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)
William C. Coffey, 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: | September 30 |
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Date of reporting period: | September 30, 2018 |
Item 1.
Reports to Stockholders
Fidelity® High Income Central Fund 1 Annual Report September 30, 2018 |
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Contents
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All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® High Income Central Fund 1 | 2.69% | 5.54% | 8.52% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® High Income Central Fund 1 on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the ICE® BofAML® US High Yield Constrained Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422704786_740.jpg)
Period Ending Values | ||
$22,661 | Fidelity® High Income Central Fund 1 | |
$24,554 | ICE® BofAML® US High Yield Constrained Index |
BofA Merrill Lynch benchmark indices were re-branded as ICE BofAML benchmark indices.
Management's Discussion of Fund Performance
Market Recap: U.S. corporate high-yield bonds gained 2.94% for the year ending September 30, 2018, as measured by the ICE BofAML® US High Yield Constrained Index. On the heels of a solid 2017, high yield began the new year on a high note, driven by optimism for U.S. tax reform, passed in December 2017, which also helped equity markets reach record levels. The uptrend reversed course in early February, though, amid broad market volatility and a backup in U.S. Treasury yields. The asset class took another leg down in March, losing ground largely due to a policy rate hike by the U.S. Federal Reserve and an escalating trade dispute with China. The market stabilized and turned in a strong result in April, but volatility persisted and the index experienced a two-week slump to conclude the first half of 2018. Strong corporate earnings helped high yield make a solid advance in the third quarter of 2018. For the full 12 months, lower-quality bonds rose 8%, topping credits rated B (+3%) and BB (+1%). By industry, energy was among the best performers, with the market heavyweight gaining 6% amid higher oil prices. Other standouts included food & drug retail (+10%) and transportation ex air/rail (+6%), while aerospace (+7%) was lifted by potential for increased spending on U.S. defense and infrastructure. Two defensive categories also outperformed: health care was up 5% and utilities gained roughly 4%. Notable laggards included automotive & auto parts (-2%), banks & thrifts (-1%), and super retail (-1%).Comments from Co-Portfolio Managers Matthew Conti and Michael Weaver: For the fiscal year, the fund gained 2.69%, modestly lagging the benchmark ICE BofAML® US High Yield Constrained Index. The low-yielding environment the past 12 months created some challenges from a quality standpoint, given that we take a fairly conservative approach toward credit risk. This backdrop hampered bonds rated BB, which are the most sensitive to interest rates, whereas lower-rated CCC bonds gained 8%. The B credit tier finished between the two, gaining 3%. Given our mandate to maintain a portfolio that is neutral or more conservative than its benchmark, we concentrated the fund in the BB and B credit tiers and underweighted lower-quality securities rated CCC. This positioning detracted from performance versus the benchmark, outweighing positive security selection. By industry, the fund's result was hampered most by our picks in the health care industry. Positioning in telecommunications also detracted, as did our choices in chemicals and cable/satellite TV. Conversely, our holdings in utilities and banks & thrifts helped the fund's relative result. We also benefited from an overweighting in the outperforming energy industry, which represented about 17% of fund assets, on average, this period. Within energy, it hurt to hold a small non-benchmark equity position in Forbes Energy. In April 2017, the company announced its plan to reorganize under Chapter 11, which weighed heavily on its debt. As part of the bankruptcy filing, the fund received stock and new loans, which returned -51% for the fund the past 12 months. Conversely, the largest individual contributor versus the benchmark was oil and gas exploration and production company Noble, as our holdings gained about 23%, rising alongside oil prices.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On April 2, 2018, Mike Weaver became Co-Portfolio Manager of the fund, joining Co-Portfolio Manager Matt Conti. The two will manage the fund together until December 31, 2018, at which point Matt plans to retire and Mike will become sole Portfolio Manager.Investment Summary (Unaudited)
Top Five Holdings as of September 30, 2018
(by issuer, excluding cash equivalents) | % of fund's net assets |
CCO Holdings LLC/CCO Holdings Capital Corp. | 3.3 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 2.6 |
Ally Financial, Inc. | 1.9 |
Community Health Systems, Inc. | 1.8 |
Sprint Corp. | 1.7 |
11.3 |
Top Five Market Sectors as of September 30, 2018
% of fund's net assets | |
Energy | 17.9 |
Healthcare | 9.1 |
Cable/Satellite TV | 9.0 |
Telecommunications | 8.2 |
Utilities | 6.1 |
Quality Diversification (% of fund's net assets)
As of September 30, 2018 * | ||
BBB | 0.6% | |
BB | 43.8% | |
B | 34.9% | |
CCC,CC,C | 15.0% | |
Not Rated | 0.6% | |
Equities | 0.1% | |
Short-Term Investments and Net Other Assets | 5.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of September 30, 2018* | ||
Nonconvertible Bonds | 89.4% | |
Convertible Bonds, Preferred Stocks | 0.4% | |
Common Stocks | 0.1% | |
Bank Loan Obligations | 1.5% | |
Other Investments | 3.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.0% |
* Foreign investments - 23.8%
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Corporate Bonds - 89.8% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.4% | |||
Broadcasting - 0.4% | |||
DISH Network Corp.: | |||
2.375% 3/15/24 | $750,000 | $664,751 | |
3.375% 8/15/26 | 770,000 | 734,400 | |
1,399,151 | |||
Nonconvertible Bonds - 89.4% | |||
Aerospace - 2.4% | |||
BBA U.S. Holdings, Inc. 5.375% 5/1/26 (a) | 1,905,000 | 1,912,144 | |
Bombardier, Inc.: | |||
6.125% 1/15/23 (a) | 3,365,000 | 3,379,722 | |
7.5% 12/1/24 (a) | 1,350,000 | 1,424,250 | |
BWX Technologies, Inc. 5.375% 7/15/26 (a) | 1,280,000 | 1,284,800 | |
TransDigm, Inc.: | |||
6% 7/15/22 | 1,900,000 | 1,930,875 | |
6.375% 6/15/26 | 130,000 | 131,300 | |
10,063,091 | |||
Air Transportation - 0.2% | |||
Aercap Global Aviation Trust 6.5% 6/15/45 (a)(b) | 810,000 | 842,400 | |
Banks & Thrifts - 1.9% | |||
Ally Financial, Inc.: | |||
4.625% 3/30/25 | 660,000 | 655,050 | |
