UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
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Date of fiscal year end: |
July 31 |
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|
|
|
Date of reporting period: |
January 31, 2015 |
This report on Form N-CSR relates solely to the Registrant's Fidelity Dividend Growth Fund, Fidelity Leveraged Company Stock Fund, Fidelity Real Estate Income Fund, Fidelity Series Real Estate Equity Fund and Fidelity Series Real Estate Income Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity®
Dividend Growth
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
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Shareholder Expense Example |
An example of shareholder expenses. |
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|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
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Investments |
A complete list of the fund's investments with their market values. |
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Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
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Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
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Annualized |
Beginning |
Ending |
Expenses Paid |
|
Dividend Growth |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,030.20 |
$ 3.48 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.78 |
$ 3.47 |
|
Class K |
.56% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,030.70 |
$ 2.87 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.38 |
$ 2.85 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2015 |
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|
|
% of fund's |
% of fund's net assets |
|
Apple, Inc. |
4.4 |
4.0 |
|
Microsoft Corp. |
2.6 |
2.4 |
|
Johnson & Johnson |
2.4 |
2.3 |
|
Google, Inc. Class C |
2.3 |
1.2 |
|
Wells Fargo & Co. |
2.1 |
2.1 |
|
Oracle Corp. |
2.0 |
1.7 |
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Chevron Corp. |
2.0 |
2.2 |
|
Medtronic PLC |
2.0 |
1.6 |
|
Procter & Gamble Co. |
1.9 |
0.0 |
|
Amgen, Inc. |
1.9 |
1.6 |
|
|
23.6 |
|
|
Top Five Market Sectors as of January 31, 2015 |
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|
|
% of fund's |
% of fund's net assets |
|
Information Technology |
21.5 |
19.6 |
|
Health Care |
17.0 |
14.0 |
|
Financials |
14.0 |
15.9 |
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Consumer Discretionary |
11.8 |
11.9 |
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Consumer Staples |
11.7 |
10.7 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
 |
Stocks 97.2% |
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Stocks and |
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 |
Convertible |
|
|
Convertible |
|
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 |
Other Investments 0.0% |
|
 |
Other Investments 0.1% |
|
||
 |
Short-Term |
|
|
Short-Term |
|
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* Foreign investments |
17.0% |
|
** Foreign investments |
14.0% |
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Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 97.2% |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER DISCRETIONARY - 11.8% |
|||
|
Diversified Consumer Services - 0.9% |
|||
|
H&R Block, Inc. |
2,100,520 |
$ 72,006 |
|
|
Hotels, Restaurants & Leisure - 2.8% |
|||
|
ARAMARK Holdings Corp. |
1,806,600 |
56,583 |
|
|
Darden Restaurants, Inc. |
611,900 |
37,558 |
|
|
McDonald's Corp. |
946,900 |
87,531 |
|
|
Wyndham Worldwide Corp. |
603,691 |
50,583 |
|
|
|
232,255 |
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|
Media - 2.7% |
|||
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Altice SA |
585,700 |
49,042 |
|
|
Comcast Corp. Class A |
1,781,296 |
94,667 |
|
|
Corus Entertainment, Inc. Class B (non-vtg.) (d) |
555,400 |
9,428 |
|
|
MDC Partners, Inc. Class A (sub. vtg.) |
996,608 |
23,819 |
|
|
Time Warner Cable, Inc. |
340,100 |
46,298 |
|
|
|
223,254 |
||
|
Multiline Retail - 1.6% |
|||
|
Dillard's, Inc. Class A (d) |
425,500 |
48,337 |
|
|
Target Corp. |
1,213,300 |
89,311 |
|
|
|
137,648 |
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|
Specialty Retail - 1.9% |
|||
|
AutoZone, Inc. (a) |
182,500 |
108,945 |
|
|
Foot Locker, Inc. |
1,031,679 |
54,906 |
|
|
|
163,851 |
||
|
Textiles, Apparel & Luxury Goods - 1.9% |
|||
|
Fossil Group, Inc. (a) |
429,700 |
42,025 |
|
|
Japan Tobacco, Inc. |
2,946,200 |
80,245 |
|
|
VF Corp. |
583,100 |
40,450 |
|
|
|
162,720 |
||
|
TOTAL CONSUMER DISCRETIONARY |
991,734 |
||
|
CONSUMER STAPLES - 11.7% |
|||
|
Beverages - 3.5% |
|||
|
C&C Group PLC |
1,180,900 |
4,630 |
|
|
Dr. Pepper Snapple Group, Inc. |
506,208 |
39,115 |
|
|
PepsiCo, Inc. |
1,173,400 |
110,041 |
|
|
The Coca-Cola Co. |
3,375,638 |
138,975 |
|
|
|
292,761 |
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|
Food & Staples Retailing - 3.7% |
|||
|
CVS Health Corp. |
1,216,800 |
119,441 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER STAPLES - continued |
|||
|
Food & Staples Retailing - continued |
|||
|
Kroger Co. |
890,909 |
$ 61,517 |
|
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
489,201 |
19,362 |
|
|
Tesco PLC |
4,330,500 |
14,644 |
|
|
Tsuruha Holdings, Inc. |
225,700 |
15,166 |
|
|
Walgreens Boots Alliance, Inc. |
1,097,936 |
80,973 |
|
|
|
311,103 |
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Food Products - 2.1% |
|||
|
Archer Daniels Midland Co. |
908,560 |
42,366 |
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|
Bunge Ltd. |
478,580 |
42,847 |
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Greencore Group PLC |
5,875,378 |
27,274 |
|
|
Hilton Food Group PLC |
1,930,470 |
11,427 |
|
|
Kellogg Co. |
769,200 |
50,444 |
|
|
|
174,358 |
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|
Household Products - 1.9% |
|||
|
Procter & Gamble Co. |
1,941,800 |
163,674 |
|
|
Tobacco - 0.5% |
|||
|
British American Tobacco PLC (United Kingdom) |
826,603 |
46,634 |
|
|
TOTAL CONSUMER STAPLES |
988,530 |
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|
ENERGY - 6.3% |
|||
|
Energy Equipment & Services - 0.1% |
|||
|
Aspen Aerogels, Inc. |
754,879 |
5,782 |
|
|
Oil, Gas & Consumable Fuels - 6.2% |
|||
|
Chevron Corp. |
1,644,600 |
168,621 |
|
|
Emerald Oil, Inc. warrants 2/4/16 (a) |
171,198 |
0 |
|
|
EQT Midstream Partners LP |
248,000 |
21,043 |
|
|
Exxon Mobil Corp. |
1,825,997 |
159,629 |
|
|
Kinder Morgan Holding Co. LLC |
1,322,700 |
54,297 |
|
|
MPLX LP |
316,822 |
25,200 |
|
|
Northern Oil & Gas, Inc. (a) |
1,037,290 |
6,514 |
|
|
Phillips 66 Partners LP |
320,336 |
23,199 |
|
|
PrairieSky Royalty Ltd. (d) |
971,100 |
20,917 |
|
|
Suncor Energy, Inc. |
1,496,800 |
44,644 |
|
|
|
524,064 |
||
|
TOTAL ENERGY |
529,846 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - 14.0% |
|||
|
Banks - 9.8% |
|||
|
Bank of America Corp. |
8,810,817 |
$ 133,484 |
|
|
Citigroup, Inc. |
2,279,961 |
107,044 |
|
|
JPMorgan Chase & Co. |
2,871,435 |
156,149 |
|
|
Nordea Bank AB |
4,045,990 |
51,491 |
|
|
PacWest Bancorp |
1,161,300 |
49,651 |
|
|
SunTrust Banks, Inc. |
1,316,300 |
50,572 |
|
|
U.S. Bancorp |
2,329,169 |
97,615 |
|
|
Wells Fargo & Co. |
3,478,693 |
180,614 |
|
|
|
826,620 |
||
|
Capital Markets - 1.5% |
|||
|
Ameriprise Financial, Inc. |
424,300 |
53,012 |
|
|
Carlyle Group LP |
795,406 |
20,919 |
|
|
The Blackstone Group LP |
1,344,784 |
50,214 |
|
|
|
124,145 |
||
|
Consumer Finance - 0.9% |
|||
|
Capital One Financial Corp. |
1,053,567 |
77,132 |
|
|
Imperial Holdings, Inc. warrants 4/11/19 (a) |
48,012 |
11 |
|
|
|
77,143 |
||
|
Diversified Financial Services - 0.9% |
|||
|
McGraw Hill Financial, Inc. |
864,527 |
77,323 |
|
|
Insurance - 0.9% |
|||
|
MetLife, Inc. |
884,100 |
41,111 |
|
|
The Chubb Corp. |
322,800 |
31,602 |
|
|
|
72,713 |
||
|
TOTAL FINANCIALS |
1,177,944 |
||
|
HEALTH CARE - 17.0% |
|||
|
Biotechnology - 3.1% |
|||
|
Amgen, Inc. |
1,051,710 |
160,133 |
|
|
Gilead Sciences, Inc. (a) |
987,141 |
103,482 |
|
|
|
263,615 |
||
|
Health Care Equipment & Supplies - 2.6% |
|||
|
Medtronic PLC |
2,344,800 |
167,419 |
|
|
The Cooper Companies, Inc. |
325,084 |
51,249 |
|
|
|
218,668 |
||
|
Health Care Providers & Services - 2.7% |
|||
|
Cardinal Health, Inc. |
989,703 |
82,333 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
HEALTH CARE - continued |
|||
|
Health Care Providers & Services - continued |
|||
|
Express Scripts Holding Co. (a) |
623,400 |
$ 50,315 |
|
|
McKesson Corp. |
429,258 |
91,282 |
|
|
|
223,930 |
||
|
Health Care Technology - 0.1% |
|||
|
CompuGroup Medical AG |
466,312 |
12,072 |
|
|
Life Sciences Tools & Services - 0.8% |
|||
|
Agilent Technologies, Inc. |
685,100 |
25,876 |
|
|
Lonza Group AG |
361,151 |
42,951 |
|
|
|
68,827 |
||
|
Pharmaceuticals - 7.7% |
|||
|
AbbVie, Inc. |
958,151 |
57,824 |
|
|
Astellas Pharma, Inc. |
2,833,000 |
43,757 |
|
|
GlaxoSmithKline PLC |
2,861,200 |
63,000 |
|
|
Johnson & Johnson |
2,024,143 |
202,698 |
|
|
Meda AB (A Shares) |
586,410 |
8,271 |
|
|
Sanofi SA sponsored ADR |
1,295,800 |
59,723 |
|
|
Shire PLC |
1,531,600 |
111,788 |
|
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
1,706,900 |
97,054 |
|
|
|
644,115 |
||
|
TOTAL HEALTH CARE |
1,431,227 |
||
|
INDUSTRIALS - 7.7% |
|||
|
Aerospace & Defense - 1.3% |
|||
|
United Technologies Corp. |
952,266 |
109,301 |
|
|
Air Freight & Logistics - 1.2% |
|||
|
FedEx Corp. |
611,552 |
103,420 |
|
|
Airlines - 0.2% |
|||
|
Copa Holdings SA Class A |
141,200 |
15,180 |
|
|
Construction & Engineering - 0.0% |
|||
|
Astaldi SpA |
221,900 |
1,412 |
|
|
Industrial Conglomerates - 3.4% |
|||
|
Danaher Corp. |
986,292 |
81,251 |
|
|
General Electric Co. |
6,539,800 |
156,236 |
|
|
Roper Industries, Inc. |
325,144 |
50,183 |
|
|
|
287,670 |
||
|
Machinery - 1.1% |
|||
|
Deere & Co. |
652,500 |
55,586 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
INDUSTRIALS - continued |
|||
|
Machinery - continued |
|||
|
Manitowoc Co., Inc. |
646,375 |
$ 12,087 |
|
|
Valmont Industries, Inc. |
168,700 |
20,264 |
|
|
|
87,937 |
||
|
Professional Services - 0.5% |
|||
|
Dun & Bradstreet Corp. |
371,502 |
42,764 |
|
|
TOTAL INDUSTRIALS |
647,684 |
||
|
INFORMATION TECHNOLOGY - 21.5% |
|||
|
Communications Equipment - 3.2% |
|||
|
Cisco Systems, Inc. |
5,055,386 |
133,285 |
|
|
QUALCOMM, Inc. |
2,119,483 |
132,383 |
|
|
|
265,668 |
||
|
Electronic Equipment & Components - 0.9% |
|||
|
TE Connectivity Ltd. |
1,178,294 |
78,227 |
|
|
Internet Software & Services - 2.3% |
|||
|
Google, Inc. Class C (a) |
362,212 |
193,610 |
|
|
IT Services - 2.7% |
|||
|
ASAC II LP (a)(e) |
2,514,134 |
34,307 |
|
|
Fidelity National Information Services, Inc. |
1,168,550 |
72,953 |
|
|
IBM Corp. |
717,300 |
109,969 |
|
|
Leidos Holdings, Inc. |
341,400 |
14,134 |
|
|
|
231,363 |
||
|
Software - 5.7% |
|||
|
Activision Blizzard, Inc. |
1,709,717 |
35,725 |
|
|
Microsoft Corp. |
5,347,816 |
216,052 |
|
|
Mobileye NV (a) |
1,383,745 |
54,506 |
|
|
Oracle Corp. |
4,053,060 |
169,783 |
|
|
|
476,066 |
||
|
Technology Hardware, Storage & Peripherals - 6.7% |
|||
|
Apple, Inc. |
3,196,118 |
374,457 |
|
|
EMC Corp. |
3,078,400 |
79,823 |
|
|
Hewlett-Packard Co. |
1,461,100 |
52,790 |
|
|
Samsung Electronics Co. Ltd. |
46,782 |
57,612 |
|
|
|
564,682 |
||
|
TOTAL INFORMATION TECHNOLOGY |
1,809,616 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
MATERIALS - 1.7% |
|||
|
Chemicals - 1.7% |
|||
|
E.I. du Pont de Nemours & Co. |
1,056,300 |
$ 75,219 |
|
|
Potash Corp. of Saskatchewan, Inc. |
1,849,100 |
67,317 |
|
|
|
142,536 |
||
|
TELECOMMUNICATION SERVICES - 2.7% |
|||
|
Diversified Telecommunication Services - 1.6% |
|||
|
Verizon Communications, Inc. |
2,907,480 |
132,901 |
|
|
Wireless Telecommunication Services - 1.1% |
|||
|
Vodafone Group PLC sponsored ADR |
2,608,500 |
91,637 |
|
|
TOTAL TELECOMMUNICATION SERVICES |
224,538 |
||
|
UTILITIES - 2.8% |
|||
|
Electric Utilities - 1.1% |
|||
|
Edison International |
541,700 |
36,917 |
|
|
NRG Yield, Inc. Class A |
338,600 |
17,905 |
|
|
Xcel Energy, Inc. |
983,752 |
36,920 |
|
|
|
91,742 |
||
|
Multi-Utilities - 1.7% |
|||
|
CMS Energy Corp. |
1,383,445 |
52,197 |
|
|
NiSource, Inc. |
2,182,600 |
94,419 |
|
|
|
146,616 |
||
|
TOTAL UTILITIES |
238,358 |
||
|
TOTAL COMMON STOCKS (Cost $6,836,171) |
|
||
|
Convertible Bonds - 0.1% |
||||
|
|
Principal Amount (000s) |
|
||
|
ENERGY - 0.1% |
||||
|
Oil, Gas & Consumable Fuels - 0.1% |
||||
|
Amyris, Inc. 3% 2/27/17 (Cost $7,356) |
|
$ 7,356 |
|
|
|
Money Market Funds - 3.4% |
|||
|
Shares |
Value (000s) |
||
|
Fidelity Cash Central Fund, 0.13% (b) |
246,344,940 |
$ 246,345 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
44,008,466 |
44,008 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $290,353) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $7,133,880) |
8,478,661 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.7)% |
(58,460) |
||
|
NET ASSETS - 100% |
$ 8,420,201 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $34,307,000 or 0.4% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost (000s) |
|
ASAC II LP |
10/10/13 |
$ 25,141 |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 201 |
|
Fidelity Securities Lending Cash Central Fund |
224 |
|
Total |
$ 425 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
|
TAG Oil Ltd. |
$ 7,147 |
$ - |
$ 4,852 |
$ - |
$ - |
|
TAG Oil Ltd. (144A) |
337 |
- |
195 |
- |
- |
|
Total |
$ 7,484 |
$ - |
$ 5,047 |
$ - |
$ - |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 991,734 |
$ 911,489 |
$ 80,245 |
$ - |
|
Consumer Staples |
988,530 |
912,086 |
76,444 |
- |
|
Energy |
529,846 |
529,846 |
- |
- |
|
Financials |
1,177,944 |
1,177,933 |
11 |
- |
|
Health Care |
1,431,227 |
1,212,682 |
218,545 |
- |
|
Industrials |
647,684 |
647,684 |
- |
- |
|
Information Technology |
1,809,616 |
1,717,697 |
57,612 |
34,307 |
|
Materials |
142,536 |
142,536 |
- |
- |
|
Telecommunication Services |
224,538 |
224,538 |
- |
- |
|
Utilities |
238,358 |
238,358 |
- |
- |
|
Corporate Bonds |
6,295 |
- |
6,295 |
- |
|
Money Market Funds |
290,353 |
290,353 |
- |
- |
|
Total Investments in Securities: |
$ 8,478,661 |
$ 8,005,202 |
$ 439,152 |
$ 34,307 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
83.0% |
|
United Kingdom |
2.8% |
|
Ireland |
2.4% |
|
Canada |
1.9% |
|
Japan |
1.6% |
|
Switzerland |
1.4% |
|
Israel |
1.4% |
|
Bailiwick of Jersey |
1.3% |
|
Others (Individually Less Than 1%) |
4.2% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $42,769) - See accompanying schedule: Unaffiliated issuers (cost $6,843,527) |
$ 8,188,308 |
|
|
Fidelity Central Funds (cost $290,353) |
290,353 |
|
|
Total Investments (cost $7,133,880) |
|
$ 8,478,661 |
|
Foreign currency held at value (cost $9) |
|
3 |
|
Receivable for investments sold |
|
11,474 |
|
Receivable for fund shares sold |
|
3,884 |
|
Dividends receivable |
|
10,199 |
|
Interest receivable |
|
94 |
|
Distributions receivable from Fidelity Central Funds |
|
85 |
|
Prepaid expenses |
|
14 |
|
Other receivables |
|
485 |
|
Total assets |
|
8,504,899 |
|
|
|
|
|
Liabilities |
|
|
|
Payable to custodian bank |
$ 8,756 |
|
|
Payable for investments purchased |
22,119 |
|
|
Payable for fund shares redeemed |
4,947 |
|
|
Accrued management fee |
3,267 |
|
|
Other affiliated payables |
1,089 |
|
|
Other payables and accrued expenses |
512 |
|
|
Collateral on securities loaned, at value |
44,008 |
|
|
Total liabilities |
|
84,698 |
|
|
|
|
|
Net Assets |
|
$ 8,420,201 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 6,836,177 |
|
Undistributed net investment income |
|
7,804 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
231,465 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,344,755 |
|
Net Assets |
|
$ 8,420,201 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Dividend Growth: |
|
$ 32.41 |
|
|
|
|
|
Class K: |
|
$ 32.38 |
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, 2015 (Unaudited) |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 85,221 |
|
Interest |
|
110 |
|
Income from Fidelity Central Funds |
|
425 |
|
Total income |
|
85,756 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 23,740 |
|
|
Performance adjustment |
(2,395) |
|
|
Transfer agent fees |
5,914 |
|
|
Accounting and security lending fees |
622 |
|
|
Custodian fees and expenses |
86 |
|
|
Independent trustees' compensation |
19 |
|
|
Registration fees |
33 |
|
|
Audit |
45 |
|
|
Legal |
21 |
|
|
Miscellaneous |
26 |
|
|
Total expenses before reductions |
28,111 |
|
|
Expense reductions |
(113) |
27,998 |
|
Net investment income (loss) |
|
57,758 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
451,283 |
|
|
Other affiliated issuers |
(12,370) |
|
|
Foreign currency transactions |
(193) |
|
|
Futures contracts |
61 |
|
|
Total net realized gain (loss) |
|
438,781 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
(236,275) |
|
|
Assets and liabilities in foreign currencies |
(1) |
|
|
Futures contracts |
(38) |
|
|
Total change in net unrealized appreciation (depreciation) |
|
(236,314) |
|
Net gain (loss) |
|
202,467 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 260,225 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
Amounts in thousands |
Six months ended January 31, 2015 (Unaudited) |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 57,758 |
$ 135,648 |
|
Net realized gain (loss) |
438,781 |
1,400,831 |
|
Change in net unrealized appreciation (depreciation) |
(236,314) |
(186,688) |
|
Net increase (decrease) in net assets resulting |
260,225 |
1,349,791 |
|
Distributions to shareholders from net investment income |
(124,133) |
(90,956) |
|
Distributions to shareholders from net realized gain |
(1,267,765) |
(759,327) |
|
Total distributions |
(1,391,898) |
(850,283) |
|
Share transactions - net increase (decrease) |
1,014,286 |
(233,820) |
|
Total increase (decrease) in net assets |
(117,387) |
265,688 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
8,537,588 |
8,271,900 |
|
End of period (including undistributed net investment income of $7,804 and undistributed net investment income of $74,179, respectively) |
$ 8,420,201 |
$ 8,537,588 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.27 |
$ 35.33 |
$ 28.61 |
$ 28.96 |
$ 23.84 |
$ 20.25 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.22 |
.56 |
.40 |
.20 |
.12 |
.13G |
|
Net realized and unrealized gain (loss) |
.93 |
4.98 |
7.12 |
(.41) |
5.23 |
3.63 |
|
Total from investment operations |
1.15 |
5.54 |
7.52 |
(.21) |
5.35 |
3.76 |
|
Distributions from net investment income |
(.51) |
(.37) |
(.30) |
(.12) |
(.15) |
(.12) |
|
Distributions from net realized gain |
(5.49) |
(3.23) |
(.50) |
(.02) |
(.08) |
(.05) |
|
Total distributions |
(6.01) J |
(3.60) |
(.80) |
(.14) |
(.23) |
(.17) |
|
Net asset value, end of period |
$ 32.41 |
$ 37.27 |
$ 35.33 |
$ 28.61 |
$ 28.96 |
$ 23.84 |
|
Total ReturnB, C |
3.02% |
17.30% |
26.83% |
(.67)% |
22.57% |
18.59% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.56% |
.63% |
.91% |
.93% |
.93% |
|
Expenses net of fee waivers, if any |
.68%A |
.56% |
.63% |
.91% |
.93% |
.93% |
|
Expenses net of all reductions |
.68%A |
.56% |
.62% |
.91% |
.93% |
.92% |
|
Net investment income (loss) |
1.31%A |
1.58% |
1.26% |
.75% |
.44% |
.56%G |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 6,370 |
$ 6,481 |
$ 6,633 |
$ 5,905 |
$ 9,309 |
$ 7,730 |
|
Portfolio turnover rateF |
80% A |
99% |
69% |
63%I |
67% |
85% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IPortfolio turnover rate excludes securities received or delivered in-kind. JTotal distributions of $6.01 per share is comprised of distributions from net investment income of $.512 and distributions from net realized gain of $5.493 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.27 |
$ 35.34 |
$ 28.62 |
$ 28.98 |
$ 23.86 |
$ 20.26 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.24 |
.60 |
.45 |
.25 |
.17 |
.18G |
|
Net realized and unrealized gain (loss) |
.92 |
4.97 |
7.12 |
(.43) |
5.22 |
3.63 |
|
Total from investment operations |
1.16 |
5.57 |
7.57 |
(.18) |
5.39 |
3.81 |
|
Distributions from net investment income |
(.56) |
(.42) |
(.35) |
(.17) |
(.20) |
(.16) |
|
Distributions from net realized gain |
(5.49) |
(3.23) |
(.50) |
(.02) |
(.08) |
(.05) |
|
Total distributions |
(6.05) |
(3.64)L |
(.85) |
(.18)K |
(.27)J |
(.21) |
|
Net asset value, end of period |
$ 32.38 |
$ 37.27 |
$ 35.34 |
$ 28.62 |
$ 28.98 |
$ 23.86 |
|
Total ReturnB, C |
3.07% |
17.44% |
27.04% |
(.52)% |
22.79% |
18.86% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.56%A |
.44% |
.48% |
.75% |
.78% |
.72% |
|
Expenses net of fee waivers, if any |
.56%A |
.43% |
.48% |
.75% |
.78% |
.72% |
|
Expenses net of all reductions |
.56%A |
.43% |
.47% |
.75% |
.77% |
.71% |
|
Net investment income (loss) |
1.43%A |
1.70% |
1.41% |
.91% |
.60% |
.76%G |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 2,050 |
$ 2,057 |
$ 1,639 |
$ 1,221 |
$ 634 |
$ 355 |
|
Portfolio turnover rateF |
80% A |
99% |
69% |
63%I |
67% |
85% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IPortfolio turnover rate excludes securities received or delivered in-kind. JTotal distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 per share. KTotal distributions of $.18 per share is comprised of distributions from net investment income of $.169 and distributions from net realized gain of $.015 per share. LTotal distributions of $3.64 per share is comprised of distributions from net investment income of $.419 and distributions from net realized gain of $3.225 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
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 Fund offers Dividend Growth and Class K 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, original issue discount, contingent interest, partnerships, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,540,641 |
|
Gross unrealized depreciation |
(203,167) |
|
Net unrealized appreciation (depreciation) on securities |
$ 1,337,474 |
|
|
|
|
Tax cost |
$ 7,141,187 |
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 percentages)
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
|
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $61 and a change in net unrealized appreciation (depreciation) of $(38) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,328,923 and $3,623,392, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Dividend Growth as compared to its benchmark index, the S&P 500® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .50% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Dividend Growth |
$ 5,421 |
.17 |
|
Class K |
493 |
.05 |
|
|
$ 5,914 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $47 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $224. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $99 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Dividend Growth expenses during the period in the amount of $14.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Dividend Growth |
$ 92,079 |
$ 70,700 |
|
Class K |
32,054 |
20,256 |
|
Total |
$ 124,133 |
$ 90,956 |
|
From net realized gain |
|
|
|
Dividend Growth |
$ 962,403 |
$ 606,886 |
|
Class K |
305,362 |
152,441 |
|
Total |
$ 1,267,765 |
$ 759,327 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended January 31, 2015 |
Year ended |
Six months ended January 31, 2015 |
Year ended |
|
Dividend Growth |
|
|
|
|
|
Shares sold |
5,902 |
11,713 |
$ 200,689 |
$ 413,381 |
|
Reinvestment of distributions |
30,296 |
19,201 |
1,009,451 |
630,027 |
|
Shares redeemed |
(13,522) |
(44,744) |
(462,351) |
(1,586,974) |
|
Net increase (decrease) |
22,676 |
(13,830) |
$ 747,789 |
$ (543,566) |
|
Class K |
|
|
|
|
|
Shares sold |
5,074 |
14,508 |
$ 173,520 |
$ 525,067 |
|
Reinvestment of distributions |
10,135 |
5,265 |
337,416 |
172,697 |
|
Shares redeemed |
(7,076) |
(10,980) |
(244,439) |
(388,018) |
|
Net increase (decrease) |
8,133 |
8,793 |
$ 266,497 |
$ 309,746 |
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
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®) 
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
DGF-USAN-0315 1.789283.112
Fidelity®
Dividend Growth
Fund -
Class K
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Dividend Growth |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,030.20 |
$ 3.48 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.78 |
$ 3.47 |
|
Class K |
.56% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,030.70 |
$ 2.87 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.38 |
$ 2.85 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Apple, Inc. |
4.4 |
4.0 |
|
Microsoft Corp. |
2.6 |
2.4 |
|
Johnson & Johnson |
2.4 |
2.3 |
|
Google, Inc. Class C |
2.3 |
1.2 |
|
Wells Fargo & Co. |
2.1 |
2.1 |
|
Oracle Corp. |
2.0 |
1.7 |
|
Chevron Corp. |
2.0 |
2.2 |
|
Medtronic PLC |
2.0 |
1.6 |
|
Procter & Gamble Co. |
1.9 |
0.0 |
|
Amgen, Inc. |
1.9 |
1.6 |
|
|
23.6 |
|
|
Top Five Market Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Information Technology |
21.5 |
19.6 |
|
Health Care |
17.0 |
14.0 |
|
Financials |
14.0 |
15.9 |
|
Consumer Discretionary |
11.8 |
11.9 |
|
Consumer Staples |
11.7 |
10.7 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
|
Stocks 97.2% |
|
|
Stocks and |
|
||
|
Convertible |
|
|
Convertible |
|
||
|
Other Investments 0.0% |
|
|
Other Investments 0.1% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
17.0% |
|
** Foreign investments |
14.0% |
|
||
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 97.2% |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER DISCRETIONARY - 11.8% |
|||
|
Diversified Consumer Services - 0.9% |
|||
|
H&R Block, Inc. |
2,100,520 |
$ 72,006 |
|
|
Hotels, Restaurants & Leisure - 2.8% |
|||
|
ARAMARK Holdings Corp. |
1,806,600 |
56,583 |
|
|
Darden Restaurants, Inc. |
611,900 |
37,558 |
|
|
McDonald's Corp. |
946,900 |
87,531 |
|
|
Wyndham Worldwide Corp. |
603,691 |
50,583 |
|
|
|
232,255 |
||
|
Media - 2.7% |
|||
|
Altice SA |
585,700 |
49,042 |
|
|
Comcast Corp. Class A |
1,781,296 |
94,667 |
|
|
Corus Entertainment, Inc. Class B (non-vtg.) (d) |
555,400 |
9,428 |
|
|
MDC Partners, Inc. Class A (sub. vtg.) |
996,608 |
23,819 |
|
|
Time Warner Cable, Inc. |
340,100 |
46,298 |
|
|
|
223,254 |
||
|
Multiline Retail - 1.6% |
|||
|
Dillard's, Inc. Class A (d) |
425,500 |
48,337 |
|
|
Target Corp. |
1,213,300 |
89,311 |
|
|
|
137,648 |
||
|
Specialty Retail - 1.9% |
|||
|
AutoZone, Inc. (a) |
182,500 |
108,945 |
|
|
Foot Locker, Inc. |
1,031,679 |
54,906 |
|
|
|
163,851 |
||
|
Textiles, Apparel & Luxury Goods - 1.9% |
|||
|
Fossil Group, Inc. (a) |
429,700 |
42,025 |
|
|
Japan Tobacco, Inc. |
2,946,200 |
80,245 |
|
|
VF Corp. |
583,100 |
40,450 |
|
|
|
162,720 |
||
|
TOTAL CONSUMER DISCRETIONARY |
991,734 |
||
|
CONSUMER STAPLES - 11.7% |
|||
|
Beverages - 3.5% |
|||
|
C&C Group PLC |
1,180,900 |
4,630 |
|
|
Dr. Pepper Snapple Group, Inc. |
506,208 |
39,115 |
|
|
PepsiCo, Inc. |
1,173,400 |
110,041 |
|
|
The Coca-Cola Co. |
3,375,638 |
138,975 |
|
|
|
292,761 |
||
|
Food & Staples Retailing - 3.7% |
|||
|
CVS Health Corp. |
1,216,800 |
119,441 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER STAPLES - continued |
|||
|
Food & Staples Retailing - continued |
|||
|
Kroger Co. |
890,909 |
$ 61,517 |
|
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
489,201 |
19,362 |
|
|
Tesco PLC |
4,330,500 |
14,644 |
|
|
Tsuruha Holdings, Inc. |
225,700 |
15,166 |
|
|
Walgreens Boots Alliance, Inc. |
1,097,936 |
80,973 |
|
|
|
311,103 |
||
|
Food Products - 2.1% |
|||
|
Archer Daniels Midland Co. |
908,560 |
42,366 |
|
|
Bunge Ltd. |
478,580 |
42,847 |
|
|
Greencore Group PLC |
5,875,378 |
27,274 |
|
|
Hilton Food Group PLC |
1,930,470 |
11,427 |
|
|
Kellogg Co. |
769,200 |
50,444 |
|
|
|
174,358 |
||
|
Household Products - 1.9% |
|||
|
Procter & Gamble Co. |
1,941,800 |
163,674 |
|
|
Tobacco - 0.5% |
|||
|
British American Tobacco PLC (United Kingdom) |
826,603 |
46,634 |
|
|
TOTAL CONSUMER STAPLES |
988,530 |
||
|
ENERGY - 6.3% |
|||
|
Energy Equipment & Services - 0.1% |
|||
|
Aspen Aerogels, Inc. |
754,879 |
5,782 |
|
|
Oil, Gas & Consumable Fuels - 6.2% |
|||
|
Chevron Corp. |
1,644,600 |
168,621 |
|
|
Emerald Oil, Inc. warrants 2/4/16 (a) |
171,198 |
0 |
|
|
EQT Midstream Partners LP |
248,000 |
21,043 |
|
|
Exxon Mobil Corp. |
1,825,997 |
159,629 |
|
|
Kinder Morgan Holding Co. LLC |
1,322,700 |
54,297 |
|
|
MPLX LP |
316,822 |
25,200 |
|
|
Northern Oil & Gas, Inc. (a) |
1,037,290 |
6,514 |
|
|
Phillips 66 Partners LP |
320,336 |
23,199 |
|
|
PrairieSky Royalty Ltd. (d) |
971,100 |
20,917 |
|
|
Suncor Energy, Inc. |
1,496,800 |
44,644 |
|
|
|
524,064 |
||
|
TOTAL ENERGY |
529,846 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - 14.0% |
|||
|
Banks - 9.8% |
|||
|
Bank of America Corp. |
8,810,817 |
$ 133,484 |
|
|
Citigroup, Inc. |
2,279,961 |
107,044 |
|
|
JPMorgan Chase & Co. |
2,871,435 |
156,149 |
|
|
Nordea Bank AB |
4,045,990 |
51,491 |
|
|
PacWest Bancorp |
1,161,300 |
49,651 |
|
|
SunTrust Banks, Inc. |
1,316,300 |
50,572 |
|
|
U.S. Bancorp |
2,329,169 |
97,615 |
|
|
Wells Fargo & Co. |
3,478,693 |
180,614 |
|
|
|
826,620 |
||
|
Capital Markets - 1.5% |
|||
|
Ameriprise Financial, Inc. |
424,300 |
53,012 |
|
|
Carlyle Group LP |
795,406 |
20,919 |
|
|
The Blackstone Group LP |
1,344,784 |
50,214 |
|
|
|
124,145 |
||
|
Consumer Finance - 0.9% |
|||
|
Capital One Financial Corp. |
1,053,567 |
77,132 |
|
|
Imperial Holdings, Inc. warrants 4/11/19 (a) |
48,012 |
11 |
|
|
|
77,143 |
||
|
Diversified Financial Services - 0.9% |
|||
|
McGraw Hill Financial, Inc. |
864,527 |
77,323 |
|
|
Insurance - 0.9% |
|||
|
MetLife, Inc. |
884,100 |
41,111 |
|
|
The Chubb Corp. |
322,800 |
31,602 |
|
|
|
72,713 |
||
|
TOTAL FINANCIALS |
1,177,944 |
||
|
HEALTH CARE - 17.0% |
|||
|
Biotechnology - 3.1% |
|||
|
Amgen, Inc. |
1,051,710 |
160,133 |
|
|
Gilead Sciences, Inc. (a) |
987,141 |
103,482 |
|
|
|
263,615 |
||
|
Health Care Equipment & Supplies - 2.6% |
|||
|
Medtronic PLC |
2,344,800 |
167,419 |
|
|
The Cooper Companies, Inc. |
325,084 |
51,249 |
|
|
|
218,668 |
||
|
Health Care Providers & Services - 2.7% |
|||
|
Cardinal Health, Inc. |
989,703 |
82,333 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
HEALTH CARE - continued |
|||
|
Health Care Providers & Services - continued |
|||
|
Express Scripts Holding Co. (a) |
623,400 |
$ 50,315 |
|
|
McKesson Corp. |
429,258 |
91,282 |
|
|
|
223,930 |
||
|
Health Care Technology - 0.1% |
|||
|
CompuGroup Medical AG |
466,312 |
12,072 |
|
|
Life Sciences Tools & Services - 0.8% |
|||
|
Agilent Technologies, Inc. |
685,100 |
25,876 |
|
|
Lonza Group AG |
361,151 |
42,951 |
|
|
|
68,827 |
||
|
Pharmaceuticals - 7.7% |
|||
|
AbbVie, Inc. |
958,151 |
57,824 |
|
|
Astellas Pharma, Inc. |
2,833,000 |
43,757 |
|
|
GlaxoSmithKline PLC |
2,861,200 |
63,000 |
|
|
Johnson & Johnson |
2,024,143 |
202,698 |
|
|
Meda AB (A Shares) |
586,410 |
8,271 |
|
|
Sanofi SA sponsored ADR |
1,295,800 |
59,723 |
|
|
Shire PLC |
1,531,600 |
111,788 |
|
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
1,706,900 |
97,054 |
|
|
|
644,115 |
||
|
TOTAL HEALTH CARE |
1,431,227 |
||
|
INDUSTRIALS - 7.7% |
|||
|
Aerospace & Defense - 1.3% |
|||
|
United Technologies Corp. |
952,266 |
109,301 |
|
|
Air Freight & Logistics - 1.2% |
|||
|
FedEx Corp. |
611,552 |
103,420 |
|
|
Airlines - 0.2% |
|||
|
Copa Holdings SA Class A |
141,200 |
15,180 |
|
|
Construction & Engineering - 0.0% |
|||
|
Astaldi SpA |
221,900 |
1,412 |
|
|
Industrial Conglomerates - 3.4% |
|||
|
Danaher Corp. |
986,292 |
81,251 |
|
|
General Electric Co. |
6,539,800 |
156,236 |
|
|
Roper Industries, Inc. |
325,144 |
50,183 |
|
|
|
287,670 |
||
|
Machinery - 1.1% |
|||
|
Deere & Co. |
652,500 |
55,586 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
INDUSTRIALS - continued |
|||
|
Machinery - continued |
|||
|
Manitowoc Co., Inc. |
646,375 |
$ 12,087 |
|
|
Valmont Industries, Inc. |
168,700 |
20,264 |
|
|
|
87,937 |
||
|
Professional Services - 0.5% |
|||
|
Dun & Bradstreet Corp. |
371,502 |
42,764 |
|
|
TOTAL INDUSTRIALS |
647,684 |
||
|
INFORMATION TECHNOLOGY - 21.5% |
|||
|
Communications Equipment - 3.2% |
|||
|
Cisco Systems, Inc. |
5,055,386 |
133,285 |
|
|
QUALCOMM, Inc. |
2,119,483 |
132,383 |
|
|
|
265,668 |
||
|
Electronic Equipment & Components - 0.9% |
|||
|
TE Connectivity Ltd. |
1,178,294 |
78,227 |
|
|
Internet Software & Services - 2.3% |
|||
|
Google, Inc. Class C (a) |
362,212 |
193,610 |
|
|
IT Services - 2.7% |
|||
|
ASAC II LP (a)(e) |
2,514,134 |
34,307 |
|
|
Fidelity National Information Services, Inc. |
1,168,550 |
72,953 |
|
|
IBM Corp. |
717,300 |
109,969 |
|
|
Leidos Holdings, Inc. |
341,400 |
14,134 |
|
|
|
231,363 |
||
|
Software - 5.7% |
|||
|
Activision Blizzard, Inc. |
1,709,717 |
35,725 |
|
|
Microsoft Corp. |
5,347,816 |
216,052 |
|
|
Mobileye NV (a) |
1,383,745 |
54,506 |
|
|
Oracle Corp. |
4,053,060 |
169,783 |
|
|
|
476,066 |
||
|
Technology Hardware, Storage & Peripherals - 6.7% |
|||
|
Apple, Inc. |
3,196,118 |
374,457 |
|
|
EMC Corp. |
3,078,400 |
79,823 |
|
|
Hewlett-Packard Co. |
1,461,100 |
52,790 |
|
|
Samsung Electronics Co. Ltd. |
46,782 |
57,612 |
|
|
|
564,682 |
||
|
TOTAL INFORMATION TECHNOLOGY |
1,809,616 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
MATERIALS - 1.7% |
|||
|
Chemicals - 1.7% |
|||
|
E.I. du Pont de Nemours & Co. |
1,056,300 |
$ 75,219 |
|
|
Potash Corp. of Saskatchewan, Inc. |
1,849,100 |
67,317 |
|
|
|
142,536 |
||
|
TELECOMMUNICATION SERVICES - 2.7% |
|||
|
Diversified Telecommunication Services - 1.6% |
|||
|
Verizon Communications, Inc. |
2,907,480 |
132,901 |
|
|
Wireless Telecommunication Services - 1.1% |
|||
|
Vodafone Group PLC sponsored ADR |
2,608,500 |
91,637 |
|
|
TOTAL TELECOMMUNICATION SERVICES |
224,538 |
||
|
UTILITIES - 2.8% |
|||
|
Electric Utilities - 1.1% |
|||
|
Edison International |
541,700 |
36,917 |
|
|
NRG Yield, Inc. Class A |
338,600 |
17,905 |
|
|
Xcel Energy, Inc. |
983,752 |
36,920 |
|
|
|
91,742 |
||
|
Multi-Utilities - 1.7% |
|||
|
CMS Energy Corp. |
1,383,445 |
52,197 |
|
|
NiSource, Inc. |
2,182,600 |
94,419 |
|
|
|
146,616 |
||
|
TOTAL UTILITIES |
238,358 |
||
|
TOTAL COMMON STOCKS (Cost $6,836,171) |
|
||
|
Convertible Bonds - 0.1% |
||||
|
|
Principal Amount (000s) |
|
||
|
ENERGY - 0.1% |
||||
|
Oil, Gas & Consumable Fuels - 0.1% |
||||
|
Amyris, Inc. 3% 2/27/17 (Cost $7,356) |
|
$ 7,356 |
|
|
|
Money Market Funds - 3.4% |
|||
|
Shares |
Value (000s) |
||
|
Fidelity Cash Central Fund, 0.13% (b) |
246,344,940 |
$ 246,345 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
44,008,466 |
44,008 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $290,353) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $7,133,880) |
8,478,661 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.7)% |
(58,460) |
||
|
NET ASSETS - 100% |
$ 8,420,201 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $34,307,000 or 0.4% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost (000s) |
|
ASAC II LP |
10/10/13 |
$ 25,141 |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 201 |
|
Fidelity Securities Lending Cash Central Fund |
224 |
|
Total |
$ 425 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
|
TAG Oil Ltd. |
$ 7,147 |
$ - |
$ 4,852 |
$ - |
$ - |
|
TAG Oil Ltd. (144A) |
337 |
- |
195 |
- |
- |
|
Total |
$ 7,484 |
$ - |
$ 5,047 |
$ - |
$ - |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 991,734 |
$ 911,489 |
$ 80,245 |
$ - |
|
Consumer Staples |
988,530 |
912,086 |
76,444 |
- |
|
Energy |
529,846 |
529,846 |
- |
- |
|
Financials |
1,177,944 |
1,177,933 |
11 |
- |
|
Health Care |
1,431,227 |
1,212,682 |
218,545 |
- |
|
Industrials |
647,684 |
647,684 |
- |
- |
|
Information Technology |
1,809,616 |
1,717,697 |
57,612 |
34,307 |
|
Materials |
142,536 |
142,536 |
- |
- |
|
Telecommunication Services |
224,538 |
224,538 |
- |
- |
|
Utilities |
238,358 |
238,358 |
- |
- |
|
Corporate Bonds |
6,295 |
- |
6,295 |
- |
|
Money Market Funds |
290,353 |
290,353 |
- |
- |
|
Total Investments in Securities: |
$ 8,478,661 |
$ 8,005,202 |
$ 439,152 |
$ 34,307 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
83.0% |
|
United Kingdom |
2.8% |
|
Ireland |
2.4% |
|
Canada |
1.9% |
|
Japan |
1.6% |
|
Switzerland |
1.4% |
|
Israel |
1.4% |
|
Bailiwick of Jersey |
1.3% |
|
Others (Individually Less Than 1%) |
4.2% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $42,769) - See accompanying schedule: Unaffiliated issuers (cost $6,843,527) |
$ 8,188,308 |
|
|
Fidelity Central Funds (cost $290,353) |
290,353 |
|
|
Total Investments (cost $7,133,880) |
|
$ 8,478,661 |
|
Foreign currency held at value (cost $9) |
|
3 |
|
Receivable for investments sold |
|
11,474 |
|
Receivable for fund shares sold |
|
3,884 |
|
Dividends receivable |
|
10,199 |
|
Interest receivable |
|
94 |
|
Distributions receivable from Fidelity Central Funds |
|
85 |
|
Prepaid expenses |
|
14 |
|
Other receivables |
|
485 |
|
Total assets |
|
8,504,899 |
|
|
|
|
|
Liabilities |
|
|
|
Payable to custodian bank |
$ 8,756 |
|
|
Payable for investments purchased |
22,119 |
|
|
Payable for fund shares redeemed |
4,947 |
|
|
Accrued management fee |
3,267 |
|
|
Other affiliated payables |
1,089 |
|
|
Other payables and accrued expenses |
512 |
|
|
Collateral on securities loaned, at value |
44,008 |
|
|
Total liabilities |
|
84,698 |
|
|
|
|
|
Net Assets |
|
$ 8,420,201 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 6,836,177 |
|
Undistributed net investment income |
|
7,804 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
231,465 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,344,755 |
|
Net Assets |
|
$ 8,420,201 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Dividend Growth: |
|
$ 32.41 |
|
|
|
|
|
Class K: |
|
$ 32.38 |
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, 2015 (Unaudited) |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 85,221 |
|
Interest |
|
110 |
|
Income from Fidelity Central Funds |
|
425 |
|
Total income |
|
85,756 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 23,740 |
|
|
Performance adjustment |
(2,395) |
|
|
Transfer agent fees |
5,914 |
|
|
Accounting and security lending fees |
622 |
|
|
Custodian fees and expenses |
86 |
|
|
Independent trustees' compensation |
19 |
|
|
Registration fees |
33 |
|
|
Audit |
45 |
|
|
Legal |
21 |
|
|
Miscellaneous |
26 |
|
|
Total expenses before reductions |
28,111 |
|
|
Expense reductions |
(113) |
27,998 |
|
Net investment income (loss) |
|
57,758 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
451,283 |
|
|
Other affiliated issuers |
(12,370) |
|
|
Foreign currency transactions |
(193) |
|
|
Futures contracts |
61 |
|
|
Total net realized gain (loss) |
|
438,781 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
(236,275) |
|
|
Assets and liabilities in foreign currencies |
(1) |
|
|
Futures contracts |
(38) |
|
|
Total change in net unrealized appreciation (depreciation) |
|
(236,314) |
|
Net gain (loss) |
|
202,467 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 260,225 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
Amounts in thousands |
Six months ended January 31, 2015 (Unaudited) |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 57,758 |
$ 135,648 |
|
Net realized gain (loss) |
438,781 |
1,400,831 |
|
Change in net unrealized appreciation (depreciation) |
(236,314) |
(186,688) |
|
Net increase (decrease) in net assets resulting |
260,225 |
1,349,791 |
|
Distributions to shareholders from net investment income |
(124,133) |
(90,956) |
|
Distributions to shareholders from net realized gain |
(1,267,765) |
(759,327) |
|
Total distributions |
(1,391,898) |
(850,283) |
|
Share transactions - net increase (decrease) |
1,014,286 |
(233,820) |
|
Total increase (decrease) in net assets |
(117,387) |
265,688 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
8,537,588 |
8,271,900 |
|
End of period (including undistributed net investment income of $7,804 and undistributed net investment income of $74,179, respectively) |
$ 8,420,201 |
$ 8,537,588 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Dividend Growth
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.27 |
$ 35.33 |
$ 28.61 |
$ 28.96 |
$ 23.84 |
$ 20.25 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.22 |
.56 |
.40 |
.20 |
.12 |
.13G |
|
Net realized and unrealized gain (loss) |
.93 |
4.98 |
7.12 |
(.41) |
5.23 |
3.63 |
|
Total from investment operations |
1.15 |
5.54 |
7.52 |
(.21) |
5.35 |
3.76 |
|
Distributions from net investment income |
(.51) |
(.37) |
(.30) |
(.12) |
(.15) |
(.12) |
|
Distributions from net realized gain |
(5.49) |
(3.23) |
(.50) |
(.02) |
(.08) |
(.05) |
|
Total distributions |
(6.01) J |
(3.60) |
(.80) |
(.14) |
(.23) |
(.17) |
|
Net asset value, end of period |
$ 32.41 |
$ 37.27 |
$ 35.33 |
$ 28.61 |
$ 28.96 |
$ 23.84 |
|
Total ReturnB, C |
3.02% |
17.30% |
26.83% |
(.67)% |
22.57% |
18.59% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.56% |
.63% |
.91% |
.93% |
.93% |
|
Expenses net of fee waivers, if any |
.68%A |
.56% |
.63% |
.91% |
.93% |
.93% |
|
Expenses net of all reductions |
.68%A |
.56% |
.62% |
.91% |
.93% |
.92% |
|
Net investment income (loss) |
1.31%A |
1.58% |
1.26% |
.75% |
.44% |
.56%G |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 6,370 |
$ 6,481 |
$ 6,633 |
$ 5,905 |
$ 9,309 |
$ 7,730 |
|
Portfolio turnover rateF |
80% A |
99% |
69% |
63%I |
67% |
85% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IPortfolio turnover rate excludes securities received or delivered in-kind. JTotal distributions of $6.01 per share is comprised of distributions from net investment income of $.512 and distributions from net realized gain of $5.493 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.27 |
$ 35.34 |
$ 28.62 |
$ 28.98 |
$ 23.86 |
$ 20.26 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.24 |
.60 |
.45 |
.25 |
.17 |
.18G |
|
Net realized and unrealized gain (loss) |
.92 |
4.97 |
7.12 |
(.43) |
5.22 |
3.63 |
|
Total from investment operations |
1.16 |
5.57 |
7.57 |
(.18) |
5.39 |
3.81 |
|
Distributions from net investment income |
(.56) |
(.42) |
(.35) |
(.17) |
(.20) |
(.16) |
|
Distributions from net realized gain |
(5.49) |
(3.23) |
(.50) |
(.02) |
(.08) |
(.05) |
|
Total distributions |
(6.05) |
(3.64)L |
(.85) |
(.18)K |
(.27)J |
(.21) |
|
Net asset value, end of period |
$ 32.38 |
$ 37.27 |
$ 35.34 |
$ 28.62 |
$ 28.98 |
$ 23.86 |
|
Total ReturnB, C |
3.07% |
17.44% |
27.04% |
(.52)% |
22.79% |
18.86% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.56%A |
.44% |
.48% |
.75% |
.78% |
.72% |
|
Expenses net of fee waivers, if any |
.56%A |
.43% |
.48% |
.75% |
.78% |
.72% |
|
Expenses net of all reductions |
.56%A |
.43% |
.47% |
.75% |
.77% |
.71% |
|
Net investment income (loss) |
1.43%A |
1.70% |
1.41% |
.91% |
.60% |
.76%G |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 2,050 |
$ 2,057 |
$ 1,639 |
$ 1,221 |
$ 634 |
$ 355 |
|
Portfolio turnover rateF |
80% A |
99% |
69% |
63%I |
67% |
85% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IPortfolio turnover rate excludes securities received or delivered in-kind. JTotal distributions of $.27 per share is comprised of distributions from net investment income of $.197 and distributions from net realized gain of $.077 per share. KTotal distributions of $.18 per share is comprised of distributions from net investment income of $.169 and distributions from net realized gain of $.015 per share. LTotal distributions of $3.64 per share is comprised of distributions from net investment income of $.419 and distributions from net realized gain of $3.225 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
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 Fund offers Dividend Growth and Class K 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, original issue discount, contingent interest, partnerships, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,540,641 |
|
Gross unrealized depreciation |
(203,167) |
|
Net unrealized appreciation (depreciation) on securities |
$ 1,337,474 |
|
|
|
|
Tax cost |
$ 7,141,187 |
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 percentages)
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
|
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $61 and a change in net unrealized appreciation (depreciation) of $(38) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,328,923 and $3,623,392, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Dividend Growth as compared to its benchmark index, the S&P 500® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .50% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Dividend Growth |
$ 5,421 |
.17 |
|
Class K |
493 |
.05 |
|
|
$ 5,914 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $47 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $224. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $99 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Dividend Growth expenses during the period in the amount of $14.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Dividend Growth |
$ 92,079 |
$ 70,700 |
|
Class K |
32,054 |
20,256 |
|
Total |
$ 124,133 |
$ 90,956 |
|
From net realized gain |
|
|
|
Dividend Growth |
$ 962,403 |
$ 606,886 |
|
Class K |
305,362 |
152,441 |
|
Total |
$ 1,267,765 |
$ 759,327 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended January 31, 2015 |
Year ended |
Six months ended January 31, 2015 |
Year ended |
|
Dividend Growth |
|
|
|
|
|
Shares sold |
5,902 |
11,713 |
$ 200,689 |
$ 413,381 |
|
Reinvestment of distributions |
30,296 |
19,201 |
1,009,451 |
630,027 |
|
Shares redeemed |
(13,522) |
(44,744) |
(462,351) |
(1,586,974) |
|
Net increase (decrease) |
22,676 |
(13,830) |
$ 747,789 |
$ (543,566) |
|
Class K |
|
|
|
|
|
Shares sold |
5,074 |
14,508 |
$ 173,520 |
$ 525,067 |
|
Reinvestment of distributions |
10,135 |
5,265 |
337,416 |
172,697 |
|
Shares redeemed |
(7,076) |
(10,980) |
(244,439) |
(388,018) |
|
Net increase (decrease) |
8,133 |
8,793 |
$ 266,497 |
$ 309,746 |
Semiannual Report
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.,
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
DGF-K-USAN-0315 1.863067.106
Fidelity®
Leveraged Company Stock
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the last six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
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, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized Expense RatioB |
Beginning |
Ending |
Expenses Paid |
|
Leveraged Company Stock |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 961.50 |
