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 811-21667
Fidelity Central Investment Portfolios LLC
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Nicole Macarchuk, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| |
Date of fiscal year end: | August 31 |
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Date of reporting period: | August 31, 2024 |
Item 1.
Reports to Stockholders
|
| ANNUAL SHAREHOLDER REPORT | AS OF AUGUST 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| Fidelity® High Income Central Fund Fidelity® High Income Central Fund true |
| | |
This annual shareholder report contains information about Fidelity® High Income Central Fund for the period September 1, 2023 to August 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-544-8544.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
Fidelity® High Income Central Fund | $ 0 A | 0.00%B | |
A Amount represents less than $.50
B Amount represents less than 0.005%
What affected the Fund's performance this period?
•High-yield bonds gained for the 12 months ending August 31, 2024, driven by a resilient economy and corporate profits, the perception that credit risk has fallen amid elevated coupon yields, and the Federal Reserve's likely pivot to cutting interest rates in late 2024.
•Against this backdrop, the fund's core investment in high-yield bonds increased 13.29% and contributed to performance versus the ICE BofA US High Yield Constrained Index for the fiscal year.
•By industry, security selection was the primary detractor, especially within media. Also hurting our result was security selection in retail and consumer goods. Lastly, the fund's position in cash detracted.
•The fund's non-benchmark stake in Mesquite Energy returned about -10% and was the biggest individual relative detractor. A second notable relative detractor was an overweight in Bi-Lo (-2%). An overweight in Spirit Airlines (-29%) also detracted.
•In contrast, the biggest contributor to performance versus the benchmark was security selection in telecommunications. Our choices in services and utility also boosted the fund's relative performance.
•The fund's non-benchmark stake in Jonah Energy gained 50% and was the top individual relative contributor. It was not held at period end. The second-largest relative contributor was an overweight in Community Health Systems (+29%). The company was one of the fund's largest holdings. Another notable relative contributor was timely positioning in CenturyLink (+34%).
•By quality, positioning in bonds rated BB added the most value, whereas unrated bonds hurt the most.
•Notable changes in positioning include increased exposure to the financial services industry and lower allocations to retail and energy.
How did the Fund perform over the past 10 years?
CUMULATIVE PERFORMANCE
August 31, 2014 through August 31, 2024.
Initial investment of $10,000.
Fidelity® High Income Central Fund | $10,000 | $9,842 | $10,605 | $11,623 | $12,238 | $13,044 | $13,233 | $15,213 | $14,330 | $15,315 | $17,175 |
ICE® BofA® US High Yield Constrained Index | $10,000 | $9,692 | $10,586 | $11,516 | $11,893 | $12,675 | $13,134 | $14,481 | $12,970 | $13,882 | $15,613 |
Bloomberg U.S. Universal Bond Index | $10,000 | $10,113 | $10,770 | $10,915 | $10,814 | $11,903 | $12,666 | $12,778 | $11,264 | $11,219 | $12,108 |
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS: | 1 Year | 5 Year | 10 Year |
Fidelity® High Income Central Fund | 12.14% | 5.66% | 5.56% |
ICE® BofA® US High Yield Constrained Index | 12.47% | 4.26% | 4.56% |
Bloomberg U.S. Universal Bond Index | 7.92% | 0.34% | 1.93% |
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics (as of August 31, 2024)
KEY FACTS | | |
Fund Size | $1,387,537,115 | |
Number of Holdings | 509 | |
Total Advisory Fee | $0 | |
Portfolio Turnover | 24% | |
What did the Fund invest in?
(as of August 31, 2024)
BBB | 6.1 |
BB | 28.2 |
B | 34.1 |
CCC,CC,C | 16.0 |
Not Rated | 3.1 |
Equities | 5.4 |
Short-Term Investments and Net Other Assets (Liabilities) | 7.1 |
QUALITY DIVERSIFICATION (% of Fund's net assets) |
|
|
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. |
Corporate Bonds | 79.2 |
Bank Loan Obligations | 6.7 |
Common Stocks | 3.4 |
Alternative Funds | 2.0 |
Asset-Backed Securities | 0.8 |
Preferred Securities | 0.8 |
Short-Term Investments and Net Other Assets (Liabilities) | 7.1 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
United States | 88.4 |
Canada | 3.0 |
Luxembourg | 1.0 |
Brazil | 0.8 |
Netherlands | 0.7 |
Panama | 0.7 |
France | 0.7 |
United Kingdom | 0.7 |
Grand Cayman (Uk Overseas Ter) | 0.7 |
Others | 3.3 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
|
|
TOP HOLDINGS (% of Fund's net assets) | | |
Fidelity Private Credit Company LLC | 2.0 | |
CHS/Community Health Systems Inc | 1.8 | |
TransDigm Inc | 1.7 | |
Uber Technologies Inc | 1.6 | |
Pacific Gas and Electric Co | 1.4 | |
Echo Global Logistics Inc | 1.4 | |
Tenet Healthcare Corp | 1.3 | |
Mesquite Energy Inc | 1.3 | |
DISH Network Corp | 1.1 | |
Cloud Software Group Inc | 1.0 | |
| 14.6 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since September 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by October 30, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-544-8544 .
The fees associated with this class changed during the reporting year. The variations in class fees are primarily the result of the following changes: Effective March 1, 2024, the fund's management contract was amended to remove the fee the investment adviser received from investing funds. The fund added a contractual management fee waiver during the reporting period. | |
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9913634.100 2062-TSRA-1024 |
|
| ANNUAL SHAREHOLDER REPORT | AS OF AUGUST 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| Fidelity® Specialized High Income Central Fund Fidelity® Specialized High Income Central Fund true |
| | |
This annual shareholder report contains information about Fidelity® Specialized High Income Central Fund for the period September 1, 2023 to August 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-544-8544.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
Fidelity® Specialized High Income Central Fund | $ 0 A | 0.00%B | |
A Amount represents less than $.50
B Amount represents less than 0.005%
What affected the Fund's performance this period?
•High-yield bonds gained for the 12 months ending August 31, 2024, driven by a resilient economy and corporate profits, the perception that credit risk has fallen amid elevated coupon yields, and the Federal Reserve's likely pivot to cutting interest rates in late 2024.
•Against this backdrop, the fund's core investment in high-yield bonds gained 11.71% and detracted from performance versus the ICE BofA BB US High Yield Constrained Index for the fiscal year.
•By industry, market selection was the primary detractor, especially an underweight in financial services. Also hurting our result were our choices in media and basic industry. Lastly, the fund's position in cash detracted.
•The largest individual relative detractor was an underweight in Venture Global (+14%). It was among the fund's largest holdings. The second-largest relative detractor was a non-benchmark stake in Occidental Petroleum (+7%). Another notable relative detractor was Navient (+10%).
•In contrast, the biggest contributors to performance versus the benchmark were security selection and an underweight in transportation. Picks in capital goods also boosted relative performance. Also contributing to our result were security selection and an underweight in leisure.
•The top individual relative contributor was an overweight in Ally Financial (+37%). Not owning Spirit Airlines, a benchmark component that returned about -24%, was the second-largest relative contributor. Not owning Walgreens Boots Alliance, a benchmark component that returned roughly -3%, was another notable relative contributor.
•By quality, positioning in bonds rated BB added the most value, whereas those rated BBB and above hurt the most.
•Notable changes in positioning include increased exposure to the leisure and financial services industries.
How did the Fund perform over the past 10 years?
CUMULATIVE PERFORMANCE
August 31, 2014 through August 31, 2024.
Initial investment of $10,000.
Fidelity® Specialized High Income Central Fund | $10,000 | $9,930 | $10,664 | $11,452 | $11,729 | $12,753 | $13,295 | $14,155 | $12,743 | $13,452 | $14,981 |
ICE® BofA® BB US High Yield Constrained Index | $10,000 | $9,987 | $10,961 | $11,738 | $11,899 | $13,042 | $13,870 | $14,991 | $13,429 | $14,199 | $15,880 |
Bloomberg U.S. Universal Bond Index | $10,000 | $10,113 | $10,770 | $10,915 | $10,814 | $11,903 | $12,666 | $12,778 | $11,264 | $11,219 | $12,108 |
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS: | 1 Year | 5 Year | 10 Year |
Fidelity® Specialized High Income Central Fund | 11.37% | 3.27% | 4.12% |
ICE® BofA® BB US High Yield Constrained Index | 11.83% | 4.02% | 4.73% |
Bloomberg U.S. Universal Bond Index | 7.92% | 0.34% | 1.93% |
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics (as of August 31, 2024)
KEY FACTS | | |
Fund Size | $241,145,314 | |
Number of Holdings | 397 | |
Total Advisory Fee | $0 | |
Portfolio Turnover | 17% | |
What did the Fund invest in?
(as of August 31, 2024)
BBB | 7.6 |
BB | 61.4 |
B | 22.0 |
CCC,CC,C | 1.7 |
Not Rated | 0.0 |
Short-Term Investments and Net Other Assets (Liabilities) | 7.3 |
QUALITY DIVERSIFICATION (% of Fund's net assets) |
|
|
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. |
Corporate Bonds | 91.2 |
Preferred Securities | 1.3 |
Bank Loan Obligations | 0.2 |
Short-Term Investments and Net Other Assets (Liabilities) | 7.3 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
United States | 88.9 |
Canada | 3.4 |
United Kingdom | 1.9 |
Australia | 1.3 |
Ireland | 0.8 |
Panama | 0.6 |
Luxembourg | 0.5 |
Guatemala | 0.4 |
Finland | 0.3 |
Others | 1.9 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
|
|
TOP HOLDINGS (% of Fund's net assets) | | |
CCO Holdings LLC / CCO Holdings Capital Corp | 2.0 | |
Sirius XM Radio Inc | 1.5 | |
Royal Caribbean Cruises Ltd | 1.5 | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC | 1.4 | |
Tenet Healthcare Corp | 1.4 | |
Hilton Domestic Operating Co Inc | 1.4 | |
OneMain Finance Corp | 1.3 | |
Vistra Operations Co LLC | 1.3 | |
Venture Global Calcasieu | 1.3 | |
Yum! Brands Inc | 1.2 | |
| 14.3 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since September 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by October 30, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-544-8544 .
Effective March 1, 2024, the fund's management contract was amended to remove the fee the investment adviser received from investing funds. | |
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9913633.100 1518-TSRA-1024 |
Item 2.
Code of Ethics
As of the end of the period, August 31, 2024, Fidelity Central Investment Portfolios LLC (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Donald F. Donahue is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Donahue is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity High Income Central Fund and Fidelity Specialized High Income Central Fund (the “Funds”):
Services Billed by Deloitte Entities
August 31, 2024 FeesA
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity High Income Central Fund | $49,500 | $- | $9,700 | $1,200 |
Fidelity Specialized High Income Central Fund | $53,100 | $- | $9,700 | $1,300 |
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity High Income Central Fund | $49,600 | $- | $9,700 | $1,300 |
Fidelity Specialized High Income Central Fund | $53,300 | $- | $9,700 | $1,300 |
A Amounts may reflect rounding.
The following table(s) present(s) fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
| | |
| August 31, 2024A | August 31, 2023A |
Audit-Related Fees | $200,000 | $- |
Tax Fees | $- | $- |
All Other Fees | $1,929,500 | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
| | |
Billed By | August 31, 2024A | August 31, 2023A |
Deloitte Entities | $4,970,400 | $3,240,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the “PCAOB”) has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
The Registrant is not a “foreign issuer,” as defined in 17 CFR 240.3b-4.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Financial Statements and Financial Highlights for Open-End Management Investment Companies
Fidelity® Specialized High Income Central Fund
Annual Report
August 31, 2024
Contents
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. © 2024 FMR LLC. All rights reserved.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report)
Fidelity® Specialized High Income Central Fund
Schedule of Investments August 31, 2024
Showing Percentage of Net Assets
Corporate Bonds - 91.1% |
| | Principal Amount (a) | Value ($) |
Convertible Bonds - 0.5% | | | |
Broadcasting - 0.4% | | | |
DISH Network Corp. 3.375% 8/15/26 | | 1,328,000 | 826,798 |
Homebuilders/Real Estate - 0.0% | | | |
Meritage Homes Corp. 1.75% 5/15/28 (b) | | 10,000 | 11,010 |
Technology - 0.1% | | | |
Global Payments, Inc. 1.5% 3/1/31 (b) | | 324,000 | 319,950 |
TOTAL CONVERTIBLE BONDS | | | 1,157,758 |
Nonconvertible Bonds - 90.6% | | | |
Aerospace - 1.9% | | | |
BWX Technologies, Inc. 4.125% 6/30/28 (b) | | 495,000 | 477,674 |
Howmet Aerospace, Inc.: | | | |
5.95% 2/1/37 | | 300,000 | 325,155 |
6.75% 1/15/28 | | 775,000 | 825,054 |
Kaiser Aluminum Corp. 4.625% 3/1/28 (b) | | 630,000 | 598,276 |
Moog, Inc. 4.25% 12/15/27 (b) | | 730,000 | 703,125 |
Rolls-Royce PLC 5.75% 10/15/27 (b) | | 635,000 | 651,060 |
TransDigm, Inc. 6.375% 3/1/29 (b) | | 1,080,000 | 1,113,006 |
| | | 4,693,350 |
Air Transportation - 1.3% | | | |
American Airlines, Inc.: | | | |
7.25% 2/15/28 (b)(c) | | 750,000 | 754,664 |
8.5% 5/15/29 (b) | | 305,000 | 317,097 |
American Airlines, Inc. / AAdvantage Loyalty IP Ltd. 5.5% 4/20/26 (b) | | 204,167 | 203,109 |
Rand Parent LLC 8.5% 2/15/30 (b)(c) | | 755,000 | 755,012 |
United Airlines, Inc. 4.375% 4/15/26 (b) | | 1,080,000 | 1,053,938 |
| | | 3,083,820 |
Automotive & Auto Parts - 2.5% | | | |
Allison Transmission, Inc. 3.75% 1/30/31 (b) | | 635,000 | 577,067 |
Dana, Inc. 4.5% 2/15/32 (c) | | 180,000 | 159,632 |
Ford Motor Co.: | | | |
3.25% 2/12/32 | | 440,000 | 374,759 |
5.291% 12/8/46 | | 220,000 | 199,386 |
6.1% 8/19/32 | | 550,000 | 565,138 |
Ford Motor Credit Co. LLC: | | | |
2.3% 2/10/25 | | 180,000 | 177,421 |
2.7% 8/10/26 | | 600,000 | 573,036 |
2.9% 2/10/29 | | 180,000 | 162,957 |
4.687% 6/9/25 | | 500,000 | 497,520 |
5.125% 6/16/25 | | 330,000 | 329,116 |
LCM Investments Holdings 4.875% 5/1/29 (b) | | 80,000 | 76,208 |
Macquarie AirFinance Holdings: | | | |
6.4% 3/26/29 (b) | | 70,000 | 72,850 |
8.125% 3/30/29 (b) | | 165,000 | 175,349 |
8.375% 5/1/28 (b) | | 855,000 | 905,902 |
Phinia, Inc. 6.75% 4/15/29 (b) | | 175,000 | 179,579 |
Thor Industries, Inc. 4% 10/15/29 (b) | | 235,000 | 214,544 |
ZF North America Capital, Inc. 6.875% 4/14/28 (b) | | 650,000 | 671,541 |
| | | 5,912,005 |
Banks & Thrifts - 0.8% | | | |
Jane Street Group LLC/JSG Finance, Inc. 4.5% 11/15/29 (b) | | 550,000 | 524,944 |
Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc 3.625% 3/1/29 (b) | | 680,000 | 631,195 |
UniCredit SpA: | | | |
5.861% 6/19/32 (b)(d) | | 83,000 | 82,813 |
7.296% 4/2/34 (b)(d) | | 207,000 | 217,578 |
VFH Parent LLC / Valor Co-Issuer, Inc. 7.5% 6/15/31 (b) | | 275,000 | 285,287 |
Western Alliance Bancorp. 3% 6/15/31 (d) | | 105,000 | 94,952 |
| | | 1,836,769 |
Broadcasting - 2.3% | | | |
Nexstar Media, Inc. 5.625% 7/15/27 (b) | | 825,000 | 806,196 |
Scripps Escrow II, Inc. 3.875% 1/15/29 (b) | | 230,000 | 148,288 |