5.75% 11/20/25 | 4,085,000 | 4,217,763 | |
8% 11/1/31 | 2,385,000 | 2,888,831 | |
7,761,644 | |||
Broadcasting - 1.3% | |||
Sirius XM Radio, Inc.: | |||
3.875% 8/1/22 (a) | 1,330,000 | 1,309,132 | |
5% 8/1/27 (a) | 2,065,000 | 1,986,964 | |
5.375% 4/15/25 (a) | 585,000 | 587,194 | |
6% 7/15/24 (a) | 1,300,000 | 1,349,010 | |
5,232,300 | |||
Cable/Satellite TV - 9.0% | |||
Altice SA: | |||
7.625% 2/15/25 (a) | 570,000 | 519,498 | |
7.75% 5/15/22 (a) | 6,015,000 | 5,842,040 | |
Altice U.S. Finance SA: | |||
5.375% 7/15/23 (a) | 2,125,000 | 2,148,906 | |
5.5% 5/15/26 (a) | 1,000,000 | 997,000 | |
7.75% 7/15/25 (a) | 1,200,000 | 1,278,000 | |
Cablevision Systems Corp. 5.875% 9/15/22 | 805,000 | 820,597 | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4% 3/1/23 (a) | 3,805,000 | 3,642,527 | |
5% 2/1/28 (a) | 3,635,000 | 3,416,537 | |
5.125% 5/1/27 (a) | 2,910,000 | 2,759,000 | |
5.5% 5/1/26 (a) | 2,485,000 | 2,457,044 | |
5.75% 2/15/26 (a) | 1,370,000 | 1,375,138 | |
Cequel Communications Holdings I LLC/Cequel Capital Corp. 7.5% 4/1/28 (a) | 935,000 | 979,413 | |
CSC Holdings LLC 5.5% 4/15/27 (a) | 925,000 | 899,914 | |
DISH DBS Corp.: | |||
5.875% 11/15/24 | 3,260,000 | 2,921,775 | |
7.75% 7/1/26 | 870,000 | 824,325 | |
Virgin Media Secured Finance PLC 5.5% 8/15/26 (a) | 2,140,000 | 2,118,600 | |
Ziggo Bond Finance BV 5.875% 1/15/25 (a) | 2,090,000 | 1,961,988 | |
Ziggo Secured Finance BV 5.5% 1/15/27 (a) | 2,220,000 | 2,082,915 | |
37,045,217 | |||
Capital Goods - 0.7% | |||
AECOM: | |||
5.125% 3/15/27 | 1,390,000 | 1,355,389 | |
5.875% 10/15/24 | 1,455,000 | 1,541,049 | |
2,896,438 | |||
Chemicals - 3.9% | |||
CF Industries Holdings, Inc.: | |||
3.45% 6/1/23 | 600,000 | 578,250 | |
4.5% 12/1/26 (a) | 420,000 | 416,986 | |
NOVA Chemicals Corp.: | |||
4.875% 6/1/24 (a) | 1,110,000 | 1,068,653 | |
5.25% 6/1/27 (a) | 840,000 | 782,250 | |
OCI NV 6.625% 4/15/23 (a) | 1,960,000 | 2,028,600 | |
Olin Corp.: | |||
5% 2/1/30 | 435,000 | 406,725 | |
5.125% 9/15/27 | 1,725,000 | 1,660,313 | |
Platform Specialty Products Corp. 5.875% 12/1/25 (a) | 2,010,000 | 1,983,408 | |
The Chemours Co. LLC 5.375% 5/15/27 | 1,045,000 | 1,008,425 | |
TPC Group, Inc. 8.75% 12/15/20 (a) | 2,800,000 | 2,793,000 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 5.375% 9/1/25 (a) | 1,175,000 | 1,132,759 | |
Tronox Finance PLC 5.75% 10/1/25 (a) | 235,000 | 217,963 | |
Tronox, Inc. 6.5% 4/15/26 (a) | 1,305,000 | 1,257,694 | |
Valvoline, Inc. 4.375% 8/15/25 | 970,000 | 902,100 | |
16,237,126 | |||
Consumer Products - 0.3% | |||
Coty, Inc. 6.5% 4/15/26 (a) | 900,000 | 838,688 | |
Prestige Brands, Inc. 6.375% 3/1/24 (a) | 370,000 | 374,163 | |
1,212,851 | |||
Containers - 1.9% | |||
Ard Securities Finance Sarl 8.75% 1/31/23 pay-in-kind (a)(b) | 799,956 | 799,956 | |
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.625% 5/15/23 (a) | 945,000 | 935,550 | |
6% 2/15/25 (a) | 2,350,000 | 2,300,063 | |
Crown Americas LLC / Crown Americas Capital Corp. IV 4.75% 2/1/26 (a) | 955,000 | 914,413 | |
Crown Americas LLC/Crown Americas Capital Corp. V 4.25% 9/30/26 | 1,930,000 | 1,765,950 | |
OI European Group BV 4% 3/15/23 (a) | 1,380,000 | 1,311,000 | |
8,026,932 | |||
Diversified Financial Services - 5.8% | |||
Aircastle Ltd. 4.125% 5/1/24 | 385,000 | 378,679 | |
Chobani LLC/Finance Corp., Inc. 7.5% 4/15/25 (a) | 760,000 | 690,650 | |
Financial & Risk U.S. Holdings, Inc. 6.25% 5/15/26 (a)(c) | 800,000 | 799,500 | |
FLY Leasing Ltd. 5.25% 10/15/24 | 2,045,000 | 1,965,756 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
5.875% 2/1/22 | 4,745,000 | 4,804,313 | |
6.25% 2/1/22 | 4,515,000 | 4,627,875 | |
6.375% 12/15/25 | 1,030,000 | 1,033,863 | |
MSCI, Inc. 4.75% 8/1/26 (a) | 2,985,000 | 2,962,613 | |
Navient Corp.: | |||
6.5% 6/15/22 | 580,000 | 593,816 | |
7.25% 9/25/23 | 505,000 | 535,300 | |
Quicken Loans, Inc. 5.25% 1/15/28 (a) | 1,710,000 | 1,588,163 | |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | |||
6.625% 2/15/25 (a) | 640,000 | 598,400 | |
6.875% 2/15/23 (a) | 185,000 | 178,063 | |
SLM Corp.: | |||
5.5% 1/25/23 | 800,000 | 798,000 | |
6.125% 3/25/24 | 275,000 | 275,000 | |
7.25% 1/25/22 | 580,000 | 611,900 | |
Tempo Acquisition LLC 6.75% 6/1/25 (a) | 1,385,000 | 1,346,913 | |
23,788,804 | |||
Diversified Media - 1.2% | |||
E.W. Scripps Co. 5.125% 5/15/25 (a) | 785,000 | 754,581 | |
MDC Partners, Inc. 6.5% 5/1/24 (a) | 2,715,000 | 2,402,775 | |
Nielsen Co. S.a.r.l. (Luxembourg): | |||
5% 2/1/25 (a) | 775,000 | 759,500 | |
5.5% 10/1/21 (a) | 175,000 | 176,006 | |
Nielsen Finance LLC/Nielsen Finance Co. 5% 4/15/22 (a) | 875,000 | 853,991 | |
4,946,853 | |||
Energy - 17.0% | |||
Antero Resources Corp. 5.125% 12/1/22 | 1,700,000 | 1,721,250 | |
California Resources Corp. 8% 12/15/22 (a) | 2,080,000 | 1,983,800 | |
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 | 390,000 | 391,463 | |
5.875% 3/31/25 | 1,615,000 | 1,695,750 | |
7% 6/30/24 | 2,100,000 | 2,299,500 | |
Cheniere Energy Partners LP: | |||
5.25% 10/1/25 | 2,470,000 | 2,470,000 | |
5.625% 10/1/26 (a) | 470,000 | 473,384 | |
Chesapeake Energy Corp.: | |||
4.875% 4/15/22 | 2,630,000 | 2,554,388 | |
5.75% 3/15/23 | 1,715,000 | 1,669,981 | |
8% 12/15/22 (a) | 1,057,000 | 1,107,208 | |
8% 1/15/25 | 560,000 | 577,920 | |
8% 6/15/27 | 1,010,000 | 1,029,695 | |
Citgo Petroleum Corp. 6.25% 8/15/22 (a) | 1,365,000 | 1,361,588 | |
Comstock Escrow Corp. 9.75% 8/15/26 (a) | 1,530,000 | 1,526,634 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 6.0841% 6/15/22 (a)(b)(d) | 3,330,000 | 3,331,201 | |
6.5% 5/15/26 (a) | 840,000 | 848,400 | |
6.875% 6/15/25 (a) | 945,000 | 981,619 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 5.75% 4/1/25 | 1,045,000 | 1,067,206 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 1,150,000 | 1,168,688 | |
Denbury Resources, Inc.: | |||
4.625% 7/15/23 | 50,000 | 43,969 | |
5.5% 5/1/22 | 535,000 | 492,200 | |
6.375% 8/15/21 | 165,000 | 160,875 | |
9% 5/15/21 (a) | 355,000 | 383,844 | |
9.25% 3/31/22 (a) | 2,795,000 | 3,018,600 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (a) | 220,000 | 220,000 | |
5.75% 1/30/28 (a) | 220,000 | 220,000 | |
Ensco PLC: | |||
5.2% 3/15/25 | 1,900,000 | 1,653,000 | |
7.75% 2/1/26 | 575,000 | 570,688 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 8% 11/29/24 (a) | 815,000 | 821,113 | |
Exterran Partners LP/EXLP Finance Corp. 6% 4/1/21 | 1,020,000 | 1,025,100 | |
Hess Infrastructure Partners LP 5.625% 2/15/26 (a) | 1,910,000 | 1,929,100 | |
Hilcorp Energy I LP/Hilcorp Finance Co.: | |||
5% 12/1/24 (a) | 4,040,000 | 3,942,030 | |
5.75% 10/1/25 (a) | 1,635,000 | 1,641,131 | |
Indigo Natural Resources LLC 6.875% 2/15/26 (a) | 1,220,000 | 1,180,350 | |
Jonah Energy LLC 7.25% 10/15/25 (a) | 695,000 | 531,675 | |