$ 3.91 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.22 |
$ 4.02 |
|
Class K |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 962.10 |
$ 3.36 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.78 |
$ 3.47 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
LyondellBasell Industries NV Class A |
7.5 |
10.3 |
|
Service Corp. International |
4.7 |
3.8 |
|
Comcast Corp. Class A |
3.8 |
3.8 |
|
Delta Air Lines, Inc. |
3.2 |
2.5 |
|
Rock-Tenn Co. Class A |
3.2 |
1.9 |
|
Boston Scientific Corp. |
2.9 |
2.2 |
|
Ford Motor Co. |
2.4 |
2.6 |
|
Bank of America Corp. |
2.4 |
2.5 |
|
General Motors Co. |
2.2 |
2.6 |
|
Merck & Co., Inc. |
1.8 |
1.6 |
|
|
34.1 |
|
|
Top Five Market Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Consumer Discretionary |
24.8 |
24.5 |
|
Materials |
13.2 |
14.6 |
|
Industrials |
12.4 |
11.5 |
|
Health Care |
12.2 |
10.9 |
|
Financials |
12.0 |
11.7 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015 * |
As of July 31, 2014 ** |
||||||
 |
Stocks 96.2% |
|
|
Stocks 98.0% |
|
||
 |
Bonds 0.4% |
|
|
Bonds 0.4% |
|
||
 |
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
14.5% |
|
** Foreign investments |
17.7% |
|
||
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 96.0% |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER DISCRETIONARY - 24.8% |
|||
|
Auto Components - 2.3% |
|||
|
Delphi Automotive PLC |
490,700 |
$ 33,726 |
|
|
Tenneco, Inc. (a) |
825,300 |
42,437 |
|
|
TRW Automotive Holdings Corp. (a) |
328,300 |
33,871 |
|
|
|
110,034 |
||
|
Automobiles - 5.1% |
|||
|
Ford Motor Co. |
7,806,833 |
114,839 |
|
|
General Motors Co. |
3,272,337 |
106,744 |
|
|
General Motors Co.: |
|
|
|
|
warrants 7/10/16 (a) |
482,521 |
11,079 |
|
|
warrants 7/10/19 (a) |
482,521 |
7,479 |
|
|
Motors Liquidation Co. GUC Trust (a) |
123,112 |
2,019 |
|
|
|
242,160 |
||
|
Diversified Consumer Services - 4.7% |
|||
|
Service Corp. International |
9,896,727 |
223,963 |
|
|
Hotels, Restaurants & Leisure - 0.7% |
|||
|
ARAMARK Holdings Corp. |
987,744 |
30,936 |
|
|
Penn National Gaming, Inc. (a) |
360,340 |
5,394 |
|
|
Station Holdco LLC unit (a)(g)(h) |
146,846 |
39 |
|
|
|
36,369 |
||
|
Household Durables - 2.4% |
|||
|
Hovnanian Enterprises, Inc. Class A (a)(d) |
1,419,000 |
4,881 |
|
|
Lennar Corp. Class A (d) |
677,100 |
30,409 |
|
|
Newell Rubbermaid, Inc. |
2,129,847 |
78,527 |
|
|
|
113,817 |
||
|
Media - 7.4% |
|||
|
AMC Networks, Inc. Class A (a) |
446,400 |
29,775 |
|
|
Cinemark Holdings, Inc. |
2,343,045 |
87,091 |
|
|
Comcast Corp. Class A |
3,385,334 |
179,914 |
|
|
Gray Television, Inc. (a) |
3,766,164 |
35,628 |
|
|
Nexstar Broadcasting Group, Inc. Class A |
455,698 |
22,737 |
|
|
|
355,145 |
||
|
Specialty Retail - 2.2% |
|||
|
Asbury Automotive Group, Inc. (a) |
385,122 |
28,580 |
|
|
GameStop Corp. Class A (d) |
1,483,407 |
52,290 |
|
|
Sally Beauty Holdings, Inc. (a) |
808,000 |
25,113 |
|
|
|
105,983 |
||
|
TOTAL CONSUMER DISCRETIONARY |
1,187,471 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER STAPLES - 1.7% |
|||
|
Food Products - 1.3% |
|||
|
ConAgra Foods, Inc. |
541,700 |
$ 19,192 |
|
|
Darling International, Inc. (a) |
2,698,383 |
45,819 |
|
|
|
65,011 |
||
|
Personal Products - 0.4% |
|||
|
Revlon, Inc. (a) |
553,261 |
18,114 |
|
|
TOTAL CONSUMER STAPLES |
83,125 |
||
|
ENERGY - 7.8% |
|||
|
Energy Equipment & Services - 1.9% |
|||
|
Ensco PLC Class A |
110,000 |
3,084 |
|
|
Halliburton Co. |
1,126,593 |
45,052 |
|
|
Noble Corp. |
987,610 |
16,019 |
|
|
Oil States International, Inc. (a) |
270,466 |
11,108 |
|
|
Schlumberger Ltd. |
109,400 |
9,013 |
|
|
Transocean Ltd. (United States) (d) |
381,900 |
6,225 |
|
|
|
90,501 |
||
|
Oil, Gas & Consumable Fuels - 5.9% |
|||
|
Continental Resources, Inc. (a)(d) |
807,474 |
36,659 |
|
|
Hess Corp. |
861,810 |
58,164 |
|
|
HollyFrontier Corp. |
1,329,663 |
47,761 |
|
|
Peabody Energy Corp. (d) |
2,252,625 |
14,034 |
|
|
QEP Resources, Inc. |
901,000 |
18,218 |
|
|
Range Resources Corp. |
247,200 |
11,438 |
|
|
Valero Energy Corp. |
1,103,866 |
58,372 |
|
|
Western Refining, Inc. |
451,814 |
16,776 |
|
|
Whiting Petroleum Corp. (a) |
704,995 |
21,164 |
|
|
|
282,586 |
||
|
TOTAL ENERGY |
373,087 |
||
|
FINANCIALS - 11.8% |
|||
|
Banks - 7.9% |
|||
|
Bank of America Corp. |
7,570,599 |
114,695 |
|
|
Barclays PLC sponsored ADR (d) |
2,441,721 |
34,282 |
|
|
CIT Group, Inc. |
229,310 |
10,048 |
|
|
Citigroup, Inc. |
1,221,847 |
57,366 |
|
|
Huntington Bancshares, Inc. |
7,805,080 |
78,207 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - continued |
|||
|
Banks - continued |
|||
|
Regions Financial Corp. |
5,015,480 |
$ 43,635 |
|
|
SunTrust Banks, Inc. |
1,019,600 |
39,173 |
|
|
|
377,406 |
||
|
Consumer Finance - 1.0% |
|||
|
American Express Co. |
567,448 |
45,787 |
|
|
Insurance - 1.2% |
|||
|
AFLAC, Inc. |
641,700 |
36,628 |
|
|
Lincoln National Corp. |
435,700 |
21,776 |
|
|
|
58,404 |
||
|
Real Estate Investment Trusts - 1.2% |
|||
|
Gaming & Leisure Properties |
430,875 |
14,059 |
|
|
Host Hotels & Resorts, Inc. |
1,016,122 |
23,259 |
|
|
Sabra Health Care REIT, Inc. |
547,507 |
17,903 |
|
|
|
55,221 |
||
|
Real Estate Management & Development - 0.4% |
|||
|
Realogy Holdings Corp. (a) |
463,840 |
21,569 |
|
|
Thrifts & Mortgage Finance - 0.1% |
|||
|
MGIC Investment Corp. (a) |
441,300 |
3,760 |
|
|
TOTAL FINANCIALS |
562,147 |
||
|
HEALTH CARE - 12.2% |
|||
|
Health Care Equipment & Supplies - 2.9% |
|||
|
Boston Scientific Corp. (a) |
9,434,356 |
139,723 |
|
|
Health Care Providers & Services - 6.0% |
|||
|
Community Health Systems, Inc. (a) |
1,267,827 |
59,677 |
|
|
DaVita HealthCare Partners, Inc. (a) |
532,952 |
40,003 |
|
|
HCA Holdings, Inc. (a) |
1,098,579 |
77,779 |
|
|
Tenet Healthcare Corp. (a) |
1,591,444 |
67,286 |
|
|
Universal Health Services, Inc. Class B |
385,505 |
39,526 |
|
|
|
284,271 |
||
|
Life Sciences Tools & Services - 0.4% |
|||
|
PRA Health Sciences, Inc. |
651,400 |
17,021 |
|
|
Pharmaceuticals - 2.9% |
|||
|
Johnson & Johnson |
153,000 |
15,321 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
HEALTH CARE - continued |
|||
|
Pharmaceuticals - continued |
|||
|
Merck & Co., Inc. |
1,453,600 |
$ 87,623 |
|
|
Sanofi SA sponsored ADR |
819,934 |
37,791 |
|
|
|
140,735 |
||
|
TOTAL HEALTH CARE |
581,750 |
||
|
INDUSTRIALS - 12.4% |
|||
|
Aerospace & Defense - 2.0% |
|||
|
Honeywell International, Inc. |
426,776 |
41,722 |
|
|
Huntington Ingalls Industries, Inc. |
258,160 |
30,101 |
|
|
Textron, Inc. |
602,700 |
25,651 |
|
|
|
97,474 |
||
|
Airlines - 5.7% |
|||
|
American Airlines Group, Inc. |
1,360,080 |
66,753 |
|
|
Delta Air Lines, Inc. |
3,213,501 |
152,031 |
|
|
Southwest Airlines Co. |
571,283 |
25,811 |
|
|
United Continental Holdings, Inc. (a) |
370,700 |
25,715 |
|
|
|
270,310 |
||
|
Building Products - 0.6% |
|||
|
Allegion PLC |
246,500 |
13,313 |
|
|
Armstrong World Industries, Inc. (a) |
273,500 |
13,866 |
|
|
|
27,179 |
||
|
Commercial Services & Supplies - 0.9% |
|||
|
Civeo Corp. |
540,932 |
1,585 |
|
|
Deluxe Corp. |
431,413 |
28,012 |
|
|
Tyco International Ltd. |
328,233 |
13,395 |
|
|
|
42,992 |
||
|
Electrical Equipment - 0.6% |
|||
|
Emerson Electric Co. |
163,500 |
9,310 |
|
|
Generac Holdings, Inc. (a)(d) |
490,557 |
21,457 |
|
|
|
30,767 |
||
|
Industrial Conglomerates - 0.6% |
|||
|
General Electric Co. |
1,103,883 |
26,372 |
|
|
Machinery - 1.1% |
|||
|
Ingersoll-Rand PLC |
739,500 |
49,103 |
|
|
Pentair PLC |
78,757 |
4,868 |
|
|
|
53,971 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
INDUSTRIALS - continued |
|||
|
Marine - 0.3% |
|||
|
Genco Shipping & Trading Ltd. (a) |
573,680 |
$ 6,654 |
|
|
Navios Maritime Holdings, Inc. (d) |
2,162,794 |
7,851 |
|
|
|
14,505 |
||
|
Road & Rail - 0.3% |
|||
|
Hertz Global Holdings, Inc. (a) |
707,700 |
14,522 |
|
|
Trading Companies & Distributors - 0.3% |
|||
|
United Rentals, Inc. (a) |
147,000 |
12,179 |
|
|
TOTAL INDUSTRIALS |
590,271 |
||
|
INFORMATION TECHNOLOGY - 9.3% |
|||
|
Communications Equipment - 1.2% |
|||
|
Cisco Systems, Inc. |
2,181,349 |
57,511 |
|
|
Electronic Equipment & Components - 1.9% |
|||
|
Avnet, Inc. |
594,313 |
24,735 |
|
|
Belden, Inc. |
510,764 |
42,363 |
|
|
Corning, Inc. |
726,800 |
17,276 |
|
|
Viasystems Group, Inc. (a) |
540,460 |
8,653 |
|
|
|
93,027 |
||
|
Internet Software & Services - 0.2% |
|||
|
VeriSign, Inc. (a)(d) |
194,300 |
10,585 |
|
|
IT Services - 0.1% |
|||
|
Global Cash Access Holdings, Inc. (a) |
1,037,067 |
6,855 |
|
|
Semiconductors & Semiconductor Equipment - 3.8% |
|||
|
Freescale Semiconductor, Inc. (a) |
1,033,800 |
33,175 |
|
|
Intersil Corp. Class A |
1,460,387 |
20,898 |
|
|
Micron Technology, Inc. (a) |
2,079,945 |
60,870 |
|
|
NXP Semiconductors NV (a) |
459,064 |
36,422 |
|
|
ON Semiconductor Corp. (a) |
2,920,068 |
29,230 |
|
|
|
180,595 |
||
|
Software - 1.5% |
|||
|
Citrix Systems, Inc. (a) |
230,899 |
13,683 |
|
|
Microsoft Corp. |
1,384,568 |
55,937 |
|
|
|
69,620 |
||
|
Technology Hardware, Storage & Peripherals - 0.6% |
|||
|
NCR Corp. (a) |
1,117,931 |
28,395 |
|
|
TOTAL INFORMATION TECHNOLOGY |
446,588 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
MATERIALS - 13.2% |
|||
|
Chemicals - 8.7% |
|||
|
H.B. Fuller Co. |
461,829 |
$ 19,004 |
|
|
LyondellBasell Industries NV Class A |
4,554,155 |
360,187 |
|
|
OMNOVA Solutions, Inc. (a)(e) |
3,114,962 |
21,369 |
|
|
Phosphate Holdings, Inc. (a) |
307,500 |
31 |
|
|
W.R. Grace & Co. (a) |
179,956 |
15,599 |
|
|
|
416,190 |
||
|
Containers & Packaging - 3.6% |
|||
|
Rock-Tenn Co. Class A |
2,336,728 |
151,654 |
|
|
Sealed Air Corp. |
483,434 |
19,579 |
|
|
|
171,233 |
||
|
Metals & Mining - 0.1% |
|||
|
Ormet Corp. (a)(e) |
1,405,000 |
18 |
|
|
TimkenSteel Corp. |
114,367 |
3,088 |
|
|
|
3,106 |
||
|
Paper & Forest Products - 0.8% |
|||
|
Louisiana-Pacific Corp. (a) |
1,563,090 |
25,588 |
|
|
Neenah Paper, Inc. |
266,200 |
15,275 |
|
|
|
40,863 |
||
|
TOTAL MATERIALS |
631,392 |
||
|
TELECOMMUNICATION SERVICES - 1.5% |
|||
|
Diversified Telecommunication Services - 1.5% |
|||
|
Frontier Communications Corp. (d) |
5,528,256 |
37,122 |
|
|
Intelsat SA (a) |
1,144,700 |
18,029 |
|
|
Level 3 Communications, Inc. (a) |
337,300 |
16,777 |
|
|
|
71,928 |
||
|
UTILITIES - 1.3% |
|||
|
Electric Utilities - 0.4% |
|||
|
FirstEnergy Corp. |
421,304 |
16,991 |
|
|
Independent Power Producers & Renewable Electricity Producers - 0.9% |
|||
|
Calpine Corp. (a) |
2,167,700 |
45,262 |
|
|
TOTAL UTILITIES |
62,253 |
||
|
TOTAL COMMON STOCKS (Cost $2,906,055) |
|
||
|
Nonconvertible Preferred Stocks - 0.2% |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - 0.2% |
|||
|
Capital Markets - 0.2% |
|||
|
GMAC Capital Trust I Series 2, 8.125% (Cost $10,975) |
439,013 |
$ 11,546 |
|
|
Nonconvertible Bonds - 0.4% |
||||
|
|
Principal Amount (000s) |
|
||
|
ENERGY - 0.4% |
||||
|
Energy Equipment & Services - 0.4% |
||||
|
Offshore Group Investment Ltd. 7.5% 11/1/19 |
|
$ 13,360 |
8,684 |
|
|
SAExploration Holdings, Inc. 10% 7/15/19 (f) |
|
14,345 |
8,464 |
|
|
|
17,148 |
|||
|
TOTAL NONCONVERTIBLE BONDS (Cost $26,479) |
|
|||
|
Money Market Funds - 7.9% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
170,100,022 |
170,100 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
209,499,752 |
209,500 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $379,600) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $3,323,109) |
4,998,306 |
||
|
NET OTHER ASSETS (LIABILITIES) - (4.5)% |
(216,712) |
||
|
NET ASSETS - 100% |
$ 4,781,594 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) 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 end of the period, the value of these securities amounted to $8,464,000 or 0.2% of net assets. |
|
(g) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership. |
|
(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 $39,000 or 0.0% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost (000s) |
|
Station Holdco LLC unit |
10/28/08 - 12/1/08 |
$ 5,990 |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 61 |
|
Fidelity Securities Lending Cash Central Fund |
692 |
|
Total |
$ 753 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, |
Purchases |
Sales |
Dividend |
Value, |
|
Gray Television, Inc. |
$ 45,872 |
$ - |
$ - |
$ - |
$ - |
|
OMNOVA Solutions, Inc. |
25,138 |
- |
- |
- |
21,369 |
|
Ormet Corp. |
8 |
- |
- |
- |
18 |
|
Total |
$ 71,018 |
$ - |
$ - |
$ - |
$ 21,387 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 1,187,471 |
$ 1,187,432 |
$ - |
$ 39 |
|
Consumer Staples |
83,125 |
83,125 |
- |
- |
|
Energy |
373,087 |
373,087 |
- |
- |
|
Financials |
573,693 |
573,693 |
- |
- |
|
Health Care |
581,750 |
581,750 |
- |
- |
|
Industrials |
590,271 |
590,271 |
- |
- |
|
Information Technology |
446,588 |
446,588 |
- |
- |
|
Materials |
631,392 |
631,392 |
- |
- |
|
Telecommunication Services |
71,928 |
71,928 |
- |
- |
|
Utilities |
62,253 |
62,253 |
- |
- |
|
Corporate Bonds |
17,148 |
- |
17,148 |
- |
|
Money Market Funds |
379,600 |
379,600 |
- |
- |
|
Total Investments in Securities: |
$ 4,998,306 |
$ 4,981,119 |
$ 17,148 |
$ 39 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
85.5% |
|
Netherlands |
8.3% |
|
Ireland |
1.7% |
|
United Kingdom |
1.1% |
|
Others (Individually Less Than 1%) |
3.4% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $203,333) - See accompanying schedule: Unaffiliated issuers (cost $2,890,669) |
$ 4,597,319 |
|
|
Fidelity Central Funds (cost $379,600) |
379,600 |
|
|
Other affiliated issuers (cost $52,840) |
21,387 |
|
|
Total Investments (cost $3,323,109) |
|
$ 4,998,306 |
|
Receivable for fund shares sold |
|
2,196 |
|
Dividends receivable |
|
1,694 |
|
Interest receivable |
|
314 |
|
Distributions receivable from Fidelity Central Funds |
|
259 |
|
Prepaid expenses |
|
8 |
|
Other receivables |
|
4 |
|
Total assets |
|
5,002,781 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 208 |
|
|
Payable for fund shares redeemed |
8,332 |
|
|
Accrued management fee |
2,441 |
|
|
Other affiliated payables |
661 |
|
|
Other payables and accrued expenses |
45 |
|
|
Collateral on securities loaned, at value |
209,500 |
|
|
Total liabilities |
|
221,187 |
|
|
|
|
|
Net Assets |
|
$ 4,781,594 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 3,038,887 |
|
Undistributed net investment income |
|
3,436 |
|
Accumulated undistributed net realized gain (loss) on investments |
|
64,074 |
|
Net unrealized appreciation (depreciation) on investments |
|
1,675,197 |
|
Net Assets |
|
$ 4,781,594 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Leveraged Company Stock: |
|
$ 43.73 |
|
|
|
|
|
Class K: |
|
$ 43.79 |
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, 2015 (Unaudited) |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 39,911 |
|
Interest |
|
954 |
|
Income from Fidelity Central Funds |
|
753 |
|
Total income |
|
41,618 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 15,617 |
|
|
Transfer agent fees |
3,558 |
|
|
Accounting and security lending fees |
576 |
|
|
Custodian fees and expenses |
26 |
|
|
Independent trustees' compensation |
11 |
|
|
Registration fees |
65 |
|
|
Audit |
35 |
|
|
Legal |
17 |
|
|
Miscellaneous |
63 |
|
|
Total expenses before reductions |
19,968 |
|
|
Expense reductions |
(7) |
19,961 |
|
Net investment income (loss) |
|
21,657 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
120,218 |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
(344,538) |
|
Net gain (loss) |
|
(224,320) |
|
Net increase (decrease) in net assets resulting from operations |
|
$ (202,663) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
Amounts in thousands |
Six months ended January 31, 2015 (Unaudited) |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 21,657 |
$ 44,390 |
|
Net realized gain (loss) |
120,218 |
184,977 |
|
Change in net unrealized appreciation (depreciation) |
(344,538) |
610,173 |
|
Net increase (decrease) in net assets resulting |
(202,663) |
839,540 |
|
Distributions to shareholders from net investment income |
(41,090) |
(37,155) |
|
Share transactions - net increase (decrease) |
(354,445) |
(702,631) |
|
Redemption fees |
228 |
366 |
|
Total increase (decrease) in net assets |
(597,970) |
100,120 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
5,379,564 |
5,279,444 |
|
End of period (including undistributed net investment income of $3,436 and undistributed net investment income of $22,869, respectively) |
$ 4,781,594 |
$ 5,379,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
|
|
Six months ended |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 45.82 |
$ 39.44 |
$ 28.22 |
$ 28.85 |
$ 23.50 |
$ 19.55 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.42H |
.16 |
- J |
.07 |
|
Net realized and unrealized gain (loss) |
(1.93) |
6.31 |
10.92 |
(.50) |
5.46 |
3.99 |
|
Total from investment operations |
(1.75) |
6.65 |
11.34 |
(.34) |
5.46 |
4.06 |
|
Distributions from net investment income |
(.34) |
(.27) |
(.12) |
(.29) |
(.11) |
(.11) |
|
Redemption fees added to paid in capital D, G |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 43.73 |
$ 45.82 |
$ 39.44 |
$ 28.22 |
$ 28.85 |
$ 23.50 |
|
Total ReturnB, C |
(3.85)% |
16.96% |
40.31% |
(1.05)% |
23.27% |
20.84% |
|
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
|
Expenses before reductions |
.79%A |
.79% |
.82% |
.86% |
.85% |
.88% |
|
Expenses net of fee waivers, if any |
.79%A |
.79% |
.82% |
.86% |
.85% |
.88% |
|
Expenses net of all reductions |
.79%A |
.79% |
.82% |
.85% |
.84% |
.88% |
|
Net investment income (loss) |
.81% A |
.81% |
1.25% H |
.60% |
-% G |
.29% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 3,698 |
$ 4,207 |
$ 4,227 |
$ 3,009 |
$ 3,931 |
$ 3,983 |
|
Portfolio turnover rateF |
6% A |
10% |
21% |
29% |
18% |
21% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Amount represents less than .01%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
|
|
Six months ended |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 45.91 |
$ 39.52 |
$ 28.26 |
$ 28.86 |
$ 23.52 |
$ 19.56 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.21 |
.40 |
.47G |
.20 |
.04 |
.11 |
|
Net realized and unrealized gain (loss) |
(1.93) |
6.31 |
10.93 |
(.49) |
5.45 |
4.00 |
|
Total from investment operations |
(1.72) |
6.71 |
11.40 |
(.29) |
5.49 |
4.11 |
|
Distributions from net investment income |
(.40) |
(.32) |
(.14) |
(.31) |
(.15) |
(.15) |
|
Redemption fees added to paid in capital D, I |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 43.79 |
$ 45.91 |
$ 39.52 |
$ 28.26 |
$ 28.86 |
$ 23.52 |
|
Total ReturnB, C |
(3.79)% |
17.10% |
40.47% |
(.87)% |
23.45% |
21.09% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.67% |
.69% |
.69% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.67% |
.69% |
.69% |
.69% |
.70% |
|
Expenses net of all reductions |
.68%A |
.67% |
.68% |
.69% |
.69% |
.69% |
|
Net investment income (loss) |
.92% A |
.92% |
1.39% G |
.76% |
.16% |
.47% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,083 |
$ 1,173 |
$ 1,053 |
$ 600 |
$ 555 |
$ 410 |
|
Portfolio turnover rateF |
6% A |
10% |
21% |
29% |
18% |
21% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.17%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
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 Fund offers Leveraged Company Stock and Class K 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, equity-debt classifications, capital loss carryforwards and losses deferred due to excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,903,690 |
|
Gross unrealized depreciation |
(228,448) |
|
Net unrealized appreciation (depreciation) on securities |
$ 1,675,242 |
|
|
|
|
Tax cost |
$ 3,323,064 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2018 |
$ (47,279) |
The Fund elected to defer to its next fiscal year approximately $8,865 of capital losses recognized during the period November 1, 2013 to July 31, 2014.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $148,162 and $596,169, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .60% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Leveraged Company Stock |
$ 3,283 |
.16 |
|
Class K |
275 |
.05 |
|
|
$ 3,558 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $16 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender |
Average Loan Balance |
Weighted Average Interest Rate |
Interest Expense |
|
Borrower |
$ 9,431 |
.34% |
$ -* |
* Amount represents two hundred seventy dollars.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,249. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $692, including $23 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Leveraged Company Stock expenses during the period in the amount of $7.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Leveraged Company Stock |
$ 30,775 |
$ 28,583 |
|
Class K |
10,315 |
8,572 |
|
Total |
$ 41,090 |
$ 37,155 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Leveraged Company Stock |
|
|
|
|
|
Shares sold |
2,967 |
9,604 |
$ 134,277 |
$ 407,601 |
|
Reinvestment of distributions |
626 |
670 |
29,028 |
26,928 |
|
Shares redeemed |
(10,825) |
(25,643) |
(485,378) |
(1,089,706) |
|
Net increase (decrease) |
(7,232) |
(15,369) |
$ (322,073) |
$ (655,177) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Leveraged Company Stock |
|
|
|
|
|
Class K |
|
|
|
|
|
Shares sold |
4,144 |
5,696 |
$ 190,253 |
$ 243,726 |
|
Reinvestment of distributions |
222 |
213 |
10,315 |
8,572 |
|
Shares redeemed |
(5,172) |
(7,002) |
(232,940) |
(299,752) |
|
Net increase (decrease) |
(806) |
(1,093) |
$ (32,372) |
$ (47,454) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
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®) 
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
LSF-USAN-0315 1.789286.112
Fidelity®
Leveraged Company Stock
Fund -
Class K
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the last six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
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, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized Expense RatioB |
Beginning |
Ending |
Expenses Paid |
|
Leveraged Company Stock |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 961.50 |
$ 3.91 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.22 |
$ 4.02 |
|
Class K |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 962.10 |
$ 3.36 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.78 |
$ 3.47 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
LyondellBasell Industries NV Class A |
7.5 |
10.3 |
|
Service Corp. International |
4.7 |
3.8 |
|
Comcast Corp. Class A |
3.8 |
3.8 |
|
Delta Air Lines, Inc. |
3.2 |
2.5 |
|
Rock-Tenn Co. Class A |
3.2 |
1.9 |
|
Boston Scientific Corp. |
2.9 |
2.2 |
|
Ford Motor Co. |
2.4 |
2.6 |
|
Bank of America Corp. |
2.4 |
2.5 |
|
General Motors Co. |
2.2 |
2.6 |
|
Merck & Co., Inc. |
1.8 |
1.6 |
|
|
34.1 |
|
|
Top Five Market Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Consumer Discretionary |
24.8 |
24.5 |
|
Materials |
13.2 |
14.6 |
|
Industrials |
12.4 |
11.5 |
|
Health Care |
12.2 |
10.9 |
|
Financials |
12.0 |
11.7 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015 * |
As of July 31, 2014 ** |
||||||
|
Stocks 96.2% |
|
|
Stocks 98.0% |
|
||
|
Bonds 0.4% |
|
|
Bonds 0.4% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
14.5% |
|
** Foreign investments |
17.7% |
|
||
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 96.0% |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER DISCRETIONARY - 24.8% |
|||
|
Auto Components - 2.3% |
|||
|
Delphi Automotive PLC |
490,700 |
$ 33,726 |
|
|
Tenneco, Inc. (a) |
825,300 |
42,437 |
|
|
TRW Automotive Holdings Corp. (a) |
328,300 |
33,871 |
|
|
|
110,034 |
||
|
Automobiles - 5.1% |
|||
|
Ford Motor Co. |
7,806,833 |
114,839 |
|
|
General Motors Co. |
3,272,337 |
106,744 |
|
|
General Motors Co.: |
|
|
|
|
warrants 7/10/16 (a) |
482,521 |
11,079 |
|
|
warrants 7/10/19 (a) |
482,521 |
7,479 |
|
|
Motors Liquidation Co. GUC Trust (a) |
123,112 |
2,019 |
|
|
|
242,160 |
||
|
Diversified Consumer Services - 4.7% |
|||
|
Service Corp. International |
9,896,727 |
223,963 |
|
|
Hotels, Restaurants & Leisure - 0.7% |
|||
|
ARAMARK Holdings Corp. |
987,744 |
30,936 |
|
|
Penn National Gaming, Inc. (a) |
360,340 |
5,394 |
|
|
Station Holdco LLC unit (a)(g)(h) |
146,846 |
39 |
|
|
|
36,369 |
||
|
Household Durables - 2.4% |
|||
|
Hovnanian Enterprises, Inc. Class A (a)(d) |
1,419,000 |
4,881 |
|
|
Lennar Corp. Class A (d) |
677,100 |
30,409 |
|
|
Newell Rubbermaid, Inc. |
2,129,847 |
78,527 |
|
|
|
113,817 |
||
|
Media - 7.4% |
|||
|
AMC Networks, Inc. Class A (a) |
446,400 |
29,775 |
|
|
Cinemark Holdings, Inc. |
2,343,045 |
87,091 |
|
|
Comcast Corp. Class A |
3,385,334 |
179,914 |
|
|
Gray Television, Inc. (a) |
3,766,164 |
35,628 |
|
|
Nexstar Broadcasting Group, Inc. Class A |
455,698 |
22,737 |
|
|
|
355,145 |
||
|
Specialty Retail - 2.2% |
|||
|
Asbury Automotive Group, Inc. (a) |
385,122 |
28,580 |
|
|
GameStop Corp. Class A (d) |
1,483,407 |
52,290 |
|
|
Sally Beauty Holdings, Inc. (a) |
808,000 |
25,113 |
|
|
|
105,983 |
||
|
TOTAL CONSUMER DISCRETIONARY |
1,187,471 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
CONSUMER STAPLES - 1.7% |
|||
|
Food Products - 1.3% |
|||
|
ConAgra Foods, Inc. |
541,700 |
$ 19,192 |
|
|
Darling International, Inc. (a) |
2,698,383 |
45,819 |
|
|
|
65,011 |
||
|
Personal Products - 0.4% |
|||
|
Revlon, Inc. (a) |
553,261 |
18,114 |
|
|
TOTAL CONSUMER STAPLES |
83,125 |
||
|
ENERGY - 7.8% |
|||
|
Energy Equipment & Services - 1.9% |
|||
|
Ensco PLC Class A |
110,000 |
3,084 |
|
|
Halliburton Co. |
1,126,593 |
45,052 |
|
|
Noble Corp. |
987,610 |
16,019 |
|
|
Oil States International, Inc. (a) |
270,466 |
11,108 |
|
|
Schlumberger Ltd. |
109,400 |
9,013 |
|
|
Transocean Ltd. (United States) (d) |
381,900 |
6,225 |
|
|
|
90,501 |
||
|
Oil, Gas & Consumable Fuels - 5.9% |
|||
|
Continental Resources, Inc. (a)(d) |
807,474 |
36,659 |
|
|
Hess Corp. |
861,810 |
58,164 |
|
|
HollyFrontier Corp. |
1,329,663 |
47,761 |
|
|
Peabody Energy Corp. (d) |
2,252,625 |
14,034 |
|
|
QEP Resources, Inc. |
901,000 |
18,218 |
|
|
Range Resources Corp. |
247,200 |
11,438 |
|
|
Valero Energy Corp. |
1,103,866 |
58,372 |
|
|
Western Refining, Inc. |
451,814 |
16,776 |
|
|
Whiting Petroleum Corp. (a) |
704,995 |
21,164 |
|
|
|
282,586 |
||
|
TOTAL ENERGY |
373,087 |
||
|
FINANCIALS - 11.8% |
|||
|
Banks - 7.9% |
|||
|
Bank of America Corp. |
7,570,599 |
114,695 |
|
|
Barclays PLC sponsored ADR (d) |
2,441,721 |
34,282 |
|
|
CIT Group, Inc. |
229,310 |
10,048 |
|
|
Citigroup, Inc. |
1,221,847 |
57,366 |
|
|
Huntington Bancshares, Inc. |
7,805,080 |
78,207 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - continued |
|||
|
Banks - continued |
|||
|
Regions Financial Corp. |
5,015,480 |
$ 43,635 |
|
|
SunTrust Banks, Inc. |
1,019,600 |
39,173 |
|
|
|
377,406 |
||
|
Consumer Finance - 1.0% |
|||
|
American Express Co. |
567,448 |
45,787 |
|
|
Insurance - 1.2% |
|||
|
AFLAC, Inc. |
641,700 |
36,628 |
|
|
Lincoln National Corp. |
435,700 |
21,776 |
|
|
|
58,404 |
||
|
Real Estate Investment Trusts - 1.2% |
|||
|
Gaming & Leisure Properties |
430,875 |
14,059 |
|
|
Host Hotels & Resorts, Inc. |
1,016,122 |
23,259 |
|
|
Sabra Health Care REIT, Inc. |
547,507 |
17,903 |
|
|
|
55,221 |
||
|
Real Estate Management & Development - 0.4% |
|||
|
Realogy Holdings Corp. (a) |
463,840 |
21,569 |
|
|
Thrifts & Mortgage Finance - 0.1% |
|||
|
MGIC Investment Corp. (a) |
441,300 |
3,760 |
|
|
TOTAL FINANCIALS |
562,147 |
||
|
HEALTH CARE - 12.2% |
|||
|
Health Care Equipment & Supplies - 2.9% |
|||
|
Boston Scientific Corp. (a) |
9,434,356 |
139,723 |
|
|
Health Care Providers & Services - 6.0% |
|||
|
Community Health Systems, Inc. (a) |
1,267,827 |
59,677 |
|
|
DaVita HealthCare Partners, Inc. (a) |
532,952 |
40,003 |
|
|
HCA Holdings, Inc. (a) |
1,098,579 |
77,779 |
|
|
Tenet Healthcare Corp. (a) |
1,591,444 |
67,286 |
|
|
Universal Health Services, Inc. Class B |
385,505 |
39,526 |
|
|
|
284,271 |
||
|
Life Sciences Tools & Services - 0.4% |
|||
|
PRA Health Sciences, Inc. |
651,400 |
17,021 |
|
|
Pharmaceuticals - 2.9% |
|||
|
Johnson & Johnson |
153,000 |
15,321 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
HEALTH CARE - continued |
|||
|
Pharmaceuticals - continued |
|||
|
Merck & Co., Inc. |
1,453,600 |
$ 87,623 |
|
|
Sanofi SA sponsored ADR |
819,934 |
37,791 |
|
|
|
140,735 |
||
|
TOTAL HEALTH CARE |
581,750 |
||
|
INDUSTRIALS - 12.4% |
|||
|
Aerospace & Defense - 2.0% |
|||
|
Honeywell International, Inc. |
426,776 |
41,722 |
|
|
Huntington Ingalls Industries, Inc. |
258,160 |
30,101 |
|
|
Textron, Inc. |
602,700 |
25,651 |
|
|
|
97,474 |
||
|
Airlines - 5.7% |
|||
|
American Airlines Group, Inc. |
1,360,080 |
66,753 |
|
|
Delta Air Lines, Inc. |
3,213,501 |
152,031 |
|
|
Southwest Airlines Co. |
571,283 |
25,811 |
|
|
United Continental Holdings, Inc. (a) |
370,700 |
25,715 |
|
|
|
270,310 |
||
|
Building Products - 0.6% |
|||
|
Allegion PLC |
246,500 |
13,313 |
|
|
Armstrong World Industries, Inc. (a) |
273,500 |
13,866 |
|
|
|
27,179 |
||
|
Commercial Services & Supplies - 0.9% |
|||
|
Civeo Corp. |
540,932 |
1,585 |
|
|
Deluxe Corp. |
431,413 |
28,012 |
|
|
Tyco International Ltd. |
328,233 |
13,395 |
|
|
|
42,992 |
||
|
Electrical Equipment - 0.6% |
|||
|
Emerson Electric Co. |
163,500 |
9,310 |
|
|
Generac Holdings, Inc. (a)(d) |
490,557 |
21,457 |
|
|
|
30,767 |
||
|
Industrial Conglomerates - 0.6% |
|||
|
General Electric Co. |
1,103,883 |
26,372 |
|
|
Machinery - 1.1% |
|||
|
Ingersoll-Rand PLC |
739,500 |
49,103 |
|
|
Pentair PLC |
78,757 |
4,868 |
|
|
|
53,971 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
INDUSTRIALS - continued |
|||
|
Marine - 0.3% |
|||
|
Genco Shipping & Trading Ltd. (a) |
573,680 |
$ 6,654 |
|
|
Navios Maritime Holdings, Inc. (d) |
2,162,794 |
7,851 |
|
|
|
14,505 |
||
|
Road & Rail - 0.3% |
|||
|
Hertz Global Holdings, Inc. (a) |
707,700 |
14,522 |
|
|
Trading Companies & Distributors - 0.3% |
|||
|
United Rentals, Inc. (a) |
147,000 |
12,179 |
|
|
TOTAL INDUSTRIALS |
590,271 |
||
|
INFORMATION TECHNOLOGY - 9.3% |
|||
|
Communications Equipment - 1.2% |
|||
|
Cisco Systems, Inc. |
2,181,349 |
57,511 |
|
|
Electronic Equipment & Components - 1.9% |
|||
|
Avnet, Inc. |
594,313 |
24,735 |
|
|
Belden, Inc. |
510,764 |
42,363 |
|
|
Corning, Inc. |
726,800 |
17,276 |
|
|
Viasystems Group, Inc. (a) |
540,460 |
8,653 |
|
|
|
93,027 |
||
|
Internet Software & Services - 0.2% |
|||
|
VeriSign, Inc. (a)(d) |
194,300 |
10,585 |
|
|
IT Services - 0.1% |
|||
|
Global Cash Access Holdings, Inc. (a) |
1,037,067 |
6,855 |
|
|
Semiconductors & Semiconductor Equipment - 3.8% |
|||
|
Freescale Semiconductor, Inc. (a) |
1,033,800 |
33,175 |
|
|
Intersil Corp. Class A |
1,460,387 |
20,898 |
|
|
Micron Technology, Inc. (a) |
2,079,945 |
60,870 |
|
|
NXP Semiconductors NV (a) |
459,064 |
36,422 |
|
|
ON Semiconductor Corp. (a) |
2,920,068 |
29,230 |
|
|
|
180,595 |
||
|
Software - 1.5% |
|||
|
Citrix Systems, Inc. (a) |
230,899 |
13,683 |
|
|
Microsoft Corp. |
1,384,568 |
55,937 |
|
|
|
69,620 |
||
|
Technology Hardware, Storage & Peripherals - 0.6% |
|||
|
NCR Corp. (a) |
1,117,931 |
28,395 |
|
|
TOTAL INFORMATION TECHNOLOGY |
446,588 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value (000s) |
||
|
MATERIALS - 13.2% |
|||
|
Chemicals - 8.7% |
|||
|
H.B. Fuller Co. |
461,829 |
$ 19,004 |
|
|
LyondellBasell Industries NV Class A |
4,554,155 |
360,187 |
|
|
OMNOVA Solutions, Inc. (a)(e) |
3,114,962 |
21,369 |
|
|
Phosphate Holdings, Inc. (a) |
307,500 |
31 |
|
|
W.R. Grace & Co. (a) |
179,956 |
15,599 |
|
|
|
416,190 |
||
|
Containers & Packaging - 3.6% |
|||
|
Rock-Tenn Co. Class A |
2,336,728 |
151,654 |
|
|
Sealed Air Corp. |
483,434 |
19,579 |
|
|
|
171,233 |
||
|
Metals & Mining - 0.1% |
|||
|
Ormet Corp. (a)(e) |
1,405,000 |
18 |
|
|
TimkenSteel Corp. |
114,367 |
3,088 |
|
|
|
3,106 |
||
|
Paper & Forest Products - 0.8% |
|||
|
Louisiana-Pacific Corp. (a) |
1,563,090 |
25,588 |
|
|
Neenah Paper, Inc. |
266,200 |
15,275 |
|
|
|
40,863 |
||
|
TOTAL MATERIALS |
631,392 |
||
|
TELECOMMUNICATION SERVICES - 1.5% |
|||
|
Diversified Telecommunication Services - 1.5% |
|||
|
Frontier Communications Corp. (d) |
5,528,256 |
37,122 |
|
|
Intelsat SA (a) |
1,144,700 |
18,029 |
|
|
Level 3 Communications, Inc. (a) |
337,300 |
16,777 |
|
|
|
71,928 |
||
|
UTILITIES - 1.3% |
|||
|
Electric Utilities - 0.4% |
|||
|
FirstEnergy Corp. |
421,304 |
16,991 |
|
|
Independent Power Producers & Renewable Electricity Producers - 0.9% |
|||
|
Calpine Corp. (a) |
2,167,700 |
45,262 |
|
|
TOTAL UTILITIES |
62,253 |
||
|
TOTAL COMMON STOCKS (Cost $2,906,055) |
|
||
|
Nonconvertible Preferred Stocks - 0.2% |
|||
|
Shares |
Value (000s) |
||
|
FINANCIALS - 0.2% |
|||
|
Capital Markets - 0.2% |
|||
|
GMAC Capital Trust I Series 2, 8.125% (Cost $10,975) |
439,013 |
$ 11,546 |
|
|
Nonconvertible Bonds - 0.4% |
||||
|
|
Principal Amount (000s) |
|
||
|
ENERGY - 0.4% |
||||
|
Energy Equipment & Services - 0.4% |
||||
|
Offshore Group Investment Ltd. 7.5% 11/1/19 |
|
$ 13,360 |
8,684 |
|
|
SAExploration Holdings, Inc. 10% 7/15/19 (f) |
|
14,345 |
8,464 |
|
|
|
17,148 |
|||
|
TOTAL NONCONVERTIBLE BONDS (Cost $26,479) |
|
|||
|
Money Market Funds - 7.9% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
170,100,022 |
170,100 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
209,499,752 |
209,500 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $379,600) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 104.5% (Cost $3,323,109) |
4,998,306 |
||
|
NET OTHER ASSETS (LIABILITIES) - (4.5)% |
(216,712) |
||
|
NET ASSETS - 100% |
$ 4,781,594 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) 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 end of the period, the value of these securities amounted to $8,464,000 or 0.2% of net assets. |
|
(g) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership. |
|
(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 $39,000 or 0.0% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost (000s) |
|
Station Holdco LLC unit |
10/28/08 - 12/1/08 |
$ 5,990 |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 61 |
|
Fidelity Securities Lending Cash Central Fund |
692 |
|
Total |
$ 753 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, |
Purchases |
Sales |
Dividend |
Value, |
|
Gray Television, Inc. |
$ 45,872 |
$ - |
$ - |
$ - |
$ - |
|
OMNOVA Solutions, Inc. |
25,138 |
- |
- |
- |
21,369 |
|
Ormet Corp. |
8 |
- |
- |
- |
18 |
|
Total |
$ 71,018 |
$ - |
$ - |
$ - |
$ 21,387 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 1,187,471 |
$ 1,187,432 |
$ - |
$ 39 |
|
Consumer Staples |
83,125 |
83,125 |
- |
- |
|
Energy |
373,087 |
373,087 |
- |
- |
|
Financials |
573,693 |
573,693 |
- |
- |
|
Health Care |
581,750 |
581,750 |
- |
- |
|
Industrials |
590,271 |
590,271 |
- |
- |
|
Information Technology |
446,588 |
446,588 |
- |
- |
|
Materials |
631,392 |
631,392 |
- |
- |
|
Telecommunication Services |
71,928 |
71,928 |
- |
- |
|
Utilities |
62,253 |
62,253 |
- |
- |
|
Corporate Bonds |
17,148 |
- |
17,148 |
- |
|
Money Market Funds |
379,600 |
379,600 |
- |
- |
|
Total Investments in Securities: |
$ 4,998,306 |
$ 4,981,119 |
$ 17,148 |
$ 39 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
85.5% |
|
Netherlands |
8.3% |
|
Ireland |
1.7% |
|
United Kingdom |
1.1% |
|
Others (Individually Less Than 1%) |
3.4% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $203,333) - See accompanying schedule: Unaffiliated issuers (cost $2,890,669) |
$ 4,597,319 |
|
|
Fidelity Central Funds (cost $379,600) |
379,600 |
|
|
Other affiliated issuers (cost $52,840) |
21,387 |
|
|
Total Investments (cost $3,323,109) |
|
$ 4,998,306 |
|
Receivable for fund shares sold |
|
2,196 |
|
Dividends receivable |
|
1,694 |
|
Interest receivable |
|
314 |
|
Distributions receivable from Fidelity Central Funds |
|
259 |
|
Prepaid expenses |
|
8 |
|
Other receivables |
|
4 |
|
Total assets |
|
5,002,781 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 208 |
|
|
Payable for fund shares redeemed |
8,332 |
|
|
Accrued management fee |
2,441 |
|
|
Other affiliated payables |
661 |
|
|
Other payables and accrued expenses |
45 |
|
|
Collateral on securities loaned, at value |
209,500 |
|
|
Total liabilities |
|
221,187 |
|
|
|
|
|
Net Assets |
|
$ 4,781,594 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 3,038,887 |
|
Undistributed net investment income |
|
3,436 |
|
Accumulated undistributed net realized gain (loss) on investments |
|
64,074 |
|
Net unrealized appreciation (depreciation) on investments |
|
1,675,197 |
|
Net Assets |
|
$ 4,781,594 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts) |
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Leveraged Company Stock: |
|
$ 43.73 |
|
|
|
|
|
Class K: |
|
$ 43.79 |
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, 2015 (Unaudited) |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 39,911 |
|
Interest |
|
954 |
|
Income from Fidelity Central Funds |
|
753 |
|
Total income |
|
41,618 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 15,617 |
|
|
Transfer agent fees |
3,558 |
|
|
Accounting and security lending fees |
576 |
|
|
Custodian fees and expenses |
26 |
|
|
Independent trustees' compensation |
11 |
|
|
Registration fees |
65 |
|
|
Audit |
35 |
|
|
Legal |
17 |
|
|
Miscellaneous |
63 |
|
|
Total expenses before reductions |
19,968 |
|
|
Expense reductions |
(7) |
19,961 |
|
Net investment income (loss) |
|
21,657 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
120,218 |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
(344,538) |
|
Net gain (loss) |
|
(224,320) |
|
Net increase (decrease) in net assets resulting from operations |
|
$ (202,663) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
Amounts in thousands |
Six months ended January 31, 2015 (Unaudited) |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 21,657 |
$ 44,390 |
|
Net realized gain (loss) |
120,218 |
184,977 |
|
Change in net unrealized appreciation (depreciation) |
(344,538) |
610,173 |
|
Net increase (decrease) in net assets resulting |
(202,663) |
839,540 |
|
Distributions to shareholders from net investment income |
(41,090) |
(37,155) |
|
Share transactions - net increase (decrease) |
(354,445) |
(702,631) |
|
Redemption fees |
228 |
366 |
|
Total increase (decrease) in net assets |
(597,970) |
100,120 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
5,379,564 |
5,279,444 |
|
End of period (including undistributed net investment income of $3,436 and undistributed net investment income of $22,869, respectively) |
$ 4,781,594 |
$ 5,379,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Leveraged Company Stock
|
|
Six months ended |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 45.82 |
$ 39.44 |
$ 28.22 |
$ 28.85 |
$ 23.50 |
$ 19.55 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.42H |
.16 |
- J |
.07 |
|
Net realized and unrealized gain (loss) |
(1.93) |
6.31 |
10.92 |
(.50) |
5.46 |
3.99 |
|
Total from investment operations |
(1.75) |
6.65 |
11.34 |
(.34) |
5.46 |
4.06 |
|
Distributions from net investment income |
(.34) |
(.27) |
(.12) |
(.29) |
(.11) |
(.11) |
|
Redemption fees added to paid in capital D, G |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 43.73 |
$ 45.82 |
$ 39.44 |
$ 28.22 |
$ 28.85 |
$ 23.50 |
|
Total ReturnB, C |
(3.85)% |
16.96% |
40.31% |
(1.05)% |
23.27% |
20.84% |
|
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
|
Expenses before reductions |
.79%A |
.79% |
.82% |
.86% |
.85% |
.88% |
|
Expenses net of fee waivers, if any |
.79%A |
.79% |
.82% |
.86% |
.85% |
.88% |
|
Expenses net of all reductions |
.79%A |
.79% |
.82% |
.85% |
.84% |
.88% |
|
Net investment income (loss) |
.81% A |
.81% |
1.25% H |
.60% |
-% G |
.29% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 3,698 |
$ 4,207 |
$ 4,227 |
$ 3,009 |
$ 3,931 |
$ 3,983 |
|
Portfolio turnover rateF |
6% A |
10% |
21% |
29% |
18% |
21% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Amount represents less than .01%.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
|
|
Six months ended |
Years ended July 31, |
||||
|
|
(Unaudited) |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 45.91 |
$ 39.52 |
$ 28.26 |
$ 28.86 |
$ 23.52 |
$ 19.56 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.21 |
.40 |
.47G |
.20 |
.04 |
.11 |
|
Net realized and unrealized gain (loss) |
(1.93) |
6.31 |
10.93 |
(.49) |
5.45 |
4.00 |
|
Total from investment operations |
(1.72) |
6.71 |
11.40 |
(.29) |
5.49 |
4.11 |
|
Distributions from net investment income |
(.40) |
(.32) |
(.14) |
(.31) |
(.15) |
(.15) |
|
Redemption fees added to paid in capital D, I |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 43.79 |
$ 45.91 |
$ 39.52 |
$ 28.26 |
$ 28.86 |
$ 23.52 |
|
Total ReturnB, C |
(3.79)% |
17.10% |
40.47% |
(.87)% |
23.45% |
21.09% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.67% |
.69% |
.69% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.67% |
.69% |
.69% |
.69% |
.70% |
|
Expenses net of all reductions |
.68%A |
.67% |
.68% |
.69% |
.69% |
.69% |
|
Net investment income (loss) |
.92% A |
.92% |
1.39% G |
.76% |
.16% |
.47% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,083 |
$ 1,173 |
$ 1,053 |
$ 600 |
$ 555 |
$ 410 |
|
Portfolio turnover rateF |
6% A |
10% |
21% |
29% |
18% |
21% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.17%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
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 Fund offers Leveraged Company Stock and Class K 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent
Semiannual Report
3. Significant Accounting Policies - continued
Class Allocations and Expenses - continued
of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, equity-debt classifications, capital loss carryforwards and losses deferred due to excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,903,690 |
|
Gross unrealized depreciation |
(228,448) |
|
Net unrealized appreciation (depreciation) on securities |
$ 1,675,242 |
|
|
|
|
Tax cost |
$ 3,323,064 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2018 |
$ (47,279) |
The Fund elected to defer to its next fiscal year approximately $8,865 of capital losses recognized during the period November 1, 2013 to July 31, 2014.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $148,162 and $596,169, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .60% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Leveraged Company Stock |
$ 3,283 |
.16 |
|
Class K |
275 |
.05 |
|
|
$ 3,558 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $16 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender |
Average Loan Balance |
Weighted Average Interest Rate |
Interest Expense |
|
Borrower |
$ 9,431 |
.34% |
$ -* |
* Amount represents two hundred seventy dollars.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,249. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $692, including $23 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses, including certain Leveraged Company Stock expenses during the period in the amount of $7.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Leveraged Company Stock |
$ 30,775 |
$ 28,583 |
|
Class K |
10,315 |
8,572 |
|
Total |
$ 41,090 |
$ 37,155 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Leveraged Company Stock |
|
|
|
|
|
Shares sold |
2,967 |
9,604 |
$ 134,277 |
$ 407,601 |
|
Reinvestment of distributions |
626 |
670 |
29,028 |
26,928 |
|
Shares redeemed |
(10,825) |
(25,643) |
(485,378) |
(1,089,706) |
|
Net increase (decrease) |
(7,232) |
(15,369) |
$ (322,073) |
$ (655,177) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Leveraged Company Stock |
|
|
|
|
|
Class K |
|
|
|
|
|
Shares sold |
4,144 |
5,696 |
$ 190,253 |
$ 243,726 |
|
Reinvestment of distributions |
222 |
213 |
10,315 |
8,572 |
|
Shares redeemed |
(5,172) |
(7,002) |
(232,940) |
(299,752) |
|
Net increase (decrease) |
(806) |
(1,093) |
$ (32,372) |
$ (47,454) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
LSF-K-USAN-0315 1.863384.106
Fidelity®
Series Real Estate Income
Fund
Fidelity Series Real Estate Income Fund
Class F
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Real Estate Income Fund or 1-800-835-5092 for Class F of the fund to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Series Real Estate Income |
.77% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,049.40 |
$ 3.98 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.32 |
$ 3.92 |
|
Class F |
.61% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,049.50 |
$ 3.15 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.13 |
$ 3.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Five Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Acadia Realty Trust (SBI) |
1.9 |
1.5 |
|
Equity Lifestyle Properties, Inc. |
1.9 |
1.6 |
|
MFA Financial, Inc. |
1.5 |
1.6 |
|
Excel Trust, Inc. Series B, 8.125% |
1.2 |
1.1 |
|
Ventas, Inc. |
1.0 |
1.2 |
|
|
7.5 |
|
|
Top 5 Bonds as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Standard Pacific Corp. 8.375% 5/15/18 |
1.0 |
1.1 |
|
Blackstone Mortgage Trust, Inc. 5.25% 12/1/18 |
1.0 |
1.0 |
|
Blackstone 9.98% 10/1/17 |
0.8 |
0.9 |
|
M/I Homes, Inc. 8.625% 11/15/18 |
0.8 |
0.9 |
|
iStar Financial, Inc. 5.875% 3/15/16 |
0.8 |
0.9 |
|
|
4.4 |
|
|
Top Five REIT Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
REITs - Mortgage |
16.2 |
15.8 |
|
REITs - Shopping Centers |
7.1 |
5.9 |
|
REITs - Health Care |
5.2 |
5.0 |
|
REITs - Management/Investment |
4.9 |
6.7 |
|
REITs - Office Property |
4.2 |
4.1 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
 |
Common Stocks 16.4% |
|
|
Common Stocks 15.5% |
|
||
 |
Preferred Stocks 23.9% |
|
|
Preferred Stocks 22.5% |
|
||
 |
Bonds 41.7% |
|
|
Bonds 43.6% |
|
||
 |
Convertible |
|
|
Convertible |
|
||
 |
Other Investments 7.6% |
|
|
Other Investments 6.6% |
|
||
 |
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
0.9% |
|
** Foreign investments |
2.6% |
|
||
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 16.4% |
|||
|
Shares |
Value |
||
|
FINANCIALS - 16.4% |
|||
|
Capital Markets - 0.1% |
|||
|
Ellington Financial LLC |
56,200 |
$ 1,177,390 |
|
|
Real Estate Investment Trusts - 16.1% |
|||
|
Acadia Realty Trust (SBI) |
456,500 |
16,520,721 |
|
|
American Realty Capital Properties, Inc. |
85,800 |
794,937 |
|
|
American Tower Corp. |
15,200 |
1,473,640 |
|
|
Annaly Capital Management, Inc. |
89,200 |
941,952 |
|
|
Anworth Mortgage Asset Corp. |
271,800 |
1,410,642 |
|
|
Apartment Investment & Management Co. Class A |
109,200 |
4,352,712 |
|
|