Sirius XM Radio, Inc.: | | | |
5% 8/1/27 (b) | | 2,255,000 | 2,204,277 |
5.5% 7/1/29 (b)(c) | | 1,420,000 | 1,382,020 |
TEGNA, Inc.: | | | |
4.625% 3/15/28 | | 835,000 | 784,829 |
5% 9/15/29 | | 120,000 | 111,456 |
| | | 5,437,066 |
Building Materials - 2.7% | | | |
Advanced Drain Systems, Inc. 5% 9/30/27 (b) | | 940,000 | 925,468 |
Beacon Roofing Supply, Inc. 6.5% 8/1/30 (b) | | 190,000 | 195,114 |
Builders FirstSource, Inc. 4.25% 2/1/32 (b) | | 980,000 | 895,374 |
EMRLD Borrower LP / Emerald Co. 6.625% 12/15/30 (b) | | 1,410,000 | 1,443,888 |
Knife River Holding Co. 7.75% 5/1/31 (b)(c) | | 430,000 | 455,235 |
Smyrna Ready Mix Concrete LLC 8.875% 11/15/31 (b) | | 330,000 | 354,222 |
Standard Industries, Inc./New Jersey 4.375% 7/15/30 (b) | | 1,240,000 | 1,159,369 |
Summit Materials LLC/Summit Materials Finance Corp. 7.25% 1/15/31 (b) | | 1,000,000 | 1,051,250 |
| | | 6,479,920 |
Cable/Satellite TV - 2.4% | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | | | |
4.25% 2/1/31 (b) | | 100,000 | 86,771 |
4.5% 8/15/30 (b) | | 640,000 | 570,756 |
4.5% 5/1/32 | | 1,180,000 | 1,007,548 |
5% 2/1/28 (b) | | 2,449,000 | 2,359,858 |
5.125% 5/1/27 (b) | | 700,000 | 686,056 |
CSC Holdings LLC 5.375% 2/1/28 (b) | | 100,000 | 76,889 |
Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (b) | | 600,000 | 579,750 |
Ziggo BV 4.875% 1/15/30 (b) | | 450,000 | 419,543 |
| | | 5,787,171 |
Capital Goods - 0.3% | | | |
ESAB Corp. 6.25% 4/15/29 (b) | | 415,000 | 426,327 |
Resideo Funding, Inc. 6.5% 7/15/32 (b)(c) | | 365,000 | 371,593 |
| | | 797,920 |
Chemicals - 3.7% | | | |
Axalta Coating Systems/Dutch Holding BV 4.75% 6/15/27 (b) | | 600,000 | 590,375 |
Methanex Corp.: | | | |
5.125% 10/15/27 | | 790,000 | 777,613 |
5.25% 12/15/29 | | 65,000 | 63,885 |
5.65% 12/1/44 | | 514,000 | 459,107 |
NOVA Chemicals Corp.: | | | |
5% 5/1/25 (b) | | 1,000,000 | 993,956 |
5.25% 6/1/27 (b) | | 980,000 | 967,388 |
Nufarm Australia Ltd. 5% 1/27/30 (b) | | 445,000 | 412,439 |
Olin Corp.: | | | |
5% 2/1/30 | | 969,000 | 936,679 |
5.125% 9/15/27 | | 1,260,000 | 1,244,754 |
SPCM SA 3.125% 3/15/27 (b) | | 180,000 | 168,159 |
The Chemours Co. LLC: | | | |
4.625% 11/15/29 (b)(c) | | 250,000 | 219,928 |
5.375% 5/15/27 | | 940,000 | 913,371 |
Tronox, Inc. 4.625% 3/15/29 (b)(c) | | 545,000 | 496,674 |
W.R. Grace Holding LLC: | | | |
4.875% 6/15/27 (b) | | 615,000 | 601,407 |
7.375% 3/1/31 (b) | | 60,000 | 62,322 |
| | | 8,908,057 |
Consumer Products - 1.4% | | | |
Kohl's Corp. 4.25% 7/17/25 | | 20,000 | 19,810 |
Mattel, Inc.: | | | |
3.75% 4/1/29 (b) | | 315,000 | 299,219 |
6.2% 10/1/40 | | 185,000 | 187,164 |
Newell Brands, Inc.: | | | |
6.625% 9/15/29 | | 1,010,000 | 1,008,448 |
6.875% 4/1/36 (c)(e) | | 280,000 | 266,258 |
Prestige Brands, Inc. 3.75% 4/1/31 (b) | | 500,000 | 453,153 |
Tempur Sealy International, Inc. 3.875% 10/15/31 (b) | | 1,185,000 | 1,042,187 |
| | | 3,276,239 |
Containers - 2.7% | | | |
Ball Corp.: | | | |
2.875% 8/15/30 | | 1,015,000 | 897,116 |
3.125% 9/15/31 | | 1,835,000 | 1,604,326 |
6% 6/15/29 | | 450,000 | 463,031 |
Graphic Packaging International, Inc.: | | | |
3.75% 2/1/30 (b) | | 480,000 | 443,946 |
6.375% 7/15/32 (b) | | 460,000 | 470,317 |
OI European Group BV 4.75% 2/15/30 (b) | | 585,000 | 549,096 |
Sealed Air Corp.: | | | |
5% 4/15/29 (b) | | 1,280,000 | 1,255,443 |
6.875% 7/15/33 (b)(c) | | 340,000 | 363,901 |
Sealed Air Corp./Sealed Air Corp. U.S. 7.25% 2/15/31 (b)(c) | | 355,000 | 373,067 |
| | | 6,420,243 |
Diversified Financial Services - 5.2% | | | |
Aercap Global Aviation Trust 6.5% 6/15/45 (b)(d) | | 250,000 | 249,218 |
Capstone Borrower, Inc. 8% 6/15/30 (b) | | 125,000 | 131,661 |
Cargo Aircraft Management, Inc. 4.75% 2/1/28 (b) | | 500,000 | 477,500 |
Encore Capital Group, Inc. 9.25% 4/1/29 (b) | | 160,000 | 170,320 |
Fortress Transportation & Infrastructure Investors LLC: | | | |
7% 6/15/32 (b) | | 460,000 | 481,248 |
7.875% 12/1/30 (b) | | 275,000 | 295,127 |
GGAM Finance Ltd.: | | | |
6.875% 4/15/29 (b) | | 285,000 | 294,104 |
7.75% 5/15/26 (b) | | 440,000 | 451,479 |
8% 2/15/27 (b) | | 270,000 | 281,468 |
Gn Bondco LLC 9.5% 10/15/31 (b)(c) | | 365,000 | 371,523 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | |
5.25% 5/15/27 | | 1,240,000 | 1,195,050 |
6.25% 5/15/26 | | 1,569,000 | 1,559,999 |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 4.25% 2/1/27 (b) | | 950,000 | 921,920 |
LPL Holdings, Inc. 4% 3/15/29 (b) | | 710,000 | 675,478 |
Nationstar Mortgage Holdings, Inc. 6.5% 8/1/29 (b) | | 355,000 | 357,843 |
Navient Corp. 6.75% 6/15/26 | | 1,545,000 | 1,571,654 |
OneMain Finance Corp.: | | | |
3.5% 1/15/27 | | 1,485,000 | 1,407,740 |
7.125% 3/15/26 | | 309,000 | 314,850 |
7.125% 11/15/31 | | 120,000 | 121,251 |
7.5% 5/15/31 | | 785,000 | 812,127 |
7.875% 3/15/30 | | 410,000 | 428,810 |
| | | 12,570,370 |
Diversified Media - 0.6% | | | |
Advantage Sales & Marketing, Inc. 6.5% 11/15/28 (b) | | 405,000 | 379,712 |
Lamar Media Corp. 3.625% 1/15/31 | | 1,145,000 | 1,036,809 |
| | | 1,416,521 |
Energy - 14.6% | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp. 5.75% 3/1/27 (b) | | 1,545,000 | 1,538,997 |
Apache Corp.: | | | |
4.25% 1/15/30 | | 124,000 | 118,389 |
5.1% 9/1/40 | | 341,000 | 301,592 |
5.25% 2/1/42 | | 515,000 | 455,666 |
5.35% 7/1/49 | | 85,000 | 72,514 |
Archrock Partners LP / Archrock Partners Finance Corp. 6.625% 9/1/32 (b) | | 355,000 | 359,428 |
Baytex Energy Corp. 7.375% 3/15/32 (b) | | 280,000 | 289,992 |
Buckeye Partners LP 3.95% 12/1/26 | | 1,145,000 | 1,112,409 |
California Resources Corp. 8.25% 6/15/29 (b) | | 695,000 | 716,842 |
Chesapeake Energy Corp. 6.75% 4/15/29 (b) | | 700,000 | 710,460 |
CNX Midstream Partners LP 4.75% 4/15/30 (b) | | 710,000 | 662,207 |
Continental Resources, Inc. 5.75% 1/15/31 (b) | | 930,000 | 943,161 |
CrownRock LP/CrownRock Finance, Inc. 5% 5/1/29 (b) | | 350,000 | 354,827 |
CVR Energy, Inc. 5.75% 2/15/28 (b) | | 85,000 | 80,159 |
DCP Midstream Operating LP: | | | |
5.125% 5/15/29 | | 1,650,000 | 1,677,052 |
5.6% 4/1/44 | | 50,000 | 49,334 |
6.45% 11/3/36 (b) | | 215,000 | 233,367 |
8.125% 8/16/30 | | 15,000 | 17,544 |
Delek Logistics Partners LP/Delek Logistics Finance Corp. 8.625% 3/15/29 (b) | | 430,000 | 452,135 |
Endeavor Energy Resources LP/EER Finance, Inc. 5.75% 1/30/28 (b) | | 450,000 | 457,919 |
Energy Transfer LP: | | | |
5.625% 5/1/27 (b) | | 1,098,000 | 1,100,643 |
7.375% 2/1/31 (b) | | 185,000 | 196,964 |
EnLink Midstream LLC 5.625% 1/15/28 (b) | | 460,000 | 468,472 |
EnLink Midstream Partners LP: | | | |
5.05% 4/1/45 | | 145,000 | 127,511 |
5.45% 6/1/47 | | 300,000 | 278,640 |
5.6% 4/1/44 | | 508,000 | 480,196 |
EQM Midstream Partners LP: | | | |
5.5% 7/15/28 | | 450,000 | 453,003 |
7.5% 6/1/27 (b) | | 355,000 | 365,850 |
EQT Corp. 3.9% 10/1/27 | | 824,000 | 805,136 |
Genesis Energy LP/Genesis Energy Finance Corp. 7.875% 5/15/32 | | 115,000 | 117,995 |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | | 850,000 | 857,292 |
Harvest Midstream I LP 7.5% 5/15/32 (b) | | 860,000 | 904,079 |
Hess Midstream Operations LP: | | | |
5.125% 6/15/28 (b) | | 565,000 | 558,544 |
5.625% 2/15/26 (b) | | 297,000 | 296,186 |
6.5% 6/1/29 (b) | | 1,155,000 | 1,191,722 |
Hilcorp Energy I LP/Hilcorp Finance Co.: | | | |
6.25% 11/1/28 (b) | | 190,000 | 191,001 |
6.25% 4/15/32 (b) | | 1,000,000 | 996,591 |
Howard Midstream Energy Partners LLC 7.375% 7/15/32 (b) | | 235,000 | 243,287 |
Kinetik Holdings LP: | | | |
5.875% 6/15/30 (b) | | 370,000 | 371,188 |
6.625% 12/15/28 (b) | | 395,000 | 407,001 |
Kodiak Gas Services LLC 7.25% 2/15/29 (b) | | 320,000 | 331,402 |
Matador Resources Co. 6.5% 4/15/32 (b) | | 385,000 | 390,731 |
New Fortress Energy, Inc. 6.5% 9/30/26 (b)(c) | | 1,260,000 | 1,090,689 |
Occidental Petroleum Corp. 5.55% 3/15/26 | | 830,000 | 836,831 |
PBF Holding Co. LLC/PBF Finance Corp.: | | | |
6% 2/15/28 (c) | | 400,000 | 396,072 |
7.875% 9/15/30 (b) | | 285,000 | 296,361 |
Permian Resources Operating LLC: | | | |
5.875% 7/1/29 (b) | | 95,000 | 95,000 |
6.25% 2/1/33 (b) | | 470,000 | 481,940 |
7% 1/15/32 (b) | | 630,000 | 660,877 |
Rockies Express Pipeline LLC: | | | |
4.8% 5/15/30 (b) | | 545,000 | 505,911 |
4.95% 7/15/29 (b) | | 285,000 | 272,389 |
6.875% 4/15/40 (b) | | 110,000 | 106,622 |
Seadrill Finance Ltd. 8.375% 8/1/30 (b) | | 535,000 | 564,735 |
Southwestern Energy Co. 5.375% 2/1/29 | | 975,000 | 962,549 |
Sunnova Energy Corp. 11.75% 10/1/28 (b) | | 160,000 | 148,557 |
Sunoco LP/Sunoco Finance Corp.: | | | |
4.5% 5/15/29 | | 645,000 | 619,268 |
5.875% 3/15/28 | | 105,000 | 105,102 |
6% 4/15/27 | | 700,000 | 701,014 |
Superior Plus LP / Superior General Partner, Inc. 4.5% 3/15/29 (b) | | 130,000 | 121,627 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.: | | | |
5.5% 1/15/28 (b) | | 125,000 | 120,609 |
6% 3/1/27 (b) | | 556,000 | 554,430 |
6% 12/31/30 (b) | | 680,000 | 648,484 |
Talos Production, Inc. 9% 2/1/29 (b) | | 90,000 | 95,610 |
Transocean, Inc. 8.25% 5/15/29 (b) | | 455,000 | 460,633 |
Valaris Ltd. 8.375% 4/30/30 (b) | | 280,000 | 292,106 |
Venture Global Calcasieu Pass LLC: | | | |
3.875% 8/15/29 (b) | | 220,000 | 207,985 |
3.875% 11/1/33 (b) | | 180,000 | 160,121 |
4.125% 8/15/31 (b) | | 1,210,000 | 1,121,653 |
6.25% 1/15/30 (b) | | 1,255,000 | 1,304,841 |
Venture Global LNG, Inc. 8.125% 6/1/28 (b) | | 550,000 | 575,989 |
| | | 35,245,433 |
Environmental - 1.2% | | | |
Clean Harbors, Inc. 6.375% 2/1/31 (b) | | 425,000 | 434,313 |
Darling Ingredients, Inc.: | | | |
5.25% 4/15/27 (b) | | 635,000 | 631,700 |
6% 6/15/30 (b)(c) | | 110,000 | 111,346 |
GFL Environmental, Inc. 6.75% 1/15/31 (b) | | 1,195,000 | 1,248,271 |
Stericycle, Inc. 3.875% 1/15/29 (b) | | 460,000 | 446,666 |
| | | 2,872,296 |
Food & Drug Retail - 1.8% | | | |
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | | | |
3.5% 3/15/29 (b) | | 1,880,000 | 1,741,160 |
4.625% 1/15/27 (b) | | 700,000 | 683,915 |
4.875% 2/15/30 (b) | | 500,000 | 488,681 |
6.5% 2/15/28 (b) | | 345,000 | 349,444 |
Emergent BioSolutions, Inc. 3.875% 8/15/28 (b) | | 285,000 | 211,605 |
Murphy Oil U.S.A., Inc. 3.75% 2/15/31 (b) | | 430,000 | 389,048 |
Parkland Corp. 6.625% 8/15/32 (b) | | 595,000 | 601,232 |
| | | 4,465,085 |
Food/Beverage/Tobacco - 2.0% | | | |
C&S Group Enterprises LLC 5% 12/15/28 (b) | | 350,000 | 264,391 |
Central Garden & Pet Co. 4.125% 4/30/31 (b)(c) | | 500,000 | 453,073 |
Lamb Weston Holdings, Inc. 4.375% 1/31/32 (b) | | 1,725,000 | 1,588,943 |
Pilgrim's Pride Corp. 4.25% 4/15/31 | | 500,000 | 471,325 |
Post Holdings, Inc. 5.625% 1/15/28 (b) | | 1,000,000 | 997,416 |
U.S. Foods, Inc.: | | | |
4.625% 6/1/30 (b)(c) | | 785,000 | 751,392 |
7.25% 1/15/32 (b) | | 180,000 | 190,001 |
| | | 4,716,541 |
Gaming - 2.6% | | | |
Boyd Gaming Corp. 4.75% 12/1/27 | | 650,000 | 637,824 |
Caesars Entertainment, Inc. 4.625% 10/15/29 (b)(c) | | 700,000 | 662,136 |
Churchill Downs, Inc. 5.75% 4/1/30 (b) | | 500,000 | 496,996 |
Melco Resorts Finance Ltd.: | | | |
5.375% 12/4/29 (b) | | 265,000 | 241,576 |
5.75% 7/21/28 (b) | | 400,000 | 380,833 |
MGM Resorts International 5.75% 6/15/25 | | 310,000 | 309,959 |
Ontario Gaming GTA LP / OTG Co. issuer, Inc. 8% 8/1/30 (b) | | 95,000 | 97,916 |
VICI Properties LP / VICI Note Co.: | | | |
4.25% 12/1/26 (b) | | 360,000 | 355,378 |
4.5% 9/1/26 (b) | | 1,292,000 | 1,280,155 |
4.625% 6/15/25 (b) | | 155,000 | 153,630 |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (b)(c) | | 1,745,000 | 1,733,394 |
| | | 6,349,797 |
Healthcare - 6.5% | | | |
180 Medical, Inc. 3.875% 10/15/29 (b)(c) | | 585,000 | 548,582 |
Avantor Funding, Inc.: | | | |
3.875% 11/1/29 (b) | | 500,000 | 467,231 |
4.625% 7/15/28 (b) | | 605,000 | 588,767 |
Centene Corp.: | | | |
2.45% 7/15/28 | | 35,000 | 32,023 |
2.5% 3/1/31 | | 695,000 | 590,006 |
3.375% 2/15/30 | | 1,000,000 | 915,655 |
4.25% 12/15/27 | | 710,000 | 694,167 |
Charles River Laboratories International, Inc.: | | | |
3.75% 3/15/29 (b) | | 830,000 | 777,756 |
4.25% 5/1/28 (b) | | 75,000 | 72,316 |
CHS/Community Health Systems, Inc. 4.75% 2/15/31 (b) | | 860,000 | 733,516 |
DaVita, Inc. 4.625% 6/1/30 (b) | | 320,000 | 301,728 |
Hologic, Inc.: | | | |
3.25% 2/15/29 (b) | | 560,000 | 517,183 |
4.625% 2/1/28 (b) | | 85,000 | 83,006 |
IQVIA, Inc. 5% 5/15/27 (b) | | 1,310,000 | 1,300,528 |
Jazz Securities DAC 4.375% 1/15/29 (b) | | 1,000,000 | 951,671 |
Medline Borrower LP / Medline Co. 6.25% 4/1/29 (b) | | 690,000 | 711,269 |
Molina Healthcare, Inc.: | | | |
3.875% 11/15/30 (b) | | 500,000 | 459,724 |
3.875% 5/15/32 (b) | | 740,000 | 663,950 |
Organon & Co. / Organon Foreign Debt Co-Issuer BV: | | | |
4.125% 4/30/28 (b) | | 775,000 | 740,914 |
5.125% 4/30/31 (b) | | 525,000 | 491,685 |
Pediatrix Medical Group, Inc. 5.375% 2/15/30 (b) | | 500,000 | 478,139 |
Surgery Center Holdings, Inc. 7.25% 4/15/32 (b) | | 335,000 | 351,857 |
Teleflex, Inc. 4.25% 6/1/28 (b) | | 150,000 | 144,153 |
Tenet Healthcare Corp.: | | | |
4.625% 6/15/28 | | 1,970,000 | 1,925,009 |
5.125% 11/1/27 | | 1,245,000 | 1,234,166 |
| | | 15,775,001 |
Homebuilders/Real Estate - 2.3% | | | |
Century Communities, Inc. 3.875% 8/15/29 (b) | | 215,000 | 199,196 |
Greystar Real Estate Partners 7.75% 9/1/30 (b) | | 80,000 | 85,126 |
HAT Holdings I LLC/HAT Holdings II LLC: | | | |
3.375% 6/15/26 (b) | | 730,000 | 699,307 |
8% 6/15/27 (b) | | 240,000 | 251,468 |
Kennedy-Wilson, Inc. 4.75% 2/1/30 | | 355,000 | 313,265 |
LGI Homes, Inc. 8.75% 12/15/28 (b) | | 140,000 | 149,163 |
MPT Operating Partnership LP/MPT Finance Corp.: | | | |
3.5% 3/15/31 | | 600,000 | 409,832 |
5% 10/15/27 (c) | | 1,471,000 | 1,248,472 |
5.25% 8/1/26 (c) | | 205,000 | 192,833 |
Ryan Specialty Group LLC 4.375% 2/1/30 (b) | | 265,000 | 253,877 |
Service Properties Trust: | | | |
3.95% 1/15/28 | | 40,000 | 33,990 |
5.5% 12/15/27 | | 240,000 | 225,764 |
Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.75% 1/15/28 (b) | | 360,000 | 362,996 |
TopBuild Corp. 4.125% 2/15/32 (b) | | 380,000 | 345,870 |
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC 4.75% 4/15/28 (b) | | 815,000 | 716,595 |
| | | 5,487,754 |
Hotels - 1.8% | | | |
Hilton Domestic Operating Co., Inc.: | | | |
3.625% 2/15/32 (b) | | 565,000 | 506,428 |
4% 5/1/31 (b) | | 1,590,000 | 1,469,263 |
5.875% 4/1/29 (b) | | 1,085,000 | 1,105,692 |
Hilton Grand Vacations Borrower Escrow LLC: | | | |
5% 6/1/29 (b)(c) | | 500,000 | 472,737 |
6.625% 1/15/32 (b) | | 50,000 | 50,603 |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 4.875% 4/1/27 | | 211,000 | 209,867 |
Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co.-Issuer 7% 2/1/30 (b) | | 160,000 | 164,004 |
Wyndham Hotels & Resorts, Inc. 4.375% 8/15/28 (b) | | 297,000 | 284,272 |
| | | 4,262,866 |
Leisure - 2.2% | | | |
Amer Sports Co. 6.75% 2/16/31 (b)(c) | | 700,000 | 711,365 |
Carnival Corp. 7.625% 3/1/26 (b) | | 730,000 | 737,395 |
NCL Corp. Ltd. 8.375% 2/1/28 (b) | | 430,000 | 452,618 |
Royal Caribbean Cruises Ltd.: | | | |
5.375% 7/15/27 (b) | | 160,000 | 160,273 |
5.5% 8/31/26 (b) | | 1,745,000 | 1,747,473 |
5.5% 4/1/28 (b) | | 1,345,000 | 1,355,387 |
6.25% 3/15/32 (b) | | 215,000 | 222,034 |
| | | 5,386,545 |
Metals/Mining - 2.5% | | | |
Alcoa Nederland Holding BV 7.125% 3/15/31 (b) | | 85,000 | 89,389 |
Arsenal AIC Parent LLC 8% 10/1/30 (b) | | 105,000 | 112,890 |
Cleveland-Cliffs, Inc.: | | | |
4.875% 3/1/31 (b)(c) | | 960,000 | 881,648 |
6.75% 4/15/30 (b)(c) | | 370,000 | 375,118 |
ERO Copper Corp. 6.5% 2/15/30 (b) | | 415,000 | 404,413 |
FMG Resources August 2006 Pty Ltd. 4.5% 9/15/27 (b) | | 950,000 | 918,823 |
Mineral Resources Ltd. 8% 11/1/27 (b) | | 1,885,000 | 1,914,644 |
Novelis Corp. 3.875% 8/15/31 (b) | | 1,545,000 | 1,385,263 |
| | | 6,082,188 |
Paper - 0.2% | | | |
Ardagh Metal Packaging Finance U.S.A. LLC/Ardagh Metal Packaging Finance PLC: | | | |
3.25% 9/1/28 (b) | | 575,000 | 521,696 |
