174 |
1,469,240 |
|
Mitsubishi Estate Co. Ltd. |
451,000 |
5,697,071 |
|
Mitsui Fudosan Co. Ltd. |
557,000 |
6,923,194 |
|
Nippon Building Fund, Inc. |
306 |
2,574,977 |
|
NTT Urban Development Co. |
200 |
895,537 |
|
Sumitomo Realty & Development Co. Ltd. |
156,000 |
2,179,860 |
|
Tokyu Land Corp. |
271,000 |
1,247,450 |
|
TOTAL JAPAN |
23,402,963 |
||
Netherlands - 7.0% |
|||
Corio NV |
33,645 |
1,965,487 |
|
Eurocommercial Properties NV |
44,999 |
1,592,394 |
|
Nieuwe Steen Investments NV |
56,270 |
1,349,499 |
|
Rodamco Europe NV |
45,700 |
3,463,727 |
|
Wereldhave NV |
18,500 |
1,904,919 |
|
TOTAL NETHERLANDS |
10,276,026 |
||
Singapore - 3.9% |
|||
Ascendas Real Estate Investment Trust (A-REIT) |
668,900 |
804,821 |
|
CapitaLand Ltd. |
1,236,000 |
1,728,724 |
|
Keppel Land Ltd. |
535,000 |
751,542 |
|
Singapore Land Ltd. |
458,000 |
1,524,522 |
|
Suntec (REIT) |
1,245,000 |
920,082 |
|
TOTAL SINGAPORE |
5,729,691 |
||
Spain - 0.8% |
|||
Inmobiliaria Colonial |
26,600 |
1,178,795 |
|
Sweden - 0.5% |
|||
Castellum AB |
20,700 |
688,529 |
|
Switzerland - 0.9% |
|||
PSP Swiss Property AG |
31,707 |
1,346,737 |
|
United Kingdom - 22.6% |
|||
British Land Co. PLC |
406,400 |
6,590,212 |
|
Brixton PLC |
208,900 |
1,377,048 |
|
Capital & Regional PLC |
230,600 |
3,114,017 |
|
CLS Holdings PLC (a) |
168,889 |
1,304,151 |
|
Derwent Valley Holdings PLC |
49,300 |
1,012,083 |
|
Development Securities PLC |
142,400 |
1,357,073 |
|
Eurocastle Investment Ltd. |
19,700 |
429,576 |
|
Great Portland Estates PLC |
82,400 |
518,342 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
United Kingdom - continued |
|||
Hammerson PLC |
193,900 |
$ 3,094,996 |
|
Land Securities Group PLC |
171,700 |
4,452,940 |
|
Liberty International PLC |
110,600 |
2,020,549 |
|
Minerva PLC |
102,500 |
504,822 |
|
Shaftesbury PLC |
81,600 |
584,005 |
|
Slough Estates PLC |
443,900 |
4,274,261 |
|
Unite Group PLC |
307,200 |
1,770,456 |
|
Workspace Group PLC |
16,500 |
723,762 |
|
TOTAL UNITED KINGDOM |
33,128,293 |
||
TOTAL COMMON STOCKS (Cost $134,153,604) |
141,480,627 |
||
Cash Equivalents - 2.4% |
|||
Maturity Amount |
|
||
Investments in repurchase agreements (Collateralized by U.S.
Treasury Obligations, in a joint trading account at 2.45%,
dated 1/31/05 due 2/1/05) |
$ 3,481,237 |
3,481,000 |
|
TOTAL INVESTMENT PORTFOLIO - 99.0% (Cost $137,634,604) |
144,961,627 |
||
NET OTHER ASSETS - 1.0% |
1,434,043 |
||
NET ASSETS - 100% |
$ 146,395,670 |
Legend |
(a) Non-income producing |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (including repurchase agreements of $3,481,000) (cost $137,634,604) - See accompanying schedule |
|
$ 144,961,627 |
Cash |
|
596 |
Foreign currency held at value (cost $51,170) |
|
51,071 |
Receivable for investments sold |
|
1,314,457 |
Receivable for fund shares sold |
|
3,779,574 |
Dividends receivable |
|
400,249 |
Prepaid expenses |
|
15,060 |
Other affiliated receivables |
|
368 |
Other receivables |
|
4,763 |
Total assets |
|
150,527,765 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 3,905,929 |
|
Payable for fund shares redeemed |
45,346 |
|
Accrued management fee |
101,779 |
|
Other affiliated payables |
28,193 |
|
Other payables and accrued expenses |
50,848 |
|
Total liabilities |
|
4,132,095 |
|
|
|
Net Assets |
|
$ 146,395,670 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 138,694,856 |
Distributions in excess of net investment income |
|
(35,424) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
403,787 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
7,332,451 |
Net Assets, for 12,601,396 shares outstanding |
|
$ 146,395,670 |
Net Asset Value, offering price and redemption price per share ($146,395,670 ÷ 12,601,396 shares) |
|
$ 11.62 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
For the period September 8, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 705,836 |
Interest |
|
31,429 |
|
|
737,265 |
Less foreign taxes withheld |
|
(119,160) |
Total income |
|
618,105 |
|
|
|
Expenses |
|
|
Management fee |
$ 182,055 |
|
Transfer agent fees |
64,073 |
|
Accounting fees and expenses |
16,853 |
|
Non-interested trustees' compensation |
70 |
|
Custodian fees and expenses |
165,031 |
|
Registration fees |
22,499 |
|
Audit |
19,223 |
|
Legal |
27 |
|
Miscellaneous |
27 |
|
Total expenses before reductions |
469,858 |
|
Expense reductions |
(101,251) |
368,607 |
Net investment income (loss) |
|
249,498 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
702,661 |
|
Foreign currency transactions |
(13,952) |
|
Total net realized gain (loss) |
|
688,709 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
7,327,023 |
|
Assets and liabilities in foreign currencies |
5,428 |
|
Total change in net unrealized appreciation (depreciation) |
|
7,332,451 |
Net gain (loss) |
|
8,021,160 |
Net increase (decrease) in net assets resulting from operations |
|
$ 8,270,658 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
For the period |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ 249,498 |
Net realized gain (loss) |
688,709 |
Change in net unrealized appreciation (depreciation) |
7,332,451 |
Net increase (decrease) in net assets resulting |
8,270,658 |
Distributions to shareholders from net investment income |
(284,922) |
Distributions to shareholders from net realized gain |
(284,922) |
Total distributions |
(569,844) |
Share transactions |
142,637,891 |
Reinvestment of distributions |
534,380 |
Cost of shares redeemed |
(4,517,151) |
Net increase (decrease) in net assets resulting from share transactions |
138,655,120 |
Redemption fees |
39,736 |
Total increase (decrease) in net assets |
146,395,670 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including distributions in excess of net investment income of $35,424) |
$ 146,395,670 |
Other Information Shares |
|
Sold |
12,951,007 |
Issued in reinvestment of distributions |
46,067 |
Redeemed |
(395,678) |
Net increase (decrease) |
12,601,396 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Period ended January 31, |
2005 E |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
.04 |
Net realized and unrealized gain (loss) |
1.63 |
Total from investment operations |
1.67 |
Distributions from net investment income |
(.03) |
Distributions from net realized gain |
(.03) |
Total distributions |
(.06) |
Redemption fees added to paid in capital D |
.01 |
Net asset value, end of period |
$ 11.62 |
Total Return B, C |
16.80% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.89% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.48% A |
Net investment income (loss) |
1.00% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 146,396 |
Portfolio turnover rate |
39% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period September 8, 2004 (commencement of operations) to January 31, 2005.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity International Real Estate Fund (the fund) is a fund of Fidelity Securities Fund (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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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. Temporary book-tax differences will reverse in a subsequent period.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 9,266,869 |
|
Unrealized depreciation |
(1,997,046) |
|
Net unrealized appreciation (depreciation) |
$ 7,269,823 |
|
Cost for federal income tax purposes |
$ 137,691,804 |
|
Semiannual Report
1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management and Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $145,711,651 and $11,550,485, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .26% of average net assets.
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Expense Reductions.
FMR voluntarily agreed to reimburse the fund to the extent annual operating expenses exceeded 1.50% of average net assets. Some expenses, for example interest expense, are excluded from this reimbursement. During the period, this reimbursement reduced the fund's expenses by $96,350.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $4,868 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $33.
6. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
At the end of the period, one otherwise unaffiliated shareholder was the owner of record of 11% of the total outstanding shares of the fund.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
Nevada
2225 Village Walk Drive
Henderson, NV
Semiannual Report
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Highway 35
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Semiannual Report
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisers
Fidelity International Investment
Advisers (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Mellon Bank, N.A.