Arbor Realty Trust, Inc. |
124,900 |
868,055 |
|
|
AvalonBay Communities, Inc. |
14,500 |
2,508,355 |
|
|
CBL & Associates Properties, Inc. |
247,100 |
5,095,202 |
|
|
Cedar Shopping Centers, Inc. |
41,700 |
331,932 |
|
|
Chambers Street Properties |
129,600 |
1,095,120 |
|
|
Chartwell Retirement Residence (a)(c) |
14,700 |
146,225 |
|
|
CYS Investments, Inc. |
188,400 |
1,665,456 |
|
|
Douglas Emmett, Inc. |
56,500 |
1,609,120 |
|
|
Dynex Capital, Inc. |
228,300 |
1,910,871 |
|
|
EastGroup Properties, Inc. |
7,900 |
510,656 |
|
|
Equity Lifestyle Properties, Inc. |
301,700 |
16,512,041 |
|
|
Equity Residential (SBI) |
29,200 |
2,266,212 |
|
|
Excel Trust, Inc. |
218,800 |
3,071,952 |
|
|
Extra Space Storage, Inc. |
17,100 |
1,128,600 |
|
|
First Potomac Realty Trust |
120,400 |
1,541,120 |
|
|
Five Oaks Investment Corp. |
15,700 |
171,758 |
|
|
Hatteras Financial Corp. |
70,600 |
1,283,508 |
|
|
Lexington Corporate Properties Trust |
400,900 |
4,574,269 |
|
|
LTC Properties, Inc. |
46,800 |
2,195,856 |
|
|
MFA Financial, Inc. |
1,657,400 |
12,994,016 |
|
|
Mid-America Apartment Communities, Inc. |
66,900 |
5,306,508 |
|
|
Monmouth Real Estate Investment Corp. Class A |
78,100 |
922,361 |
|
|
National Retail Properties, Inc. |
25,000 |
1,071,000 |
|
|
New Senior Investment Group, Inc. |
139,099 |
2,300,697 |
|
|
Newcastle Investment Corp. |
135,699 |
601,147 |
|
|
NorthStar Realty Finance Corp. |
21,300 |
402,783 |
|
|
Piedmont Office Realty Trust, Inc. Class A |
49,100 |
958,923 |
|
|
Potlatch Corp. |
36,200 |
1,442,932 |
|
|
Prologis, Inc. |
32,700 |
1,476,078 |
|
|
Redwood Trust, Inc. |
13,000 |
259,090 |
|
|
Sabra Health Care REIT, Inc. |
28,600 |
935,220 |
|
|
Select Income (REIT) |
42,500 |
1,056,975 |
|
|
Senior Housing Properties Trust (SBI) |
198,600 |
4,625,394 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Simon Property Group, Inc. |
15,900 |
$ 3,158,694 |
|
|
Store Capital Corp. |
46,800 |
1,074,528 |
|
|
Terreno Realty Corp. |
181,061 |
4,128,191 |
|
|
Two Harbors Investment Corp. |
163,900 |
1,691,448 |
|
|
Ventas, Inc. |
107,300 |
8,563,613 |
|
|
Washington REIT (SBI) |
21,600 |
620,136 |
|
|
Weyerhaeuser Co. |
66,100 |
2,369,685 |
|
|
WP Carey, Inc. |
67,200 |
4,825,632 |
|
|
WP Glimcher, Inc. |
99,050 |
1,751,204 |
|
|
|
136,517,167 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Kennedy-Wilson Holdings, Inc. |
74,800 |
1,988,932 |
|
|
TOTAL COMMON STOCKS (Cost $104,701,445) |
|
||
|
Preferred Stocks - 24.7% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 0.8% |
|||
|
FINANCIALS - 0.8% |
|||
|
Real Estate Investment Trusts - 0.8% |
|||
|
Excel Trust, Inc. 7.00% (a)(c) |
24,300 |
656,100 |
|
|
Health Care REIT, Inc. Series I, 6.50% (a) |
16,200 |
1,154,250 |
|
|
Lexington Corporate Properties Trust Series C, 6.50% (a) |
67,619 |
3,302,769 |
|
|
Weyerhaeuser Co. Series A, 6.375% |
32,000 |
1,848,000 |
|
|
|
6,961,119 |
||
|
Nonconvertible Preferred Stocks - 23.9% |
|||
|
CONSUMER DISCRETIONARY - 0.3% |
|||
|
Hotels, Restaurants & Leisure - 0.3% |
|||
|
Red Lion Hotels Capital Trust 9.50% |
88,322 |
2,288,423 |
|
|
FINANCIALS - 23.6% |
|||
|
Capital Markets - 0.1% |
|||
|
Arlington Asset Investment Corp. 6.625% |
31,528 |
775,589 |
|
|
Real Estate Investment Trusts - 23.3% |
|||
|
AG Mortgage Investment Trust, Inc.: |
|
|
|
|
8.00% |
117,104 |
2,891,298 |
|
|
8.25% |
300 |
7,602 |
|
|
Alexandria Real Estate Equities, Inc. Series E, 6.45% |
24,001 |
628,346 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
American Capital Agency Corp.: |
|
|
|
|
8.00% |
120,000 |
$ 3,202,800 |
|
|
Series B, 7.75% |
16,000 |
403,200 |
|
|
American Capital Mortgage Investment Corp. Series A, 8.125% |
33,100 |
833,458 |
|
|
American Homes 4 Rent: |
|
|
|
|
Series A, 5.00% |
216,100 |
5,460,847 |
|
|
Series B, 5.00% |
86,900 |
2,198,570 |
|
|
Series C, 5.50% |
71,400 |
1,794,996 |
|
|
American Realty Capital Properties, Inc. Series F, 6.70% |
164,162 |
3,787,217 |
|
|
Annaly Capital Management, Inc.: |
|
|
|
|
Series A, 7.875% |
150,300 |
3,901,788 |
|
|
Series C, 7.625% |
24,839 |
629,917 |
|
|
Series D, 7.50% |
83,513 |
2,119,560 |
|
|
Anworth Mortgage Asset Corp. Series A, 8.625% |
178,800 |
4,543,308 |
|
|
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% |
61,725 |
1,619,664 |
|
|
Apollo Residential Mortgage, Inc. Series A, 8.00% |
49,077 |
1,217,600 |
|
|
Arbor Realty Trust, Inc.: |
|
|
|
|
7.375% |
20,000 |
501,200 |
|
|
Series A, 8.25% |
41,922 |
1,056,434 |
|
|
Series B, 7.75% |
40,000 |
981,960 |
|
|
Series C, 8.50% |
15,000 |
383,550 |
|
|
Armour Residential REIT, Inc. Series B, 7.875% |
25,701 |
620,679 |
|
|
Ashford Hospitality Trust, Inc.: |
|
|
|
|
Series D, 8.45% |
51,709 |
1,329,955 |
|
|
Series E, 9.00% |
35,948 |
952,622 |
|
|
Brandywine Realty Trust Series E, 6.90% |
21,000 |
571,620 |
|
|
Campus Crest Communities, Inc. Series A, 8.00% |
73,069 |
1,908,562 |
|
|
Capstead Mortgage Corp. Series E, 7.50% |
37,016 |
928,361 |
|
|
CBL & Associates Properties, Inc.: |
|
|
|
|
Series D, 7.375% |
67,200 |
1,733,760 |
|
|
Series E, 6.625% |
45,505 |
1,196,782 |
|
|
Cedar Shopping Centers, Inc. Series B, 7.25% |
109,018 |
2,856,272 |
|
|
Chesapeake Lodging Trust Series A, 7.75% |
64,034 |
1,741,725 |
|
|
Colony Financial, Inc. Series A, 8.50% |
77,829 |
2,062,469 |
|
|
Coresite Realty Corp. Series A, 7.25% |
42,600 |
1,118,250 |
|
|
Corporate Office Properties Trust Series L, 7.375% |
136,869 |
3,681,776 |
|
|
CubeSmart Series A, 7.75% |
40,000 |
1,092,400 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
CYS Investments, Inc.: |
|
|
|
|
Series A, 7.75% |
10,014 |
$ 242,539 |
|
|
Series B, 7.50% |
63,333 |
1,491,492 |
|
|
DDR Corp.: |
|
|
|
|
Series J, 6.50% |
70,181 |
1,877,342 |
|
|
Series K, 6.25% |
25,489 |
670,106 |
|
|
Digital Realty Trust, Inc.: |
|
|
|
|
Series E, 7.00% |
40,181 |
1,043,501 |
|
|
Series F, 6.625% |
20,000 |
518,200 |
|
|
Series G, 5.875% |
28,270 |
686,113 |
|
|
Series H, 7.375% |
10,000 |
272,200 |
|
|
DuPont Fabros Technology, Inc. Series B, 7.625% |
73,798 |
1,940,149 |
|
|
Dynex Capital, Inc.: |
|
|
|
|
Series A, 8.50% |
96,313 |
2,429,977 |
|
|
Series B, 7.625% |
47,335 |
1,147,874 |
|
|
Equity Commonwealth Series E, 7.25% |
200,160 |
5,146,114 |
|
|
Equity Lifestyle Properties, Inc. Series C, 6.75% |
182,313 |
4,734,669 |
|
|
Essex Property Trust, Inc. Series H, 7.125% |
8,100 |
216,027 |
|
|
Excel Trust, Inc. Series B, 8.125% |
360,000 |
9,788,400 |
|
|
First Potomac Realty Trust 7.75% |
107,746 |
2,828,333 |
|
|
Five Oaks Investment Corp. Series A, 8.75% |
40,000 |
1,012,000 |
|
|
General Growth Properties, Inc. Series A, 6.375% |
34,690 |
892,574 |
|
|
Gladstone Commercial Corp. Series C, 7.125% |
67,762 |
1,748,260 |
|
|
Hatteras Financial Corp. Series A, 7.625% |
89,188 |
2,162,809 |
|
|
Health Care REIT, Inc. Series J, 6.50% |
33,400 |
896,122 |
|
|
Hersha Hospitality Trust Series B, 8.00% |
18,928 |
501,403 |
|
|
Hospitality Properties Trust Series D, 7.125% |
40,200 |
1,080,978 |
|
|
Hudson Pacific Properties, Inc. 8.375% |
84,787 |
2,268,052 |
|
|
Inland Real Estate Corp.: |
|
|
|
|
Series A, 8.125% |
200,000 |
5,350,000 |
|
|
Series B, 6.95% |
46,000 |
1,196,920 |
|
|
Invesco Mortgage Capital, Inc.: |
|
|
|
|
Series A, 7.75% |
30,151 |
753,172 |
|
|
Series B, 7.75% |
93,498 |
2,303,791 |
|
|
Investors Real Estate Trust Series B, 7.95% |
33,428 |
888,182 |
|
|
iStar Financial, Inc.: |
|
|
|
|
Series E, 7.875% |
24,583 |
612,117 |
|
|
Series F, 7.80% |
128,864 |
3,182,941 |
|
|
Series G, 7.65% |
84,000 |
2,062,200 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Kilroy Realty Corp.: |
|
|
|
|
Series G, 6.875% |
20,300 |
$ 563,325 |
|
|
Series H, 6.375% |
31,704 |
843,326 |
|
|
Kite Realty Group Trust 8.25% |
4,100 |
107,625 |
|
|
LaSalle Hotel Properties: |
|
|
|
|
Series H, 7.50% |
37,192 |
969,224 |
|
|
Series I, 6.375% |
47,339 |
1,234,128 |
|
|
LBA Realty Fund II Series B, 7.625% |
118,900 |
2,734,700 |
|
|
MFA Financial, Inc.: |
|
|
|
|
8.00% |
108,747 |
2,816,547 |
|
|
Series B, 7.50% |
188,749 |
4,677,200 |
|
|
Monmouth Real Estate Investment Corp. Series B, 7.875% |
30,000 |
795,300 |
|
|
National Retail Properties, Inc.: |
|
|
|
|
5.70% |
46,124 |
1,142,953 |
|
|
Series D, 6.625% |
46,667 |
1,231,542 |
|
|
New York Mortgage Trust, Inc. Series B, 7.75% |
70,013 |
1,737,023 |
|
|
NorthStar Realty Finance Corp.: |
|
|
|
|
Series B, 8.25% |
16,301 |
417,632 |
|
|
Series C, 8.875% |
105,295 |
2,777,682 |
|
|
Series D, 8.50% |
44,213 |
1,149,538 |
|
|
Series E, 8.75% |
70,920 |
1,858,813 |
|
|
Pebblebrook Hotel Trust: |
|
|
|
|
Series A, 7.875% |
119,000 |
3,076,150 |
|
|
Series B, 8.00% |
37,400 |
994,840 |
|
|
Series C, 6.50% |
67,026 |
1,756,081 |
|
|
Pennsylvania (REIT) 7.375% |
55,408 |
1,468,312 |
|
|
Prologis, Inc. Series Q, 8.54% |
15,800 |
994,413 |
|
|
PS Business Parks, Inc.: |
|
|
|
|
Series R, 6.875% |
1,100 |
28,435 |
|
|
Series S, 6.45% |
5,665 |
149,443 |
|
|
Series T, 6.00% |
26,000 |
662,220 |
|
|
Series U, 5.75% |
102,483 |
2,541,578 |
|
|
Public Storage 6.375% |
24,000 |
643,920 |
|
|
RAIT Financial Trust: |
|
|
|
|
7.125% |
62,863 |
1,562,774 |
|
|
7.625% |
46,080 |
1,122,048 |
|
|
Regency Centers Corp.: |
|
|
|
|
Series 6, 6.625% |
31,239 |
812,839 |
|
|
Series 7, 6.00% |
22,000 |
561,440 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Retail Properties America, Inc. 7.00% |
83,617 |
$ 2,160,663 |
|
|
Sabra Health Care REIT, Inc. Series A, 7.125% |
80,000 |
2,172,000 |
|
|
Saul Centers, Inc. Series C, 6.875% |
69,596 |
1,865,869 |
|
|
Senior Housing Properties Trust 5.625% |
42,353 |
1,058,825 |
|
|
Stag Industrial, Inc. Series A, 9.00% |
280,000 |
7,624,400 |
|
|
Summit Hotel Properties, Inc. Series A, 9.25% |
173,700 |
4,766,328 |
|
|
Sun Communities, Inc. Series A, 7.125% |
59,000 |
1,548,750 |
|
|
Sunstone Hotel Investors, Inc. Series D, 8.00% |
32,939 |
878,154 |
|
|
Taubman Centers, Inc. Series K, 6.25% |
19,561 |
511,520 |
|
|
Terreno Realty Corp. Series A, 7.75% |
81,048 |
2,137,236 |
|
|
UMH Properties, Inc. Series A, 8.25% |
96,000 |
2,528,640 |
|
|
Urstadt Biddle Properties, Inc.: |
|
|
|
|
6.75% |
33,500 |
911,535 |
|
|
Series F, 7.125% |
30,000 |
809,700 |
|
|
Weingarten Realty Investors (SBI) Series F, 6.50% |
26,708 |
675,712 |
|
|
Wells Fargo Real Estate Investment Corp. 6.375% (a) |
37,000 |
966,440 |
|
|
Winthrop Realty Trust 7.75% |
60,000 |
1,529,400 |
|
|
WP Glimcher, Inc.: |
|
|
|
|
6.875% (a) |
3,183 |
83,745 |
|
|
7.50% (a) |
53,575 |
1,379,556 |
|
|
8.125% (a) |
40,977 |
1,034,669 |
|
|
|
197,977,298 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Kennedy-Wilson, Inc. 7.75% |
55,054 |
1,419,292 |
|
|
TOTAL FINANCIALS |
200,172,179 |
||
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
202,460,602 |
||
|
TOTAL PREFERRED STOCKS (Cost $196,742,499) |
|
||
|
Corporate Bonds - 25.3% |
||||
|
|
Principal Amount |
Value |
||
|
Convertible Bonds - 5.3% |
||||
|
FINANCIALS - 5.3% |
||||
|
Consumer Finance - 0.4% |
||||
|
Zais Financial Partners LP 8% 11/15/16 (c) |
|
$ 3,000,000 |
$ 3,112,500 |
|
|
Diversified Financial Services - 0.3% |
||||
|
RWT Holdings, Inc. 5.625% 11/15/19 (c) |
|
2,360,000 |
2,409,914 |
|
|
Real Estate Investment Trusts - 3.9% |
||||
|
Annaly Capital Management, Inc. 5% 5/15/15 |
|
6,690,000 |
6,702,544 |
|
|
Apollo Commercial Real Estate Finance, Inc. 5.5% 3/15/19 |
|
1,180,000 |
1,164,513 |
|
|
Ares Commercial Real Estate Corp. 7% 12/15/15 |
|
2,300,000 |
2,354,625 |
|
|
Blackstone Mortgage Trust, Inc. 5.25% 12/1/18 |
|
7,750,000 |
8,127,813 |
|
|
Campus Crest Communities Operating Partnership LP 4.75% 10/15/18 (c) |
|
3,000,000 |
2,855,625 |
|
|
Colony Financial, Inc. 3.875% 1/15/21 |
|
1,090,000 |
1,136,325 |
|
|
PennyMac Corp. 5.375% 5/1/20 |
|
1,810,000 |
1,730,813 |
|
|
RAIT Financial Trust 4% 10/1/33 |
|
5,150,000 |
4,322,781 |
|
|
Redwood Trust, Inc. 4.625% 4/15/18 |
|
2,200,000 |
2,129,875 |
|
|
Resource Capital Corp. 8% 1/15/20 |
|
1,500,000 |
1,435,779 |
|
|
Spirit Realty Capital, Inc. 3.75% 5/15/21 |
|
500,000 |
511,875 |
|
|
Starwood Property Trust, Inc. 3.75% 10/15/17 |
|
650,000 |
671,531 |
|
|
Starwood Waypoint Residential 4.5% 10/15/17 (c) |
|
390,000 |
390,000 |
|
|
|
33,534,099 |
|||
|
Thrifts & Mortgage Finance - 0.7% |
||||
|
IAS Operating Partnership LP 5% 3/15/18 (c) |
|
6,370,000 |
6,043,538 |
|
|
TOTAL FINANCIALS |
45,100,051 |
|||
|
Nonconvertible Bonds - 20.0% |
||||
|
CONSUMER DISCRETIONARY - 6.2% |
||||
|
Hotels, Restaurants & Leisure - 1.0% |
||||
|
FelCor Lodging LP 6.75% 6/1/19 |
|
1,375,000 |
1,433,438 |
|
|
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 |
|
1,555,000 |
1,640,525 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc. 8% 10/1/20 (c) |
|
2,250,000 |
2,216,250 |
|
|
Times Square Hotel Trust 8.528% 8/1/26 (c) |
|
2,532,417 |
3,324,775 |
|
|
|
8,614,988 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Household Durables - 5.2% |
||||
|
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co. 6.875% 2/15/21 (c) |
|
$ 1,800,000 |
$ 1,683,000 |
|
|
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (c) |
|
850,000 |
862,750 |
|
|
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (c) |
|
395,000 |
404,875 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
4.375% 9/15/22 |
|
825,000 |
820,875 |
|
|
5.75% 8/15/23 |
|
490,000 |
526,750 |
|
|
6.5% 4/15/16 |
|
811,000 |
849,523 |
|
|
KB Home: |
|
|
|
|
|
8% 3/15/20 |
|
2,395,000 |
2,511,756 |
|
|
9.1% 9/15/17 |
|
1,185,000 |
1,324,238 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
1,220,000 |
1,213,900 |
|
|
4.5% 6/15/19 |
|
400,000 |
404,000 |
|
|
5.6% 5/31/15 |
|
1,216,000 |
1,230,835 |
|
|
6.95% 6/1/18 |
|
1,720,000 |
1,866,200 |
|
|
M/I Homes, Inc. 8.625% 11/15/18 |
|
6,764,000 |
7,034,560 |
|
|
Meritage Homes Corp.: |
|
|
|
|
|
7% 4/1/22 |
|
2,005,000 |
2,115,275 |
|
|
7.15% 4/15/20 |
|
1,940,000 |
2,075,800 |
|
|
Ryland Group, Inc.: |
|
|
|
|
|
6.625% 5/1/20 |
|
445,000 |
468,363 |
|
|
8.4% 5/15/17 |
|
1,446,000 |
1,617,713 |
|
|
Standard Pacific Corp.: |
|
|
|
|
|
5.875% 11/15/24 |
|
630,000 |
625,275 |
|
|
8.375% 5/15/18 |
|
7,732,000 |
8,722,624 |
|
|
10.75% 9/15/16 |
|
1,914,000 |
2,150,858 |
|
|
William Lyon Homes, Inc.: |
|
|
|
|
|
7% 8/15/22 |
|
820,000 |
828,200 |
|
|
8.5% 11/15/20 |
|
4,320,000 |
4,611,600 |
|
|
|
43,948,970 |
|||
|
TOTAL CONSUMER DISCRETIONARY |
52,563,958 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - 12.3% |
||||
|
Diversified Financial Services - 0.5% |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
5.875% 2/1/22 |
|
$ 820,000 |
$ 838,450 |
|
|
6% 8/1/20 |
|
3,500,000 |
3,661,350 |
|
|
|
4,499,800 |
|||
|
Real Estate Investment Trusts - 9.2% |
||||
|
American Campus Communities Operating Partnership LP 4.125% 7/1/24 |
|
1,000,000 |
1,048,947 |
|
|
American Tower Corp. 3.4% 2/15/19 |
|
2,000,000 |
2,065,090 |
|
|
Camden Property Trust 5% 6/15/15 |
|
1,135,000 |
1,153,414 |
|
|
CBL & Associates LP 5.25% 12/1/23 |
|
2,000,000 |
2,221,196 |
|
|
Commercial Net Lease Realty, Inc. 6.15% 12/15/15 |
|
917,000 |
955,343 |
|
|
Crown Castle International Corp. 5.25% 1/15/23 |
|
1,500,000 |
1,537,500 |
|
|
CTR Partnership LP/CareTrust Capital Corp. 5.875% 6/1/21 |
|
475,000 |
483,313 |
|
|
CubeSmart LP 4.8% 7/15/22 |
|
1,000,000 |
1,125,691 |
|
|
DCT Industrial Operating Partnership LP 4.5% 10/15/23 |
|
2,000,000 |
2,159,444 |
|
|
DDR Corp.: |
|
|
|
|
|
7.5% 7/15/18 |
|
2,407,000 |
2,837,213 |
|
|
9.625% 3/15/16 |
|
2,254,000 |
2,466,796 |
|
|
DuPont Fabros Technology LP 5.875% 9/15/21 |
|
2,000,000 |
2,075,000 |
|
|
Equity One, Inc.: |
|
|
|
|
|
5.375% 10/15/15 |
|
405,000 |
416,467 |
|
|
6% 9/15/16 |
|
811,000 |
867,750 |
|
|
6.25% 1/15/17 |
|
811,000 |
879,746 |
|
|
Health Care Property Investors, Inc.: |
|
|
|
|
|
6% 3/1/15 |
|
1,216,000 |
1,221,063 |
|
|
6.3% 9/15/16 |
|
3,850,000 |
4,160,272 |
|
|
7.072% 6/8/15 |
|
405,000 |
413,756 |
|
|
Health Care REIT, Inc. 4.125% 4/1/19 |
|
1,000,000 |
1,079,886 |
|
|
Healthcare Realty Trust, Inc.: |
|
|
|
|
|
3.75% 4/15/23 |
|
801,000 |
813,897 |
|
|
6.5% 1/17/17 |
|
506,000 |
553,273 |
|
|
Highwoods/Forsyth LP: |
|
|
|
|
|
3.625% 1/15/23 |
|
393,000 |
407,423 |
|
|
5.85% 3/15/17 |
|
2,593,000 |
2,821,106 |
|
|
Hospitality Properties Trust: |
|
|
|
|
|
5% 8/15/22 |
|
823,000 |
891,558 |
|
|
5.625% 3/15/17 |
|
1,248,000 |
1,340,222 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
Hospitality Properties Trust: - continued |
|
|
|
|
|
6.7% 1/15/18 |
|
$ 811,000 |
$ 901,118 |
|
|
HRPT Properties Trust 6.25% 8/15/16 |
|
4,000,000 |
4,184,212 |
|
|
iStar Financial, Inc.: |
|
|
|
|
|
3.875% 7/1/16 |
|
525,000 |
526,313 |
|
|
4% 11/1/17 |
|
2,500,000 |
2,443,750 |
|
|
5% 7/1/19 |
|
2,500,000 |
2,456,250 |
|
|
5.85% 3/15/17 |
|
825,000 |
845,625 |
|
|
5.875% 3/15/16 |
|
6,800,000 |
6,919,000 |
|
|
6.05% 4/15/15 |
|
2,887,000 |
2,901,435 |
|
|
7.125% 2/15/18 |
|
1,010,000 |
1,065,550 |
|
|
9% 6/1/17 |
|
2,430,000 |
2,673,000 |
|
|
Lexington Corporate Properties Trust 4.25% 6/15/23 |
|
2,500,000 |
2,628,578 |
|
|
MPT Operating Partnership LP/MPT Finance Corp. 6.375% 2/15/22 |
|
1,685,000 |
1,811,375 |
|
|
National Retail Properties, Inc. 6.875% 10/15/17 |
|
1,621,000 |
1,830,634 |
|
|
Nationwide Health Properties, Inc. 6% 5/20/15 |
|
1,540,000 |
1,564,061 |
|
|
Omega Healthcare Investors, Inc.: |
|
|
|
|
|
4.95% 4/1/24 |
|
627,000 |
673,624 |
|
|
7.5% 2/15/20 |
|
811,000 |
845,062 |
|
|
Potlatch Corp. 7.5% 11/1/19 |
|
811,000 |
928,595 |
|
|
Prologis LP 7.625% 7/1/17 |
|
1,268,000 |
1,426,273 |
|
|
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 |
|
811,000 |
987,122 |
|
|
Senior Housing Properties Trust: |
|
|
|
|
|
4.75% 5/1/24 |
|
849,000 |
903,536 |
|
|
6.75% 4/15/20 |
|
576,000 |
662,080 |
|
|
6.75% 12/15/21 |
|
2,000,000 |
2,359,208 |
|
|
United Dominion Realty Trust, Inc. 5.25% 1/15/16 |
|
811,000 |
843,119 |
|
|
|
78,374,886 |
|||
|
Real Estate Management & Development - 2.3% |
||||
|
Brandywine Operating Partnership LP 6% 4/1/16 |
|
811,000 |
855,159 |
|
|
CBRE Group, Inc.: |
|
|
|
|
|
5% 3/15/23 |
|
1,225,000 |
1,283,188 |
|
|
5.25% 3/15/25 |
|
625,000 |
662,500 |
|
|
Excel Trust LP 4.625% 5/15/24 |
|
501,000 |
535,664 |
|
|
First Industrial LP 5.75% 1/15/16 |
|
811,000 |
841,456 |
|
|
Forestar U.S.A. Real Estate Group 8.5% 6/1/22 (c) |
|
800,000 |
766,000 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Host Hotels & Resorts LP 6% 10/1/21 |
|
$ 485,000 |
$ 567,670 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (c) |
|
1,615,000 |
1,687,675 |
|
|
Hunt Companies, Inc. 9.625% 3/1/21 (c) |
|
900,000 |
911,250 |
|
|
Kennedy-Wilson, Inc. 5.875% 4/1/24 |
|
1,530,000 |
1,548,054 |
|
|
Mid-America Apartments LP: |
|
|
|
|
|
3.75% 6/15/24 |
|
337,000 |
352,478 |
|
|
6.05% 9/1/16 |
|
1,216,000 |
1,308,825 |
|
|
Realogy Group LLC/Realogy Co.-Issuer Corp.: |
|
|
|
|
|
4.5% 4/15/19 (c) |
|
1,005,000 |
1,005,000 |
|
|
5.25% 12/1/21 (c) |
|
1,280,000 |
1,260,800 |
|
|
Regency Centers LP: |
|
|
|
|
|
5.25% 8/1/15 |
|
3,250,000 |
3,321,919 |
|
|
5.875% 6/15/17 |
|
486,000 |
535,072 |
|
|
Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.625% 3/1/24 (c) |
|
495,000 |
460,350 |
|
|
Ventas Realty LP/Ventas Capital Corp.: |
|
|
|
|
|
3.125% 11/30/15 |
|
552,000 |
561,913 |
|
|
4% 4/30/19 |
|
597,000 |
641,485 |
|
|
|
19,106,458 |
|||
|
Thrifts & Mortgage Finance - 0.3% |
||||
|
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp. 7.75% 2/15/18 (c) |
|
1,025,000 |
1,070,997 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (c) |
|
1,920,000 |
1,488,000 |
|
|
|
2,558,997 |
|||
|
TOTAL FINANCIALS |
104,540,141 |
|||
|
HEALTH CARE - 1.2% |
||||
|
Health Care Equipment & Supplies - 0.2% |
||||
|
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: |
|
|
|
|
|
6% 10/15/21 |
|
295,000 |
308,275 |
|
|
7.75% 2/15/19 |
|
1,835,000 |
1,910,235 |
|
|
|
2,218,510 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
HEALTH CARE - continued |
||||
|
Health Care Providers & Services - 1.0% |
||||
|
Sabra Health Care LP/Sabra Capital Corp.: |
|
|
|
|
|
5.375% 6/1/23 |
|
$ 3,500,000 |
$ 3,683,750 |
|
|
5.5% 2/1/21 |
|
4,450,000 |
4,705,875 |
|
|
|
8,389,625 |
|||
|
TOTAL HEALTH CARE |
10,608,135 |
|||
|
INDUSTRIALS - 0.1% |
||||
|
Industrial Conglomerates - 0.1% |
||||
|
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 |
|
785,000 |
804,625 |
|
|
MATERIALS - 0.2% |
||||
|
Paper & Forest Products - 0.2% |
||||
|
Plum Creek Timberlands LP 5.875% 11/15/15 |
|
1,621,000 |
1,681,159 |
|
|
TOTAL NONCONVERTIBLE BONDS |
170,198,018 |
|||
|
TOTAL CORPORATE BONDS (Cost $206,015,251) |
|
|||
|
Asset-Backed Securities - 2.1% |
||||
|
|
||||
|
American Homes 4 Rent Series 2014-SFR3 Class E, 6.418% 12/17/36 (c) |
|
1,657,000 |
1,761,322 |
|
|
Conseco Finance Securitizations Corp.: |
|
|
|
|
|
Series 2002-1 Class M2, 9.546% 12/1/33 |
|
1,216,000 |
1,157,924 |
|
|
Series 2002-2 Class M2, 9.163% 3/1/33 |
|
2,026,000 |
1,715,873 |
|
|
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 |
|
1,215,010 |
1,187,665 |
|
|
Invitation Homes Trust: |
|
|
|
|
|
Series 2013-SFR1 Class F, 3.9% 12/17/30 (c)(d) |
|
1,750,000 |
1,722,343 |
|
|
Series 2014-SFR1 Class F, 3.918% 6/17/31 (c)(d) |
|
756,000 |
745,482 |
|
|
Series 2014-SFR3: |
|
|
|
|
|
Class E, 4.662% 12/17/31 (c)(d) |
|
842,000 |
856,717 |
|
|
Class F, 5.162% 12/17/31 (c)(d) |
|
426,000 |
434,287 |
|
|
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 |
|
3,314,721 |
1,621,402 |
|
|
Mesa West Capital CDO Ltd. Series 2007-1A Class A2, 0.4583% 2/25/47 (c)(d) |
|
1,186,203 |
1,163,309 |
|
|
Asset-Backed Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
Residential Asset Securities Corp. Series 2003-KS10 Class MI3, 6.41% 12/25/33 |
|
$ 212,363 |
$ 119,567 |
|
|
Starwood Waypoint Residential Trust Series 2014-1 Class F, 4.7072% 1/17/32 (c)(d) |
|
780,000 |
785,150 |
|
|
Wachovia Ltd./Wachovia LLC: |
|
|
|
|
|
Series 2006-1 Class 1ML, 5.7546% 9/25/26 (c)(d) |
|
2,432,000 |
2,343,718 |
|
|
Series 2006-1A Class H, 1.9046% 9/25/26 (c)(d) |
|
2,470,622 |
2,439,739 |
|
|
TOTAL ASSET-BACKED SECURITIES (Cost $16,936,704) |
|
|||
|
Collateralized Mortgage Obligations - 0.5% |
||||
|
|
||||
|
Private Sponsor - 0.5% |
||||
|
FREMF Mortgage Trust: |
|
|
|
|
|
Series 2010-K6 Class B, 5.3577% 12/25/46 (c)(d) |
|
811,000 |
914,815 |
|
|
Series 2010-K7 Class B, 5.4347% 4/25/20 (c)(d) |
|
2,605,000 |
2,955,393 |
|
|
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (c) |
|
128,848 |
133,526 |
|
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $3,404,364) |
|
|||
|
Commercial Mortgage Securities - 19.1% |
||||
|
|
||||
|
Aventura Mall Trust Series 2013-AVM Class E, 3.7427% 12/5/32 (c)(d) |
|
2,000,000 |
2,000,916 |
|
|
Banc of America Commercial Mortgage Trust Series 2005-1 Class CJ, 5.2832% 11/10/42 (d) |
|
1,175,000 |
1,173,959 |
|
|
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4348% 3/11/39 (d) |
|
2,432,000 |
2,500,082 |
|
|
BLCP Hotel Trust: |
|
|
|
|
|
floater Series 2014-CLRN Class F, 3.2006% 8/15/29 (c)(d) |
|
500,000 |
473,845 |
|
|
Series 2014-CLMZ Class M, 5.8945% 8/15/29 (c)(d) |
|
2,327,000 |
2,299,904 |
|
|
Boca Hotel Portfolio Trust Series 2013-BOCA Class E, 3.9165% 8/15/26 (c)(d) |
|
1,500,000 |
1,501,692 |
|
|
Carefree Portfolio Trust floater: |
|
|
|
|
|
Series 2014-CARE Class E, 4.167% 11/15/19 (c)(d) |
|
777,000 |
777,957 |
|
|
Series 2014-CMZA Class MZA, 6.1435% 11/15/19 (c)(d) |
|
1,618,000 |
1,620,986 |
|
|
Chase Commercial Mortgage Securities Corp. Series 1998-1 Class H, 6.34% 5/18/30 (c) |
|
1,621,000 |
1,738,535 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
Citigroup Commercial Mortgage Trust Series 2013-GC15 Class D, 5.1061% 9/10/46 (c)(d) |
|
$ 2,000,000 |
$ 2,032,128 |
|
|
COMM Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (c) |
|
2,000,000 |
1,642,316 |
|
|
Series 2013-CR10 Class D, 4.958% 8/10/46 (c)(d) |
|
1,300,000 |
1,294,666 |
|
|
Series 2013-CR12 Class D, 5.0853% 10/10/46 (c)(d) |
|
2,900,000 |
2,974,089 |
|
|
Series 2013-CR9 Class D, 4.2592% 7/10/45 (c)(d) |
|
2,397,000 |
2,325,088 |
|
|
Series 2013-LC6 Class D, 4.2879% 1/10/46 (c)(d) |
|
1,912,000 |
1,868,315 |
|
|
Series 2014-UBS2 Class D, 5.0157% 3/10/47 (c)(d) |
|
537,000 |
530,189 |
|
|
COMM Mortgage Trust pass-thru certificates Series 2005-LP5 Class F, 5.2774% 5/10/43 (c)(d) |
|
2,000,000 |
2,047,204 |
|
|
Commercial Mortgage Acceptance Corp. Series 1998-C2 Class J, 5.44% 9/15/30 (c) |
|
1,387,727 |
1,339,373 |
|
|
Commercial Mortgage Trust pass-thru certificates: |
|
|
|
|
|
Series 2005-C6 Class AJ, 5.209% 6/10/44 (d) |
|
2,000,000 |
2,035,564 |
|
|
Series 2012-CR1: |
|
|
|
|
|
Class C, 5.3596% 5/15/45 (d) |
|
3,000,000 |
3,405,768 |
|
|
Class D, 5.3596% 5/15/45 (c)(d) |
|
1,350,000 |
1,450,116 |
|
|
Series 2012-CR2 Class D, 4.8575% 8/15/45 (c)(d) |
|
500,000 |
544,345 |
|
|
Series 2012-LC4: |
|
|
|
|
|
Class C, 5.6468% 12/10/44 (d) |
|
780,000 |
893,743 |
|
|
Class D, 5.6468% 12/10/44 (c)(d) |
|
2,830,000 |
3,097,964 |
|
|
Credit Suisse First Boston Mortgage Securities Corp. Series 1998-C2 Class F, 6.75% 11/15/30 (c) |
|
508,834 |
526,094 |
|
|
DBUBS Mortgage Trust Series 2011-LC1A: |
|
|
|
|
|
Class E, 5.5573% 11/10/46 (c)(d) |
|
2,450,000 |
2,727,989 |
|
|
Class G, 4.652% 11/10/46 (c) |
|
2,157,000 |
1,913,253 |
|
|
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 |
|
6,074 |
6,069 |
|
|
Extended Stay America Trust Series 2013-ESH7 Class C7, 3.9017% 12/5/31 (c) |
|
2,000,000 |
2,074,806 |
|
|
Freddie Mac pass-thru certificates: |
|
|
|
|
|
Series K011 Class X3, 2.5752% 12/25/43 (d)(e) |
|
4,947,000 |
653,598 |
|
|
Series K012 Class X3, 2.288% 1/25/41 (d)(e) |
|
2,846,999 |
336,769 |
|
|
Series K013 Class X3, 2.8068% 1/25/43 (d)(e) |
|
4,806,000 |
703,445 |
|
|
GCCFC Commercial Mortgage Trust Series 2005-GG3 Class B, 4.894% 8/10/42 (d) |
|
547,767 |
547,884 |
|
|
GMAC Commercial Mortgage Securities, Inc. Series 1997-C2 Class G, 6.75% 4/15/29 (d) |
|
556,041 |
598,057 |
|
|
GP Portfolio Trust Series 2014-GPP Class E, 4.017% 2/15/27 (c)(d) |
|
615,000 |
612,223 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
GS Mortgage Securities Trust: |
|
|
|
|
|
Series 2010-C2 Class D, 5.2225% 12/10/43 (c)(d) |
|
$ 2,000,000 |
$ 2,157,414 |
|
|
Series 2012-GC6 Class C, 5.6379% 1/10/45 (c)(d) |
|
2,400,000 |
2,745,925 |
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class C, 5.7228% 5/10/45 (d) |
|
3,500,000 |
4,011,397 |
|
|
Class D, 5.7228% 5/10/45 (c)(d) |
|
2,500,000 |
2,697,315 |
|
|
Class E, 5% 5/10/45 (c) |
|
1,760,000 |
1,670,368 |
|
|
Series 2012-GCJ9 Class D, 4.858% 11/10/45 (c)(d) |
|
843,000 |
857,524 |
|
|
Series 2013-GC16: |
|
|
|
|
|
Class D, 5.323% 11/10/46 (c)(d) |
|
3,250,000 |
3,349,853 |
|
|
Class F, 3.5% 11/10/46 (c) |
|
1,428,000 |
1,120,059 |
|
|
Hilton U.S.A. Trust: |
|
|
|
|
|
floater Series 2014-ORL Class E, 3.4108% 7/15/29 (c)(d) |
|
639,000 |
623,175 |
|
|
Series 2013-HLT Class EFX, 5.2216% 11/5/30 (c)(d) |
|
4,250,000 |
4,364,857 |
|
|
Invitation Homes Trust floater Series 2013-SFR1 Class E, 2.9% 12/17/30 (c)(d) |
|
1,500,000 |
1,449,049 |
|
|
JPMorgan Chase Commercial Mortgage Securities Corp.: |
|
|
|
|
|
Series 2003-C1 Class F, 5.6564% 1/12/37 (c)(d) |
|
756,000 |
763,731 |
|
|
Series 2009-IWST Class D, 7.4453% 12/5/27 (c)(d) |
|
2,779,000 |
3,382,110 |
|
|
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (c) |
|
2,620,000 |
2,784,707 |
|
|
Series 2010-CNTR Class D, 6.1838% 8/5/32 (c)(d) |
|
1,216,000 |
1,415,170 |
|
|
Series 2012-CBX: |
|
|
|
|
|
Class C, 5.2402% 6/15/45 (d) |
|
1,240,000 |
1,383,659 |
|
|
Class G 4% 6/15/45 (c) |
|
805,000 |
622,579 |
|
|
JPMorgan Chase Commercial Mortgage Securities Trust: |
|
|
|
|
|
floater: |
|
|
|
|
|
Series 2013-JWRZ Class E, 3.9065% 4/15/30 (c)(d) |
|
1,280,000 |
1,281,176 |
|
|
Series 2014-FBLU Class E, 3.661% 12/15/28 (c)(d) |
|
2,000,000 |
1,997,176 |
|
|
Series 2014-INN: |
|
|
|
|
|
Class E, 3.767% 6/15/29 (c)(d) |
|
1,059,000 |
1,060,433 |
|
|
Class F, 4.167% 6/15/29 (c)(d) |
|
1,255,000 |
1,259,243 |
|
|
Series 2005-LDP2 Class C, 4.911% 7/15/42 (d) |
|
4,000,000 |
4,022,864 |
|
|
Series 2011-C4 Class E, 5.3968% 7/15/46 (c)(d) |
|
1,390,000 |
1,532,133 |
|
|
LB-UBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2005-C3 Class AJ, 4.843% 7/15/40 |
|
4,760,000 |
4,793,515 |
|
|
Series 2005-C7 Class AJ, 5.323% 11/15/40 (d) |
|
1,240,000 |
1,270,490 |
|
|
Series 2005-C1 Class E, 4.924% 2/15/40 |
|
1,000,000 |
1,001,969 |
|
|
Series 2006-C4 Class AJ, 5.8531% 6/15/38 (d) |
|
2,511,000 |
2,612,540 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
LSTAR Commercial Mortgage Trust Series 2011-1 Class D, 5.3544% 6/25/43 (c)(d) |
|
$ 1,564,000 |
$ 1,585,626 |
|
|
Mach One Trust LLC Series 2004-1A Class H, 6.2229% 5/28/40 (c)(d) |
|
540,000 |
545,400 |
|
|
Mezz Capital Commercial Mortgage Trust sequential payer Series 2004-C2 Class A, 5.318% 10/15/40 (c) |
|
819 |
819 |
|
|
Morgan Stanley BAML Trust: |
|
|
|
|
|
Series 2012-C6 Class D, 4.6617% 11/15/45 (c)(d) |
|
2,000,000 |
2,110,712 |
|
|
Series 2013-C12 Class D, 4.7686% 10/15/46 (c)(d) |
|
1,500,000 |
1,489,503 |
|
|
Series 2013-C13 Class D, 4.8954% 11/15/46 (c)(d) |
|
2,500,000 |
2,495,323 |
|
|
Series 2013-C7 Class E, 4.3017% 2/15/46 (c)(d) |
|
1,490,000 |
1,328,518 |
|
|
Morgan Stanley Capital I Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2006-HQ10 Class AM, 5.36% 11/12/41 |
|
3,769,000 |
4,011,648 |
|
|
Series 2012-C4 Class E, 5.525% 3/15/45 (c)(d) |
|
2,250,000 |
2,422,280 |
|
|
Series 1997-RR Class F, 7.4345% 4/30/39 (c)(d) |
|
180,227 |
180,678 |
|
|
Series 1998-CF1 Class G, 7.35% 7/15/32 (c) |
|
1,799,550 |
1,766,052 |
|
|
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 |
|
3,242,000 |
3,453,972 |
|
|
Series 2011-C1 Class C, 5.2512% 9/15/47 (c)(d) |
|
2,000,000 |
2,253,046 |
|
|
Series 2011-C2: |
|
|
|
|
|
Class D, 5.304% 6/15/44 (c)(d) |
|
1,532,000 |
1,694,340 |
|
|
Class E, 5.304% 6/15/44 (c)(d) |
|
1,946,000 |
2,092,034 |
|
|
Class F, 5.304% 6/15/44 (c)(d) |
|
1,467,000 |
1,433,187 |
|
|
Class XB, 0.4589% 6/15/44 (c)(d)(e) |
|
51,641,000 |
1,454,417 |
|
|
Series 2011-C3 Class C, 5.1828% 7/15/49 (c)(d) |
|
2,000,000 |
2,222,734 |
|
|
Series 2012-C4 Class D, 5.525% 3/15/45 (c)(d) |
|
1,640,000 |
1,822,342 |
|
|
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (c) |
|
1,209,728 |
1,570,227 |
|
|
RBSCF Trust Series 2010-MB1 Class D, 5.1367% 4/15/24 (c)(d) |
|
2,687,000 |
2,693,599 |
|
|
SCG Trust Series 2013-SRP1 Class D, 3.4999% 11/15/26 (c)(d) |
|
1,000,000 |
978,494 |
|
|
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (c) |
|
2,026,000 |
2,117,506 |
|
|
UBS Commercial Mortgage Trust Series 2012-C1 Class D, 5.5426% 5/10/45 (c)(d) |
|
645,000 |
689,277 |
|
|
UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (c)(d) |
|
1,460,000 |
1,461,321 |
|
|
Wachovia Bank Commercial Mortgage Trust Series 2004-C12 Class D, 5.4173% 7/15/41 (d) |
|
615,613 |
616,227 |
|
|
WF-RBS Commercial Mortgage Trust: |
|
|
|
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.335% 3/15/44 (c) |
|
2,100,000 |
2,349,551 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
WF-RBS Commercial Mortgage Trust: - continued |
|
|
|
|
|
Series 2011-C3: |
|
|
|
|
|
Class D, 5.5496% 3/15/44 (c)(d) |
|
$ 1,000,000 |
$ 1,099,016 |
|
|
Series 2011-C5: |
|
|
|
|
|
Class C, 5.6349% 11/15/44 (c)(d) |
|
1,250,000 |
1,435,220 |
|
|
Class F, 5.25% 11/15/44 (c)(d) |
|
2,000,000 |
1,893,542 |
|
|
Class G, 5.25% 11/15/44 (c)(d) |
|
1,000,000 |
887,100 |
|
|
Series 2012-C10 Class E, 4.4581% 12/15/45 (c)(d) |
|
910,000 |
805,658 |
|
|
Series 2012-C7 Class D, 4.8452% 6/15/45 (c)(d) |
|
620,000 |
668,278 |
|
|
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $144,020,429) |
|
|||
|
Bank Loan Obligations - 7.6% |
||||
|
|
||||
|
CONSUMER DISCRETIONARY - 2.4% |
||||
|
Hotels, Restaurants & Leisure - 1.7% |
||||
|
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (d) |
|
3,217,500 |
3,068,691 |
|
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (d) |
|
1,547,225 |
1,427,315 |
|
|
CityCenter Holdings LLC Tranche B, term loan 4.25% 10/16/20 (d) |
|
825,067 |
819,952 |
|
|
Cooper Hotel Group 12% 11/6/17 |
|
2,317,699 |
2,433,584 |
|
|
Four Seasons Holdings, Inc. Tranche 2LN, term loan 6.25% 12/27/20 (d) |
|
405,000 |
403,988 |
|
|
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (d) |
|
4,001,462 |
3,961,447 |
|
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (d) |
|
2,200,588 |
2,184,084 |
|
|
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (d) |
|
238,791 |
234,911 |
|
|
|
14,533,972 |
|||
|
Media - 0.2% |
||||
|
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (d) |
|
1,705,000 |
1,675,163 |
|
|
Multiline Retail - 0.3% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (d) |
|
2,602,981 |
2,573,697 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount |
Value |
||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Specialty Retail - 0.2% |
||||
|
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 4.25% 10/11/18 (d) |
|
$ 1,332,800 |
$ 1,319,472 |
|
|
TOTAL CONSUMER DISCRETIONARY |
20,102,304 |
|||
|
CONSUMER STAPLES - 0.1% |
||||
|
Food & Staples Retailing - 0.1% |
||||
|
Albertson's LLC Tranche B 3LN, term loan 4% 8/25/19 (d) |
|
1,275,000 |
1,267,031 |
|
|
ENERGY - 0.1% |
||||
|
Oil, Gas & Consumable Fuels - 0.1% |
||||
|
TPF II Power, LLC Tranche B, term loan 5.5% 10/2/21 (d) |
|
845,000 |
847,113 |
|
|
FINANCIALS - 2.4% |
||||
|
Diversified Financial Services - 0.8% |
||||
|
Blackstone 9.98% 10/1/17 |
|
7,324,206 |
7,324,207 |
|
|
Real Estate Investment Trusts - 0.3% |
||||
|
Starwood Property Trust, Inc. Tranche B, term loan 3.5% 4/17/20 (d) |
|
2,462,406 |
2,397,768 |
|
|
Real Estate Management & Development - 0.8% |
||||
|
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (d) |
|
76,461 |
75,122 |
|
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (d) |
|
6,893,657 |
6,790,252 |
|
|
|
6,865,374 |
|||
|
Thrifts & Mortgage Finance - 0.5% |
||||
|
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (d) |
|
4,318,669 |
4,021,761 |
|
|
TOTAL FINANCIALS |
20,609,110 |
|||
|
HEALTH CARE - 0.6% |
||||
|
Health Care Providers & Services - 0.6% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
Tranche D, term loan 4.25% 1/27/21 (d) |
|
282,925 |
282,925 |
|
|
Tranche E, term loan 3.4856% 1/25/17 (d) |
|
106,150 |
105,619 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount |
Value |
||
|
HEALTH CARE - continued |
||||
|
Health Care Providers & Services - continued |
||||
|
ESH Hospitality, Inc. Tranche B, term loan 5% 6/24/19 (d) |
|
$ 2,140,000 |
$ 2,148,025 |
|
|
Skilled Healthcare Group, Inc. term loan 7.1398% 4/9/16 (d) |
|
2,179,181 |
2,173,734 |
|
|
|
4,710,303 |
|||
|
INDUSTRIALS - 0.6% |
||||
|
Commercial Services & Supplies - 0.2% |
||||
|
Pilot Travel Centers LLC Tranche B, term loan 4.25% 10/3/21 (d) |
|
1,995,000 |
1,997,594 |
|
|
Construction & Engineering - 0.4% |
||||
|
Drumm Investors LLC Tranche B, term loan 6.75% 5/4/18 (d) |
|
3,076,191 |
3,076,191 |
|
|
TOTAL INDUSTRIALS |
5,073,785 |
|||
|
TELECOMMUNICATION SERVICES - 0.5% |
||||
|
Wireless Telecommunication Services - 0.5% |
||||
|
Crown Castle Operating Co. Tranche B 2LN, term loan 3% 1/31/21 (d) |
|
1,946,491 |
1,912,992 |
|
|
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (d) |
|
2,402,925 |
2,363,877 |
|
|
|
4,276,869 |
|||
|
UTILITIES - 0.9% |
||||
|
Electric Utilities - 0.6% |
||||
|
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (d) |
|
989,979 |
963,992 |
|
|
EquiPower Resources Holdings LLC Tranche C, term loan 4.25% 12/31/19 (d) |
|
1,022,036 |
1,016,926 |
|
|
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (d) |
|
989,630 |
977,260 |
|
|
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (d) |
|
1,709,130 |
1,674,948 |
|
|
Southeast Powergen LLC Tranche B, term loan 4.5% 12/2/21 (d) |
|
535,000 |
532,325 |
|
|
|
5,165,451 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount |
Value |
||
|
UTILITIES - continued |
||||
|
Independent Power Producers & Renewable Electricity Producers - 0.3% |
||||
|
Calpine Corp. Tranche B 4LN, term loan 4% 10/31/20 (d) |
|
$ 1,980,000 |
$ 1,960,200 |
|
|
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (d) |
|
989,950 |
900,854 |
|
|
|
2,861,054 |
|||
|
TOTAL UTILITIES |
8,026,505 |
|||
|
TOTAL BANK LOAN OBLIGATIONS (Cost $65,495,917) |
|
|||
|
Money Market Funds - 3.8% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
32,036,918 |
|
|
|
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $769,353,527) |
845,538,458 |
||
|
NET OTHER ASSETS (LIABILITIES) - 0.5% |
4,448,837 |
||
|
NET ASSETS - 100% |
$ 849,987,295 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $171,105,215 or 20.1% of net assets. |
|
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(e) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 23,513 |
|
Fidelity Securities Lending Cash Central Fund |
834 |
|
Total |
$ 24,347 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 2,288,423 |
$ 2,288,423 |
$ - |
$ - |
|
Financials |
346,816,787 |
338,861,255 |
7,955,532 |
- |
|
Corporate Bonds |
215,298,069 |
- |
215,298,069 |
- |
|
Asset-Backed Securities |
18,054,498 |
- |
18,054,498 |
- |
|
Collateralized Mortgage Obligations |
4,003,734 |
- |
4,003,734 |
- |
|
Commercial Mortgage Securities |
162,127,009 |
- |
162,127,009 |
- |
|
Bank Loan Obligations |
64,913,020 |
- |
62,000,326 |
2,912,694 |
|
Money Market Funds |
32,036,918 |
32,036,918 |
- |
- |
|
Total Investments in Securities: |
$ 845,538,458 |
$ 373,186,596 |
$ 469,439,168 |
$ 2,912,694 |
|
Valuation Inputs at Reporting Date: |
|
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
|
Investments in Securities: |
|
|
Other Investments in Securities |
|
|
Beginning Balance |
$ 2,707,064 |
|
Net Realized Gain (Loss) on Investment Securities |
(1,054,855) |
|
Net Unrealized Gain (Loss) on Investment Securities |
1,127,015 |
|
Cost of Purchases |
- |
|
Proceeds of Sales |
(21,064) |
|
Amortization/Accretion |
(51,096) |
|
Transfers into Level 3 |
- |
|
Transfers out of Level 3 |
(2,707,064) |
|
Ending Balance |
$ - |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ - |
|
Bank Loan Obligations |
|
|
Beginning Balance |
$ 12,296,701 |
|
Net Realized Gain (Loss) on Investment Securities |
1,012 |
|
Net Unrealized Gain (Loss) on Investment Securities |
8,336 |
|
Cost of Purchases |
305,381 |
|
Proceeds of Sales |
(2,282,582) |
|
Amortization/Accretion |
(12,724) |
|
Transfers into Level 3 |
116,923 |
|
Transfers out of Level 3 |
(7,520,353) |
|
Ending Balance |
$ 2,912,694 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ 8,336 |
|
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
|
Other Information |
|
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
|
U.S. Government and U.S. Government Agency Obligations |
0.6% |
|
AAA,AA,A |
5.4% |
|
BBB |
14.0% |
|
BB |
11.4% |
|
B |
12.2% |
|
CCC,CC,C |
1.3% |
|
Not Rated |
9.7% |
|
Equities |
41.1% |
|
Short-Term Investments and Net Other Assets |
4.3% |
|
|
100.0% |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
|
January 31, 2015 (Unaudited) |
|
|
Assets |
|
|
|
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $737,316,609) |
$ 813,501,540 |
|
|
Fidelity Central Funds (cost $32,036,918) |
32,036,918 |
|
|
Total Investments (cost $769,353,527) |
|
$ 845,538,458 |
|
Cash |
|
353,914 |
|
Receivable for fund shares sold |
|
377,801 |
|
Dividends receivable |
|
484,351 |
|
Interest receivable |
|
4,685,121 |
|
Distributions receivable from Fidelity Central Funds |
|
3,719 |
|
Prepaid expenses |
|
1,252 |
|
Other receivables |
|
2,788 |
|
Total assets |
|
851,447,404 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 670,776 |
|
|
Payable for fund shares redeemed |
267,005 |
|
|
Accrued management fee |
387,117 |
|
|
Other affiliated payables |
85,776 |
|
|
Other payables and accrued expenses |
49,435 |
|
|
Total liabilities |
|
1,460,109 |
|
|
|
|
|
Net Assets |
|
$ 849,987,295 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 769,353,479 |
|
Undistributed net investment income |
|
3,365,494 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
1,083,394 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
76,184,928 |
|
Net Assets |
|
$ 849,987,295 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2015 (Unaudited) |
|
|
Series Real Estate Income: |
|
$ 11.34 |
|
|
|
|
|
Class F: |
|
$ 11.34 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
|
Six months ended January 31, 2015 (Unaudited) |
||
|
Investment Income |
|
|
|
Dividends |
|
$ 10,032,313 |
|
Interest |
|
15,879,578 |
|
Income from Fidelity Central Funds |
|
24,347 |
|
Total income |
|
25,936,238 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 2,302,874 |
|
|
Transfer agent fees |
334,446 |
|
|
Accounting and security lending fees |
182,735 |
|
|
Custodian fees and expenses |
8,383 |
|
|
Independent trustees' compensation |
1,757 |
|
|
Audit |
41,857 |
|
|
Legal |
1,498 |
|
|
Miscellaneous |
2,615 |
|
|
Total expenses before reductions |
2,876,165 |
|
|
Expense reductions |
(1,600) |
2,874,565 |
|
Net investment income (loss) |
|
23,061,673 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
3,325,698 |
|
|
Foreign currency transactions |
(728) |
|
|
Total net realized gain (loss) |
|
3,324,970 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
14,142,248 |
|
|
Assets and liabilities in foreign currencies |
2 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
14,142,250 |
|
Net gain (loss) |
|
17,467,220 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 40,528,893 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 23,061,673 |
$ 42,642,966 |
|
Net realized gain (loss) |
3,324,970 |
24,118,024 |
|
Change in net unrealized appreciation (depreciation) |
14,142,250 |
(161,306) |
|
Net increase (decrease) in net assets resulting |
40,528,893 |
66,599,684 |
|
Distributions to shareholders from net investment income |
(28,801,194) |
(42,834,154) |
|
Distributions to shareholders from net realized gain |
(20,829,892) |
(17,262,908) |
|
Total distributions |
(49,631,086) |
(60,097,062) |
|
Share transactions - net increase (decrease) |
30,093,675 |
15,810,740 |
|
Total increase (decrease) in net assets |
20,991,482 |
22,313,362 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
828,995,813 |
806,682,451 |
|
End of period (including undistributed net investment income of $3,365,494 and undistributed net investment income of $9,105,015, respectively) |
$ 849,987,295 |
$ 828,995,813 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Income
|
|
Six months ended |
Years ended July 31, |
||
|
|
(Unaudited) |
2014 |
2013 |
2012 G |
|
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period |
$ 11.47 |
$ 11.41 |
$ 11.10 |
$ 10.00 |
|
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D |
.31 |
.58 |
.67 |
.47 |
|
Net realized and unrealized gain (loss) |
.23 |
.31 |
.46 |
.97 |
|
Total from investment operations |
.54 |
.89 |
1.13 |
1.44 |
|
Distributions from net investment income |
(.39) |
(.59) |
(.66) |
(.33) |
|
Distributions from net realized gain |
(.29) |
(.24) |
(.16) |
(.01) |
|
Total distributions |
(.67) I |
(.83) |
(.82) |
(.34) |
|
Net asset value, end of period |
$ 11.34 |
$ 11.47 |
$ 11.41 |
$ 11.10 |
|
Total Return B, C |
4.94% |
8.33% |
10.50% |
14.67% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
Expenses before reductions |
.77% A |
.77% |
.79% |
.80% A |
|
Expenses net of fee waivers, if any |
.77% A |
.77% |
.79% |
.80% A |
|
Expenses net of all reductions |
.77% A |
.77% |
.79% |
.80% A |
|
Net investment income (loss) |
5.42% A |
5.15% |
5.85% |
5.70% A |
|
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 411,404 |
$ 409,084 |
$ 415,192 |
$ 416,151 |
|
Portfolio turnover rate F |
16% A |
33% |
25% |
29% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to July 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.67 per share is comprised of distributions from net investment income of $.386 and distributions from net realized gain of $.288 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
|
|
Six months ended |
Years ended July 31, |
||
|
|
(Unaudited) |
2014 |
2013 |
2012 G |
|
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period |
$ 11.48 |
$ 11.41 |
$ 11.11 |
$ 10.00 |
|
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D |
.31 |
.60 |
.69 |
.48 |
|
Net realized and unrealized gain (loss) |
.24 |
.32 |
.45 |
.98 |
|
Total from investment operations |
.55 |
.92 |
1.14 |
1.46 |
|
Distributions from net investment income |
(.40) |
(.60) |
(.68) |
(.34) |
|
Distributions from net realized gain |
(.29) |
(.24) |
(.16) |
(.01) |
|
Total distributions |
(.69) |
(.85) I |
(.84) |
(.35) |
|
Net asset value, end of period |
$ 11.34 |
$ 11.48 |
$ 11.41 |
$ 11.11 |
|
Total Return B, C |
4.95% |
8.60% |
10.60% |
14.89% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
Expenses before reductions |
.61% A |
.61% |
.61% |
.62% A |
|
Expenses net of fee waivers, if any |
.61% A |
.61% |
.61% |
.62% A |
|
Expenses net of all reductions |
.61% A |
.61% |
.61% |
.62% A |
|
Net investment income (loss) |
5.59% A |
5.32% |
6.02% |
5.88% A |
|
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 438,583 |
$ 419,911 |
$ 391,490 |
$ 286,854 |
|
Portfolio turnover rate F |
16% A |
33% |
25% |
29% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to July 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.85 per share is comprised of distributions from net investment income of $.604 and distributions from net realized gain of $.242 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
1. Organization.
Fidelity® Series 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. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Series Real Estate Income and Class F 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), equity-debt classifications and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 84,176,398 |
|
Gross unrealized depreciation |
(8,023,349) |
|
Net unrealized appreciation (depreciation) on securities |
$ 76,153,049 |
|
|
|
|
Tax cost |
$ 769,385,409 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $80,245,287 and $62,692,755, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Real Estate Income. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
|
Amount |
% of |
|
Series Real Estate Income |
$ 334,446 |
.16 |
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $284 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $571 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is
Semiannual Report
7. Security Lending - continued
presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $834. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,247 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 $337.