6% 6/15/27 (b) | | 15,000 | 14,956 |
| | | 536,652 |
Railroad - 0.1% | | | |
Genesee & Wyoming, Inc. 6.25% 4/15/32 (b) | | 345,000 | 352,614 |
Restaurants - 1.9% | | | |
1011778 BC Unlimited Liability Co./New Red Finance, Inc. 3.875% 1/15/28 (b) | | 1,645,000 | 1,570,873 |
Garden SpinCo Corp. 8.625% 7/20/30 (b) | | 75,000 | 81,841 |
Yum! Brands, Inc.: | | | |
3.625% 3/15/31 | | 2,380,000 | 2,184,490 |
4.625% 1/31/32 | | 750,000 | 710,826 |
5.35% 11/1/43 | | 85,000 | 82,171 |
| | | 4,630,201 |
Services - 5.5% | | | |
ADT Corp.: | | | |
4.125% 8/1/29 (b)(c) | | 180,000 | 170,936 |
4.875% 7/15/32 (b) | | 175,000 | 166,353 |
AECOM 5.125% 3/15/27 | | 1,010,000 | 1,010,957 |
Aramark Services, Inc. 5% 2/1/28 (b)(c) | | 830,000 | 814,095 |
ASGN, Inc. 4.625% 5/15/28 (b) | | 790,000 | 763,274 |
Booz Allen Hamilton, Inc.: | | | |
3.875% 9/1/28 (b) | | 795,000 | 764,296 |
4% 7/1/29 (b) | | 70,000 | 67,645 |
Brand Industrial Services, Inc. 10.375% 8/1/30 (b) | | 270,000 | 294,184 |
CoreCivic, Inc. 8.25% 4/15/29 | | 215,000 | 226,807 |
Fair Isaac Corp. 4% 6/15/28 (b)(c) | | 915,000 | 873,840 |
Gartner, Inc.: | | | |
3.625% 6/15/29 (b) | | 100,000 | 94,413 |
3.75% 10/1/30 (b) | | 265,000 | 245,384 |
4.5% 7/1/28 (b) | | 410,000 | 402,660 |
Iron Mountain, Inc.: | | | |
4.875% 9/15/27 (b) | | 250,000 | 245,466 |
4.875% 9/15/29 (b) | | 2,430,000 | 2,358,480 |
Prime Securities Services Borrower LLC/Prime Finance, Inc. 3.375% 8/31/27 (b) | | 1,270,000 | 1,202,430 |
Service Corp. International 5.125% 6/1/29 | | 1,345,000 | 1,329,133 |
Sotheby's 7.375% 10/15/27 (b) | | 155,000 | 148,017 |
The GEO Group, Inc. 8.625% 4/15/29 | | 260,000 | 269,717 |
TriNet Group, Inc.: | | | |
3.5% 3/1/29 (b) | | 295,000 | 272,898 |
7.125% 8/15/31 (b) | | 180,000 | 186,678 |
Uber Technologies, Inc. 4.5% 8/15/29 (b)(c) | | 1,395,000 | 1,368,125 |
| | | 13,275,788 |
Steel - 0.1% | | | |
Commercial Metals Co. 3.875% 2/15/31 | | 375,000 | 340,173 |
Super Retail - 3.0% | | | |
Asbury Automotive Group, Inc.: | | | |
4.625% 11/15/29 (b)(c) | | 1,060,000 | 1,009,188 |
5% 2/15/32 (b) | | 325,000 | 306,102 |
Bath & Body Works, Inc.: | | | |
6.625% 10/1/30 (b)(c) | | 1,145,000 | 1,159,304 |
6.875% 11/1/35 (c) | | 580,000 | 599,054 |
EG Global Finance PLC 12% 11/30/28 (b) | | 620,000 | 676,310 |
Gap, Inc. 3.875% 10/1/31 (b) | | 680,000 | 587,436 |
Group 1 Automotive, Inc. 6.375% 1/15/30 (b) | | 225,000 | 228,895 |
Hanesbrands, Inc. 4.875% 5/15/26 (b) | | 635,000 | 630,590 |
Levi Strauss & Co. 3.5% 3/1/31 (b)(c) | | 760,000 | 685,587 |
Nordstrom, Inc. 4.375% 4/1/30 (c) | | 650,000 | 596,922 |
Sally Holdings LLC 6.75% 3/1/32 | | 235,000 | 239,717 |
The William Carter Co. 5.625% 3/15/27 (b) | | 574,000 | 572,980 |
| | | 7,292,085 |
Technology - 6.3% | | | |
Acuris Finance U.S. 5% 5/1/28 (b) | | 335,000 | 299,883 |
Block, Inc.: | | | |
2.75% 6/1/26 (c) | | 180,000 | 172,870 |
6.5% 5/15/32 (b) | | 460,000 | 477,026 |
Broadcom, Inc. 2.45% 2/15/31 (b) | | 525,000 | 458,081 |
Central Parent, Inc./Central Merger Sub, Inc. 7.25% 6/15/29 (b) | | 220,000 | 221,097 |
CNT PRNT/CDK GLO II/FIN 8% 6/15/29 (b) | | 350,000 | 361,372 |
Coherent Corp. 5% 12/15/29 (b)(c) | | 690,000 | 667,219 |
Crowdstrike Holdings, Inc. 3% 2/15/29 | | 305,000 | 279,496 |
Elastic NV 4.125% 7/15/29 (b) | | 205,000 | 190,997 |
Entegris, Inc.: | | | |
3.625% 5/1/29 (b) | | 1,000,000 | 920,717 |
4.375% 4/15/28 (b) | | 1,045,000 | 1,003,770 |
Gen Digital, Inc. 5% 4/15/25 (b) | | 500,000 | 498,077 |
Go Daddy Operating Co. LLC / GD Finance Co., Inc.: | | | |
3.5% 3/1/29 (b) | | 750,000 | 697,357 |
5.25% 12/1/27 (b) | | 700,000 | 696,900 |
Lightning Power LLC 7.25% 8/15/32 (b) | | 220,000 | 227,325 |
Match Group Holdings II LLC: | | | |
3.625% 10/1/31 (b)(c) | | 285,000 | 253,069 |
4.125% 8/1/30 (b) | | 850,000 | 782,966 |
ON Semiconductor Corp. 3.875% 9/1/28 (b) | | 310,000 | 294,612 |
Open Text Corp.: | | | |
3.875% 2/15/28 (b) | | 1,375,000 | 1,303,667 |
3.875% 12/1/29 (b) | | 600,000 | 553,147 |
Qorvo, Inc. 4.375% 10/15/29 | | 475,000 | 457,425 |
Roblox Corp. 3.875% 5/1/30 (b) | | 445,000 | 409,955 |
Seagate HDD Cayman: | | | |
5.75% 12/1/34 | | 300,000 | 300,171 |
8.25% 12/15/29 | | 1,225,000 | 1,327,802 |
Sensata Technologies BV 4% 4/15/29 (b) | | 555,000 | 522,553 |
Sensata Technologies, Inc. 3.75% 2/15/31 (b) | | 665,000 | 600,466 |
TTM Technologies, Inc. 4% 3/1/29 (b) | | 680,000 | 641,756 |
Viavi Solutions, Inc. 3.75% 10/1/29 (b) | | 360,000 | 320,305 |
VM Consolidated, Inc. 5.5% 4/15/29 (b) | | 295,000 | 287,101 |
| | | 15,227,182 |
Telecommunications - 3.7% | | | |
Altice France SA 5.125% 7/15/29 (b) | | 550,000 | 383,728 |
C&W Senior Finance Ltd. 6.875% 9/15/27 (b) | | 1,354,000 | 1,332,957 |
Cogent Communications Group, Inc. 7% 6/15/27 (b) | | 415,000 | 420,015 |
Intelsat Jackson Holdings SA 6.5% 3/15/30 (b) | | 1,145,000 | 1,099,427 |
LCPR Senior Secured Financing DAC 5.125% 7/15/29 (b) | | 770,000 | 621,847 |
Level 3 Financing, Inc.: | | | |
10.5% 5/15/30 (b) | | 550,000 | 589,309 |
11% 11/15/29 (b) | | 131,422 | 144,079 |
Millicom International Cellular SA 5.125% 1/15/28 (b) | | 900,000 | 870,417 |
SBA Communications Corp.: | | | |
3.125% 2/1/29 | | 1,345,000 | 1,237,691 |
3.875% 2/15/27 | | 350,000 | 338,585 |
ViaSat, Inc. 5.625% 9/15/25 (b) | | 360,000 | 356,413 |
Virgin Media Secured Finance PLC 4.5% 8/15/30 (b) | | 1,845,000 | 1,629,324 |
| | | 9,023,792 |
Textiles/Apparel - 0.1% | | | |
Foot Locker, Inc. 4% 10/1/29 (b) | | 95,000 | 82,701 |
Kontoor Brands, Inc. 4.125% 11/15/29 (b) | | 60,000 | 56,500 |
| | | 139,201 |
Transportation Ex Air/Rail - 0.2% | | | |
XPO, Inc.: | | | |
6.25% 6/1/28 (b) | | 280,000 | 285,662 |
7.125% 2/1/32 (b) | | 145,000 | 151,695 |
| | | 437,357 |
Utilities - 4.2% | | | |
Clearway Energy Operating LLC: | | | |
3.75% 2/15/31 (b) | | 675,000 | 612,479 |
4.75% 3/15/28 (b) | | 145,000 | 140,868 |
DPL, Inc. 4.35% 4/15/29 | | 400,000 | 373,978 |
FirstEnergy Corp. 2.25% 9/1/30 (c) | | 1,225,000 | 1,065,799 |
NextEra Energy Partners LP: | | | |
4.25% 9/15/24 (b) | | 71,000 | 70,392 |
7.25% 1/15/29 (b)(c) | | 395,000 | 413,553 |
NRG Energy, Inc.: | | | |
5.25% 6/15/29 (b) | | 626,000 | 618,806 |
5.75% 1/15/28 | | 659,000 | 659,148 |
6.625% 1/15/27 | | 169,000 | 169,230 |
PG&E Corp. 5% 7/1/28 | | 1,440,000 | 1,410,384 |
TerraForm Power Operating LLC % (b) | | 809,000 | 793,684 |
TransAlta Corp. 6.5% 3/15/40 | | 270,000 | 280,436 |
Vertiv Group Corp. 4.125% 11/15/28 (b) | | 445,000 | 427,178 |
Vistra Operations Co. LLC: | | | |
5% 7/31/27 (b) | | 1,350,000 | 1,336,224 |
5.5% 9/1/26 (b) | | 1,022,000 | 1,019,845 |
5.625% 2/15/27 (b) | | 480,000 | 479,278 |
7.75% 10/15/31 (b) | | 200,000 | 212,804 |
| | | 10,084,086 |
TOTAL NONCONVERTIBLE BONDS | | | 218,602,088 |
TOTAL CORPORATE BONDS (Cost $221,132,764) | | | 219,759,846 |
| | | |
Bank Loan Obligations - 0.3% |
| | Principal Amount (a) | Value ($) |
Broadcasting - 0.0% | | | |
Diamond Sports Group LLC term loan 10% 8/2/27 (f) | | 44,423 | 56,639 |
Consumer Products - 0.0% | | | |
TripAdvisor, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 7.9967% 7/8/31 (d)(f)(g) | | 15,000 | 14,969 |
Metals/Mining - 0.1% | | | |
American Rock Salt Co. LLC 1LN, term loan CME Term SOFR 3 Month Index + 4.000% 9.3188% 6/4/28 (d)(f)(g) | | 258,002 | 203,305 |
Services - 0.1% | | | |
ABG Intermediate Holdings 2 LLC Tranche B1 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 7.9967% 12/21/28 (d)(f)(g) | | 127,400 | 127,692 |
Utilities - 0.1% | | | |
Brookfield WEC Holdings, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 7.9967% 1/20/31 (d)(f)(g) | | 160,875 | 160,968 |
TOTAL BANK LOAN OBLIGATIONS (Cost $577,198) | | | 563,573 |
| | | |
Preferred Securities - 1.3% |
| | Principal Amount (a) | Value ($) |
Air Transportation - 0.3% | | | |
AerCap Holdings NV 5.875% 10/10/79 (d) | | 650,000 | 664,158 |
Banks & Thrifts - 0.8% | | | |
Ally Financial, Inc. 4.7% (d)(h) | | 1,300,000 | 1,184,276 |
Citigroup, Inc. 7.125% (d)(h) | | 430,000 | 447,917 |
Wells Fargo & Co. 7.625% (c)(d)(h) | | 270,000 | 294,560 |
TOTAL BANKS & THRIFTS | | | 1,926,753 |
Diversified Financial Services - 0.2% | | | |
Charles Schwab Corp.: | | | |
4% (d)(h) | | 355,000 | 312,441 |
5.375% (d)(h) | | 175,000 | 175,937 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | 488,378 |
TOTAL PREFERRED SECURITIES (Cost $3,099,712) | | | 3,079,289 |
| | | |
Money Market Funds - 11.1% |
| | Shares | Value ($) |
Fidelity Cash Central Fund 5.39% (i) | | 14,468,643 | 14,471,537 |
Fidelity Securities Lending Cash Central Fund 5.39% (i)(j) | | 12,363,301 | 12,364,537 |
TOTAL MONEY MARKET FUNDS (Cost $26,834,136) | | | 26,836,074 |
| | | |
TOTAL INVESTMENT IN SECURITIES - 103.8% (Cost $251,643,810) | 250,238,782 |
NET OTHER ASSETS (LIABILITIES) - (3.8)% | (9,093,468) |
NET ASSETS - 100.0% | 241,145,314 |
| |
Legend
(a) | Amount is stated in United States dollars unless otherwise noted. |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $159,802,989 or 66.3% of net assets. |
(c) | Security or a portion of the security is on loan at period end. |
(d) | Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) | Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(f) | Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. |
(g) | Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors. |
(h) | Security is perpetual in nature with no stated maturity date. |
(i) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(j) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
Fidelity Cash Central Fund 5.39% | 29,184,776 | 87,594,817 | 102,308,131 | 1,366,220 | 75 | - | 14,471,537 | 0.0% |
Fidelity Securities Lending Cash Central Fund 5.39% | - | 27,028,145 | 14,663,607 | 12,339 | - | (1) | 12,364,537 | 0.1% |
Total | 29,184,776 | 114,622,962 | 116,971,738 | 1,378,559 | 75 | (1) | 26,836,074 | |
| | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund 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.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: |
Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
Corporate Bonds | 219,759,846 | - | 219,759,846 | - |
|
Bank Loan Obligations | 563,573 | - | 563,573 | - |
|
Preferred Securities | 3,079,289 | - | 3,079,289 | - |
|
Money Market Funds | 26,836,074 | 26,836,074 | - | - |
Total Investments in Securities: | 250,238,782 | 26,836,074 | 223,402,708 | - |
Financial Statements
Statement of Assets and Liabilities |
As of August 31, 2024 |
Assets | | | | |
Investment in securities, at value (including securities loaned of $11,916,993) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $224,809,674) | $ | 223,402,708 | | |
Fidelity Central Funds (cost $26,834,136) | | 26,836,074 | | |
| | | | |
| | | | |
Total Investment in Securities (cost $251,643,810) | | | $ | 250,238,782 |
Cash | | | | 69,177 |
Receivable for investments sold | | | | 559 |
Interest receivable | | | | 3,199,134 |
Distributions receivable from Fidelity Central Funds | | | | 72,698 |
Total assets | | | | 253,580,350 |
Liabilities | | | | |
Payable for investments purchased | $ | 69,257 | | |
Other payables and accrued expenses | | 1,242 | | |
Collateral on securities loaned | | 12,364,537 | | |
Total liabilities | | | | 12,435,036 |
Net Assets | | | $ | 241,145,314 |
Net Assets consist of: | | | | |
Paid in capital | | | $ | 257,293,583 |
Total accumulated earnings (loss) | | | | (16,148,269) |
Net Assets | | | $ | 241,145,314 |
Net Asset Value, offering price and redemption price per share ($241,145,314 ÷ 2,736,607 shares) | | | $ | 88.12 |
Statement of Operations |
Year ended August 31, 2024 |
Investment Income | | | | |
Dividends | | | $ | 278,596 |
Interest | | | | 19,051,268 |
Income from Fidelity Central Funds (including $12,339 from security lending) | | | | 1,378,559 |
Total income | | | | 20,708,423 |
Expenses | | | | |
Custodian fees and expenses | $ | 2,389 | | |
Independent trustees' fees and expenses | | 1,736 | | |
Miscellaneous | | 3 | | |
Total expenses before reductions | | 4,128 | | |
Expense reductions | | (1,292) | | |
Total expenses after reductions | | | | 2,836 |
Net Investment income (loss) | | | | 20,705,587 |
Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investment Securities: | | | | |
Unaffiliated issuers | | (1,982,802) | | |
Redemptions in-kind | | (5,913,441) | | |
Fidelity Central Funds | | 75 | | |
Total net realized gain (loss) | | | | (7,896,168) |
Change in net unrealized appreciation (depreciation) on: | | | | |
Investment Securities: | | | | |
Unaffiliated issuers | | 21,766,380 | | |
Fidelity Central Funds | | (1) | | |
Total change in net unrealized appreciation (depreciation) | | | | 21,766,379 |
Net gain (loss) | | | | 13,870,211 |
Net increase (decrease) in net assets resulting from operations | | | $ | 34,575,798 |
Statement of Changes in Net Assets |
|
| | Year ended August 31, 2024 | | Year ended August 31, 2023 |
Increase (Decrease) in Net Assets | | | | |
Operations | | | | |
Net investment income (loss) | $ | 20,705,587 | $ | 18,793,308 |
Net realized gain (loss) | | (7,896,168) | | (9,874,728) |
Change in net unrealized appreciation (depreciation) | | 21,766,379 | | 9,704,991 |
Net increase (decrease) in net assets resulting from operations | | 34,575,798 | | 18,623,571 |
Distributions to shareholders | | (20,358,240) | | (18,400,365) |
| | | | |
Affiliated share transactions | | | | |
Proceeds from sales of shares | | 75,000,000 | | 10,000,000 |
Reinvestment of distributions | | 19,363,097 | | 18,400,158 |
Cost of shares redeemed | | (228,742,015) | | (74,608) |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | (134,378,918) | | 28,325,550 |
Total increase (decrease) in net assets | | (120,161,360) | | 28,548,756 |
| | | | |
Net Assets | | | | |
Beginning of period | | 361,306,674 | | 332,757,918 |
End of period | $ | 241,145,314 | $ | 361,306,674 |
| | | | |
Other Information | | | | |
Shares | | | | |
Sold | | 886,194 | | 118,371 |
Issued in reinvestment of distributions | | 227,078 | | 220,333 |
Redeemed | | (2,687,289) | | (900) |
Net increase (decrease) | | (1,574,017) | | 337,804 |
| | | | |
Financial Highlights
Fidelity® Specialized High Income Central Fund |
|
Years ended August 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
Net asset value, beginning of period | $ | 83.82 | $ | 83.76 | $ | 100.89 | $ | 100.01 | $ | 102.28 |
Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | 5.075 | | 4.570 | | 4.198 | | 4.670 | | 5.162 |
Net realized and unrealized gain (loss) | | 4.164 | | (.039) | | (13.727) | | 1.582 | | (1.042) |
Total from investment operations | | 9.239 | | 4.531 | | (9.529) | | 6.252 | | 4.120 |
Distributions from net investment income | | (4.939) | | (4.471) | | (4.181) | | (4.623) | | (5.093) |
Distributions from net realized gain | | - | | - | | (3.420) | | (.749) | | (1.297) |
Total distributions | | (4.939) | | (4.471) | | (7.601) | | (5.372) | | (6.390) |
Net asset value, end of period | $ | 88.12 | $ | 83.82 | $ | 83.76 | $ | 100.89 | $ | 100.01 |
Total Return C | | | | 5.56% | | (9.98)% | | 6.46% | | 4.25% |
Ratios to Average Net Assets B,D,E | | | | | | | | | | |
Expenses before reductions F | | -% | | -% | | -% | | -% | | -% |
Expenses net of fee waivers, if any F | | | | -% | | -% | | -% | | -% |
Expenses net of all reductions F | | -% | | -% | | -% | | -% | | -% |
Net investment income (loss) | | 5.93% | | 5.48% | | 4.61% | | 4.67% | | 5.20% |
Supplemental Data | | | | | | | | | | |
Net assets, end of period (000 omitted) | $ | 241,145 | $ | 361,307 | $ | 332,758 | $ | 361,517 | $ | 531,050 |
Portfolio turnover rate G | | | | 23% | | 23% | | 55% | | 54% |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
DFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
EExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
FAmount represents less than .005%.
GAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
HPortfolio turnover rate excludes securities received or delivered in-kind.
Notes to Financial Statements
For the period ended August 31, 2024
1. Organization.
Fidelity Specialized High Income Central Fund (the Fund) is a fund of Fidelity Central Investment Portfolios LLC (the LLC) and is authorized to issue an unlimited number of shares. Shares of the Fund are only offered to other investment companies and accounts managed by Fidelity Management & Research Company LLC (FMR), or its affiliates (the Investing Funds). The LLC is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware Limited Liability Company.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense RatioA |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
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 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing services 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 services. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 August 31, 2024 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2024, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to prior period premium and discount on debt securities, partnerships, redemptions in-kind, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $4,421,305 |
Gross unrealized depreciation | (5,887,255) |
Net unrealized appreciation (depreciation) | $(1,465,950) |
Tax Cost | $251,704,732 |
The tax-based components of distributable earnings as of period end were as follows:
Capital loss carryforward | $(14,636,993) |
Net unrealized appreciation (depreciation) on securities and other investments | $(1,465,950) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term | $(1,577,861) |
Long-term | (13,059,132) |
Total capital loss carryforward | $(14,636,993) |
Due to large redemptions in the period, approximately $11,543,406 of the Fund's realized capital losses are subject to limitation. Due to this limitation, the Fund will only be permitted to use approximately $7,670,522 of those capital losses per year to offset capital gains. Additionally, the Fund is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those losses are realized and the limitation prevents the Fund from using any of those losses in a future period, those capital losses will be available to offset capital gains in subsequent periods.
The tax character of distributions paid was as follows:
| August 31, 2024 | August 31, 2023 |
Ordinary Income | $20,358,240 | $18,400,365 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity Specialized High Income Central Fund | 148,515,670 | 52,439,023 |
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. Fidelity Management & Research Company LLC (the investment adviser) provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's expense contract, the investment adviser also pays all other expenses of the Fund, excluding custody fees, the compensation of the independent Directors, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
Sub-Advisory Arrangements. Effective March 1, 2024, the Fund's sub-advisory agreements with FMR Investment Management (UK) Limited, Fidelity Management & Research (Hong Kong) Limited, and Fidelity Management & Research (Japan) Limited were amended to provide that the investment adviser pays each sub-adviser monthly fees equal to 110% of the sub-adviser's costs for providing sub-advisory services.
Affiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss on investments delivered through in-kind redemptions is included in the "Net realized gain (loss) on: Redemptions in-kind" line in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. There was no gain or loss for federal income tax purposes.
| Shares | Total net realized gain or loss ($) | Total Proceeds ($) |
Fidelity Specialized High Income Central Fund | 2,687,289 | (5,913,441) | 228,742,015 |
6. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
| Total Security Lending Fees Paid to NFS ($) | Security Lending Income From Securities Loaned to NFS ($) | Value of Securities Loaned to NFS at Period End ($) |
Fidelity Specialized High Income Central Fund | 1,298 | - | - |
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1,292.
8. Other.
A fund's organizational documents provide former and current directors 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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.
9. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Central Investment Portfolios LLC and the Shareholders of Fidelity Specialized High Income Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Specialized High Income Central Fund (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of August 31, 2024, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2024, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 16, 2024
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Distributions
(Unaudited)
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
A total of 1.30% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $17,425,347 of distributions paid in the calendar year 2023 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund designates $20,358,240 of distributions paid during the fiscal year ended 2024 as qualifying to be taxed as section 163(j) interest dividends.
The fund will notify shareholders in January 2025 of amounts for use in preparing 2024 income tax returns.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies
(Unaudited)
Note: This is not applicable for any fund included in this document.
Item 9: Proxy Disclosures for Open-End Management Investment Companies
(Unaudited)
A special meeting of shareholders was held on July 16, 2024. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting. |
Proposal 1 |
To elect a Board of Trustees. |
| # of Votes | % of Votes |
Bettina Doulton |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Robert A. Lawrence |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Vijay C. Advani |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Thomas P. Bostick |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Donald F. Donahue |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Vicki L. Fuller |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Patricia L. Kampling |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Thomas A. Kennedy |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Oscar Munoz |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Karen B. Peetz |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
David M. Thomas |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Susan Tomasky |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Michael E. Wiley |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
| | |
Proposal 1 reflects trust-wide proposal and voting results. |
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies
(Unaudited)
Note: This information is disclosed as part of the financial statements for each Fund as part of Item 7: Financial Statements and Financial Highlights for Open-End Management Investment companies.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract
(Unaudited)
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Specialized High Income Central Fund
Each year, the Board of Directors, including the Independent Directors (together, the Board), considers the renewal of the fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Directors' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Directors), requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its May 2024 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Directors' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of the fund's investment program. The Independent Directors also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted the resources devoted to expansion of Fidelity's global investment organization, and that Fidelity's analysts have extensive resources, tools, and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties, and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted by Fidelity to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, and the use of "soft" commission dollars to pay for research services. The Board also considered the fund's securities lending activities and any payments made to Fidelity relating to securities lending under a separate agreement.
Investment Performance. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, and considered the fund's underperformance for different time periods ended February 29, 2024. The Board noted that the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer a liquid investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered that while the fund does not pay a management fee, FMR receives fees for providing services to funds that invest in the fund. The Board also noted that FMR bears all expenses of the fund with certain limited exceptions (i.e., custody fees, interest, taxes, fees and expenses of the Independent Directors, proxy and shareholder meeting expenses, and extraordinary expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable. Based on its review, the Board concluded that the management fee received for providing services to the fund and the fund's total expense ratio were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds, as well as the profitability of the funds that invest in the fund.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.
Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contract.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including but not limited to: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) the operation of performance fees and the rationale for implementing performance fees on certain categories of funds but not others; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; (vii) the variable management fee implemented for certain funds effective March 1, 2024; and (viii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Directors, concluded that the advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that the fund's Advisory Contracts should be renewed through May 31, 2025.
1.820817.119
SHI-ANN-1024
Fidelity® High Income Central Fund
Annual Report
August 31, 2024
Contents
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. © 2024 FMR LLC. All rights reserved.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report)
Fidelity® High Income Central Fund
Schedule of Investments August 31, 2024
Showing Percentage of Net Assets
Corporate Bonds - 79.2% |
| | Principal Amount (a) | Value ($) |
Convertible Bonds - 1.4% | | | |
Broadcasting - 1.1% | | | |
DISH Network Corp.: | | | |
0% 12/15/25 | | 3,263,000 | 2,430,935 |
3.375% 8/15/26 | | 20,439,000 | 12,725,087 |
| | | 15,156,022 |
Diversified Financial Services - 0.2% | | | |
Coinbase Global, Inc. 0.25% 4/1/30 (b) | | 40,000 | 36,340 |
New Cotai LLC 5% 2/24/27 (c) | | 1,716,270 | 3,076,585 |
| | | 3,112,925 |
Technology - 0.1% | | | |
Wolfspeed, Inc. 1.875% 12/1/29 | | 2,949,000 | 1,124,169 |
TOTAL CONVERTIBLE BONDS | | | 19,393,116 |
Nonconvertible Bonds - 77.8% | | | |
Aerospace - 3.1% | | | |
AAR Escrow Issuer LLC 6.75% 3/15/29 (b) | | 2,285,000 | 2,365,325 |
ATI, Inc.: | | | |
4.875% 10/1/29 | | 1,205,000 | 1,168,469 |
5.125% 10/1/31 | | 845,000 | 812,720 |
5.875% 12/1/27 (d) | | 2,480,000 | 2,484,876 |
Bombardier, Inc.: | | | |
6% 2/15/28 (b) | | 1,450,000 | 1,450,774 |
7% 6/1/32 (b) | | 1,395,000 | 1,452,182 |
7.25% 7/1/31 (b) | | 1,920,000 | 2,015,405 |
7.875% 4/15/27 (b) | | 3,053,000 | 3,063,383 |
Moog, Inc. 4.25% 12/15/27 (b) | | 735,000 | 707,941 |
TransDigm, Inc.: | | | |
5.5% 11/15/27 | | 10,450,000 | 10,358,563 |
6.375% 3/1/29 (b) | | 5,680,000 | 5,853,586 |
6.625% 3/1/32 (b) | | 2,160,000 | 2,246,335 |
6.875% 12/15/30 (b) | | 4,905,000 | 5,121,958 |
VistaJet Malta Finance PLC / XO Management Holding, Inc. 6.375% 2/1/30 (b) | | 4,250,000 | 3,485,050 |
Wesco Aircraft Holdings, Inc. 8.5% (b)(e) | | 1,585,000 | 221,900 |
| | | 42,808,467 |
Air Transportation - 0.6% | | | |
Air Canada 3.875% 8/15/26 (b) | | 2,110,000 | 2,036,010 |
Allegiant Travel Co. 7.25% 8/15/27 (b)(d) | | 1,545,000 | 1,466,814 |
Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd. 8% 9/20/25 (b) | | 4,225,000 | 2,638,586 |
United Airlines, Inc. 4.625% 4/15/29 (b) | | 1,650,000 | 1,570,636 |
| | | 7,712,046 |
Automotive & Auto Parts - 1.4% | | | |
Aston Martin Capital Holdings Ltd. 10% 3/31/29 (b) | | 1,745,000 | 1,777,071 |
Ford Motor Credit Co. LLC: | | | |
2.9% 2/16/28 | | 2,000,000 | 1,850,784 |
3.625% 6/17/31 | | 2,480,000 | 2,197,325 |
Hudson Automotive Group 8% 5/15/32 (b) | | 825,000 | 870,167 |
LCM Investments Holdings 4.875% 5/1/29 (b)(d) | | 3,665,000 | 3,491,289 |
Macquarie AirFinance Holdings: | | | |
6.4% 3/26/29 (b) | | 440,000 | 457,913 |
6.5% 3/26/31 (b) | | 675,000 | 711,689 |
8.375% 5/1/28 (b) | | 2,010,000 | 2,129,663 |
McLaren Finance PLC 7.5% 8/1/26 (b) | | 3,035,000 | 2,666,235 |
Nesco Holdings II, Inc. 5.5% 4/15/29 (b) | | 1,770,000 | 1,634,269 |
Wand NewCo 3, Inc. 7.625% 1/30/32 (b) | | 1,675,000 | 1,754,780 |
| | | 19,541,185 |
Banks & Thrifts - 1.1% | | | |
Ally Financial, Inc.: | | | |