Pittsburgh, PA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic)   1-800-544-5555
(automated graphic)   Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
IRE-USAN-0305
1.801329.100
Fidelity Advisor
Fund - Class A, Class T,
Class B and Class C
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B
and Class C are classes of
Fidelity® Small Cap Value Fund
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of the fund's investments. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,109.50 |
$ 3.90 B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63 C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.00 |
$ 4.55 B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89 C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Small Cap Value |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Value |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
5.4 |
RC2 Corp. |
4.9 |
Steven Madden Ltd. |
2.3 |
Holly Corp. |
2.1 |
Watts Water Technologies, Inc. Class A |
1.9 |
Oxford Industries, Inc. |
1.8 |
Pason Systems, Inc. |
1.8 |
Jarden Corp. |
1.6 |
Encore Acquisition Co. |
1.5 |
Interface, Inc. Class A |
1.4 |
|
24.7 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
28.4 |
Financials |
20.7 |
Energy |
17.6 |
Industrials |
11.9 |
Health Care |
5.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 92.1% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign |
12.0% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 92.1% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 28.4% |
|||
Auto Components - 0.7% |
|||
Spartan Motors, Inc. |
113,410 |
$ 1,254,315 |
|
Automobiles - 0.3% |
|||
National R.V. Holdings, Inc. (a) |
57,700 |
615,659 |
|
Distributors - 0.4% |
|||
WESCO International, Inc. (a) |
25,000 |
844,750 |
|
Hotels, Restaurants & Leisure - 3.7% |
|||
Ambassadors Group, Inc. |
3,650 |
124,100 |
|
CBRL Group, Inc. |
13,600 |
559,096 |
|
Cosi, Inc. (a) |
147,200 |
883,200 |
|
Famous Dave's of America, Inc. (a) |
89,900 |
1,069,810 |
|
Kerzner International Ltd. (a) |
14,470 |
872,975 |
|
La Quinta Corp. unit (a) |
106,300 |
923,747 |
|
Penn National Gaming, Inc. (a) |
29,340 |
1,924,411 |
|
Wyndham International, Inc. Class A (a) |
834,380 |
792,661 |
|
|
7,150,000 |
||
Household Durables - 3.0% |
|||
Interface, Inc. Class A (a) |
284,090 |
2,678,969 |
|
Jarden Corp. (a) |
65,650 |
3,019,900 |
|
Lifetime Hoan Corp. |
3,358 |
50,571 |
|
|
5,749,440 |
||
Leisure Equipment & Products - 6.1% |
|||
Marine Products Corp. |
35,820 |
907,321 |
|
MarineMax, Inc. (a) |
48,300 |
1,519,518 |
|
RC2 Corp. (a) |
322,990 |
9,350,561 |
|
|
11,777,400 |
||
Media - 0.5% |
|||
Emmis Communications Corp. Class A (a) |
51,900 |
911,883 |
|
Multiline Retail - 0.7% |
|||
Saks, Inc. |
40,300 |
573,469 |
|
Tuesday Morning Corp. (a) |
27,300 |
784,329 |
|
|
1,357,798 |
||
Specialty Retail - 7.4% |
|||
Asbury Automotive Group, Inc. (a) |
57,800 |
975,664 |
|
Cost Plus, Inc. (a) |
60,630 |
1,590,325 |
|
Genesco, Inc. (a) |
32,990 |
954,731 |
|
Hot Topic, Inc. (a) |
90,915 |
1,761,933 |
|
Kirkland's, Inc. (a) |
77,000 |
800,030 |
|
La Senza Corp. (sub. vtg.) |
19,100 |
186,221 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Specialty Retail - continued |
|||
Le Chateau, Inc.: |
|
|
|
Class A (sub. vtg.) (c) |
17,400 |
$ 312,304 |
|
Class A (sub. vtg.) |
15,100 |
301,136 |
|
Lithia Motors, Inc. Class A (sub. vtg.) |
37,525 |
1,019,930 |
|
Monro Muffler Brake, Inc. (a) |
4,100 |
106,354 |
|
Pacific Sunwear of California, Inc. (a) |
56,300 |
1,378,787 |
|
RONA, Inc. (a) |
58,240 |
2,119,269 |
|
Select Comfort Corp. (a) |
31,340 |
613,324 |
|
Sonic Automotive, Inc. Class A (sub. vtg.) |
39,800 |
929,728 |
|
Steiner Leisure Ltd. (a) |
17,030 |
528,254 |
|
The Cato Corp. Class A (sub. vtg.) |
17,240 |
524,096 |
|
|
14,102,086 |
||
Textiles, Apparel & Luxury Goods - 5.6% |
|||
Ashworth, Inc. (a) |
39,900 |
449,673 |
|
Oxford Industries, Inc. |
91,560 |
3,404,201 |
|
Steven Madden Ltd. (a) |
223,110 |
4,283,712 |
|
Tommy Hilfiger Corp. (a) |
161,130 |
1,582,297 |
|
True Religion Apparel, Inc. (a) |
103,900 |
950,685 |
|
|
10,670,568 |
||
TOTAL CONSUMER DISCRETIONARY |
54,433,899 |
||
CONSUMER STAPLES - 1.8% |
|||
Food Products - 1.8% |
|||
Green Mountain Coffee Roasters, Inc. (a) |
99,480 |
2,432,286 |
|
Hines Horticulture, Inc. (a) |
72,530 |
275,614 |
|
Poore Brothers, Inc. (a) |
122,530 |
412,926 |
|
Ridley, Inc. (a) |
44,600 |
344,998 |
|
|
3,465,824 |
||
ENERGY - 17.6% |
|||
Energy Equipment & Services - 3.3% |
|||
Maverick Tube Corp. (a) |
58,620 |
1,996,597 |
|
Oil States International, Inc. (a) |
28,860 |
549,783 |
|
Pason Systems, Inc. |
107,650 |
3,340,398 |
|
Willbros Group, Inc. (a) |
19,960 |
427,942 |
|
|
6,314,720 |
||
Oil & Gas - 14.3% |
|||
Blackrock Ventures, Inc. (a) |
166,490 |
1,297,255 |
|
Denbury Resources, Inc. (a) |
75,590 |
2,207,228 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Encore Acquisition Co. (a) |
79,080 |
$ 2,949,684 |
|
General Maritime Corp. (a) |
8,660 |
397,494 |
|
Holly Corp. |
132,750 |
4,017,015 |
|
Penn Virginia Corp. |
45,670 |
1,934,581 |
|
Quicksilver Resources, Inc. (a) |
231,100 |
10,267,765 |
|
Range Resources Corp. |
102,150 |
2,266,709 |
|
Thunder Energy, Inc. (a) |
268,860 |
1,826,268 |
|
Top Tankers, Inc. |
20,400 |
344,556 |
|
|
27,508,555 |
||
TOTAL ENERGY |
33,823,275 |
||
FINANCIALS - 20.7% |
|||
Capital Markets - 0.2% |
|||
Affiliated Managers Group, Inc. (a) |
6,000 |
380,460 |
|
Commercial Banks - 3.0% |
|||
Cathay General Bancorp |
30,120 |
1,094,260 |
|
Center Financial Corp., California |
82,960 |
1,726,398 |
|
Hanmi Financial Corp. |
37,520 |
1,333,086 |
|
Nara Bancorp, Inc. |
25,300 |
504,735 |
|
Wintrust Financial Corp. |
20,260 |
1,124,025 |
|
|
5,782,504 |
||
Consumer Finance - 0.5% |
|||
ACE Cash Express, Inc. (a) |
35,490 |
936,936 |
|
Diversified Financial Services - 0.9% |
|||
Marlin Business Services Corp. (a) |
99,100 |
1,803,620 |
|
Insurance - 8.0% |
|||
Arch Capital Group Ltd. (a) |
11,090 |
407,336 |
|
HCC Insurance Holdings, Inc. |
54,680 |
1,797,332 |
|
Hilb Rogal & Hobbs Co. |
24,650 |
876,554 |
|
IPC Holdings Ltd. |
54,600 |
2,304,666 |
|
National Interstate Corp. |
1,300 |
20,215 |
|
Philadelphia Consolidated Holding Corp. (a) |
12,580 |
843,741 |
|
RLI Corp. |
37,520 |
1,630,619 |
|
Specialty Underwriters' Alliance, Inc. |
174,900 |
1,708,773 |
|
StanCorp Financial Group, Inc. |
11,900 |
1,011,500 |
|
United America Indemnity Ltd. Class A |
127,412 |
2,293,416 |
|
USI Holdings Corp. (a) |
214,230 |
2,420,799 |
|
|
15,314,951 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
FINANCIALS - continued |
|||
Real Estate - 6.7% |
|||
American Campus Communities, Inc. |
44,620 |
$ 903,555 |
|
American Financial Realty Trust (SBI) |
63,800 |
960,190 |
|
CarrAmerica Realty Corp. |
18,360 |
557,226 |
|
Education Realty Trust, Inc. |
56,300 |
945,277 |
|
Extra Space Storage, Inc. |
47,000 |
609,590 |
|
Far East Consortium International Ltd. |
1,175,000 |
459,464 |
|
Feldman Mall Properties, Inc. |
125,000 |
1,600,000 |
|
GMH Communities Trust |
69,100 |
901,064 |
|
Highwoods Properties, Inc. (SBI) |
43,900 |
1,075,550 |
|
Kilroy Realty Corp. |
37,080 |
1,449,086 |
|
Macquarie Goodman Industrial Trust |
920,400 |
1,697,130 |
|
Pan Pacific Retail Properties, Inc. |
14,500 |
839,405 |
|
Reckson Associates Realty Corp. |
24,570 |
753,808 |
|
|
12,751,345 |
||
Thrifts & Mortgage Finance - 1.4% |
|||
Bank Mutual Corp. |
88,100 |
1,064,248 |
|
KNBT Bancorp, Inc. |
25,600 |
424,448 |
|
NetBank, Inc. |
118,100 |
1,127,855 |
|
|
2,616,551 |
||
TOTAL FINANCIALS |
39,586,367 |
||
HEALTH CARE - 5.4% |
|||
Biotechnology - 0.2% |
|||
Stratagene Corp. (a) |
61,700 |
407,220 |
|
Health Care Equipment & Supplies - 1.3% |
|||
Dade Behring Holdings, Inc. (a) |
9,540 |
545,211 |
|
DJ Orthopedics, Inc. (a) |
59,880 |
1,446,102 |
|
Orthofix International NV (a) |
10,790 |
431,384 |
|
|
2,422,697 |
||
Health Care Providers & Services - 3.7% |
|||
Air Methods Corp. (a) |
104,700 |
778,968 |
|
America Service Group, Inc. (a) |
32,860 |
901,350 |
|
DaVita, Inc. (a) |
9,650 |
404,914 |
|
Horizon Health Corp. (a) |
18,400 |
560,280 |
|
ICON PLC sponsored ADR (a) |
52,960 |
1,859,955 |
|
Medtox Scientific, Inc. (a) |
199,090 |
1,632,538 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Per-Se Technologies, Inc. (a) |
31,957 |
$ 466,572 |
|
PSS World Medical, Inc. (a) |
32,730 |
410,762 |
|
|