In addition, the investment adviser reimbursed certain Series Real Estate Income expenses during the period in the amount of $16.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Series Real Estate Income |
$ 13,807,418 |
$ 21,286,598 |
|
Class F |
14,993,776 |
21,547,556 |
|
Total |
$ 28,801,194 |
$ 42,834,154 |
|
From net realized gain |
|
|
|
Series Real Estate Income |
$ 10,207,221 |
$ 8,798,960 |
|
Class F |
10,622,671 |
8,463,948 |
|
Total |
$ 20,829,892 |
$ 17,262,908 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended January 31, |
Year ended |
|
Series Real Estate Income |
|
|
|
|
|
Shares sold |
922,359 |
5,096,461 |
$ 10,413,452 |
$ 56,759,758 |
|
Reinvestment of distributions |
2,157,358 |
2,752,035 |
24,014,640 |
30,085,558 |
|
Shares redeemed |
(2,454,155) |
(8,601,530) |
(27,646,677) |
(95,963,309) |
|
Net increase (decrease) |
625,562 |
(753,034) |
$ 6,781,415 |
$ (9,117,993) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended January 31, |
Year ended |
|
Class F |
|
|
|
|
|
Shares sold |
2,283,321 |
7,066,532 |
$ 25,759,675 |
$ 79,103,585 |
|
Reinvestment of distributions |
2,301,458 |
2,743,696 |
25,616,447 |
30,011,504 |
|
Shares redeemed |
(2,501,109) |
(7,540,879) |
(28,063,862) |
(84,186,356) |
|
Net increase (decrease) |
2,083,670 |
2,269,349 |
$ 23,312,260 |
$ 24,928,733 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SRE-SANN-0315 1.924313.103
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Class A, Class T, and Class C
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Class A, Class T, and
Class C are classes of Fidelity® Real Estate Income Fund
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
|
|
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Class A |
1.04% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.10 |
$ 5.38 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.96 |
$ 5.30 |
|
Class T |
1.07% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.90 |
$ 5.54 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.81 |
$ 5.45 |
|
Class C |
1.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.18 |
$ 9.10 |
|
Real Estate Income |
.82% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.10 |
$ 4.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.07 |
$ 4.18 |
|
Institutional Class |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.70 |
$ 4.04 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.27 |
$ 3.97 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Five Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Equity Lifestyle Properties, Inc. |
3.0 |
2.7 |
|
Acadia Realty Trust (SBI) |
2.9 |
2.4 |
|
MFA Financial, Inc. |
2.9 |
3.2 |
|
Ventas, Inc. |
1.4 |
1.6 |
|
WP Carey, Inc. |
1.1 |
0.9 |
|
|
11.3 |
|
|
Top 5 Bonds as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 |
0.9 |
0.9 |
|
Annaly Capital Management, Inc. 5% 5/15/15 |
0.7 |
0.8 |
|
IAS Operating Partnership LP 5% 3/15/18 |
0.7 |
0.6 |
|
Standard Pacific Corp. 8.375% 5/15/18 |
0.7 |
0.8 |
|
iStar Financial, Inc. 5.875% 3/15/16 |
0.6 |
0.7 |
|
|
3.6 |
|
|
Top Five REIT Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
REITs - Mortgage |
17.2 |
17.3 |
|
REITs - Shopping Centers |
7.2 |
6.3 |
|
REITs - Health Care |
7.0 |
6.9 |
|
REITs - Management/Investment |
5.6 |
9.0 |
|
REITs - Apartments |
4.8 |
4.9 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
 |
Common Stocks 30.8% |
|
|
Common Stocks 31.4% |
|
||
 |
Preferred Stocks 17.6% |
|
|
Preferred Stocks 16.7% |
|
||
 |
Bonds 30.7% |
|
|
Bonds 32.8% |
|
||
 |
Convertible |
|
|
Convertible |
|
||
 |
Other Investments 7.9% |
|
|
Other Investments 7.8% |
|
||
 |
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
1.3% |
|
** Foreign investments |
2.6% |
|
||
Semiannual Report
Investments January 31, 2015
Showing Percentage of Net Assets
|
Common Stocks - 30.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 0.2% |
|||
|
Household Durables - 0.2% |
|||
|
Stanley Martin Communities LLC Class B (a)(k) |
4,620 |
$ 7,174,629 |
|
|
FINANCIALS - 30.6% |
|||
|
Capital Markets - 0.5% |
|||
|
Ellington Financial LLC |
1,114,700 |
23,352,965 |
|
|
Real Estate Investment Trusts - 29.4% |
|||
|
Acadia Realty Trust (SBI) (g) |
3,700,949 |
133,937,344 |
|
|
AG Mortgage Investment Trust, Inc. |
781,700 |
14,375,463 |
|
|
American Realty Capital Properties, Inc. |
785,434 |
7,277,046 |
|
|
American Tower Corp. |
171,300 |
16,607,535 |
|
|
Annaly Capital Management, Inc. |
1,193,000 |
12,598,080 |
|
|
Anworth Mortgage Asset Corp. |
1,572,210 |
8,159,770 |
|
|
Apartment Investment & Management Co. Class A |
1,195,700 |
47,660,602 |
|
|
Arbor Realty Trust, Inc. (g) |
3,068,975 |
21,329,376 |
|
|
AvalonBay Communities, Inc. |
149,500 |
25,862,005 |
|
|
Boardwalk (REIT) |
136,200 |
6,573,657 |
|
|
CBL & Associates Properties, Inc. |
2,180,373 |
44,959,291 |
|
|
Cedar Shopping Centers, Inc. |
830,510 |
6,610,860 |
|
|
Chambers Street Properties |
1,349,993 |
11,407,441 |
|
|
CYS Investments, Inc. |
2,094,739 |
18,517,493 |
|
|
Douglas Emmett, Inc. |
564,100 |
16,065,568 |
|
|
Dynex Capital, Inc. |
2,039,943 |
17,074,323 |
|
|
EastGroup Properties, Inc. |
81,700 |
5,281,088 |
|
|
Ellington Residential Mortgage REIT |
260,000 |
4,269,200 |
|
|
Equity Lifestyle Properties, Inc. |
2,555,260 |
139,849,378 |
|
|
Equity Residential (SBI) |
304,200 |
23,608,962 |
|
|
Excel Trust, Inc. |
2,133,328 |
29,951,925 |
|
|
Extra Space Storage, Inc. |
230,700 |
15,226,200 |
|
|
First Potomac Realty Trust |
1,381,615 |
17,684,672 |
|
|
Five Oaks Investment Corp. |
479,100 |
5,241,354 |
|
|
H&R REIT/H&R Finance Trust |
375,100 |
7,208,580 |
|
|
Hatteras Financial Corp. |
787,600 |
14,318,568 |
|
|
Lexington Corporate Properties Trust |
4,251,582 |
48,510,551 |
|
|
LTC Properties, Inc. |
386,713 |
18,144,574 |
|
|
MFA Financial, Inc. |
16,938,293 |
132,796,217 |
|
|
Mid-America Apartment Communities, Inc. |
600,300 |
47,615,796 |
|
|
Monmouth Real Estate Investment Corp. Class A |
950,073 |
11,220,362 |
|
|
National Retail Properties, Inc. |
244,200 |
10,461,528 |
|
|
New Senior Investment Group, Inc. |
1,476,243 |
24,417,059 |
|
|
Newcastle Investment Corp. |
1,447,930 |
6,414,330 |
|
|
NorthStar Realty Finance Corp. |
240,300 |
4,544,073 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Piedmont Office Realty Trust, Inc. Class A |
551,300 |
$ 10,766,889 |
|
|
Potlatch Corp. |
434,400 |
17,315,184 |
|
|
Prologis, Inc. |
371,987 |
16,791,493 |
|
|
Redwood Trust, Inc. (f) |
160,900 |
3,206,737 |
|
|
Sabra Health Care REIT, Inc. |
319,000 |
10,431,300 |
|
|
Select Income (REIT) |
473,800 |
11,783,406 |
|
|
Senior Housing Properties Trust (SBI) |
2,048,800 |
47,716,552 |
|
|
Simon Property Group, Inc. |
161,500 |
32,083,590 |
|
|
Store Capital Corp. |
484,300 |
11,119,528 |
|
|
Terreno Realty Corp. |
1,728,064 |
39,399,859 |
|
|
Two Harbors Investment Corp. |
1,821,280 |
18,795,610 |
|
|
Ventas, Inc. |
808,246 |
64,506,113 |
|
|
Washington REIT (SBI) |
224,300 |
6,439,653 |
|
|
Weyerhaeuser Co. |
704,500 |
25,256,325 |
|
|
WP Carey, Inc. |
678,500 |
48,723,085 |
|
|
WP Glimcher, Inc. |
997,963 |
17,643,986 |
|
|
|
1,357,759,581 |
||
|
Real Estate Management & Development - 0.7% |
|||
|
Brookfield Asset Management, Inc. Class A |
257,600 |
13,126,308 |
|
|
Kennedy-Wilson Holdings, Inc. |
664,021 |
17,656,318 |
|
|
|
30,782,626 |
||
|
TOTAL FINANCIALS |
1,411,895,172 |
||
|
TOTAL COMMON STOCKS (Cost $1,154,404,476) |
|
||
|
Preferred Stocks - 18.6% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 1.0% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Household Durables - 0.1% |
|||
|
William Lyon Homes, Inc. 6.50% |
50,000 |
5,187,500 |
|
|
FINANCIALS - 0.9% |
|||
|
Real Estate Investment Trusts - 0.9% |
|||
|
Alexandria Real Estate Equities, Inc. Series D 7.00% |
195,000 |
5,685,459 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Convertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Equity Commonwealth 6.50% (a) |
1,900 |
$ 46,227 |
|
|
Excel Trust, Inc. 7.00% (a)(h) |
248,200 |
6,701,400 |
|
|
Health Care REIT, Inc. Series I, 6.50% (a) |
46,800 |
3,334,500 |
|
|
Lexington Corporate Properties Trust Series C, 6.50% (a) |
468,742 |
22,895,141 |
|
|
|
38,662,727 |
||
|
TOTAL CONVERTIBLE PREFERRED STOCKS |
43,850,227 |
||
|
Nonconvertible Preferred Stocks - 17.6% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Hotels, Restaurants & Leisure - 0.1% |
|||
|
Red Lion Hotels Capital Trust 9.50% |
128,353 |
3,325,626 |
|
|
FINANCIALS - 17.5% |
|||
|
Capital Markets - 0.1% |
|||
|
Arlington Asset Investment Corp. 6.625% |
182,517 |
4,489,918 |
|
|
Real Estate Investment Trusts - 17.2% |
|||
|
AG Mortgage Investment Trust, Inc.: |
|
|
|
|
8.00% |
532,287 |
13,142,166 |
|
|
8.25% |
29,309 |
742,690 |
|
|
Alexandria Real Estate Equities, Inc. Series E, 6.45% |
145,913 |
3,820,002 |
|
|
American Capital Agency Corp.: |
|
|
|
|
8.00% |
200,000 |
5,338,000 |
|
|
Series B, 7.75% |
360,200 |
9,077,040 |
|
|
American Capital Mortgage Investment Corp. Series A, 8.125% |
248,636 |
6,260,654 |
|
|
American Home Mortgage Investment Corp.: |
|
|
|
|
Series A, 9.75% (a) |
120,300 |
12 |
|
|
Series B, 9.25% (a) |
124,100 |
12 |
|
|
American Homes 4 Rent: |
|
|
|
|
Series A, 5.00% |
425,887 |
10,762,164 |
|
|
Series B, 5.00% |
237,005 |
5,996,227 |
|
|
Series C, 5.50% |
733,281 |
18,434,684 |
|
|
American Realty Capital Properties, Inc. Series F, 6.70% |
1,353,701 |
31,229,882 |
|
|
Annaly Capital Management, Inc.: |
|
|
|
|
Series A, 7.875% |
134,900 |
3,502,004 |
|
|
Series C, 7.625% |
289,533 |
7,342,557 |
|
|
Series D, 7.50% |
621,976 |
15,785,751 |
|
|
Anworth Mortgage Asset Corp. Series A, 8.625% |
309,630 |
7,867,698 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% |
375,101 |
$ 9,842,650 |
|
|
Apollo Residential Mortgage, Inc. Series A, 8.00% |
279,276 |
6,928,838 |
|
|
Arbor Realty Trust, Inc.: |
|
|
|
|
7.375% (g) |
430,605 |
10,790,961 |
|
|
Series A, 8.25% (g) |
189,089 |
4,765,043 |
|
|
Series B, 7.75% (g) |
240,000 |
5,891,760 |
|
|
Series C, 8.50% (g) |
100,000 |
2,557,000 |
|
|
Armour Residential REIT, Inc. Series B, 7.875% |
153,654 |
3,710,744 |
|
|
Ashford Hospitality Trust, Inc.: |
|
|
|
|
Series D, 8.45% |
47,000 |
1,208,840 |
|
|
Series E, 9.00% |
140,751 |
3,729,902 |
|
|
Boston Properties, Inc. 5.25% |
10,915 |
272,438 |
|
|
Brandywine Realty Trust Series E, 6.90% |
95,000 |
2,585,900 |
|
|
Campus Crest Communities, Inc. Series A, 8.00% |
256,817 |
6,708,060 |
|
|
Capstead Mortgage Corp. Series E, 7.50% |
202,984 |
5,090,839 |
|
|
CBL & Associates Properties, Inc.: |
|
|
|
|
Series D, 7.375% |
289,876 |
7,478,801 |
|
|
Series E, 6.625% |
222,063 |
5,840,257 |
|
|
Cedar Shopping Centers, Inc. Series B, 7.25% |
399,750 |
10,473,450 |
|
|
Chesapeake Lodging Trust Series A, 7.75% |
266,916 |
7,260,115 |
|
|
Colony Financial, Inc.: |
|
|
|
|
Series A, 8.50% |
283,920 |
7,523,880 |
|
|
Series B, 7.50% |
86,432 |
2,205,745 |
|
|
Coresite Realty Corp. Series A, 7.25% |
369,799 |
9,707,224 |
|
|
Corporate Office Properties Trust Series L, 7.375% |
161,840 |
4,353,496 |
|
|
CubeSmart Series A, 7.75% |
40,000 |
1,092,400 |
|
|
CYS Investments, Inc.: |
|
|
|
|
Series A, 7.75% |
117,824 |
2,853,697 |
|
|
Series B, 7.50% |
446,667 |
10,519,008 |
|
|
DDR Corp.: |
|
|
|
|
Series J, 6.50% |
340,721 |
9,114,287 |
|
|
Series K, 6.25% |
228,888 |
6,017,466 |
|
|
Digital Realty Trust, Inc.: |
|
|
|
|
Series E, 7.00% |
219,819 |
5,708,699 |
|
|
Series G, 5.875% |
145,444 |
3,529,926 |
|
|
Series H, 7.375% |
50,000 |
1,361,000 |
|
|
DuPont Fabros Technology, Inc. Series B, 7.625% |
381,202 |
10,021,801 |
|
|
Dynex Capital, Inc.: |
|
|
|
|
Series A, 8.50% |
362,932 |
9,156,774 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Dynex Capital, Inc.: - continued |
|
|
|
|
Series B, 7.625% |
252,120 |
$ 6,113,910 |
|
|
Equity Commonwealth Series E, 7.25% |
648,952 |
16,684,556 |
|
|
Equity Lifestyle Properties, Inc. Series C, 6.75% |
950,148 |
24,675,344 |
|
|
Essex Property Trust, Inc. Series H, 7.125% |
40,000 |
1,066,800 |
|
|
Excel Trust, Inc. Series B, 8.125% |
400,000 |
10,876,000 |
|
|
First Potomac Realty Trust 7.75% |
415,296 |
10,901,520 |
|
|
Five Oaks Investment Corp. Series A, 8.75% |
100,000 |
2,530,000 |
|
|
General Growth Properties, Inc. Series A, 6.375% |
166,463 |
4,283,093 |
|
|
Gladstone Commercial Corp. Series C, 7.125% |
232,238 |
5,991,740 |
|
|
Hatteras Financial Corp. Series A, 7.625% |
514,725 |
12,482,081 |
|
|
Health Care REIT, Inc. Series J, 6.50% |
81,600 |
2,189,328 |
|
|
Hersha Hospitality Trust: |
|
|
|
|
Series B, 8.00% |
162,538 |
4,305,632 |
|
|
Series C, 6.875% |
50,000 |
1,325,000 |
|
|
Hospitality Properties Trust Series D, 7.125% |
40,800 |
1,097,112 |
|
|
Hudson Pacific Properties, Inc. 8.375% |
394,069 |
10,541,346 |
|
|
Inland Real Estate Corp.: |
|
|
|
|
Series A, 8.125% |
423,500 |
11,328,625 |
|
|
Series B, 6.95% |
245,000 |
6,374,900 |
|
|
Invesco Mortgage Capital, Inc.: |
|
|
|
|
Series A, 7.75% |
123,342 |
3,081,083 |
|
|
Series B, 7.75% |
496,477 |
12,233,193 |
|
|
Investors Real Estate Trust Series B, 7.95% |
126,572 |
3,363,018 |
|
|
iStar Financial, Inc.: |
|
|
|
|
Series E, 7.875% |
188,696 |
4,698,530 |
|
|
Series F, 7.80% |
418,693 |
10,341,717 |
|
|
Kilroy Realty Corp.: |
|
|
|
|
Series G, 6.875% |
46,760 |
1,297,590 |
|
|
Series H, 6.375% |
143,296 |
3,811,674 |
|
|
Kite Realty Group Trust 8.25% |
96,100 |
2,522,625 |
|
|
LaSalle Hotel Properties: |
|
|
|
|
Series H, 7.50% |
141,308 |
3,682,486 |
|
|
Series I, 6.375% |
354,698 |
9,246,977 |
|
|
LBA Realty Fund II: |
|
|
|
|
Series A, 8.75% (a) |
69,000 |
3,105,000 |
|
|
Series B, 7.625% |
31,240 |
718,520 |
|
|
MFA Financial, Inc.: |
|
|
|
|
8.00% |
538,930 |
13,958,287 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
MFA Financial, Inc.: - continued |
|
|
|
|
Series B, 7.50% |
614,532 |
$ 15,228,103 |
|
|
Monmouth Real Estate Investment Corp.: |
|
|
|
|
Series A, 7.625% |
80,000 |
2,096,800 |
|
|
Series B, 7.875% |
95,000 |
2,518,450 |
|
|
National Retail Properties, Inc.: |
|
|
|
|
5.70% |
376,404 |
9,327,291 |
|
|
Series D, 6.625% |
222,138 |
5,862,222 |
|
|
New York Mortgage Trust, Inc. Series B, 7.75% |
239,697 |
5,946,883 |
|
|
NorthStar Realty Finance Corp.: |
|
|
|
|
Series B, 8.25% |
225,708 |
5,782,639 |
|
|
Series C, 8.875% |
277,101 |
7,309,924 |
|
|
Series D, 8.50% |
233,915 |
6,081,790 |
|
|
Series E, 8.75% |
366,972 |
9,618,336 |
|
|
Pebblebrook Hotel Trust: |
|
|
|
|
Series A, 7.875% |
412,000 |
10,650,200 |
|
|
Series B, 8.00% |
185,085 |
4,923,261 |
|
|
Series C, 6.50% |
183,140 |
4,798,268 |
|
|
Pennsylvania (REIT) 7.375% |
100,510 |
2,663,515 |
|
|
Prologis, Inc. Series Q, 8.54% |
94,446 |
5,944,195 |
|
|
PS Business Parks, Inc.: |
|
|
|
|
Series R, 6.875% |
116,903 |
3,021,943 |
|
|
Series S, 6.45% |
93,809 |
2,474,681 |
|
|
Series T, 6.00% |
198,899 |
5,065,958 |
|
|
Series U, 5.75% |
600 |
14,880 |
|
|
Public Storage: |
|
|
|
|
5.875% (a) |
17,294 |
444,629 |
|
|
6.375% |
122,000 |
3,273,260 |
|
|
RAIT Financial Trust: |
|
|
|
|
7.125% |
322,126 |
8,008,052 |
|
|
7.625% |
224,590 |
5,468,767 |
|
|
Regency Centers Corp.: |
|
|
|
|
Series 6, 6.625% |
152,661 |
3,972,239 |
|
|
Series 7, 6.00% |
125,050 |
3,191,276 |
|
|
Resource Capital Corp. 8.625% |
156,870 |
3,608,010 |
|
|
Retail Properties America, Inc. 7.00% |
394,411 |
10,191,580 |
|
|
Sabra Health Care REIT, Inc. Series A, 7.125% |
298,123 |
8,094,039 |
|
|
Saul Centers, Inc. Series C, 6.875% |
315,478 |
8,457,965 |
|
|
Senior Housing Properties Trust 5.625% |
283,543 |
7,088,575 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Stag Industrial, Inc.: |
|
|
|
|
Series A, 9.00% |
280,000 |
$ 7,624,400 |
|
|
Series B, 6.625% |
80,300 |
2,071,740 |
|
|
Summit Hotel Properties, Inc.: |
|
|
|
|
Series A, 9.25% |
138,340 |
3,796,050 |
|
|
Series B, 7.875% |
190,173 |
5,326,746 |
|
|
Series C, 7.125% |
153,212 |
4,092,293 |
|
|
Sun Communities, Inc. Series A, 7.125% |
375,000 |
9,843,750 |
|
|
Sunstone Hotel Investors, Inc. Series D, 8.00% |
129,723 |
3,458,415 |
|
|
Taubman Centers, Inc. Series K, 6.25% |
157,322 |
4,113,970 |
|
|
Terreno Realty Corp. Series A, 7.75% |
213,690 |
5,635,005 |
|
|
UMH Properties, Inc. Series A, 8.25% |
600,000 |
15,804,000 |
|
|
Urstadt Biddle Properties, Inc.: |
|
|
|
|
6.75% |
160,000 |
4,353,600 |
|
|
Series F, 7.125% |
210,000 |
5,667,900 |
|
|
Weingarten Realty Investors (SBI) Series F, 6.50% |
49,813 |
1,260,269 |
|
|
Wells Fargo Real Estate Investment Corp. 6.375% (a) |
221,000 |
5,772,520 |
|
|
Winthrop Realty Trust 7.75% |
360,000 |
9,176,400 |
|
|
WP Glimcher, Inc.: |
|
|
|
|
6.875% (a) |
256,115 |
6,738,386 |
|
|
7.50% (a) |
198,527 |
5,112,070 |
|
|
8.125% (a) |
109,192 |
2,757,098 |
|
|
|
796,162,574 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Kennedy-Wilson, Inc. 7.75% |
321,574 |
8,290,178 |
|
|
TOTAL FINANCIALS |
808,942,670 |
||
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
812,268,296 |
||
|
TOTAL PREFERRED STOCKS (Cost $819,520,265) |
|
||
|
Corporate Bonds - 20.1% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Convertible Bonds - 4.5% |
||||
|
FINANCIALS - 4.5% |
||||
|
Consumer Finance - 0.0% |
||||
|
Zais Financial Partners LP 8% 11/15/16 (h) |
|
$ 2,000,000 |
$ 2,075,000 |
|
|
Diversified Financial Services - 0.3% |
||||
|
RWT Holdings, Inc. 5.625% 11/15/19 (h) |
|
12,190,000 |
12,447,819 |
|
|
Real Estate Investment Trusts - 3.5% |
||||
|
Annaly Capital Management, Inc. 5% 5/15/15 |
|
31,396,000 |
31,454,868 |
|
|
Apollo Commercial Real Estate Finance, Inc. 5.5% 3/15/19 |
|
5,600,000 |
5,526,500 |
|
|
Ares Commercial Real Estate Corp. 7% 12/15/15 |
|
14,700,000 |
15,049,125 |
|
|
Blackstone Mortgage Trust, Inc. 5.25% 12/1/18 |
|
5,750,000 |
6,030,313 |
|
|
Campus Crest Communities Operating Partnership LP 4.75% 10/15/18 (h) |
|
11,900,000 |
11,327,313 |
|
|
Colony Financial, Inc.: |
|
|
|
|
|
3.875% 1/15/21 |
|
9,910,000 |
10,331,175 |
|
|
5% 4/15/23 |
|
9,000,000 |
9,849,375 |
|
|
PennyMac Corp. 5.375% 5/1/20 |
|
9,690,000 |
9,266,063 |
|
|
RAIT Financial Trust 4% 10/1/33 |
|
32,665,000 |
27,418,184 |
|
|
Redwood Trust, Inc. 4.625% 4/15/18 |
|
11,200,000 |
10,843,000 |
|
|
Resource Capital Corp. 8% 1/15/20 |
|
15,200,000 |
14,549,227 |
|
|
Spirit Realty Capital, Inc. 3.75% 5/15/21 |
|
2,400,000 |
2,457,000 |
|
|
Starwood Property Trust, Inc. 3.75% 10/15/17 |
|
3,230,000 |
3,336,994 |
|
|
Starwood Waypoint Residential 4.5% 10/15/17 (h) |
|
1,965,000 |
1,965,000 |
|
|
|
159,404,137 |
|||
|
Thrifts & Mortgage Finance - 0.7% |
||||
|
IAS Operating Partnership LP 5% 3/15/18 (h) |
|
33,140,000 |
31,441,575 |
|
|
TOTAL FINANCIALS |
205,368,531 |
|||
|
Nonconvertible Bonds - 15.6% |
||||
|
CONSUMER DISCRETIONARY - 4.7% |
||||
|
Hotels, Restaurants & Leisure - 0.6% |
||||
|
FelCor Lodging LP: |
|
|
|
|
|
5.625% 3/1/23 |
|
2,000,000 |
2,035,000 |
|
|
6.75% 6/1/19 |
|
5,875,000 |
6,124,688 |
|
|
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 |
|
4,000,000 |
4,220,000 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc. 8% 10/1/20 (h) |
|
4,500,000 |
4,432,500 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
RHP Hotel Properties LP/RHP Finance Co. 5% 4/15/21 |
|
$ 2,000,000 |
$ 2,005,000 |
|
|
Times Square Hotel Trust 8.528% 8/1/26 (h) |
|
8,127,324 |
10,670,248 |
|
|
|
29,487,436 |
|||
|
Household Durables - 4.1% |
||||
|
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co. 6.875% 2/15/21 (h) |
|
10,500,000 |
9,817,500 |
|
|
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (h) |
|
2,620,000 |
2,659,300 |
|
|
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (h) |
|
1,615,000 |
1,655,375 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
4.375% 9/15/22 |
|
4,175,000 |
4,154,125 |
|
|
4.75% 5/15/17 |
|
2,000,000 |
2,075,000 |
|
|
5.75% 8/15/23 |
|
2,510,000 |
2,698,250 |
|
|
KB Home: |
|
|
|
|
|
8% 3/15/20 |
|
8,465,000 |
8,877,669 |
|
|
9.1% 9/15/17 |
|
4,985,000 |
5,570,738 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
5,520,000 |
5,492,400 |
|
|
4.5% 6/15/19 |
|
1,830,000 |
1,848,300 |
|
|
5.6% 5/31/15 |
|
6,000,000 |
6,073,200 |
|
|
6.5% 4/15/16 |
|
4,000,000 |
4,180,000 |
|
|
6.95% 6/1/18 |
|
14,280,000 |
15,493,800 |
|
|
M/I Homes, Inc. 8.625% 11/15/18 |
|
26,055,000 |
27,097,200 |
|
|
Meritage Homes Corp.: |
|
|
|
|
|
7% 4/1/22 |
|
7,525,000 |
7,938,875 |
|
|
7.15% 4/15/20 |
|
7,060,000 |
7,554,200 |
|
|
Ryland Group, Inc.: |
|
|
|
|
|
6.625% 5/1/20 |
|
1,555,000 |
1,636,638 |
|
|
8.4% 5/15/17 |
|
5,420,000 |
6,063,625 |
|
|
Standard Pacific Corp.: |
|
|
|
|
|
5.875% 11/15/24 |
|
3,250,000 |
3,225,625 |
|
|
7% 8/15/15 |
|
4,000,000 |
4,060,000 |
|
|
8.375% 5/15/18 |
|
27,853,000 |
31,421,526 |
|
|
10.75% 9/15/16 |
|
4,910,000 |
5,517,613 |
|
|
WCI Communities, Inc. 6.875% 8/15/21 |
|
1,845,000 |
1,840,388 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Household Durables - continued |
||||
|
William Lyon Homes, Inc.: |
|
|
|
|
|
7% 8/15/22 |
|
$ 4,180,000 |
$ 4,221,800 |
|
|
8.5% 11/15/20 |
|
15,550,000 |
16,599,625 |
|
|
|
187,772,772 |
|||
|
TOTAL CONSUMER DISCRETIONARY |
217,260,208 |
|||
|
CONSUMER STAPLES - 0.0% |
||||
|
Food & Staples Retailing - 0.0% |
||||
|
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 |
|
602,053 |
668,279 |
|
|
FINANCIALS - 10.2% |
||||
|
Diversified Financial Services - 0.2% |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
5.875% 2/1/22 |
|
3,680,000 |
3,762,800 |
|
|
6% 8/1/20 |
|
6,000,000 |
6,276,600 |
|
|
|
10,039,400 |
|||
|
Real Estate Investment Trusts - 7.0% |
||||
|
American Campus Communities Operating Partnership LP 4.125% 7/1/24 |
|
2,000,000 |
2,097,894 |
|
|
American Tower Corp. 3.4% 2/15/19 |
|
1,000,000 |
1,032,545 |
|
|
ARC Properties Operating Partnership LP 4.6% 2/6/24 |
|
7,000,000 |
6,820,765 |
|
|
Camden Property Trust 5% 6/15/15 |
|
1,100,000 |
1,117,846 |
|
|
CBL & Associates LP 5.25% 12/1/23 |
|
1,000,000 |
1,110,598 |
|
|
Commercial Net Lease Realty, Inc. 6.15% 12/15/15 |
|
2,526,000 |
2,631,622 |
|
|
Crown Castle International Corp. 5.25% 1/15/23 |
|
4,000,000 |
4,100,000 |
|
|
CTR Partnership LP/CareTrust Capital Corp. 5.875% 6/1/21 |
|
2,300,000 |
2,340,250 |
|
|
CubeSmart LP 4.8% 7/15/22 |
|
2,000,000 |
2,251,382 |
|
|
DDR Corp.: |
|
|
|
|
|
5.5% 5/1/15 |
|
4,000,000 |
4,041,620 |
|
|
7.5% 4/1/17 |
|
6,000,000 |
6,717,906 |
|
|
7.5% 7/15/18 |
|
8,756,000 |
10,320,995 |
|
|
7.875% 9/1/20 |
|
4,637,000 |
5,820,529 |
|
|
9.625% 3/15/16 |
|
3,836,000 |
4,198,149 |
|
|
DuPont Fabros Technology LP 5.875% 9/15/21 |
|
1,000,000 |
1,037,500 |
|
|
Equity One, Inc.: |
|
|
|
|
|
5.375% 10/15/15 |
|
3,500,000 |
3,599,099 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
Equity One, Inc.: - continued |
|
|
|
|
|
6.25% 1/15/17 |
|
$ 3,000,000 |
$ 3,254,301 |
|
|
Equity Residential 5.125% 3/15/16 |
|
7,201,000 |
7,543,163 |
|
|
HCP, Inc. 3.75% 2/1/16 |
|
10,000,000 |
10,272,390 |
|
|
Health Care Property Investors, Inc.: |
|
|
|
|
|
5.625% 5/1/17 |
|
2,980,000 |
3,254,762 |
|
|
6% 3/1/15 |
|
1,000,000 |
1,004,164 |
|
|
6% 1/30/17 |
|
2,383,000 |
2,600,725 |
|
|
7.072% 6/8/15 |
|
1,500,000 |
1,532,430 |
|
|
Health Care REIT, Inc.: |
|
|
|
|
|
3.625% 3/15/16 |
|
14,685,000 |
15,112,510 |
|
|
4.125% 4/1/19 |
|
2,000,000 |
2,159,772 |
|
|
6.2% 6/1/16 |
|
2,750,000 |
2,934,690 |
|
|
Healthcare Realty Trust, Inc.: |
|
|
|
|
|
3.75% 4/15/23 |
|
4,022,000 |
4,086,758 |
|
|
5.75% 1/15/21 |
|
3,095,000 |
3,545,388 |
|
|
6.5% 1/17/17 |
|
2,875,000 |
3,143,594 |
|
|
Highwoods/Forsyth LP: |
|
|
|
|
|
3.625% 1/15/23 |
|
1,607,000 |
1,665,979 |
|
|
5.85% 3/15/17 |
|
2,800,000 |
3,046,316 |
|
|
Hospitality Properties Trust: |
|
|
|
|
|
5% 8/15/22 |
|
3,177,000 |
3,441,650 |
|
|
5.625% 3/15/17 |
|
915,000 |
982,615 |
|
|
HRPT Properties Trust: |
|
|
|
|
|
5.75% 11/1/15 |
|
4,826,000 |
4,880,495 |
|
|
6.25% 8/15/16 |
|
9,675,000 |
10,120,563 |
|
|
6.25% 6/15/17 |
|
1,055,000 |
1,138,619 |
|
|
6.65% 1/15/18 |
|
4,246,000 |
4,692,607 |
|
|
iStar Financial, Inc.: |
|
|
|
|
|
3.875% 7/1/16 |
|
2,855,000 |
2,862,138 |
|
|
4% 11/1/17 |
|
15,000,000 |
14,662,500 |
|
|
5% 7/1/19 |
|
15,000,000 |
14,737,500 |
|
|
5.85% 3/15/17 |
|
3,587,000 |
3,676,675 |
|
|
5.875% 3/15/16 |
|
27,070,000 |
27,543,725 |
|
|
6.05% 4/15/15 |
|
14,630,000 |
14,703,150 |
|
|
7.125% 2/15/18 |
|
5,725,000 |
6,039,875 |
|
|
9% 6/1/17 |
|
9,175,000 |
10,092,500 |
|
|
MPT Operating Partnership LP/MPT Finance Corp.: |
|
|
|
|
|
6.375% 2/15/22 |
|
3,610,000 |
3,880,750 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
MPT Operating Partnership LP/MPT Finance Corp.: - continued |
|
|
|
|
|
6.875% 5/1/21 |
|
$ 2,000,000 |
$ 2,140,000 |
|
|
National Retail Properties, Inc. 3.3% 4/15/23 |
|
2,000,000 |
2,034,208 |
|
|
Nationwide Health Properties, Inc. 6% 5/20/15 |
|
5,670,000 |
5,758,588 |
|
|
Omega Healthcare Investors, Inc.: |
|
|
|
|
|
4.95% 4/1/24 |
|
2,898,000 |
3,113,495 |
|
|
6.75% 10/15/22 |
|
2,115,000 |
2,231,325 |
|
|
7.5% 2/15/20 |
|
1,000,000 |
1,042,000 |
|
|
Potlatch Corp. 7.5% 11/1/19 |
|
1,000,000 |
1,145,000 |
|
|
Prologis LP 7.625% 7/1/17 |
|
4,690,000 |
5,275,410 |
|
|
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 |
|
2,000,000 |
2,434,332 |
|
|
Select Income (REIT) 4.5% 2/1/25 |
|
5,000,000 |
5,013,565 |
|
|
Senior Housing Properties Trust: |
|
|
|
|
|
3.25% 5/1/19 |
|
2,882,000 |
2,954,223 |
|
|
4.3% 1/15/16 |
|
5,000,000 |
5,099,820 |
|
|
4.75% 5/1/24 |
|
3,988,000 |
4,244,169 |
|
|
6.75% 4/15/20 |
|
13,624,000 |
15,660,039 |
|
|
6.75% 12/15/21 |
|
8,000,000 |
9,436,832 |
|
|
United Dominion Realty Trust, Inc. 5.25% 1/15/16 |
|
4,000,000 |
4,158,416 |
|
|
WP Carey, Inc. 4% 2/1/25 |
|
5,000,000 |
5,082,560 |
|
|
|
324,674,986 |
|||
|
Real Estate Management & Development - 2.6% |
||||
|
BioMed Realty LP 3.85% 4/15/16 |
|
2,000,000 |
2,062,790 |
|
|
CBRE Group, Inc.: |
|
|
|
|
|
5% 3/15/23 |
|
6,020,000 |
6,305,950 |
|
|
5.25% 3/15/25 |
|
3,295,000 |
3,492,700 |
|
|
Corporate Office Properties LP 3.6% 5/15/23 |
|
5,000,000 |
4,965,865 |
|
|
Excel Trust LP 4.625% 5/15/24 |
|
2,403,000 |
2,569,261 |
|
|
Forestar U.S.A. Real Estate Group 8.5% 6/1/22 (h) |
|
14,565,000 |
13,945,988 |
|
|
Host Hotels & Resorts LP 5.25% 3/15/22 |
|
2,000,000 |
2,245,700 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (h) |
|
11,715,000 |
12,242,175 |
|
|
Hunt Companies, Inc. 9.625% 3/1/21 (h) |
|
4,100,000 |
4,151,250 |
|
|
Kennedy-Wilson, Inc. 5.875% 4/1/24 |
|
7,640,000 |
7,730,152 |
|
|
Mid-America Apartments LP: |
|
|
|
|
|
3.75% 6/15/24 |
|
1,663,000 |
1,739,380 |
|
|
6.05% 9/1/16 |
|
2,500,000 |
2,690,840 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Group LLC/Realogy Co.-Issuer Corp.: |
|
|
|
|
|
4.5% 4/15/19 (h) |
|
$ 4,805,000 |
$ 4,805,000 |
|
|
5.25% 12/1/21 (h) |
|
6,620,000 |
6,520,700 |
|
|
Regency Centers LP: |
|
|
|
|
|
5.25% 8/1/15 |
|
4,509,000 |
4,608,780 |
|
|
5.875% 6/15/17 |
|
400,000 |
440,389 |
|
|
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: |
|
|
|
|
|
5.25% 4/15/21 (h) |
|
2,000,000 |
1,885,000 |
|
|
5.625% 3/1/24 (h) |
|
2,270,000 |
2,111,100 |
|
|
Ventas Realty LP 1.55% 9/26/16 |
|
7,000,000 |
7,053,473 |
|
|
Ventas Realty LP/Ventas Capital Corp.: |
|
|
|
|
|
2.7% 4/1/20 |
|
3,000,000 |
3,047,694 |
|
|
3.125% 11/30/15 |
|
13,807,000 |
14,054,960 |
|
|
4% 4/30/19 |
|
2,262,000 |
2,430,551 |
|
|
Wells Operating Partnership II LP 5.875% 4/1/18 |
|
3,000,000 |
3,189,756 |
|
|
Weyerhaeuser Real Estate Co. 5.875% 6/15/24 (h) |
|
3,890,000 |
3,744,125 |
|
|
|
118,033,579 |
|||
|
Thrifts & Mortgage Finance - 0.4% |
||||
|
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp. 7.75% 2/15/18 (h) |
|
4,755,000 |
4,968,381 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (h) |
|
13,695,000 |
10,613,625 |
|
|
Wrightwood Capital LLC 1.9% 4/20/20 (d) |
|
32,294 |
476,333 |
|
|
|
16,058,339 |
|||
|
TOTAL FINANCIALS |
468,806,304 |
|||
|
HEALTH CARE - 0.6% |
||||
|
Health Care Equipment & Supplies - 0.3% |
||||
|
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: |
|
|
|
|
|
6% 10/15/21 |
|
1,370,000 |
1,431,650 |
|
|
7.75% 2/15/19 |
|
10,410,000 |
10,836,810 |
|
|
|
12,268,460 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
HEALTH CARE - continued |
||||
|
Health Care Providers & Services - 0.3% |
||||
|
Sabra Health Care LP/Sabra Capital Corp.: |
|
|
|
|
|
5.375% 6/1/23 |
|
$ 2,795,000 |
$ 2,941,738 |
|
|
5.5% 2/1/21 |
|
12,305,000 |
13,012,538 |
|
|
|
15,954,276 |
|||
|
TOTAL HEALTH CARE |
28,222,736 |
|||
|
INDUSTRIALS - 0.1% |
||||
|
Industrial Conglomerates - 0.1% |
||||
|
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 |
|
3,050,000 |
3,126,250 |
|
|
INFORMATION TECHNOLOGY - 0.0% |
||||
|
Internet Software & Services - 0.0% |
||||
|
CyrusOne LP/CyrusOne Finance Corp. 6.375% 11/15/22 |
|
3,000,000 |
3,105,000 |
|
|
TOTAL NONCONVERTIBLE BONDS |
721,188,777 |
|||
|
TOTAL CORPORATE BONDS (Cost $898,339,846) |
|
|||
|
Asset-Backed Securities - 2.0% |
||||
|
|
||||
|
American Homes 4 Rent: |
|
|
|
|
|
Series 2014-SFR2 Class E, 6.231% 10/17/36 (h) |
|
3,000,000 |
3,146,872 |
|
|
Series 2014-SFR3 Class E, 6.418% 12/17/36 (h) |
|
8,575,000 |
9,114,868 |
|
|
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.668% 3/20/50 (h)(i) |
|
2,250,000 |
225 |
|
|
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (h) |
|
889,889 |
918,455 |
|
|
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 |
|
500,000 |
423,463 |
|
|
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A Class D, 9% 12/28/35 (h) |
|
462,183 |
455,897 |
|
|
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 |
|
7,094,402 |
6,934,736 |
|
|
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6006% 11/28/39 (h)(i) |
|
620,905 |
62 |
|
|
Asset-Backed Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
Green Tree Financial Corp.: |
|
|
|
|
|
Series 1996-4 Class M1, 7.75% 6/15/27 |
|
$ 1,737,103 |
$ 1,717,298 |
|
|
Series 1997-3 Class M1, 7.53% 3/15/28 |
|
6,901,849 |
5,998,414 |
|
|
HLSS Servicer Advance Receivables Backed Notes Series 2013-T2 Class D2, 2.388% 5/16/44 (h) |
|
3,000,000 |
2,998,500 |
|
|
Invitation Homes Trust: |
|
|
|
|
|
Series 2013-SFR1 Class F, 3.9% 12/17/30 (h)(i) |
|
1,750,000 |
1,722,343 |
|
|
Series 2014-SFR1: |
|
|
|
|
|
Class E, 3.412% 6/17/31 (h)(i) |
|
10,000,000 |
9,859,362 |
|
|
Class F, 3.918% 6/17/31 (h)(i) |
|
9,504,000 |
9,371,769 |
|
|
Series 2014-SFR3: |
|
|
|
|
|
Class E, 4.662% 12/17/31 (h)(i) |
|
4,336,000 |
4,411,787 |
|
|
Class F, 5.162% 12/17/31 (h)(i) |
|
2,215,000 |
2,258,088 |
|
|
Series 2015-SRF1 Class F, 4.7165% 3/17/32 (h)(i) |
|
5,500,000 |
5,525,020 |
|
|
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 |
|
985,351 |
481,986 |
|
|
Merit Securities Corp. Series 13 Class M1, 7.8478% 12/28/33 (i) |
|
1,923,000 |
2,035,399 |
|
|
Mesa West Capital CDO Ltd. Series 2007-1A Class A2, 0.4583% 2/25/47 (h)(i) |
|
6,298,738 |
6,177,172 |
|
|
Progress Residential Trust Series 2015-SFR1 Class E, 4.1668% 2/17/32 (h)(i)(l) |
|
1,500,000 |
1,508,130 |
|
|
Starwood Waypoint Residential Trust Series 2014-1 Class F, 4.7072% 1/17/32 (h)(i) |
|
4,071,000 |
4,097,879 |
|
|
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.8824% 2/5/36 (h)(i) |
|
3,859,088 |
386 |
|
|
Wachovia Ltd./Wachovia LLC: |
|
|
|
|
|
Series 2006-1 Class 1ML, 5.7546% 9/25/26 (h)(i) |
|
2,000,000 |
1,927,400 |
|
|
Series 2006-1A: |
|
|
|
|
|
Class H, 1.9046% 9/25/26 (h)(i) |
|
1,087,896 |
1,074,297 |
|
|
Class J, 3.0046% 9/25/26 (h)(i) |
|
1,500,000 |
1,466,250 |
|
|
Class K, 3.5046% 9/25/26 (h)(i) |
|
2,475,000 |
2,401,493 |
|
|
Class L, 4.2546% 9/25/26 (h)(i) |
|
1,500,000 |
1,451,550 |
|
|
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: |
|
|
|
|
|
Class A1, 0.5511% 11/21/40 (h)(i) |
|
5,329,074 |
5,235,816 |
|
|
Class F, 2.1811% 11/21/40 (h)(i) |
|
250,000 |
175,675 |
|
|
TOTAL ASSET-BACKED SECURITIES (Cost $95,402,510) |
|
|||
|
Collateralized Mortgage Obligations - 0.2% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Private Sponsor - 0.2% |
||||
|
Countrywide Home Loans, Inc.: |
|
|
|
|
|
Series 2002-R2 Class 2B3, 3.6319% 7/25/33 (h)(i) |
|
$ 173,540 |
$ 41,066 |
|
|
Series 2003-R3 Class B2, 5.5% 11/25/33 (h) |
|
933,707 |
83,104 |
|
|
Series 2004-R1 Class 1B3, 3.6561% 11/25/34 (h)(i) |
|
16,239 |
322 |
|
|
FREMF Mortgage Trust: |
|
|
|
|
|
Series 2010-K6 Class B, 5.3577% 12/25/46 (h)(i) |
|
4,500,000 |
5,076,041 |
|
|
Series 2010-K7 Class B, 5.4347% 4/25/20 (h)(i) |
|
3,200,000 |
3,630,426 |
|
|
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (h) |
|
1,131,190 |
1,172,263 |
|
|
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B Class B9, 12.1117% 6/10/35 (h)(i) |
|
135,805 |
143,891 |
|
|
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (h) |
|
12,394 |
11,262 |
|
|
RESIX Finance Ltd. floater: |
|
|
|
|
|
Series 2003-D Class B8, 6.6663% 12/10/35 (h)(i) |
|
153,030 |
39,357 |
|
|
Series 2004-A Class B7, 4.4163% 2/10/36 (h)(i) |
|
158,503 |
52,336 |
|
|
Series 2004-B Class B7, 4.1663% 2/10/36 (h)(i) |
|
197,513 |
190,189 |
|
|
TOTAL PRIVATE SPONSOR |
10,440,257 |
|||
|
U.S. Government Agency - 0.0% |
||||
|
Fannie Mae REMIC Trust: |
|
|
|
|
|
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) |
|
102,802 |
31,345 |
|
|
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.112% 2/25/42 (h)(i) |
|
76,983 |
53,691 |
|
|
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 (i)(k) |
|
163,946 |
22,112 |
|
|
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.073% 6/25/43 (h)(i) |
|
117,448 |
49,237 |
|
|
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 2.8985% 10/25/42 (h)(i) |
|
46,599 |
21,712 |
|
|
TOTAL U.S. GOVERNMENT AGENCY |
178,097 |
|||
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $10,120,216) |
|
|||
|
Commercial Mortgage Securities - 12.9% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (h) |
|
$ 2,000,000 |
$ 2,323,686 |
|
|
Banc of America Commercial Mortgage Trust: |
|
|
|
|
|
Series 2005-1 Class CJ, 5.2832% 11/10/42 (i) |
|
3,580,000 |
3,576,828 |
|
|
Series 2005-5 Class D, 5.2138% 10/10/45 (i) |
|
4,000,000 |
4,031,184 |
|
|
Series 2005-6 Class AJ, 5.1523% 9/10/47 (i) |
|
5,000,000 |
5,152,355 |
|
|
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4348% 3/11/39 (i) |
|
5,700,000 |
5,859,568 |
|
|
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5753% 4/12/38 (h)(i) |
|
2,520,000 |
2,673,382 |
|
|
BLCP Hotel Trust: |
|
|
|
|
|
floater Series 2014-CLRN Class F, 3.2006% 8/15/29 (h)(i) |
|
2,500,000 |
2,369,225 |
|
|
Series 2014-CLMZ Class M, 5.8945% 8/15/29 (h)(i) |
|
11,673,000 |
11,537,078 |
|
|
Boca Hotel Portfolio Trust Series 2013-BOCA Class E, 3.9165% 8/15/26 (h)(i) |
|
2,500,000 |
2,502,820 |
|
|
Carefree Portfolio Trust floater: |
|
|
|
|
|
Series 2014-CARE: |
|
|
|
|
|
Class E, 4.167% 11/15/19 (h)(i) |
|
4,073,000 |
4,078,015 |
|
|
Class F, 2.7507% 11/15/19 (h)(i) |
|
1,650,000 |
1,520,191 |
|
|
Series 2014-CMZA Class MZA, 6.1435% 11/15/19 (h)(i) |
|
14,382,000 |
14,408,539 |
|
|
CGBAM Commercial Mortgage Trust floater Series 2014-HD Class E, 3.1608% 2/15/31 (h)(i) |
|
5,769,000 |
5,715,908 |
|
|
Citigroup Commercial Mortgage Trust Series 2013-GC15 Class D, 5.1061% 9/10/46 (h)(i) |
|
2,750,000 |
2,794,176 |
|
|
COMM Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (h) |
|
7,300,000 |
5,994,453 |
|
|
Series 2012-CR5 Class D, 4.3354% 12/10/45 (h)(i) |
|
2,000,000 |
2,100,636 |
|
|
Series 2013-CR10 Class D, 4.958% 8/10/46 (h)(i) |
|
2,000,000 |
1,991,795 |
|
|
Series 2013-CR12 Class D, 5.0853% 10/10/46 (h)(i) |
|
4,000,000 |
4,102,192 |
|
|
Series 2013-CR9 Class D, 4.2592% 7/10/45 (h)(i) |
|
4,255,000 |
4,127,346 |
|
|
Series 2013-LC6 Class D, 4.2879% 1/10/46 (h)(i) |
|
3,870,000 |
3,781,578 |
|
|
Series 2014-UBS2 Class D, 5.0157% 3/10/47 (h)(i) |
|
3,713,000 |
3,665,908 |
|
|
Commercial Mortgage Acceptance Corp. Series 1998-C2 Class J, 5.44% 9/15/30 (h) |
|
2,081,591 |
2,009,060 |
|
|
Commercial Mortgage Trust pass-thru certificates: |
|
|
|
|
|
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) |
|
5,000,000 |
5,088,910 |
|
|
Series 2012-CR1: |
|
|
|
|
|
Class C, 5.3596% 5/15/45 (i) |
|
1,000,000 |
1,135,256 |
|
|
Class D, 5.3596% 5/15/45 (h)(i) |
|
5,550,000 |
5,961,588 |
|
|
Series 2012-CR2: |
|
|
|
|
|
Class D, 4.8575% 8/15/45 (h)(i) |
|
4,500,000 |
4,899,105 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Commercial Mortgage Trust pass-thru certificates: - continued |
|
|
|
|
|
Series 2012-CR2: |
|
|
|
|
|
Class E, 4.8575% 8/15/45 (h)(i) |
|
$ 6,000,000 |
$ 6,249,660 |
|
|
Series 2012-LC4: |
|
|
|
|
|
Class C, 5.6468% 12/10/44 (i) |
|
2,000,000 |
2,291,648 |
|
|
Class D, 5.6468% 12/10/44 (h)(i) |
|
8,000,000 |
8,757,496 |
|
|
Credit Suisse First Boston Mortgage Securities Corp.: |
|
|
|
|
|
Series 1998-C1 Class F, 6% 5/17/40 (h) |
|
1,359,418 |
1,468,042 |
|
|
Series 1998-C2 Class F, 6.75% 11/15/30 (h) |
|
1,882,248 |
1,946,092 |
|
|
DBUBS Mortgage Trust Series 2011-LC1A: |
|
|
|
|
|
Class E, 5.5573% 11/10/46 (h)(i) |
|
12,490,000 |
13,907,178 |
|
|
Class G, 4.652% 11/10/46 (h) |
|
9,843,000 |
8,730,711 |
|
|
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 |
|
3,746 |
3,742 |
|
|
Extended Stay America Trust Series 2013-ESH7 Class C7, 3.9017% 12/5/31 (h) |
|
500,000 |
518,702 |
|
|
Freddie Mac: |
|
|
|
|
|
pass-thru certificates: |
|
|
|
|
|
Series K011 Class X3, 2.5752% 12/25/43 (i)(j) |
|
12,206,096 |
1,612,669 |
|
|
Series K012 Class X3, 2.288% 1/25/41 (i)(j) |
|
21,072,886 |
2,492,691 |
|
|
Series K013 Class X3, 2.8068% 1/25/43 (i)(j) |
|
14,360,000 |
2,101,844 |
|
|
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) |
|
7,430,000 |
1,438,417 |
|
|
GMAC Commercial Mortgage Securities, Inc. Series 1997-C2 Class G, 6.75% 4/15/29 (i) |
|
634,170 |
682,090 |
|
|
GP Portfolio Trust Series 2014-GPP Class E, 4.017% 2/15/27 (h)(i) |
|
2,823,000 |
2,810,253 |
|
|
Greenwich Capital Commercial Funding Corp. Series 2006-GG7 Class A4, 5.8188% 7/10/38 (i) |
|
7,889,075 |
8,231,650 |
|
|
GS Mortgage Securities Corp. II Series 2010-C1: |
|
|
|
|
|
Class D, 6.0409% 8/10/43 (h)(i) |
|
4,000,000 |
4,472,448 |
|
|
Class E, 4% 8/10/43 (h) |
|
3,770,000 |
3,473,075 |
|
|
GS Mortgage Securities Trust: |
|
|
|
|
|
Series 2010-C2 Class D, 5.2225% 12/10/43 (h)(i) |
|
3,000,000 |
3,236,121 |
|
|
Series 2011-GC5: |
|
|
|
|
|
Class C, 5.3067% 8/10/44 (h)(i) |
|
9,000,000 |
10,212,705 |
|
|
Class D, 5.3067% 8/10/44 (h)(i) |
|
4,000,000 |
4,332,108 |
|
|
Class E, 5.3067% 8/10/44 (h)(i) |
|
4,049,000 |
3,890,429 |
|
|
Class F, 4.5% 8/10/44 (h) |
|
4,500,000 |
3,732,750 |
|
|
Series 2012-GC6: |
|
|
|
|
|
Class C, 5.6379% 1/10/45 (h)(i) |
|
3,600,000 |
4,118,888 |
|
|
Class D, 5.6379% 1/10/45 (h)(i) |
|
2,000,000 |
2,154,417 |
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class C, 5.7228% 5/10/45 (i) |
|
6,500,000 |
7,449,738 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
GS Mortgage Securities Trust: - continued |
|
|
|
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class D, 5.7228% 5/10/45 (h)(i) |
|
$ 3,000,000 |
$ 3,236,777 |
|
|
Class E, 5% 5/10/45 (h) |
|
6,920,000 |
6,567,582 |
|
|
Series 2012-GCJ9 Class D, 4.858% 11/10/45 (h)(i) |
|
2,000,000 |
2,034,458 |
|
|
Series 2013-GC16: |
|
|
|
|
|
Class D, 5.323% 11/10/46 (h)(i) |
|
3,750,000 |
3,865,215 |
|
|
Class F, 3.5% 11/10/46 (h) |
|
7,303,000 |
5,728,145 |
|
|
Hilton U.S.A. Trust: |
|
|
|
|
|
floater Series 2014-ORL Class E, 3.4108% 7/15/29 (h)(i) |
|
7,241,000 |
7,061,677 |
|
|
Series 2013-HLT Class EFX, 5.2216% 11/5/30 (h)(i) |
|
5,000,000 |
5,135,126 |
|
|
Invitation Homes Trust floater Series 2013-SFR1 Class E, 2.9% 12/17/30 (h)(i) |
|
1,500,000 |
1,449,049 |
|
|
JPMorgan Chase Commercial Mortgage Securities Corp.: |
|
|
|
|
|
Series 2003-C1 Class F, 5.6564% 1/12/37 (h)(i) |
|
1,000,000 |
1,010,226 |
|
|
Series 2009-IWST: |
|
|
|
|
|
Class C, 7.4453% 12/5/27 (h)(i) |
|
3,000,000 |
3,692,982 |
|
|
Class D, 7.4453% 12/5/27 (h)(i) |
|
9,550,000 |
11,622,579 |
|
|
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (h) |
|
9,000,000 |
9,565,786 |
|
|
Series 2010-CNTR: |
|
|
|
|
|
Class D, 6.1838% 8/5/32 (h)(i) |
|
4,500,000 |
5,237,060 |
|
|
Class XB, 0.9305% 8/5/32 (h)(i)(j) |
|
32,655,000 |
1,276,494 |
|
|
Series 2012-CBX: |
|
|
|
|
|
Class C, 5.2402% 6/15/45 (i) |
|
4,530,000 |
5,054,817 |
|
|
Class F, 4% 6/15/45 (h) |
|
5,000,000 |
4,467,280 |
|
|
Class G 4% 6/15/45 (h) |
|
4,044,000 |
3,127,588 |
|
|
JPMorgan Chase Commercial Mortgage Securities Trust: |
|
|
|
|
|
floater: |
|
|
|
|
|
Series 2013-JWMZ Class M, 6.1665% 4/15/18 (h)(i) |
|
2,137,531 |
2,138,672 |
|
|
Series 2013-JWRZ Class E, 3.9065% 4/15/30 (h)(i) |
|
3,400,000 |
3,403,125 |
|
|
Series 2014-FBLU Class E, 3.661% 12/15/28 (h)(i) |
|
2,000,000 |
1,997,176 |
|
|
Series 2014-INN: |
|
|
|
|
|
Class E, 3.767% 6/15/29 (h)(i) |
|
9,607,000 |
9,619,998 |
|
|
Class F, 4.167% 6/15/29 (h)(i) |
|
9,618,000 |
9,650,518 |
|
|
Series 2005-LDP5 Class AJ, 5.3574% 12/15/44 (i) |
|
3,470,000 |
3,561,233 |
|
|
Series 2011-C4 Class F, 3.873% 7/15/46 (h) |
|
1,400,000 |
1,296,056 |
|
|
Series 2011-C5 Class C, 5.3229% 8/15/46 (h)(i) |
|
6,525,375 |
7,405,289 |
|
|
Series 2013-LC11 Class D, 4.2405% 4/15/46 (i) |
|
3,750,000 |
3,668,904 |
|
|
Series 2014-DSTY Class E, 3.8046% 6/10/27 (h)(i) |
|
2,525,000 |
2,358,597 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8 Class H, 6% 7/15/31 (h) |
|
$ 1,090,120 |
$ 1,010,366 |
|
|
LB-UBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2005-C3 Class AJ, 4.843% 7/15/40 |
|
6,620,000 |
6,666,611 |
|
|
Series 2005-C7 Class AJ, 5.323% 11/15/40 (i) |
|
8,000,000 |
8,196,712 |
|
|
Series 2006-C7 Class AM, 5.378% 11/15/38 |
|
2,040,000 |
2,162,879 |
|
|
Series 2005-C1 Class E, 4.924% 2/15/40 |
|
4,000,000 |
4,007,876 |
|
|
Series 2006-C4: |
|
|
|
|
|
Class A4, 5.8331% 6/15/38 (i) |
|
4,785,122 |
5,013,588 |
|
|
Class AJ, 5.8531% 6/15/38 (i) |
|
7,005,000 |
7,288,268 |
|
|
Class AM, 5.8531% 6/15/38 (i) |
|
6,700,000 |
7,097,712 |
|
|
LSTAR Commercial Mortgage Trust: |
|
|
|
|
|
Series 2011-1 Class D, 5.3544% 6/25/43 (h)(i) |
|
4,699,000 |
4,763,974 |
|
|
Series 2014-2: |
|
|
|
|
|
Class D, 5.1491% 1/20/41 (h)(i) |
|
3,000,000 |
2,914,728 |
|
|
Class E, 5.1491% 1/20/41 (h)(i) |
|
4,800,000 |
4,106,578 |
|
|
Mach One Trust LLC Series 2004-1A Class H, 6.2229% 5/28/40 (h)(i) |
|
2,840,000 |
2,868,400 |
|
|
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: |
|
|
|
|
|
Class F, 4.384% 7/12/37 |
CAD |
710,000 |
553,206 |
|
|
Class G, 4.384% 7/12/37 |
CAD |
355,000 |
275,440 |
|
|
Class H, 4.384% 7/12/37 |
CAD |
236,000 |
182,343 |
|
|
Class J, 4.384% 7/12/37 |
CAD |
355,000 |
273,145 |
|
|
Class K, 4.384% 7/12/37 |
CAD |
355,000 |
272,013 |
|
|
Class L, 4.384% 7/12/37 |
CAD |
236,000 |
180,085 |
|
|
Class M, 4.384% 7/12/37 |
CAD |
995,000 |
739,350 |
|
|
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6771% 5/12/39 (i) |
|
1,200,000 |
1,258,271 |
|
|
Mezz Capital Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2004-C1 Class A, 4.836% 1/15/37 (h) |
|
11,995 |
11,965 |
|
|
Series 2004-C2 Class A, 5.318% 10/15/40 (h) |
|
3,101 |
3,101 |
|
|
Series 2004-C1 Class IO, 8.9377% 1/15/37 (h)(i)(j) |
|
391,202 |
11,267 |
|
|
Morgan Stanley BAML Trust: |
|
|
|
|
|
Series 2012-C6 Class D, 4.6617% 11/15/45 (h)(i) |
|
2,000,000 |
2,110,712 |
|
|
Series 2013-C12 Class D, 4.7686% 10/15/46 (h)(i) |
|
3,250,000 |
3,227,257 |
|
|
Series 2013-C13 Class D, 4.8954% 11/15/46 (h)(i) |
|
3,100,000 |
3,094,200 |
|
|
Series 2013-C7 Class E, 4.3017% 2/15/46 (h)(i) |
|
1,000,000 |
891,623 |
|
|
Series 2013-C9 Class D, 4.1589% 5/15/46 (h)(i) |
|
5,000,000 |
4,858,790 |
|
|
Morgan Stanley Capital I Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2006-HQ10 Class AM, 5.36% 11/12/41 |
|
8,200,000 |
8,727,916 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Morgan Stanley Capital I Trust: - continued |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2012-C4 Class E, 5.525% 3/15/45 (h)(i) |
|
$ 5,630,000 |
$ 6,061,083 |
|
|
Series 1997-RR Class F, 7.4345% 4/30/39 (h)(i) |
|
846,456 |
848,572 |
|
|
Series 1998-CF1 Class G, 7.35% 7/15/32 (h) |
|
2,640,173 |
2,591,026 |
|
|
Series 2005-HQ5 Class B, 5.272% 1/14/42 |
|
168,455 |
168,480 |
|
|
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) |
|
2,500,000 |
2,527,518 |
|
|
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 |
|
7,500,000 |
7,990,373 |
|
|
Series 2011-C1 Class C, 5.2512% 9/15/47 (h)(i) |
|
4,000,000 |
4,506,092 |
|
|
Series 2011-C2: |
|
|
|
|
|
Class D, 5.304% 6/15/44 (h)(i) |
|
4,610,000 |
5,098,503 |
|
|
Class E, 5.304% 6/15/44 (h)(i) |
|
9,600,000 |
10,320,413 |
|
|
Class F, 5.304% 6/15/44 (h)(i) |
|
4,440,000 |
4,337,662 |
|
|
Class XB, 0.4589% 6/15/44 (h)(i)(j) |
|
63,708,222 |
1,794,278 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.1828% 7/15/49 (h)(i) |
|
2,000,000 |
2,222,734 |
|
|
Class D, 5.1828% 7/15/49 (h)(i) |
|
7,400,000 |
8,084,567 |
|
|
Series 2012-C4 Class D, 5.525% 3/15/45 (h)(i) |
|
6,310,000 |
7,011,571 |
|
|
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (h) |
|
4,404,349 |
5,716,845 |
|
|
RBSCF Trust Series 2010-MB1 Class D, 5.1367% 4/15/24 (h)(i) |
|
9,049,000 |
9,071,224 |
|
|
SCG Trust Series 2013-SRP1 Class D, 3.4999% 11/15/26 (h)(i) |
|
1,000,000 |
978,494 |
|
|
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5597% 8/15/39 (i) |
|
2,080,000 |
2,131,393 |
|
|
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (h) |
|
10,630,000 |
11,110,115 |
|
|
UBS Commercial Mortgage Trust Series 2012-C1 Class D, 5.5426% 5/10/45 (h)(i) |
|
3,235,000 |
3,457,073 |
|
|
UBS-Barclays Commercial Mortgage Trust sequential payer Series 2012-C3 Class A1, 0.726% 8/10/49 |
|
2,249,994 |
2,234,095 |
|
|
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8876% 1/10/45 (h)(i) |
|
3,000,000 |
3,603,720 |
|
|
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (h) |
|
2,540,000 |
3,011,345 |
|
|
Wachovia Bank Commercial Mortgage Trust: |
|
|
|
|
|
Series 2004-C11: |
|
|
|
|
|
Class D, 5.1384% 1/15/41 (i) |
|
5,177,000 |
5,290,252 |
|
|
Class E, 5.1884% 1/15/41 (i) |
|
3,785,000 |
3,878,998 |
|
|
Series 2004-C12 Class D, 5.4173% 7/15/41 (i) |
|
928,145 |
929,070 |
|
|
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7778% 10/15/45 (h)(i) |
|
9,999,000 |
10,284,931 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
WF-RBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (h) |
|
$ 4,000,000 |
$ 3,338,000 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.335% 3/15/44 (h) |
|
4,900,000 |
5,482,287 |
|
|
Class D, 5.5496% 3/15/44 (h)(i) |
|
1,000,000 |
1,099,016 |
|
|