5.8% 5/1/25 | | 20,000 | 20,040 |
8% 11/1/31 | | 2,573,000 | 2,935,466 |
8% 11/1/31 | | 3,758,000 | 4,289,018 |
Aretec Group, Inc. 10% 8/15/30 (b) | | 4,615,000 | 4,981,976 |
Jane Street Group LLC/JSG Finance, Inc. 7.125% 4/30/31 (b) | | 2,805,000 | 2,945,923 |
| | | 15,172,423 |
Broadcasting - 2.4% | | | |
Clear Channel Outdoor Holdings, Inc.: | | | |
7.5% 6/1/29 (b) | | 2,590,000 | 2,183,948 |
7.75% 4/15/28 (b) | | 1,370,000 | 1,194,091 |
7.875% 4/1/30 (b)(d) | | 4,440,000 | 4,639,165 |
Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375% (b)(e) | | 2,515,000 | 31,438 |
Gray Television, Inc. 5.375% 11/15/31 (b) | | 2,970,000 | 1,701,192 |
iHeartCommunications, Inc. 9% (c)(e) | | 780,000 | 0 |
Nexstar Media, Inc. 5.625% 7/15/27 (b) | | 2,755,000 | 2,692,204 |
Scripps Escrow II, Inc.: | | | |
3.875% 1/15/29 (b) | | 2,170,000 | 1,399,065 |
5.375% 1/15/31 (b) | | 1,130,000 | 507,735 |
Scripps Escrow, Inc. 5.875% 7/15/27 (b) | | 1,780,000 | 1,274,027 |
Sirius XM Radio, Inc.: | | | |
4.125% 7/1/30 (b) | | 2,155,000 | 1,934,291 |
5% 8/1/27 (b) | | 4,295,000 | 4,198,390 |
Univision Communications, Inc.: | | | |
6.625% 6/1/27 (b) | | 5,150,000 | 5,097,586 |
7.375% 6/30/30 (b)(d) | | 3,455,000 | 3,316,247 |
8.5% 7/31/31 (b)(d) | | 3,495,000 | 3,488,059 |
| | | 33,657,438 |
Building Materials - 1.8% | | | |
Acproducts Holdings, Inc. 6.375% 5/15/29 (b) | | 3,465,000 | 1,761,699 |
Advanced Drain Systems, Inc.: | | | |
5% 9/30/27 (b) | | 505,000 | 497,193 |
6.375% 6/15/30 (b) | | 2,270,000 | 2,307,444 |
Builders FirstSource, Inc. 6.375% 3/1/34 (b) | | 4,935,000 | 5,066,550 |
EMRLD Borrower LP / Emerald Co.: | | | |
6.625% 12/15/30 (b) | | 5,505,000 | 5,637,307 |
6.75% 7/15/31 (b) | | 1,590,000 | 1,638,484 |
MasterBrand, Inc. 7% 7/15/32 (b) | | 1,055,000 | 1,086,656 |
MITER Brands Acquisition Holdco, Inc. / MIWD Borrower LLC 6.75% 4/1/32 (b) | | 1,065,000 | 1,094,448 |
MIWD Holdco II LLC / MIWD Finance Corp. 5.5% 2/1/30 (b) | | 590,000 | 559,384 |
Wesco Distribution, Inc. 6.625% 3/15/32 (b) | | 4,935,000 | 5,084,007 |
| | | 24,733,172 |
Cable/Satellite TV - 2.7% | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | | | |
4.25% 1/15/34 (b) | | 3,730,000 | 3,007,912 |
4.5% 6/1/33 (b)(d) | | 4,415,000 | 3,690,942 |
4.75% 3/1/30 (b) | | 5,200,000 | 4,739,950 |
CSC Holdings LLC: | | | |
3.375% 2/15/31 (b) | | 3,305,000 | 2,125,256 |
4.125% 12/1/30 (b) | | 2,590,000 | 1,707,995 |
4.5% 11/15/31 (b) | | 2,175,000 | 1,446,501 |
4.625% 12/1/30 (b) | | 5,895,000 | 2,304,911 |
5% 11/15/31 (b) | | 2,290,000 | 852,646 |
5.75% 1/15/30 (b) | | 3,690,000 | 1,459,670 |
7.5% 4/1/28 (b) | | 4,545,000 | 2,329,620 |
DISH DBS Corp. 5.75% 12/1/28 (b) | | 1,465,000 | 1,127,182 |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | | | |
4.5% 9/15/26 (b) | | 2,820,000 | 2,234,215 |
6.5% 9/15/28 (b) | | 4,005,000 | 2,154,518 |
VZ Secured Financing BV 5% 1/15/32 (b) | | 6,990,000 | 6,324,039 |
Ziggo Bond Co. BV 5.125% 2/28/30 (b) | | 1,155,000 | 1,042,323 |
Ziggo BV 4.875% 1/15/30 (b) | | 1,730,000 | 1,612,909 |
| | | 38,160,589 |
Chemicals - 2.8% | | | |
Avient Corp. 5.75% 5/15/25 (b) | | 1,970,000 | 1,971,330 |
Axalta Coating Systems/Dutch Holding BV 4.75% 6/15/27 (b) | | 2,445,000 | 2,405,780 |
Consolidated Energy Finance SA 12% 2/15/31 (b) | | 2,105,000 | 2,071,796 |
CVR Partners LP/CVR Nitrogen Finance Corp. 6.125% 6/15/28 (b) | | 3,010,000 | 2,921,874 |
Kobe U.S. Midco 2, Inc. 9.25% 11/1/26 pay-in-kind (b)(f) | | 6,510,262 | 5,338,415 |
LSB Industries, Inc. 6.25% 10/15/28 (b) | | 270,000 | 264,596 |
NOVA Chemicals Corp.: | | | |
4.25% 5/15/29 (b) | | 2,650,000 | 2,417,073 |
9% 2/15/30 (b) | | 2,100,000 | 2,255,679 |
Olympus Water U.S. Holding Corp.: | | | |
7.125% 10/1/27 (b) | | 1,560,000 | 1,581,686 |
9.75% 11/15/28 (b) | | 1,805,000 | 1,922,664 |
SCIH Salt Holdings, Inc.: | | | |
4.875% 5/1/28 (b) | | 2,630,000 | 2,506,048 |
6.625% 5/1/29 (b) | | 1,755,000 | 1,679,491 |
The Chemours Co. LLC: | | | |
4.625% 11/15/29 (b)(d) | | 3,085,000 | 2,713,906 |
5.375% 5/15/27 | | 1,415,000 | 1,374,915 |
Tronox, Inc. 4.625% 3/15/29 (b)(d) | | 2,210,000 | 2,014,036 |
W.R. Grace Holding LLC: | | | |
4.875% 6/15/27 (b) | | 3,255,000 | 3,183,057 |
5.625% 8/15/29 (b) | | 2,375,000 | 2,202,200 |
| | | 38,824,546 |
Consumer Products - 0.7% | | | |
Central Garden & Pet Co. 4.125% 10/15/30 | | 1,675,000 | 1,539,033 |
Gannett Holdings LLC 6% 11/1/26 (b) | | 1,390,000 | 1,388,672 |
Mattel, Inc. 3.375% 4/1/26 (b) | | 745,000 | 723,789 |
The Scotts Miracle-Gro Co. 4% 4/1/31 | | 1,495,000 | 1,339,353 |
TKC Holdings, Inc. 10.5% 5/15/29 (b) | | 4,209,000 | 4,198,403 |
| | | 9,189,250 |
Containers - 0.4% | | | |
ARD Finance SA 6.5% 6/30/27 pay-in-kind (b)(f) | | 2,525,000 | 581,702 |
Berry Global, Inc.: | | | |
4.5% 2/15/26 (b) | | 2,134,000 | 2,103,436 |
4.875% 7/15/26 (b) | | 631,000 | 624,355 |
Graham Packaging Co., Inc. 7.125% 8/15/28 (b) | | 1,430,000 | 1,413,307 |
Graphic Packaging International, Inc. 3.75% 2/1/30 (b) | | 1,185,000 | 1,095,992 |
| | | 5,818,792 |
Diversified Financial Services - 3.0% | | | |
Boost Newco Borrower LLC 7.5% 1/15/31 (b) | | 6,510,000 | 6,941,288 |
Coinbase Global, Inc. 3.625% 10/1/31 (b)(d) | | 6,085,000 | 5,014,384 |
Fortress Transportation & Infrastructure Investors LLC: | | | |
7% 5/1/31 (b) | | 2,815,000 | 2,948,552 |
7% 6/15/32 (b) | | 2,000,000 | 2,092,382 |
GGAM Finance Ltd. 6.875% 4/15/29 (b) | | 1,690,000 | 1,743,987 |
Gn Bondco LLC 9.5% 10/15/31 (b)(d) | | 2,995,000 | 3,048,528 |
Hightower Holding LLC 6.75% 4/15/29 (b) | | 970,000 | 926,078 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | |
5.25% 5/15/27 | | 5,970,000 | 5,753,588 |
9% 6/15/30 (b) | | 5,580,000 | 5,645,855 |
MSCI, Inc. 4% 11/15/29 (b)(d) | | 2,265,000 | 2,164,096 |
OneMain Finance Corp.: | | | |
7.125% 3/15/26 | | 3,460,000 | 3,525,508 |
7.125% 11/15/31 | | 1,380,000 | 1,394,392 |
| | | 41,198,638 |
Diversified Media - 0.6% | | | |
Allen Media LLC/Allen Media Co.-Issuer, Inc. 10.5% 2/15/28 (b) | | 7,650,000 | 2,983,500 |
CMG Media Corp. 8.875% 12/15/27 (b) | | 6,280,000 | 3,328,400 |
Lamar Media Corp. 4.875% 1/15/29 | | 1,980,000 | 1,944,629 |
| | | 8,256,529 |
Energy - 10.2% | | | |
Archrock Partners LP / Archrock Partners Finance Corp.: | | | |
6.25% 4/1/28 (b) | | 2,475,000 | 2,485,452 |
6.875% 4/1/27 (b) | | 252,000 | 253,831 |
Atlantica Sustainable Infrastructure PLC 4.125% 6/15/28 (b) | | 1,235,000 | 1,223,723 |
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.25% 7/15/32 (b) | | 2,120,000 | 2,222,784 |
California Resources Corp. 8.25% 6/15/29 (b) | | 3,220,000 | 3,321,195 |
Canacol Energy Ltd. 5.75% 11/24/28 (b) | | 3,172,000 | 1,827,865 |
Citgo Petroleum Corp.: | | | |
6.375% 6/15/26 (b) | | 2,610,000 | 2,624,686 |
7% 6/15/25 (b) | | 6,180,000 | 6,183,733 |
CNX Resources Corp.: | | | |
6% 1/15/29 (b) | | 1,185,000 | 1,188,272 |
7.25% 3/1/32 (b) | | 1,885,000 | 1,973,738 |
7.375% 1/15/31 (b) | | 1,685,000 | 1,760,837 |
Comstock Resources, Inc.: | | | |
5.875% 1/15/30 (b) | | 1,595,000 | 1,507,948 |
6.75% 3/1/29 (b) | | 3,485,000 | 3,427,985 |
6.75% 3/1/29 (b) | | 2,110,000 | 2,070,439 |
CQP Holdco LP / BIP-V Chinook Holdco LLC 5.5% 6/15/31 (b) | | 7,280,000 | 7,136,880 |
CrownRock LP/CrownRock Finance, Inc. 5% 5/1/29 (b) | | 830,000 | 841,447 |
CVR Energy, Inc. 5.75% 2/15/28 (b) | | 3,995,000 | 3,767,456 |
Delek Logistics Partners LP/Delek Logistics Finance Corp.: | | | |
7.125% 6/1/28 (b) | | 1,520,000 | 1,531,786 |
8.625% 3/15/29 (b) | | 1,385,000 | 1,456,296 |
DT Midstream, Inc.: | | | |
4.125% 6/15/29 (b)(d) | | 2,545,000 | 2,417,724 |
4.375% 6/15/31 (b)(d) | | 2,545,000 | 2,391,373 |
Endeavor Energy Resources LP/EER Finance, Inc. 5.75% 1/30/28 (b) | | 4,185,000 | 4,258,643 |
Energy Transfer LP 5.75% 4/1/25 | | 1,045,000 | 1,044,182 |
EnLink Midstream LLC: | | | |
5.625% 1/15/28 (b) | | 1,060,000 | 1,079,523 |
6.5% 9/1/30 (b) | | 2,150,000 | 2,298,578 |
EQT Corp. 3.625% 5/15/31 (b) | | 1,720,000 | 1,562,116 |
Global Partners LP/GLP Finance Corp. 8.25% 1/15/32 (b) | | 820,000 | 852,448 |
Harvest Midstream I LP 7.5% 9/1/28 (b) | | 5,565,000 | 5,695,243 |
Hess Midstream Operations LP: | | | |
4.25% 2/15/30 (b) | | 1,560,000 | 1,474,388 |
5.125% 6/15/28 (b) | | 2,905,000 | 2,871,804 |
5.5% 10/15/30 (b) | | 920,000 | 911,450 |
5.625% 2/15/26 (b) | | 6,900,000 | 6,881,096 |
Howard Midstream Energy Partners LLC 7.375% 7/15/32 (b) | | 3,035,000 | 3,142,020 |
KLX Energy Services Holdings, Inc. 11.5% 11/1/25 (b) | | 2,685,000 | 2,641,369 |
MC Brazil Downstream Trading SARL 7.25% 6/30/31 (b) | | 2,915,000 | 2,629,877 |
MEG Energy Corp. 5.875% 2/1/29 (b) | | 4,235,000 | 4,193,613 |
New Fortress Energy, Inc. 6.75% 9/15/25 (b) | | 4,431,000 | 4,320,837 |
Northern Oil & Gas, Inc.: | | | |
8.125% 3/1/28 (b) | | 3,455,000 | 3,532,579 |
8.75% 6/15/31 (b) | | 1,840,000 | 1,965,346 |
Occidental Petroleum Corp.: | | | |
4.3% 8/15/39 | | 880,000 | 747,155 |
4.4% 4/15/46 | | 1,750,000 | 1,435,799 |
4.5% 7/15/44 | | 815,000 | 658,634 |
6.6% 3/15/46 | | 2,590,000 | 2,796,669 |
PBF Holding Co. LLC/PBF Finance Corp.: | | | |
6% 2/15/28 (d) | | 2,320,000 | 2,297,219 |
7.875% 9/15/30 (b) | | 3,835,000 | 3,987,875 |
Permian Resources Operating LLC: | | | |
5.875% 7/1/29 (b) | | 2,610,000 | 2,610,000 |
6.25% 2/1/33 (b) | | 3,665,000 | 3,758,105 |
Southwestern Energy Co.: | | | |
4.75% 2/1/32 | | 2,135,000 | 2,023,515 |
5.375% 2/1/29 | | 1,625,000 | 1,604,248 |
Sunoco Logistics Partners, LP 7.25% 5/1/32 (b) | | 1,515,000 | 1,602,346 |
Sunoco LP/Sunoco Finance Corp. 4.5% 5/15/29 | | 2,280,000 | 2,189,041 |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp. 6% 12/31/30 (b) | | 2,370,000 | 2,260,159 |
Transocean, Inc.: | | | |
8.25% 5/15/29 (b) | | 1,405,000 | 1,422,394 |
8.5% 5/15/31 (b) | | 1,405,000 | 1,425,665 |
Tullow Oil PLC 10.25% 5/15/26 (b) | | 4,650,000 | 4,499,805 |
Venture Global Calcasieu Pass LLC 3.875% 8/15/29 (b) | | 2,220,000 | 2,098,753 |
Viper Energy, Inc. 5.375% 11/1/27 (b) | | 1,105,000 | 1,095,038 |
| | | 141,482,982 |
Environmental - 0.5% | | | |
Madison IAQ LLC: | | | |
4.125% 6/30/28 (b) | | 1,795,000 | 1,707,942 |
5.875% 6/30/29 (b) | | 2,775,000 | 2,644,323 |
Reworld Holding Corp. 4.875% 12/1/29 (b) | | 1,355,000 | 1,257,326 |
Stericycle, Inc. 3.875% 1/15/29 (b) | | 1,645,000 | 1,597,315 |
| | | 7,206,906 |
Food & Drug Retail - 0.9% | | | |
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | | | |
3.5% 3/15/29 (b) | | 1,655,000 | 1,532,776 |
4.875% 2/15/30 (b) | | 6,890,000 | 6,734,029 |
Emergent BioSolutions, Inc. 3.875% 8/15/28 (b) | | 1,470,000 | 1,091,436 |
Murphy Oil U.S.A., Inc. 3.75% 2/15/31 (b) | | 3,025,000 | 2,736,907 |
| | | 12,095,148 |
Food/Beverage/Tobacco - 2.6% | | | |
BellRing Brands, Inc. 7% 3/15/30 (b) | | 845,000 | 877,601 |
C&S Group Enterprises LLC 5% 12/15/28 (b) | | 1,905,000 | 1,439,044 |
Chobani LLC/Finance Corp., Inc.: | | | |
4.625% 11/15/28 (b) | | 1,465,000 | 1,415,659 |
7.625% 7/1/29 (b) | | 2,700,000 | 2,829,233 |
Fiesta Purchaser, Inc. 7.875% 3/1/31 (b) | | 1,215,000 | 1,278,181 |
Kraft Heinz Foods Co. 5.5% 6/1/50 | | 855,000 | 853,028 |
Lamb Weston Holdings, Inc. 4.125% 1/31/30 (b) | | 2,290,000 | 2,131,611 |
Performance Food Group, Inc.: | | | |
4.25% 8/1/29 (b) | | 1,350,000 | 1,274,042 |
5.5% 10/15/27 (b) | | 5,775,000 | 5,742,091 |
Post Holdings, Inc.: | | | |
4.625% 4/15/30 (b) | | 625,000 | 594,006 |
6.25% 2/15/32 (b) | | 3,715,000 | 3,809,773 |
TreeHouse Foods, Inc. 4% 9/1/28 | | 860,000 | 794,984 |
Triton Water Holdings, Inc. 6.25% 4/1/29 (b) | | 4,345,000 | 4,296,859 |
U.S. Foods, Inc.: | | | |
4.625% 6/1/30 (b) | | 1,110,000 | 1,062,478 |
4.75% 2/15/29 (b) | | 3,100,000 | 3,022,643 |
6.875% 9/15/28 (b) | | 2,795,000 | 2,907,434 |
7.25% 1/15/32 (b) | | 1,550,000 | 1,636,123 |
| | | 35,964,790 |
Gaming - 2.8% | | | |
Caesars Entertainment, Inc.: | | | |
4.625% 10/15/29 (b)(d) | | 2,860,000 | 2,705,300 |
6.5% 2/15/32 (b) | | 3,790,000 | 3,894,721 |
8.125% 7/1/27 (b) | | 6,225,000 | 6,357,219 |
Churchill Downs, Inc. 5.75% 4/1/30 (b) | | 4,380,000 | 4,353,681 |
Fertitta Entertainment LLC / Fertitta Entertainment Finance Co., Inc.: | | | |
4.625% 1/15/29 (b) | | 2,925,000 | 2,736,347 |
6.75% 1/15/30 (b) | | 1,410,000 | 1,267,531 |
Jacobs Entertainment, Inc. 6.75% 2/15/29 (b) | | 1,245,000 | 1,187,734 |
Light & Wonder International, Inc. 7.5% 9/1/31 (b) | | 1,075,000 | 1,131,986 |
Station Casinos LLC: | | | |
4.625% 12/1/31 (b) | | 3,685,000 | 3,420,830 |
6.625% 3/15/32 (b) | | 4,450,000 | 4,539,330 |
Studio City Finance Ltd. 6.5% 1/15/28 (b) | | 2,155,000 | 2,070,820 |
VICI Properties LP / VICI Note Co. 4.625% 6/15/25 (b) | | 5,180,000 | 5,134,208 |
| | | 38,799,707 |
Healthcare - 6.9% | | | |
1375209 BC Ltd. 9% 1/30/28 (b) | | 1,023,000 | 994,201 |
AHP Health Partners, Inc. 5.75% 7/15/29 (b) | | 2,665,000 | 2,577,199 |
Avantor Funding, Inc.: | | | |
3.875% 11/1/29 (b)(d) | | 2,290,000 | 2,139,918 |
4.625% 7/15/28 (b) | | 1,915,000 | 1,863,619 |
Centene Corp.: | | | |
3.375% 2/15/30 | | 2,690,000 | 2,463,113 |
4.625% 12/15/29 | | 1,825,000 | 1,775,528 |
Charles River Laboratories International, Inc.: | | | |
3.75% 3/15/29 (b) | | 740,000 | 693,421 |
4% 3/15/31 (b) | | 2,080,000 | 1,914,163 |
4.25% 5/1/28 (b) | | 735,000 | 708,697 |