7,015,339 |
||
Pharmaceuticals - 0.2% |
|||
Connetics Corp. (a) |
11,500 |
280,830 |
|
Par Pharmaceutical Companies, Inc. (a) |
4,000 |
151,600 |
|
|
432,430 |
||
TOTAL HEALTH CARE |
10,277,686 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 0.5% |
|||
BE Aerospace, Inc. (a) |
65,760 |
709,550 |
|
Ceramic Protection Corp. (a) |
16,700 |
318,243 |
|
|
1,027,793 |
||
Air Freight & Logistics - 1.6% |
|||
Dynamex, Inc. (a) |
13,820 |
250,142 |
|
Hub Group, Inc. Class A (a) |
10,660 |
580,544 |
|
Park-Ohio Holdings Corp. (a) |
92,620 |
2,284,935 |
|
|
3,115,621 |
||
Building Products - 0.2% |
|||
Quixote Corp. |
22,300 |
445,777 |
|
Commercial Services & Supplies - 1.7% |
|||
Banta Corp. |
10,900 |
472,079 |
|
Cenveo, Inc. (a) |
213,130 |
628,734 |
|
Herman Miller, Inc. |
36,380 |
972,074 |
|
Standard Parking Corp. |
50,200 |
761,534 |
|
Waste Services, Inc. (a) |
95,000 |
313,500 |
|
|
3,147,921 |
||
Construction & Engineering - 1.9% |
|||
Comfort Systems USA, Inc. (a) |
339,600 |
2,312,676 |
|
Granite Construction, Inc. |
11,400 |
283,860 |
|
URS Corp. (a) |
35,000 |
987,350 |
|
|
3,583,886 |
||
Electrical Equipment - 1.1% |
|||
A.O. Smith Corp. |
16,000 |
433,760 |
|
Acuity Brands, Inc. |
61,650 |
1,693,526 |
|
|
2,127,286 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Industrial Conglomerates - 0.9% |
|||
Carlisle Companies, Inc. |
20,800 |
$ 1,311,856 |
|
Walter Industries, Inc. |
11,600 |
406,232 |
|
|
1,718,088 |
||
Machinery - 3.6% |
|||
Manitowoc Co., Inc. |
42,960 |
1,563,744 |
|
Tennant Co. |
24,000 |
929,040 |
|
Trinity Industries, Inc. |
6,082 |
183,981 |
|
Wabtec Corp. |
35,900 |
669,176 |
|
Watts Water Technologies, Inc. Class A |
111,410 |
3,570,691 |
|
|
6,916,632 |
||
Marine - 0.1% |
|||
Alexander & Baldwin, Inc. |
4,000 |
184,000 |
|
Trading Companies & Distributors - 0.3% |
|||
UAP Holding Corp. |
32,000 |
480,000 |
|
TOTAL INDUSTRIALS |
22,747,004 |
||
INFORMATION TECHNOLOGY - 4.0% |
|||
Electronic Equipment & Instruments - 1.2% |
|||
KEMET Corp. (a) |
123,800 |
1,046,110 |
|
Mettler-Toledo International, Inc. (a) |
18,430 |
924,449 |
|
Winland Electronics, Inc. (a) |
72,860 |
289,254 |
|
|
2,259,813 |
||
Internet Software & Services - 1.0% |
|||
Cryptologic, Inc. |
20,260 |
501,337 |
|
j2 Global Communications, Inc. (a) |
3,960 |
128,621 |
|
Mediagrif Interactive Technologies, Inc. (a) |
101,250 |
803,604 |
|
Vitria Technology, Inc. (a) |
105,590 |
432,919 |
|
|
1,866,481 |
||
Semiconductors & Semiconductor Equipment - 1.1% |
|||
Cascade Microtech, Inc. |
37,000 |
392,200 |
|
Fairchild Semiconductor International, Inc. (a) |
70,000 |
998,900 |
|
MKS Instruments, Inc. (a) |
47,700 |
746,505 |
|
|
2,137,605 |
||
Software - 0.7% |
|||
Moldflow Corp. (a) |
79,580 |
1,344,902 |
|
TOTAL INFORMATION TECHNOLOGY |
7,608,801 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
MATERIALS - 2.3% |
|||
Chemicals - 2.0% |
|||
Albemarle Corp. |
16,500 |
$ 579,315 |
|
Cytec Industries, Inc. |
15,070 |
768,570 |
|
Pioneer Companies, Inc. (a) |
115,290 |
2,463,747 |
|
|
3,811,632 |
||
Metals & Mining - 0.3% |
|||
Massey Energy Co. |
18,250 |
692,223 |
|
TOTAL MATERIALS |
4,503,855 |
||
TOTAL COMMON STOCKS (Cost $170,461,828) |
176,446,711 |
||
Money Market Funds - 8.6% |
|||
|
|
|
|
Fidelity Cash Central Fund, 2.31% (b) |
16,381,642 |
16,381,642 |
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $186,843,470) |
192,828,353 |
||
NET OTHER ASSETS - (0.7)% |
(1,341,346) |
||
NET ASSETS - 100% |
$ 191,487,007 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(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 $312,304 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
Le Chateau, Inc. Class A (sub. vtg.) |
12/16/04 |
$ 321,007 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
88.0% |
Canada |
6.0% |
Bermuda |
1.4% |
Cayman Islands |
1.2% |
Ireland |
1.0% |
Others (individually less than 1%) |
2.4% |
|
100.0% |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (cost $186,843,470) - See accompanying schedule |
|
$ 192,828,353 |
Foreign currency held at value (cost $113,820) |
|
113,669 |
Receivable for investments sold |
|
2,558,421 |
Receivable for fund shares sold |
|
1,234,960 |
Dividends receivable |
|
40,072 |
Interest receivable |
|
34,569 |
Prepaid expenses |
|
69,563 |
Other affiliated receivables |
|
1,055 |
Other receivables |
|
28,689 |
Total assets |
|
196,909,351 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 5,180,265 |
|
Payable for fund shares redeemed |
70,768 |
|
Accrued management fee |
116,361 |
|
Distribution fees payable |
4,145 |
|
Other affiliated payables |
32,382 |
|
Other payables and accrued expenses |
18,423 |
|
Total liabilities |
|
5,422,344 |
|
|
|
Net Assets |
|
$ 191,487,007 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 185,399,299 |
Accumulated net investment loss |
|
(173,598) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
276,113 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
5,985,193 |
Net Assets |
|
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.09 |
|
|
|
Maximum offering price per share (100/94.25 of $11.09) |
|
$ 11.77 |
Class T: |
|
$ 11.10 |
|
|
|
Maximum offering price per share (100/96.50 of $11.10) |
|
$ 11.50 |
Class B: |
|
$ 11.08 |
|
|
|
Class C: |
|
$ 11.08 |
|
|
|
|
|
|
Small Cap Value: |
|
$ 11.10 |
|
|
|
Institutional Class: |
|
$ 11.10 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 122,601 |
Interest |
|
70,806 |
Total income |
|
193,407 |
|
|
|
Expenses |
|
|
Management fee |
$ 186,717 |
|
Transfer agent fees |
60,981 |
|
Distribution fees |
7,997 |
|
Accounting fees and expenses |
12,551 |
|
Non-interested trustees' compensation |
51 |
|
Custodian fees and expenses |
21,404 |
|
Registration fees |
43,403 |
|
Audit |
11,637 |
|
Legal |
12 |
|
Total expenses before reductions |
344,753 |
|
Expense reductions |
(47,342) |
297,411 |
Net investment income (loss) |
|
(104,004) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
256,343 |
|
Foreign currency transactions |
19,770 |
|
Total net realized gain (loss) |
|
276,113 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
5,984,883 |
|
Assets and liabilities in foreign currencies |
310 |
|
Total change in net unrealized appreciation (depreciation) |
|
5,985,193 |
Net gain (loss) |
|
6,261,306 |
Net increase (decrease) in net assets resulting from operations |
|
$ 6,157,302 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (104,004) |
Net realized gain (loss) |
276,113 |
Change in net unrealized appreciation (depreciation) |
5,985,193 |
Net increase (decrease) in net assets resulting |
6,157,302 |
Distributions to shareholders from net investment income |
(69,594) |
Share transactions - net increase (decrease) |
185,372,117 |
Redemption fees |
27,182 |
Total increase (decrease) in net assets |
191,487,007 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $173,598) |
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.09 |
Total Return B, C, D |
10.95% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.75% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.39% A |
Net investment income (loss) |
(.63)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,147 |
Portfolio turnover rate |
51% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.10 |
Total Return B, C, D |
11.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.07% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.64% A |
Net investment income (loss) |
(.88)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,304 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.56% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,414 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.43% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 3,040 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.31% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 181,522 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.48% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,060 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Value Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Value and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 10,083,627 |
|
Unrealized depreciation |
(4,158,686) |
|
Net unrealized appreciation (depreciation) |
$ 5,924,941 |
|
Cost for federal income tax purposes |
$ 186,903,412 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the fund's Schedule of Investments.