Class E, 5% 3/15/44 (h) |
|
3,000,000 |
2,846,802 |
|
|
Series 2011-C5: |
|
|
|
|
|
Class F, 5.25% 11/15/44 (h)(i) |
|
3,000,000 |
2,840,313 |
|
|
Class G, 5.25% 11/15/44 (h)(i) |
|
2,000,000 |
1,774,200 |
|
|
Series 2012-C10 Class E, 4.4581% 12/15/45 (h)(i) |
|
4,090,000 |
3,621,032 |
|
|
Series 2012-C7: |
|
|
|
|
|
Class D, 4.8452% 6/15/45 (h)(i) |
|
2,380,000 |
2,565,326 |
|
|
Class F, 4.5% 6/15/45 (h) |
|
2,000,000 |
1,783,920 |
|
|
Series 2013-C11: |
|
|
|
|
|
Class D, 4.1819% 3/15/45 (h)(i) |
|
5,830,000 |
5,729,485 |
|
|
Class E, 4.1819% 3/15/45 (h)(i) |
|
4,780,000 |
4,152,807 |
|
|
Series 2013-C13 Class D, 4.2791% 5/15/45 (h)(i) |
|
4,000,000 |
3,884,716 |
|
|
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $538,972,148) |
|
|||
|
Bank Loan Obligations - 7.9% |
||||
|
|
||||
|
CONSUMER DISCRETIONARY - 2.7% |
||||
|
Hotels, Restaurants & Leisure - 2.0% |
||||
|
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (i) |
|
13,305,302 |
12,689,931 |
|
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (i) |
|
9,243,550 |
8,527,175 |
|
|
CityCenter Holdings LLC Tranche B, term loan 4.25% 10/16/20 (i) |
|
4,067,130 |
4,041,914 |
|
|
Cooper Hotel Group 12% 11/6/17 |
|
13,243,994 |
13,906,193 |
|
|
Four Seasons Holdings, Inc. Tranche 2LN, term loan 6.25% 12/27/20 (i) |
|
2,150,000 |
2,144,625 |
|
|
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (i) |
|
26,674,479 |
26,407,734 |
|
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (i) |
|
14,265,248 |
14,158,258 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (i) |
|
$ 8,156,115 |
$ 8,023,578 |
|
|
Ryman Hospitality Properties, Inc. Tranche B, term loan 3.75% 1/15/21 (i) |
|
2,278,550 |
2,278,550 |
|
|
|
92,177,958 |
|||
|
Media - 0.2% |
||||
|
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (i) |
|
8,295,000 |
8,149,838 |
|
|
Multiline Retail - 0.3% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (i) |
|
15,463,647 |
15,289,681 |
|
|
Specialty Retail - 0.2% |
||||
|
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 4.25% 10/11/18 (i) |
|
6,245,355 |
6,182,902 |
|
|
TOTAL CONSUMER DISCRETIONARY |
121,800,379 |
|||
|
CONSUMER STAPLES - 0.3% |
||||
|
Food & Staples Retailing - 0.3% |
||||
|
Albertson's LLC: |
|
|
|
|
|
Tranche B 2LN, term loan 4.75% 3/21/19 (i) |
|
5,123,347 |
5,104,134 |
|
|
Tranche B 3LN, term loan 4% 8/25/19 (i) |
|
8,485,000 |
8,431,969 |
|
|
|
13,536,103 |
|||
|
ENERGY - 0.4% |
||||
|
Oil, Gas & Consumable Fuels - 0.4% |
||||
|
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) |
|
7,184,245 |
7,166,285 |
|
|
Panda Temple Power, LLC term loan 7.25% 4/3/19 (i) |
|
8,580,000 |
8,440,575 |
|
|
TPF II Power, LLC Tranche B, term loan 5.5% 10/2/21 (i) |
|
4,260,000 |
4,270,650 |
|
|
|
19,877,510 |
|||
|
FINANCIALS - 2.1% |
||||
|
Diversified Financial Services - 0.4% |
||||
|
Blackstone 9.98% 10/1/17 |
|
17,089,815 |
17,089,815 |
|
|
Real Estate Investment Trusts - 0.2% |
||||
|
Starwood Property Trust, Inc. Tranche B, term loan 3.5% 4/17/20 (i) |
|
10,878,128 |
10,592,577 |
|
|
Real Estate Management & Development - 1.0% |
||||
|
CityCenter 8.74% 7/10/15 (i) |
|
3,307,347 |
3,307,347 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (i) |
|
$ 422,724 |
$ 415,326 |
|
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (i) |
|
44,245,717 |
43,582,031 |
|
|
|
47,304,704 |
|||
|
Thrifts & Mortgage Finance - 0.5% |
||||
|
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (i) |
|
25,099,143 |
23,373,577 |
|
|
TOTAL FINANCIALS |
98,360,673 |
|||
|
HEALTH CARE - 0.5% |
||||
|
Health Care Providers & Services - 0.5% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
Tranche D, term loan 4.25% 1/27/21 (i) |
|
2,090,052 |
2,090,052 |
|
|
Tranche E, term loan 3.4856% 1/25/17 (i) |
|
784,162 |
780,242 |
|
|
ESH Hospitality, Inc. Tranche B, term loan 5% 6/24/19 (i) |
|
14,550,000 |
14,604,563 |
|
|
Skilled Healthcare Group, Inc. term loan 7.1398% 4/9/16 (i) |
|
6,992,760 |
6,975,278 |
|
|
|
24,450,135 |
|||
|
INDUSTRIALS - 0.6% |
||||
|
Commercial Services & Supplies - 0.3% |
||||
|
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (i) |
|
3,970,000 |
3,865,788 |
|
|
Pilot Travel Centers LLC Tranche B, term loan 4.25% 10/3/21 (i) |
|
9,975,000 |
9,987,968 |
|
|
|
13,853,756 |
|||
|
Construction & Engineering - 0.3% |
||||
|
Drumm Investors LLC Tranche B, term loan 6.75% 5/4/18 (i) |
|
11,424,965 |
11,424,965 |
|
|
TOTAL INDUSTRIALS |
25,278,721 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
TELECOMMUNICATION SERVICES - 0.5% |
||||
|
Wireless Telecommunication Services - 0.5% |
||||
|
Crown Castle Operating Co. Tranche B 2LN, term loan 3% 1/31/21 (i) |
|
$ 9,075,185 |
$ 8,919,001 |
|
|
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (i) |
|
13,925,025 |
13,698,743 |
|
|
|
22,617,744 |
|||
|
UTILITIES - 0.8% |
||||
|
Electric Utilities - 0.6% |
||||
|
Bayonne Energy Center, LLC Tranche B, term loan 5% 8/19/21 (i) |
|
1,507,839 |
1,485,221 |
|
|
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (i) |
|
7,343,443 |
7,150,678 |
|
|
EquiPower Resources Holdings LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.25% 12/21/18 (i) |
|
4,698,016 |
4,674,526 |
|
|
Tranche C, term loan 4.25% 12/31/19 (i) |
|
1,143,014 |
1,137,299 |
|
|
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (i) |
|
3,380,107 |
3,337,856 |
|
|
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (i) |
|
6,102,475 |
5,980,425 |
|
|
Southeast Powergen LLC Tranche B, term loan 4.5% 12/2/21 (i) |
|
2,770,000 |
2,756,150 |
|
|
|
26,522,155 |
|||
|
Independent Power Producers & Renewable Electricity Producers - 0.2% |
||||
|
Calpine Corp. Tranche B 4LN, term loan 4% 10/31/20 (i) |
|
1,980,000 |
1,960,200 |
|
|
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (i) |
|
9,854,950 |
8,968,004 |
|
|
|
10,928,204 |
|||
|
TOTAL UTILITIES |
37,450,359 |
|||
|
TOTAL BANK LOAN OBLIGATIONS (Cost $368,439,360) |
|
|||
|
Preferred Securities - 0.0% |
||||
|
|
||||
|
FINANCIALS - 0.0% |
||||
|
Diversified Financial Services - 0.0% |
||||
|
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (h)(i) |
|
1,220,000 |
562,786 |
|
|
Preferred Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Thrifts & Mortgage Finance - 0.0% |
||||
|
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (h)(i) |
|
$ 500,000 |
$ 250 |
|
|
TOTAL PREFERRED SECURITIES (Cost $1,297,768) |
|
|||
|
Money Market Funds - 7.3% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
332,799,976 |
332,799,976 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
2,611,700 |
2,611,700 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $335,411,676) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $4,221,908,265) |
4,600,696,376 |
||
|
NET OTHER ASSETS (LIABILITIES) - 0.2% |
8,136,127 |
||
|
NET ASSETS - 100% |
$ 4,608,832,503 |
||
|
Currency Abbreviations |
||
|
CAD |
- |
Canadian dollar |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Non-income producing - Security is in default. |
|
(e) Amount is stated in United States dollars unless otherwise noted. |
|
(f) Security or a portion of the security is on loan at period end. |
|
(g) Affiliated company |
|
(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $701,223,927 or 15.2% of net assets. |
|
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(j) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
|
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,228,086 or 0.2% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 |
5/21/03 |
$ 66,085 |
|
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 |
3/25/03 |
$ 94,332 |
|
Stanley Martin Communities LLC Class B |
8/3/05 - 3/1/07 |
$ 4,244,623 |
|
(l) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 187,992 |
|
Fidelity Securities Lending Cash Central Fund |
17,947 |
|
Total |
$ 205,939 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
|
Acadia Realty Trust (SBI) |
$ 98,809,206 |
$ 6,057,602 |
$ - |
$ 2,810,446 |
$ 133,937,344 |
|
Arbor Realty Trust, Inc. |
21,697,653 |
- |
- |
797,934 |
21,329,376 |
|
Arbor Realty Trust, Inc. 7.375% |
8,162,637 |
2,420,000 |
- |
396,964 |
10,790,961 |
|
Arbor Realty Trust, Inc. Series A, 8.25% |
4,727,225 |
- |
- |
194,998 |
4,765,043 |
|
Arbor Realty Trust, Inc. Series B, 7.75% |
5,882,400 |
- |
- |
232,500 |
5,891,760 |
|
Arbor Realty Trust, Inc. Series C, 8.50% |
2,525,000 |
- |
- |
106,250 |
2,557,000 |
|
Total |
$ 141,804,121 |
$ 8,477,602 |
$ - |
$ 4,539,092 |
$ 179,271,484 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 15,687,755 |
$ 8,513,126 |
$ - |
$ 7,174,629 |
|
Financials |
2,259,500,569 |
2,211,834,850 |
47,665,695 |
24 |
|
Corporate Bonds |
926,557,308 |
- |
926,080,975 |
476,333 |
|
Asset-Backed Securities |
92,890,592 |
- |
87,022,531 |
5,868,061 |
|
Collateralized Mortgage Obligations |
10,618,354 |
- |
9,889,992 |
728,362 |
|
Commercial Mortgage Securities |
596,095,462 |
- |
593,619,880 |
2,475,582 |
|
Bank Loan Obligations |
363,371,624 |
- |
343,598,133 |
19,773,491 |
|
Preferred Securities |
563,036 |
- |
- |
563,036 |
|
Money Market Funds |
335,411,676 |
335,411,676 |
- |
- |
|
Total Investments in Securities: |
$ 4,600,696,376 |
$ 2,555,759,652 |
$ 2,007,877,206 |
$ 37,059,518 |
|
Valuation Inputs at Reporting Date: |
|
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
|
Investments in Securities: |
|
|
Bank Loan Obligations |
|
|
Beginning Balance |
$ 47,410,682 |
|
Net Realized Gain (Loss) on Investment Securities |
5,619 |
|
Net Unrealized Gain (Loss) on Investment Securities |
43,346 |
|
Cost of Purchases |
1,642,050 |
|
Proceeds of Sales |
(12,359,953) |
|
Amortization/Accretion |
(67,192) |
|
Transfers into Level 3 |
646,428 |
|
Transfers out of Level 3 |
(17,547,489) |
|
Ending Balance |
$ 19,773,491 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ 43,346 |
|
Other Investments in Securities |
|
|
Beginning Balance |
$ 31,191,916 |
|
Net Realized Gain (Loss) on Investment Securities |
(4,434,429) |
|
Net Unrealized Gain (Loss) on Investment Securities |
5,983,766 |
|
Cost of Purchases |
99,942 |
|
Proceeds of Sales |
(8,014,428) |
|
Amortization/Accretion |
290,537 |
|
Transfers into Level 3 |
- |
|
Transfers out of Level 3 |
(7,831,277) |
|
Ending Balance |
$ 17,286,027 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ (8,454) |
|
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
|
Other Information |
|
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
|
U.S. Government and U.S. Government Agency Obligations |
0.2% |
|
AAA,AA,A |
3.4% |
|
BBB |
10.4% |
|
BB |
9.2% |
|
B |
10.8% |
|
CCC,CC,C |
1.0% |
|
D |
0.0% |
|
Not Rated |
8.1% |
|
Equities |
49.4% |
|
Short-Term Investments and Net Other Assets |
7.5% |
|
|
100.0% |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
|
January 31, 2015 |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $2,539,082) - See accompanying schedule: Unaffiliated issuers (cost $3,757,112,385) |
$ 4,086,013,216 |
|
|
Fidelity Central Funds (cost $335,411,676) |
335,411,676 |
|
|
Other affiliated issuers (cost $129,384,204) |
179,271,484 |
|
|
Total Investments (cost $4,221,908,265) |
|
$ 4,600,696,376 |
|
Cash |
|
6,827,434 |
|
Receivable for investments sold |
|
2,213,717 |
|
Receivable for fund shares sold |
|
9,253,135 |
|
Dividends receivable |
|
3,116,137 |
|
Interest receivable |
|
18,078,147 |
|
Distributions receivable from Fidelity Central Funds |
|
45,283 |
|
Prepaid expenses |
|
6,183 |
|
Other receivables |
|
12,064 |
|
Total assets |
|
4,640,248,476 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
|
|
|
Regular delivery |
$ 16,805,792 |
|
|
Delayed delivery |
1,500,000 |
|
|
Payable for fund shares redeemed |
7,056,868 |
|
|
Accrued management fee |
2,089,026 |
|
|
Distribution and service plan fees payable |
349,293 |
|
|
Other affiliated payables |
902,571 |
|
|
Other payables and accrued expenses |
100,723 |
|
|
Collateral on securities loaned, at value |
2,611,700 |
|
|
Total liabilities |
|
31,415,973 |
|
|
|
|
|
Net Assets |
|
$ 4,608,832,503 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 4,230,459,716 |
|
Distributions in excess of net investment income |
|
(10,180,473) |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
9,765,860 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
378,787,400 |
|
Net Assets |
|
$ 4,608,832,503 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2015 |
|
|
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 11.88 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.88) |
|
$ 12.37 |
|
Class T: |
|
$ 11.89 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.89) |
|
$ 12.39 |
|
Class C: |
|
$ 11.79 |
|
|
|
|
|
Real Estate Income: |
|
$ 11.93 |
|
|
|
|
|
Institutional Class: |
|
$ 11.90 |
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
|
|
Six months ended January 31, 2015 |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends (including $4,539,092 earned from other affiliated issuers) |
|
$ 64,172,176 |
|
Interest |
|
56,773,494 |
|
Income from Fidelity Central Funds |
|
205,939 |
|
Total income |
|
121,151,609 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 11,904,033 |
|
|
Transfer agent fees |
4,675,064 |
|
|
Distribution and service plan fees |
1,959,164 |
|
|
Accounting and security lending fees |
670,766 |
|
|
Custodian fees and expenses |
32,928 |
|
|
Independent trustees' compensation |
8,930 |
|
|
Registration fees |
109,947 |
|
|
Audit |
84,607 |
|
|
Legal |
7,554 |
|
|
Miscellaneous |
12,438 |
|
|
Total expenses before reductions |
19,465,431 |
|
|
Expense reductions |
(25,516) |
19,439,915 |
|
Net investment income (loss) |
|
101,711,694 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
24,266,988 |
|
|
Foreign currency transactions |
8,566 |
|
|
Total net realized gain (loss) |
|
24,275,554 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
109,899,284 |
|
|
Assets and liabilities in foreign currencies |
(24,247) |
|
|
Total change in net unrealized appreciation (depreciation) |
|
109,875,037 |
|
Net gain (loss) |
|
134,150,591 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 235,862,285 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended January 31, |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 101,711,694 |
$ 170,741,524 |
|
Net realized gain (loss) |
24,275,554 |
105,884,376 |
|
Change in net unrealized appreciation (depreciation) |
109,875,037 |
30,348,946 |
|
Net increase (decrease) in net assets resulting from operations |
235,862,285 |
306,974,846 |
|
Distributions to shareholders from net investment income |
(146,546,341) |
(172,155,251) |
|
Distributions to shareholders from net realized gain |
(75,677,557) |
(78,297,244) |
|
Total distributions |
(222,223,898) |
(250,452,495) |
|
Share transactions - net increase (decrease) |
421,078,266 |
(6,051,637) |
|
Redemption fees |
139,170 |
438,384 |
|
Total increase (decrease) in net assets |
434,855,823 |
50,909,098 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
4,173,976,680 |
4,123,067,582 |
|
End of period (including distributions in excess of net investment income of $10,180,473 and undistributed net investment income of $34,654,174, respectively) |
$ 4,608,832,503 |
$ 4,173,976,680 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.53 |
.18 |
|
Net realized and unrealized gain (loss) |
.35 |
.44 |
.60 |
.61 |
.76 |
(.04) |
|
Total from investment operations |
.62 |
.93 |
1.14 |
1.13 |
1.29 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.51) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.74) |
(.73) |
(.60) K |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.88 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
|
Total ReturnB, C, D |
5.41% |
8.49% |
10.45% |
11.24% |
13.27% |
1.46% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.04%A |
1.06% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of fee waivers, if any |
1.04%A |
1.05% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of all reductions |
1.04%A |
1.05% |
1.07% |
1.11% |
1.12% |
1.09%A |
|
Net investment income (loss) |
4.56%A |
4.28% |
4.62% |
4.89% |
5.00% |
6.23%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 499,749 |
$ 442,271 |
$ 378,269 |
$ 137,352 |
$ 60,283 |
$ 3,830 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2013. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.52 |
.17 |
|
Net realized and unrealized gain (loss) |
.36 |
.43 |
.60 |
.62 |
.76 |
(.03) |
|
Total from investment operations |
.63 |
.92 |
1.14 |
1.14 |
1.28 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.50) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.73) K |
(.73) |
(.60) |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.89 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
|
Total ReturnB, C, D |
5.49% |
8.44% |
10.42% |
11.33% |
13.11% |
1.45% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of fee waivers, if any |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of all reductions |
1.07%A |
1.07% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Net investment income (loss) |
4.53%A |
4.26% |
4.61% |
4.90% |
4.96% |
5.92%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 57,278 |
$ 48,164 |
$ 46,198 |
$ 26,143 |
$ 7,626 |
$ 862 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.73 per share is comprised of distributions from net investment income of $.496 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) E |
.22 |
.40 |
.45 |
.44 |
.45 |
.15 |
|
Net realized and unrealized gain (loss) |
.35 |
.43 |
.60 |
.62 |
.74 |
(.03) |
|
Total from investment operations |
.57 |
.83 |
1.05 |
1.06 |
1.19 |
.12 |
|
Distributions from net investment income |
(.34) |
(.42) |
(.46) |
(.43) |
(.45) |
(.14) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.55) |
(.65) K |
(.66) |
(.53) |
(.45) |
(.14) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.79 |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
|
Total ReturnB, C, D |
5.02% |
7.66% |
9.66% |
10.49% |
12.25% |
1.29% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of fee waivers, if any |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of all reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Net investment income (loss) |
3.81%A |
3.54% |
3.88% |
4.14% |
4.23% |
5.21%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 288,754 |
$ 246,306 |
$ 204,012 |
$ 52,780 |
$ 21,555 |
$ 836 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.417 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
$ 8.21 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.54 |
.55 |
.53 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
1.73 |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.16 |
1.31 |
2.26 |
|
Distributions from net investment income |
(.40) |
(.53) |
(.55) |
(.52) |
(.51) |
(.52) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) I |
(.76) J |
(.75) |
(.62) |
(.51) |
(.52) |
|
Redemption fees added to paid in capital D, H |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.93 |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
|
Total ReturnB, C |
5.51% |
8.78% |
10.71% |
11.50% |
13.41% |
28.29% |
|
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
|
Expenses before reductions |
.83%A |
.83% |
.84% |
.90% |
.92% |
.97% |
|
Expenses net of fee waivers, if any |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Expenses net of all reductions |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Net investment income (loss) |
4.77%A |
4.50% |
4.85% |
5.12% |
5.21% |
5.60% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 2,777,817 |
$ 2,627,382 |
$ 2,884,545 |
$ 2,252,149 |
$ 1,660,063 |
$ 1,030,393 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. I Total distributions of $.62 per share is comprised of distributions from net investment income of $.404 and distributions from net realized gain of $.212 per share. J Total distributions of $.76 per share is comprised of distributions from net investment income of $.525 and distributions from net realized gain of $.236. |
||||||
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 G |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.55 |
.55 |
.19 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
(.04) |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.17 |
1.31 |
.15 |
|
Distributions from net investment income |
(.41) |
(.53) |
(.56) |
(.53) |
(.52) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) |
(.77) |
(.76) |
(.63) |
(.52) |
(.15) |
|
Redemption fees added to paid in capital D, I |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.90 |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
|
Total ReturnB, C |
5.57% |
8.76% |
10.72% |
11.62% |
13.44% |
1.58% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of fee waivers, if any |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of all reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Net investment income (loss) |
4.82%A |
4.55% |
4.89% |
5.17% |
5.24% |
6.70%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 985,236 |
$ 809,854 |
$ 610,045 |
$ 217,435 |
$ 43,282 |
$ 2,930 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period April 14, 2010 (commencement of sale of shares) to July 30, 2010. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015
1. Organization.
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 Fund offers Class A, Class T, Class C, Real Estate Income 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset-backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 481,167,029 |
|
|
Gross unrealized depreciation |
(103,467,625) |
|
|
Net unrealized appreciation (depreciation) on securities |
$ 377,699,404 |
|
|
|
|
|
|
Tax cost |
$ 4,222,996,972 |
|
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to .75% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and
Semiannual Report
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $621,113,393 and $350,563,339, respectively.
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
|
Distribution |
Service |
Total |
Retained |
|
Class A |
-% |
.25% |
$ 567,846 |
$ 16,744 |
|
Class T |
-% |
.25% |
63,531 |
- |
|
Class C |
.75% |
.25% |
1,327,787 |
435,578 |
|
|
|
|
$ 1,959,164 |
$ 452,322 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained |
|
Class A |
$ 41,899 |
|
Class T |
5,006 |
|
Class C* |
23,532 |
|
|
$ 70,437 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Class A |
$ 445,958 |
.20 |
|
Class T |
56,862 |
.22 |
|
Class C |
257,348 |
.19 |
|
Real Estate Income |
3,081,077 |
.23 |
|
Institutional Class |
833,819 |
.18 |
|
|
$ 4,675,064 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,158 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,919 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
Notes to Financial Statements - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $17,947. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19,936 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 $1,348.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Real Estate Income expenses during the period in the amount of $4,232.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Class A |
$ 15,122,863 |
$ 16,638,771 |
|
Class T |
1,684,419 |
1,842,576 |
|
Class C |
7,818,920 |
7,530,932 |
|
Real Estate Income |
90,298,969 |
117,401,887 |
|
Institutional Class |
31,621,170 |
28,741,085 |
|
Total |
$ 146,546,341 |
$ 172,155,251 |
|
From net realized gain |
|
|
|
Class A |
$ 7,958,841 |
$ 7,591,572 |
|
Class T |
875,220 |
874,881 |
|
Class C |
4,645,932 |
4,152,718 |
|
Real Estate Income |
46,720,433 |
53,508,422 |
|
Institutional Class |
15,477,131 |
12,169,651 |
|
Total |
$ 75,677,557 |
$ 78,297,244 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Class A |
|
|
|
|
|
Shares sold |
9,766,902 |
18,815,698 |
$ 114,976,560 |
$ 217,399,754 |
|
Reinvestment of distributions |
1,788,200 |
1,805,230 |
20,829,273 |
20,178,624 |
|
Shares redeemed |
(6,792,343) |
(15,738,034) |
(79,763,885) |
(180,458,692) |
|
Net increase (decrease) |
4,762,759 |
4,882,894 |
$ 56,041,948 |
$ 57,119,686 |
|
Class T |
|
|
|
|
|
Shares sold |
969,612 |
1,270,924 |
$ 11,435,988 |
$ 14,645,845 |
|
Reinvestment of distributions |
202,446 |
211,146 |
2,358,154 |
2,357,016 |
|
Shares redeemed |
(413,416) |
(1,380,258) |
(4,866,406) |
(15,703,373) |
|
Net increase (decrease) |
758,642 |
101,812 |
$ 8,927,736 |
$ 1,299,488 |
|
Class C |
|
|
|
|
|
Shares sold |
4,742,874 |
9,015,535 |
$ 55,448,980 |
$ 103,482,191 |
|
Reinvestment of distributions |
904,783 |
813,525 |
10,466,010 |
9,012,478 |
|
Shares redeemed |
(2,089,983) |
(6,508,928) |
(24,340,004) |
(73,908,752) |
|
Net increase (decrease) |
3,557,674 |
3,320,132 |
$ 41,574,986 |
$ 38,585,917 |
Semiannual Report
Notes to Financial Statements - continued
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Real Estate Income |
|
|
|
|
|
Shares sold |
29,531,997 |
61,717,695 |
$ 349,603,525 |
$ 711,894,953 |
|
Reinvestment of distributions |
10,349,604 |
13,609,464 |
121,038,299 |
152,306,330 |
|
Shares redeemed |
(27,746,338) |
(100,931,769) |
(327,687,059) |
(1,156,054,958) |
|
Net increase (decrease) |
12,135,263 |
(25,604,610) |
$ 142,954,765 |
$ (291,853,675) |
|
Institutional Class |
|
|
|
|
|
Shares sold |
23,582,339 |
40,192,476 |
$ 277,545,470 |
$ 465,679,843 |
|
Reinvestment of distributions |
2,943,991 |
2,412,058 |
34,326,111 |
27,006,597 |
|
Shares redeemed |
(11,915,809) |
(26,626,486) |
(140,292,750) |
(303,889,493) |
|
Net increase (decrease) |
14,610,521 |
15,978,048 |
$ 171,578,831 |
$ 188,796,947 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
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 schedule of investments, as of January 31, 2015, 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, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2015, by correspondence with the custodians, agent banks 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, 2015, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 20, 2015
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
REIA-USAN-0315 1.907551.104
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate Income
Fund - Institutional Class
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Institutional Class
is a class of Fidelity®
Real Estate Income Fund
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
|
|
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Class A |
1.04% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.10 |
$ 5.38 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.96 |
$ 5.30 |
|
Class T |
1.07% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.90 |
$ 5.54 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.81 |
$ 5.45 |
|
Class C |
1.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.18 |
$ 9.10 |
|
Real Estate Income |
.82% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.10 |
$ 4.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.07 |
$ 4.18 |
|
Institutional Class |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.70 |
$ 4.04 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.27 |
$ 3.97 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Five Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Equity Lifestyle Properties, Inc. |
3.0 |
2.7 |
|
Acadia Realty Trust (SBI) |
2.9 |
2.4 |
|
MFA Financial, Inc. |
2.9 |
3.2 |
|
Ventas, Inc. |
1.4 |
1.6 |
|
WP Carey, Inc. |
1.1 |
0.9 |
|
|
11.3 |
|
|
Top 5 Bonds as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 |
0.9 |
0.9 |
|
Annaly Capital Management, Inc. 5% 5/15/15 |
0.7 |
0.8 |
|
IAS Operating Partnership LP 5% 3/15/18 |
0.7 |
0.6 |
|
Standard Pacific Corp. 8.375% 5/15/18 |
0.7 |
0.8 |
|
iStar Financial, Inc. 5.875% 3/15/16 |
0.6 |
0.7 |
|
|
3.6 |
|
|
Top Five REIT Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
REITs - Mortgage |
17.2 |
17.3 |
|
REITs - Shopping Centers |
7.2 |
6.3 |
|
REITs - Health Care |
7.0 |
6.9 |
|
REITs - Management/Investment |
5.6 |
9.0 |
|
REITs - Apartments |
4.8 |
4.9 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
|
Common Stocks 30.8% |
|
|
Common Stocks 31.4% |
|
||
|
Preferred Stocks 17.6% |
|
|
Preferred Stocks 16.7% |
|
||
|
Bonds 30.7% |
|
|
Bonds 32.8% |
|
||
|
Convertible |
|
|
Convertible |
|
||
|
Other Investments 7.9% |
|
|
Other Investments 7.8% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
1.3% |
|
** Foreign investments |
2.6% |
|
||
Semiannual Report
Investments January 31, 2015
Showing Percentage of Net Assets
|
Common Stocks - 30.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 0.2% |
|||
|
Household Durables - 0.2% |
|||
|
Stanley Martin Communities LLC Class B (a)(k) |
4,620 |
$ 7,174,629 |
|
|
FINANCIALS - 30.6% |
|||
|
Capital Markets - 0.5% |
|||
|
Ellington Financial LLC |
1,114,700 |
23,352,965 |
|
|
Real Estate Investment Trusts - 29.4% |
|||
|
Acadia Realty Trust (SBI) (g) |
3,700,949 |
133,937,344 |
|
|
AG Mortgage Investment Trust, Inc. |
781,700 |
14,375,463 |
|
|
American Realty Capital Properties, Inc. |
785,434 |
7,277,046 |
|
|
American Tower Corp. |
171,300 |
16,607,535 |
|
|
Annaly Capital Management, Inc. |
1,193,000 |
12,598,080 |
|
|
Anworth Mortgage Asset Corp. |
1,572,210 |
8,159,770 |
|
|
Apartment Investment & Management Co. Class A |
1,195,700 |
47,660,602 |
|
|
Arbor Realty Trust, Inc. (g) |
3,068,975 |
21,329,376 |
|
|
AvalonBay Communities, Inc. |
149,500 |
25,862,005 |
|
|
Boardwalk (REIT) |
136,200 |
6,573,657 |
|
|
CBL & Associates Properties, Inc. |
2,180,373 |
44,959,291 |
|
|
Cedar Shopping Centers, Inc. |
830,510 |
6,610,860 |
|
|
Chambers Street Properties |
1,349,993 |
11,407,441 |
|
|
CYS Investments, Inc. |
2,094,739 |
18,517,493 |
|
|
Douglas Emmett, Inc. |
564,100 |
16,065,568 |
|
|
Dynex Capital, Inc. |
2,039,943 |
17,074,323 |
|
|
EastGroup Properties, Inc. |
81,700 |
5,281,088 |
|
|
Ellington Residential Mortgage REIT |
260,000 |
4,269,200 |
|
|
Equity Lifestyle Properties, Inc. |
2,555,260 |
139,849,378 |
|
|
Equity Residential (SBI) |
304,200 |
23,608,962 |
|
|
Excel Trust, Inc. |
2,133,328 |
29,951,925 |
|
|
Extra Space Storage, Inc. |
230,700 |
15,226,200 |
|
|
First Potomac Realty Trust |
1,381,615 |
17,684,672 |
|
|
Five Oaks Investment Corp. |
479,100 |
5,241,354 |
|
|
H&R REIT/H&R Finance Trust |
375,100 |
7,208,580 |
|
|
Hatteras Financial Corp. |
787,600 |
14,318,568 |
|
|
Lexington Corporate Properties Trust |
4,251,582 |
48,510,551 |
|
|
LTC Properties, Inc. |
386,713 |
18,144,574 |
|
|
MFA Financial, Inc. |
16,938,293 |
132,796,217 |
|
|
Mid-America Apartment Communities, Inc. |
600,300 |
47,615,796 |
|
|
Monmouth Real Estate Investment Corp. Class A |
950,073 |
11,220,362 |
|
|
National Retail Properties, Inc. |
244,200 |
10,461,528 |
|
|
New Senior Investment Group, Inc. |
1,476,243 |
24,417,059 |
|
|
Newcastle Investment Corp. |
1,447,930 |
6,414,330 |
|
|
NorthStar Realty Finance Corp. |
240,300 |
4,544,073 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Piedmont Office Realty Trust, Inc. Class A |
551,300 |
$ 10,766,889 |
|
|
Potlatch Corp. |
434,400 |
17,315,184 |
|
|
Prologis, Inc. |
371,987 |
16,791,493 |
|
|
Redwood Trust, Inc. (f) |
160,900 |
3,206,737 |
|
|
Sabra Health Care REIT, Inc. |
319,000 |
10,431,300 |
|
|
Select Income (REIT) |
473,800 |
11,783,406 |
|
|
Senior Housing Properties Trust (SBI) |
2,048,800 |
47,716,552 |
|
|
Simon Property Group, Inc. |
161,500 |
32,083,590 |
|
|
Store Capital Corp. |
484,300 |
11,119,528 |
|
|
Terreno Realty Corp. |
1,728,064 |
39,399,859 |
|
|
Two Harbors Investment Corp. |
1,821,280 |
18,795,610 |
|
|
Ventas, Inc. |
808,246 |
64,506,113 |
|
|
Washington REIT (SBI) |
224,300 |
6,439,653 |
|
|
Weyerhaeuser Co. |
704,500 |
25,256,325 |
|
|
WP Carey, Inc. |
678,500 |
48,723,085 |
|
|
WP Glimcher, Inc. |
997,963 |
17,643,986 |
|
|
|
1,357,759,581 |
||
|
Real Estate Management & Development - 0.7% |
|||
|
Brookfield Asset Management, Inc. Class A |
257,600 |
13,126,308 |
|
|
Kennedy-Wilson Holdings, Inc. |
664,021 |
17,656,318 |
|
|
|
30,782,626 |
||
|
TOTAL FINANCIALS |
1,411,895,172 |
||
|
TOTAL COMMON STOCKS (Cost $1,154,404,476) |
|
||
|
Preferred Stocks - 18.6% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 1.0% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Household Durables - 0.1% |
|||
|
William Lyon Homes, Inc. 6.50% |
50,000 |
5,187,500 |
|
|
FINANCIALS - 0.9% |
|||
|
Real Estate Investment Trusts - 0.9% |
|||
|
Alexandria Real Estate Equities, Inc. Series D 7.00% |
195,000 |
5,685,459 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Convertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Equity Commonwealth 6.50% (a) |
1,900 |
$ 46,227 |
|
|
Excel Trust, Inc. 7.00% (a)(h) |
248,200 |
6,701,400 |
|
|
Health Care REIT, Inc. Series I, 6.50% (a) |
46,800 |
3,334,500 |
|
|
Lexington Corporate Properties Trust Series C, 6.50% (a) |
468,742 |
22,895,141 |
|
|
|
38,662,727 |
||
|
TOTAL CONVERTIBLE PREFERRED STOCKS |
43,850,227 |
||
|
Nonconvertible Preferred Stocks - 17.6% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Hotels, Restaurants & Leisure - 0.1% |
|||
|
Red Lion Hotels Capital Trust 9.50% |
128,353 |
3,325,626 |
|
|
FINANCIALS - 17.5% |
|||
|
Capital Markets - 0.1% |
|||
|
Arlington Asset Investment Corp. 6.625% |
182,517 |
4,489,918 |
|
|
Real Estate Investment Trusts - 17.2% |
|||
|
AG Mortgage Investment Trust, Inc.: |
|
|
|
|
8.00% |
532,287 |
13,142,166 |
|
|
8.25% |
29,309 |
742,690 |
|
|
Alexandria Real Estate Equities, Inc. Series E, 6.45% |
145,913 |
3,820,002 |
|
|
American Capital Agency Corp.: |
|
|
|
|
8.00% |
200,000 |
5,338,000 |
|
|
Series B, 7.75% |
360,200 |
9,077,040 |
|
|
American Capital Mortgage Investment Corp. Series A, 8.125% |
248,636 |
6,260,654 |
|
|
American Home Mortgage Investment Corp.: |
|
|
|
|
Series A, 9.75% (a) |
120,300 |
12 |
|
|
Series B, 9.25% (a) |
124,100 |
12 |
|
|
American Homes 4 Rent: |
|
|
|
|
Series A, 5.00% |
425,887 |
10,762,164 |
|
|
Series B, 5.00% |
237,005 |
5,996,227 |
|
|
Series C, 5.50% |
733,281 |
18,434,684 |
|
|
American Realty Capital Properties, Inc. Series F, 6.70% |
1,353,701 |
31,229,882 |
|
|
Annaly Capital Management, Inc.: |
|
|
|
|
Series A, 7.875% |
134,900 |
3,502,004 |
|
|
Series C, 7.625% |
289,533 |
7,342,557 |
|
|
Series D, 7.50% |
621,976 |
15,785,751 |
|
|
Anworth Mortgage Asset Corp. Series A, 8.625% |
309,630 |
7,867,698 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% |
375,101 |
$ 9,842,650 |
|
|
Apollo Residential Mortgage, Inc. Series A, 8.00% |
279,276 |
6,928,838 |
|
|
Arbor Realty Trust, Inc.: |
|
|
|
|
7.375% (g) |
430,605 |
10,790,961 |
|
|
Series A, 8.25% (g) |
189,089 |
4,765,043 |
|
|
Series B, 7.75% (g) |
240,000 |
5,891,760 |
|
|
Series C, 8.50% (g) |
100,000 |
2,557,000 |
|
|
Armour Residential REIT, Inc. Series B, 7.875% |
153,654 |
3,710,744 |
|
|
Ashford Hospitality Trust, Inc.: |
|
|
|
|
Series D, 8.45% |
47,000 |
1,208,840 |
|
|
Series E, 9.00% |
140,751 |
3,729,902 |
|
|
Boston Properties, Inc. 5.25% |
10,915 |
272,438 |
|
|
Brandywine Realty Trust Series E, 6.90% |
95,000 |
2,585,900 |
|
|
Campus Crest Communities, Inc. Series A, 8.00% |
256,817 |
6,708,060 |
|
|
Capstead Mortgage Corp. Series E, 7.50% |
202,984 |
5,090,839 |
|
|
CBL & Associates Properties, Inc.: |
|
|
|
|
Series D, 7.375% |
289,876 |
7,478,801 |
|
|
Series E, 6.625% |
222,063 |
5,840,257 |
|
|
Cedar Shopping Centers, Inc. Series B, 7.25% |
399,750 |
10,473,450 |
|
|
Chesapeake Lodging Trust Series A, 7.75% |
266,916 |
7,260,115 |
|
|
Colony Financial, Inc.: |
|
|
|
|
Series A, 8.50% |
283,920 |
7,523,880 |
|
|
Series B, 7.50% |
86,432 |
2,205,745 |
|
|
Coresite Realty Corp. Series A, 7.25% |
369,799 |
9,707,224 |
|
|
Corporate Office Properties Trust Series L, 7.375% |
161,840 |
4,353,496 |
|
|
CubeSmart Series A, 7.75% |
40,000 |
1,092,400 |
|
|
CYS Investments, Inc.: |
|
|
|
|
Series A, 7.75% |
117,824 |
2,853,697 |
|
|
Series B, 7.50% |
446,667 |
10,519,008 |
|
|
DDR Corp.: |
|
|
|
|
Series J, 6.50% |
340,721 |
9,114,287 |
|
|
Series K, 6.25% |
228,888 |
6,017,466 |
|
|
Digital Realty Trust, Inc.: |
|
|
|
|
Series E, 7.00% |
219,819 |
5,708,699 |
|
|
Series G, 5.875% |
145,444 |
3,529,926 |
|
|
Series H, 7.375% |
50,000 |
1,361,000 |
|
|
DuPont Fabros Technology, Inc. Series B, 7.625% |
381,202 |
10,021,801 |
|
|
Dynex Capital, Inc.: |
|
|
|
|
Series A, 8.50% |
362,932 |
9,156,774 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Dynex Capital, Inc.: - continued |
|
|
|
|
Series B, 7.625% |
252,120 |
$ 6,113,910 |
|
|
Equity Commonwealth Series E, 7.25% |
648,952 |
16,684,556 |
|
|
Equity Lifestyle Properties, Inc. Series C, 6.75% |
950,148 |
24,675,344 |
|
|
Essex Property Trust, Inc. Series H, 7.125% |
40,000 |
1,066,800 |
|
|
Excel Trust, Inc. Series B, 8.125% |
400,000 |
10,876,000 |
|
|
First Potomac Realty Trust 7.75% |
415,296 |
10,901,520 |
|
|
Five Oaks Investment Corp. Series A, 8.75% |
100,000 |
2,530,000 |
|
|
General Growth Properties, Inc. Series A, 6.375% |
166,463 |
4,283,093 |
|
|
Gladstone Commercial Corp. Series C, 7.125% |
232,238 |
5,991,740 |
|
|
Hatteras Financial Corp. Series A, 7.625% |
514,725 |
12,482,081 |
|
|
Health Care REIT, Inc. Series J, 6.50% |
81,600 |
2,189,328 |
|
|
Hersha Hospitality Trust: |
|
|
|
|
Series B, 8.00% |
162,538 |
4,305,632 |
|
|
Series C, 6.875% |
50,000 |
1,325,000 |
|
|
Hospitality Properties Trust Series D, 7.125% |
40,800 |
1,097,112 |
|
|
Hudson Pacific Properties, Inc. 8.375% |
394,069 |
10,541,346 |
|
|
Inland Real Estate Corp.: |
|
|
|
|
Series A, 8.125% |
423,500 |
11,328,625 |
|
|
Series B, 6.95% |
245,000 |
6,374,900 |
|
|
Invesco Mortgage Capital, Inc.: |
|
|
|
|
Series A, 7.75% |
123,342 |
3,081,083 |
|
|
Series B, 7.75% |
496,477 |
12,233,193 |
|
|
Investors Real Estate Trust Series B, 7.95% |
126,572 |
3,363,018 |
|
|
iStar Financial, Inc.: |
|
|
|
|
Series E, 7.875% |
188,696 |
4,698,530 |
|
|
Series F, 7.80% |
418,693 |
10,341,717 |
|
|
Kilroy Realty Corp.: |
|
|
|
|
Series G, 6.875% |
46,760 |
1,297,590 |
|
|
Series H, 6.375% |
143,296 |
3,811,674 |
|
|
Kite Realty Group Trust 8.25% |
96,100 |
2,522,625 |
|
|
LaSalle Hotel Properties: |
|
|
|
|
Series H, 7.50% |
141,308 |
3,682,486 |
|
|
Series I, 6.375% |
354,698 |
9,246,977 |
|
|
LBA Realty Fund II: |
|
|
|
|
Series A, 8.75% (a) |
69,000 |
3,105,000 |
|
|
Series B, 7.625% |
31,240 |
718,520 |
|
|
MFA Financial, Inc.: |
|
|
|
|
8.00% |
538,930 |
13,958,287 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
MFA Financial, Inc.: - continued |
|
|
|
|
Series B, 7.50% |
614,532 |
$ 15,228,103 |
|
|
Monmouth Real Estate Investment Corp.: |
|
|
|
|
Series A, 7.625% |
80,000 |
2,096,800 |
|
|
Series B, 7.875% |
95,000 |
2,518,450 |
|
|
National Retail Properties, Inc.: |
|
|
|
|
5.70% |
376,404 |
9,327,291 |
|
|
Series D, 6.625% |
222,138 |
5,862,222 |
|
|
New York Mortgage Trust, Inc. Series B, 7.75% |
239,697 |
5,946,883 |
|
|
NorthStar Realty Finance Corp.: |
|
|
|
|
Series B, 8.25% |
225,708 |
5,782,639 |
|
|
Series C, 8.875% |
277,101 |
7,309,924 |
|
|
Series D, 8.50% |
233,915 |
6,081,790 |
|
|
Series E, 8.75% |
366,972 |
9,618,336 |
|
|
Pebblebrook Hotel Trust: |
|
|
|
|
Series A, 7.875% |
412,000 |
10,650,200 |
|
|
Series B, 8.00% |
185,085 |
4,923,261 |
|
|
Series C, 6.50% |
183,140 |
4,798,268 |
|
|
Pennsylvania (REIT) 7.375% |
100,510 |
2,663,515 |
|
|
Prologis, Inc. Series Q, 8.54% |
94,446 |
5,944,195 |
|
|
PS Business Parks, Inc.: |
|
|
|
|
Series R, 6.875% |
116,903 |
3,021,943 |
|
|
Series S, 6.45% |
93,809 |
2,474,681 |
|
|
Series T, 6.00% |
198,899 |
5,065,958 |
|
|
Series U, 5.75% |
600 |
14,880 |
|
|
Public Storage: |
|
|
|
|
5.875% (a) |
17,294 |
444,629 |
|
|
6.375% |
122,000 |
3,273,260 |
|
|
RAIT Financial Trust: |
|
|
|
|
7.125% |
322,126 |
8,008,052 |
|
|
7.625% |
224,590 |
5,468,767 |
|
|
Regency Centers Corp.: |
|
|
|
|
Series 6, 6.625% |
152,661 |
3,972,239 |
|
|
Series 7, 6.00% |
125,050 |
3,191,276 |
|
|
Resource Capital Corp. 8.625% |
156,870 |
3,608,010 |
|
|
Retail Properties America, Inc. 7.00% |
394,411 |
10,191,580 |
|
|
Sabra Health Care REIT, Inc. Series A, 7.125% |
298,123 |
8,094,039 |
|
|
Saul Centers, Inc. Series C, 6.875% |
315,478 |
8,457,965 |
|
|
Senior Housing Properties Trust 5.625% |
283,543 |
7,088,575 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Stag Industrial, Inc.: |
|
|
|
|
Series A, 9.00% |
280,000 |
$ 7,624,400 |
|
|
Series B, 6.625% |
80,300 |
2,071,740 |
|
|
Summit Hotel Properties, Inc.: |
|
|
|
|
Series A, 9.25% |
138,340 |
3,796,050 |
|
|
Series B, 7.875% |
190,173 |
5,326,746 |
|
|
Series C, 7.125% |
153,212 |
4,092,293 |
|
|
Sun Communities, Inc. Series A, 7.125% |
375,000 |
9,843,750 |
|
|
Sunstone Hotel Investors, Inc. Series D, 8.00% |
129,723 |
3,458,415 |
|
|
Taubman Centers, Inc. Series K, 6.25% |
157,322 |
4,113,970 |
|
|
Terreno Realty Corp. Series A, 7.75% |
213,690 |
5,635,005 |
|
|
UMH Properties, Inc. Series A, 8.25% |
600,000 |
15,804,000 |
|
|
Urstadt Biddle Properties, Inc.: |
|
|
|
|
6.75% |
160,000 |
4,353,600 |
|
|
Series F, 7.125% |
210,000 |
5,667,900 |
|
|
Weingarten Realty Investors (SBI) Series F, 6.50% |
49,813 |
1,260,269 |
|
|
Wells Fargo Real Estate Investment Corp. 6.375% (a) |
221,000 |
5,772,520 |
|
|
Winthrop Realty Trust 7.75% |
360,000 |
9,176,400 |
|
|
WP Glimcher, Inc.: |
|
|
|
|
6.875% (a) |
256,115 |
6,738,386 |
|
|
7.50% (a) |
198,527 |
5,112,070 |
|
|
8.125% (a) |
109,192 |
2,757,098 |
|
|
|
796,162,574 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Kennedy-Wilson, Inc. 7.75% |
321,574 |
8,290,178 |
|
|
TOTAL FINANCIALS |
808,942,670 |
||
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
812,268,296 |
||
|
TOTAL PREFERRED STOCKS (Cost $819,520,265) |
|
||
|
Corporate Bonds - 20.1% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Convertible Bonds - 4.5% |
||||
|
FINANCIALS - 4.5% |
||||
|
Consumer Finance - 0.0% |
||||
|
Zais Financial Partners LP 8% 11/15/16 (h) |
|
$ 2,000,000 |
$ 2,075,000 |
|
|
Diversified Financial Services - 0.3% |
||||
|
RWT Holdings, Inc. 5.625% 11/15/19 (h) |
|
12,190,000 |
12,447,819 |
|
|
Real Estate Investment Trusts - 3.5% |
||||
|
Annaly Capital Management, Inc. 5% 5/15/15 |
|
31,396,000 |
31,454,868 |
|
|
Apollo Commercial Real Estate Finance, Inc. 5.5% 3/15/19 |
|
5,600,000 |
5,526,500 |
|
|
Ares Commercial Real Estate Corp. 7% 12/15/15 |
|
14,700,000 |
15,049,125 |
|
|
Blackstone Mortgage Trust, Inc. 5.25% 12/1/18 |
|
5,750,000 |
6,030,313 |
|
|
Campus Crest Communities Operating Partnership LP 4.75% 10/15/18 (h) |
|
11,900,000 |
11,327,313 |
|
|
Colony Financial, Inc.: |
|
|
|
|
|
3.875% 1/15/21 |
|
9,910,000 |
10,331,175 |
|
|
5% 4/15/23 |
|
9,000,000 |
9,849,375 |
|
|
PennyMac Corp. 5.375% 5/1/20 |
|
9,690,000 |
9,266,063 |
|
|
RAIT Financial Trust 4% 10/1/33 |
|
32,665,000 |
27,418,184 |
|
|
Redwood Trust, Inc. 4.625% 4/15/18 |
|
11,200,000 |
10,843,000 |
|
|
Resource Capital Corp. 8% 1/15/20 |
|
15,200,000 |
14,549,227 |
|
|
Spirit Realty Capital, Inc. 3.75% 5/15/21 |
|
2,400,000 |
2,457,000 |
|
|
Starwood Property Trust, Inc. 3.75% 10/15/17 |
|
3,230,000 |
3,336,994 |
|
|
Starwood Waypoint Residential 4.5% 10/15/17 (h) |
|
1,965,000 |
1,965,000 |
|
|
|
159,404,137 |
|||
|
Thrifts & Mortgage Finance - 0.7% |
||||
|
IAS Operating Partnership LP 5% 3/15/18 (h) |
|
33,140,000 |
31,441,575 |
|
|
TOTAL FINANCIALS |
205,368,531 |
|||
|
Nonconvertible Bonds - 15.6% |
||||
|
CONSUMER DISCRETIONARY - 4.7% |
||||
|
Hotels, Restaurants & Leisure - 0.6% |
||||
|
FelCor Lodging LP: |
|
|
|
|
|
5.625% 3/1/23 |
|
2,000,000 |
2,035,000 |
|
|
6.75% 6/1/19 |
|
5,875,000 |
6,124,688 |
|
|
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 |
|
4,000,000 |
4,220,000 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc. 8% 10/1/20 (h) |
|
4,500,000 |
4,432,500 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
RHP Hotel Properties LP/RHP Finance Co. 5% 4/15/21 |
|
$ 2,000,000 |
$ 2,005,000 |
|
|
Times Square Hotel Trust 8.528% 8/1/26 (h) |
|
8,127,324 |
10,670,248 |
|
|
|
29,487,436 |
|||
|
Household Durables - 4.1% |
||||
|
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co. 6.875% 2/15/21 (h) |
|
10,500,000 |
9,817,500 |
|
|
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (h) |
|
2,620,000 |
2,659,300 |
|
|
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (h) |
|
1,615,000 |
1,655,375 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
4.375% 9/15/22 |
|
4,175,000 |
4,154,125 |
|
|
4.75% 5/15/17 |
|
2,000,000 |
2,075,000 |
|
|
5.75% 8/15/23 |
|
2,510,000 |
2,698,250 |
|
|
KB Home: |
|
|
|
|
|
8% 3/15/20 |
|
8,465,000 |
8,877,669 |
|
|
9.1% 9/15/17 |
|
4,985,000 |
5,570,738 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
5,520,000 |
5,492,400 |
|
|
4.5% 6/15/19 |
|
1,830,000 |
1,848,300 |
|
|
5.6% 5/31/15 |
|
6,000,000 |
6,073,200 |
|
|
6.5% 4/15/16 |
|
4,000,000 |
4,180,000 |
|
|
6.95% 6/1/18 |
|
14,280,000 |
15,493,800 |
|
|
M/I Homes, Inc. 8.625% 11/15/18 |
|
26,055,000 |
27,097,200 |
|
|
Meritage Homes Corp.: |
|
|
|
|
|
7% 4/1/22 |
|
7,525,000 |
7,938,875 |
|
|
7.15% 4/15/20 |
|
7,060,000 |
7,554,200 |
|
|
Ryland Group, Inc.: |
|
|
|
|
|
6.625% 5/1/20 |
|
1,555,000 |
1,636,638 |
|
|
8.4% 5/15/17 |
|
5,420,000 |
6,063,625 |
|
|
Standard Pacific Corp.: |
|
|
|
|
|
5.875% 11/15/24 |
|
3,250,000 |
3,225,625 |
|
|
7% 8/15/15 |
|
4,000,000 |
4,060,000 |
|
|
8.375% 5/15/18 |
|
27,853,000 |
31,421,526 |
|
|
10.75% 9/15/16 |
|
4,910,000 |
5,517,613 |
|
|
WCI Communities, Inc. 6.875% 8/15/21 |
|
1,845,000 |
1,840,388 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Household Durables - continued |
||||
|
William Lyon Homes, Inc.: |
|
|
|
|
|
7% 8/15/22 |
|
$ 4,180,000 |
$ 4,221,800 |
|
|
8.5% 11/15/20 |
|
15,550,000 |
16,599,625 |
|
|
|
187,772,772 |
|||
|
TOTAL CONSUMER DISCRETIONARY |
217,260,208 |
|||
|
CONSUMER STAPLES - 0.0% |
||||
|
Food & Staples Retailing - 0.0% |
||||
|
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 |
|
602,053 |
668,279 |
|
|
FINANCIALS - 10.2% |
||||
|
Diversified Financial Services - 0.2% |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
5.875% 2/1/22 |
|
3,680,000 |
3,762,800 |
|
|
6% 8/1/20 |
|
6,000,000 |
6,276,600 |
|
|
|
10,039,400 |
|||
|
Real Estate Investment Trusts - 7.0% |
||||
|
American Campus Communities Operating Partnership LP 4.125% 7/1/24 |
|
2,000,000 |
2,097,894 |
|
|
American Tower Corp. 3.4% 2/15/19 |
|
1,000,000 |
1,032,545 |
|
|
ARC Properties Operating Partnership LP 4.6% 2/6/24 |
|
7,000,000 |
6,820,765 |
|
|
Camden Property Trust 5% 6/15/15 |
|
1,100,000 |
1,117,846 |
|
|
CBL & Associates LP 5.25% 12/1/23 |
|