CHS/Community Health Systems, Inc.: | | | |
4.75% 2/15/31 (b) | | 11,675,000 | 9,957,904 |
5.25% 5/15/30 (b) | | 4,900,000 | 4,393,509 |
6.125% 4/1/30 (b) | | 5,840,000 | 4,624,725 |
6.875% 4/15/29 (b) | | 2,815,000 | 2,422,394 |
10.875% 1/15/32 (b) | | 2,785,000 | 3,014,821 |
DaVita, Inc.: | | | |
3.75% 2/15/31 (b) | | 2,495,000 | 2,220,803 |
4.625% 6/1/30 (b) | | 2,580,000 | 2,432,680 |
6.875% 9/1/32 (b) | | 1,385,000 | 1,416,936 |
Encompass Health Corp. 5.75% 9/15/25 | | 2,662,000 | 2,656,919 |
Endo Finance Holdings, Inc. 8.5% 4/15/31 (b)(d) | | 2,040,000 | 2,166,032 |
HealthEquity, Inc. 4.5% 10/1/29 (b) | | 1,005,000 | 959,094 |
Hologic, Inc. 3.25% 2/15/29 (b)(d) | | 2,525,000 | 2,331,941 |
IQVIA, Inc. 6.5% 5/15/30 (b)(d) | | 1,875,000 | 1,945,268 |
Jazz Securities DAC 4.375% 1/15/29 (b) | | 1,980,000 | 1,884,308 |
Medline Borrower LP 3.875% 4/1/29 (b) | | 2,005,000 | 1,893,859 |
Medline Borrower LP / Medline Co. 6.25% 4/1/29 (b) | | 2,105,000 | 2,169,887 |
Molina Healthcare, Inc.: | | | |
3.875% 11/15/30 (b) | | 2,430,000 | 2,234,256 |
3.875% 5/15/32 (b) | | 3,315,000 | 2,974,315 |
Organon & Co. / Organon Foreign Debt Co-Issuer BV: | | | |
4.125% 4/30/28 (b) | | 3,005,000 | 2,872,835 |
5.125% 4/30/31 (b)(d) | | 2,995,000 | 2,804,948 |
Radiology Partners, Inc. 7.775% 1/31/29 pay-in-kind (b)(f) | | 2,079,874 | 1,999,279 |
Surgery Center Holdings, Inc. 7.25% 4/15/32 (b) | | 2,950,000 | 3,098,441 |
Tenet Healthcare Corp.: | | | |
4.375% 1/15/30 | | 6,565,000 | 6,276,498 |
6.125% 10/1/28 | | 7,085,000 | 7,098,036 |
6.125% 6/15/30 | | 3,680,000 | 3,737,496 |
6.875% 11/15/31 | | 330,000 | 359,135 |
| | | 95,076,178 |
Homebuilders/Real Estate - 2.1% | | | |
Arcosa, Inc. 4.375% 4/15/29 (b) | | 1,425,000 | 1,351,359 |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | | | |
4.625% 8/1/29 (b) | | 1,380,000 | 1,306,744 |
6.625% 1/15/28 (b) | | 40,000 | 40,293 |
Kennedy-Wilson, Inc.: | | | |
4.75% 3/1/29 (d) | | 2,190,000 | 1,976,824 |
5% 3/1/31 | | 2,190,000 | 1,905,043 |
MPT Operating Partnership LP/MPT Finance Corp. 3.5% 3/15/31 | | 700,000 | 478,137 |
Panther Escrow Issuer LLC 7.125% 6/1/31 (b) | | 2,220,000 | 2,312,379 |
Realogy Group LLC/Realogy Co-Issuer Corp. 5.75% 1/15/29 (b) | | 2,985,000 | 2,142,449 |
Realogy Group LLC/Realogy Co.-Issuer Corp. 5.25% 4/15/30 (b) | | 2,705,000 | 1,886,041 |
Starwood Property Trust, Inc. 4.75% 3/15/25 | | 2,420,000 | 2,404,119 |
Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.75% 1/15/28 (b) | | 2,945,000 | 2,969,511 |
TRI Pointe Homes, Inc. 5.7% 6/15/28 (d) | | 795,000 | 799,770 |
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC: | | | |
4.75% 4/15/28 (b) | | 2,035,000 | 1,789,289 |
6.5% 2/15/29 (b) | | 3,300,000 | 2,526,419 |
10.5% 2/15/28 (b) | | 4,250,000 | 4,360,738 |
Weekley Homes LLC/Weekley Finance Corp. 4.875% 9/15/28 (b) | | 1,185,000 | 1,149,146 |
| | | 29,398,261 |
Hotels - 1.2% | | | |
Carnival Holdings (Bermuda) Ltd. 10.375% 5/1/28 (b) | | 5,095,000 | 5,512,123 |
Hilton Domestic Operating Co., Inc.: | | | |
3.625% 2/15/32 (b) | | 1,470,000 | 1,317,610 |
3.75% 5/1/29 (b)(d) | | 1,650,000 | 1,552,084 |
5.375% 5/1/25 (b) | | 3,525,000 | 3,515,213 |
6.125% 4/1/32 (b) | | 1,250,000 | 1,281,584 |
Lindblad Expeditions LLC 6.75% 2/15/27 (b) | | 2,120,000 | 2,106,523 |
Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co.-Issuer 7% 2/1/30 (b) | | 925,000 | 948,149 |
| | | 16,233,286 |
Insurance - 1.9% | | | |
Acrisure LLC / Acrisure Finance, Inc.: | | | |
7.5% 11/6/30 (b) | | 2,105,000 | 2,160,576 |
8.5% 6/15/29 (b) | | 2,595,000 | 2,694,843 |
Alliant Holdings Intermediate LLC/Alliant Holdings Co.-Issuer: | | | |
5.875% 11/1/29 (b) | | 3,030,000 | 2,949,830 |
6.75% 10/15/27 (b) | | 9,895,000 | 9,846,765 |
AmWINS Group, Inc. 4.875% 6/30/29 (b) | | 1,400,000 | 1,334,573 |
AssuredPartners, Inc. 5.625% 1/15/29 (b) | | 1,445,000 | 1,380,935 |
HUB International Ltd. 7.25% 6/15/30 (b) | | 6,190,000 | 6,463,889 |
| | | 26,831,411 |
Leisure - 1.6% | | | |
Carnival Corp. 5.75% 3/1/27 (b) | | 5,135,000 | 5,152,007 |
NCL Corp. Ltd.: | | | |
5.875% 3/15/26 (b) | | 735,000 | 734,599 |
7.75% 2/15/29 (b) | | 2,575,000 | 2,748,004 |
NCL Finance Ltd. 6.125% 3/15/28 (b) | | 910,000 | 920,624 |
Royal Caribbean Cruises Ltd.: | | | |
4.25% 7/1/26 (b) | | 4,375,000 | 4,297,854 |
5.375% 7/15/27 (b) | | 1,975,000 | 1,978,375 |
6% 2/1/33 (b) | | 4,100,000 | 4,199,991 |
6.25% 3/15/32 (b) | | 1,805,000 | 1,864,056 |
Viking Cruises Ltd. 9.125% 7/15/31 (b) | | 895,000 | 981,866 |
| | | 22,877,376 |
Metals/Mining - 2.5% | | | |
Alcoa Nederland Holding BV: | | | |
4.125% 3/31/29 (b) | | 2,670,000 | 2,543,823 |
7.125% 3/15/31 (b) | | 555,000 | 583,656 |
Alpha Natural Resources, Inc. 9.75% (c)(e) | | 1,099,000 | 0 |
Arsenal AIC Parent LLC 8% 10/1/30 (b) | | 910,000 | 978,382 |
Cleveland-Cliffs, Inc. 7% 3/15/32 (b)(d) | | 5,175,000 | 5,197,023 |
ERO Copper Corp. 6.5% 2/15/30 (b) | | 8,865,000 | 8,638,854 |
First Quantum Minerals Ltd.: | | | |
6.875% 10/15/27 (b) | | 2,360,000 | 2,334,182 |
9.375% 3/1/29 (b) | | 1,600,000 | 1,702,406 |
FMG Resources August 2006 Pty Ltd.: | | | |
4.375% 4/1/31 (b) | | 1,615,000 | 1,481,724 |
5.875% 4/15/30 (b) | | 2,755,000 | 2,750,641 |
HudBay Minerals, Inc. 6.125% 4/1/29 (b) | | 4,755,000 | 4,799,207 |
Mineral Resources Ltd.: | | | |
8% 11/1/27 (b) | | 2,835,000 | 2,879,583 |
8.5% 5/1/30 (b) | | 680,000 | 707,139 |
| | | 34,596,620 |
Paper - 0.7% | | | |
Ahlstrom Holding 3 OY 4.875% 2/4/28 (b) | | 1,770,000 | 1,663,588 |
Berry Global, Inc. 5.625% 7/15/27 (b) | | 1,110,000 | 1,108,288 |
Clydesdale Acquisition Holdings, Inc.: | | | |
6.625% 4/15/29 (b) | | 1,070,000 | 1,068,531 |
8.75% 4/15/30 (b) | | 6,430,000 | 6,415,606 |
| | | 10,256,013 |
Railroad - 0.3% | | | |
Genesee & Wyoming, Inc. 6.25% 4/15/32 (b)(d) | | 4,225,000 | 4,318,242 |
Restaurants - 1.0% | | | |
1011778 BC Unlimited Liability Co./New Red Finance, Inc. 4% 10/15/30 (b) | | 7,635,000 | 6,993,517 |
CEC Entertainment LLC 6.75% 5/1/26 (b) | | 2,250,000 | 2,242,517 |
KFC Holding Co./Pizza Hut Holding LLC/Taco Bell of America LLC 4.75% 6/1/27 (b) | | 1,325,000 | 1,306,914 |
Papa John's International, Inc. 3.875% 9/15/29 (b)(d) | | 870,000 | 795,588 |
Yum! Brands, Inc. 4.625% 1/31/32 | | 2,585,000 | 2,449,981 |
| | | 13,788,517 |
Services - 5.6% | | | |
Allied Universal Holdco LLC 7.875% 2/15/31 (b)(g) | | 4,105,000 | 4,167,739 |
Allied Universal Holdco LLC / Allied Universal Finance Corp. 6% 6/1/29 (b) | | 1,050,000 | 934,585 |
Artera Services LLC 8.5% 2/15/31 (b) | | 2,765,000 | 2,768,144 |
ASGN, Inc. 4.625% 5/15/28 (b) | | 5,875,000 | 5,676,247 |
Atlas Luxco 4 SARL / Allied Universal Holdco LLC / Allied Universal Finance Corp. 4.625% 6/1/28 (b) | | 1,328,000 | 1,229,844 |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.375% 3/1/29 (b) | | 1,470,000 | 1,346,872 |
Brand Industrial Services, Inc. 10.375% 8/1/30 (b) | | 3,910,000 | 4,260,227 |
Camelot Finance SA 4.5% 11/1/26 (b) | | 2,285,000 | 2,234,279 |
CoreCivic, Inc. 8.25% 4/15/29 | | 2,225,000 | 2,347,190 |
CoreLogic, Inc. 4.5% 5/1/28 (b) | | 4,470,000 | 4,183,075 |
Garda World Security Corp. 8.25% 8/1/32 (b) | | 2,495,000 | 2,535,798 |
Hertz Corp.: | | | |
4.625% 12/1/26 (b) | | 1,680,000 | 1,318,701 |
5% 12/1/29 (b) | | 2,190,000 | 1,477,490 |
5.5% (b)(c)(e) | | 3,155,000 | 102,538 |
6% (b)(c)(e) | | 3,900,000 | 351,000 |
6.25% (c)(e) | | 2,880,000 | 93,600 |
7.125% (b)(c)(e) | | 3,980,000 | 358,200 |
OpenLane, Inc. 5.125% 6/1/25 (b) | | 96,000 | 95,652 |
Sabre GLBL, Inc. 8.625% 6/1/27 (b) | | 3,128,000 | 3,006,986 |
Service Corp. International 5.125% 6/1/29 (d) | | 1,845,000 | 1,823,235 |
Staples, Inc. 10.75% 9/1/29 (b) | | 1,400,000 | 1,318,667 |
The Brink's Co.: | | | |
6.5% 6/15/29 (b)(d) | | 2,605,000 | 2,695,498 |
6.75% 6/15/32 (b) | | 2,725,000 | 2,834,583 |
The GEO Group, Inc.: | | | |
8.625% 4/15/29 | | 1,310,000 | 1,358,958 |
10.25% 4/15/31 | | 1,920,000 | 2,028,446 |
Uber Technologies, Inc.: | | | |
4.5% 8/15/29 (b)(d) | | 17,310,000 | 16,976,517 |
6.25% 1/15/28 (b) | | 2,145,000 | 2,163,586 |
7.5% 9/15/27 (b) | | 2,765,000 | 2,820,197 |
United Rentals North America, Inc. 6.125% 3/15/34 (b) | | 3,705,000 | 3,784,580 |
WASH Multifamily Acquisition, Inc. 5.75% 4/15/26 (b) | | 1,640,000 | 1,632,467 |
| | | 77,924,901 |
Steel - 0.2% | | | |
Commercial Metals Co. 3.875% 2/15/31 | | 1,125,000 | 1,020,520 |
Vallourec SA 7.5% 4/15/32 (b) | | 1,300,000 | 1,368,931 |
| | | 2,389,451 |
Super Retail - 1.7% | | | |
Asbury Automotive Group, Inc.: | | | |
4.5% 3/1/28 | | 681,000 | 658,075 |
4.625% 11/15/29 (b)(d) | | 1,520,000 | 1,447,137 |
4.75% 3/1/30 | | 680,000 | 649,767 |
5% 2/15/32 (b) | | 1,520,000 | 1,431,616 |
Bath & Body Works, Inc. 6.625% 10/1/30 (b) | | 5,045,000 | 5,108,027 |
Carvana Co.: | | | |
12% 12/1/28 pay-in-kind (b)(f) | | 336,501 | 349,276 |
13% 6/1/30 pay-in-kind (b)(f) | | 508,760 | 543,129 |
14% 6/1/31 pay-in-kind (b)(f) | | 607,820 | 692,224 |
EG Global Finance PLC 12% 11/30/28 (b) | | 2,975,000 | 3,245,198 |
Group 1 Automotive, Inc. 6.375% 1/15/30 (b) | | 1,275,000 | 1,297,074 |
LBM Acquisition LLC 6.25% 1/15/29 (b) | | 2,455,000 | 2,219,230 |
Macy's Retail Holdings LLC 6.125% 3/15/32 (b) | | 1,065,000 | 1,018,718 |
Michaels Companies, Inc.: | | | |
5.25% 5/1/28 (b) | | 1,320,000 | 1,036,389 |
7.875% 5/1/29 (b) | | 1,235,000 | 722,994 |
Sally Holdings LLC 6.75% 3/1/32 (d) | | 3,070,000 | 3,131,621 |
| | | 23,550,475 |
Technology - 5.9% | | | |
Amentum Escrow Corp. 7.25% 8/1/32 (b) | | 1,585,000 | 1,657,273 |
Athenahealth Group, Inc. 6.5% 2/15/30 (b) | | 3,570,000 | 3,415,485 |
Block, Inc.: | | | |
2.75% 6/1/26 | | 2,555,000 | 2,453,791 |
3.5% 6/1/31 | | 2,555,000 | 2,306,331 |
6.5% 5/15/32 (b) | | 3,495,000 | 3,624,360 |
CA Magnum Holdings 5.375% 10/31/26 (b) | | 770,000 | 750,269 |
Cloud Software Group, Inc.: | | | |
8.25% 6/30/32 (b) | | 5,585,000 | 5,847,679 |
9% 9/30/29 (b) | | 6,530,000 | 6,572,197 |
Coherent Corp. 5% 12/15/29 (b) | | 1,385,000 | 1,339,273 |
Elastic NV 4.125% 7/15/29 (b) | | 1,275,000 | 1,187,909 |
Gen Digital, Inc. 5% 4/15/25 (b) | | 6,075,000 | 6,051,635 |
Go Daddy Operating Co. LLC / GD Finance Co., Inc. 5.25% 12/1/27 (b) | | 2,235,000 | 2,225,102 |
GrafTech Global Enterprises, Inc. 9.875% 12/15/28 (b) | | 1,850,000 | 1,484,418 |
Iliad Holding SAS 8.5% 4/15/31 (b) | | 2,155,000 | 2,283,582 |
Lightning Power LLC 7.25% 8/15/32 (b) | | 1,260,000 | 1,301,954 |
Match Group Holdings II LLC 4.125% 8/1/30 (b) | | 1,515,000 | 1,395,523 |
MicroStrategy, Inc. 6.125% 6/15/28 (b) | | 3,530,000 | 3,440,830 |
NCR Atleos Corp. 9.5% 4/1/29 (b) | | 3,180,000 | 3,502,846 |
NCR Voyix Corp. 5.125% 4/15/29 (b) | | 1,775,000 | 1,740,657 |
Open Text Corp. 3.875% 12/1/29 (b) | | 2,200,000 | 2,028,206 |
Open Text Holdings, Inc.: | | | |
4.125% 2/15/30 (b) | | 3,095,000 | 2,873,711 |
4.125% 12/1/31 (b)(d) | | 2,200,000 | 2,003,274 |
Roblox Corp. 3.875% 5/1/30 (b) | | 6,155,000 | 5,670,279 |
Seagate HDD Cayman: | | | |
8.25% 12/15/29 | | 1,545,000 | 1,674,656 |
8.5% 7/15/31 | | 1,410,000 | 1,533,247 |
Sensata Technologies BV 4% 4/15/29 (b) | | 2,480,000 | 2,335,013 |
Sensata Technologies, Inc. 6.625% 7/15/32 (b) | | 1,495,000 | 1,546,903 |
SS&C Technologies, Inc. 6.5% 6/1/32 (b) | | 4,900,000 | 5,057,772 |
Synaptics, Inc. 4% 6/15/29 (b)(d) | | 1,210,000 | 1,132,584 |
TTM Technologies, Inc. 4% 3/1/29 (b) | | 2,215,000 | 2,090,426 |
UKG, Inc. 6.875% 2/1/31 (b) | | 1,630,000 | 1,686,108 |
| | | 82,213,293 |
Telecommunications - 4.4% | | | |
Altice Financing SA 5.75% 8/15/29 (b) | | 5,455,000 | 4,202,012 |
Altice France Holding SA 10.5% 5/15/27 (b) | | 4,240,000 | 1,677,250 |
Altice France SA: | | | |
5.125% 1/15/29 (b) | | 2,270,000 | 1,575,969 |
5.5% 1/15/28 (b) | | 4,825,000 | 3,433,463 |
C&W Senior Finance Ltd. 6.875% 9/15/27 (b) | | 9,965,000 | 9,810,132 |
Consolidated Communications, Inc. 5% 10/1/28 (b) | | 1,320,000 | 1,152,321 |
Frontier Communications Holdings LLC: | | | |
5% 5/1/28 (b)(d) | | 2,480,000 | 2,408,216 |
5.875% 11/1/29 | | 615,475 | 566,166 |
6% 1/15/30 (b) | | 3,035,000 | 2,799,412 |
Intelsat Jackson Holdings SA 6.5% 3/15/30 (b) | | 4,985,000 | 4,786,588 |
LCPR Senior Secured Financing DAC: | | | |
5.125% 7/15/29 (b) | | 2,520,000 | 2,035,136 |
6.75% 10/15/27 (b) | | 4,724,000 | 4,319,114 |
Level 3 Financing, Inc.: | | | |
4% 4/15/31 (b) | | 3,850,000 | 2,579,468 |
4.5% 4/1/30 (b) | | 3,420,000 | 2,506,968 |
Lumen Technologies, Inc.: | | | |
4.125% 4/15/29 (b) | | 1,795,625 | 1,400,588 |
4.125% 4/15/30 (b) | | 1,795,625 | 1,339,851 |
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC 6% 1/15/30 (b) | | 4,860,000 | 3,560,338 |
Windstream Escrow LLC 7.75% 8/15/28 (b) | | 6,380,000 | 6,227,557 |
Zayo Group Holdings, Inc.: | | | |
4% 3/1/27 (b)(d) | | 3,835,000 | 3,347,318 |
6.125% 3/1/28 (b) | | 2,115,000 | 1,634,684 |
| | | 61,362,551 |
Textiles/Apparel - 0.3% | | | |
Crocs, Inc. 4.125% 8/15/31 (b) | | 3,760,000 | 3,379,569 |
Victoria's Secret & Co. 4.625% 7/15/29 (b)(d) | | 1,665,000 | 1,450,967 |
| | | 4,830,536 |
Transportation Ex Air/Rail - 0.3% | | | |
Avolon Holdings Funding Ltd. 4.375% 5/1/26 (b) | | 7,000 | 6,895 |
Seaspan Corp. 5.5% 8/1/29 (b) | | 3,695,000 | 3,519,456 |
| | | 3,526,351 |
Utilities - 3.6% | | | |