Semiannual Report
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $181,634,225 and $11,402,518, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 846 |
$ 366 |
Class T |
.25% |
.25% |
1,730 |
732 |
Class B |
.75% |
.25% |
2,162 |
1,999 |
Class C |
.75% |
.25% |
3,259 |
2,344 |
|
|
|
$ 7,997 |
$ 5,441 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 4,302 |
Class T |
1,849 |
Class B * |
98 |
Class C * |
- |
|
$ 6,249 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Value. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Value shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 868 |
.26* |
Class T |
1,158 |
.34* |
Class B |
534 |
.25* |
Class C |
627 |
.19* |
Small Cap Value |
57,440 |
.24* |
Institutional Class |
354 |
.17* |
|
$ 60,981 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $61,054 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $14,231 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
|
|
|
Class A |
1.50% |
$ 839 |
Class T |
1.75% |
1,091 |
Class B |
2.25% |
666 |
Class C |
2.25% |
571 |
Small Cap Value |
1.25% |
15,034 |
Institutional Class |
1.25% |
476 |
|
|
$ 18,677 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $28,665 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
November 3, 2004
(commencement
of operations) to |
From net investment income |
|
Class A |
$ 723 |
Small Cap Value |
68,438 |
Institutional Class |
433 |
Total |
$ 69,594 |
Semiannual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
November 3, 2004 (commencement of operations) to January 31, 2005 |
November 3, 2004 (commencement of operations) to January 31, 2005 |
Class A |
|
|
Shares sold |
193,487 |
$ 2,028,329 |
Reinvestment of distributions |
54 |
590 |
Net increase (decrease) |
193,541 |
$ 2,028,919 |
Class T |
|
|
Shares sold |
207,872 |
$ 2,197,638 |
Shares redeemed |
(229) |
(2,544) |
Net increase (decrease) |
207,643 |
$ 2,195,094 |
Class B |
|
|
Shares sold |
127,792 |
$ 1,329,789 |
Shares redeemed |
(189) |
(2,048) |
Net increase (decrease) |
127,603 |
$ 1,327,741 |
Class C |
|
|
Shares sold |
276,817 |
$ 2,931,865 |
Shares redeemed |
(2,521) |
(27,703) |
Net increase (decrease) |
274,296 |
$ 2,904,162 |
Small Cap Value |
|
|
Shares sold |
16,534,181 |
$ 177,946,027 |
Reinvestment of distributions |
6,024 |
66,449 |
Shares redeemed |
(191,628) |
(2,079,070) |
Net increase (decrease) |
16,348,577 |
$ 175,933,406 |
Institutional Class |
|
|
Shares sold |
95,449 |
$ 982,362 |
Reinvestment of distributions |
39 |
433 |
Net increase (decrease) |
95,488 |
$ 982,795 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ASCV-USAN-0305
1.803737.100
Fidelity Advisor
Fund - Institutional Class
Semiannual Report
January 31, 2005
(2_fidelity_logos) (Registered_Trademark)
Institutional Class
is a class of Fidelity®
Small Cap Value Fund
Chairman's Message |
3 |
Ned Johnson's message to shareholders. |
Shareholder Expense Example |
4 |
An example of shareholder expenses. |
Investment Summary |
6 |
A summary of the fund's investments. |
Investments |
7 |
A complete list of the fund's investments with their market values. |
Financial Statements |
14 |
Statements of assets and liabilities,
operations, and changes in net assets, |
Notes |
24 |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at 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 Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year or so, much has been reported about the mutual fund industry, and much of it has been more critical than I believe is warranted. Allegations that some companies have been less than forthright with their shareholders have cast a shadow on the entire industry. I continue to find these reports disturbing, and assert that they do not create an accurate picture of the industry overall. Therefore, I would like to remind everyone where Fidelity stands on these issues. I will say two things specifically regarding allegations that some mutual fund companies were in violation of the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities.
First, Fidelity has no agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not a new policy. This is not to say that someone could not deceive the company through fraudulent acts. However, we are extremely diligent in preventing fraud from occurring in this manner - and in every other. But I underscore again that Fidelity has no so-called "agreements" that sanction illegal practices.
Second, Fidelity continues to stand on record, as we have for years, in opposition to predatory short-term trading that adversely affects shareholders in a mutual fund. Back in the 1980s, we initiated a fee - which is returned to the fund and, therefore, to investors - - to discourage this activity. Further, we took the lead several years ago in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. I am confident we will find other ways to make it more difficult for predatory traders to operate. However, this will only be achieved through close cooperation among regulators, legislators and the industry.
Yes, there have been unfortunate instances of unethical and illegal activity within the mutual fund industry from time to time. That is true of any industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. But we are still concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems. Every system can be improved, and we support and applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings.
For nearly 60 years, Fidelity has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 3, 2004 to January 31, 2005). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2004 to January 31, 2005).
Actual Expenses
The first line of the table below 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.
Hypothetical Example for Comparison Purposes
The second line of the table below 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
Beginning |
Ending |
Expenses Paid |
Class A |
|
|
|
Actual |
$ 1,000.00 |
$ 1,109.50 |
$ 3.90 B |
HypotheticalA |
$ 1,000.00 |
$ 1,017.64 |
$ 7.63 C |
Class T |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.00 |
$ 4.55 B |
HypotheticalA |
$ 1,000.00 |
$ 1,016.38 |
$ 8.89 C |
Class B |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Class C |
|
|
|
Actual |
$ 1,000.00 |
$ 1,108.00 |
$ 5.85 B |
HypotheticalA |
$ 1,000.00 |
$ 1,013.86 |
$ 11.42 C |
Small Cap Value |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
Institutional Class |
|
|
|
Actual |
$ 1,000.00 |
$ 1,110.50 |
$ 3.25 B |
HypotheticalA |
$ 1,000.00 |
$ 1,018.90 |
$ 6.36 C |
A 5% return per year before expenses
B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 90/365 (to reflect the period November 3, 2004 to January 31, 2005).
C Hypothetical expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
Annualized |
Class A |
1.50% |
Class T |
1.75% |
Class B |
2.25% |
Class C |
2.25% |
Small Cap Value |
1.25% |
Institutional Class |
1.25% |
Semiannual Report
Top Ten Stocks as of January 31, 2005 |
|
|
% of fund's |
Quicksilver Resources, Inc. |
5.4 |
RC2 Corp. |
4.9 |
Steven Madden Ltd. |
2.3 |
Holly Corp. |
2.1 |
Watts Water Technologies, Inc. Class A |
1.9 |
Oxford Industries, Inc. |
1.8 |
Pason Systems, Inc. |
1.8 |
Jarden Corp. |
1.6 |
Encore Acquisition Co. |
1.5 |
Interface, Inc. Class A |
1.4 |
|
24.7 |
Top Five Market Sectors as of January 31, 2005 |
|
|
% of fund's |
Consumer Discretionary |
28.4 |
Financials |
20.7 |
Energy |
17.6 |
Industrials |
11.9 |
Health Care |
5.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of January 31, 2005* |
|
||||||
![]() |
Stocks 92.1% |
|
![]() |
|
|
||
![]() |
Short-Term |
|
![]() |
|
|
||
* Foreign |
12.0% |
|
|
|
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 92.1% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 28.4% |
|||
Auto Components - 0.7% |
|||
Spartan Motors, Inc. |
113,410 |
$ 1,254,315 |
|
Automobiles - 0.3% |
|||
National R.V. Holdings, Inc. (a) |
57,700 |
615,659 |
|
Distributors - 0.4% |
|||
WESCO International, Inc. (a) |
25,000 |
844,750 |
|
Hotels, Restaurants & Leisure - 3.7% |
|||
Ambassadors Group, Inc. |
3,650 |
124,100 |
|
CBRL Group, Inc. |
13,600 |
559,096 |
|
Cosi, Inc. (a) |
147,200 |
883,200 |
|
Famous Dave's of America, Inc. (a) |
89,900 |
1,069,810 |
|
Kerzner International Ltd. (a) |
14,470 |
872,975 |
|
La Quinta Corp. unit (a) |
106,300 |
923,747 |
|
Penn National Gaming, Inc. (a) |
29,340 |
1,924,411 |
|
Wyndham International, Inc. Class A (a) |
834,380 |
792,661 |
|
|
7,150,000 |
||
Household Durables - 3.0% |
|||
Interface, Inc. Class A (a) |
284,090 |
2,678,969 |
|
Jarden Corp. (a) |
65,650 |
3,019,900 |
|
Lifetime Hoan Corp. |
3,358 |
50,571 |
|
|
5,749,440 |
||
Leisure Equipment & Products - 6.1% |
|||
Marine Products Corp. |
35,820 |