Magnolia Oil & Gas Operating LLC 6% 8/1/26 (a) | 935,000 | 932,663 | |
Nabors Industries, Inc.: | |||
5.5% 1/15/23 | 880,000 | 864,291 | |
5.75% 2/1/25 | 625,000 | 598,987 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (a) | 1,090,000 | 1,068,200 | |
4.5% 9/15/27 (a) | 235,000 | 225,013 | |
Noble Holding International Ltd.: | |||
7.75% 1/15/24 | 1,524,000 | 1,512,570 | |
7.95% 4/1/25 (b) | 865,000 | 844,456 | |
Parsley Energy LLC/Parsley: | |||
5.25% 8/15/25 (a) | 200,000 | 199,000 | |
5.375% 1/15/25 (a) | 1,270,000 | 1,273,175 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 780,000 | 796,575 | |
Rose Rock Midstream LP/Rose Rock Finance Corp. 5.625% 11/15/23 | 1,545,000 | 1,498,650 | |
SemGroup Corp.: | |||
6.375% 3/15/25 | 1,330,000 | 1,306,725 | |
7.25% 3/15/26 | 870,000 | 867,825 | |
Southwestern Energy Co. 4.1% 3/15/22 | 730,000 | 727,263 | |
Summit Midstream Holdings LLC 5.75% 4/15/25 | 1,095,000 | 1,053,938 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.25% 11/15/23 | 765,000 | 746,831 | |
5% 1/15/28 (a) | 1,315,000 | 1,278,180 | |
5.125% 2/1/25 | 1,730,000 | 1,738,650 | |
5.25% 5/1/23 | 380,000 | 384,275 | |
5.875% 4/15/26 (a) | 1,130,000 | 1,165,313 | |
TerraForm Power Operating LLC 5% 1/31/28 (a) | 265,000 | 246,450 | |
U.S.A. Compression Partners LP 6.875% 4/1/26 (a) | 1,135,000 | 1,171,888 | |
Weatherford International Ltd.: | |||
5.95% 4/15/42 | 250,000 | 178,750 | |
6.5% 8/1/36 | 840,000 | 632,100 | |
7% 3/15/38 | 305,000 | 236,375 | |
9.875% 2/15/24 | 550,000 | 537,625 | |
Weatherford International, Inc. 9.875% 3/1/25 (a) | 1,800,000 | 1,737,000 | |
69,916,118 | |||
Entertainment/Film - 0.6% | |||
New Cotai LLC/New Cotai Capital Corp. 10.625% 5/1/19 pay-in-kind (a)(b) | 2,651,776 | 2,598,740 | |
Environmental - 0.4% | |||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (a) | 1,375,000 | 1,364,688 | |
Tervita Escrow Corp. 7.625% 12/1/21 (a) | 180,000 | 185,625 | |
1,550,313 | |||
Food/Beverage/Tobacco - 2.2% | |||
C&S Group Enterprises LLC 5.375% 7/15/22 (a) | 1,205,000 | 1,192,950 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc. 5.875% 7/15/24 (a) | 3,350,000 | 3,299,750 | |
Post Holdings, Inc.: | |||
5% 8/15/26 (a) | 395,000 | 373,492 | |
5.625% 1/15/28 (a) | 825,000 | 794,063 | |
5.75% 3/1/27 (a) | 710,000 | 697,575 | |
Vector Group Ltd. 6.125% 2/1/25 (a) | 3,040,000 | 2,812,000 | |
9,169,830 | |||
Gaming - 4.5% | |||
CRC Escrow Issuer LLC/CRC Finance LLC 5.25% 10/15/25 (a) | 2,710,000 | 2,581,275 | |
Delta Merger Sub, Inc. 6% 9/15/26 (a) | 190,000 | 192,375 | |
Eldorado Resorts, Inc. 6% 4/1/25 | 810,000 | 820,125 | |
GLP Capital LP/GLP Financing II, Inc. 5.25% 6/1/25 | 1,010,000 | 1,025,968 | |
MCE Finance Ltd. 4.875% 6/6/25 (a) | 1,195,000 | 1,130,617 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 9/1/26 | 4,310,000 | 4,072,950 | |
4.5% 1/15/28 | 955,000 | 873,921 | |
Scientific Games Corp.: | |||
5% 10/15/25 (a) | 820,000 | 779,000 | |
6.625% 5/15/21 | 2,475,000 | 2,462,625 | |
Stars Group Holdings BV 7% 7/15/26 (a) | 1,535,000 | 1,583,644 | |
Station Casinos LLC 5% 10/1/25 (a) | 1,085,000 | 1,039,213 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (a) | 1,485,000 | 1,379,194 | |
Wynn Macau Ltd.: | |||
4.875% 10/1/24 (a) | 450,000 | 423,563 | |
5.5% 10/1/27 (a) | 390,000 | 366,409 | |
18,730,879 | |||
Healthcare - 9.1% | |||
Catalent Pharma Solutions 4.875% 1/15/26 (a) | 655,000 | 630,438 | |
Community Health Systems, Inc.: | |||
5.125% 8/1/21 | 1,000,000 | 972,500 | |
6.25% 3/31/23 | 5,730,000 | 5,450,663 | |
8.625% 1/15/24 (a) | 1,105,000 | 1,145,056 | |
HCA Holdings, Inc.: | |||
4.5% 2/15/27 | 2,350,000 | 2,308,875 | |
5% 3/15/24 | 2,450,000 | 2,511,250 | |
Hologic, Inc.: | |||
4.375% 10/15/25 (a) | 960,000 | 914,400 | |
4.625% 2/1/28 (a) | 180,000 | 168,750 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5% 10/15/27 | 565,000 | 544,519 | |
5.25% 8/1/26 | 1,860,000 | 1,850,700 | |
5.5% 5/1/24 | 660,000 | 666,270 | |
Ortho-Clinical Diagnostics, Inc. 6.625% 5/15/22 (a) | 500,000 | 488,500 | |
Sabra Health Care LP/Sabra Capital Corp.: | |||
5.375% 6/1/23 | 390,000 | 390,975 | |
5.5% 2/1/21 | 730,000 | 742,775 | |
Service Corp. International 4.625% 12/15/27 | 1,035,000 | 991,013 | |
Teleflex, Inc.: | |||
4.625% 11/15/27 | 515,000 | 490,332 | |
4.875% 6/1/26 | 2,200,000 | 2,178,000 | |
Tenet Healthcare Corp.: | |||
4.375% 10/1/21 | 1,125,000 | 1,120,129 | |
4.625% 7/15/24 | 740,000 | 719,280 | |
5.125% 5/1/25 | 430,000 | 423,550 | |
6.75% 6/15/23 | 920,000 | 916,550 | |
8.125% 4/1/22 | 3,590,000 | 3,783,142 | |
THC Escrow Corp. III 7% 8/1/25 | 1,050,000 | 1,037,663 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.625% 12/1/21 (a) | 2,790,000 | 2,779,538 | |
5.875% 5/15/23 (a) | 620,000 | 601,865 | |
7% 3/15/24 (a) | 2,300,000 | 2,429,950 | |
Wellcare Health Plans, Inc.: | |||
5.25% 4/1/25 | 855,000 | 868,894 | |
5.375% 8/15/26 (a) | 260,000 | 264,550 | |
37,390,127 | |||
Homebuilders/Real Estate - 0.5% | |||
Howard Hughes Corp. 5.375% 3/15/25 (a) | 1,555,000 | 1,539,450 | |
Starwood Property Trust, Inc. 4.75% 3/15/25 | 490,000 | 469,229 | |
2,008,679 | |||
Hotels - 0.2% | |||
Wyndham Hotels & Resorts, Inc. 5.375% 4/15/26 (a) | 995,000 | 986,294 | |
Insurance - 0.3% | |||
AmWINS Group, Inc. 7.75% 7/1/26 (a) | 1,210,000 | 1,258,400 | |
Leisure - 0.6% | |||
Mattel, Inc. 6.75% 12/31/25 (a) | 1,060,000 | 1,038,800 | |
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (a) | 460,000 | 463,450 | |
7.25% 11/30/21 (a) | 1,040,000 | 1,076,400 | |
2,578,650 | |||
Metals/Mining - 1.6% | |||
Constellium NV 5.875% 2/15/26 (a) | 795,000 | 778,106 | |
First Quantum Minerals Ltd.: | |||
7% 2/15/21 (a) | 1,150,000 | 1,137,063 | |
7.25% 5/15/22 (a) | 655,000 | 641,081 | |
7.25% 4/1/23 (a) | 1,075,000 | 1,023,938 | |
7.5% 4/1/25 (a) | 1,010,000 | 958,238 | |
FMG Resources (August 2006) Pty Ltd. 5.125% 5/15/24 (a) | 525,000 | 509,644 | |
Freeport-McMoRan, Inc. 3.875% 3/15/23 | 625,000 | 604,638 | |
Nufarm Australia Ltd. 5.75% 4/30/26 (a) | 920,000 | 868,250 | |
6,520,958 | |||
Publishing/Printing - 0.3% | |||
Multi-Color Corp. 4.875% 11/1/25 (a) | 1,185,000 | 1,107,975 | |
Restaurants - 1.2% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4.25% 5/15/24 (a) | 920,000 | 873,200 | |
5% 10/15/25 (a) | 1,340,000 | 1,283,063 | |
Golden Nugget, Inc. 6.75% 10/15/24 (a) | 2,565,000 | 2,601,885 | |
4,758,148 | |||
Services - 3.0% | |||
APX Group, Inc.: | |||
7.625% 9/1/23 | 720,000 | 665,100 | |
8.75% 12/1/20 | 2,636,000 | 2,636,000 | |
Aramark Services, Inc. 4.75% 6/1/26 | 2,750,000 | 2,695,000 | |
Avantor, Inc. 6% 10/1/24 (a) | 740,000 | 751,100 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (a) | 1,005,000 | 1,033,019 | |
CDK Global, Inc.: | |||
4.875% 6/1/27 | 460,000 | 448,500 | |
5.875% 6/15/26 | 755,000 | 779,824 | |