1,000,000 |
1,110,598 |
|
|
Commercial Net Lease Realty, Inc. 6.15% 12/15/15 |
|
2,526,000 |
2,631,622 |
|
|
Crown Castle International Corp. 5.25% 1/15/23 |
|
4,000,000 |
4,100,000 |
|
|
CTR Partnership LP/CareTrust Capital Corp. 5.875% 6/1/21 |
|
2,300,000 |
2,340,250 |
|
|
CubeSmart LP 4.8% 7/15/22 |
|
2,000,000 |
2,251,382 |
|
|
DDR Corp.: |
|
|
|
|
|
5.5% 5/1/15 |
|
4,000,000 |
4,041,620 |
|
|
7.5% 4/1/17 |
|
6,000,000 |
6,717,906 |
|
|
7.5% 7/15/18 |
|
8,756,000 |
10,320,995 |
|
|
7.875% 9/1/20 |
|
4,637,000 |
5,820,529 |
|
|
9.625% 3/15/16 |
|
3,836,000 |
4,198,149 |
|
|
DuPont Fabros Technology LP 5.875% 9/15/21 |
|
1,000,000 |
1,037,500 |
|
|
Equity One, Inc.: |
|
|
|
|
|
5.375% 10/15/15 |
|
3,500,000 |
3,599,099 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
Equity One, Inc.: - continued |
|
|
|
|
|
6.25% 1/15/17 |
|
$ 3,000,000 |
$ 3,254,301 |
|
|
Equity Residential 5.125% 3/15/16 |
|
7,201,000 |
7,543,163 |
|
|
HCP, Inc. 3.75% 2/1/16 |
|
10,000,000 |
10,272,390 |
|
|
Health Care Property Investors, Inc.: |
|
|
|
|
|
5.625% 5/1/17 |
|
2,980,000 |
3,254,762 |
|
|
6% 3/1/15 |
|
1,000,000 |
1,004,164 |
|
|
6% 1/30/17 |
|
2,383,000 |
2,600,725 |
|
|
7.072% 6/8/15 |
|
1,500,000 |
1,532,430 |
|
|
Health Care REIT, Inc.: |
|
|
|
|
|
3.625% 3/15/16 |
|
14,685,000 |
15,112,510 |
|
|
4.125% 4/1/19 |
|
2,000,000 |
2,159,772 |
|
|
6.2% 6/1/16 |
|
2,750,000 |
2,934,690 |
|
|
Healthcare Realty Trust, Inc.: |
|
|
|
|
|
3.75% 4/15/23 |
|
4,022,000 |
4,086,758 |
|
|
5.75% 1/15/21 |
|
3,095,000 |
3,545,388 |
|
|
6.5% 1/17/17 |
|
2,875,000 |
3,143,594 |
|
|
Highwoods/Forsyth LP: |
|
|
|
|
|
3.625% 1/15/23 |
|
1,607,000 |
1,665,979 |
|
|
5.85% 3/15/17 |
|
2,800,000 |
3,046,316 |
|
|
Hospitality Properties Trust: |
|
|
|
|
|
5% 8/15/22 |
|
3,177,000 |
3,441,650 |
|
|
5.625% 3/15/17 |
|
915,000 |
982,615 |
|
|
HRPT Properties Trust: |
|
|
|
|
|
5.75% 11/1/15 |
|
4,826,000 |
4,880,495 |
|
|
6.25% 8/15/16 |
|
9,675,000 |
10,120,563 |
|
|
6.25% 6/15/17 |
|
1,055,000 |
1,138,619 |
|
|
6.65% 1/15/18 |
|
4,246,000 |
4,692,607 |
|
|
iStar Financial, Inc.: |
|
|
|
|
|
3.875% 7/1/16 |
|
2,855,000 |
2,862,138 |
|
|
4% 11/1/17 |
|
15,000,000 |
14,662,500 |
|
|
5% 7/1/19 |
|
15,000,000 |
14,737,500 |
|
|
5.85% 3/15/17 |
|
3,587,000 |
3,676,675 |
|
|
5.875% 3/15/16 |
|
27,070,000 |
27,543,725 |
|
|
6.05% 4/15/15 |
|
14,630,000 |
14,703,150 |
|
|
7.125% 2/15/18 |
|
5,725,000 |
6,039,875 |
|
|
9% 6/1/17 |
|
9,175,000 |
10,092,500 |
|
|
MPT Operating Partnership LP/MPT Finance Corp.: |
|
|
|
|
|
6.375% 2/15/22 |
|
3,610,000 |
3,880,750 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
MPT Operating Partnership LP/MPT Finance Corp.: - continued |
|
|
|
|
|
6.875% 5/1/21 |
|
$ 2,000,000 |
$ 2,140,000 |
|
|
National Retail Properties, Inc. 3.3% 4/15/23 |
|
2,000,000 |
2,034,208 |
|
|
Nationwide Health Properties, Inc. 6% 5/20/15 |
|
5,670,000 |
5,758,588 |
|
|
Omega Healthcare Investors, Inc.: |
|
|
|
|
|
4.95% 4/1/24 |
|
2,898,000 |
3,113,495 |
|
|
6.75% 10/15/22 |
|
2,115,000 |
2,231,325 |
|
|
7.5% 2/15/20 |
|
1,000,000 |
1,042,000 |
|
|
Potlatch Corp. 7.5% 11/1/19 |
|
1,000,000 |
1,145,000 |
|
|
Prologis LP 7.625% 7/1/17 |
|
4,690,000 |
5,275,410 |
|
|
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 |
|
2,000,000 |
2,434,332 |
|
|
Select Income (REIT) 4.5% 2/1/25 |
|
5,000,000 |
5,013,565 |
|
|
Senior Housing Properties Trust: |
|
|
|
|
|
3.25% 5/1/19 |
|
2,882,000 |
2,954,223 |
|
|
4.3% 1/15/16 |
|
5,000,000 |
5,099,820 |
|
|
4.75% 5/1/24 |
|
3,988,000 |
4,244,169 |
|
|
6.75% 4/15/20 |
|
13,624,000 |
15,660,039 |
|
|
6.75% 12/15/21 |
|
8,000,000 |
9,436,832 |
|
|
United Dominion Realty Trust, Inc. 5.25% 1/15/16 |
|
4,000,000 |
4,158,416 |
|
|
WP Carey, Inc. 4% 2/1/25 |
|
5,000,000 |
5,082,560 |
|
|
|
324,674,986 |
|||
|
Real Estate Management & Development - 2.6% |
||||
|
BioMed Realty LP 3.85% 4/15/16 |
|
2,000,000 |
2,062,790 |
|
|
CBRE Group, Inc.: |
|
|
|
|
|
5% 3/15/23 |
|
6,020,000 |
6,305,950 |
|
|
5.25% 3/15/25 |
|
3,295,000 |
3,492,700 |
|
|
Corporate Office Properties LP 3.6% 5/15/23 |
|
5,000,000 |
4,965,865 |
|
|
Excel Trust LP 4.625% 5/15/24 |
|
2,403,000 |
2,569,261 |
|
|
Forestar U.S.A. Real Estate Group 8.5% 6/1/22 (h) |
|
14,565,000 |
13,945,988 |
|
|
Host Hotels & Resorts LP 5.25% 3/15/22 |
|
2,000,000 |
2,245,700 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (h) |
|
11,715,000 |
12,242,175 |
|
|
Hunt Companies, Inc. 9.625% 3/1/21 (h) |
|
4,100,000 |
4,151,250 |
|
|
Kennedy-Wilson, Inc. 5.875% 4/1/24 |
|
7,640,000 |
7,730,152 |
|
|
Mid-America Apartments LP: |
|
|
|
|
|
3.75% 6/15/24 |
|
1,663,000 |
1,739,380 |
|
|
6.05% 9/1/16 |
|
2,500,000 |
2,690,840 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Group LLC/Realogy Co.-Issuer Corp.: |
|
|
|
|
|
4.5% 4/15/19 (h) |
|
$ 4,805,000 |
$ 4,805,000 |
|
|
5.25% 12/1/21 (h) |
|
6,620,000 |
6,520,700 |
|
|
Regency Centers LP: |
|
|
|
|
|
5.25% 8/1/15 |
|
4,509,000 |
4,608,780 |
|
|
5.875% 6/15/17 |
|
400,000 |
440,389 |
|
|
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: |
|
|
|
|
|
5.25% 4/15/21 (h) |
|
2,000,000 |
1,885,000 |
|
|
5.625% 3/1/24 (h) |
|
2,270,000 |
2,111,100 |
|
|
Ventas Realty LP 1.55% 9/26/16 |
|
7,000,000 |
7,053,473 |
|
|
Ventas Realty LP/Ventas Capital Corp.: |
|
|
|
|
|
2.7% 4/1/20 |
|
3,000,000 |
3,047,694 |
|
|
3.125% 11/30/15 |
|
13,807,000 |
14,054,960 |
|
|
4% 4/30/19 |
|
2,262,000 |
2,430,551 |
|
|
Wells Operating Partnership II LP 5.875% 4/1/18 |
|
3,000,000 |
3,189,756 |
|
|
Weyerhaeuser Real Estate Co. 5.875% 6/15/24 (h) |
|
3,890,000 |
3,744,125 |
|
|
|
118,033,579 |
|||
|
Thrifts & Mortgage Finance - 0.4% |
||||
|
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp. 7.75% 2/15/18 (h) |
|
4,755,000 |
4,968,381 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (h) |
|
13,695,000 |
10,613,625 |
|
|
Wrightwood Capital LLC 1.9% 4/20/20 (d) |
|
32,294 |
476,333 |
|
|
|
16,058,339 |
|||
|
TOTAL FINANCIALS |
468,806,304 |
|||
|
HEALTH CARE - 0.6% |
||||
|
Health Care Equipment & Supplies - 0.3% |
||||
|
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: |
|
|
|
|
|
6% 10/15/21 |
|
1,370,000 |
1,431,650 |
|
|
7.75% 2/15/19 |
|
10,410,000 |
10,836,810 |
|
|
|
12,268,460 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
HEALTH CARE - continued |
||||
|
Health Care Providers & Services - 0.3% |
||||
|
Sabra Health Care LP/Sabra Capital Corp.: |
|
|
|
|
|
5.375% 6/1/23 |
|
$ 2,795,000 |
$ 2,941,738 |
|
|
5.5% 2/1/21 |
|
12,305,000 |
13,012,538 |
|
|
|
15,954,276 |
|||
|
TOTAL HEALTH CARE |
28,222,736 |
|||
|
INDUSTRIALS - 0.1% |
||||
|
Industrial Conglomerates - 0.1% |
||||
|
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 |
|
3,050,000 |
3,126,250 |
|
|
INFORMATION TECHNOLOGY - 0.0% |
||||
|
Internet Software & Services - 0.0% |
||||
|
CyrusOne LP/CyrusOne Finance Corp. 6.375% 11/15/22 |
|
3,000,000 |
3,105,000 |
|
|
TOTAL NONCONVERTIBLE BONDS |
721,188,777 |
|||
|
TOTAL CORPORATE BONDS (Cost $898,339,846) |
|
|||
|
Asset-Backed Securities - 2.0% |
||||
|
|
||||
|
American Homes 4 Rent: |
|
|
|
|
|
Series 2014-SFR2 Class E, 6.231% 10/17/36 (h) |
|
3,000,000 |
3,146,872 |
|
|
Series 2014-SFR3 Class E, 6.418% 12/17/36 (h) |
|
8,575,000 |
9,114,868 |
|
|
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.668% 3/20/50 (h)(i) |
|
2,250,000 |
225 |
|
|
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (h) |
|
889,889 |
918,455 |
|
|
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 |
|
500,000 |
423,463 |
|
|
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A Class D, 9% 12/28/35 (h) |
|
462,183 |
455,897 |
|
|
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 |
|
7,094,402 |
6,934,736 |
|
|
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6006% 11/28/39 (h)(i) |
|
620,905 |
62 |
|
|
Asset-Backed Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
Green Tree Financial Corp.: |
|
|
|
|
|
Series 1996-4 Class M1, 7.75% 6/15/27 |
|
$ 1,737,103 |
$ 1,717,298 |
|
|
Series 1997-3 Class M1, 7.53% 3/15/28 |
|
6,901,849 |
5,998,414 |
|
|
HLSS Servicer Advance Receivables Backed Notes Series 2013-T2 Class D2, 2.388% 5/16/44 (h) |
|
3,000,000 |
2,998,500 |
|
|
Invitation Homes Trust: |
|
|
|
|
|
Series 2013-SFR1 Class F, 3.9% 12/17/30 (h)(i) |
|
1,750,000 |
1,722,343 |
|
|
Series 2014-SFR1: |
|
|
|
|
|
Class E, 3.412% 6/17/31 (h)(i) |
|
10,000,000 |
9,859,362 |
|
|
Class F, 3.918% 6/17/31 (h)(i) |
|
9,504,000 |
9,371,769 |
|
|
Series 2014-SFR3: |
|
|
|
|
|
Class E, 4.662% 12/17/31 (h)(i) |
|
4,336,000 |
4,411,787 |
|
|
Class F, 5.162% 12/17/31 (h)(i) |
|
2,215,000 |
2,258,088 |
|
|
Series 2015-SRF1 Class F, 4.7165% 3/17/32 (h)(i) |
|
5,500,000 |
5,525,020 |
|
|
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 |
|
985,351 |
481,986 |
|
|
Merit Securities Corp. Series 13 Class M1, 7.8478% 12/28/33 (i) |
|
1,923,000 |
2,035,399 |
|
|
Mesa West Capital CDO Ltd. Series 2007-1A Class A2, 0.4583% 2/25/47 (h)(i) |
|
6,298,738 |
6,177,172 |
|
|
Progress Residential Trust Series 2015-SFR1 Class E, 4.1668% 2/17/32 (h)(i)(l) |
|
1,500,000 |
1,508,130 |
|
|
Starwood Waypoint Residential Trust Series 2014-1 Class F, 4.7072% 1/17/32 (h)(i) |
|
4,071,000 |
4,097,879 |
|
|
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.8824% 2/5/36 (h)(i) |
|
3,859,088 |
386 |
|
|
Wachovia Ltd./Wachovia LLC: |
|
|
|
|
|
Series 2006-1 Class 1ML, 5.7546% 9/25/26 (h)(i) |
|
2,000,000 |
1,927,400 |
|
|
Series 2006-1A: |
|
|
|
|
|
Class H, 1.9046% 9/25/26 (h)(i) |
|
1,087,896 |
1,074,297 |
|
|
Class J, 3.0046% 9/25/26 (h)(i) |
|
1,500,000 |
1,466,250 |
|
|
Class K, 3.5046% 9/25/26 (h)(i) |
|
2,475,000 |
2,401,493 |
|
|
Class L, 4.2546% 9/25/26 (h)(i) |
|
1,500,000 |
1,451,550 |
|
|
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: |
|
|
|
|
|
Class A1, 0.5511% 11/21/40 (h)(i) |
|
5,329,074 |
5,235,816 |
|
|
Class F, 2.1811% 11/21/40 (h)(i) |
|
250,000 |
175,675 |
|
|
TOTAL ASSET-BACKED SECURITIES (Cost $95,402,510) |
|
|||
|
Collateralized Mortgage Obligations - 0.2% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Private Sponsor - 0.2% |
||||
|
Countrywide Home Loans, Inc.: |
|
|
|
|
|
Series 2002-R2 Class 2B3, 3.6319% 7/25/33 (h)(i) |
|
$ 173,540 |
$ 41,066 |
|
|
Series 2003-R3 Class B2, 5.5% 11/25/33 (h) |
|
933,707 |
83,104 |
|
|
Series 2004-R1 Class 1B3, 3.6561% 11/25/34 (h)(i) |
|
16,239 |
322 |
|
|
FREMF Mortgage Trust: |
|
|
|
|
|
Series 2010-K6 Class B, 5.3577% 12/25/46 (h)(i) |
|
4,500,000 |
5,076,041 |
|
|
Series 2010-K7 Class B, 5.4347% 4/25/20 (h)(i) |
|
3,200,000 |
3,630,426 |
|
|
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (h) |
|
1,131,190 |
1,172,263 |
|
|
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B Class B9, 12.1117% 6/10/35 (h)(i) |
|
135,805 |
143,891 |
|
|
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (h) |
|
12,394 |
11,262 |
|
|
RESIX Finance Ltd. floater: |
|
|
|
|
|
Series 2003-D Class B8, 6.6663% 12/10/35 (h)(i) |
|
153,030 |
39,357 |
|
|
Series 2004-A Class B7, 4.4163% 2/10/36 (h)(i) |
|
158,503 |
52,336 |
|
|
Series 2004-B Class B7, 4.1663% 2/10/36 (h)(i) |
|
197,513 |
190,189 |
|
|
TOTAL PRIVATE SPONSOR |
10,440,257 |
|||
|
U.S. Government Agency - 0.0% |
||||
|
Fannie Mae REMIC Trust: |
|
|
|
|
|
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) |
|
102,802 |
31,345 |
|
|
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.112% 2/25/42 (h)(i) |
|
76,983 |
53,691 |
|
|
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 (i)(k) |
|
163,946 |
22,112 |
|
|
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.073% 6/25/43 (h)(i) |
|
117,448 |
49,237 |
|
|
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 2.8985% 10/25/42 (h)(i) |
|
46,599 |
21,712 |
|
|
TOTAL U.S. GOVERNMENT AGENCY |
178,097 |
|||
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $10,120,216) |
|
|||
|
Commercial Mortgage Securities - 12.9% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (h) |
|
$ 2,000,000 |
$ 2,323,686 |
|
|
Banc of America Commercial Mortgage Trust: |
|
|
|
|
|
Series 2005-1 Class CJ, 5.2832% 11/10/42 (i) |
|
3,580,000 |
3,576,828 |
|
|
Series 2005-5 Class D, 5.2138% 10/10/45 (i) |
|
4,000,000 |
4,031,184 |
|
|
Series 2005-6 Class AJ, 5.1523% 9/10/47 (i) |
|
5,000,000 |
5,152,355 |
|
|
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4348% 3/11/39 (i) |
|
5,700,000 |
5,859,568 |
|
|
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5753% 4/12/38 (h)(i) |
|
2,520,000 |
2,673,382 |
|
|
BLCP Hotel Trust: |
|
|
|
|
|
floater Series 2014-CLRN Class F, 3.2006% 8/15/29 (h)(i) |
|
2,500,000 |
2,369,225 |
|
|
Series 2014-CLMZ Class M, 5.8945% 8/15/29 (h)(i) |
|
11,673,000 |
11,537,078 |
|
|
Boca Hotel Portfolio Trust Series 2013-BOCA Class E, 3.9165% 8/15/26 (h)(i) |
|
2,500,000 |
2,502,820 |
|
|
Carefree Portfolio Trust floater: |
|
|
|
|
|
Series 2014-CARE: |
|
|
|
|
|
Class E, 4.167% 11/15/19 (h)(i) |
|
4,073,000 |
4,078,015 |
|
|
Class F, 2.7507% 11/15/19 (h)(i) |
|
1,650,000 |
1,520,191 |
|
|
Series 2014-CMZA Class MZA, 6.1435% 11/15/19 (h)(i) |
|
14,382,000 |
14,408,539 |
|
|
CGBAM Commercial Mortgage Trust floater Series 2014-HD Class E, 3.1608% 2/15/31 (h)(i) |
|
5,769,000 |
5,715,908 |
|
|
Citigroup Commercial Mortgage Trust Series 2013-GC15 Class D, 5.1061% 9/10/46 (h)(i) |
|
2,750,000 |
2,794,176 |
|
|
COMM Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (h) |
|
7,300,000 |
5,994,453 |
|
|
Series 2012-CR5 Class D, 4.3354% 12/10/45 (h)(i) |
|
2,000,000 |
2,100,636 |
|
|
Series 2013-CR10 Class D, 4.958% 8/10/46 (h)(i) |
|
2,000,000 |
1,991,795 |
|
|
Series 2013-CR12 Class D, 5.0853% 10/10/46 (h)(i) |
|
4,000,000 |
4,102,192 |
|
|
Series 2013-CR9 Class D, 4.2592% 7/10/45 (h)(i) |
|
4,255,000 |
4,127,346 |
|
|
Series 2013-LC6 Class D, 4.2879% 1/10/46 (h)(i) |
|
3,870,000 |
3,781,578 |
|
|
Series 2014-UBS2 Class D, 5.0157% 3/10/47 (h)(i) |
|
3,713,000 |
3,665,908 |
|
|
Commercial Mortgage Acceptance Corp. Series 1998-C2 Class J, 5.44% 9/15/30 (h) |
|
2,081,591 |
2,009,060 |
|
|
Commercial Mortgage Trust pass-thru certificates: |
|
|
|
|
|
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) |
|
5,000,000 |
5,088,910 |
|
|
Series 2012-CR1: |
|
|
|
|
|
Class C, 5.3596% 5/15/45 (i) |
|
1,000,000 |
1,135,256 |
|
|
Class D, 5.3596% 5/15/45 (h)(i) |
|
5,550,000 |
5,961,588 |
|
|
Series 2012-CR2: |
|
|
|
|
|
Class D, 4.8575% 8/15/45 (h)(i) |
|
4,500,000 |
4,899,105 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Commercial Mortgage Trust pass-thru certificates: - continued |
|
|
|
|
|
Series 2012-CR2: |
|
|
|
|
|
Class E, 4.8575% 8/15/45 (h)(i) |
|
$ 6,000,000 |
$ 6,249,660 |
|
|
Series 2012-LC4: |
|
|
|
|
|
Class C, 5.6468% 12/10/44 (i) |
|
2,000,000 |
2,291,648 |
|
|
Class D, 5.6468% 12/10/44 (h)(i) |
|
8,000,000 |
8,757,496 |
|
|
Credit Suisse First Boston Mortgage Securities Corp.: |
|
|
|
|
|
Series 1998-C1 Class F, 6% 5/17/40 (h) |
|
1,359,418 |
1,468,042 |
|
|
Series 1998-C2 Class F, 6.75% 11/15/30 (h) |
|
1,882,248 |
1,946,092 |
|
|
DBUBS Mortgage Trust Series 2011-LC1A: |
|
|
|
|
|
Class E, 5.5573% 11/10/46 (h)(i) |
|
12,490,000 |
13,907,178 |
|
|
Class G, 4.652% 11/10/46 (h) |
|
9,843,000 |
8,730,711 |
|
|
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 |
|
3,746 |
3,742 |
|
|
Extended Stay America Trust Series 2013-ESH7 Class C7, 3.9017% 12/5/31 (h) |
|
500,000 |
518,702 |
|
|
Freddie Mac: |
|
|
|
|
|
pass-thru certificates: |
|
|
|
|
|
Series K011 Class X3, 2.5752% 12/25/43 (i)(j) |
|
12,206,096 |
1,612,669 |
|
|
Series K012 Class X3, 2.288% 1/25/41 (i)(j) |
|
21,072,886 |
2,492,691 |
|
|
Series K013 Class X3, 2.8068% 1/25/43 (i)(j) |
|
14,360,000 |
2,101,844 |
|
|
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) |
|
7,430,000 |
1,438,417 |
|
|
GMAC Commercial Mortgage Securities, Inc. Series 1997-C2 Class G, 6.75% 4/15/29 (i) |
|
634,170 |
682,090 |
|
|
GP Portfolio Trust Series 2014-GPP Class E, 4.017% 2/15/27 (h)(i) |
|
2,823,000 |
2,810,253 |
|
|
Greenwich Capital Commercial Funding Corp. Series 2006-GG7 Class A4, 5.8188% 7/10/38 (i) |
|
7,889,075 |
8,231,650 |
|
|
GS Mortgage Securities Corp. II Series 2010-C1: |
|
|
|
|
|
Class D, 6.0409% 8/10/43 (h)(i) |
|
4,000,000 |
4,472,448 |
|
|
Class E, 4% 8/10/43 (h) |
|
3,770,000 |
3,473,075 |
|
|
GS Mortgage Securities Trust: |
|
|
|
|
|
Series 2010-C2 Class D, 5.2225% 12/10/43 (h)(i) |
|
3,000,000 |
3,236,121 |
|
|
Series 2011-GC5: |
|
|
|
|
|
Class C, 5.3067% 8/10/44 (h)(i) |
|
9,000,000 |
10,212,705 |
|
|
Class D, 5.3067% 8/10/44 (h)(i) |
|
4,000,000 |
4,332,108 |
|
|
Class E, 5.3067% 8/10/44 (h)(i) |
|
4,049,000 |
3,890,429 |
|
|
Class F, 4.5% 8/10/44 (h) |
|
4,500,000 |
3,732,750 |
|
|
Series 2012-GC6: |
|
|
|
|
|
Class C, 5.6379% 1/10/45 (h)(i) |
|
3,600,000 |
4,118,888 |
|
|
Class D, 5.6379% 1/10/45 (h)(i) |
|
2,000,000 |
2,154,417 |
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class C, 5.7228% 5/10/45 (i) |
|
6,500,000 |
7,449,738 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
GS Mortgage Securities Trust: - continued |
|
|
|
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class D, 5.7228% 5/10/45 (h)(i) |
|
$ 3,000,000 |
$ 3,236,777 |
|
|
Class E, 5% 5/10/45 (h) |
|
6,920,000 |
6,567,582 |
|
|
Series 2012-GCJ9 Class D, 4.858% 11/10/45 (h)(i) |
|
2,000,000 |
2,034,458 |
|
|
Series 2013-GC16: |
|
|
|
|
|
Class D, 5.323% 11/10/46 (h)(i) |
|
3,750,000 |
3,865,215 |
|
|
Class F, 3.5% 11/10/46 (h) |
|
7,303,000 |
5,728,145 |
|
|
Hilton U.S.A. Trust: |
|
|
|
|
|
floater Series 2014-ORL Class E, 3.4108% 7/15/29 (h)(i) |
|
7,241,000 |
7,061,677 |
|
|
Series 2013-HLT Class EFX, 5.2216% 11/5/30 (h)(i) |
|
5,000,000 |
5,135,126 |
|
|
Invitation Homes Trust floater Series 2013-SFR1 Class E, 2.9% 12/17/30 (h)(i) |
|
1,500,000 |
1,449,049 |
|
|
JPMorgan Chase Commercial Mortgage Securities Corp.: |
|
|
|
|
|
Series 2003-C1 Class F, 5.6564% 1/12/37 (h)(i) |
|
1,000,000 |
1,010,226 |
|
|
Series 2009-IWST: |
|
|
|
|
|
Class C, 7.4453% 12/5/27 (h)(i) |
|
3,000,000 |
3,692,982 |
|
|
Class D, 7.4453% 12/5/27 (h)(i) |
|
9,550,000 |
11,622,579 |
|
|
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (h) |
|
9,000,000 |
9,565,786 |
|
|
Series 2010-CNTR: |
|
|
|
|
|
Class D, 6.1838% 8/5/32 (h)(i) |
|
4,500,000 |
5,237,060 |
|
|
Class XB, 0.9305% 8/5/32 (h)(i)(j) |
|
32,655,000 |
1,276,494 |
|
|
Series 2012-CBX: |
|
|
|
|
|
Class C, 5.2402% 6/15/45 (i) |
|
4,530,000 |
5,054,817 |
|
|
Class F, 4% 6/15/45 (h) |
|
5,000,000 |
4,467,280 |
|
|
Class G 4% 6/15/45 (h) |
|
4,044,000 |
3,127,588 |
|
|
JPMorgan Chase Commercial Mortgage Securities Trust: |
|
|
|
|
|
floater: |
|
|
|
|
|
Series 2013-JWMZ Class M, 6.1665% 4/15/18 (h)(i) |
|
2,137,531 |
2,138,672 |
|
|
Series 2013-JWRZ Class E, 3.9065% 4/15/30 (h)(i) |
|
3,400,000 |
3,403,125 |
|
|
Series 2014-FBLU Class E, 3.661% 12/15/28 (h)(i) |
|
2,000,000 |
1,997,176 |
|
|
Series 2014-INN: |
|
|
|
|
|
Class E, 3.767% 6/15/29 (h)(i) |
|
9,607,000 |
9,619,998 |
|
|
Class F, 4.167% 6/15/29 (h)(i) |
|
9,618,000 |
9,650,518 |
|
|
Series 2005-LDP5 Class AJ, 5.3574% 12/15/44 (i) |
|
3,470,000 |
3,561,233 |
|
|
Series 2011-C4 Class F, 3.873% 7/15/46 (h) |
|
1,400,000 |
1,296,056 |
|
|
Series 2011-C5 Class C, 5.3229% 8/15/46 (h)(i) |
|
6,525,375 |
7,405,289 |
|
|
Series 2013-LC11 Class D, 4.2405% 4/15/46 (i) |
|
3,750,000 |
3,668,904 |
|
|
Series 2014-DSTY Class E, 3.8046% 6/10/27 (h)(i) |
|
2,525,000 |
2,358,597 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8 Class H, 6% 7/15/31 (h) |
|
$ 1,090,120 |
$ 1,010,366 |
|
|
LB-UBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2005-C3 Class AJ, 4.843% 7/15/40 |
|
6,620,000 |
6,666,611 |
|
|
Series 2005-C7 Class AJ, 5.323% 11/15/40 (i) |
|
8,000,000 |
8,196,712 |
|
|
Series 2006-C7 Class AM, 5.378% 11/15/38 |
|
2,040,000 |
2,162,879 |
|
|
Series 2005-C1 Class E, 4.924% 2/15/40 |
|
4,000,000 |
4,007,876 |
|
|
Series 2006-C4: |
|
|
|
|
|
Class A4, 5.8331% 6/15/38 (i) |
|
4,785,122 |
5,013,588 |
|
|
Class AJ, 5.8531% 6/15/38 (i) |
|
7,005,000 |
7,288,268 |
|
|
Class AM, 5.8531% 6/15/38 (i) |
|
6,700,000 |
7,097,712 |
|
|
LSTAR Commercial Mortgage Trust: |
|
|
|
|
|
Series 2011-1 Class D, 5.3544% 6/25/43 (h)(i) |
|
4,699,000 |
4,763,974 |
|
|
Series 2014-2: |
|
|
|
|
|
Class D, 5.1491% 1/20/41 (h)(i) |
|
3,000,000 |
2,914,728 |
|
|
Class E, 5.1491% 1/20/41 (h)(i) |
|
4,800,000 |
4,106,578 |
|
|
Mach One Trust LLC Series 2004-1A Class H, 6.2229% 5/28/40 (h)(i) |
|
2,840,000 |
2,868,400 |
|
|
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: |
|
|
|
|
|
Class F, 4.384% 7/12/37 |
CAD |
710,000 |
553,206 |
|
|
Class G, 4.384% 7/12/37 |
CAD |
355,000 |
275,440 |
|
|
Class H, 4.384% 7/12/37 |
CAD |
236,000 |
182,343 |
|
|
Class J, 4.384% 7/12/37 |
CAD |
355,000 |
273,145 |
|
|
Class K, 4.384% 7/12/37 |
CAD |
355,000 |
272,013 |
|
|
Class L, 4.384% 7/12/37 |
CAD |
236,000 |
180,085 |
|
|
Class M, 4.384% 7/12/37 |
CAD |
995,000 |
739,350 |
|
|
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6771% 5/12/39 (i) |
|
1,200,000 |
1,258,271 |
|
|
Mezz Capital Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2004-C1 Class A, 4.836% 1/15/37 (h) |
|
11,995 |
11,965 |
|
|
Series 2004-C2 Class A, 5.318% 10/15/40 (h) |
|
3,101 |
3,101 |
|
|
Series 2004-C1 Class IO, 8.9377% 1/15/37 (h)(i)(j) |
|
391,202 |
11,267 |
|
|
Morgan Stanley BAML Trust: |
|
|
|
|
|
Series 2012-C6 Class D, 4.6617% 11/15/45 (h)(i) |
|
2,000,000 |
2,110,712 |
|
|
Series 2013-C12 Class D, 4.7686% 10/15/46 (h)(i) |
|
3,250,000 |
3,227,257 |
|
|
Series 2013-C13 Class D, 4.8954% 11/15/46 (h)(i) |
|
3,100,000 |
3,094,200 |
|
|
Series 2013-C7 Class E, 4.3017% 2/15/46 (h)(i) |
|
1,000,000 |
891,623 |
|
|
Series 2013-C9 Class D, 4.1589% 5/15/46 (h)(i) |
|
5,000,000 |
4,858,790 |
|
|
Morgan Stanley Capital I Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2006-HQ10 Class AM, 5.36% 11/12/41 |
|
8,200,000 |
8,727,916 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Morgan Stanley Capital I Trust: - continued |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2012-C4 Class E, 5.525% 3/15/45 (h)(i) |
|
$ 5,630,000 |
$ 6,061,083 |
|
|
Series 1997-RR Class F, 7.4345% 4/30/39 (h)(i) |
|
846,456 |
848,572 |
|
|
Series 1998-CF1 Class G, 7.35% 7/15/32 (h) |
|
2,640,173 |
2,591,026 |
|
|
Series 2005-HQ5 Class B, 5.272% 1/14/42 |
|
168,455 |
168,480 |
|
|
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) |
|
2,500,000 |
2,527,518 |
|
|
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 |
|
7,500,000 |
7,990,373 |
|
|
Series 2011-C1 Class C, 5.2512% 9/15/47 (h)(i) |
|
4,000,000 |
4,506,092 |
|
|
Series 2011-C2: |
|
|
|
|
|
Class D, 5.304% 6/15/44 (h)(i) |
|
4,610,000 |
5,098,503 |
|
|
Class E, 5.304% 6/15/44 (h)(i) |
|
9,600,000 |
10,320,413 |
|
|
Class F, 5.304% 6/15/44 (h)(i) |
|
4,440,000 |
4,337,662 |
|
|
Class XB, 0.4589% 6/15/44 (h)(i)(j) |
|
63,708,222 |
1,794,278 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.1828% 7/15/49 (h)(i) |
|
2,000,000 |
2,222,734 |
|
|
Class D, 5.1828% 7/15/49 (h)(i) |
|
7,400,000 |
8,084,567 |
|
|
Series 2012-C4 Class D, 5.525% 3/15/45 (h)(i) |
|
6,310,000 |
7,011,571 |
|
|
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (h) |
|
4,404,349 |
5,716,845 |
|
|
RBSCF Trust Series 2010-MB1 Class D, 5.1367% 4/15/24 (h)(i) |
|
9,049,000 |
9,071,224 |
|
|
SCG Trust Series 2013-SRP1 Class D, 3.4999% 11/15/26 (h)(i) |
|
1,000,000 |
978,494 |
|
|
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5597% 8/15/39 (i) |
|
2,080,000 |
2,131,393 |
|
|
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (h) |
|
10,630,000 |
11,110,115 |
|
|
UBS Commercial Mortgage Trust Series 2012-C1 Class D, 5.5426% 5/10/45 (h)(i) |
|
3,235,000 |
3,457,073 |
|
|
UBS-Barclays Commercial Mortgage Trust sequential payer Series 2012-C3 Class A1, 0.726% 8/10/49 |
|
2,249,994 |
2,234,095 |
|
|
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8876% 1/10/45 (h)(i) |
|
3,000,000 |
3,603,720 |
|
|
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (h) |
|
2,540,000 |
3,011,345 |
|
|
Wachovia Bank Commercial Mortgage Trust: |
|
|
|
|
|
Series 2004-C11: |
|
|
|
|
|
Class D, 5.1384% 1/15/41 (i) |
|
5,177,000 |
5,290,252 |
|
|
Class E, 5.1884% 1/15/41 (i) |
|
3,785,000 |
3,878,998 |
|
|
Series 2004-C12 Class D, 5.4173% 7/15/41 (i) |
|
928,145 |
929,070 |
|
|
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7778% 10/15/45 (h)(i) |
|
9,999,000 |
10,284,931 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
WF-RBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (h) |
|
$ 4,000,000 |
$ 3,338,000 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.335% 3/15/44 (h) |
|
4,900,000 |
5,482,287 |
|
|
Class D, 5.5496% 3/15/44 (h)(i) |
|
1,000,000 |
1,099,016 |
|
|
Class E, 5% 3/15/44 (h) |
|
3,000,000 |
2,846,802 |
|
|
Series 2011-C5: |
|
|
|
|
|
Class F, 5.25% 11/15/44 (h)(i) |
|
3,000,000 |
2,840,313 |
|
|
Class G, 5.25% 11/15/44 (h)(i) |
|
2,000,000 |
1,774,200 |
|
|
Series 2012-C10 Class E, 4.4581% 12/15/45 (h)(i) |
|
4,090,000 |
3,621,032 |
|
|
Series 2012-C7: |
|
|
|
|
|
Class D, 4.8452% 6/15/45 (h)(i) |
|
2,380,000 |
2,565,326 |
|
|
Class F, 4.5% 6/15/45 (h) |
|
2,000,000 |
1,783,920 |
|
|
Series 2013-C11: |
|
|
|
|
|
Class D, 4.1819% 3/15/45 (h)(i) |
|
5,830,000 |
5,729,485 |
|
|
Class E, 4.1819% 3/15/45 (h)(i) |
|
4,780,000 |
4,152,807 |
|
|
Series 2013-C13 Class D, 4.2791% 5/15/45 (h)(i) |
|
4,000,000 |
3,884,716 |
|
|
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $538,972,148) |
|
|||
|
Bank Loan Obligations - 7.9% |
||||
|
|
||||
|
CONSUMER DISCRETIONARY - 2.7% |
||||
|
Hotels, Restaurants & Leisure - 2.0% |
||||
|
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (i) |
|
13,305,302 |
12,689,931 |
|
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (i) |
|
9,243,550 |
8,527,175 |
|
|
CityCenter Holdings LLC Tranche B, term loan 4.25% 10/16/20 (i) |
|
4,067,130 |
4,041,914 |
|
|
Cooper Hotel Group 12% 11/6/17 |
|
13,243,994 |
13,906,193 |
|
|
Four Seasons Holdings, Inc. Tranche 2LN, term loan 6.25% 12/27/20 (i) |
|
2,150,000 |
2,144,625 |
|
|
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (i) |
|
26,674,479 |
26,407,734 |
|
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (i) |
|
14,265,248 |
14,158,258 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (i) |
|
$ 8,156,115 |
$ 8,023,578 |
|
|
Ryman Hospitality Properties, Inc. Tranche B, term loan 3.75% 1/15/21 (i) |
|
2,278,550 |
2,278,550 |
|
|
|
92,177,958 |
|||
|
Media - 0.2% |
||||
|
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (i) |
|
8,295,000 |
8,149,838 |
|
|
Multiline Retail - 0.3% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (i) |
|
15,463,647 |
15,289,681 |
|
|
Specialty Retail - 0.2% |
||||
|
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 4.25% 10/11/18 (i) |
|
6,245,355 |
6,182,902 |
|
|
TOTAL CONSUMER DISCRETIONARY |
121,800,379 |
|||
|
CONSUMER STAPLES - 0.3% |
||||
|
Food & Staples Retailing - 0.3% |
||||
|
Albertson's LLC: |
|
|
|
|
|
Tranche B 2LN, term loan 4.75% 3/21/19 (i) |
|
5,123,347 |
5,104,134 |
|
|
Tranche B 3LN, term loan 4% 8/25/19 (i) |
|
8,485,000 |
8,431,969 |
|
|
|
13,536,103 |
|||
|
ENERGY - 0.4% |
||||
|
Oil, Gas & Consumable Fuels - 0.4% |
||||
|
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) |
|
7,184,245 |
7,166,285 |
|
|
Panda Temple Power, LLC term loan 7.25% 4/3/19 (i) |
|
8,580,000 |
8,440,575 |
|
|
TPF II Power, LLC Tranche B, term loan 5.5% 10/2/21 (i) |
|
4,260,000 |
4,270,650 |
|
|
|
19,877,510 |
|||
|
FINANCIALS - 2.1% |
||||
|
Diversified Financial Services - 0.4% |
||||
|
Blackstone 9.98% 10/1/17 |
|
17,089,815 |
17,089,815 |
|
|
Real Estate Investment Trusts - 0.2% |
||||
|
Starwood Property Trust, Inc. Tranche B, term loan 3.5% 4/17/20 (i) |
|
10,878,128 |
10,592,577 |
|
|
Real Estate Management & Development - 1.0% |
||||
|
CityCenter 8.74% 7/10/15 (i) |
|
3,307,347 |
3,307,347 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (i) |
|
$ 422,724 |
$ 415,326 |
|
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (i) |
|
44,245,717 |
43,582,031 |
|
|
|
47,304,704 |
|||
|
Thrifts & Mortgage Finance - 0.5% |
||||
|
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (i) |
|
25,099,143 |
23,373,577 |
|
|
TOTAL FINANCIALS |
98,360,673 |
|||
|
HEALTH CARE - 0.5% |
||||
|
Health Care Providers & Services - 0.5% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
Tranche D, term loan 4.25% 1/27/21 (i) |
|
2,090,052 |
2,090,052 |
|
|
Tranche E, term loan 3.4856% 1/25/17 (i) |
|
784,162 |
780,242 |
|
|
ESH Hospitality, Inc. Tranche B, term loan 5% 6/24/19 (i) |
|
14,550,000 |
14,604,563 |
|
|
Skilled Healthcare Group, Inc. term loan 7.1398% 4/9/16 (i) |
|
6,992,760 |
6,975,278 |
|
|
|
24,450,135 |
|||
|
INDUSTRIALS - 0.6% |
||||
|
Commercial Services & Supplies - 0.3% |
||||
|
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (i) |
|
3,970,000 |
3,865,788 |
|
|
Pilot Travel Centers LLC Tranche B, term loan 4.25% 10/3/21 (i) |
|
9,975,000 |
9,987,968 |
|
|
|
13,853,756 |
|||
|
Construction & Engineering - 0.3% |
||||
|
Drumm Investors LLC Tranche B, term loan 6.75% 5/4/18 (i) |
|
11,424,965 |
11,424,965 |
|
|
TOTAL INDUSTRIALS |
25,278,721 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
TELECOMMUNICATION SERVICES - 0.5% |
||||
|
Wireless Telecommunication Services - 0.5% |
||||
|
Crown Castle Operating Co. Tranche B 2LN, term loan 3% 1/31/21 (i) |
|
$ 9,075,185 |
$ 8,919,001 |
|
|
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (i) |
|
13,925,025 |
13,698,743 |
|
|
|
22,617,744 |
|||
|
UTILITIES - 0.8% |
||||
|
Electric Utilities - 0.6% |
||||
|
Bayonne Energy Center, LLC Tranche B, term loan 5% 8/19/21 (i) |
|
1,507,839 |
1,485,221 |
|
|
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (i) |
|
7,343,443 |
7,150,678 |
|
|
EquiPower Resources Holdings LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.25% 12/21/18 (i) |
|
4,698,016 |
4,674,526 |
|
|
Tranche C, term loan 4.25% 12/31/19 (i) |
|
1,143,014 |
1,137,299 |
|
|
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (i) |
|
3,380,107 |
3,337,856 |
|
|
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (i) |
|
6,102,475 |
5,980,425 |
|
|
Southeast Powergen LLC Tranche B, term loan 4.5% 12/2/21 (i) |
|
2,770,000 |
2,756,150 |
|
|
|
26,522,155 |
|||
|
Independent Power Producers & Renewable Electricity Producers - 0.2% |
||||
|
Calpine Corp. Tranche B 4LN, term loan 4% 10/31/20 (i) |
|
1,980,000 |
1,960,200 |
|
|
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (i) |
|
9,854,950 |
8,968,004 |
|
|
|
10,928,204 |
|||
|
TOTAL UTILITIES |
37,450,359 |
|||
|
TOTAL BANK LOAN OBLIGATIONS (Cost $368,439,360) |
|
|||
|
Preferred Securities - 0.0% |
||||
|
|
||||
|
FINANCIALS - 0.0% |
||||
|
Diversified Financial Services - 0.0% |
||||
|
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (h)(i) |
|
1,220,000 |
562,786 |
|
|
Preferred Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Thrifts & Mortgage Finance - 0.0% |
||||
|
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (h)(i) |
|
$ 500,000 |
$ 250 |
|
|
TOTAL PREFERRED SECURITIES (Cost $1,297,768) |
|
|||
|
Money Market Funds - 7.3% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
332,799,976 |
332,799,976 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
2,611,700 |
2,611,700 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $335,411,676) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $4,221,908,265) |
4,600,696,376 |
||
|
NET OTHER ASSETS (LIABILITIES) - 0.2% |
8,136,127 |
||
|
NET ASSETS - 100% |
$ 4,608,832,503 |
||
|
Currency Abbreviations |
||
|
CAD |
- |
Canadian dollar |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Non-income producing - Security is in default. |
|
(e) Amount is stated in United States dollars unless otherwise noted. |
|
(f) Security or a portion of the security is on loan at period end. |
|
(g) Affiliated company |
|
(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $701,223,927 or 15.2% of net assets. |
|
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(j) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
|
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,228,086 or 0.2% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 |
5/21/03 |
$ 66,085 |
|
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 |
3/25/03 |
$ 94,332 |
|
Stanley Martin Communities LLC Class B |
8/3/05 - 3/1/07 |
$ 4,244,623 |
|
(l) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 187,992 |
|
Fidelity Securities Lending Cash Central Fund |
17,947 |
|
Total |
$ 205,939 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
|
Acadia Realty Trust (SBI) |
$ 98,809,206 |
$ 6,057,602 |
$ - |
$ 2,810,446 |
$ 133,937,344 |
|
Arbor Realty Trust, Inc. |
21,697,653 |
- |
- |
797,934 |
21,329,376 |
|
Arbor Realty Trust, Inc. 7.375% |
8,162,637 |
2,420,000 |
- |
396,964 |
10,790,961 |
|
Arbor Realty Trust, Inc. Series A, 8.25% |
4,727,225 |
- |
- |
194,998 |
4,765,043 |
|
Arbor Realty Trust, Inc. Series B, 7.75% |
5,882,400 |
- |
- |
232,500 |
5,891,760 |
|
Arbor Realty Trust, Inc. Series C, 8.50% |
2,525,000 |
- |
- |
106,250 |
2,557,000 |
|
Total |
$ 141,804,121 |
$ 8,477,602 |
$ - |
$ 4,539,092 |
$ 179,271,484 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 15,687,755 |
$ 8,513,126 |
$ - |
$ 7,174,629 |
|
Financials |
2,259,500,569 |
2,211,834,850 |
47,665,695 |
24 |
|
Corporate Bonds |
926,557,308 |
- |
926,080,975 |
476,333 |
|
Asset-Backed Securities |
92,890,592 |
- |
87,022,531 |
5,868,061 |
|
Collateralized Mortgage Obligations |
10,618,354 |
- |
9,889,992 |
728,362 |
|
Commercial Mortgage Securities |
596,095,462 |
- |
593,619,880 |
2,475,582 |
|
Bank Loan Obligations |
363,371,624 |
- |
343,598,133 |
19,773,491 |
|
Preferred Securities |
563,036 |
- |
- |
563,036 |
|
Money Market Funds |
335,411,676 |
335,411,676 |
- |
- |
|
Total Investments in Securities: |
$ 4,600,696,376 |
$ 2,555,759,652 |
$ 2,007,877,206 |
$ 37,059,518 |
|
Valuation Inputs at Reporting Date: |
|
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
|
Investments in Securities: |
|
|
Bank Loan Obligations |
|
|
Beginning Balance |
$ 47,410,682 |
|
Net Realized Gain (Loss) on Investment Securities |
5,619 |
|
Net Unrealized Gain (Loss) on Investment Securities |
43,346 |
|
Cost of Purchases |
1,642,050 |
|
Proceeds of Sales |
(12,359,953) |
|
Amortization/Accretion |
(67,192) |
|
Transfers into Level 3 |
646,428 |
|
Transfers out of Level 3 |
(17,547,489) |
|
Ending Balance |
$ 19,773,491 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ 43,346 |
|
Other Investments in Securities |
|
|
Beginning Balance |
$ 31,191,916 |
|
Net Realized Gain (Loss) on Investment Securities |
(4,434,429) |
|
Net Unrealized Gain (Loss) on Investment Securities |
5,983,766 |
|
Cost of Purchases |
99,942 |
|
Proceeds of Sales |
(8,014,428) |
|
Amortization/Accretion |
290,537 |
|
Transfers into Level 3 |
- |
|
Transfers out of Level 3 |
(7,831,277) |
|
Ending Balance |
$ 17,286,027 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ (8,454) |
|
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
|
Other Information |
|
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
|
U.S. Government and U.S. Government Agency Obligations |
0.2% |
|
AAA,AA,A |
3.4% |
|
BBB |
10.4% |
|
BB |
9.2% |
|
B |
10.8% |
|
CCC,CC,C |
1.0% |
|
D |
0.0% |
|
Not Rated |
8.1% |
|
Equities |
49.4% |
|
Short-Term Investments and Net Other Assets |
7.5% |
|
|
100.0% |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
|
January 31, 2015 |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $2,539,082) - See accompanying schedule: Unaffiliated issuers (cost $3,757,112,385) |
$ 4,086,013,216 |
|
|
Fidelity Central Funds (cost $335,411,676) |
335,411,676 |
|
|
Other affiliated issuers (cost $129,384,204) |
179,271,484 |
|
|
Total Investments (cost $4,221,908,265) |
|
$ 4,600,696,376 |
|
Cash |
|
6,827,434 |
|
Receivable for investments sold |
|
2,213,717 |
|
Receivable for fund shares sold |
|
9,253,135 |
|
Dividends receivable |
|
3,116,137 |
|
Interest receivable |
|
18,078,147 |
|
Distributions receivable from Fidelity Central Funds |
|
45,283 |
|
Prepaid expenses |
|
6,183 |
|
Other receivables |
|
12,064 |
|
Total assets |
|
4,640,248,476 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
|
|
|
Regular delivery |
$ 16,805,792 |
|
|
Delayed delivery |
1,500,000 |
|
|
Payable for fund shares redeemed |
7,056,868 |
|
|
Accrued management fee |
2,089,026 |
|
|
Distribution and service plan fees payable |
349,293 |
|
|
Other affiliated payables |
902,571 |
|
|
Other payables and accrued expenses |
100,723 |
|
|
Collateral on securities loaned, at value |
2,611,700 |
|
|
Total liabilities |
|
31,415,973 |
|
|
|
|
|
Net Assets |
|
$ 4,608,832,503 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 4,230,459,716 |
|
Distributions in excess of net investment income |
|
(10,180,473) |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
9,765,860 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
378,787,400 |
|
Net Assets |
|
$ 4,608,832,503 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2015 |
|
|
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 11.88 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.88) |
|
$ 12.37 |
|
Class T: |
|
$ 11.89 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.89) |
|
$ 12.39 |
|
Class C: |
|
$ 11.79 |
|
|
|
|
|
Real Estate Income: |
|
$ 11.93 |
|
|
|
|
|
Institutional Class: |
|
$ 11.90 |
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
|
|
Six months ended January 31, 2015 |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends (including $4,539,092 earned from other affiliated issuers) |
|
$ 64,172,176 |
|
Interest |
|
56,773,494 |
|
Income from Fidelity Central Funds |
|
205,939 |
|
Total income |
|
121,151,609 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 11,904,033 |
|
|
Transfer agent fees |
4,675,064 |
|
|
Distribution and service plan fees |
1,959,164 |
|
|
Accounting and security lending fees |
670,766 |
|
|
Custodian fees and expenses |
32,928 |
|
|
Independent trustees' compensation |
8,930 |
|
|
Registration fees |
109,947 |
|
|
Audit |
84,607 |
|
|
Legal |
7,554 |
|
|
Miscellaneous |
12,438 |
|
|
Total expenses before reductions |
19,465,431 |
|
|
Expense reductions |
(25,516) |
19,439,915 |
|
Net investment income (loss) |
|
101,711,694 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
24,266,988 |
|
|
Foreign currency transactions |
8,566 |
|
|
Total net realized gain (loss) |
|
24,275,554 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
109,899,284 |
|
|
Assets and liabilities in foreign currencies |
(24,247) |
|
|
Total change in net unrealized appreciation (depreciation) |
|
109,875,037 |
|
Net gain (loss) |
|
134,150,591 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 235,862,285 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended January 31, |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 101,711,694 |
$ 170,741,524 |
|
Net realized gain (loss) |
24,275,554 |
105,884,376 |
|
Change in net unrealized appreciation (depreciation) |
109,875,037 |
30,348,946 |
|
Net increase (decrease) in net assets resulting from operations |
235,862,285 |
306,974,846 |
|
Distributions to shareholders from net investment income |
(146,546,341) |
(172,155,251) |
|
Distributions to shareholders from net realized gain |
(75,677,557) |
(78,297,244) |
|
Total distributions |
(222,223,898) |
(250,452,495) |
|
Share transactions - net increase (decrease) |
421,078,266 |
(6,051,637) |
|
Redemption fees |
139,170 |
438,384 |
|
Total increase (decrease) in net assets |
434,855,823 |
50,909,098 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
4,173,976,680 |
4,123,067,582 |
|
End of period (including distributions in excess of net investment income of $10,180,473 and undistributed net investment income of $34,654,174, respectively) |
$ 4,608,832,503 |
$ 4,173,976,680 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.53 |
.18 |
|
Net realized and unrealized gain (loss) |
.35 |
.44 |
.60 |
.61 |
.76 |
(.04) |
|
Total from investment operations |
.62 |
.93 |
1.14 |
1.13 |
1.29 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.51) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.74) |
(.73) |
(.60) K |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.88 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
|
Total ReturnB, C, D |
5.41% |
8.49% |
10.45% |
11.24% |
13.27% |
1.46% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.04%A |
1.06% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of fee waivers, if any |
1.04%A |
1.05% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of all reductions |
1.04%A |
1.05% |
1.07% |
1.11% |
1.12% |
1.09%A |
|
Net investment income (loss) |
4.56%A |
4.28% |
4.62% |
4.89% |
5.00% |
6.23%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 499,749 |
$ 442,271 |
$ 378,269 |
$ 137,352 |
$ 60,283 |
$ 3,830 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2013. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.52 |
.17 |
|
Net realized and unrealized gain (loss) |
.36 |
.43 |
.60 |
.62 |
.76 |
(.03) |
|
Total from investment operations |
.63 |
.92 |
1.14 |
1.14 |
1.28 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.50) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.73) K |
(.73) |
(.60) |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.89 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
|
Total ReturnB, C, D |
5.49% |
8.44% |
10.42% |
11.33% |
13.11% |
1.45% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of fee waivers, if any |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of all reductions |
1.07%A |
1.07% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Net investment income (loss) |
4.53%A |
4.26% |
4.61% |
4.90% |
4.96% |
5.92%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 57,278 |
$ 48,164 |
$ 46,198 |
$ 26,143 |
$ 7,626 |
$ 862 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.73 per share is comprised of distributions from net investment income of $.496 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) E |
.22 |
.40 |
.45 |
.44 |
.45 |
.15 |
|
Net realized and unrealized gain (loss) |
.35 |
.43 |
.60 |
.62 |
.74 |
(.03) |
|
Total from investment operations |
.57 |
.83 |
1.05 |
1.06 |
1.19 |
.12 |
|
Distributions from net investment income |
(.34) |
(.42) |
(.46) |
(.43) |
(.45) |
(.14) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.55) |
(.65) K |
(.66) |
(.53) |
(.45) |
(.14) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.79 |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
|
Total ReturnB, C, D |
5.02% |
7.66% |
9.66% |
10.49% |
12.25% |
1.29% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of fee waivers, if any |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of all reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Net investment income (loss) |
3.81%A |
3.54% |
3.88% |
4.14% |
4.23% |
5.21%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 288,754 |
$ 246,306 |
$ 204,012 |
$ 52,780 |
$ 21,555 |
$ 836 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.417 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
$ 8.21 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.54 |
.55 |
.53 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
1.73 |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.16 |
1.31 |
2.26 |
|
Distributions from net investment income |
(.40) |
(.53) |
(.55) |
(.52) |
(.51) |
(.52) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) I |
(.76) J |
(.75) |
(.62) |
(.51) |
(.52) |
|
Redemption fees added to paid in capital D, H |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.93 |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
|
Total ReturnB, C |
5.51% |
8.78% |
10.71% |
11.50% |
13.41% |
28.29% |
|
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
|
Expenses before reductions |
.83%A |
.83% |
.84% |
.90% |
.92% |
.97% |
|
Expenses net of fee waivers, if any |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Expenses net of all reductions |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Net investment income (loss) |
4.77%A |
4.50% |
4.85% |
5.12% |
5.21% |
5.60% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 2,777,817 |
$ 2,627,382 |
$ 2,884,545 |
$ 2,252,149 |
$ 1,660,063 |
$ 1,030,393 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. I Total distributions of $.62 per share is comprised of distributions from net investment income of $.404 and distributions from net realized gain of $.212 per share. J Total distributions of $.76 per share is comprised of distributions from net investment income of $.525 and distributions from net realized gain of $.236. |
||||||
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 G |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.55 |
.55 |
.19 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
(.04) |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.17 |
1.31 |
.15 |
|
Distributions from net investment income |
(.41) |
(.53) |
(.56) |
(.53) |
(.52) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) |
(.77) |
(.76) |
(.63) |
(.52) |
(.15) |
|
Redemption fees added to paid in capital D, I |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.90 |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
|
Total ReturnB, C |
5.57% |
8.76% |
10.72% |
11.62% |
13.44% |
1.58% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of fee waivers, if any |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of all reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Net investment income (loss) |
4.82%A |
4.55% |
4.89% |
5.17% |
5.24% |
6.70%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 985,236 |
$ 809,854 |
$ 610,045 |
$ 217,435 |
$ 43,282 |
$ 2,930 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period April 14, 2010 (commencement of sale of shares) to July 30, 2010. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015
1. Organization.
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 Fund offers Class A, Class T, Class C, Real Estate Income 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset-backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 481,167,029 |
|
|
Gross unrealized depreciation |
(103,467,625) |
|
|
Net unrealized appreciation (depreciation) on securities |
$ 377,699,404 |
|
|
|
|
|
|
Tax cost |
$ 4,222,996,972 |
|
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to .75% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and
Semiannual Report
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $621,113,393 and $350,563,339, respectively.