907,321 |
|
MarineMax, Inc. (a) |
48,300 |
1,519,518 |
|
RC2 Corp. (a) |
322,990 |
9,350,561 |
|
|
11,777,400 |
||
Media - 0.5% |
|||
Emmis Communications Corp. Class A (a) |
51,900 |
911,883 |
|
Multiline Retail - 0.7% |
|||
Saks, Inc. |
40,300 |
573,469 |
|
Tuesday Morning Corp. (a) |
27,300 |
784,329 |
|
|
1,357,798 |
||
Specialty Retail - 7.4% |
|||
Asbury Automotive Group, Inc. (a) |
57,800 |
975,664 |
|
Cost Plus, Inc. (a) |
60,630 |
1,590,325 |
|
Genesco, Inc. (a) |
32,990 |
954,731 |
|
Hot Topic, Inc. (a) |
90,915 |
1,761,933 |
|
Kirkland's, Inc. (a) |
77,000 |
800,030 |
|
La Senza Corp. (sub. vtg.) |
19,100 |
186,221 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - continued |
|||
Specialty Retail - continued |
|||
Le Chateau, Inc.: |
|
|
|
Class A (sub. vtg.) (c) |
17,400 |
$ 312,304 |
|
Class A (sub. vtg.) |
15,100 |
301,136 |
|
Lithia Motors, Inc. Class A (sub. vtg.) |
37,525 |
1,019,930 |
|
Monro Muffler Brake, Inc. (a) |
4,100 |
106,354 |
|
Pacific Sunwear of California, Inc. (a) |
56,300 |
1,378,787 |
|
RONA, Inc. (a) |
58,240 |
2,119,269 |
|
Select Comfort Corp. (a) |
31,340 |
613,324 |
|
Sonic Automotive, Inc. Class A (sub. vtg.) |
39,800 |
929,728 |
|
Steiner Leisure Ltd. (a) |
17,030 |
528,254 |
|
The Cato Corp. Class A (sub. vtg.) |
17,240 |
524,096 |
|
|
14,102,086 |
||
Textiles, Apparel & Luxury Goods - 5.6% |
|||
Ashworth, Inc. (a) |
39,900 |
449,673 |
|
Oxford Industries, Inc. |
91,560 |
3,404,201 |
|
Steven Madden Ltd. (a) |
223,110 |
4,283,712 |
|
Tommy Hilfiger Corp. (a) |
161,130 |
1,582,297 |
|
True Religion Apparel, Inc. (a) |
103,900 |
950,685 |
|
|
10,670,568 |
||
TOTAL CONSUMER DISCRETIONARY |
54,433,899 |
||
CONSUMER STAPLES - 1.8% |
|||
Food Products - 1.8% |
|||
Green Mountain Coffee Roasters, Inc. (a) |
99,480 |
2,432,286 |
|
Hines Horticulture, Inc. (a) |
72,530 |
275,614 |
|
Poore Brothers, Inc. (a) |
122,530 |
412,926 |
|
Ridley, Inc. (a) |
44,600 |
344,998 |
|
|
3,465,824 |
||
ENERGY - 17.6% |
|||
Energy Equipment & Services - 3.3% |
|||
Maverick Tube Corp. (a) |
58,620 |
1,996,597 |
|
Oil States International, Inc. (a) |
28,860 |
549,783 |
|
Pason Systems, Inc. |
107,650 |
3,340,398 |
|
Willbros Group, Inc. (a) |
19,960 |
427,942 |
|
|
6,314,720 |
||
Oil & Gas - 14.3% |
|||
Blackrock Ventures, Inc. (a) |
166,490 |
1,297,255 |
|
Denbury Resources, Inc. (a) |
75,590 |
2,207,228 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
ENERGY - continued |
|||
Oil & Gas - continued |
|||
Encore Acquisition Co. (a) |
79,080 |
$ 2,949,684 |
|
General Maritime Corp. (a) |
8,660 |
397,494 |
|
Holly Corp. |
132,750 |
4,017,015 |
|
Penn Virginia Corp. |
45,670 |
1,934,581 |
|
Quicksilver Resources, Inc. (a) |
231,100 |
10,267,765 |
|
Range Resources Corp. |
102,150 |
2,266,709 |
|
Thunder Energy, Inc. (a) |
268,860 |
1,826,268 |
|
Top Tankers, Inc. |
20,400 |
344,556 |
|
|
27,508,555 |
||
TOTAL ENERGY |
33,823,275 |
||
FINANCIALS - 20.7% |
|||
Capital Markets - 0.2% |
|||
Affiliated Managers Group, Inc. (a) |
6,000 |
380,460 |
|
Commercial Banks - 3.0% |
|||
Cathay General Bancorp |
30,120 |
1,094,260 |
|
Center Financial Corp., California |
82,960 |
1,726,398 |
|
Hanmi Financial Corp. |
37,520 |
1,333,086 |
|
Nara Bancorp, Inc. |
25,300 |
504,735 |
|
Wintrust Financial Corp. |
20,260 |
1,124,025 |
|
|
5,782,504 |
||
Consumer Finance - 0.5% |
|||
ACE Cash Express, Inc. (a) |
35,490 |
936,936 |
|
Diversified Financial Services - 0.9% |
|||
Marlin Business Services Corp. (a) |
99,100 |
1,803,620 |
|
Insurance - 8.0% |
|||
Arch Capital Group Ltd. (a) |
11,090 |
407,336 |
|
HCC Insurance Holdings, Inc. |
54,680 |
1,797,332 |
|
Hilb Rogal & Hobbs Co. |
24,650 |
876,554 |
|
IPC Holdings Ltd. |
54,600 |
2,304,666 |
|
National Interstate Corp. |
1,300 |
20,215 |
|
Philadelphia Consolidated Holding Corp. (a) |
12,580 |
843,741 |
|
RLI Corp. |
37,520 |
1,630,619 |
|
Specialty Underwriters' Alliance, Inc. |
174,900 |
1,708,773 |
|
StanCorp Financial Group, Inc. |
11,900 |
1,011,500 |
|
United America Indemnity Ltd. Class A |
127,412 |
2,293,416 |
|
USI Holdings Corp. (a) |
214,230 |
2,420,799 |
|
|
15,314,951 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
FINANCIALS - continued |
|||
Real Estate - 6.7% |
|||
American Campus Communities, Inc. |
44,620 |
$ 903,555 |
|
American Financial Realty Trust (SBI) |
63,800 |
960,190 |
|
CarrAmerica Realty Corp. |
18,360 |
557,226 |
|
Education Realty Trust, Inc. |
56,300 |
945,277 |
|
Extra Space Storage, Inc. |
47,000 |
609,590 |
|
Far East Consortium International Ltd. |
1,175,000 |
459,464 |
|
Feldman Mall Properties, Inc. |
125,000 |
1,600,000 |
|
GMH Communities Trust |
69,100 |
901,064 |
|
Highwoods Properties, Inc. (SBI) |
43,900 |
1,075,550 |
|
Kilroy Realty Corp. |
37,080 |
1,449,086 |
|
Macquarie Goodman Industrial Trust |
920,400 |
1,697,130 |
|
Pan Pacific Retail Properties, Inc. |
14,500 |
839,405 |
|
Reckson Associates Realty Corp. |
24,570 |
753,808 |
|
|
12,751,345 |
||
Thrifts & Mortgage Finance - 1.4% |
|||
Bank Mutual Corp. |
88,100 |
1,064,248 |
|
KNBT Bancorp, Inc. |
25,600 |
424,448 |
|
NetBank, Inc. |
118,100 |
1,127,855 |
|
|
2,616,551 |
||
TOTAL FINANCIALS |
39,586,367 |
||
HEALTH CARE - 5.4% |
|||
Biotechnology - 0.2% |
|||
Stratagene Corp. (a) |
61,700 |
407,220 |
|
Health Care Equipment & Supplies - 1.3% |
|||
Dade Behring Holdings, Inc. (a) |
9,540 |
545,211 |
|
DJ Orthopedics, Inc. (a) |
59,880 |
1,446,102 |
|
Orthofix International NV (a) |
10,790 |
431,384 |
|
|
2,422,697 |
||
Health Care Providers & Services - 3.7% |
|||
Air Methods Corp. (a) |
104,700 |
778,968 |
|
America Service Group, Inc. (a) |
32,860 |
901,350 |
|
DaVita, Inc. (a) |
9,650 |
404,914 |
|
Horizon Health Corp. (a) |
18,400 |
560,280 |
|
ICON PLC sponsored ADR (a) |
52,960 |
1,859,955 |
|
Medtox Scientific, Inc. (a) |
199,090 |
1,632,538 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
HEALTH CARE - continued |
|||
Health Care Providers & Services - continued |
|||
Per-Se Technologies, Inc. (a) |
31,957 |
$ 466,572 |
|
PSS World Medical, Inc. (a) |
32,730 |
410,762 |
|
|
7,015,339 |
||
Pharmaceuticals - 0.2% |
|||
Connetics Corp. (a) |
11,500 |
280,830 |
|
Par Pharmaceutical Companies, Inc. (a) |
4,000 |
151,600 |
|
|
432,430 |
||
TOTAL HEALTH CARE |
10,277,686 |
||
INDUSTRIALS - 11.9% |
|||
Aerospace & Defense - 0.5% |
|||
BE Aerospace, Inc. (a) |
65,760 |
709,550 |
|
Ceramic Protection Corp. (a) |
16,700 |
318,243 |
|
|
1,027,793 |
||
Air Freight & Logistics - 1.6% |
|||
Dynamex, Inc. (a) |
13,820 |
250,142 |
|
Hub Group, Inc. Class A (a) |
10,660 |
580,544 |
|
Park-Ohio Holdings Corp. (a) |
92,620 |
2,284,935 |
|
|
3,115,621 |
||
Building Products - 0.2% |
|||
Quixote Corp. |
22,300 |
445,777 |
|
Commercial Services & Supplies - 1.7% |
|||
Banta Corp. |
10,900 |
472,079 |
|
Cenveo, Inc. (a) |
213,130 |
628,734 |
|
Herman Miller, Inc. |
36,380 |
972,074 |
|
Standard Parking Corp. |
50,200 |
761,534 |
|
Waste Services, Inc. (a) |
95,000 |
313,500 |
|
|
3,147,921 |
||
Construction & Engineering - 1.9% |
|||
Comfort Systems USA, Inc. (a) |
339,600 |
2,312,676 |
|
Granite Construction, Inc. |
11,400 |
283,860 |
|
URS Corp. (a) |
35,000 |
987,350 |
|
|
3,583,886 |
||
Electrical Equipment - 1.1% |
|||
A.O. Smith Corp. |
16,000 |
433,760 |
|
Acuity Brands, Inc. |
61,650 |
1,693,526 |
|
|
2,127,286 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Industrial Conglomerates - 0.9% |
|||
Carlisle Companies, Inc. |
20,800 |
$ 1,311,856 |
|
Walter Industries, Inc. |
11,600 |
406,232 |
|
|
1,718,088 |
||
Machinery - 3.6% |
|||
Manitowoc Co., Inc. |
42,960 |
1,563,744 |
|
Tennant Co. |
24,000 |
929,040 |
|
Trinity Industries, Inc. |
6,082 |
183,981 |
|
Wabtec Corp. |
35,900 |
669,176 |
|
Watts Water Technologies, Inc. Class A |
111,410 |
3,570,691 |
|
|
6,916,632 |
||
Marine - 0.1% |
|||
Alexander & Baldwin, Inc. |
4,000 |
184,000 |
|
Trading Companies & Distributors - 0.3% |
|||
UAP Holding Corp. |
32,000 |
480,000 |
|
TOTAL INDUSTRIALS |
22,747,004 |
||
INFORMATION TECHNOLOGY - 4.0% |
|||
Electronic Equipment & Instruments - 1.2% |
|||
KEMET Corp. (a) |
123,800 |
1,046,110 |
|
Mettler-Toledo International, Inc. (a) |
18,430 |
924,449 |
|
Winland Electronics, Inc. (a) |
72,860 |
289,254 |
|
|
2,259,813 |
||
Internet Software & Services - 1.0% |
|||
Cryptologic, Inc. |
20,260 |
501,337 |
|
j2 Global Communications, Inc. (a) |
3,960 |
128,621 |
|
Mediagrif Interactive Technologies, Inc. (a) |
101,250 |
803,604 |
|
Vitria Technology, Inc. (a) |
105,590 |
432,919 |
|
|
1,866,481 |
||
Semiconductors & Semiconductor Equipment - 1.1% |
|||
Cascade Microtech, Inc. |
37,000 |
392,200 |
|
Fairchild Semiconductor International, Inc. (a) |
70,000 |
998,900 |
|
MKS Instruments, Inc. (a) |
47,700 |
746,505 |
|
|