Frontdoor, Inc. 6.75% 8/15/26 (a) | 350,000 | 360,500 | |
IHS Markit Ltd. 4.75% 2/15/25 (a) | 695,000 | 705,098 | |
Laureate Education, Inc. 8.25% 5/1/25 (a) | 1,445,000 | 1,547,349 | |
Prime Security One MS, Inc. 4.875% 7/15/32 (a) | 1,075,000 | 870,213 | |
12,491,703 | |||
Steel - 0.2% | |||
Commercial Metals Co. 5.375% 7/15/27 | 825,000 | 775,500 | |
Super Retail - 0.3% | |||
Netflix, Inc. 4.375% 11/15/26 | 1,145,000 | 1,072,980 | |
Technology - 3.8% | |||
Ensemble S Merger Sub, Inc. 9% 9/30/23 (a) | 350,000 | 364,875 | |
Fair Isaac Corp. 5.25% 5/15/26 (a) | 1,805,000 | 1,820,794 | |
Gartner, Inc. 5.125% 4/1/25 (a) | 905,000 | 909,860 | |
Micron Technology, Inc. 5.5% 2/1/25 | 555,000 | 573,937 | |
Nuance Communications, Inc. 5.625% 12/15/26 | 1,035,000 | 1,040,113 | |
Open Text Corp. 5.875% 6/1/26 (a) | 2,920,000 | 3,005,775 | |
Qorvo, Inc. 5.5% 7/15/26 (a) | 840,000 | 852,709 | |
Sensata Technologies BV 5% 10/1/25 (a) | 1,910,000 | 1,907,555 | |
Solera LLC/Solera Finance, Inc. 10.5% 3/1/24 (a) | 1,545,000 | 1,693,011 | |
Symantec Corp. 5% 4/15/25 (a) | 1,825,000 | 1,808,568 | |
TTM Technologies, Inc. 5.625% 10/1/25 (a) | 1,545,000 | 1,548,863 | |
15,526,060 | |||
Telecommunications - 7.8% | |||
Equinix, Inc. 5.375% 4/1/23 | 366,000 | 374,693 | |
Frontier Communications Corp. 11% 9/15/25 | 1,640,000 | 1,278,724 | |
Intelsat Jackson Holdings SA: | |||
8% 2/15/24 (a) | 1,555,000 | 1,636,638 | |
8.5% 10/15/24 (a) | 1,410,000 | 1,425,510 | |
9.5% 9/30/22 (a) | 700,000 | 813,750 | |
Level 3 Communications, Inc. 5.75% 12/1/22 | 955,000 | 965,935 | |
Level 3 Financing, Inc.: | |||
5.125% 5/1/23 | 1,200,000 | 1,209,000 | |
5.375% 1/15/24 | 1,340,000 | 1,342,332 | |
5.375% 5/1/25 | 550,000 | 550,000 | |
Neptune Finco Corp. 6.625% 10/15/25 (a) | 2,000,000 | 2,107,500 | |
Qwest Corp. 6.75% 12/1/21 | 500,000 | 533,623 | |
SFR Group SA: | |||
6.25% 5/15/24 (a) | 1,045,000 | 1,029,325 | |
8.125% 2/1/27 (a) | 1,150,000 | 1,184,500 | |
Sprint Communications, Inc. 6% 11/15/22 | 2,375,000 | 2,422,500 | |
Sprint Corp.: | |||
7.25% 9/15/21 | 1,320,000 | 1,394,250 | |
7.625% 3/1/26 | 780,000 | 825,435 | |
7.875% 9/15/23 | 4,470,000 | 4,815,799 | |
T-Mobile U.S.A., Inc. 6.375% 3/1/25 | 2,200,000 | 2,291,960 | |
Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (a) | 2,400,000 | 2,256,000 | |
U.S. West Communications 7.25% 9/15/25 | 545,000 | 585,233 | |
Wind Tre SpA 5% 1/20/26 (a) | 1,760,000 | 1,530,408 | |
Zayo Group LLC/Zayo Capital, Inc. 6.375% 5/15/25 | 1,725,000 | 1,792,310 | |
32,365,425 | |||
Transportation Ex Air/Rail - 1.1% | |||
Avolon Holdings Funding Ltd. 5.125% 10/1/23 (a) | 1,265,000 | 1,276,069 | |
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (a) | 2,640,000 | 2,180,640 | |
Navios Maritime Holdings, Inc.: | |||
7.375% 1/15/22 (a) | 475,000 | 374,063 | |
11.25% 8/15/22 (a) | 815,000 | 741,650 | |
4,572,422 | |||
Utilities - 6.1% | |||
Clearway Energy Operating LLC 5.75% 10/15/25 (a)(c) | 680,000 | 686,375 | |
Dolphin Subsidiary II, Inc. 7.25% 10/15/21 | 3,270,000 | 3,535,688 | |
DPL, Inc. 6.75% 10/1/19 | 688,000 | 705,200 | |
Dynegy, Inc. 7.625% 11/1/24 | 1,200,000 | 1,291,500 | |
Global Partners LP/GLP Finance Corp.: | |||
6.25% 7/15/22 | 1,785,000 | 1,768,292 | |
7% 6/15/23 | 4,980,000 | 5,042,250 | |
InterGen NV 7% 6/30/23 (a) | 920,000 | 910,800 | |
NRG Yield Operating LLC 5% 9/15/26 | 970,000 | 928,775 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (a) | 4,563,304 | 5,002,522 | |
The AES Corp. 4.875% 5/15/23 | 3,975,000 | 4,009,781 | |
Vistra Operations Co. LLC 5.5% 9/1/26 (a) | 1,370,000 | 1,385,413 | |
25,266,596 | |||
TOTAL NONCONVERTIBLE BONDS | 368,699,453 | ||
TOTAL CORPORATE BONDS | |||
(Cost $369,655,670) | 370,098,604 | ||
Shares | Value | ||
Common Stocks - 0.1% | |||
Energy - 0.1% | |||
Forbes Energy Services Ltd. (e)(f) | 76,687 | 440,950 | |
Telecommunications - 0.0% | |||
CUI Acquisition Corp. Class E (e)(f) | 0 | 16,065 | |
TOTAL COMMON STOCKS | |||
(Cost $4,254,449) | 457,015 | ||
Principal Amount | Value | ||
Bank Loan Obligations - 1.5% | |||
Energy - 0.1% | |||
California Resources Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.9622% 12/31/22 (b)(d) | 450,000 | 456,561 | |
Gaming - 0.5% | |||
Golden Entertainment, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5.25% 10/20/24 (b)(d) | 1,280,325 | 1,283,526 | |
3 month U.S. LIBOR + 7.000% 9.25% 10/20/25 (b)(d) | 430,000 | 434,838 | |
Scientific Games Corp. Tranche B 5LN, term loan 3 month U.S. LIBOR + 2.750% 5.0342% 8/14/24 (b)(d) | 431,967 | 431,159 | |
TOTAL GAMING | 2,149,523 | ||
Publishing/Printing - 0.4% | |||
Springer Science+Business Media Deutschland GmbH Tranche B 13LN, term loan 3 month U.S. LIBOR + 3.500% 5.8861% 8/24/22 (b)(d) | 1,706,798 | 1,712,892 | |
Services - 0.1% | |||
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.6361% 6/13/25 (b)(d) | 65,000 | 64,310 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.8861% 6/13/24 (b)(d) | 287,019 | 287,105 | |
TOTAL SERVICES | 351,415 | ||
Telecommunications - 0.4% | |||
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 2/1/24 (b)(d) | 1,659,725 | 1,656,439 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $6,268,320) | 6,326,830 | ||
Preferred Securities - 3.6% | |||
Banks & Thrifts - 2.9% | |||
Bank of America Corp.: | |||
6.1% (b)(g) | 2,010,000 | 2,112,729 | |
6.25% (b)(g) | 2,310,000 | 2,447,419 | |
Barclays Bank PLC 7.625% 11/21/22 | 2,215,000 | 2,462,100 | |
BNP Paribas SA 7% (a)(b)(g) | 210,000 | 213,255 | |
Citigroup, Inc.: | |||
5.875% (b)(g) | 2,735,000 | 2,808,569 | |
5.95% (b)(g) | 760,000 | 783,730 | |
Royal Bank of Scotland Group PLC 7.5% (b)(g) | 995,000 | 1,018,839 | |
TOTAL BANKS & THRIFTS | 11,846,641 | ||
Energy - 0.7% | |||
Andeavor Logistics LP 6.875% (b)(g) | 1,270,000 | 1,284,542 | |
Energy Transfer Partners LP 6.25% (b)(g) | 1,566,000 | 1,519,775 | |
TOTAL ENERGY | 2,804,317 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $14,081,540) | 14,650,958 | ||
Shares | Value | ||
Money Market Funds - 3.8% | |||
Fidelity Cash Central Fund, 2.11% (h) | |||
(Cost $15,771,125) | 15,767,972 | 15,771,125 | |
TOTAL INVESTMENT IN SECURITIES - 98.8% | |||
(Cost $410,031,104) | 407,304,532 | ||
NET OTHER ASSETS (LIABILITIES) - 1.2% | 5,049,037 | ||
NET ASSETS - 100% | $412,353,569 |
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $207,915,160 or 50.4% of net assets.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(d) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(e) Non-income producing
(f) Level 3 security
(g) Security is perpetual in nature with no stated maturity date.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $208,371 |
Total | $208,371 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Energy | $440,950 | $-- | $-- | $440,950 |