Clearway Energy Operating LLC 4.75% 3/15/28 (b) | | 2,940,000 | 2,856,224 |
DPL, Inc. 4.35% 4/15/29 | | 9,480,000 | 8,863,280 |
NRG Energy, Inc. 3.875% 2/15/32 (b) | | 132,000 | 118,325 |
Pacific Gas & Electric Co.: | | | |
3.75% 8/15/42 | | 350,000 | 266,734 |
3.95% 12/1/47 (d) | | 2,495,000 | 1,878,681 |
4.55% 7/1/30 | | 4,110,000 | 4,019,298 |
4.95% 7/1/50 | | 14,750,000 | 12,852,164 |
PG&E Corp. 5.25% 7/1/30 | | 9,430,000 | 9,232,757 |
Pike Corp. 5.5% 9/1/28 (b) | | 5,310,000 | 5,172,570 |
Vertiv Group Corp. 4.125% 11/15/28 (b) | | 3,055,000 | 2,932,647 |
Vistra Operations Co. LLC 5.625% 2/15/27 (b) | | 2,000,000 | 1,996,992 |
| | | 50,189,672 |
TOTAL NONCONVERTIBLE BONDS | | | 1,079,985,742 |
TOTAL CORPORATE BONDS (Cost $1,167,721,251) | | | 1,099,378,858 |
| | | |
Asset-Backed Securities - 0.8% |
| | Principal Amount (a) | Value ($) |
Ares Loan Funding Vii Ltd. Series 2024-ALF7 Class E, CME Term SOFR 3 Month Index + 6.250% 6.25% 10/22/37 (b)(f)(g)(h) | | 121,000 | 121,000 |
Croton Pk Clo Ltd. CME Term SOFR 3 Month Index + 0.550% 0% 10/15/36 (b)(f)(g)(h) | | 543,000 | 543,000 |
Golub Capital Partners Clo 74 Series 2024-74A Class D2, CME Term SOFR 3 Month Index + 4.500% 9.8149% 7/25/37 (b)(f)(h) | | 1,650,000 | 1,669,980 |
KKR CLO Ltd. / KKR CLO LLC Series 2024-29A Class D2R, CME Term SOFR 3 Month Index + 5.200% 10.5014% 7/15/37 (b)(f)(h) | | 2,000,000 | 2,015,610 |
Orchard Park Clo Ltd. Series 2024-1A Class E, CME Term SOFR 3 Month Index + 5.600% 0% 10/20/37 (b)(f)(h) | | 214,000 | 214,000 |
Palmer Square Ln Funding 2024-3 Series 2024-3A Class D, CME Term SOFR 3 Month Index + 5.400% 10.7366% 8/8/32 (b)(f)(h) | | 2,000,000 | 1,950,454 |
Sandstone Peak Iii Ltd. Series 2024-1A Class D2A, CME Term SOFR 3 Month Index + 5.250% 10.5861% 4/25/37 (b)(f)(h) | | 1,000,000 | 999,488 |
Sixth Street Clo Xxv Ltd. Series 2024-25A Class D2, CME Term SOFR 3 Month Index + 4.500% 9.8228% 7/24/37 (b)(f)(h) | | 1,350,000 | 1,330,275 |
Sycamore Tree Clo 2023-3 Ltd. / Series 2024-3A Class D2BR, 9.628% 4/20/37 (b) | | 2,000,000 | 2,034,238 |
TOTAL ASSET-BACKED SECURITIES (Cost $10,878,000) | | | 10,878,045 |
| | | |
Common Stocks - 3.4% |
| | Shares | Value ($) |
Automotive & Auto Parts - 0.0% | | | |
UC Holdings, Inc. (c)(i) | | 32,168 | 20,909 |
Broadcasting - 0.0% | | | |
iHeartMedia, Inc. (d)(i) | | 8,204 | 12,798 |
Energy - 2.3% | | | |
California Resources Corp. (d) | | 119,243 | 6,256,680 |
California Resources Corp. warrants 10/27/24 (i) | | 20,004 | 341,068 |
Chesapeake Energy Corp. | | 64,281 | 4,788,292 |
EP Energy Corp. (c)(i) | | 218,900 | 304,271 |
Forbes Energy Services Ltd. (c)(i) | | 72,087 | 7 |
Mesquite Energy, Inc. (c)(i) | | 214,437 | 17,296,464 |
Noble Corp. PLC: | | | |
warrants 2/4/28 (i) | | 27,051 | 510,993 |
warrants 2/4/28 (i) | | 27,051 | 413,610 |
PureWest Energy (c)(i) | | 2,832 | 637 |
Superior Energy Services, Inc. Class A (c) | | 15,005 | 1,023,641 |
Tidewater, Inc. warrants 11/14/42 (i) | | 8,251 | 805,234 |
Tribune Resources, Inc. (c) | | 182,155 | 107,471 |
TOTAL ENERGY | | | 31,848,368 |
Entertainment/Film - 0.1% | | | |
New Cotai LLC/New Cotai Capital Corp. (c)(i)(j) | | 1,330,466 | 784,975 |
Food & Drug Retail - 0.1% | | | |
Northeast Grocery, Inc. (c)(i)(j) | | 228,430 | 1,340,884 |
Southeastern Grocers, Inc. rights (c)(i) | | 687,397 | 444,299 |
TOTAL FOOD & DRUG RETAIL | | | 1,785,183 |
Gaming - 0.0% | | | |
Studio City International Holdings Ltd.: | | | |
ADR (b)(i) | | 25,434 | 146,246 |
(NYSE) ADR (i) | | 28,000 | 161,000 |
TOTAL GAMING | | | 307,246 |
Hotels - 0.0% | | | |
Travelport Finance Luxembourg SARL (c) | | 261 | 547,286 |
Telecommunications - 0.4% | | | |
CUI Acquisition Corp. (c)(i) | | 0 | 0 |
Frontier Communications Parent, Inc. (i) | | 77,463 | 2,230,934 |
Intelsat Emergence SA (c) | | 61,616 | 2,547,822 |
TOTAL TELECOMMUNICATIONS | | | 4,778,756 |
Utilities - 0.5% | | | |
PG&E Corp. | | 350,590 | 6,906,623 |
TOTAL COMMON STOCKS (Cost $28,915,014) | | | 46,992,144 |
| | | |
Bank Loan Obligations - 6.7% |
| | Principal Amount (a) | Value ($) |
Air Transportation - 1.3% | | | |
Echo Global Logistics, Inc.: | | | |
1LN, term loan CME Term SOFR 3 Month Index + 4.750% 10.0967% 11/23/28 (c)(f)(h)(k) | | 7,179,128 | 7,179,128 |
2LN, term loan: | | | |
CME Term SOFR 3 Month Index + 7.000% 12.3467% 11/23/29 (c)(f)(h)(k) | | 915,000 | 915,000 |
CME Term SOFR 3 Month Index + 8.000% 13.3467% 11/23/29 (c)(f)(h)(k) | | 9,743,000 | 9,743,000 |
TOTAL AIR TRANSPORTATION | | | 17,837,128 |
Banks & Thrifts - 0.0% | | | |
GTCR Everest Borrower, LLC 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 6/3/31 (h)(k)(l) | | 285,000 | 283,099 |
Broadcasting - 0.0% | | | |
Diamond Sports Group LLC term loan 10% 8/2/27 (k) | | 171,885 | 219,153 |
Building Materials - 0.3% | | | |
Hobbs & Associates LLC: | | | |
Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 8.4967% 7/23/31 (f)(h)(k) | | 2,513,636 | 2,513,636 |
Tranche DD 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7/23/31 (h)(k)(m) | | 251,364 | 251,364 |
Hunter Douglas, Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.500% 8.5713% 2/25/29 (f)(h)(k) | | 1,514,100 | 1,502,744 |
TOTAL BUILDING MATERIALS | | | 4,267,744 |
Chemicals - 0.3% | | | |
Consolidated Energy Finance SA Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 9.5572% 11/15/30 (f)(h)(k) | | 2,149,613 | 1,991,981 |
Discovery Purchaser Corp. 1LN, term loan CME Term SOFR 3 Month Index + 4.370% 9.6932% 10/4/29 (f)(h)(k) | | 2,817,314 | 2,814,300 |
TOTAL CHEMICALS | | | 4,806,281 |
Consumer Products - 0.2% | | | |
TKC Holdings, Inc. 1LN, term loan CME Term SOFR 3 Month Index + 5.500% 10.3416% 5/14/28 (f)(h)(k) | | 2,282,012 | 2,276,307 |
Diversified Financial Services - 0.7% | | | |
Cabazon Finance Authority term loan 13% 11/23/26 pay-in-kind (c)(f)(k) | | 3,619,407 | 2,490,152 |
Softbank SVF II Cayman LP 1LN, term loan 3 month U.S. LIBOR + 5.000% 6% 12/31/24 (c)(f)(h)(k) | | 7,699,634 | 7,690,394 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | 10,180,546 |
Diversified Media - 0.3% | | | |
CMG Media Corp. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.500% 8.9346% 12/17/26 (f)(h)(k) | | 4,896,573 | 4,216,390 |
Energy - 0.0% | | | |
Mesquite Energy, Inc.: | | | |
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% (c)(e)(h)(k) | | 3,964,252 | 0 |
term loan 0% (c)(e)(f)(k) | | 1,710,000 | 0 |
TOTAL ENERGY | | | 0 |
Food & Drug Retail - 0.1% | | | |
Northeast Grocery, Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 7.500% 12.5955% 12/13/28 (f)(h)(k) | | 731,031 | 735,600 |
Food/Beverage/Tobacco - 0.1% | | | |
Del Monte Foods Corp. Ii, Inc.: | | | |
1LN, term loan CME Term SOFR 1 Month Index + 8.000% 13.4426% 8/2/28 (f)(h)(k) | | 868,917 | 825,471 |
2LN, term loan CME Term SOFR 1 Month Index + 4.250% 9.6919% 8/2/28 (f)(h)(k) | | 1,852,013 | 1,111,208 |
Dm Escrow Corp. 1LN, term loan CME Term SOFR 1 Month Index + 8.000% 15.5% 9/3/24 (f)(h)(k) | | 103,735 | 98,549 |
TOTAL FOOD/BEVERAGE/TOBACCO | | | 2,035,228 |
Healthcare - 0.0% | | | |
Electron BidCo, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 8.3612% 11/1/28 (f)(h)(k) | | 283,475 | 283,988 |
Insurance - 0.6% | | | |
Acrisure LLC Tranche B6 1LN, term loan CME Term SOFR 3 Month Index + 3.250% 8.5936% 11/6/30 (f)(h)(k) | | 210,163 | 208,473 |
Asurion LLC 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 9.3467% 8/19/28 (f)(h)(k) | | 4,224,750 | 4,181,742 |
HUB International Ltd. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.000% 8.2554% 6/20/30 (f)(h)(k) | | 646,754 | 647,026 |
Truist Insurance Holdings LLC 2L, term loan CME Term SOFR 3 Month Index + 4.750% 10.0846% 3/8/32 (f)(h)(k) | | 2,460,000 | 2,496,457 |
USI, Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 2.750% 8.0846% 11/23/29 (f)(h)(k) | | 429,391 | 429,232 |
TOTAL INSURANCE | | | 7,962,930 |
Services - 1.7% | | | |
Ascend Learning LLC 2LN, term loan CME Term SOFR 1 Month Index + 5.750% 11.0967% 12/10/29 (f)(h)(k) | | 305,000 | 292,038 |
CoreLogic, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 8.8612% 6/2/28 (f)(h)(k) | | 5,716,823 | 5,638,216 |
Finastra U.S.A., Inc. term loan CME Term SOFR 1 Month Index + 7.250% 12.4592% 9/13/29 (c)(f)(h)(k) | | 6,197,344 | 6,197,344 |
Neptune BidCo U.S., Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 5.000% 10.404% 4/11/29 (f)(h)(k) | | 5,465,813 | 5,223,294 |
PG Investment Co. 59 Sarl Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.500% 8.8346% 3/24/31 (f)(h)(k) | | 305,000 | 305,763 |
Spin Holdco, Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 4.000% 9.6001% 3/4/28 (f)(h)(k) | | 6,916,345 | 5,854,686 |
STS Operating, Inc. 1LN, term loan CME Term SOFR 3 Month Index + 4.000% 9.3467% 3/25/31 (f)(h)(k) | | 643,388 | 639,096 |
TOTAL SERVICES | | | 24,150,437 |
Super Retail - 0.2% | | | |
Great Outdoors Group LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 9.1112% 3/5/28 (f)(h)(k) | | 2,583,124 | 2,582,039 |
Technology - 0.8% | | | |
Applied Systems, Inc.: | | | |
Tranche 2LN, term loan CME Term SOFR 3 Month Index + 5.250% 10.5846% 2/23/32 (f)(h)(k) | | 25,000 | 25,875 |
Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.500% 8.2856% 2/24/31 (f)(h)(k) | | 135,000 | 135,506 |
Athenahealth Group, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 8.4967% 2/15/29 (f)(h)(k) | | 2,786,965 | 2,763,081 |
Cotiviti, Inc.: | | | |
Tranche 1LN, term loan 7.625% 5/1/31 (k) | | 2,220,000 | 2,214,450 |
Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 8.4506% 5/1/31 (f)(h)(k) | | 558,600 | 558,365 |
DH Corp./Societe term loan CME Term SOFR 3 Month Index + 7.250% 12.4592% 9/13/29 (c)(f)(h)(k) | | 144,736 | 144,736 |
UKG, Inc. Tranche B 1LN, term loan CME Term SOFR 3 Month Index + 3.500% 8.5546% 2/10/31 (f)(h)(k) | | 4,738,702 | 4,748,795 |
TOTAL TECHNOLOGY | | | 10,590,808 |
Telecommunications - 0.1% | | | |
Altice France SA Tranche B14 1LN, term loan CME Term SOFR 3 Month Index + 5.500% 10.8014% 8/15/28 (f)(h)(k) | | 1,040,084 | 788,301 |
Crown Subsea Communications Holding, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 9.2521% 1/30/31 (f)(h)(k) | | 425,000 | 427,478 |
TOTAL TELECOMMUNICATIONS | | | 1,215,779 |
TOTAL BANK LOAN OBLIGATIONS (Cost $97,888,255) | | | 93,643,457 |
| | | |
Preferred Securities - 0.8% |
| | Principal Amount (a) | Value ($) |
Banks & Thrifts - 0.5% | | | |
Bank of America Corp.: | | | |
6.1% (f)(n) | | 3,690,000 | 3,787,210 |
6.25% (f)(n) | | 2,310,000 | 2,377,535 |
TOTAL BANKS & THRIFTS | | | 6,164,745 |
Diversified Financial Services - 0.3% | | | |
Charles Schwab Corp. 5.375% (f)(n) | | 4,340,000 | 4,363,241 |
TOTAL PREFERRED SECURITIES (Cost $10,176,516) | | | 10,527,986 |
| | | |
Other - 2.0% |
| | Shares | Value ($) |
Other - 2.0% | | | |
Fidelity Private Credit Co. LLC (j)(o) (Cost $28,477,900) | | 2,857,415 | 28,374,118 |
| | | |
Money Market Funds - 8.2% |
| | Shares | Value ($) |
Fidelity Cash Central Fund 5.39% (p) | | 79,908,308 | 79,924,290 |
Fidelity Securities Lending Cash Central Fund 5.39% (p)(q) | | 33,677,613 | 33,680,980 |
TOTAL MONEY MARKET FUNDS (Cost $113,605,270) | | | 113,605,270 |
| | | |
TOTAL INVESTMENT IN SECURITIES - 101.1% (Cost $1,457,662,206) | 1,403,399,878 |
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (15,862,763) |
NET ASSETS - 100.0% | 1,387,537,115 |
| |
Legend
(a) | Amount is stated in United States dollars unless otherwise noted. |
(b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $938,474,104 or 67.6% of net assets. |
(d) | Security or a portion of the security is on loan at period end. |
(e) | Non-income producing - Security is in default. |
(f) | Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(g) | Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) | Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors. |
(j) | Restricted securities (including private placements) - 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 $30,499,977 or 2.2% of net assets. |
(k) | Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. |
(l) | The coupon rate will be determined upon settlement of the loan after period end. |
(m) | Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $251,364 and $251,364, respectively. |
(n) | Security is perpetual in nature with no stated maturity date. |
(p) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(q) | Investment made with cash collateral received from securities on loan. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost ($) |
Fidelity Private Credit Co. LLC | 4/15/22 - 8/05/24 | 28,477,899 |
| | |
New Cotai LLC/New Cotai Capital Corp. | 9/11/20 | 6,590,796 |
| | |
Northeast Grocery, Inc. | 11/08/21 | 90,888 |
| | |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
Fidelity Cash Central Fund 5.39% | 21,545,624 | 562,024,907 | 503,646,312 | 2,044,371 | 71 | - | 79,924,290 | 0.2% |
Fidelity Securities Lending Cash Central Fund 5.39% | 7,268,450 | 72,511,272 | 46,098,742 | 20,168 | - | - | 33,680,980 | 0.1% |
Total | 28,814,074 | 634,536,179 | 549,745,054 | 2,064,539 | 71 | - | 113,605,270 | |
| | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur. If an Underlying Funds changes its name, the name presented below is the name in effect at period end.
Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) |
Fidelity Private Credit Co. LLC | 24,227,898 | 4,521,708 | - | 3,678,706 | - | (375,488) | 28,374,118 |
| 24,227,898 | 4,521,708 | - | 3,678,706 | - | (375,488) | 28,374,118 |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: |
Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
Equities: | | | | |
Communication Services | 4,791,554 | 2,243,732 | - | 2,547,822 |
Consumer Discretionary | 1,660,416 | 307,246 | - | 1,353,170 |
Consumer Staples | 1,785,183 | - | - | 1,785,183 |
Energy | 31,847,731 | 12,310,643 | 805,234 | 18,731,854 |
Utilities | 6,907,260 | 6,906,623 | - | 637 |
|
Corporate Bonds | 1,099,378,858 | - | 1,095,396,935 | 3,981,923 |
|
Asset-Backed Securities | 10,878,045 | - | 10,878,045 | - |
|
Bank Loan Obligations | 93,643,457 | - | 59,283,703 | 34,359,754 |
|
Preferred Securities | 10,527,986 | - | 10,527,986 | - |
|
Other | 28,374,118 | - | 28,374,118 | - |
|
Money Market Funds | 113,605,270 | 113,605,270 | - | - |
Total Investments in Securities: | 1,403,399,878 | 135,373,514 | 1,205,266,021 | 62,760,343 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| |
Investments in Securities: | |
Consumer Staples | | | |
Beginning Balance | $ | 19,269,568 | |
Net Realized Gain (Loss) on Investment Securities | | 12,665,595 | |
Net Unrealized Gain (Loss) on Investment Securities | | (12,855,721) | |
Cost of Purchases | | 1,934,193 | |
Proceeds of Sales | | (19,228,452) | |
Amortization/Accretion | | - | |
Transfers into Level 3 | | - | |
Transfers out of Level 3 | | - | |
Ending Balance | $ | 1,785,183 | |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2024 | $ | 445,442 | |
Energy | | | |
Beginning Balance | $ | 18,880,918 | |
Net Realized Gain (Loss) on Investment Securities | | 1,203,950 | |
Net Unrealized Gain (Loss) on Investment Securities | | (149,064) | |
Cost of Purchases | | - | |
Proceeds of Sales | | (1,203,950) | |
Amortization/Accretion | | - | |
Transfers into Level 3 | | - | |
Transfers out of Level 3 | | - | |
Ending Balance | $ | 18,731,854 | |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2024 | $ | (149,064) | |
Bank Loan Obligations | | | |
Beginning Balance | $ | 47,744,518 | |
Net Realized Gain (Loss) on Investment Securities | | 350,252 | |
Net Unrealized Gain (Loss) on Investment Securities | | (33,940) | |
Cost of Purchases | | 7,498,033 | |
Proceeds of Sales | | (21,331,060) | |
Amortization/Accretion | | 131,951 | |
Transfers into Level 3 | | - | |
Transfers out of Level 3 | | - | |
Ending Balance | $ | 34,359,754 | |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2024 | $ | (64,126) | |
Other Investments in Securities | | | |
Beginning Balance | $ | 23,104,332 | |
Net Realized Gain (Loss) on Investment Securities | | 2,213,428 | |
Net Unrealized Gain (Loss) on Investment Securities | | (705,115) | |
Cost of Purchases | | 783,644 | |
Proceeds of Sales | | (17,596,171) | |
Amortization/Accretion | | 83,434 | |
Transfers into Level 3 | | - | |
Transfers out of Level 3 | | - | |
Ending Balance | $ | 7,883,552 | |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2024 | $ | (909,701) | |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions, corporate actions or exchanges. 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. | |
Financial Statements
Statement of Assets and Liabilities |
As of August 31, 2024 |
Assets | | | | |
Investment in securities, at value (including securities loaned of $32,374,231) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $1,315,579,036) | $ | 1,261,420,490 | | |
Fidelity Central Funds (cost $113,605,270) | | 113,605,270 | | |
Other affiliated issuers (cost $28,477,900) | | 28,374,118 | | |
| | | | |
| | | | |
Total Investment in Securities (cost $1,457,662,206) | | | $ | 1,403,399,878 |
Cash | | | | 241,926 |
Receivable for investments sold | | | | 17,556 |
Receivable for fund shares sold | | | | 7,888 |
Dividends receivable | | | | 83,168 |
Interest receivable | | | | 19,976,174 |
Distributions receivable from Fidelity Central Funds | | | | 304,202 |
Receivable from investment adviser for expense reductions | | | | 17,791 |
Other receivables | | | | 2,946 |
Total assets | | | | 1,424,051,529 |
Liabilities | | | | |
Payable for investments purchased | | | | |
Regular delivery | $ | 536,353 | | |
Delayed delivery | | 2,258,000 | | |
Payable for fund shares redeemed | | 38,617 | | |
Other payables and accrued expenses | | 463 | | |
Collateral on securities loaned | | 33,680,981 | | |
Total liabilities | | | | 36,514,414 |
Commitments and contingent liabilities (see Significant Accounting Policies and Litigation notes) | | | | |
Net Assets | | | $ | 1,387,537,115 |
Net Assets consist of: | | | | |
Paid in capital | | | $ | 1,444,197,776 |
Total accumulated earnings (loss) | | | | (56,660,661) |
Net Assets | | | $ | 1,387,537,115 |
Net Asset Value, offering price and redemption price per share ($1,387,537,115 ÷ 13,018,336 shares) | | | $ | 106.58 |
Statement of Operations |
Year ended August 31, 2024 |
Investment Income | | | | |
Dividends (including $3,678,706 earned from affiliated issuers) | | | $ | 5,525,359 |
Interest | | | | 88,202,446 |
Income from Fidelity Central Funds (including $20,168 from security lending) | | | | 2,039,331 |
Payment from investment adviser | | | | 172,433 |
Total income | | | | 95,939,569 |
Expenses | | | | |
Custodian fees and expenses | $ | 1,559 | | |
Independent trustees' fees and expenses | | 6,533 | | |
Legal | | 9,058 | | |
Miscellaneous | | 6 | | |
Total expenses before reductions | | 17,156 | | |
Expense reductions | | (2,263) | | |
Total expenses after reductions | | | | 14,893 |
Net Investment income (loss) | | | | 95,924,676 |
Realized and Unrealized Gain (Loss) | | | | |
Net realized gain (loss) on: | | | | |
Investment Securities: | | | | |
Unaffiliated issuers | | 6,091,559 | | |
Fidelity Central Funds | | 71 | | |
Capital gain distributions from Fidelity Central Funds | | 25,208 | | |
Total net realized gain (loss) | | | | 6,116,838 |
Change in net unrealized appreciation (depreciation) on: | | | | |
Investment Securities: | | | | |
Unaffiliated issuers | | 53,074,959 | | |
Affiliated issuers | | (375,488) | | |
Total change in net unrealized appreciation (depreciation) | | | | 52,699,471 |
Net gain (loss) | | | | 58,816,309 |
Net increase (decrease) in net assets resulting from operations | | | $ | 154,740,985 |
Statement of Changes in Net Assets |
|
| | Year ended August 31, 2024 | | Year ended August 31, 2023 |
Increase (Decrease) in Net Assets | | | | |
Operations | | | | |
Net investment income (loss) | $ | 95,924,676 | $ | 128,559,222 |
Net realized gain (loss) | | 6,116,838 | | (8,490,959) |
Change in net unrealized appreciation (depreciation) | | 52,699,471 | | (4,256,760) |
Net increase (decrease) in net assets resulting from operations | | 154,740,985 | | 115,811,503 |
Distributions to shareholders | | (102,769,717) | | (125,001,026) |
| | | | |
Affiliated share transactions | | | | |
Proceeds from sales of shares | | 117,837,487 | | 25,859,041 |
Reinvestment of distributions | | 102,769,381 | | 125,000,555 |
Cost of shares redeemed | | (355,597,698) | | (551,310,147) |
| | | | |
Net increase (decrease) in net assets resulting from share transactions | | (134,990,830) | | (400,450,551) |
Total increase (decrease) in net assets | | (83,019,562) | | (409,640,074) |
| | | | |
Net Assets | | | | |
Beginning of period | | 1,470,556,677 | | 1,880,196,751 |
End of period | $ | 1,387,537,115 | $ | 1,470,556,677 |
| | | | |
Other Information | | | | |
Shares | | | | |
Sold | | 1,096,239 | | 250,913 |
Issued in reinvestment of distributions | | 992,495 | | 1,224,422 |
Redeemed | | (3,423,697) | | (5,375,537) |
Net increase (decrease) | | (1,334,963) | | (3,900,202) |
| | | | |
Financial Highlights
Fidelity® High Income Central Fund |
|
Years ended August 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
Net asset value, beginning of period | $ | 102.45 | $ | 103.00 | $ | 115.51 | $ | 106.08 | $ | 111.37 |
Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | 7.286 | | 7.647 | | 6.198 | | 6.202 | | 6.432 |
Net realized and unrealized gain (loss) | | 4.648 | | (.838) | | (12.709) | | 9.246 | | (5.023) |
Total from investment operations | | 11.934 | | 6.809 | | (6.511) | | 15.448 | | 1.409 |
Distributions from net investment income | | (7.804) | | (7.276) | | (5.999) | | (6.018) | | (6.685) |
Distributions from net realized gain | | - | | (.083) | | - | | - | | (.014) |
Total distributions | | (7.804) | | (7.359) | | (5.999) | | (6.018) | | (6.699) |
Net asset value, end of period | $ | 106.58 | $ | 102.45 | $ | 103.00 | $ | 115.51 | $ | 106.08 |
Total Return C | | | | 6.88% | | (5.81)% | | 14.97% | | 1.45% |
Ratios to Average Net Assets B,D,E | | | | | | | | | | |
Expenses before reductions | | -% F | | .03% | | .04% | | -% F | | -% F |
Expenses net of fee waivers, if any | | | | .03% | | .04% | | -% F | | -% F |
Expenses net of all reductions | | -% F | | .03% | | .04% | | -% F | | -% F |
Net investment income (loss) | | 7.04% | | 7.49% | | 5.63% | | 5.62% | | 6.06% |
Supplemental Data | | | | | | | | | | |
Net assets, end of period (000 omitted) | $ | 1,387,537 | $ | 1,470,557 | $ | 1,880,197 | $ | 2,434,406 | $ | 2,689,635 |
Portfolio turnover rate G | | | | 14% | | 23% | | 37% | | 59% H |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
DFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report. For additional expense information related to investments in Fidelity Private Credit Company LLC, please refer to the Investment in Fidelity Private Credit Company LLC note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
EExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
FAmount represents less than .005%.
GAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
HPortfolio turnover rate excludes securities received or delivered in-kind.
Notes to Financial Statements
For the period ended August 31, 2024
1. Organization.
Fidelity High Income Central Fund (the Fund) is a fund of Fidelity Central Investment Portfolios LLC (the LLC) and is authorized to issue an unlimited number of shares. Shares of the Fund are only offered to other investment companies and accounts managed by Fidelity Management & Research Company LLC (FMR), or its affiliates (the Investing Funds). The LLC is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware Limited Liability Company.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense RatioA |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Investment in Fidelity Private Credit Company LLC.
The Fund invests in Fidelity Private Credit Company LLC, which is a limited liability company. Fidelity Private Credit Company LLC's units are not registered under the Securities Act of 1933 and are subject to substantial restrictions on transfer. The Fund has no redemption rights under Fidelity Private Credit Company LLC's limited liability company agreement. There will be no trading market for the units.
Based on its investment objective, Fidelity Private Credit Company LLC may invest or participate in various investments or strategies that are similar to those in which the Fund may invest or participate. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of Fidelity Private Credit Company LLC and thus a decline in the value of the Fund. Fidelity Private Credit Company LLC intends to invest primarily in directly originated loans to private companies but also with liquid credit investments, like broadly syndicated loans, and other select private credit investments.
The Schedule of Investments lists Fidelity Private Credit Company LLC as an investment as of period end, but does not include the underlying holdings of Fidelity Private Credit Company LLC. Fidelity Private Credit Company LLC represented less than 5% of the Fund's net assets at period end. The Fund indirectly bears its proportionate share of the expenses of Fidelity Private Credit Company LLC. The annualized expense ratio for Fidelity Private Credit Company LLC for the six month period ended June 30, 2024 was 11.47%.
4. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
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 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities, are valued by pricing services 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 are valued by pricing services 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 services. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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.
Fidelity Private Credit Company LLC is valued at its net asset value (NAV) each month end and is categorized as Level 2 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker and valuations using NAV as a practical expedient.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in InputA |
Equities | $24,418,666 | Recovery value | Recovery value | $0.22 - $0.65 / $0.65 | Increase |
| | Market approach | Transaction price | $0.00 | Increase |
| | Market comparable | Enterprise value/Revenue multiple (EV/R) | 0.3 | Increase |
| | | Enterprise value/EBITDA multiple (EV/EBITDA) | 4.0 - 11.8 / 5.5 | Increase |
| | Discounted cash flow | Discount rate | 11.0% - 11.7% / 11.0% | Decrease |
| | Black scholes | Discount rate | 3.8% | Increase |
| | | Volatility | 55.0% | Increase |
| | | Term | 2.5 | Increase |
| | Indicative market price | Bid price | $1.00 | Increase |
Corporate Bonds | $3,981,923 | Recovery value | Recovery value | $0.00 | Increase |
| | Black scholes | Discount rate | 3.8% | Increase |
| | | Volatility | 55.0% | Increase |
| | | Term | 2.5 | Increase |
| | Indicative market price | Evaluated bid | $3.25 - $9.00 / $7.75 | Increase |
Bank Loan Obligation | $34,359,754 | Recovery value | Recovery value | $0.00 | Increase |
| | Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 5.8 | Increase |
| | Discounted cash flow | Yield | 6.1% - 11.2% / 8.9% | Decrease |
| | | | | |
A Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 August 31, 2024, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The investment adviser has contractually agreed to reimburse the Fund with respect to the portion of the Fund's assets invested in Fidelity Private Credit Company LLC until December 31, 2025 as presented in the Statement of Operations in payment from investment adviser.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2024, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the underlying mutual funds or exchange-traded funds (ETFs), partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $54,919,556 |
Gross unrealized depreciation | (107,536,099) |
Net unrealized appreciation (depreciation) | $(52,616,543) |
Tax Cost | $1,456,016,421 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $895,088 |
Capital loss carryforward | $(4,939,207) |
Net unrealized appreciation (depreciation) on securities and other investments | $(52,616,543) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term | $- |
Long-term | (4,939,207) |
Total capital loss carryforward | $(4,939,207) |
The tax character of distributions paid was as follows:
| August 31, 2024 | August 31, 2023 |
Ordinary Income | $102,769,717 | $ 125,001,027 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Loans and Other Direct Debt Instruments. Direct debt instruments 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 a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
Commitments. A commitment is an agreement to acquire an investment at a future date (subject to conditions) in connection with a potential public or non-public offering. The amount of commitments outstanding at period end are presented in the table below. These commitments are not included in the net assets of the Fund at period end.
| Investment to be Acquired | Commitment Amount ($) |
Fidelity High Income Central Fund | Fidelity Private Credit Company LLC | 4,621,001 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity High Income Central Fund | 310,752,250 | 507,551,548 |
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. Fidelity Management & Research Company LLC (the investment adviser) provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's expense contract, the investment adviser also pays all other expenses of the Fund, excluding custody fees, the compensation of the independent Directors, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount ($) |
Fidelity High Income Central Fund | 29 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
Sub-Advisory Arrangements. Effective March 1, 2024, the Fund's sub-advisory agreements with FMR Investment Management (UK) Limited, Fidelity Management & Research (Hong Kong) Limited, and Fidelity Management & Research (Japan) Limited were amended to provide that the investment adviser pays each sub-adviser monthly fees equal to 110% of the sub-adviser's costs for providing sub-advisory services.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
| Total Security Lending Fees Paid to NFS ($) | Security Lending Income From Securities Loaned to NFS ($) | Value of Securities Loaned to NFS at Period End ($) |
Fidelity High Income Central Fund | 2,133 | - | - |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $2,263.
9. Other.
A fund's organizational documents provide former and current directors 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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.
10. Litigation.
The Fund and other entities managed by FMR or its affiliates are involved with proceedings arising out of disputes in the United States Bankruptcy Court for the Southern District of Texas ("Bankruptcy Court"), relating to the In re Sanchez Energy Corporation chapter 11 bankruptcy case (Case No. 19-34508). A Bankruptcy Court-appointed representative of unsecured creditors asserted that eight million shares of Mesquite Energy, Inc. (formerly known as Sanchez Energy Corporation) (the "Company"), held in escrow pursuant to the terms of the Company's confirmed chapter 11 plan, should be awarded to the unsecured creditors instead of the Company's current equity holders, including the Fund, which were providers of debtor-in-possession financing to the Company during its chapter 11 case and holders of secured notes issued by the Company in 2018. The unsecured creditors also asserted that certain additional equity issued by the Company in 2020 in connection with two post-bankruptcy financings, also held by the Fund, is invalid. During August 2023, the Bankruptcy Court issued an opinion awarding a portion of the eight million shares to the unsecured creditors, diluting the value of the Fund's holdings in Mesquite. The Fund will appeal this decision. At this time, Management cannot determine any additional loss or dilution that may be realized. The Fund is also incurring legal costs in defending the disputes and has recovered a portion of these legal costs through an insurance claim.
11. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Central Investment Portfolios LLC and the Shareholders of Fidelity High Income Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity High Income Central Fund (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of August 31, 2024, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2024, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2024, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
October 16, 2024
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Distributions
(Unaudited)
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
A total of 0.41% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $82,651,717 of distributions paid in the calendar year 2023 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund designates $102,769,717 of distributions paid during the fiscal year ended 2024 as qualifying to be taxed as section 163(j) interest dividends.
The fund will notify shareholders in January 2025 of amounts for use in preparing 2024 income tax returns.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies
(Unaudited)
Note: This is not applicable for any fund included in this document.
Item 9: Proxy Disclosures for Open-End Management Investment Companies
(Unaudited)
A special meeting of shareholders was held on July 16, 2024. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting. |
Proposal 1 |
To elect a Board of Trustees. |
| # of Votes | % of Votes |
Bettina Doulton |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Robert A. Lawrence |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Vijay C. Advani |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Thomas P. Bostick |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Donald F. Donahue |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Vicki L. Fuller |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Patricia L. Kampling |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Thomas A. Kennedy |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Oscar Munoz |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Karen B. Peetz |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
David M. Thomas |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Susan Tomasky |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
Michael E. Wiley |
Affirmative | 31,231,071,082.58 | 100.00 |
TOTAL | 31,231,071,082.58 | 100.00 |
| | |
Proposal 1 reflects trust-wide proposal and voting results. |
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies
(Unaudited)
Note: This information is disclosed as part of the financial statements for each Fund as part of Item 7: Financial Statements and Financial Highlights for Open-End Management Investment companies.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract
(Unaudited)
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity High Income Central Fund
Each year, the Board of Directors, including the Independent Directors (together, the Board), considers the renewal of the fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Directors' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Directors), requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its May 2024 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Directors' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of the fund's investment program. The Independent Directors also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted the resources devoted to expansion of Fidelity's global investment organization, and that Fidelity's analysts have extensive resources, tools, and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties, and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted by Fidelity to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, and the use of "soft" commission dollars to pay for research services. The Board also considered the fund's securities lending activities and any payments made to Fidelity relating to securities lending under a separate agreement.
Investment Performance. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance and noted that the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer a liquid investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered that while the fund does not pay a management fee, FMR receives fees for providing services to funds that invest in the fund. The Board also noted that FMR bears all expenses of the fund with certain limited exceptions (i.e., custody fees, interest, taxes, fees and expenses of the Independent Directors, proxy and shareholder meeting expenses, and extraordinary expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable. Based on its review, the Board concluded that the management fee received for providing services to the fund and the fund's total expense ratio were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds, as well as the profitability of the funds that invest in the fund.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.
Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contract.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including but not limited to: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) the operation of performance fees and the rationale for implementing performance fees on certain categories of funds but not others; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; (vii) the variable management fee implemented for certain funds effective March 1, 2024; and (viii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Directors, concluded that the advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances, and that the fund's Advisory Contracts should be renewed through May 31, 2025.
1.861961.116
HICII-ANN-1024
Item 8.
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
See Item 7.
Item 9.
Proxy Disclosures for Open-End Management Investment Companies
See Item 7.
Item 10.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
See Item 7.
Item 11.
Statement Regarding Basis for Approval of Investment Advisory Contract
See Item 7.
Item 12.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 13.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 14.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 15.
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 trust’s Board of Trustees.
Item 16.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s 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 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 17.
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 18.
Recovery of Erroneously Awarded Compensation
(a)
Not applicable.
(b)
Not applicable.
Item 19.
Exhibits
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 Central Investment Portfolios LLC
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By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer (Principal Executive Officer) |
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Date: | October 23, 2024 |
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.
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By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer (Principal Executive Officer) |
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Date: | October 23, 2024 |
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By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer (Principal Financial Officer) |
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Date: | October 23, 2024 |