2,137,605 |
||
Software - 0.7% |
|||
Moldflow Corp. (a) |
79,580 |
1,344,902 |
|
TOTAL INFORMATION TECHNOLOGY |
7,608,801 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
MATERIALS - 2.3% |
|||
Chemicals - 2.0% |
|||
Albemarle Corp. |
16,500 |
$ 579,315 |
|
Cytec Industries, Inc. |
15,070 |
768,570 |
|
Pioneer Companies, Inc. (a) |
115,290 |
2,463,747 |
|
|
3,811,632 |
||
Metals & Mining - 0.3% |
|||
Massey Energy Co. |
18,250 |
692,223 |
|
TOTAL MATERIALS |
4,503,855 |
||
TOTAL COMMON STOCKS (Cost $170,461,828) |
176,446,711 |
||
Money Market Funds - 8.6% |
|||
|
|
|
|
Fidelity Cash Central Fund, 2.31% (b) |
16,381,642 |
16,381,642 |
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $186,843,470) |
192,828,353 |
||
NET OTHER ASSETS - (0.7)% |
(1,341,346) |
||
NET ASSETS - 100% |
$ 191,487,007 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is 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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(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 $312,304 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
Le Chateau, Inc. Class A (sub. vtg.) |
12/16/04 |
$ 321,007 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America |
88.0% |
Canada |
6.0% |
Bermuda |
1.4% |
Cayman Islands |
1.2% |
Ireland |
1.0% |
Others (individually less than 1%) |
2.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
January 31, 2005 (Unaudited) |
||
|
|
|
Assets |
|
|
Investment in securities, at value (cost $186,843,470) - See accompanying schedule |
|
$ 192,828,353 |
Foreign currency held at value (cost $113,820) |
|
113,669 |
Receivable for investments sold |
|
2,558,421 |
Receivable for fund shares sold |
|
1,234,960 |
Dividends receivable |
|
40,072 |
Interest receivable |
|
34,569 |
Prepaid expenses |
|
69,563 |
Other affiliated receivables |
|
1,055 |
Other receivables |
|
28,689 |
Total assets |
|
196,909,351 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 5,180,265 |
|
Payable for fund shares redeemed |
70,768 |
|
Accrued management fee |
116,361 |
|
Distribution fees payable |
4,145 |
|
Other affiliated payables |
32,382 |
|
Other payables and accrued expenses |
18,423 |
|
Total liabilities |
|
5,422,344 |
|
|
|
Net Assets |
|
$ 191,487,007 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 185,399,299 |
Accumulated net investment loss |
|
(173,598) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
276,113 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
5,985,193 |
Net Assets |
|
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
January 31, 2005 (Unaudited) |
||
|
|
|
Calculation of Maximum Offering Price |
|
$ 11.09 |
|
|
|
Maximum offering price per share (100/94.25 of $11.09) |
|
$ 11.77 |
Class T: |
|
$ 11.10 |
|
|
|
Maximum offering price per share (100/96.50 of $11.10) |
|
$ 11.50 |
Class B: |
|
$ 11.08 |
|
|
|
Class C: |
|
$ 11.08 |
|
|
|
|
|
|
Small Cap Value: |
|
$ 11.10 |
|
|
|
Institutional Class: |
|
$ 11.10 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 122,601 |
Interest |
|
70,806 |
Total income |
|
193,407 |
|
|
|
Expenses |
|
|
Management fee |
$ 186,717 |
|
Transfer agent fees |
60,981 |
|
Distribution fees |
7,997 |
|
Accounting fees and expenses |
12,551 |
|
Non-interested trustees' compensation |
51 |
|
Custodian fees and expenses |
21,404 |
|
Registration fees |
43,403 |
|
Audit |
11,637 |
|
Legal |
12 |
|
Total expenses before reductions |
344,753 |
|
Expense reductions |
(47,342) |
297,411 |
Net investment income (loss) |
|
(104,004) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
256,343 |
|
Foreign currency transactions |
19,770 |
|
Total net realized gain (loss) |
|
276,113 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
5,984,883 |
|
Assets and liabilities in foreign currencies |
310 |
|
Total change in net unrealized appreciation (depreciation) |
|
5,985,193 |
Net gain (loss) |
|
6,261,306 |
Net increase (decrease) in net assets resulting from operations |
|
$ 6,157,302 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
November 3, 2004 (commencement of operations) to January 31, 2005 (Unaudited) |
Increase (Decrease) in Net Assets |
|
Operations |
|
Net investment income (loss) |
$ (104,004) |
Net realized gain (loss) |
276,113 |
Change in net unrealized appreciation (depreciation) |
5,985,193 |
Net increase (decrease) in net assets resulting |
6,157,302 |
Distributions to shareholders from net investment income |
(69,594) |
Share transactions - net increase (decrease) |
185,372,117 |
Redemption fees |
27,182 |
Total increase (decrease) in net assets |
191,487,007 |
|
|
Net Assets |
|
Beginning of period |
- |
End of period (including accumulated net investment loss of $173,598) |
$ 191,487,007 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.09 |
Total Return B, C, D |
10.95% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
1.75% A |
Expenses net of voluntary waivers, if any |
1.50% A |
Expenses net of all reductions |
1.39% A |
Net investment income (loss) |
(.63)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,147 |
Portfolio turnover rate |
51% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.02) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.10 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.10 |
Total Return B, C, D |
11.00% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.07% A |
Expenses net of voluntary waivers, if any |
1.75% A |
Expenses net of all reductions |
1.64% A |
Net investment income (loss) |
(.88)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 2,304 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.56% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,414 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
Period ended January 31, 2005 F |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) E |
(.03) |
Net realized and unrealized gain (loss) |
1.11 |
Total from investment operations |
1.08 |
Redemption fees added to paid in capital E |
- H |
Net asset value, end of period |
$ 11.08 |
Total Return B, C, D |
10.80% |
Ratios to Average Net Assets G |
|
Expenses before expense reductions |
2.43% A |
Expenses net of voluntary waivers, if any |
2.25% A |
Expenses net of all reductions |
2.14% A |
Net investment income (loss) |
(1.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 3,040 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Value
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.31% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 181,522 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
Period ended January 31, 2005 E |
|
(Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period |
$ 10.00 |
Income from Investment Operations |
|
Net investment income (loss) D |
(.01) |
Net realized and unrealized gain (loss) |
1.12 |
Total from investment operations |
1.11 |
Distributions from net investment income |
(.01) |
Redemption fees added to paid in capital D |
- G |
Net asset value, end of period |
$ 11.10 |
Total Return B, C |
11.05% |
Ratios to Average Net Assets F |
|
Expenses before expense reductions |
1.48% A |
Expenses net of voluntary waivers, if any |
1.25% A |
Expenses net of all reductions |
1.14% A |
Net investment income (loss) |
(.38)% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) |
$ 1,060 |
Portfolio turnover rate |
51% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 3, 2004 (commencement of operations) to January 31, 2005.
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 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 any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended January 31, 2005 (Unaudited)
1. Significant Accounting Policies.
Fidelity Small Cap Value Fund (the fund) is a fund of Fidelity Securities Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, Small Cap Value and Institutional Class 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated 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 also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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.
Semiannual Report
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate 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. Security transactions are accounted for as of trade date. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 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 generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation |
$ 10,083,627 |
|
Unrealized depreciation |
(4,158,686) |
|
Net unrealized appreciation (depreciation) |
$ 5,924,941 |
|
Cost for federal income tax purposes |
$ 186,903,412 |
|
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the fund and accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the fund's Schedule of Investments.