Telecommunication Services | 16,065 | -- | -- | 16,065 |
Corporate Bonds | 370,098,604 | -- | 370,098,604 | -- |
Bank Loan Obligations | 6,326,830 | -- | 6,326,830 | -- |
Preferred Securities | 14,650,958 | -- | 14,650,958 | -- |
Money Market Funds | 15,771,125 | 15,771,125 | -- | -- |
Total Investments in Securities: | $407,304,532 | $15,771,125 | $391,076,392 | $457,015 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 76.2% |
Canada | 5.9% |
Luxembourg | 4.9% |
Netherlands | 3.4% |
Multi-National | 2.2% |
United Kingdom | 1.8% |
Cayman Islands | 1.4% |
Bermuda | 1.2% |
Others (Individually Less Than 1%) | 3.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $394,259,979) | $391,533,407 | |
Fidelity Central Funds (cost $15,771,125) | 15,771,125 | |
Total Investment in Securities (cost $410,031,104) | $407,304,532 | |
Cash | 1,039,126 | |
Receivable for investments sold | 670,366 | |
Receivable for fund shares sold | 232,298 | |
Interest receivable | 6,437,597 | |
Distributions receivable from Fidelity Central Funds | 27,423 | |
Total assets | 415,711,342 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $1,676,360 | |
Delayed delivery | 1,481,575 | |
Payable for fund shares redeemed | 195,142 | |
Other payables and accrued expenses | 4,696 | |
Total liabilities | 3,357,773 | |
Net Assets | $412,353,569 | |
Net Assets consist of: | ||
Paid in capital | $415,264,155 | |
Distributions in excess of net investment income | (415,531) | |
Accumulated undistributed net realized gain (loss) on investments | 231,517 | |
Net unrealized appreciation (depreciation) on investments | (2,726,572) | |
Net Assets, for 4,372,953 shares outstanding | $412,353,569 | |
Net Asset Value, offering price and redemption price per share ($412,353,569 ÷ 4,372,953 shares) | $94.30 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $1,100,844 | |
Interest | 25,552,296 | |
Income from Fidelity Central Funds | 208,371 | |
Total income | 26,861,511 | |
Expenses | ||
Custodian fees and expenses | $11,765 | |
Independent directors' fees and expenses | 2,096 | |
Legal | 12 | |
Miscellaneous | 10 | |
Total expenses before reductions | 13,883 | |
Expense reductions | (5,993) | |
Total expenses after reductions | 7,890 | |
Net investment income (loss) | 26,853,621 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,534,229 | |
Fidelity Central Funds | 112 | |
Total net realized gain (loss) | 1,534,341 | |
Change in net unrealized appreciation (depreciation) on investment securities | (17,609,200) | |
Net gain (loss) | (16,074,859) | |
Net increase (decrease) in net assets resulting from operations | $10,778,762 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $26,853,621 | $36,284,230 |
Net realized gain (loss) | 1,534,341 | 19,954,116 |
Change in net unrealized appreciation (depreciation) | (17,609,200) | (2,133,192) |
Net increase (decrease) in net assets resulting from operations | 10,778,762 | 54,105,154 |
Distributions to shareholders from net investment income | (26,805,868) | (36,596,557) |
Distributions to shareholders from net realized gain | (16,090,994) | (1,402,290) |
Total distributions | (42,896,862) | (37,998,847) |
Affiliated share transactions | ||
Proceeds from sales of shares | 56,102,680 | 33,665,085 |
Reinvestment of distributions | 42,889,583 | 37,995,896 |
Cost of shares redeemed | (156,983,876) | (380,292,695) |
Net increase (decrease) in net assets resulting from share transactions | (57,991,613) | (308,631,714) |
Total increase (decrease) in net assets | (90,109,713) | (292,525,407) |
Net Assets | ||
Beginning of period | 502,463,282 | 794,988,689 |
End of period | $412,353,569 | $502,463,282 |
Other Information | ||
Distributions in excess of net investment income end of period | $(415,531) | $(306,720) |
Shares | ||
Sold | 584,125 | 340,251 |
Issued in reinvestment of distributions | 446,524 | 383,006 |
Redeemed | (1,647,007) | (3,843,320) |
Net increase (decrease) | (616,358) | (3,120,063) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity High Income Central Fund 1
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $100.71 | $98.03 | $93.94 | $102.00 | $101.40 |
Income from Investment Operations | |||||
Net investment income (loss)A | 5.772 | 6.145 | 6.453 | 6.303 | 6.317 |
Net realized and unrealized gain (loss) | (3.258) | 2.919 | 3.688 | (8.196) | .503 |
Total from investment operations | 2.514 | 9.064 | 10.141 | (1.893) | 6.820 |
Distributions from net investment income | (5.750) | (6.169) | (6.051) | (6.167) | (6.220) |
Distributions from net realized gain | (3.174) | (.215) | – | – | – |
Total distributions | (8.924) | (6.384) | (6.051) | (6.167) | (6.220) |
Net asset value, end of period | $94.30 | $100.71 | $98.03 | $93.94 | $102.00 |
Total ReturnB | 2.69% | 9.54% | 11.32% | (2.06)% | 6.77% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductionsE | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyE | -% | -% | -% | -% | -% |
Expenses net of all reductionsE | -% | -% | -% | -% | -% |
Net investment income (loss) | 6.01% | 6.18% | 6.92% | 6.31% | 6.07% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $412,354 | $502,463 | $794,989 | $1,012,111 | $457,907 |
Portfolio turnover rateF | 69% | 58% | 59% | 57% | 74% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount represents less than .005%.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended September 30, 2018
1. Organization.
Fidelity High Income Central Fund 1 (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 (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.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of September 30, 2018 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, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of September 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to partnerships 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 | $7,458,814 |
Gross unrealized depreciation | (10,158,444) |
Net unrealized appreciation (depreciation) | $(2,699,630) |
Tax Cost | $410,004,162 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $204,574 |
Net unrealized appreciation (depreciation) on securities and other investments | $(2,699,630) |
The tax character of distributions paid was as follows:
September 30, 2018 | September 30, 2017 | |
Ordinary Income | $30,121,403 | $ 37,509,676 |
Long-term Capital Gains | 12,775,459 | 489,171 |
Total | $42,896,862 | $ 37,998,847 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $294,106,725 and $374,399,491, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR 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. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $422 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5,993.