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
|
Distribution |
Service |
Total |
Retained |
|
Class A |
-% |
.25% |
$ 567,846 |
$ 16,744 |
|
Class T |
-% |
.25% |
63,531 |
- |
|
Class C |
.75% |
.25% |
1,327,787 |
435,578 |
|
|
|
|
$ 1,959,164 |
$ 452,322 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained |
|
Class A |
$ 41,899 |
|
Class T |
5,006 |
|
Class C* |
23,532 |
|
|
$ 70,437 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Class A |
$ 445,958 |
.20 |
|
Class T |
56,862 |
.22 |
|
Class C |
257,348 |
.19 |
|
Real Estate Income |
3,081,077 |
.23 |
|
Institutional Class |
833,819 |
.18 |
|
|
$ 4,675,064 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,158 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,919 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
Notes to Financial Statements - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $17,947. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19,936 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 $1,348.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Real Estate Income expenses during the period in the amount of $4,232.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Class A |
$ 15,122,863 |
$ 16,638,771 |
|
Class T |
1,684,419 |
1,842,576 |
|
Class C |
7,818,920 |
7,530,932 |
|
Real Estate Income |
90,298,969 |
117,401,887 |
|
Institutional Class |
31,621,170 |
28,741,085 |
|
Total |
$ 146,546,341 |
$ 172,155,251 |
|
From net realized gain |
|
|
|
Class A |
$ 7,958,841 |
$ 7,591,572 |
|
Class T |
875,220 |
874,881 |
|
Class C |
4,645,932 |
4,152,718 |
|
Real Estate Income |
46,720,433 |
53,508,422 |
|
Institutional Class |
15,477,131 |
12,169,651 |
|
Total |
$ 75,677,557 |
$ 78,297,244 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Class A |
|
|
|
|
|
Shares sold |
9,766,902 |
18,815,698 |
$ 114,976,560 |
$ 217,399,754 |
|
Reinvestment of distributions |
1,788,200 |
1,805,230 |
20,829,273 |
20,178,624 |
|
Shares redeemed |
(6,792,343) |
(15,738,034) |
(79,763,885) |
(180,458,692) |
|
Net increase (decrease) |
4,762,759 |
4,882,894 |
$ 56,041,948 |
$ 57,119,686 |
|
Class T |
|
|
|
|
|
Shares sold |
969,612 |
1,270,924 |
$ 11,435,988 |
$ 14,645,845 |
|
Reinvestment of distributions |
202,446 |
211,146 |
2,358,154 |
2,357,016 |
|
Shares redeemed |
(413,416) |
(1,380,258) |
(4,866,406) |
(15,703,373) |
|
Net increase (decrease) |
758,642 |
101,812 |
$ 8,927,736 |
$ 1,299,488 |
|
Class C |
|
|
|
|
|
Shares sold |
4,742,874 |
9,015,535 |
$ 55,448,980 |
$ 103,482,191 |
|
Reinvestment of distributions |
904,783 |
813,525 |
10,466,010 |
9,012,478 |
|
Shares redeemed |
(2,089,983) |
(6,508,928) |
(24,340,004) |
(73,908,752) |
|
Net increase (decrease) |
3,557,674 |
3,320,132 |
$ 41,574,986 |
$ 38,585,917 |
Semiannual Report
Notes to Financial Statements - continued
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Real Estate Income |
|
|
|
|
|
Shares sold |
29,531,997 |
61,717,695 |
$ 349,603,525 |
$ 711,894,953 |
|
Reinvestment of distributions |
10,349,604 |
13,609,464 |
121,038,299 |
152,306,330 |
|
Shares redeemed |
(27,746,338) |
(100,931,769) |
(327,687,059) |
(1,156,054,958) |
|
Net increase (decrease) |
12,135,263 |
(25,604,610) |
$ 142,954,765 |
$ (291,853,675) |
|
Institutional Class |
|
|
|
|
|
Shares sold |
23,582,339 |
40,192,476 |
$ 277,545,470 |
$ 465,679,843 |
|
Reinvestment of distributions |
2,943,991 |
2,412,058 |
34,326,111 |
27,006,597 |
|
Shares redeemed |
(11,915,809) |
(26,626,486) |
(140,292,750) |
(303,889,493) |
|
Net increase (decrease) |
14,610,521 |
15,978,048 |
$ 171,578,831 |
$ 188,796,947 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
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 schedule of investments, as of January 31, 2015, 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, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2015, by correspondence with the custodians, agent banks 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, 2015, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 20, 2015
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
REII-USAN-0315 1.907543.104
Fidelity®
Real Estate Income
Fund
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
|
|
Report of Independent Registered Public Accounting Firm |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Class A |
1.04% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.10 |
$ 5.38 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.96 |
$ 5.30 |
|
Class T |
1.07% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.90 |
$ 5.54 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.81 |
$ 5.45 |
|
Class C |
1.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.18 |
$ 9.10 |
|
Real Estate Income |
.82% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.10 |
$ 4.25 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.07 |
$ 4.18 |
|
Institutional Class |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,055.70 |
$ 4.04 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.27 |
$ 3.97 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Five Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Equity Lifestyle Properties, Inc. |
3.0 |
2.7 |
|
Acadia Realty Trust (SBI) |
2.9 |
2.4 |
|
MFA Financial, Inc. |
2.9 |
3.2 |
|
Ventas, Inc. |
1.4 |
1.6 |
|
WP Carey, Inc. |
1.1 |
0.9 |
|
|
11.3 |
|
|
Top 5 Bonds as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 |
0.9 |
0.9 |
|
Annaly Capital Management, Inc. 5% 5/15/15 |
0.7 |
0.8 |
|
IAS Operating Partnership LP 5% 3/15/18 |
0.7 |
0.6 |
|
Standard Pacific Corp. 8.375% 5/15/18 |
0.7 |
0.8 |
|
iStar Financial, Inc. 5.875% 3/15/16 |
0.6 |
0.7 |
|
|
3.6 |
|
|
Top Five REIT Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
REITs - Mortgage |
17.2 |
17.3 |
|
REITs - Shopping Centers |
7.2 |
6.3 |
|
REITs - Health Care |
7.0 |
6.9 |
|
REITs - Management/Investment |
5.6 |
9.0 |
|
REITs - Apartments |
4.8 |
4.9 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015* |
As of July 31, 2014** |
||||||
|
Common Stocks 30.8% |
|
|
Common Stocks 31.4% |
|
||
|
Preferred Stocks 17.6% |
|
|
Preferred Stocks 16.7% |
|
||
|
Bonds 30.7% |
|
|
Bonds 32.8% |
|
||
|
Convertible |
|
|
Convertible |
|
||
|
Other Investments 7.9% |
|
|
Other Investments 7.8% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
1.3% |
|
** Foreign investments |
2.6% |
|
||
Semiannual Report
Investments January 31, 2015
Showing Percentage of Net Assets
|
Common Stocks - 30.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 0.2% |
|||
|
Household Durables - 0.2% |
|||
|
Stanley Martin Communities LLC Class B (a)(k) |
4,620 |
$ 7,174,629 |
|
|
FINANCIALS - 30.6% |
|||
|
Capital Markets - 0.5% |
|||
|
Ellington Financial LLC |
1,114,700 |
23,352,965 |
|
|
Real Estate Investment Trusts - 29.4% |
|||
|
Acadia Realty Trust (SBI) (g) |
3,700,949 |
133,937,344 |
|
|
AG Mortgage Investment Trust, Inc. |
781,700 |
14,375,463 |
|
|
American Realty Capital Properties, Inc. |
785,434 |
7,277,046 |
|
|
American Tower Corp. |
171,300 |
16,607,535 |
|
|
Annaly Capital Management, Inc. |
1,193,000 |
12,598,080 |
|
|
Anworth Mortgage Asset Corp. |
1,572,210 |
8,159,770 |
|
|
Apartment Investment & Management Co. Class A |
1,195,700 |
47,660,602 |
|
|
Arbor Realty Trust, Inc. (g) |
3,068,975 |
21,329,376 |
|
|
AvalonBay Communities, Inc. |
149,500 |
25,862,005 |
|
|
Boardwalk (REIT) |
136,200 |
6,573,657 |
|
|
CBL & Associates Properties, Inc. |
2,180,373 |
44,959,291 |
|
|
Cedar Shopping Centers, Inc. |
830,510 |
6,610,860 |
|
|
Chambers Street Properties |
1,349,993 |
11,407,441 |
|
|
CYS Investments, Inc. |
2,094,739 |
18,517,493 |
|
|
Douglas Emmett, Inc. |
564,100 |
16,065,568 |
|
|
Dynex Capital, Inc. |
2,039,943 |
17,074,323 |
|
|
EastGroup Properties, Inc. |
81,700 |
5,281,088 |
|
|
Ellington Residential Mortgage REIT |
260,000 |
4,269,200 |
|
|
Equity Lifestyle Properties, Inc. |
2,555,260 |
139,849,378 |
|
|
Equity Residential (SBI) |
304,200 |
23,608,962 |
|
|
Excel Trust, Inc. |
2,133,328 |
29,951,925 |
|
|
Extra Space Storage, Inc. |
230,700 |
15,226,200 |
|
|
First Potomac Realty Trust |
1,381,615 |
17,684,672 |
|
|
Five Oaks Investment Corp. |
479,100 |
5,241,354 |
|
|
H&R REIT/H&R Finance Trust |
375,100 |
7,208,580 |
|
|
Hatteras Financial Corp. |
787,600 |
14,318,568 |
|
|
Lexington Corporate Properties Trust |
4,251,582 |
48,510,551 |
|
|
LTC Properties, Inc. |
386,713 |
18,144,574 |
|
|
MFA Financial, Inc. |
16,938,293 |
132,796,217 |
|
|
Mid-America Apartment Communities, Inc. |
600,300 |
47,615,796 |
|
|
Monmouth Real Estate Investment Corp. Class A |
950,073 |
11,220,362 |
|
|
National Retail Properties, Inc. |
244,200 |
10,461,528 |
|
|
New Senior Investment Group, Inc. |
1,476,243 |
24,417,059 |
|
|
Newcastle Investment Corp. |
1,447,930 |
6,414,330 |
|
|
NorthStar Realty Finance Corp. |
240,300 |
4,544,073 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Piedmont Office Realty Trust, Inc. Class A |
551,300 |
$ 10,766,889 |
|
|
Potlatch Corp. |
434,400 |
17,315,184 |
|
|
Prologis, Inc. |
371,987 |
16,791,493 |
|
|
Redwood Trust, Inc. (f) |
160,900 |
3,206,737 |
|
|
Sabra Health Care REIT, Inc. |
319,000 |
10,431,300 |
|
|
Select Income (REIT) |
473,800 |
11,783,406 |
|
|
Senior Housing Properties Trust (SBI) |
2,048,800 |
47,716,552 |
|
|
Simon Property Group, Inc. |
161,500 |
32,083,590 |
|
|
Store Capital Corp. |
484,300 |
11,119,528 |
|
|
Terreno Realty Corp. |
1,728,064 |
39,399,859 |
|
|
Two Harbors Investment Corp. |
1,821,280 |
18,795,610 |
|
|
Ventas, Inc. |
808,246 |
64,506,113 |
|
|
Washington REIT (SBI) |
224,300 |
6,439,653 |
|
|
Weyerhaeuser Co. |
704,500 |
25,256,325 |
|
|
WP Carey, Inc. |
678,500 |
48,723,085 |
|
|
WP Glimcher, Inc. |
997,963 |
17,643,986 |
|
|
|
1,357,759,581 |
||
|
Real Estate Management & Development - 0.7% |
|||
|
Brookfield Asset Management, Inc. Class A |
257,600 |
13,126,308 |
|
|
Kennedy-Wilson Holdings, Inc. |
664,021 |
17,656,318 |
|
|
|
30,782,626 |
||
|
TOTAL FINANCIALS |
1,411,895,172 |
||
|
TOTAL COMMON STOCKS (Cost $1,154,404,476) |
|
||
|
Preferred Stocks - 18.6% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 1.0% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Household Durables - 0.1% |
|||
|
William Lyon Homes, Inc. 6.50% |
50,000 |
5,187,500 |
|
|
FINANCIALS - 0.9% |
|||
|
Real Estate Investment Trusts - 0.9% |
|||
|
Alexandria Real Estate Equities, Inc. Series D 7.00% |
195,000 |
5,685,459 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Convertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Equity Commonwealth 6.50% (a) |
1,900 |
$ 46,227 |
|
|
Excel Trust, Inc. 7.00% (a)(h) |
248,200 |
6,701,400 |
|
|
Health Care REIT, Inc. Series I, 6.50% (a) |
46,800 |
3,334,500 |
|
|
Lexington Corporate Properties Trust Series C, 6.50% (a) |
468,742 |
22,895,141 |
|
|
|
38,662,727 |
||
|
TOTAL CONVERTIBLE PREFERRED STOCKS |
43,850,227 |
||
|
Nonconvertible Preferred Stocks - 17.6% |
|||
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Hotels, Restaurants & Leisure - 0.1% |
|||
|
Red Lion Hotels Capital Trust 9.50% |
128,353 |
3,325,626 |
|
|
FINANCIALS - 17.5% |
|||
|
Capital Markets - 0.1% |
|||
|
Arlington Asset Investment Corp. 6.625% |
182,517 |
4,489,918 |
|
|
Real Estate Investment Trusts - 17.2% |
|||
|
AG Mortgage Investment Trust, Inc.: |
|
|
|
|
8.00% |
532,287 |
13,142,166 |
|
|
8.25% |
29,309 |
742,690 |
|
|
Alexandria Real Estate Equities, Inc. Series E, 6.45% |
145,913 |
3,820,002 |
|
|
American Capital Agency Corp.: |
|
|
|
|
8.00% |
200,000 |
5,338,000 |
|
|
Series B, 7.75% |
360,200 |
9,077,040 |
|
|
American Capital Mortgage Investment Corp. Series A, 8.125% |
248,636 |
6,260,654 |
|
|
American Home Mortgage Investment Corp.: |
|
|
|
|
Series A, 9.75% (a) |
120,300 |
12 |
|
|
Series B, 9.25% (a) |
124,100 |
12 |
|
|
American Homes 4 Rent: |
|
|
|
|
Series A, 5.00% |
425,887 |
10,762,164 |
|
|
Series B, 5.00% |
237,005 |
5,996,227 |
|
|
Series C, 5.50% |
733,281 |
18,434,684 |
|
|
American Realty Capital Properties, Inc. Series F, 6.70% |
1,353,701 |
31,229,882 |
|
|
Annaly Capital Management, Inc.: |
|
|
|
|
Series A, 7.875% |
134,900 |
3,502,004 |
|
|
Series C, 7.625% |
289,533 |
7,342,557 |
|
|
Series D, 7.50% |
621,976 |
15,785,751 |
|
|
Anworth Mortgage Asset Corp. Series A, 8.625% |
309,630 |
7,867,698 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Apollo Commercial Real Estate Finance, Inc. Series A, 8.625% |
375,101 |
$ 9,842,650 |
|
|
Apollo Residential Mortgage, Inc. Series A, 8.00% |
279,276 |
6,928,838 |
|
|
Arbor Realty Trust, Inc.: |
|
|
|
|
7.375% (g) |
430,605 |
10,790,961 |
|
|
Series A, 8.25% (g) |
189,089 |
4,765,043 |
|
|
Series B, 7.75% (g) |
240,000 |
5,891,760 |
|
|
Series C, 8.50% (g) |
100,000 |
2,557,000 |
|
|
Armour Residential REIT, Inc. Series B, 7.875% |
153,654 |
3,710,744 |
|
|
Ashford Hospitality Trust, Inc.: |
|
|
|
|
Series D, 8.45% |
47,000 |
1,208,840 |
|
|
Series E, 9.00% |
140,751 |
3,729,902 |
|
|
Boston Properties, Inc. 5.25% |
10,915 |
272,438 |
|
|
Brandywine Realty Trust Series E, 6.90% |
95,000 |
2,585,900 |
|
|
Campus Crest Communities, Inc. Series A, 8.00% |
256,817 |
6,708,060 |
|
|
Capstead Mortgage Corp. Series E, 7.50% |
202,984 |
5,090,839 |
|
|
CBL & Associates Properties, Inc.: |
|
|
|
|
Series D, 7.375% |
289,876 |
7,478,801 |
|
|
Series E, 6.625% |
222,063 |
5,840,257 |
|
|
Cedar Shopping Centers, Inc. Series B, 7.25% |
399,750 |
10,473,450 |
|
|
Chesapeake Lodging Trust Series A, 7.75% |
266,916 |
7,260,115 |
|
|
Colony Financial, Inc.: |
|
|
|
|
Series A, 8.50% |
283,920 |
7,523,880 |
|
|
Series B, 7.50% |
86,432 |
2,205,745 |
|
|
Coresite Realty Corp. Series A, 7.25% |
369,799 |
9,707,224 |
|
|
Corporate Office Properties Trust Series L, 7.375% |
161,840 |
4,353,496 |
|
|
CubeSmart Series A, 7.75% |
40,000 |
1,092,400 |
|
|
CYS Investments, Inc.: |
|
|
|
|
Series A, 7.75% |
117,824 |
2,853,697 |
|
|
Series B, 7.50% |
446,667 |
10,519,008 |
|
|
DDR Corp.: |
|
|
|
|
Series J, 6.50% |
340,721 |
9,114,287 |
|
|
Series K, 6.25% |
228,888 |
6,017,466 |
|
|
Digital Realty Trust, Inc.: |
|
|
|
|
Series E, 7.00% |
219,819 |
5,708,699 |
|
|
Series G, 5.875% |
145,444 |
3,529,926 |
|
|
Series H, 7.375% |
50,000 |
1,361,000 |
|
|
DuPont Fabros Technology, Inc. Series B, 7.625% |
381,202 |
10,021,801 |
|
|
Dynex Capital, Inc.: |
|
|
|
|
Series A, 8.50% |
362,932 |
9,156,774 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Dynex Capital, Inc.: - continued |
|
|
|
|
Series B, 7.625% |
252,120 |
$ 6,113,910 |
|
|
Equity Commonwealth Series E, 7.25% |
648,952 |
16,684,556 |
|
|
Equity Lifestyle Properties, Inc. Series C, 6.75% |
950,148 |
24,675,344 |
|
|
Essex Property Trust, Inc. Series H, 7.125% |
40,000 |
1,066,800 |
|
|
Excel Trust, Inc. Series B, 8.125% |
400,000 |
10,876,000 |
|
|
First Potomac Realty Trust 7.75% |
415,296 |
10,901,520 |
|
|
Five Oaks Investment Corp. Series A, 8.75% |
100,000 |
2,530,000 |
|
|
General Growth Properties, Inc. Series A, 6.375% |
166,463 |
4,283,093 |
|
|
Gladstone Commercial Corp. Series C, 7.125% |
232,238 |
5,991,740 |
|
|
Hatteras Financial Corp. Series A, 7.625% |
514,725 |
12,482,081 |
|
|
Health Care REIT, Inc. Series J, 6.50% |
81,600 |
2,189,328 |
|
|
Hersha Hospitality Trust: |
|
|
|
|
Series B, 8.00% |
162,538 |
4,305,632 |
|
|
Series C, 6.875% |
50,000 |
1,325,000 |
|
|
Hospitality Properties Trust Series D, 7.125% |
40,800 |
1,097,112 |
|
|
Hudson Pacific Properties, Inc. 8.375% |
394,069 |
10,541,346 |
|
|
Inland Real Estate Corp.: |
|
|
|
|
Series A, 8.125% |
423,500 |
11,328,625 |
|
|
Series B, 6.95% |
245,000 |
6,374,900 |
|
|
Invesco Mortgage Capital, Inc.: |
|
|
|
|
Series A, 7.75% |
123,342 |
3,081,083 |
|
|
Series B, 7.75% |
496,477 |
12,233,193 |
|
|
Investors Real Estate Trust Series B, 7.95% |
126,572 |
3,363,018 |
|
|
iStar Financial, Inc.: |
|
|
|
|
Series E, 7.875% |
188,696 |
4,698,530 |
|
|
Series F, 7.80% |
418,693 |
10,341,717 |
|
|
Kilroy Realty Corp.: |
|
|
|
|
Series G, 6.875% |
46,760 |
1,297,590 |
|
|
Series H, 6.375% |
143,296 |
3,811,674 |
|
|
Kite Realty Group Trust 8.25% |
96,100 |
2,522,625 |
|
|
LaSalle Hotel Properties: |
|
|
|
|
Series H, 7.50% |
141,308 |
3,682,486 |
|
|
Series I, 6.375% |
354,698 |
9,246,977 |
|
|
LBA Realty Fund II: |
|
|
|
|
Series A, 8.75% (a) |
69,000 |
3,105,000 |
|
|
Series B, 7.625% |
31,240 |
718,520 |
|
|
MFA Financial, Inc.: |
|
|
|
|
8.00% |
538,930 |
13,958,287 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
MFA Financial, Inc.: - continued |
|
|
|
|
Series B, 7.50% |
614,532 |
$ 15,228,103 |
|
|
Monmouth Real Estate Investment Corp.: |
|
|
|
|
Series A, 7.625% |
80,000 |
2,096,800 |
|
|
Series B, 7.875% |
95,000 |
2,518,450 |
|
|
National Retail Properties, Inc.: |
|
|
|
|
5.70% |
376,404 |
9,327,291 |
|
|
Series D, 6.625% |
222,138 |
5,862,222 |
|
|
New York Mortgage Trust, Inc. Series B, 7.75% |
239,697 |
5,946,883 |
|
|
NorthStar Realty Finance Corp.: |
|
|
|
|
Series B, 8.25% |
225,708 |
5,782,639 |
|
|
Series C, 8.875% |
277,101 |
7,309,924 |
|
|
Series D, 8.50% |
233,915 |
6,081,790 |
|
|
Series E, 8.75% |
366,972 |
9,618,336 |
|
|
Pebblebrook Hotel Trust: |
|
|
|
|
Series A, 7.875% |
412,000 |
10,650,200 |
|
|
Series B, 8.00% |
185,085 |
4,923,261 |
|
|
Series C, 6.50% |
183,140 |
4,798,268 |
|
|
Pennsylvania (REIT) 7.375% |
100,510 |
2,663,515 |
|
|
Prologis, Inc. Series Q, 8.54% |
94,446 |
5,944,195 |
|
|
PS Business Parks, Inc.: |
|
|
|
|
Series R, 6.875% |
116,903 |
3,021,943 |
|
|
Series S, 6.45% |
93,809 |
2,474,681 |
|
|
Series T, 6.00% |
198,899 |
5,065,958 |
|
|
Series U, 5.75% |
600 |
14,880 |
|
|
Public Storage: |
|
|
|
|
5.875% (a) |
17,294 |
444,629 |
|
|
6.375% |
122,000 |
3,273,260 |
|
|
RAIT Financial Trust: |
|
|
|
|
7.125% |
322,126 |
8,008,052 |
|
|
7.625% |
224,590 |
5,468,767 |
|
|
Regency Centers Corp.: |
|
|
|
|
Series 6, 6.625% |
152,661 |
3,972,239 |
|
|
Series 7, 6.00% |
125,050 |
3,191,276 |
|
|
Resource Capital Corp. 8.625% |
156,870 |
3,608,010 |
|
|
Retail Properties America, Inc. 7.00% |
394,411 |
10,191,580 |
|
|
Sabra Health Care REIT, Inc. Series A, 7.125% |
298,123 |
8,094,039 |
|
|
Saul Centers, Inc. Series C, 6.875% |
315,478 |
8,457,965 |
|
|
Senior Housing Properties Trust 5.625% |
283,543 |
7,088,575 |
|
|
Preferred Stocks - continued |
|||
|
Shares |
Value |
||
|
Nonconvertible Preferred Stocks - continued |
|||
|
FINANCIALS - continued |
|||
|
Real Estate Investment Trusts - continued |
|||
|
Stag Industrial, Inc.: |
|
|
|
|
Series A, 9.00% |
280,000 |
$ 7,624,400 |
|
|
Series B, 6.625% |
80,300 |
2,071,740 |
|
|
Summit Hotel Properties, Inc.: |
|
|
|
|
Series A, 9.25% |
138,340 |
3,796,050 |
|
|
Series B, 7.875% |
190,173 |
5,326,746 |
|
|
Series C, 7.125% |
153,212 |
4,092,293 |
|
|
Sun Communities, Inc. Series A, 7.125% |
375,000 |
9,843,750 |
|
|
Sunstone Hotel Investors, Inc. Series D, 8.00% |
129,723 |
3,458,415 |
|
|
Taubman Centers, Inc. Series K, 6.25% |
157,322 |
4,113,970 |
|
|
Terreno Realty Corp. Series A, 7.75% |
213,690 |
5,635,005 |
|
|
UMH Properties, Inc. Series A, 8.25% |
600,000 |
15,804,000 |
|
|
Urstadt Biddle Properties, Inc.: |
|
|
|
|
6.75% |
160,000 |
4,353,600 |
|
|
Series F, 7.125% |
210,000 |
5,667,900 |
|
|
Weingarten Realty Investors (SBI) Series F, 6.50% |
49,813 |
1,260,269 |
|
|
Wells Fargo Real Estate Investment Corp. 6.375% (a) |
221,000 |
5,772,520 |
|
|
Winthrop Realty Trust 7.75% |
360,000 |
9,176,400 |
|
|
WP Glimcher, Inc.: |
|
|
|
|
6.875% (a) |
256,115 |
6,738,386 |
|
|
7.50% (a) |
198,527 |
5,112,070 |
|
|
8.125% (a) |
109,192 |
2,757,098 |
|
|
|
796,162,574 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Kennedy-Wilson, Inc. 7.75% |
321,574 |
8,290,178 |
|
|
TOTAL FINANCIALS |
808,942,670 |
||
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS |
812,268,296 |
||
|
TOTAL PREFERRED STOCKS (Cost $819,520,265) |
|
||
|
Corporate Bonds - 20.1% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Convertible Bonds - 4.5% |
||||
|
FINANCIALS - 4.5% |
||||
|
Consumer Finance - 0.0% |
||||
|
Zais Financial Partners LP 8% 11/15/16 (h) |
|
$ 2,000,000 |
$ 2,075,000 |
|
|
Diversified Financial Services - 0.3% |
||||
|
RWT Holdings, Inc. 5.625% 11/15/19 (h) |
|
12,190,000 |
12,447,819 |
|
|
Real Estate Investment Trusts - 3.5% |
||||
|
Annaly Capital Management, Inc. 5% 5/15/15 |
|
31,396,000 |
31,454,868 |
|
|
Apollo Commercial Real Estate Finance, Inc. 5.5% 3/15/19 |
|
5,600,000 |
5,526,500 |
|
|
Ares Commercial Real Estate Corp. 7% 12/15/15 |
|
14,700,000 |
15,049,125 |
|
|
Blackstone Mortgage Trust, Inc. 5.25% 12/1/18 |
|
5,750,000 |
6,030,313 |
|
|
Campus Crest Communities Operating Partnership LP 4.75% 10/15/18 (h) |
|
11,900,000 |
11,327,313 |
|
|
Colony Financial, Inc.: |
|
|
|
|
|
3.875% 1/15/21 |
|
9,910,000 |
10,331,175 |
|
|
5% 4/15/23 |
|
9,000,000 |
9,849,375 |
|
|
PennyMac Corp. 5.375% 5/1/20 |
|
9,690,000 |
9,266,063 |
|
|
RAIT Financial Trust 4% 10/1/33 |
|
32,665,000 |
27,418,184 |
|
|
Redwood Trust, Inc. 4.625% 4/15/18 |
|
11,200,000 |
10,843,000 |
|
|
Resource Capital Corp. 8% 1/15/20 |
|
15,200,000 |
14,549,227 |
|
|
Spirit Realty Capital, Inc. 3.75% 5/15/21 |
|
2,400,000 |
2,457,000 |
|
|
Starwood Property Trust, Inc. 3.75% 10/15/17 |
|
3,230,000 |
3,336,994 |
|
|
Starwood Waypoint Residential 4.5% 10/15/17 (h) |
|
1,965,000 |
1,965,000 |
|
|
|
159,404,137 |
|||
|
Thrifts & Mortgage Finance - 0.7% |
||||
|
IAS Operating Partnership LP 5% 3/15/18 (h) |
|
33,140,000 |
31,441,575 |
|
|
TOTAL FINANCIALS |
205,368,531 |
|||
|
Nonconvertible Bonds - 15.6% |
||||
|
CONSUMER DISCRETIONARY - 4.7% |
||||
|
Hotels, Restaurants & Leisure - 0.6% |
||||
|
FelCor Lodging LP: |
|
|
|
|
|
5.625% 3/1/23 |
|
2,000,000 |
2,035,000 |
|
|
6.75% 6/1/19 |
|
5,875,000 |
6,124,688 |
|
|
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 |
|
4,000,000 |
4,220,000 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc. 8% 10/1/20 (h) |
|
4,500,000 |
4,432,500 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
RHP Hotel Properties LP/RHP Finance Co. 5% 4/15/21 |
|
$ 2,000,000 |
$ 2,005,000 |
|
|
Times Square Hotel Trust 8.528% 8/1/26 (h) |
|
8,127,324 |
10,670,248 |
|
|
|
29,487,436 |
|||
|
Household Durables - 4.1% |
||||
|
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co. 6.875% 2/15/21 (h) |
|
10,500,000 |
9,817,500 |
|
|
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (h) |
|
2,620,000 |
2,659,300 |
|
|
Brookfield Residential Properties, Inc. 6.5% 12/15/20 (h) |
|
1,615,000 |
1,655,375 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
4.375% 9/15/22 |
|
4,175,000 |
4,154,125 |
|
|
4.75% 5/15/17 |
|
2,000,000 |
2,075,000 |
|
|
5.75% 8/15/23 |
|
2,510,000 |
2,698,250 |
|
|
KB Home: |
|
|
|
|
|
8% 3/15/20 |
|
8,465,000 |
8,877,669 |
|
|
9.1% 9/15/17 |
|
4,985,000 |
5,570,738 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
5,520,000 |
5,492,400 |
|
|
4.5% 6/15/19 |
|
1,830,000 |
1,848,300 |
|
|
5.6% 5/31/15 |
|
6,000,000 |
6,073,200 |
|
|
6.5% 4/15/16 |
|
4,000,000 |
4,180,000 |
|
|
6.95% 6/1/18 |
|
14,280,000 |
15,493,800 |
|
|
M/I Homes, Inc. 8.625% 11/15/18 |
|
26,055,000 |
27,097,200 |
|
|
Meritage Homes Corp.: |
|
|
|
|
|
7% 4/1/22 |
|
7,525,000 |
7,938,875 |
|
|
7.15% 4/15/20 |
|
7,060,000 |
7,554,200 |
|
|
Ryland Group, Inc.: |
|
|
|
|
|
6.625% 5/1/20 |
|
1,555,000 |
1,636,638 |
|
|
8.4% 5/15/17 |
|
5,420,000 |
6,063,625 |
|
|
Standard Pacific Corp.: |
|
|
|
|
|
5.875% 11/15/24 |
|
3,250,000 |
3,225,625 |
|
|
7% 8/15/15 |
|
4,000,000 |
4,060,000 |
|
|
8.375% 5/15/18 |
|
27,853,000 |
31,421,526 |
|
|
10.75% 9/15/16 |
|
4,910,000 |
5,517,613 |
|
|
WCI Communities, Inc. 6.875% 8/15/21 |
|
1,845,000 |
1,840,388 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Household Durables - continued |
||||
|
William Lyon Homes, Inc.: |
|
|
|
|
|
7% 8/15/22 |
|
$ 4,180,000 |
$ 4,221,800 |
|
|
8.5% 11/15/20 |
|
15,550,000 |
16,599,625 |
|
|
|
187,772,772 |
|||
|
TOTAL CONSUMER DISCRETIONARY |
217,260,208 |
|||
|
CONSUMER STAPLES - 0.0% |
||||
|
Food & Staples Retailing - 0.0% |
||||
|
Ahold Lease Series 2001 A1 pass thru trust certificates 7.82% 1/2/20 |
|
602,053 |
668,279 |
|
|
FINANCIALS - 10.2% |
||||
|
Diversified Financial Services - 0.2% |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
5.875% 2/1/22 |
|
3,680,000 |
3,762,800 |
|
|
6% 8/1/20 |
|
6,000,000 |
6,276,600 |
|
|
|
10,039,400 |
|||
|
Real Estate Investment Trusts - 7.0% |
||||
|
American Campus Communities Operating Partnership LP 4.125% 7/1/24 |
|
2,000,000 |
2,097,894 |
|
|
American Tower Corp. 3.4% 2/15/19 |
|
1,000,000 |
1,032,545 |
|
|
ARC Properties Operating Partnership LP 4.6% 2/6/24 |
|
7,000,000 |
6,820,765 |
|
|
Camden Property Trust 5% 6/15/15 |
|
1,100,000 |
1,117,846 |
|
|
CBL & Associates LP 5.25% 12/1/23 |
|
1,000,000 |
1,110,598 |
|
|
Commercial Net Lease Realty, Inc. 6.15% 12/15/15 |
|
2,526,000 |
2,631,622 |
|
|
Crown Castle International Corp. 5.25% 1/15/23 |
|
4,000,000 |
4,100,000 |
|
|
CTR Partnership LP/CareTrust Capital Corp. 5.875% 6/1/21 |
|
2,300,000 |
2,340,250 |
|
|
CubeSmart LP 4.8% 7/15/22 |
|
2,000,000 |
2,251,382 |
|
|
DDR Corp.: |
|
|
|
|
|
5.5% 5/1/15 |
|
4,000,000 |
4,041,620 |
|
|
7.5% 4/1/17 |
|
6,000,000 |
6,717,906 |
|
|
7.5% 7/15/18 |
|
8,756,000 |
10,320,995 |
|
|
7.875% 9/1/20 |
|
4,637,000 |
5,820,529 |
|
|
9.625% 3/15/16 |
|
3,836,000 |
4,198,149 |
|
|
DuPont Fabros Technology LP 5.875% 9/15/21 |
|
1,000,000 |
1,037,500 |
|
|
Equity One, Inc.: |
|
|
|
|
|
5.375% 10/15/15 |
|
3,500,000 |
3,599,099 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
Equity One, Inc.: - continued |
|
|
|
|
|
6.25% 1/15/17 |
|
$ 3,000,000 |
$ 3,254,301 |
|
|
Equity Residential 5.125% 3/15/16 |
|
7,201,000 |
7,543,163 |
|
|
HCP, Inc. 3.75% 2/1/16 |
|
10,000,000 |
10,272,390 |
|
|
Health Care Property Investors, Inc.: |
|
|
|
|
|
5.625% 5/1/17 |
|
2,980,000 |
3,254,762 |
|
|
6% 3/1/15 |
|
1,000,000 |
1,004,164 |
|
|
6% 1/30/17 |
|
2,383,000 |
2,600,725 |
|
|
7.072% 6/8/15 |
|
1,500,000 |
1,532,430 |
|
|
Health Care REIT, Inc.: |
|
|
|
|
|
3.625% 3/15/16 |
|
14,685,000 |
15,112,510 |
|
|
4.125% 4/1/19 |
|
2,000,000 |
2,159,772 |
|
|
6.2% 6/1/16 |
|
2,750,000 |
2,934,690 |
|
|
Healthcare Realty Trust, Inc.: |
|
|
|
|
|
3.75% 4/15/23 |
|
4,022,000 |
4,086,758 |
|
|
5.75% 1/15/21 |
|
3,095,000 |
3,545,388 |
|
|
6.5% 1/17/17 |
|
2,875,000 |
3,143,594 |
|
|
Highwoods/Forsyth LP: |
|
|
|
|
|
3.625% 1/15/23 |
|
1,607,000 |
1,665,979 |
|
|
5.85% 3/15/17 |
|
2,800,000 |
3,046,316 |
|
|
Hospitality Properties Trust: |
|
|
|
|
|
5% 8/15/22 |
|
3,177,000 |
3,441,650 |
|
|
5.625% 3/15/17 |
|
915,000 |
982,615 |
|
|
HRPT Properties Trust: |
|
|
|
|
|
5.75% 11/1/15 |
|
4,826,000 |
4,880,495 |
|
|
6.25% 8/15/16 |
|
9,675,000 |
10,120,563 |
|
|
6.25% 6/15/17 |
|
1,055,000 |
1,138,619 |
|
|
6.65% 1/15/18 |
|
4,246,000 |
4,692,607 |
|
|
iStar Financial, Inc.: |
|
|
|
|
|
3.875% 7/1/16 |
|
2,855,000 |
2,862,138 |
|
|
4% 11/1/17 |
|
15,000,000 |
14,662,500 |
|
|
5% 7/1/19 |
|
15,000,000 |
14,737,500 |
|
|
5.85% 3/15/17 |
|
3,587,000 |
3,676,675 |
|
|
5.875% 3/15/16 |
|
27,070,000 |
27,543,725 |
|
|
6.05% 4/15/15 |
|
14,630,000 |
14,703,150 |
|
|
7.125% 2/15/18 |
|
5,725,000 |
6,039,875 |
|
|
9% 6/1/17 |
|
9,175,000 |
10,092,500 |
|
|
MPT Operating Partnership LP/MPT Finance Corp.: |
|
|
|
|
|
6.375% 2/15/22 |
|
3,610,000 |
3,880,750 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Investment Trusts - continued |
||||
|
MPT Operating Partnership LP/MPT Finance Corp.: - continued |
|
|
|
|
|
6.875% 5/1/21 |
|
$ 2,000,000 |
$ 2,140,000 |
|
|
National Retail Properties, Inc. 3.3% 4/15/23 |
|
2,000,000 |
2,034,208 |
|
|
Nationwide Health Properties, Inc. 6% 5/20/15 |
|
5,670,000 |
5,758,588 |
|
|
Omega Healthcare Investors, Inc.: |
|
|
|
|
|
4.95% 4/1/24 |
|
2,898,000 |
3,113,495 |
|
|
6.75% 10/15/22 |
|
2,115,000 |
2,231,325 |
|
|
7.5% 2/15/20 |
|
1,000,000 |
1,042,000 |
|
|
Potlatch Corp. 7.5% 11/1/19 |
|
1,000,000 |
1,145,000 |
|
|
Prologis LP 7.625% 7/1/17 |
|
4,690,000 |
5,275,410 |
|
|
Reckson Operating Partnership LP/SL Green Realty Corp./SL Green Operating Partnership LP 7.75% 3/15/20 |
|
2,000,000 |
2,434,332 |
|
|
Select Income (REIT) 4.5% 2/1/25 |
|
5,000,000 |
5,013,565 |
|
|
Senior Housing Properties Trust: |
|
|
|
|
|
3.25% 5/1/19 |
|
2,882,000 |
2,954,223 |
|
|
4.3% 1/15/16 |
|
5,000,000 |
5,099,820 |
|
|
4.75% 5/1/24 |
|
3,988,000 |
4,244,169 |
|
|
6.75% 4/15/20 |
|
13,624,000 |
15,660,039 |
|
|
6.75% 12/15/21 |
|
8,000,000 |
9,436,832 |
|
|
United Dominion Realty Trust, Inc. 5.25% 1/15/16 |
|
4,000,000 |
4,158,416 |
|
|
WP Carey, Inc. 4% 2/1/25 |
|
5,000,000 |
5,082,560 |
|
|
|
324,674,986 |
|||
|
Real Estate Management & Development - 2.6% |
||||
|
BioMed Realty LP 3.85% 4/15/16 |
|
2,000,000 |
2,062,790 |
|
|
CBRE Group, Inc.: |
|
|
|
|
|
5% 3/15/23 |
|
6,020,000 |
6,305,950 |
|
|
5.25% 3/15/25 |
|
3,295,000 |
3,492,700 |
|
|
Corporate Office Properties LP 3.6% 5/15/23 |
|
5,000,000 |
4,965,865 |
|
|
Excel Trust LP 4.625% 5/15/24 |
|
2,403,000 |
2,569,261 |
|
|
Forestar U.S.A. Real Estate Group 8.5% 6/1/22 (h) |
|
14,565,000 |
13,945,988 |
|
|
Host Hotels & Resorts LP 5.25% 3/15/22 |
|
2,000,000 |
2,245,700 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (h) |
|
11,715,000 |
12,242,175 |
|
|
Hunt Companies, Inc. 9.625% 3/1/21 (h) |
|
4,100,000 |
4,151,250 |
|
|
Kennedy-Wilson, Inc. 5.875% 4/1/24 |
|
7,640,000 |
7,730,152 |
|
|
Mid-America Apartments LP: |
|
|
|
|
|
3.75% 6/15/24 |
|
1,663,000 |
1,739,380 |
|
|
6.05% 9/1/16 |
|
2,500,000 |
2,690,840 |
|
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Group LLC/Realogy Co.-Issuer Corp.: |
|
|
|
|
|
4.5% 4/15/19 (h) |
|
$ 4,805,000 |
$ 4,805,000 |
|
|
5.25% 12/1/21 (h) |
|
6,620,000 |
6,520,700 |
|
|
Regency Centers LP: |
|
|
|
|
|
5.25% 8/1/15 |
|
4,509,000 |
4,608,780 |
|
|
5.875% 6/15/17 |
|
400,000 |
440,389 |
|
|
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: |
|
|
|
|
|
5.25% 4/15/21 (h) |
|
2,000,000 |
1,885,000 |
|
|
5.625% 3/1/24 (h) |
|
2,270,000 |
2,111,100 |
|
|
Ventas Realty LP 1.55% 9/26/16 |
|
7,000,000 |
7,053,473 |
|
|
Ventas Realty LP/Ventas Capital Corp.: |
|
|
|
|
|
2.7% 4/1/20 |
|
3,000,000 |
3,047,694 |
|
|
3.125% 11/30/15 |
|
13,807,000 |
14,054,960 |
|
|
4% 4/30/19 |
|
2,262,000 |
2,430,551 |
|
|
Wells Operating Partnership II LP 5.875% 4/1/18 |
|
3,000,000 |
3,189,756 |
|
|
Weyerhaeuser Real Estate Co. 5.875% 6/15/24 (h) |
|
3,890,000 |
3,744,125 |
|
|
|
118,033,579 |
|||
|
Thrifts & Mortgage Finance - 0.4% |
||||
|
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp. 7.75% 2/15/18 (h) |
|
4,755,000 |
4,968,381 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (h) |
|
13,695,000 |
10,613,625 |
|
|
Wrightwood Capital LLC 1.9% 4/20/20 (d) |
|
32,294 |
476,333 |
|
|
|
16,058,339 |
|||
|
TOTAL FINANCIALS |
468,806,304 |
|||
|
HEALTH CARE - 0.6% |
||||
|
Health Care Equipment & Supplies - 0.3% |
||||
|
Aviv Healthcare Properties LP/Aviv Healthcare Capital Corp.: |
|
|
|
|
|
6% 10/15/21 |
|
1,370,000 |
1,431,650 |
|
|
7.75% 2/15/19 |
|
10,410,000 |
10,836,810 |
|
|
|
12,268,460 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Nonconvertible Bonds - continued |
||||
|
HEALTH CARE - continued |
||||
|
Health Care Providers & Services - 0.3% |
||||
|
Sabra Health Care LP/Sabra Capital Corp.: |
|
|
|
|
|
5.375% 6/1/23 |
|
$ 2,795,000 |
$ 2,941,738 |
|
|
5.5% 2/1/21 |
|
12,305,000 |
13,012,538 |
|
|
|
15,954,276 |
|||
|
TOTAL HEALTH CARE |
28,222,736 |
|||
|
INDUSTRIALS - 0.1% |
||||
|
Industrial Conglomerates - 0.1% |
||||
|
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 7.375% 10/1/17 |
|
3,050,000 |
3,126,250 |
|
|
INFORMATION TECHNOLOGY - 0.0% |
||||
|
Internet Software & Services - 0.0% |
||||
|
CyrusOne LP/CyrusOne Finance Corp. 6.375% 11/15/22 |
|
3,000,000 |
3,105,000 |
|
|
TOTAL NONCONVERTIBLE BONDS |
721,188,777 |
|||
|
TOTAL CORPORATE BONDS (Cost $898,339,846) |
|
|||
|
Asset-Backed Securities - 2.0% |
||||
|
|
||||
|
American Homes 4 Rent: |
|
|
|
|
|
Series 2014-SFR2 Class E, 6.231% 10/17/36 (h) |
|
3,000,000 |
3,146,872 |
|
|
Series 2014-SFR3 Class E, 6.418% 12/17/36 (h) |
|
8,575,000 |
9,114,868 |
|
|
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1.668% 3/20/50 (h)(i) |
|
2,250,000 |
225 |
|
|
CapLease CDO Ltd. Series 2005-1A Class A, 4.926% 1/29/40 (h) |
|
889,889 |
918,455 |
|
|
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 |
|
500,000 |
423,463 |
|
|
Crest Clarendon Street Ltd./Crest Clarendon Corp. Series 2002-1A Class D, 9% 12/28/35 (h) |
|
462,183 |
455,897 |
|
|
Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 |
|
7,094,402 |
6,934,736 |
|
|
Fairfield Street Solar Corp. Series 2004-1A Class E1, 3.6006% 11/28/39 (h)(i) |
|
620,905 |
62 |
|
|
Asset-Backed Securities - continued |
||||
|
|
Principal Amount |
Value |
||
|
Green Tree Financial Corp.: |
|
|
|
|
|
Series 1996-4 Class M1, 7.75% 6/15/27 |
|
$ 1,737,103 |
$ 1,717,298 |
|
|
Series 1997-3 Class M1, 7.53% 3/15/28 |
|
6,901,849 |
5,998,414 |
|
|
HLSS Servicer Advance Receivables Backed Notes Series 2013-T2 Class D2, 2.388% 5/16/44 (h) |
|
3,000,000 |
2,998,500 |
|
|
Invitation Homes Trust: |
|
|
|
|
|
Series 2013-SFR1 Class F, 3.9% 12/17/30 (h)(i) |
|
1,750,000 |
1,722,343 |
|
|
Series 2014-SFR1: |
|
|
|
|
|
Class E, 3.412% 6/17/31 (h)(i) |
|
10,000,000 |
9,859,362 |
|
|
Class F, 3.918% 6/17/31 (h)(i) |
|
9,504,000 |
9,371,769 |
|
|
Series 2014-SFR3: |
|
|
|
|
|
Class E, 4.662% 12/17/31 (h)(i) |
|
4,336,000 |
4,411,787 |
|
|
Class F, 5.162% 12/17/31 (h)(i) |
|
2,215,000 |
2,258,088 |
|
|
Series 2015-SRF1 Class F, 4.7165% 3/17/32 (h)(i) |
|
5,500,000 |
5,525,020 |
|
|
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 |
|
985,351 |
481,986 |
|
|
Merit Securities Corp. Series 13 Class M1, 7.8478% 12/28/33 (i) |
|
1,923,000 |
2,035,399 |
|
|
Mesa West Capital CDO Ltd. Series 2007-1A Class A2, 0.4583% 2/25/47 (h)(i) |
|
6,298,738 |
6,177,172 |
|
|
Progress Residential Trust Series 2015-SFR1 Class E, 4.1668% 2/17/32 (h)(i)(l) |
|
1,500,000 |
1,508,130 |
|
|
Starwood Waypoint Residential Trust Series 2014-1 Class F, 4.7072% 1/17/32 (h)(i) |
|
4,071,000 |
4,097,879 |
|
|
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 2.8824% 2/5/36 (h)(i) |
|
3,859,088 |
386 |
|
|
Wachovia Ltd./Wachovia LLC: |
|
|
|
|
|
Series 2006-1 Class 1ML, 5.7546% 9/25/26 (h)(i) |
|
2,000,000 |
1,927,400 |
|
|
Series 2006-1A: |
|
|
|
|
|
Class H, 1.9046% 9/25/26 (h)(i) |
|
1,087,896 |
1,074,297 |
|
|
Class J, 3.0046% 9/25/26 (h)(i) |
|
1,500,000 |
1,466,250 |
|
|
Class K, 3.5046% 9/25/26 (h)(i) |
|
2,475,000 |
2,401,493 |
|
|
Class L, 4.2546% 9/25/26 (h)(i) |
|
1,500,000 |
1,451,550 |
|
|
Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A: |
|
|
|
|
|
Class A1, 0.5511% 11/21/40 (h)(i) |
|
5,329,074 |
5,235,816 |
|
|
Class F, 2.1811% 11/21/40 (h)(i) |
|
250,000 |
175,675 |
|
|
TOTAL ASSET-BACKED SECURITIES (Cost $95,402,510) |
|
|||
|
Collateralized Mortgage Obligations - 0.2% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Private Sponsor - 0.2% |
||||
|
Countrywide Home Loans, Inc.: |
|
|
|
|
|
Series 2002-R2 Class 2B3, 3.6319% 7/25/33 (h)(i) |
|
$ 173,540 |
$ 41,066 |
|
|
Series 2003-R3 Class B2, 5.5% 11/25/33 (h) |
|
933,707 |
83,104 |
|
|
Series 2004-R1 Class 1B3, 3.6561% 11/25/34 (h)(i) |
|
16,239 |
322 |
|
|
FREMF Mortgage Trust: |
|
|
|
|
|
Series 2010-K6 Class B, 5.3577% 12/25/46 (h)(i) |
|
4,500,000 |
5,076,041 |
|
|
Series 2010-K7 Class B, 5.4347% 4/25/20 (h)(i) |
|
3,200,000 |
3,630,426 |
|
|
Merrill Lynch Mortgage Investors Trust Series 1998-C3 Class F, 6% 12/15/30 (h) |
|
1,131,190 |
1,172,263 |
|
|
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B Class B9, 12.1117% 6/10/35 (h)(i) |
|
135,805 |
143,891 |
|
|
Residential Funding Securities Corp. Series 2002-RM1 Class BI1, 5.5% 12/25/17 (h) |
|
12,394 |
11,262 |
|
|
RESIX Finance Ltd. floater: |
|
|
|
|
|
Series 2003-D Class B8, 6.6663% 12/10/35 (h)(i) |
|
153,030 |
39,357 |
|
|
Series 2004-A Class B7, 4.4163% 2/10/36 (h)(i) |
|
158,503 |
52,336 |
|
|
Series 2004-B Class B7, 4.1663% 2/10/36 (h)(i) |
|
197,513 |
190,189 |
|
|
TOTAL PRIVATE SPONSOR |
10,440,257 |
|||
|
U.S. Government Agency - 0.0% |
||||
|
Fannie Mae REMIC Trust: |
|
|
|
|
|
Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 (k) |
|
102,802 |
31,345 |
|
|
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.112% 2/25/42 (h)(i) |
|
76,983 |
53,691 |
|
|
Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 (i)(k) |
|
163,946 |
22,112 |
|
|
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.073% 6/25/43 (h)(i) |
|
117,448 |
49,237 |
|
|
Series 2003-W4 subordinate REMIC pass thru certificates, Class 2B3, 2.8985% 10/25/42 (h)(i) |
|
46,599 |
21,712 |
|
|
TOTAL U.S. GOVERNMENT AGENCY |
178,097 |
|||
|
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $10,120,216) |
|
|||
|
Commercial Mortgage Securities - 12.9% |
||||
|
|
Principal Amount (e) |
Value |
||
|
Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (h) |
|
$ 2,000,000 |
$ 2,323,686 |
|
|
Banc of America Commercial Mortgage Trust: |
|
|
|
|
|
Series 2005-1 Class CJ, 5.2832% 11/10/42 (i) |
|
3,580,000 |
3,576,828 |
|
|
Series 2005-5 Class D, 5.2138% 10/10/45 (i) |
|
4,000,000 |
4,031,184 |
|
|
Series 2005-6 Class AJ, 5.1523% 9/10/47 (i) |
|
5,000,000 |
5,152,355 |
|
|
Bear Stearns Commercial Mortgage Securities, Inc. Series 2006-PW11 Class AJ, 5.4348% 3/11/39 (i) |
|
5,700,000 |
5,859,568 |
|
|
Bear Stearns Commercial Mortgage Securities Trust Series 2006-T22 Class B, 5.5753% 4/12/38 (h)(i) |
|
2,520,000 |
2,673,382 |
|
|
BLCP Hotel Trust: |
|
|
|
|
|
floater Series 2014-CLRN Class F, 3.2006% 8/15/29 (h)(i) |
|
2,500,000 |
2,369,225 |
|
|
Series 2014-CLMZ Class M, 5.8945% 8/15/29 (h)(i) |
|
11,673,000 |
11,537,078 |
|
|
Boca Hotel Portfolio Trust Series 2013-BOCA Class E, 3.9165% 8/15/26 (h)(i) |
|
2,500,000 |
2,502,820 |
|
|
Carefree Portfolio Trust floater: |
|
|
|
|
|
Series 2014-CARE: |
|
|
|
|
|
Class E, 4.167% 11/15/19 (h)(i) |
|
4,073,000 |
4,078,015 |
|
|
Class F, 2.7507% 11/15/19 (h)(i) |
|
1,650,000 |
1,520,191 |
|
|
Series 2014-CMZA Class MZA, 6.1435% 11/15/19 (h)(i) |
|
14,382,000 |
14,408,539 |
|
|
CGBAM Commercial Mortgage Trust floater Series 2014-HD Class E, 3.1608% 2/15/31 (h)(i) |
|
5,769,000 |
5,715,908 |
|
|
Citigroup Commercial Mortgage Trust Series 2013-GC15 Class D, 5.1061% 9/10/46 (h)(i) |
|
2,750,000 |
2,794,176 |
|
|
COMM Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (h) |
|
7,300,000 |
5,994,453 |
|
|
Series 2012-CR5 Class D, 4.3354% 12/10/45 (h)(i) |
|
2,000,000 |
2,100,636 |
|
|
Series 2013-CR10 Class D, 4.958% 8/10/46 (h)(i) |
|
2,000,000 |
1,991,795 |
|
|
Series 2013-CR12 Class D, 5.0853% 10/10/46 (h)(i) |
|
4,000,000 |
4,102,192 |
|
|
Series 2013-CR9 Class D, 4.2592% 7/10/45 (h)(i) |
|
4,255,000 |
4,127,346 |
|
|
Series 2013-LC6 Class D, 4.2879% 1/10/46 (h)(i) |
|
3,870,000 |
3,781,578 |
|
|
Series 2014-UBS2 Class D, 5.0157% 3/10/47 (h)(i) |
|
3,713,000 |
3,665,908 |
|
|
Commercial Mortgage Acceptance Corp. Series 1998-C2 Class J, 5.44% 9/15/30 (h) |
|
2,081,591 |
2,009,060 |
|
|
Commercial Mortgage Trust pass-thru certificates: |
|
|
|
|
|
Series 2005-C6 Class AJ, 5.209% 6/10/44 (i) |
|
5,000,000 |
5,088,910 |
|
|
Series 2012-CR1: |
|
|
|
|
|
Class C, 5.3596% 5/15/45 (i) |
|
1,000,000 |
1,135,256 |
|
|
Class D, 5.3596% 5/15/45 (h)(i) |
|
5,550,000 |
5,961,588 |
|
|
Series 2012-CR2: |
|
|
|
|
|
Class D, 4.8575% 8/15/45 (h)(i) |
|
4,500,000 |
4,899,105 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Commercial Mortgage Trust pass-thru certificates: - continued |
|
|
|
|
|
Series 2012-CR2: |
|
|
|
|
|
Class E, 4.8575% 8/15/45 (h)(i) |
|
$ 6,000,000 |
$ 6,249,660 |
|
|
Series 2012-LC4: |
|
|
|
|
|
Class C, 5.6468% 12/10/44 (i) |
|
2,000,000 |
2,291,648 |
|
|
Class D, 5.6468% 12/10/44 (h)(i) |
|
8,000,000 |
8,757,496 |
|
|
Credit Suisse First Boston Mortgage Securities Corp.: |
|
|
|
|
|
Series 1998-C1 Class F, 6% 5/17/40 (h) |
|
1,359,418 |
1,468,042 |
|
|
Series 1998-C2 Class F, 6.75% 11/15/30 (h) |
|
1,882,248 |
1,946,092 |
|
|
DBUBS Mortgage Trust Series 2011-LC1A: |
|
|
|
|
|
Class E, 5.5573% 11/10/46 (h)(i) |
|
12,490,000 |
13,907,178 |
|
|
Class G, 4.652% 11/10/46 (h) |
|
9,843,000 |
8,730,711 |
|
|
Deutsche Mortgage & Asset Receiving Corp. Series 1998-C1 Class J, 6.22% 6/15/31 |
|
3,746 |
3,742 |
|
|
Extended Stay America Trust Series 2013-ESH7 Class C7, 3.9017% 12/5/31 (h) |
|
500,000 |
518,702 |
|
|
Freddie Mac: |
|
|
|
|
|
pass-thru certificates: |
|
|
|
|
|
Series K011 Class X3, 2.5752% 12/25/43 (i)(j) |
|
12,206,096 |
1,612,669 |
|
|
Series K012 Class X3, 2.288% 1/25/41 (i)(j) |
|
21,072,886 |
2,492,691 |
|
|
Series K013 Class X3, 2.8068% 1/25/43 (i)(j) |
|
14,360,000 |
2,101,844 |
|
|
Series KAIV Class X2, 3.6147% 6/25/46 (i)(j) |
|
7,430,000 |
1,438,417 |
|
|
GMAC Commercial Mortgage Securities, Inc. Series 1997-C2 Class G, 6.75% 4/15/29 (i) |
|
634,170 |
682,090 |
|
|
GP Portfolio Trust Series 2014-GPP Class E, 4.017% 2/15/27 (h)(i) |
|
2,823,000 |
2,810,253 |
|
|
Greenwich Capital Commercial Funding Corp. Series 2006-GG7 Class A4, 5.8188% 7/10/38 (i) |
|
7,889,075 |
8,231,650 |
|
|
GS Mortgage Securities Corp. II Series 2010-C1: |
|
|
|
|
|
Class D, 6.0409% 8/10/43 (h)(i) |
|
4,000,000 |
4,472,448 |
|
|
Class E, 4% 8/10/43 (h) |
|
3,770,000 |
3,473,075 |
|
|
GS Mortgage Securities Trust: |
|
|
|
|
|
Series 2010-C2 Class D, 5.2225% 12/10/43 (h)(i) |
|
3,000,000 |
3,236,121 |
|
|
Series 2011-GC5: |
|
|
|
|
|
Class C, 5.3067% 8/10/44 (h)(i) |
|
9,000,000 |
10,212,705 |
|
|
Class D, 5.3067% 8/10/44 (h)(i) |
|
4,000,000 |
4,332,108 |
|
|
Class E, 5.3067% 8/10/44 (h)(i) |
|
4,049,000 |
3,890,429 |
|
|
Class F, 4.5% 8/10/44 (h) |
|
4,500,000 |
3,732,750 |
|
|
Series 2012-GC6: |
|
|
|
|
|
Class C, 5.6379% 1/10/45 (h)(i) |
|
3,600,000 |
4,118,888 |
|
|
Class D, 5.6379% 1/10/45 (h)(i) |
|
2,000,000 |
2,154,417 |
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class C, 5.7228% 5/10/45 (i) |
|
6,500,000 |
7,449,738 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
GS Mortgage Securities Trust: - continued |
|
|
|
|
|
Series 2012-GCJ7: |
|
|
|
|
|
Class D, 5.7228% 5/10/45 (h)(i) |
|
$ 3,000,000 |
$ 3,236,777 |
|
|
Class E, 5% 5/10/45 (h) |
|
6,920,000 |
6,567,582 |
|
|
Series 2012-GCJ9 Class D, 4.858% 11/10/45 (h)(i) |
|
2,000,000 |
2,034,458 |
|
|
Series 2013-GC16: |
|
|
|
|
|
Class D, 5.323% 11/10/46 (h)(i) |
|
3,750,000 |
3,865,215 |
|
|
Class F, 3.5% 11/10/46 (h) |
|
7,303,000 |
5,728,145 |
|
|
Hilton U.S.A. Trust: |
|
|
|
|
|
floater Series 2014-ORL Class E, 3.4108% 7/15/29 (h)(i) |
|
7,241,000 |
7,061,677 |
|
|
Series 2013-HLT Class EFX, 5.2216% 11/5/30 (h)(i) |
|
5,000,000 |
5,135,126 |
|
|
Invitation Homes Trust floater Series 2013-SFR1 Class E, 2.9% 12/17/30 (h)(i) |
|
1,500,000 |
1,449,049 |
|
|
JPMorgan Chase Commercial Mortgage Securities Corp.: |
|
|
|
|
|
Series 2003-C1 Class F, 5.6564% 1/12/37 (h)(i) |
|
1,000,000 |
1,010,226 |
|
|
Series 2009-IWST: |
|
|
|
|
|
Class C, 7.4453% 12/5/27 (h)(i) |
|
3,000,000 |
3,692,982 |
|
|
Class D, 7.4453% 12/5/27 (h)(i) |
|
9,550,000 |
11,622,579 |
|
|
Series 2010-CNTM Class MZ, 8.5% 8/5/20 (h) |
|
9,000,000 |
9,565,786 |
|
|
Series 2010-CNTR: |
|
|
|
|
|
Class D, 6.1838% 8/5/32 (h)(i) |
|
4,500,000 |
5,237,060 |
|
|
Class XB, 0.9305% 8/5/32 (h)(i)(j) |
|
32,655,000 |
1,276,494 |
|
|
Series 2012-CBX: |
|
|
|
|
|
Class C, 5.2402% 6/15/45 (i) |
|
4,530,000 |
5,054,817 |
|
|
Class F, 4% 6/15/45 (h) |
|
5,000,000 |
4,467,280 |
|
|
Class G 4% 6/15/45 (h) |
|
4,044,000 |
3,127,588 |
|
|
JPMorgan Chase Commercial Mortgage Securities Trust: |
|
|
|
|
|
floater: |
|
|
|
|
|
Series 2013-JWMZ Class M, 6.1665% 4/15/18 (h)(i) |
|
2,137,531 |
2,138,672 |
|
|
Series 2013-JWRZ Class E, 3.9065% 4/15/30 (h)(i) |
|
3,400,000 |
3,403,125 |
|
|
Series 2014-FBLU Class E, 3.661% 12/15/28 (h)(i) |
|
2,000,000 |
1,997,176 |
|
|
Series 2014-INN: |
|
|
|
|
|
Class E, 3.767% 6/15/29 (h)(i) |
|
9,607,000 |
9,619,998 |
|
|
Class F, 4.167% 6/15/29 (h)(i) |
|
9,618,000 |
9,650,518 |
|
|
Series 2005-LDP5 Class AJ, 5.3574% 12/15/44 (i) |
|
3,470,000 |
3,561,233 |
|
|
Series 2011-C4 Class F, 3.873% 7/15/46 (h) |
|
1,400,000 |
1,296,056 |
|
|
Series 2011-C5 Class C, 5.3229% 8/15/46 (h)(i) |
|
6,525,375 |
7,405,289 |
|
|
Series 2013-LC11 Class D, 4.2405% 4/15/46 (i) |
|
3,750,000 |
3,668,904 |
|
|
Series 2014-DSTY Class E, 3.8046% 6/10/27 (h)(i) |
|
2,525,000 |
2,358,597 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
JPMorgan Commercial Mortgage Finance Corp. Series 1999-C8 Class H, 6% 7/15/31 (h) |
|
$ 1,090,120 |
$ 1,010,366 |
|
|
LB-UBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2005-C3 Class AJ, 4.843% 7/15/40 |
|
6,620,000 |
6,666,611 |
|
|
Series 2005-C7 Class AJ, 5.323% 11/15/40 (i) |
|
8,000,000 |
8,196,712 |
|
|
Series 2006-C7 Class AM, 5.378% 11/15/38 |
|
2,040,000 |
2,162,879 |
|
|
Series 2005-C1 Class E, 4.924% 2/15/40 |
|
4,000,000 |
4,007,876 |
|
|
Series 2006-C4: |
|
|
|
|
|
Class A4, 5.8331% 6/15/38 (i) |
|
4,785,122 |
5,013,588 |
|
|
Class AJ, 5.8531% 6/15/38 (i) |
|
7,005,000 |
7,288,268 |
|
|
Class AM, 5.8531% 6/15/38 (i) |
|
6,700,000 |
7,097,712 |
|
|
LSTAR Commercial Mortgage Trust: |
|
|
|
|
|
Series 2011-1 Class D, 5.3544% 6/25/43 (h)(i) |
|
4,699,000 |
4,763,974 |
|
|
Series 2014-2: |
|
|
|
|
|
Class D, 5.1491% 1/20/41 (h)(i) |
|
3,000,000 |
2,914,728 |
|
|
Class E, 5.1491% 1/20/41 (h)(i) |
|
4,800,000 |
4,106,578 |
|
|
Mach One Trust LLC Series 2004-1A Class H, 6.2229% 5/28/40 (h)(i) |
|
2,840,000 |
2,868,400 |
|
|
Merrill Lynch Financial Asset, Inc. Series 2005-CA16: |
|
|
|
|
|
Class F, 4.384% 7/12/37 |
CAD |
710,000 |
553,206 |
|
|
Class G, 4.384% 7/12/37 |
CAD |
355,000 |
275,440 |
|
|
Class H, 4.384% 7/12/37 |
CAD |
236,000 |
182,343 |
|
|
Class J, 4.384% 7/12/37 |
CAD |
355,000 |
273,145 |
|
|
Class K, 4.384% 7/12/37 |
CAD |
355,000 |
272,013 |
|
|
Class L, 4.384% 7/12/37 |
CAD |
236,000 |
180,085 |
|
|
Class M, 4.384% 7/12/37 |
CAD |
995,000 |
739,350 |
|
|
Merrill Lynch Mortgage Trust Series 2006-C1 Class AM, 5.6771% 5/12/39 (i) |
|
1,200,000 |
1,258,271 |
|
|
Mezz Capital Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2004-C1 Class A, 4.836% 1/15/37 (h) |
|
11,995 |
11,965 |
|
|
Series 2004-C2 Class A, 5.318% 10/15/40 (h) |
|
3,101 |
3,101 |
|
|
Series 2004-C1 Class IO, 8.9377% 1/15/37 (h)(i)(j) |
|
391,202 |
11,267 |
|
|
Morgan Stanley BAML Trust: |
|
|
|
|
|
Series 2012-C6 Class D, 4.6617% 11/15/45 (h)(i) |
|
2,000,000 |
2,110,712 |
|
|
Series 2013-C12 Class D, 4.7686% 10/15/46 (h)(i) |
|
3,250,000 |
3,227,257 |
|
|
Series 2013-C13 Class D, 4.8954% 11/15/46 (h)(i) |
|
3,100,000 |
3,094,200 |
|
|
Series 2013-C7 Class E, 4.3017% 2/15/46 (h)(i) |
|
1,000,000 |
891,623 |
|
|
Series 2013-C9 Class D, 4.1589% 5/15/46 (h)(i) |
|
5,000,000 |
4,858,790 |
|
|
Morgan Stanley Capital I Trust: |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2006-HQ10 Class AM, 5.36% 11/12/41 |
|
8,200,000 |
8,727,916 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
Morgan Stanley Capital I Trust: - continued |
|
|
|
|
|
sequential payer: |
|
|
|
|
|
Series 2012-C4 Class E, 5.525% 3/15/45 (h)(i) |
|
$ 5,630,000 |
$ 6,061,083 |
|
|
Series 1997-RR Class F, 7.4345% 4/30/39 (h)(i) |
|
846,456 |
848,572 |
|
|