Semiannual Report
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $181,634,225 and $11,402,518, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR 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 a group fee rate that averaged .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. 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 investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. The fund's performance adjustment will not take effect until November 1, 2005. Subsequent months will be added until the performance period includes 36 months. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. 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 FMR, 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 and the total amounts paid to and retained by FDC were as follows:
|
Distribution |
Service |
Paid to |
Retained |
Class A |
0% |
.25% |
$ 846 |
$ 366 |
Class T |
.25% |
.25% |
1,730 |
732 |
Class B |
.75% |
.25% |
2,162 |
1,999 |
Class C |
.75% |
.25% |
3,259 |
2,344 |
|
|
|
$ 7,997 |
$ 5,441 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 4,302 |
Class T |
1,849 |
Class B * |
98 |
Class C * |
- |
|
$ 6,249 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the fund, except for Small Cap Value. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the transfer agent for Small Cap Value shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC or FSC, were as follows:
|
Amount |
% of |
Class A |
$ 868 |
.26* |
Class T |
1,158 |
.34* |
Class B |
534 |
.25* |
Class C |
627 |
.19* |
Small Cap Value |
57,440 |
.24* |
Institutional Class |
354 |
.17* |
|
$ 60,981 |
|
* Annualized
Accounting Fees. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $61,054 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $14,231 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $4.2 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
|
Expense |
Reimbursement |
|
|
|
Class A |
1.50% |
$ 839 |
Class T |
1.75% |
1,091 |
Class B |
2.25% |
666 |
Class C |
2.25% |
571 |
Small Cap Value |
1.25% |
15,034 |
Institutional Class |
1.25% |
476 |
|
|
$ 18,677 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $28,665 for the period.
Semiannual Report
7. Other.
The fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
November 3, 2004
(commencement
of operations) to |
From net investment income |
|
Class A |
$ 723 |
Small Cap Value |
68,438 |
Institutional Class |
433 |
Total |
$ 69,594 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
|
November 3, 2004 (commencement of operations) to January 31, 2005 |
November 3, 2004 (commencement of operations) to January 31, 2005 |
Class A |
|
|
Shares sold |
193,487 |
$ 2,028,329 |
Reinvestment of distributions |
54 |
590 |
Net increase (decrease) |
193,541 |
$ 2,028,919 |
Class T |
|
|
Shares sold |
207,872 |
$ 2,197,638 |
Shares redeemed |
(229) |
(2,544) |
Net increase (decrease) |
207,643 |
$ 2,195,094 |
Class B |
|
|
Shares sold |
127,792 |
$ 1,329,789 |
Shares redeemed |
(189) |
(2,048) |
Net increase (decrease) |
127,603 |
$ 1,327,741 |
Class C |
|
|
Shares sold |
276,817 |
$ 2,931,865 |
Shares redeemed |
(2,521) |
(27,703) |
Net increase (decrease) |
274,296 |
$ 2,904,162 |
Small Cap Value |
|
|
Shares sold |
16,534,181 |
$ 177,946,027 |
Reinvestment of distributions |
6,024 |
66,449 |
Shares redeemed |
(191,628) |
(2,079,070) |
Net increase (decrease) |
16,348,577 |
$ 175,933,406 |
Institutional Class |
|
|
Shares sold |
95,449 |
$ 982,362 |
Reinvestment of distributions |
39 |
433 |
Net increase (decrease) |
95,488 |
$ 982,795 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ASCVI-USAN-0305
1.803748.100
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Securities Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) |
(1) |
Not applicable. |
(a) |
(2) |
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) |
(3) |
Not applicable. |
(b) |
|
Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Securities Fund
By: |
/s/Christine Reynolds |
|
Christine Reynolds |
|
President and Treasurer |
|
|
Date: |
March 23, 2005 |
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/Christine Reynolds |
|
Christine Reynolds |
|
President and Treasurer |
|
|
Date: |
March 23, 2005 |
By: |
/s/Timothy F. Hayes |
|
Timothy F. Hayes |
|
Chief Financial Officer |
|
|
Date: |
March 23, 2005 |
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 Securities Fund (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: March 23, 2005
/s/Christine Reynolds |
Christine Reynolds |
President and Treasurer |
Dated: March 23, 2005
/s/Timothy F. Hayes |
Timothy F. Hayes |
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.CERT
I, Christine Reynolds, certify that:
1. I have reviewed this report on Form N-CSR of Fidelity Securities Fund;
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: March 23, 2005
/s/Christine Reynolds |
Christine Reynolds |
President and Treasurer |
I, Timothy F. Hayes, certify that:
1. I have reviewed this report on Form N-CSR of Fidelity Securities Fund;
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: March 23, 2005
/s/Timothy F. Hayes |
Timothy F. Hayes |
Chief Financial Officer |
(8;+3[79>Z; M;:K"L++BW$3!9`.`-WS29QSP1U.*]L^%US:7_CSQO?V,'D6UY%IEVB%`I_>P M,Y)`XW$L2>O)/6OG[P[=02+IHO2JV\,\EA/+N6,I#
K-@$A0,DG'`!-?
M;?AS0+'PMX?L]%TU9!:6J%4\QMS,22S,3ZEB3Q@<\`#B@#4HHHH`****`"BB
MB@`HHHH`****`"N;\<^#+'QUX:DT>^DDA(<36\Z