7. Other.
The 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, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Central Investment Portfolios LLC and the Shareholders of Fidelity High Income Central Fund 1:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity High Income Central Fund 1 (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of September 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, 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 September 30, 2018, 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 September 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 14, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Directors and Officers (Trustees and Officers)
The Trustees, Members of the Advisory Board (if any), and officers of the Fidelity Central Investment Portfolios LLC and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 283 funds. Mr. Wiley oversees 193 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the Fidelity Central Investment Portfolios LLC or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2004
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2004
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 to September 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period-B April 1, 2018 to September 30, 2018 | |
Actual | .0034% | $1,000.00 | $1,031.70 | $.02 |
Hypothetical-C | $1,000.00 | $1,025.05 | $.02 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended September 30, 2018, $1,532,406, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.19% 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 $13,894,745 of distributions paid during the period January 1, 2018 to September 30, 2018 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity High Income Central Fund 1
At its July 2018 meeting, the Board of Directors, including the Independent Directors (together, the Board), voted to continue the management contract with FMR Co., Inc. (FMRC) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
HP1-ANN-1118
1.807405.113
Fidelity® Equity Sector Central Funds Annual Report September 30, 2018 |
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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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Fidelity® Consumer Discretionary Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Consumer Discretionary Central Fund | 31.42% | 14.83% | 16.30% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Consumer Discretionary Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422704446_740.jpg)
Period Ending Values | ||
$45,272 | Fidelity® Consumer Discretionary Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Consumer Discretionary Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Katherine Shaw: For the fiscal year, the fund gained 31.42%, outpacing the 28.02% advance of the MSCI U.S. IMI Consumer Discretionary 25/50 Index, as well as the broad-market S&P 500®. The past 12 months, consumer discretionary stocks benefited from positive business fundamentals and upbeat consumer sentiment. Jobs data trended upward and investors remained confident that the sweeping $1.5 trillion U.S. tax-reform plan passed in December 2017 could boost consumers' discretionary spending in 2018. The fund’s outperformance of the MSCI sector index this period was driven by underweightings in the auto parts & equipment and automobile manufacturers categories, each of which lost ground. Security selection in internet & direct marketing retail also helped our relative result. Conversely, notable detractors versus the MSCI index included overexposure to hotels, resorts & cruise lines, along with our choices in general merchandise stores. Among individual stocks, Amazon.com was our biggest holding and largest individual contributor. Shares of Amazon gained roughly 108%, rising on the firm’s sustained dominance in its core e-commerce and cloud markets. Relative performance also received a boost from our decision to not own index component Ford Motor and largely avoid media giant Time Warner, as both stocks declined the past 12 months. Time Warner was not held at period end. Conversely, a sizable overweighting in Charter Communications was the fund’s biggest individual relative detractor. Our position in the stock returned about -11%, largely weighed down by concerns related to cord cutting. Another large fund holding that hurt this period was discount retailer Dollar Tree (-6%).The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Consumer Discretionary Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Amazon.com, Inc. | 21.3 |
Home Depot, Inc. | 7.1 |
Netflix, Inc. | 4.1 |
The Walt Disney Co. | 3.7 |
McDonald's Corp. | 3.7 |
Lowe's Companies, Inc. | 3.2 |
Comcast Corp. Class A | 2.6 |
The Booking Holdings, Inc. | 2.5 |
NIKE, Inc. Class B | 2.5 |
Charter Communications, Inc. Class A | 2.5 |
53.2 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Internet & Direct Marketing Retail | 28.5% | |
Hotels, Restaurants & Leisure | 21.7% | |
Specialty Retail | 19.2% | |
Media | 9.7% | |
Textiles, Apparel & Luxury Goods | 5.6% | |
All Others* | 15.3% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Consumer Discretionary Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 100.0% | |||
Shares | Value | ||
Air Freight & Logistics - 0.1% | |||
Air Freight & Logistics - 0.1% | |||
XPO Logistics, Inc. (a) | 21,100 | $2,408,987 | |
Auto Components - 0.3% | |||
Auto Parts & Equipment - 0.3% | |||
Aptiv PLC | 44,300 | 3,716,770 | |
Lear Corp. | 19,919 | 2,888,255 | |
Tenneco, Inc. | 2,283 | 96,206 | |
6,701,231 | |||
Automobiles - 2.0% | |||
Automobile Manufacturers - 2.0% | |||
Ferrari NV (b) | 29,795 | 4,079,233 | |
General Motors Co. | 381,600 | 12,848,472 | |
Tesla, Inc. (a) | 94,716 | 25,077,955 | |
Thor Industries, Inc. | 83,900 | 7,022,430 | |
49,028,090 | |||
Beverages - 0.7% | |||
Distillers & Vintners - 0.5% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 61,335 | 13,225,053 | |
Soft Drinks - 0.2% | |||
Monster Beverage Corp. (a) | 71,533 | 4,168,943 | |
TOTAL BEVERAGES | 17,393,996 | ||
Building Products - 0.1% | |||
Building Products - 0.1% | |||
Masco Corp. | 75,000 | 2,745,000 | |
Chemicals - 0.1% | |||
Specialty Chemicals - 0.1% | |||
Sherwin-Williams Co. | 4,400 | 2,002,924 | |
Commercial Services & Supplies - 0.1% | |||
Diversified Support Services - 0.1% | |||
Copart, Inc. (a) | 67,500 | 3,478,275 | |
Distributors - 0.6% | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 323,300 | 10,238,911 | |
Pool Corp. | 19,800 | 3,304,224 | |
13,543,135 | |||
Diversified Consumer Services - 1.1% | |||
Education Services - 0.6% | |||
Adtalem Global Education, Inc. (a) | 53,700 | 2,588,340 | |
Grand Canyon Education, Inc. (a) | 81,830 | 9,230,424 | |
New Oriental Education & Technology Group, Inc. sponsored ADR | 45,900 | 3,397,059 | |
15,215,823 | |||
Specialized Consumer Services - 0.5% | |||
Service Corp. International | 25,000 | 1,105,000 | |
ServiceMaster Global Holdings, Inc. (a) | 34,078 | 2,113,858 | |
Weight Watchers International, Inc. (a) | 106,659 | 7,678,381 | |
10,897,239 | |||
TOTAL DIVERSIFIED CONSUMER SERVICES | 26,113,062 | ||
Electronic Equipment & Components - 0.1% | |||
Electronic Equipment & Instruments - 0.1% | |||
ADT, Inc. (b) | 177,900 | 1,670,481 | |
Food & Staples Retailing - 1.1% | |||
Food Distributors - 0.6% | |||
Performance Food Group Co. (a) | 438,075 | 14,587,898 | |
Hypermarkets & Super Centers - 0.5% | |||
BJ's Wholesale Club Holdings, Inc. | 220,300 | 5,899,634 | |
Costco Wholesale Corp. | 4,149 | 974,517 | |
Walmart, Inc. | 43,500 | 4,085,085 | |
10,959,236 | |||
TOTAL FOOD & STAPLES RETAILING | 25,547,134 | ||
Health Care Providers & Services - 0.0% | |||
Health Care Services - 0.0% | |||
National Vision Holdings, Inc. | 20,510 | 925,821 | |
Hotels, Restaurants & Leisure - 21.7% | |||
Casinos & Gaming - 3.1% | |||
Boyd Gaming Corp. | 117,300 | 3,970,605 | |
Caesars Entertainment Corp. (a) | 516,000 | 5,289,000 | |
Churchill Downs, Inc. | 9,900 | 2,749,230 | |
Eldorado Resorts, Inc. (a) | 294,483 | 14,311,874 | |
Las Vegas Sands Corp. | 429,315 | 25,471,259 | |
Melco Crown Entertainment Ltd. sponsored ADR | 54,100 | 1,144,215 | |
MGM Mirage, Inc. | 454,700 | 12,690,677 | |
Penn National Gaming, Inc. (a) | 173,459 | 5,710,270 | |
PlayAGS, Inc. (a) | 42,200 | 1,243,634 | |
Wynn Resorts Ltd. | 15,615 | 1,984,042 | |
74,564,806 | |||
Hotels, Resorts & Cruise Lines - 8.2% | |||
Accor SA | 29,500 | 1,514,578 | |
Bluegreen Vacations Corp. | 148,880 | 2,663,463 | |
Carnival Corp. | 311,700 | 19,877,109 | |
Hilton Grand Vacations, Inc. (a) | 275,400 | 9,115,740 | |