Series 1998-CF1 Class G, 7.35% 7/15/32 (h) |
|
2,640,173 |
2,591,026 |
|
|
Series 2005-HQ5 Class B, 5.272% 1/14/42 |
|
168,455 |
168,480 |
|
|
Series 2005-HQ6 Class AJ, 5.073% 8/13/42 (i) |
|
2,500,000 |
2,527,518 |
|
|
Series 2006-IQ12 Class AMFX, 5.37% 12/15/43 |
|
7,500,000 |
7,990,373 |
|
|
Series 2011-C1 Class C, 5.2512% 9/15/47 (h)(i) |
|
4,000,000 |
4,506,092 |
|
|
Series 2011-C2: |
|
|
|
|
|
Class D, 5.304% 6/15/44 (h)(i) |
|
4,610,000 |
5,098,503 |
|
|
Class E, 5.304% 6/15/44 (h)(i) |
|
9,600,000 |
10,320,413 |
|
|
Class F, 5.304% 6/15/44 (h)(i) |
|
4,440,000 |
4,337,662 |
|
|
Class XB, 0.4589% 6/15/44 (h)(i)(j) |
|
63,708,222 |
1,794,278 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.1828% 7/15/49 (h)(i) |
|
2,000,000 |
2,222,734 |
|
|
Class D, 5.1828% 7/15/49 (h)(i) |
|
7,400,000 |
8,084,567 |
|
|
Series 2012-C4 Class D, 5.525% 3/15/45 (h)(i) |
|
6,310,000 |
7,011,571 |
|
|
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (h) |
|
4,404,349 |
5,716,845 |
|
|
RBSCF Trust Series 2010-MB1 Class D, 5.1367% 4/15/24 (h)(i) |
|
9,049,000 |
9,071,224 |
|
|
SCG Trust Series 2013-SRP1 Class D, 3.4999% 11/15/26 (h)(i) |
|
1,000,000 |
978,494 |
|
|
TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.5597% 8/15/39 (i) |
|
2,080,000 |
2,131,393 |
|
|
TimberStar Trust I Series 2006-1 Class F, 7.5296% 10/15/36 (h) |
|
10,630,000 |
11,110,115 |
|
|
UBS Commercial Mortgage Trust Series 2012-C1 Class D, 5.5426% 5/10/45 (h)(i) |
|
3,235,000 |
3,457,073 |
|
|
UBS-Barclays Commercial Mortgage Trust sequential payer Series 2012-C3 Class A1, 0.726% 8/10/49 |
|
2,249,994 |
2,234,095 |
|
|
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 5.8876% 1/10/45 (h)(i) |
|
3,000,000 |
3,603,720 |
|
|
Vornado DP LLC Series 2010-VNO Class D, 6.3555% 9/13/28 (h) |
|
2,540,000 |
3,011,345 |
|
|
Wachovia Bank Commercial Mortgage Trust: |
|
|
|
|
|
Series 2004-C11: |
|
|
|
|
|
Class D, 5.1384% 1/15/41 (i) |
|
5,177,000 |
5,290,252 |
|
|
Class E, 5.1884% 1/15/41 (i) |
|
3,785,000 |
3,878,998 |
|
|
Series 2004-C12 Class D, 5.4173% 7/15/41 (i) |
|
928,145 |
929,070 |
|
|
Wells Fargo Commercial Mortgage Trust Series 2012-LC5 Class D, 4.7778% 10/15/45 (h)(i) |
|
9,999,000 |
10,284,931 |
|
|
Commercial Mortgage Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
WF-RBS Commercial Mortgage Trust: |
|
|
|
|
|
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (h) |
|
$ 4,000,000 |
$ 3,338,000 |
|
|
Series 2011-C3: |
|
|
|
|
|
Class C, 5.335% 3/15/44 (h) |
|
4,900,000 |
5,482,287 |
|
|
Class D, 5.5496% 3/15/44 (h)(i) |
|
1,000,000 |
1,099,016 |
|
|
Class E, 5% 3/15/44 (h) |
|
3,000,000 |
2,846,802 |
|
|
Series 2011-C5: |
|
|
|
|
|
Class F, 5.25% 11/15/44 (h)(i) |
|
3,000,000 |
2,840,313 |
|
|
Class G, 5.25% 11/15/44 (h)(i) |
|
2,000,000 |
1,774,200 |
|
|
Series 2012-C10 Class E, 4.4581% 12/15/45 (h)(i) |
|
4,090,000 |
3,621,032 |
|
|
Series 2012-C7: |
|
|
|
|
|
Class D, 4.8452% 6/15/45 (h)(i) |
|
2,380,000 |
2,565,326 |
|
|
Class F, 4.5% 6/15/45 (h) |
|
2,000,000 |
1,783,920 |
|
|
Series 2013-C11: |
|
|
|
|
|
Class D, 4.1819% 3/15/45 (h)(i) |
|
5,830,000 |
5,729,485 |
|
|
Class E, 4.1819% 3/15/45 (h)(i) |
|
4,780,000 |
4,152,807 |
|
|
Series 2013-C13 Class D, 4.2791% 5/15/45 (h)(i) |
|
4,000,000 |
3,884,716 |
|
|
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $538,972,148) |
|
|||
|
Bank Loan Obligations - 7.9% |
||||
|
|
||||
|
CONSUMER DISCRETIONARY - 2.7% |
||||
|
Hotels, Restaurants & Leisure - 2.0% |
||||
|
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (i) |
|
13,305,302 |
12,689,931 |
|
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (i) |
|
9,243,550 |
8,527,175 |
|
|
CityCenter Holdings LLC Tranche B, term loan 4.25% 10/16/20 (i) |
|
4,067,130 |
4,041,914 |
|
|
Cooper Hotel Group 12% 11/6/17 |
|
13,243,994 |
13,906,193 |
|
|
Four Seasons Holdings, Inc. Tranche 2LN, term loan 6.25% 12/27/20 (i) |
|
2,150,000 |
2,144,625 |
|
|
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (i) |
|
26,674,479 |
26,407,734 |
|
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (i) |
|
14,265,248 |
14,158,258 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
CONSUMER DISCRETIONARY - continued |
||||
|
Hotels, Restaurants & Leisure - continued |
||||
|
Playa Resorts Holding BV Tranche B, term loan 4% 8/9/19 (i) |
|
$ 8,156,115 |
$ 8,023,578 |
|
|
Ryman Hospitality Properties, Inc. Tranche B, term loan 3.75% 1/15/21 (i) |
|
2,278,550 |
2,278,550 |
|
|
|
92,177,958 |
|||
|
Media - 0.2% |
||||
|
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. Tranche B, term loan 3% 1/31/21 (i) |
|
8,295,000 |
8,149,838 |
|
|
Multiline Retail - 0.3% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan 6% 5/22/18 (i) |
|
15,463,647 |
15,289,681 |
|
|
Specialty Retail - 0.2% |
||||
|
The Pep Boys - Manny, Moe & Jack Tranche B, term loan 4.25% 10/11/18 (i) |
|
6,245,355 |
6,182,902 |
|
|
TOTAL CONSUMER DISCRETIONARY |
121,800,379 |
|||
|
CONSUMER STAPLES - 0.3% |
||||
|
Food & Staples Retailing - 0.3% |
||||
|
Albertson's LLC: |
|
|
|
|
|
Tranche B 2LN, term loan 4.75% 3/21/19 (i) |
|
5,123,347 |
5,104,134 |
|
|
Tranche B 3LN, term loan 4% 8/25/19 (i) |
|
8,485,000 |
8,431,969 |
|
|
|
13,536,103 |
|||
|
ENERGY - 0.4% |
||||
|
Oil, Gas & Consumable Fuels - 0.4% |
||||
|
Panda Sherman Power, LLC term loan 9% 9/14/18 (i) |
|
7,184,245 |
7,166,285 |
|
|
Panda Temple Power, LLC term loan 7.25% 4/3/19 (i) |
|
8,580,000 |
8,440,575 |
|
|
TPF II Power, LLC Tranche B, term loan 5.5% 10/2/21 (i) |
|
4,260,000 |
4,270,650 |
|
|
|
19,877,510 |
|||
|
FINANCIALS - 2.1% |
||||
|
Diversified Financial Services - 0.4% |
||||
|
Blackstone 9.98% 10/1/17 |
|
17,089,815 |
17,089,815 |
|
|
Real Estate Investment Trusts - 0.2% |
||||
|
Starwood Property Trust, Inc. Tranche B, term loan 3.5% 4/17/20 (i) |
|
10,878,128 |
10,592,577 |
|
|
Real Estate Management & Development - 1.0% |
||||
|
CityCenter 8.74% 7/10/15 (i) |
|
3,307,347 |
3,307,347 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Real Estate Management & Development - continued |
||||
|
Realogy Corp. Credit-Linked Deposit 4.4463% 10/10/16 (i) |
|
$ 422,724 |
$ 415,326 |
|
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (i) |
|
44,245,717 |
43,582,031 |
|
|
|
47,304,704 |
|||
|
Thrifts & Mortgage Finance - 0.5% |
||||
|
Ocwen Loan Servicing, LLC Tranche B, term loan 5% 2/15/18 (i) |
|
25,099,143 |
23,373,577 |
|
|
TOTAL FINANCIALS |
98,360,673 |
|||
|
HEALTH CARE - 0.5% |
||||
|
Health Care Providers & Services - 0.5% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
Tranche D, term loan 4.25% 1/27/21 (i) |
|
2,090,052 |
2,090,052 |
|
|
Tranche E, term loan 3.4856% 1/25/17 (i) |
|
784,162 |
780,242 |
|
|
ESH Hospitality, Inc. Tranche B, term loan 5% 6/24/19 (i) |
|
14,550,000 |
14,604,563 |
|
|
Skilled Healthcare Group, Inc. term loan 7.1398% 4/9/16 (i) |
|
6,992,760 |
6,975,278 |
|
|
|
24,450,135 |
|||
|
INDUSTRIALS - 0.6% |
||||
|
Commercial Services & Supplies - 0.3% |
||||
|
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (i) |
|
3,970,000 |
3,865,788 |
|
|
Pilot Travel Centers LLC Tranche B, term loan 4.25% 10/3/21 (i) |
|
9,975,000 |
9,987,968 |
|
|
|
13,853,756 |
|||
|
Construction & Engineering - 0.3% |
||||
|
Drumm Investors LLC Tranche B, term loan 6.75% 5/4/18 (i) |
|
11,424,965 |
11,424,965 |
|
|
TOTAL INDUSTRIALS |
25,278,721 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
TELECOMMUNICATION SERVICES - 0.5% |
||||
|
Wireless Telecommunication Services - 0.5% |
||||
|
Crown Castle Operating Co. Tranche B 2LN, term loan 3% 1/31/21 (i) |
|
$ 9,075,185 |
$ 8,919,001 |
|
|
SBA Senior Finance II, LLC term loan 3.25% 3/24/21 (i) |
|
13,925,025 |
13,698,743 |
|
|
|
22,617,744 |
|||
|
UTILITIES - 0.8% |
||||
|
Electric Utilities - 0.6% |
||||
|
Bayonne Energy Center, LLC Tranche B, term loan 5% 8/19/21 (i) |
|
1,507,839 |
1,485,221 |
|
|
Calpine Construction Finance Co. LP Tranche B 2LN, term loan 3.25% 1/31/22 (i) |
|
7,343,443 |
7,150,678 |
|
|
EquiPower Resources Holdings LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.25% 12/21/18 (i) |
|
4,698,016 |
4,674,526 |
|
|
Tranche C, term loan 4.25% 12/31/19 (i) |
|
1,143,014 |
1,137,299 |
|
|
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (i) |
|
3,380,107 |
3,337,856 |
|
|
La Frontera Generation, LLC Tranche B, term loan 4.5% 9/30/20 (i) |
|
6,102,475 |
5,980,425 |
|
|
Southeast Powergen LLC Tranche B, term loan 4.5% 12/2/21 (i) |
|
2,770,000 |
2,756,150 |
|
|
|
26,522,155 |
|||
|
Independent Power Producers & Renewable Electricity Producers - 0.2% |
||||
|
Calpine Corp. Tranche B 4LN, term loan 4% 10/31/20 (i) |
|
1,980,000 |
1,960,200 |
|
|
Tempus Public Foundation Generation Holdings LLC Tranche B, term loan 4.75% 12/31/17 (i) |
|
9,854,950 |
8,968,004 |
|
|
|
10,928,204 |
|||
|
TOTAL UTILITIES |
37,450,359 |
|||
|
TOTAL BANK LOAN OBLIGATIONS (Cost $368,439,360) |
|
|||
|
Preferred Securities - 0.0% |
||||
|
|
||||
|
FINANCIALS - 0.0% |
||||
|
Diversified Financial Services - 0.0% |
||||
|
Crest Dartmouth Street 2003 1 Ltd. Series 2003-1A Class PS, 6/28/38 (h)(i) |
|
1,220,000 |
562,786 |
|
|
Preferred Securities - continued |
||||
|
|
Principal Amount (e) |
Value |
||
|
FINANCIALS - continued |
||||
|
Thrifts & Mortgage Finance - 0.0% |
||||
|
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (h)(i) |
|
$ 500,000 |
$ 250 |
|
|
TOTAL PREFERRED SECURITIES (Cost $1,297,768) |
|
|||
|
Money Market Funds - 7.3% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.13% (b) |
332,799,976 |
332,799,976 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
2,611,700 |
2,611,700 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $335,411,676) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 99.8% (Cost $4,221,908,265) |
4,600,696,376 |
||
|
NET OTHER ASSETS (LIABILITIES) - 0.2% |
8,136,127 |
||
|
NET ASSETS - 100% |
$ 4,608,832,503 |
||
|
Currency Abbreviations |
||
|
CAD |
- |
Canadian dollar |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Non-income producing - Security is in default. |
|
(e) Amount is stated in United States dollars unless otherwise noted. |
|
(f) Security or a portion of the security is on loan at period end. |
|
(g) Affiliated company |
|
(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $701,223,927 or 15.2% of net assets. |
|
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(j) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period. |
|
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,228,086 or 0.2% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Fannie Mae REMIC Trust Series 2001-W3 subordinate REMIC pass thru certificates, Class B3, 7% 9/25/41 |
5/21/03 |
$ 66,085 |
|
Fannie Mae REMIC Trust Series 2003-W1 subordinate REMIC pass thru certificates, Class B3, 4.4514% 12/25/42 |
3/25/03 |
$ 94,332 |
|
Stanley Martin Communities LLC Class B |
8/3/05 - 3/1/07 |
$ 4,244,623 |
|
(l) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 187,992 |
|
Fidelity Securities Lending Cash Central Fund |
17,947 |
|
Total |
$ 205,939 |
|
Other Affiliated Issuers |
|
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
|
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
|
Acadia Realty Trust (SBI) |
$ 98,809,206 |
$ 6,057,602 |
$ - |
$ 2,810,446 |
$ 133,937,344 |
|
Arbor Realty Trust, Inc. |
21,697,653 |
- |
- |
797,934 |
21,329,376 |
|
Arbor Realty Trust, Inc. 7.375% |
8,162,637 |
2,420,000 |
- |
396,964 |
10,790,961 |
|
Arbor Realty Trust, Inc. Series A, 8.25% |
4,727,225 |
- |
- |
194,998 |
4,765,043 |
|
Arbor Realty Trust, Inc. Series B, 7.75% |
5,882,400 |
- |
- |
232,500 |
5,891,760 |
|
Arbor Realty Trust, Inc. Series C, 8.50% |
2,525,000 |
- |
- |
106,250 |
2,557,000 |
|
Total |
$ 141,804,121 |
$ 8,477,602 |
$ - |
$ 4,539,092 |
$ 179,271,484 |
|
Other Information |
|
The following is a summary of the inputs used, as of January 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 15,687,755 |
$ 8,513,126 |
$ - |
$ 7,174,629 |
|
Financials |
2,259,500,569 |
2,211,834,850 |
47,665,695 |
24 |
|
Corporate Bonds |
926,557,308 |
- |
926,080,975 |
476,333 |
|
Asset-Backed Securities |
92,890,592 |
- |
87,022,531 |
5,868,061 |
|
Collateralized Mortgage Obligations |
10,618,354 |
- |
9,889,992 |
728,362 |
|
Commercial Mortgage Securities |
596,095,462 |
- |
593,619,880 |
2,475,582 |
|
Bank Loan Obligations |
363,371,624 |
- |
343,598,133 |
19,773,491 |
|
Preferred Securities |
563,036 |
- |
- |
563,036 |
|
Money Market Funds |
335,411,676 |
335,411,676 |
- |
- |
|
Total Investments in Securities: |
$ 4,600,696,376 |
$ 2,555,759,652 |
$ 2,007,877,206 |
$ 37,059,518 |
|
Valuation Inputs at Reporting Date: |
|
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
|
Investments in Securities: |
|
|
Bank Loan Obligations |
|
|
Beginning Balance |
$ 47,410,682 |
|
Net Realized Gain (Loss) on Investment Securities |
5,619 |
|
Net Unrealized Gain (Loss) on Investment Securities |
43,346 |
|
Cost of Purchases |
1,642,050 |
|
Proceeds of Sales |
(12,359,953) |
|
Amortization/Accretion |
(67,192) |
|
Transfers into Level 3 |
646,428 |
|
Transfers out of Level 3 |
(17,547,489) |
|
Ending Balance |
$ 19,773,491 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ 43,346 |
|
Other Investments in Securities |
|
|
Beginning Balance |
$ 31,191,916 |
|
Net Realized Gain (Loss) on Investment Securities |
(4,434,429) |
|
Net Unrealized Gain (Loss) on Investment Securities |
5,983,766 |
|
Cost of Purchases |
99,942 |
|
Proceeds of Sales |
(8,014,428) |
|
Amortization/Accretion |
290,537 |
|
Transfers into Level 3 |
- |
|
Transfers out of Level 3 |
(7,831,277) |
|
Ending Balance |
$ 17,286,027 |
|
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2015 |
$ (8,454) |
|
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations. |
|
Other Information |
|
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
|
U.S. Government and U.S. Government Agency Obligations |
0.2% |
|
AAA,AA,A |
3.4% |
|
BBB |
10.4% |
|
BB |
9.2% |
|
B |
10.8% |
|
CCC,CC,C |
1.0% |
|
D |
0.0% |
|
Not Rated |
8.1% |
|
Equities |
49.4% |
|
Short-Term Investments and Net Other Assets |
7.5% |
|
|
100.0% |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
|
January 31, 2015 |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $2,539,082) - See accompanying schedule: Unaffiliated issuers (cost $3,757,112,385) |
$ 4,086,013,216 |
|
|
Fidelity Central Funds (cost $335,411,676) |
335,411,676 |
|
|
Other affiliated issuers (cost $129,384,204) |
179,271,484 |
|
|
Total Investments (cost $4,221,908,265) |
|
$ 4,600,696,376 |
|
Cash |
|
6,827,434 |
|
Receivable for investments sold |
|
2,213,717 |
|
Receivable for fund shares sold |
|
9,253,135 |
|
Dividends receivable |
|
3,116,137 |
|
Interest receivable |
|
18,078,147 |
|
Distributions receivable from Fidelity Central Funds |
|
45,283 |
|
Prepaid expenses |
|
6,183 |
|
Other receivables |
|
12,064 |
|
Total assets |
|
4,640,248,476 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
|
|
|
Regular delivery |
$ 16,805,792 |
|
|
Delayed delivery |
1,500,000 |
|
|
Payable for fund shares redeemed |
7,056,868 |
|
|
Accrued management fee |
2,089,026 |
|
|
Distribution and service plan fees payable |
349,293 |
|
|
Other affiliated payables |
902,571 |
|
|
Other payables and accrued expenses |
100,723 |
|
|
Collateral on securities loaned, at value |
2,611,700 |
|
|
Total liabilities |
|
31,415,973 |
|
|
|
|
|
Net Assets |
|
$ 4,608,832,503 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 4,230,459,716 |
|
Distributions in excess of net investment income |
|
(10,180,473) |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
9,765,860 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
378,787,400 |
|
Net Assets |
|
$ 4,608,832,503 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2015 |
|
|
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 11.88 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.88) |
|
$ 12.37 |
|
Class T: |
|
$ 11.89 |
|
|
|
|
|
Maximum offering price per share (100/96.00 of $11.89) |
|
$ 12.39 |
|
Class C: |
|
$ 11.79 |
|
|
|
|
|
Real Estate Income: |
|
$ 11.93 |
|
|
|
|
|
Institutional Class: |
|
$ 11.90 |
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
|
|
Six months ended January 31, 2015 |
|
|
|
|
|
|
Investment Income |
|
|
|
Dividends (including $4,539,092 earned from other affiliated issuers) |
|
$ 64,172,176 |
|
Interest |
|
56,773,494 |
|
Income from Fidelity Central Funds |
|
205,939 |
|
Total income |
|
121,151,609 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 11,904,033 |
|
|
Transfer agent fees |
4,675,064 |
|
|
Distribution and service plan fees |
1,959,164 |
|
|
Accounting and security lending fees |
670,766 |
|
|
Custodian fees and expenses |
32,928 |
|
|
Independent trustees' compensation |
8,930 |
|
|
Registration fees |
109,947 |
|
|
Audit |
84,607 |
|
|
Legal |
7,554 |
|
|
Miscellaneous |
12,438 |
|
|
Total expenses before reductions |
19,465,431 |
|
|
Expense reductions |
(25,516) |
19,439,915 |
|
Net investment income (loss) |
|
101,711,694 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
24,266,988 |
|
|
Foreign currency transactions |
8,566 |
|
|
Total net realized gain (loss) |
|
24,275,554 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
109,899,284 |
|
|
Assets and liabilities in foreign currencies |
(24,247) |
|
|
Total change in net unrealized appreciation (depreciation) |
|
109,875,037 |
|
Net gain (loss) |
|
134,150,591 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 235,862,285 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended January 31, |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 101,711,694 |
$ 170,741,524 |
|
Net realized gain (loss) |
24,275,554 |
105,884,376 |
|
Change in net unrealized appreciation (depreciation) |
109,875,037 |
30,348,946 |
|
Net increase (decrease) in net assets resulting from operations |
235,862,285 |
306,974,846 |
|
Distributions to shareholders from net investment income |
(146,546,341) |
(172,155,251) |
|
Distributions to shareholders from net realized gain |
(75,677,557) |
(78,297,244) |
|
Total distributions |
(222,223,898) |
(250,452,495) |
|
Share transactions - net increase (decrease) |
421,078,266 |
(6,051,637) |
|
Redemption fees |
139,170 |
438,384 |
|
Total increase (decrease) in net assets |
434,855,823 |
50,909,098 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
4,173,976,680 |
4,123,067,582 |
|
End of period (including distributions in excess of net investment income of $10,180,473 and undistributed net investment income of $34,654,174, respectively) |
$ 4,608,832,503 |
$ 4,173,976,680 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.53 |
.18 |
|
Net realized and unrealized gain (loss) |
.35 |
.44 |
.60 |
.61 |
.76 |
(.04) |
|
Total from investment operations |
.62 |
.93 |
1.14 |
1.13 |
1.29 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.51) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.74) |
(.73) |
(.60) K |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.88 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.73 |
$ 9.94 |
|
Total ReturnB, C, D |
5.41% |
8.49% |
10.45% |
11.24% |
13.27% |
1.46% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.04%A |
1.06% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of fee waivers, if any |
1.04%A |
1.05% |
1.08% |
1.12% |
1.13% |
1.09%A |
|
Expenses net of all reductions |
1.04%A |
1.05% |
1.07% |
1.11% |
1.12% |
1.09%A |
|
Net investment income (loss) |
4.56%A |
4.28% |
4.62% |
4.89% |
5.00% |
6.23%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 499,749 |
$ 442,271 |
$ 378,269 |
$ 137,352 |
$ 60,283 |
$ 3,830 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2013. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.60 per share is comprised of distributions from net investment income of $.505 and distributions from net realized gain of $.097 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
$ 9.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.27 |
.49 |
.54 |
.52 |
.52 |
.17 |
|
Net realized and unrealized gain (loss) |
.36 |
.43 |
.60 |
.62 |
.76 |
(.03) |
|
Total from investment operations |
.63 |
.92 |
1.14 |
1.14 |
1.28 |
.14 |
|
Distributions from net investment income |
(.39) |
(.50) |
(.53) |
(.50) |
(.50) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.60) |
(.73) K |
(.73) |
(.60) |
(.50) |
(.15) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.89 |
$ 11.86 |
$ 11.67 |
$ 11.26 |
$ 10.72 |
$ 9.94 |
|
Total ReturnB, C, D |
5.49% |
8.44% |
10.42% |
11.33% |
13.11% |
1.45% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of fee waivers, if any |
1.07%A |
1.08% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Expenses net of all reductions |
1.07%A |
1.07% |
1.08% |
1.11% |
1.16% |
1.17%A |
|
Net investment income (loss) |
4.53%A |
4.26% |
4.61% |
4.90% |
4.96% |
5.92%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 57,278 |
$ 48,164 |
$ 46,198 |
$ 26,143 |
$ 7,626 |
$ 862 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. K Total distributions of $.73 per share is comprised of distributions from net investment income of $.496 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 H |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) E |
.22 |
.40 |
.45 |
.44 |
.45 |
.15 |
|
Net realized and unrealized gain (loss) |
.35 |
.43 |
.60 |
.62 |
.74 |
(.03) |
|
Total from investment operations |
.57 |
.83 |
1.05 |
1.06 |
1.19 |
.12 |
|
Distributions from net investment income |
(.34) |
(.42) |
(.46) |
(.43) |
(.45) |
(.14) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.55) |
(.65) K |
(.66) |
(.53) |
(.45) |
(.14) |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.79 |
$ 11.77 |
$ 11.59 |
$ 11.20 |
$ 10.67 |
$ 9.93 |
|
Total ReturnB, C, D |
5.02% |
7.66% |
9.66% |
10.49% |
12.25% |
1.29% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of fee waivers, if any |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Expenses net of all reductions |
1.79%A |
1.79% |
1.81% |
1.87% |
1.89% |
1.86%A |
|
Net investment income (loss) |
3.81%A |
3.54% |
3.88% |
4.14% |
4.23% |
5.21%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 288,754 |
$ 246,306 |
$ 204,012 |
$ 52,780 |
$ 21,555 |
$ 836 |
|
Portfolio turnover rateG |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period April 14, 2010 (commencement of sale of shares) to July 31, 2010. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Total distributions of $.65 per share is comprised of distributions from net investment income of $.417 and distributions from net realized gain of $.236 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Real Estate Income
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
$ 8.21 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.54 |
.55 |
.53 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
1.73 |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.16 |
1.31 |
2.26 |
|
Distributions from net investment income |
(.40) |
(.53) |
(.55) |
(.52) |
(.51) |
(.52) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) I |
(.76) J |
(.75) |
(.62) |
(.51) |
(.52) |
|
Redemption fees added to paid in capital D, H |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.93 |
$ 11.91 |
$ 11.71 |
$ 11.29 |
$ 10.75 |
$ 9.95 |
|
Total ReturnB, C |
5.51% |
8.78% |
10.71% |
11.50% |
13.41% |
28.29% |
|
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
|
Expenses before reductions |
.83%A |
.83% |
.84% |
.90% |
.92% |
.97% |
|
Expenses net of fee waivers, if any |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Expenses net of all reductions |
.82%A |
.83% |
.84% |
.89% |
.92% |
.96% |
|
Net investment income (loss) |
4.77%A |
4.50% |
4.85% |
5.12% |
5.21% |
5.60% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 2,777,817 |
$ 2,627,382 |
$ 2,884,545 |
$ 2,252,149 |
$ 1,660,063 |
$ 1,030,393 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. I Total distributions of $.62 per share is comprised of distributions from net investment income of $.404 and distributions from net realized gain of $.212 per share. J Total distributions of $.76 per share is comprised of distributions from net investment income of $.525 and distributions from net realized gain of $.236. |
||||||
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
|
|
Six months ended January 31, |
Years ended July 31, |
||||
|
|
2015 |
2014 |
2013 |
2012 |
2011 |
2010 G |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
$ 9.95 |
|
Income from Investment |
|
|
|
|
|
|
|
Net investment income (loss) D |
.28 |
.52 |
.57 |
.55 |
.55 |
.19 |
|
Net realized and unrealized gain (loss) |
.36 |
.44 |
.60 |
.62 |
.76 |
(.04) |
|
Total from investment operations |
.64 |
.96 |
1.17 |
1.17 |
1.31 |
.15 |
|
Distributions from net investment income |
(.41) |
(.53) |
(.56) |
(.53) |
(.52) |
(.15) |
|
Distributions from net realized gain |
(.21) |
(.24) |
(.20) |
(.10) |
- |
- |
|
Total distributions |
(.62) |
(.77) |
(.76) |
(.63) |
(.52) |
(.15) |
|
Redemption fees added to paid in capital D, I |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 11.90 |
$ 11.88 |
$ 11.69 |
$ 11.28 |
$ 10.74 |
$ 9.95 |
|
Total ReturnB, C |
5.57% |
8.76% |
10.72% |
11.62% |
13.44% |
1.58% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of fee waivers, if any |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Expenses net of all reductions |
.78%A |
.78% |
.80% |
.84% |
.89% |
.85%A |
|
Net investment income (loss) |
4.82%A |
4.55% |
4.89% |
5.17% |
5.24% |
6.70%A |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 985,236 |
$ 809,854 |
$ 610,045 |
$ 217,435 |
$ 43,282 |
$ 2,930 |
|
Portfolio turnover rateF |
17% A |
29% |
26% |
27% |
25% |
28% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period April 14, 2010 (commencement of sale of shares) to July 30, 2010. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015
1. Organization.
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 Fund offers Class A, Class T, Class C, Real Estate Income 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset-backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2015, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, equity-debt classifications and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 481,167,029 |
|
|
Gross unrealized depreciation |
(103,467,625) |
|
|
Net unrealized appreciation (depreciation) on securities |
$ 377,699,404 |
|
|
|
|
|
|
Tax cost |
$ 4,222,996,972 |
|
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to .75% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and
Semiannual Report
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $621,113,393 and $350,563,339, respectively.
Semiannual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
|
Distribution |
Service |
Total |
Retained |
|
Class A |
-% |
.25% |
$ 567,846 |
$ 16,744 |
|
Class T |
-% |
.25% |
63,531 |
- |
|
Class C |
.75% |
.25% |
1,327,787 |
435,578 |
|
|
|
|
$ 1,959,164 |
$ 452,322 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained |
|
Class A |
$ 41,899 |
|
Class T |
5,006 |
|
Class C* |
23,532 |
|
|
$ 70,437 |
* When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount |
% of |
|
Class A |
$ 445,958 |
.20 |
|
Class T |
56,862 |
.22 |
|
Class C |
257,348 |
.19 |
|
Real Estate Income |
3,081,077 |
.23 |
|
Institutional Class |
833,819 |
.18 |
|
|
$ 4,675,064 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,158 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,919 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Semiannual Report
Notes to Financial Statements - continued
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $17,947. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19,936 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 $1,348.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses, including certain Real Estate Income expenses during the period in the amount of $4,232.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Class A |
$ 15,122,863 |
$ 16,638,771 |
|
Class T |
1,684,419 |
1,842,576 |
|
Class C |
7,818,920 |
7,530,932 |
|
Real Estate Income |
90,298,969 |
117,401,887 |
|
Institutional Class |
31,621,170 |
28,741,085 |
|
Total |
$ 146,546,341 |
$ 172,155,251 |
|
From net realized gain |
|
|
|
Class A |
$ 7,958,841 |
$ 7,591,572 |
|
Class T |
875,220 |
874,881 |
|
Class C |
4,645,932 |
4,152,718 |
|
Real Estate Income |
46,720,433 |
53,508,422 |
|
Institutional Class |
15,477,131 |
12,169,651 |
|
Total |
$ 75,677,557 |
$ 78,297,244 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Class A |
|
|
|
|
|
Shares sold |
9,766,902 |
18,815,698 |
$ 114,976,560 |
$ 217,399,754 |
|
Reinvestment of distributions |
1,788,200 |
1,805,230 |
20,829,273 |
20,178,624 |
|
Shares redeemed |
(6,792,343) |
(15,738,034) |
(79,763,885) |
(180,458,692) |
|
Net increase (decrease) |
4,762,759 |
4,882,894 |
$ 56,041,948 |
$ 57,119,686 |
|
Class T |
|
|
|
|
|
Shares sold |
969,612 |
1,270,924 |
$ 11,435,988 |
$ 14,645,845 |
|
Reinvestment of distributions |
202,446 |
211,146 |
2,358,154 |
2,357,016 |
|
Shares redeemed |
(413,416) |
(1,380,258) |
(4,866,406) |
(15,703,373) |
|
Net increase (decrease) |
758,642 |
101,812 |
$ 8,927,736 |
$ 1,299,488 |
|
Class C |
|
|
|
|
|
Shares sold |
4,742,874 |
9,015,535 |
$ 55,448,980 |
$ 103,482,191 |
|
Reinvestment of distributions |
904,783 |
813,525 |
10,466,010 |
9,012,478 |
|
Shares redeemed |
(2,089,983) |
(6,508,928) |
(24,340,004) |
(73,908,752) |
|
Net increase (decrease) |
3,557,674 |
3,320,132 |
$ 41,574,986 |
$ 38,585,917 |
Semiannual Report
Notes to Financial Statements - continued
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended January
31, |
Year ended |
|
Real Estate Income |
|
|
|
|
|
Shares sold |
29,531,997 |
61,717,695 |
$ 349,603,525 |
$ 711,894,953 |
|
Reinvestment of distributions |
10,349,604 |
13,609,464 |
121,038,299 |
152,306,330 |
|
Shares redeemed |
(27,746,338) |
(100,931,769) |
(327,687,059) |
(1,156,054,958) |
|
Net increase (decrease) |
12,135,263 |
(25,604,610) |
$ 142,954,765 |
$ (291,853,675) |
|
Institutional Class |
|
|
|
|
|
Shares sold |
23,582,339 |
40,192,476 |
$ 277,545,470 |
$ 465,679,843 |
|
Reinvestment of distributions |
2,943,991 |
2,412,058 |
34,326,111 |
27,006,597 |
|
Shares redeemed |
(11,915,809) |
(26,626,486) |
(140,292,750) |
(303,889,493) |
|
Net increase (decrease) |
14,610,521 |
15,978,048 |
$ 171,578,831 |
$ 188,796,947 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
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 schedule of investments, as of January 31, 2015, 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, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of January 31, 2015, by correspondence with the custodians, agent banks 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, 2015, the results of its operations for the six months then ended, the changes in its net assets for the six months ended January 31, 2015 and for the year ended July 31, 2014, and the financial highlights for the six months ended January 31, 2015 and for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 20, 2015
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
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)
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Telephone (FAST®) 
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
REI-USAN-0315 1.789734.111
Fidelity®
Series Real Estate Equity
Fund
Fidelity Series Real Estate Equity Fund
Class F
Semiannual Report
January 31, 2015
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Real Estate Equity Fund or 1-800-835-5092 for Class F of the fund to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2014 to January 31, 2015).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Series Real Estate Equity |
.76% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,178.00 |
$ 4.17 |
|
Hypothetical A |
|
$ 1,000.00 |
$ 1,021.37 |
$ 3.87 |
|
Class F |
.59% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,178.30 |
$ 3.24 |
|
Hypothetical A |
|
$ 1,000.00 |
$ 1,022.23 |
$ 3.01 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
Simon Property Group, Inc. |
12.3 |
12.5 |
|
Boston Properties, Inc. |
5.8 |
5.8 |
|
HCP, Inc. |
5.1 |
4.2 |
|
Essex Property Trust, Inc. |
4.9 |
4.8 |
|
SL Green Realty Corp. |
4.5 |
4.0 |
|
Digital Realty Trust, Inc. |
3.8 |
3.7 |
|
Alexandria Real Estate Equities, Inc. |
3.8 |
3.7 |
|
Federal Realty Investment Trust (SBI) |
3.4 |
3.7 |
|
Extra Space Storage, Inc. |
3.3 |
1.5 |
|
Public Storage |
3.3 |
5.1 |
|
|
50.2 |
|
|
Top Five REIT Sectors as of January 31, 2015 |
||
|
|
% of fund's |
% of fund's net assets |
|
REITs - Apartments |
17.2 |
16.8 |
|
REITs - Office Property |
15.9 |
19.1 |
|
REITs - Regional Malls |
15.6 |
15.9 |
|
REITs - Health Care |
11.5 |
10.3 |
|
REITs - Shopping Centers |
9.4 |
8.8 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of January 31, 2015 |
As of July 31, 2014 |
||||||
 |
Stocks 98.6% |
|
|
Stocks 98.9% |
|
||
 |
Short-Term |
|
|
Short-Term |
|
||
Semiannual Report
Investments January 31, 2015 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 98.6% |
|||
|
Shares |
Value |
||
|
REAL ESTATE INVESTMENT TRUSTS - 96.4% |
|||
|
REITs - Apartments - 17.2% |
|||
|
American Campus Communities, Inc. |
801,400 |
$ 35,229,544 |
|
|
AvalonBay Communities, Inc. |
140,835 |
24,363,047 |
|
|
Equity Residential (SBI) |
341,451 |
26,500,012 |
|
|
Essex Property Trust, Inc. |
270,767 |
61,206,880 |
|
|
Post Properties, Inc. |
464,651 |
28,227,548 |
|
|
UDR, Inc. |
1,247,800 |
41,501,828 |
|
|
TOTAL REITS - APARTMENTS |
217,028,859 |
||
|
REITs - Diversified - 8.0% |
|||
|
Cousins Properties, Inc. |
1,340,090 |
14,794,594 |
|
|
Digital Realty Trust, Inc. (d) |
658,100 |
48,001,814 |
|
|
Duke Realty LP |
1,159,800 |
25,318,434 |
|
|
Vornado Realty Trust |
116,300 |
12,844,172 |
|
|
TOTAL REITS - DIVERSIFIED |
100,959,014 |
||
|
REITs - Health Care - 11.5% |
|||
|
HCP, Inc. |
1,355,759 |
64,113,843 |
|
|
Health Care REIT, Inc. |
206,649 |
16,934,886 |
|
|
Medical Properties Trust, Inc. |
345,400 |
5,308,798 |
|
|
Sabra Health Care REIT, Inc. |
210,800 |
6,893,160 |
|
|
Senior Housing Properties Trust (SBI) |
868,800 |
20,234,352 |
|
|
Ventas, Inc. |
405,437 |
32,357,927 |
|
|
TOTAL REITS - HEALTH CARE |
145,842,966 |
||
|
REITs - Hotels - 6.3% |
|||
|
Ashford Hospitality Prime, Inc. |
430,300 |
7,383,948 |
|
|
FelCor Lodging Trust, Inc. |
2,455,949 |
24,584,049 |
|
|
Host Hotels & Resorts, Inc. |
659,400 |
15,093,666 |
|
|
LaSalle Hotel Properties (SBI) |
249,479 |
10,093,920 |
|
|
RLJ Lodging Trust |
377,500 |
12,861,425 |
|
|
Sunstone Hotel Investors, Inc. |
544,274 |
9,279,872 |
|
|
TOTAL REITS - HOTELS |
79,296,880 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
|||
|
REITs - Manufactured Homes - 1.6% |
|||
|
Equity Lifestyle Properties, Inc. |
35,448 |
$ 1,940,069 |
|
|
Sun Communities, Inc. |
278,455 |
18,859,757 |
|
|
TOTAL REITS - MANUFACTURED HOMES |
20,799,826 |
||
|
REITs - Office Property - 15.9% |
|||
|
Alexandria Real Estate Equities, Inc. |
492,008 |
47,980,620 |
|
|
Boston Properties, Inc. |
524,349 |
72,779,641 |
|
|
Gramercy Property Trust, Inc. |
757,200 |
5,239,824 |
|
|
New York (REIT), Inc. |
637,300 |
6,647,039 |
|
|
Piedmont Office Realty Trust, Inc. Class A (d) |
542,481 |
10,594,654 |
|
|
SL Green Realty Corp. |
453,332 |
57,119,832 |
|
|
TOTAL REITS - OFFICE PROPERTY |
200,361,610 |
||
|
REITs - Regional Malls - 15.6% |
|||
|
Simon Property Group, Inc. |
784,923 |
155,932,804 |
|
|
Tanger Factory Outlet Centers, Inc. |
90,300 |
3,553,305 |
|
|
Taubman Centers, Inc. |
466,622 |
38,239,673 |
|
|
TOTAL REITS - REGIONAL MALLS |
197,725,782 |
||
|
REITs - Shopping Centers - 9.4% |
|||
|
Cedar Shopping Centers, Inc. |
1,485,990 |
11,828,480 |
|
|
Excel Trust, Inc. |
348,792 |
4,897,040 |
|
|
Federal Realty Investment Trust (SBI) |
302,552 |
43,497,901 |
|
|
Kite Realty Group Trust |
665,650 |
20,342,264 |
|
|
Ramco-Gershenson Properties Trust (SBI) |
164,800 |
3,225,136 |
|
|
Urban Edge Properties |
543,750 |
12,908,625 |
|
|
WP Glimcher, Inc. |
1,248,411 |
22,071,906 |
|
|
TOTAL REITS - SHOPPING CENTERS |
118,771,352 |
||
|
REITs - Single Tenant - 0.1% |
|||
|
Select Income (REIT) |
28,000 |
696,360 |
|
|
REITs - Storage - 6.6% |
|||
|
Extra Space Storage, Inc. |
633,100 |
41,784,600 |
|
|
Public Storage |
207,687 |
41,711,857 |
|
|
TOTAL REITS - STORAGE |
83,496,457 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
|||
|
REITs - Warehouse/Industrial - 4.2% |
|||
|
DCT Industrial Trust, Inc. |
855,175 |
$ 32,291,408 |
|
|
Prologis, Inc. |
294,706 |
13,303,029 |
|
|
Terreno Realty Corp. |
337,300 |
7,690,440 |
|
|
TOTAL REITS - WAREHOUSE/INDUSTRIAL |
53,284,877 |
||
|
TOTAL REAL ESTATE INVESTMENT TRUSTS |
1,218,263,983 |
||
|
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% |
|||
|
Real Estate Operating Companies - 2.2% |
|||
|
Forest City Enterprises, Inc. Class A (a) |
1,123,142 |
27,516,979 |
|
|
TOTAL COMMON STOCKS (Cost $928,665,229) |
|
||
|
Money Market Funds - 2.0% |
|||
|
|
|
|
|
|
Fidelity Cash Central Fund, 0.13% (b) |
18,351,127 |
18,351,127 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.14% (b)(c) |
6,153,450 |
6,153,450 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $24,504,577) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $953,169,806) |
1,270,285,539 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.6)% |
(7,062,618) |
||
|
NET ASSETS - 100% |
|
$ 1,263,222,921 |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 6,923 |
|
Fidelity Securities Lending Cash Central Fund |
50,001 |
|
Total |
$ 56,924 |
|
Other Information |
|
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
|
|
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $5,932,129) - See accompanying schedule: Unaffiliated issuers (cost $928,665,229) |
$ 1,245,780,962 |
|
|
Fidelity Central Funds (cost $24,504,577) |
24,504,577 |
|
|
Total Investments (cost $953,169,806) |
|
$ 1,270,285,539 |
|
Receivable for investments sold |
|
7,779,909 |
|
Receivable for fund shares sold |
|
781,653 |
|
Dividends receivable |
|
815,787 |
|
Distributions receivable from Fidelity Central Funds |
|
3,983 |
|
Prepaid expenses |
|
2,273 |
|
Other receivables |
|
31,269 |
|
Total assets |
|
1,279,700,413 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 9,188,308 |
|
|
Payable for fund shares redeemed |
373,224 |
|
|
Accrued management fee |
602,250 |
|
|
Other affiliated payables |
123,008 |
|
|
Other payables and accrued expenses |
37,252 |
|
|
Collateral on securities loaned, at value |
6,153,450 |
|
|
Total liabilities |
|
16,477,492 |
|
|
|
|
|
Net Assets |
|
$ 1,263,222,921 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 892,815,935 |
|
Distributions in excess of net investment income |
|
(2,485,767) |
|
Accumulated undistributed net realized gain (loss) on investments |
|
55,777,020 |
|
Net unrealized appreciation (depreciation) on investments |
|
317,115,733 |
|
Net Assets |
|
$ 1,263,222,921 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2015 (Unaudited) |
|
|
|
|
|
|
Series Real Estate Equity: |
|
$ 15.22 |
|
|
|
|
|
Class F: |
|
$ 15.22 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
|
Six months ended January 31, 2015 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 15,795,591 |
|
Income from Fidelity Central Funds |
|
56,924 |
|
Total income |
|
15,852,515 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 3,557,875 |
|
|
Transfer agent fees |
513,996 |
|
|
Accounting and security lending fees |
210,636 |
|
|
Custodian fees and expenses |
16,646 |
|
|
Independent trustees' compensation |
2,685 |
|
|
Audit |
24,196 |
|
|
Legal |
2,250 |
|
|
Interest |
3,448 |
|
|
Miscellaneous |
3,496 |
|
|
Total expenses before reductions |
4,335,228 |
|
|
Expense reductions |
(67,882) |
4,267,346 |
|
Net investment income (loss) |
|
11,585,169 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
77,700,454 |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
128,466,437 |
|
Net gain (loss) |
|
206,166,891 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 217,752,060 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended January 31, 2015 (Unaudited) |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 11,585,169 |
$ 21,695,094 |
|
Net realized gain (loss) |
77,700,454 |
51,455,849 |
|
Change in net unrealized appreciation (depreciation) |
128,466,437 |
71,304,807 |
|
Net increase (decrease) in net assets resulting |
217,752,060 |
144,455,750 |
|
Distributions to shareholders from net investment income |
(18,604,262) |
(19,187,861) |
|
Distributions to shareholders from net realized gain |
(71,866,191) |
(29,660,377) |
|
Total distributions |
(90,470,453) |
(48,848,238) |
|
Share transactions - net increase (decrease) |
(108,861,124) |
124,245,341 |
|
Total increase (decrease) in net assets |
18,420,483 |
219,852,853 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
1,244,802,438 |
1,024,949,585 |
|
End of period (including distributions in excess of net investment income of $2,485,767 and undistributed net investment income of $4,533,236, respectively) |
$ 1,263,222,921 |
$ 1,244,802,438 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Series Real Estate Equity
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||
|
|
(Unaudited) |
2014 |
2013 |
2012 G |
|
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period |
$ 13.85 |
$ 12.87 |
$ 12.39 |
$ 10.00 |
|
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D |
.12 |
.23 |
.18 |
.11 |
|
Net realized and unrealized gain (loss) |
2.23 |
1.31 |
.78 |
2.38 |
|
Total from investment operations |
2.35 |
1.54 |
.96 |
2.49 |
|
Distributions from net investment income |
(.19) |
(.21) |
(.17) |
(.08) |
|
Distributions from net realized gain |
(.79) |
(.35) |
(.31) |
(.02) |
|
Total distributions |
(.98) |
(.56) |
(.48) |
(.10) |
|
Net asset value, end of period |
$ 15.22 |
$ 13.85 |
$ 12.87 |
$ 12.39 |
|
Total ReturnB, C |
17.80% |
12.72% |
8.06% |
25.03% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
Expenses before reductions |
.76%A |
.77% |
.79% |
.81%A |
|
Expenses net of fee waivers, if any |
.76%A |
.77% |
.79% |
.81%A |
|
Expenses net of all reductions |
.75%A |
.76% |
.78% |
.81%A |
|
Net investment income (loss) |
1.70%A |
1.84% |
1.44% |
1.27%A |
|
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 594,191 |
$ 598,298 |
$ 531,188 |
$ 475,392 |
|
Portfolio turnover rateF |
56% A |
69% |
48% |
40% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to July 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
|
|
Six months ended January 31, 2015 |
Years ended July 31, |
||
|
|
(Unaudited) |
2014 |
2013 |
2012 G |
|
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period |
$ 13.86 |
$ 12.87 |
$ 12.39 |
$ 10.00 |
|
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D |
.13 |
.26 |
.21 |
.13 |
|
Net realized and unrealized gain (loss) |
2.23 |
1.31 |
.78 |
2.37 |
|
Total from investment operations |
2.36 |
1.57 |
.99 |
2.50 |
|
Distributions from net investment income |
(.21) |
(.23) |
(.20) |
(.09) |
|
Distributions from net realized gain |
(.79) |
(.35) |
(.31) |
(.02) |
|
Total distributions |
(1.00) |
(.58) |
(.51) |
(.11) |
|
Net asset value, end of period |
$ 15.22 |
$ 13.86 |
$ 12.87 |
$ 12.39 |
|
Total ReturnB, C |
17.83% |
13.01% |
8.27% |
25.16% |
|
Ratios to Average Net Assets E, H |
|
|
|
|
|
Expenses before reductions |
.59%A |
.59% |
.60% |
.61%A |
|
Expenses net of fee waivers, if any |
.59%A |
.59% |
.60% |
.61%A |
|
Expenses net of all reductions |
.58%A |
.59% |
.59% |
.61%A |
|
Net investment income (loss) |
1.87%A |
2.02% |
1.63% |
1.47%A |
|
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 669,032 |
$ 646,504 |
$ 493,761 |
$ 323,523 |
|
Portfolio turnover rateF |
56% A |
69% |
48% |
40% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 20, 2011 (commencement of operations) to July 31, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2015 (Unaudited)
1. Organization.
Fidelity® Series Real Estate Equity Fund (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Fidelity Series Real Estate Equity and Class F 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 318,563,395 |
|
Gross unrealized depreciation |
(1,866,237) |
|
Net unrealized appreciation (depreciation) on securities |
$ 316,697,158 |
|
|
|
|
Tax cost |
$ 953,588,381 |
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (the Update). The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, than short-term securities, aggregated $354,333,047 and $534,423,620, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser ,is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Series Real Estate Equity. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
|
Amount |
% of |
|
Series Real Estate Equity |
$ 513,996 |
.17 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,608 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender |
Average |
Weighted Average |
Interest Expense |
|
Borrower |
$ 30,168,667 |
.34% |
$ 3,448 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $877 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $50,001. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $67,848 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 expenses by $15.
In addition, the investment adviser reimbursed certain Series Real Estate Equity expenses during the period in the amount of $19.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Series Real Estate Equity |
$ 8,414,671 |
$ 9,282,647 |
|
Class F |
10,189,591 |
9,905,214 |
|
Total |
$ 18,604,262 |
$ 19,187,861 |
|
From net realized gain |
|
|
|
Series Real Estate Equity |
$ 34,110,116 |
$ 14,856,526 |
|
Class F |
37,756,075 |
14,803,851 |
|
Total |
$ 71,866,191 |
$ 29,660,377 |
Semiannual Report
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Six months ended January
31, |
Year ended |
Six months ended |
Year ended |
|
Series Real Estate Equity |
|
|
|
|
|
Shares sold |
1,450,273 |
12,135,298 |
$ 20,219,421 |
$ 155,920,114 |
|
Reinvestment of distributions |
3,067,076 |
2,036,221 |
42,524,787 |
24,139,173 |
|
Shares redeemed |
(8,666,963) |
(12,260,138) |
(126,753,591) |
(160,457,152) |
|
Net increase (decrease) |
(4,149,614) |
1,911,381 |
$ (64,009,383) |
$ 19,602,135 |
|
Class F |
|
|
|
|
|
Shares sold |
3,606,688 |
17,886,060 |
$ 50,134,037 |
$ 232,091,231 |
|
Reinvestment of distributions |
3,454,806 |
2,085,724 |
47,945,666 |
24,709,065 |
|
Shares redeemed |
(9,763,640) |
(11,669,575) |
(142,931,444) |
(152,157,090) |
|
Net increase (decrease) |
(2,702,146) |
8,302,209 |
$ (44,851,741) |
$ 104,643,206 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SLE-SANN-0315 1.930456.103
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity 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/Kenneth B. Robins |
|
|
Kenneth B. Robins |
|
|
President and Treasurer |
|
|
|
|
Date: |
March 27, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: |
/s/Kenneth B. Robins |
|
|
Kenneth B. Robins |
|
|
President and Treasurer |
|
|
|
|
Date: |
March 27, 2015 |
|
By: |
/s/Howard J. Galligan III |
|
|
Howard J. Galligan III |
|
|
Chief Financial Officer |
|
|
|
|
Date: |
March 27, 2015 |