;_`&3JM]8>=CS/LEP\6_&<9VD9QD]?4UZ!X=^//C'1?+BOI8-7 MM5\M2MVF)`B\$"1<$L1_$X?D`^N0#ZOHK@_`WQ9\.>.'CLX'DLM69"QLK@1@H;# M!0=@VD-EOX02`V,5Q^C77Q#^)FB1:K;:[IOAK1;M)UB6R@:>Z(WE`KE\`$!6 MPZ,ISSCIM`/7**\[/P;T"]N$EU[5/$'B!(T98HM4U%G6(L1EEVA2#\H'7'MP M,?/'Q0TNT\->/M9T'2$DMM+C>W=;82NR[O)4Y.XDD@R/@GIN..M`'V717PII MOB77M&MVM]+UO4K&!G+M':W3Q*6P!DA2!G``S["O2-`_:%\5Z:ZKK$-IK$&\ MLQ9!!+C;@*K(-H`//*$\D9Z8`/J.BN3\&?$;PYXZ1UTBYD6[B3?+9W";)47< M1G&2&'3E2<;ES@G%=90`4444`%%%%`!1110`4444`%%%%`!7F/C7XGR0W-]X M<\(1?:];AVQSWC;?LUD22&R2?FD7^[@C. .IO#%E:Z3HLD#^(M M2<1VZ/EC;QG.Z !C`SQG)PP5A7G6D:6NDV;1&>6YGFD::XN)F+/-*WWG. M3W_SDY)`..T_7M6^'GCJ/6-2NKV^N)Y!% (=(9)=0T=X]4T^ZB,;#:I#,P9@0R;/GP/O%%Z]#Y]XDT"W M\0:6\$B+]H0%K>4G&Q\>N#\IXR/Z@58^"?BX9N?AYKT:./WJ6D30AU;[[31. M1D$?>89\PS]T4QGO&DZE#K.C6.J6ZR+!>V\=Q&L@`8*ZA@#@D9P?4U\V?M M'?\`)0]/_P"P5'_Z-EKU;X2&72%\1>#)_//]@Z@?LQEV'_19LO%\R]6.'8Y' M&\#V'E/[1W_)0]/_`.P5'_Z-EI"/'Z***`"OH/X5?&V:ZN-.\,>)5DFGE<6] MOJ08LSL2!&DBXR23D;\_W 1_!#XC3>*=+ET+6+F2?6+%-Z M2NAS-;C:H+-GEU8X)."05/S'<:] -[R"^M_!_AN\CAU2[1FOKI,L]C#@$8P,!V!X.01QTW M*PY+3-.M])TZ&QM0PAA&!N.2 ([#PKKUOJPNDDT'Q,$CO+N MYE=Y;*]C0DB60C!+L[$DA<[BW"K\W;^$U_X07XG:EX4\OR]'UW=J6E;4PL 7:]IB:;<7M_\`9)+C1K^$1:K:V[E)!AMPN$&=I92` M>1CKGAF(U8==U/6O"4%U]I,OB_P44U&*X>?(O[)P&8_>1MICV;\C<0`#\TA` M!GT=7R!\;?\`DKVN_P#;O_Z3QU]7Z'K-GXAT.RU>P??:W<2RID@E<]5;!(#` MY!&>""*^4/C;_P`E>UW_`+=__2>.@1Y_1110!)!/-:W$5Q;RR0SQ.'CDC8JR M,#D$$<@@\YKZ;^%7QE_X2V\M_#VMV_EZN8CY5U']RZ902V5`_=MM&?[IPWW> M%/S!4D$\UK<17%O+)#/$X>.2-BK(P.001R"#SF@#[[HKS_X2>/\`_A.O"_\` MIDF[6;#;'>XBV*V2VQQCCY@ISC&<`8SZ!0`4444`%%%%`!1110`445R?Q- MUN;P]\-]+/&VN^*E\P MV
*;; M4/%O@_QY9121G5'.@:XD42*OVEE4Q@!OF(+8;<&)V(HX.5/+_M'?\E#T_P#[ M!4?_`*-EKG/%FG#PW-?>5;+)I&K1[?)3*BWG7#(ZY!4'.['&=CRJ-N ?0HEG=U52\J33)(V%X`+*Q&,<$<#I2$<'1110`4444`=!X' M\2?\(CXTTO7#'YD=K+^]0+DF-@4?:,CYMK-C)QG&>*^WZ^`*^R_A+J4VJ_"O MP_<3K&KI;FW`0$#;$[1*>2>=J`GWSTZ4`=I1110`4444`%%%%`!1110`4444 M`%%%%`!1110`4444`%%%%`!5>_OK?3-.N;^\D\NUM8GFF?:3M102QP.3@`]* ML5YU\:]1N;7P!_9]H62?6+R'3A*)2GEAR6.<`D@A"I'HQZ]"`>:>'I;C59M4 M\27D "*UMHK>%=L42!$7).%` MP!S4E,8V2-)HGBE17C<%65AD,#U!'<5YU?O?_#WQ;H^L6`DFT^TE+P*X7Y5; M/F0;R"0"I;&>F]B.=Q/H]07=I;W]I+:W42RP2C:Z-W_P/OVH`W_@IKL,4=YX M365Y+6%/[1TB1\%GLY6R58JH7?&[;7Y/SLZCA*\<^-O_`"5[7?\`MW_])XZJ M:?-J'PW\<:/=S\VMI=F83PP(7FA;"RJ">IV9&TGY2Q(QNW&?XS3PW7Q6UBXM MY8YH)4MGCDC8,KJ;>,@@C@@CG-(1P=%%%`!1110!Z!\&/$G_``CGQ*L-T>^' M4O\`B7R87++YC+M(Y&/G"9//R[N,XKZ_KX`K[K\-:E-K/A72-4N%C6>]LH;B M18P0H9T#$#))QD^IH`U****`"BBB@`HHHH`*\P^.69?"FC6;/(+>[UNV@N(U M U>GUYE\ A&?R/7D$9XKWJN"^)VF>;I]IJ2)\T+F*0K'D[6Y!+=@",?5 M_P`P#S&BBBD(****`"OI_P#9Q_Y)YJ'_`&%9/_145?,%?4?[.L$T/PYNGEBD M1)M3E>)F4@.OEQKE?4;E89'<$=J`/7****`"BBB@`HHHH`****`"BBB@`HHH MH`****`"BBB@`HHHH`*\B^,F9_$_@FSD>0VS37<[1!R%:2-$*,0.I!)Q]3ZF MO7:\D^,T U`'#T444A! M1110`5]?_!+_`))#H7_;Q_Z425\@5]A_!B":V^$F@I/%)$Y25PKJ5)5IG93S MV*D$'N"#0!WE%%%`!1110`4444`% - M N6,DD>)"P`RZ_*QP.,$@UJ5FWNFQ M>$?B7K>@1IY%C>[=1T^/]V%PPQ(%"XP`P(5<<+'^)TJ8PHHHH`*R_$6G'5O# MU]9(&,DD>8PI`RZ_,HR>,$@5J44`?.E%;7BS3/[*\2WENJ;8F?S8L1[%VMSA M1Z#)7C^[6+2$%%%%`!7VG\,M$F\/?#?0].N/,\];?S9%DC,;1M(QD*%3R"I? M;^'0=*^7/ACX1_X33QS9:;*NZQB_TF]YQ^Y0C*_>!^8E4R#D;L]J^SZ`"BBB M@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"N`^,NCSZI\.[FZL M_,^V:3,FI0;64#,>=Q;=P0$9VQU)`Z]#W]1SP0W5O+;W$4 [B#".>-9%#=0&&1GWYJ>L+1K4^'M;UOPE*T@;3+MS M;+*R%FMG^:-LKU)!!/'&\#CH-VF,****`"N1^(M@ESX8:Y.T26DBN#MR2&.T MKGL.0?\`@(KKJK:A:?;]-NK/?L\^%XM^,[=P(SCOUH`^?:*=)&\,KQ2HR2(2 MK*PP5(Z@CL:;2$%%%%`$D$$UU<16]O%)-/*X2..-2S.Q.``!R23QBONO0M,_ ML3P]IFD^=YWV&TBMO-V[=^Q`N[&3C.,XR:^8/@7X1_X2/QRFI7"YL=&VW+\_ M>F)/E+PP(Y!?."/W>#]ZOJ^@`HHHH`****`"BBB@`HHHH`Y#XB>"!XUT.&.W MGCM=6L9A 3C-?1%<%X[^&-AXI=]7TUET[Q-&%,%^I(60J"`DJC@@@[2 MV"0`.H&T@'$45A_V[/I.HG1_%=G_`&-JBHKA97!BE4KG 0Y.3G++QTP,/^8_#S>O%FF?VKX:O+=4W2 MJGFQ8CWMN7G"CU."O']ZO#J0@JQ86-QJ>HVUA9Q^9=74J0PIN`W.Q`49/`R2 M.M7-`\.:OXIU1=-T6QDN[LH7V*0H51U+,Q`4=!DD WM[ MVX2.\\0!&\R\))6/<`"L:G@`#C=C< &C9M+'<:A HR,$[-,84444`>)>,['[!XLOD"R!)7\Y2X^]O&3CU M&XL/PK!KT7XHV'_'AJ*1_P!Z"23=_P`"08_[[Y_/M7G5(05J>'-`OO%/B"ST M735C-W=.53S&VJH`+,Q/H%!/&3QP">*N>$_!>N^-=1:ST6T\WRMIGF=@D<*L M<`LQ_$X&6(!P#@U]7^!?AOH7@.S'V&'SM2DB$=S?R9WR\Y.!DA%S_"/[JY+$ M9H`T/!?A.S\%>%[71;-_-\K+S3E`C32, VK9.R9,[201N4]5;!.&&",\ M&O,]1^";V2O)X1\37NG<2E+.\`N(`2=RJN>4`.06(=L'OSGURB@#PJZ\(_$K M398RVD:/J\;ALKI]V83&1C!8S8R#D]`>G..[#HOQ`\I2/`[>9DY7^U;?`' MG/)Z]NPZYX]XHH`\)@\+?$G4;@11Z!INDHJ%FEO[X3*YR,*/*R0>IY&..H[L MT3]F^!B9_$.LLI<-FUTQ<+&V[Y<229+#;V*@Y/4XY]YHH`R]`\.:1X6TM=-T M6QCM+0.7V*2Q9CU+,Q)8]!DD\`#H!6I110`4444`%%%%`!1110`4444`%%%% M`!1110`4444`%%%%`!1110`4444`%%%%`!1110!C^(?"NA>*[,6NN:9!>QK] MPN"'CR03M<89<[1G!&<8/%>;7OP8U72T#>%/%<^U$C"V>KJ)4;:W(\Q1E%VG MHJYXZ],>PT4`>$S^%OB3IUP8I-`TW5D9`RRV%\(50Y.5/FX)/0\#'/4]FMHO MQ`"IL\#L6(^<'5;<8.3P.>1C'IU/ID^\44`?/.H_#?Q_XQM)+2ZTC2]'@C*. MAO+TR.S_`#9*F+<,`<$,._&>VUHG[-^BVEQYNLZU=ZBBNC)%#$+=2`?F5^6) M!X'RE2.>>>/;**`*>E:58Z'I=OIFF6T=M9VZ;(HDZ*/YDDY))Y)))R35RBB@ M`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`" MBBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`** =**`"BBB@`HHHH`****`"BBB@`HHHH`****`/_]D_ ` end
E5@3>,_"]M<26]QXDT>*>)RD MD,5RD?PAT_4IDN?&&LZKXDN@9#MN)VB@C9V!)CC0YCX`& M`VWV'`&1\3_`_A?P[\(]6;2]"L;>:#R?+N/*#S+NG3/[ULN>"1R>G'2@#TJ# MQ)H5QJATR'6M.EU`.R&T2Z1I0RYW#8#G(P @]!0!]P45XEX*_:`L=4G@T_Q/:)IUS*X1;V$ M_P"CY);[X8YC'W1G+#)).T"O9;>XANK>*X@ECF@E4/'(C!E=2,@@C@@CG-`% MBBBB@`HHHH`****`"BBB@`HHHH`*S]5U2RT/2[C4M3N4MK.W3?)*_11_,DG` M`'))`&2:T*^=?V@/&LLVJ1>$K*XD2WMT66_520))&PR(W'(5<-P2"7&1E*`. M'^)7Q)O_`!YJ05=]OHUNQ-K:D\L>GF28X+D=NB@X'4EM#X.^/V\(>)%T^^GD M&C:BPCD4R*J02D@+,=W``'# _V_HG_``C5])G4=-C'D8CVA[5=JKDCCN MT`%%%%`!1110`4444`%%%%`%34+ZWTW3KF_NY/+MK:)YI7VD[44$L<#DX`/2 MOA[6]9O/$&MWNK7[[[J[E,KX)(7/15R20H&`!G@`"OK;XK:C/I?PO\07$"QL MSVXMR'!(VRNL3'@CG:Y(]\=>E?&U`!1110!IZ)K-YX?UNRU:P?9=6DHE3)(# M8ZJV""5(R",\@D5]'^//$]CXO^`&HZQ8R(PE2V\^)7W&"7SHMT;<`Y!/7`R, M$<$5\NUOZ;XGOM/\-:QX?#R2:?J21DPE\+'*DB.)`,'G:A4@8SD$YV@4`8%% M%%`!1110!WWP?U]M`^)6EL"XAO7^PS+&JL6$A`0<]`)/+)(YP#UZ'[!KX+T^ M^N--U&VO[23R[FVE2:)]H.UU(*G!X."!UK[TH`****`"BBB@`HHHH`****`. M%^+ME<7_`,*]?AMH_,D6%)B,@82.17<\^BJQ]\< ME`%2BBB@`HHHH`****`"BBB@"Q;V\UU<16\$4DT\K!(XT4LSL3@`` J_"CX4S M>,;A-7U='AT&)N!DJUXP/*J>H0'AF'^Z. #AHWAA_$%Y#MO=4_U. M]<-';@_+C*@C> *>)P\ '^!/@+9V0M-4\52BYNUVR?V:B@PQMS\LAY\S^$X&%R"/G4\^T6] MO#:V\5O!%'#!$H2.-%"JB@8``'``'&*L44`%%%%`!1110`4444`%%%%`!111 D0`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`'__9 ` end