Hilton Worldwide Holdings, Inc. | 463,826 | 37,467,864 | |
Hyatt Hotels Corp. Class A | 65,900 | 5,244,981 | |
Marriott International, Inc. Class A | 304,108 | 40,151,379 | |
Marriott Vacations Worldwide Corp. | 132,500 | 14,806,875 | |
Royal Caribbean Cruises Ltd. | 355,228 | 46,158,326 | |
Wyndham Destinations, Inc. | 217,358 | 9,424,643 | |
Wyndham Hotels & Resorts, Inc. | 225,343 | 12,522,311 | |
198,947,269 | |||
Leisure Facilities - 1.4% | |||
Cedar Fair LP (depositary unit) | 53,273 | 2,774,458 | |
Drive Shack, Inc. (a) | 435,017 | 2,592,701 | |
Planet Fitness, Inc. (a) | 205,663 | 11,111,972 | |
Vail Resorts, Inc. | 58,509 | 16,056,040 | |
32,535,171 | |||
Restaurants - 9.0% | |||
ARAMARK Holdings Corp. | 266,963 | 11,484,748 | |
Chipotle Mexican Grill, Inc. (a) | 10,400 | 4,727,008 | |
Compass Group PLC | 64,400 | 1,431,999 | |
Darden Restaurants, Inc. | 83,873 | 9,325,839 | |
Del Frisco's Restaurant Group, Inc. (a) | 120,700 | 1,001,810 | |
Dine Brands Global, Inc. | 17,957 | 1,460,084 | |
Domino's Pizza, Inc. | 41,320 | 12,181,136 | |
Dunkin' Brands Group, Inc. | 105,549 | 7,781,072 | |
Jack in the Box, Inc. | 31,411 | 2,633,184 | |
McDonald's Corp. | 529,130 | 88,518,158 | |
Restaurant Brands International, Inc. | 191,300 | 11,327,081 | |
Ruth's Hospitality Group, Inc. | 43,323 | 1,366,841 | |
Shake Shack, Inc. Class A (a) | 15,700 | 989,257 | |
Starbucks Corp. | 681,900 | 38,759,196 | |
Texas Roadhouse, Inc. Class A | 53,300 | 3,693,157 | |
U.S. Foods Holding Corp. (a) | 336,800 | 10,380,176 | |
Wendy's Co. | 161,900 | 2,774,966 | |
Wingstop, Inc. | 26,477 | 1,807,585 | |
Yum! Brands, Inc. | 68,327 | 6,211,608 | |
217,854,905 | |||
TOTAL HOTELS, RESTAURANTS & LEISURE | 523,902,151 | ||
Household Durables - 2.5% | |||
Home Furnishings - 0.3% | |||
Mohawk Industries, Inc. (a) | 33,000 | 5,786,550 | |
Homebuilding - 2.1% | |||
Cavco Industries, Inc. (a) | 18,846 | 4,768,038 | |
D.R. Horton, Inc. | 408,300 | 17,222,094 | |
Lennar Corp.: | |||
Class A | 266,650 | 12,449,889 | |
Class B | 2,892 | 111,342 | |
LGI Homes, Inc. (a)(b) | 19,100 | 906,104 | |
New Home Co. LLC (a) | 79,500 | 640,770 | |
NVR, Inc. (a) | 4,450 | 10,995,060 | |
Taylor Morrison Home Corp. (a) | 58,400 | 1,053,536 | |
TRI Pointe Homes, Inc. (a) | 248,600 | 3,082,640 | |
51,229,473 | |||
Household Appliances - 0.1% | |||
Techtronic Industries Co. Ltd. | 468,500 | 2,992,329 | |
TOTAL HOUSEHOLD DURABLES | 60,008,352 | ||
Internet & Direct Marketing Retail - 28.5% | |||
Internet & Direct Marketing Retail - 28.5% | |||
Amazon.com, Inc. (a) | 257,127 | 515,025,380 | |
Boohoo.Com PLC (a) | 329,200 | 1,004,904 | |
Liberty Interactive Corp. QVC Group Series A (a) | 429,185 | 9,532,199 | |
Netflix, Inc. (a) | 265,479 | 99,323,658 | |
Start Today Co. Ltd. | 19,900 | 602,500 | |
The Booking Holdings, Inc.(a) | 30,657 | 60,823,488 | |
Wayfair LLC Class A (a) | 12,300 | 1,816,341 | |
Zalando SE (a) | 10,300 | 400,740 | |
688,529,210 | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
2U, Inc. (a) | 66,277 | 4,983,368 | |
Alphabet, Inc. Class A (a) | 9,400 | 11,346,552 | |
Farfetch Ltd. Class A | 18,100 | 492,863 | |
MINDBODY, Inc. (a) | 16,800 | 682,920 | |
SurveyMonkey | 5,500 | 88,165 | |
17,593,868 | |||
IT Services - 0.4% | |||
Data Processing & Outsourced Services - 0.4% | |||
Adyen BV (c) | 1,573 | 1,283,911 | |
Global Payments, Inc. | 25,500 | 3,248,700 | |
PayPal Holdings, Inc. (a) | 65,100 | 5,718,384 | |
10,250,995 | |||
Leisure Products - 0.5% | |||
Leisure Products - 0.5% | |||
Mattel, Inc. (b) | 728,000 | 11,429,600 | |
Media - 9.7% | |||
Advertising - 0.0% | |||
Interpublic Group of Companies, Inc. | 28,900 | 660,943 | |
Broadcasting - 0.1% | |||
CBS Corp. Class B | 47,200 | 2,711,640 | |
Cable & Satellite - 5.3% | |||
Charter Communications, Inc. Class A (a) | 181,237 | 59,061,514 | |
Comcast Corp. Class A | 1,795,871 | 63,591,792 | |
Naspers Ltd. Class N | 19,284 | 4,161,430 | |
126,814,736 | |||
Movies & Entertainment - 4.3% | |||
Cinemark Holdings, Inc. | 224,065 | 9,007,413 | |
Liberty Media Corp. Liberty Formula One Group Series C (a) | 47,500 | 1,766,525 | |
Lions Gate Entertainment Corp. Class B | 7,600 | 177,080 | |
Live Nation Entertainment, Inc. (a) | 86,900 | 4,733,443 | |
The Walt Disney Co. | 761,278 | 89,023,849 | |
104,708,310 | |||
TOTAL MEDIA | 234,895,629 | ||
Multiline Retail - 4.2% | |||
Department Stores - 0.5% | |||
Future Retail Ltd. | 208,890 | 1,342,905 | |
Macy's, Inc. | 263,293 | 9,144,166 | |
10,487,071 | |||
General Merchandise Stores - 3.7% | |||
B&M European Value Retail S.A. | 427,543 | 2,155,480 | |
Dollar General Corp. | 295,680 | 32,317,824 | |
Dollar Tree, Inc. (a) | 569,753 | 46,463,357 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 52,700 | 5,064,470 | |
Target Corp. | 43,400 | 3,828,314 | |
89,829,445 | |||
TOTAL MULTILINE RETAIL | 100,316,516 | ||
Personal Products - 0.0% | |||
Personal Products - 0.0% | |||
Estee Lauder Companies, Inc. Class A | 7,100 | 1,031,772 | |
Real Estate Management & Development - 0.1% | |||
Real Estate Services - 0.1% | |||
Redfin Corp. (a)(b) | 81,200 | 1,518,440 | |
Software - 0.2% | |||
Application Software - 0.1% | |||
Adobe Systems, Inc. (a) | 6,000 | 1,619,700 | |
Home Entertainment Software - 0.1% | |||
Activision Blizzard, Inc. | 29,200 | 2,429,148 | |
TOTAL SOFTWARE | 4,048,848 | ||
Specialty Retail - 19.2% | |||
Apparel Retail - 5.8% | |||
Burlington Stores, Inc. (a) | 260,625 | 42,461,025 | |
Inditex SA | 60,601 | 1,830,851 | |
Ross Stores, Inc. | 394,269 | 39,072,058 | |
The Children's Place Retail Stores, Inc. | 36,405 | 4,652,559 | |
TJX Companies, Inc. | 465,990 | 52,200,200 | |
140,216,693 | |||
Automotive Retail - 2.2% | |||
AutoZone, Inc. (a) | 24,674 | 19,139,622 | |
Monro, Inc. | 50,600 | 3,521,760 | |
O'Reilly Automotive, Inc. (a) | 88,068 | 30,587,778 | |
53,249,160 | |||
Computer & Electronics Retail - 0.1% | |||
Best Buy Co., Inc. | 45,600 | 3,618,816 | |
Home Improvement Retail - 10.4% | |||
Floor & Decor Holdings, Inc. Class A (a) | 98,044 | 2,957,987 | |
Home Depot, Inc. | 825,941 | 171,093,678 | |
Lowe's Companies, Inc. | 662,919 | 76,116,360 | |
250,168,025 | |||
Specialty Stores - 0.7% | |||
Five Below, Inc. (a) | 2,800 | 364,168 | |
Tiffany & Co., Inc. | 38,300 | 4,939,551 | |
Ulta Beauty, Inc. (a) | 43,700 | 12,328,644 | |
17,632,363 | |||
TOTAL SPECIALTY RETAIL | 464,885,057 | ||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Apple, Inc. | 21,900 | 4,943,706 | |
Textiles, Apparel & Luxury Goods - 5.6% | |||
Apparel, Accessories & Luxury Goods - 3.0% | |||
adidas AG | 20,166 | 4,937,957 | |
Canada Goose Holdings, Inc. (a) | 33,983 | 2,188,972 | |
Carter's, Inc. | 56,500 | 5,570,900 | |
G-III Apparel Group Ltd. (a) | 50,043 | 2,411,572 | |
Kering SA | 8,200 | 4,395,666 | |
lululemon athletica, Inc. (a) | 9,000 | 1,462,410 | |
LVMH Moet Hennessy - Louis Vuitton SA | 19,386 | 6,850,450 | |
Michael Kors Holdings Ltd. (a) | 43,125 | 2,956,650 | |
Prada SpA | 391,800 | 1,876,832 | |
PVH Corp. | 219,014 | 31,625,622 | |
Swatch Group AG (Bearer) | 3,740 | 1,487,387 | |
Tapestry, Inc. | 93,500 | 4,700,245 | |
VF Corp. | 31,700 | 2,962,365 | |
73,427,028 | |||
Footwear - 2.6% | |||
NIKE, Inc. Class B | 711,956 | 60,316,912 | |
Wolverine World Wide, Inc. | 31,500 | 1,230,075 | |
61,546,987 | |||
Textiles - 0.0% | |||
Arco Platform Ltd. Class A | 18,900 | 430,920 | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 135,404,935 | ||
Tobacco - 0.2% | |||
Tobacco - 0.2% | |||
Philip Morris International, Inc. | 46,000 | 3,750,840 | |
TOTAL COMMON STOCKS | |||
(Cost $1,661,028,100) | 2,414,068,055 | ||
Money Market Funds - 0.5% | |||
Fidelity Securities Lending Cash Central Fund 2.11% (d)(e) | |||
(Cost $13,001,451) | 13,000,151 | 13,001,451 | |
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $1,674,029,551) | 2,427,069,506 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (12,151,769) | ||
NET ASSETS - 100% | $2,414,917,737 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,283,911 or 0.1% of net assets.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $137,045 |
Fidelity Securities Lending Cash Central Fund | 166,860 |
Total | $303,905 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, 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: | ||||
Common Stocks | $2,414,068,055 | $2,405,386,754 | $8,681,301 | $-- |
Money Market Funds | 13,001,451 | 13,001,451 | -- | -- |
Total Investments in Securities: | $2,427,069,506 | $2,418,388,205 | $8,681,301 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Consumer Discretionary Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $12,486,630) — See accompanying schedule: Unaffiliated issuers (cost $1,661,028,100) | $2,414,068,055 | |
Fidelity Central Funds (cost $13,001,451) | 13,001,451 | |
Total Investment in Securities (cost $1,674,029,551) | $2,427,069,506 | |
Receivable for investments sold | 4,198,247 | |
Receivable for fund shares sold | 1,317,325 | |
Dividends receivable | 827,958 | |
Distributions receivable from Fidelity Central Funds | 12,088 | |
Total assets | 2,433,425,124 | |
Liabilities | ||
Payable to custodian bank | $519,970 | |
Payable for investments purchased | 2,367,726 | |
Payable for fund shares redeemed | 2,607,774 | |
Other payables and accrued expenses | 12,957 | |
Collateral on securities loaned | 12,998,960 | |
Total liabilities | 18,507,387 | |
Net Assets | $2,414,917,737 | |
Net Assets consist of: | ||
Paid in capital | $1,599,613,348 | |
Undistributed net investment income | 3,152,954 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 59,111,381 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 753,040,054 | |
Net Assets, for 6,888,088 shares outstanding | $2,414,917,737 | |
Net Asset Value, offering price and redemption price per share ($2,414,917,737 ÷ 6,888,088 shares) | $350.59 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $20,727,814 | |
Income from Fidelity Central Funds (including $166,860 from security lending) | 303,905 | |
Total income | 21,031,719 | |
Expenses | ||
Custodian fees and expenses | $28,234 | |
Independent directors' fees and expenses | 9,374 | |
Interest | 2,334 | |
Miscellaneous | 37 | |
Total expenses | 39,979 | |
Net investment income (loss) | 20,991,740 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 97,641,734 | |
Redemptions in-kind with affiliated entities | 155,553,360 | |
Fidelity Central Funds | (422) | |
Foreign currency transactions | 2,910 | |
Total net realized gain (loss) | 253,197,582 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 282,671,914 | |
Fidelity Central Funds | (330) | |
Assets and liabilities in foreign currencies | (5,012) | |
Total change in net unrealized appreciation (depreciation) | 282,666,572 | |
Net gain (loss) | 535,864,154 | |
Net increase (decrease) in net assets resulting from operations | $556,855,894 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $20,991,740 | $18,629,366 |
Net realized gain (loss) | 253,197,582 | 69,549,384 |
Change in net unrealized appreciation (depreciation) | 282,666,572 | 142,968,418 |
Net increase (decrease) in net assets resulting from operations | 556,855,894 | 231,147,168 |
Distributions to shareholders from net investment income | (19,605,261) | (16,424,895) |
Distributions to shareholders from net realized gain | (92,369,304) | – |
Total distributions | (111,974,565) | (16,424,895) |
Affiliated share transactions | ||
Proceeds from sales of shares | 836,759,194 | 139,542,270 |
Reinvestment of distributions | 111,974,565 | 16,424,481 |
Cost of shares redeemed | (560,440,844) | (367,978,846) |
Net increase (decrease) in net assets resulting from share transactions | 388,292,915 | (212,012,095) |
Total increase (decrease) in net assets | 833,174,244 | 2,710,178 |
Net Assets | ||
Beginning of period | 1,581,743,493 | 1,579,033,315 |
End of period | $2,414,917,737 | $1,581,743,493 |
Other Information | ||
Undistributed net investment income end of period | $3,152,954 | $1,935,347 |
Shares | ||
Sold | 2,718,976 | 537,543 |
Issued in reinvestment of distributions | 373,136 | 61,740 |
Redeemed | (1,778,344) | (1,372,701) |
Net increase (decrease) | 1,313,768 | (773,418) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Consumer Discretionary Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $283.76 | $248.76 | $234.10 | $213.75 | $196.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | 3.24 | 3.14 | 3.75 | 3.36 | 2.23 |
Net realized and unrealized gain (loss) | 82.54 | 34.62 | 14.67 | 20.24 | 17.43 |
Total from investment operations | 85.78 | 37.76 | 18.42 | 23.60 | 19.66 |
Distributions from net investment income | (3.08)B | (2.76) | (3.76) | (3.25) | (2.17) |
Distributions from net realized gain | (15.86)B | – | – | – | – |
Total distributions | (18.95)C | (2.76) | (3.76) | (3.25) | (2.17) |
Net asset value, end of period | $350.59 | $283.76 | $248.76 | $234.10 | $213.75 |
Total ReturnD | 31.42% | 15.25% | 7.91% | 11.01% | 10.03% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductionsG | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyG | -% | -% | -% | -% | -% |
Expenses net of all reductionsG | -% | -% | -% | -% | -% |
Net investment income (loss) | 1.02% | 1.17% | 1.54% | 1.41% | 1.06% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $2,414,918 | $1,581,743 | $1,579,033 | $1,487,901 | $1,431,901 |
Portfolio turnover rateH | 26%I | 40%I | 27% | 68% | 169%I |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $18.95 per share is comprised of distributions from net investment income of $3.081 and distributions from net realized gain of $15.864 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Consumer Staples Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Consumer Staples Central Fund | (1.76)% | 7.14% | 9.81% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Consumer Staples Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422701385_740.jpg)
Period Ending Values | ||
$25,483 | Fidelity® Consumer Staples Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Consumer Staples Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager James McElligott: For the fiscal year, the fund returned -1.76%, lagging the 3.90% gain of the MSCI U.S. IMI Consumer Staples 25/50 Index and considerably behind the broad-based S&P 500®. Consumer staples stocks underperformed the broader market the past 12 months because investors favored more-cyclical (economically sensitive), faster-growing sectors. Within the MSCI sector index, the tobacco (-14%) and household products (-2%) industries struggled this period, whereas notable outperformers included food retail (+39%), personal products (+33%), and hypermarkets & super centers (+30%). The fund’s sizable underweighting in hypermarkets & super centers detracted from our result versus the MSCI sector index. This partially reflected underexposure to Walmart, which returned roughly -1% while held in the fund. Stock picks in household products and personal products also hurt our relative result, as did an overweighting in tobacco. Other individual disappointments included an overweighting in Coty (-21%), as the stock sank because investors became impatient with the turnaround of some recently acquired make-up brands. Coty was among the fund's largest holdings, as we notably increased exposure the past 12 months. Conversely, positioning in food retail modestly aided relative performance. The top individual contributor was a non-index stake in Simply Good Foods (+66%), a maker of healthy snack foods. Its shares benefited from the company's recent advertising campaign and the trend toward health-conscious foods. This period, we meaningfully added to our stake in Simply Good Foods.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On November 17, 2017, James McElligott succeeded Robert Lee as Portfolio Manager of the fund.Fidelity® Consumer Staples Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
The Coca-Cola Co. | 10.3 |
Procter & Gamble Co. | 9.5 |
Philip Morris International, Inc. | 7.1 |
PepsiCo, Inc. | 5.8 |
Coty, Inc. Class A | 5.7 |
Altria Group, Inc. | 4.0 |
Spectrum Brands Holdings, Inc. | 4.0 |
Costco Wholesale Corp. | 3.7 |
Mondelez International, Inc. | 3.7 |
Monster Beverage Corp. | 3.7 |
57.5 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Beverages | 27.4% | |
Food Products | 19.7% | |
Household Products | 16.0% | |
Tobacco | 12.9% | |
Personal Products | 10.5% | |
All Others* | 13.5% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Consumer Staples Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
Beverages - 27.4% | |||
Brewers - 0.8% | |||
Beijing Yanjing Brewery Co. Ltd. Class A | 8,392,928 | $8,052,206 | |
China Resources Beer Holdings Co. Ltd. | 85,210 | 342,327 | |
Molson Coors Brewing Co. Class B | 41,700 | 2,564,550 | |
10,959,083 | |||
Distillers & Vintners - 2.4% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 108,866 | 23,473,687 | |
Kweichow Moutai Co. Ltd. (A Shares) | 10,418 | 1,107,193 | |
Pernod Ricard SA | 39,200 | 6,431,010 | |
31,011,890 | |||
Soft Drinks - 24.2% | |||
Coca-Cola Bottling Co. Consolidated | 63,687 | 11,608,866 | |
Coca-Cola European Partners PLC | 480,058 | 21,828,237 | |
Coca-Cola FEMSA S.A.B. de CV sponsored ADR | 57,400 | 3,515,176 | |
Coca-Cola West Co. Ltd. | 249,800 | 6,683,612 | |
Fever-Tree Drinks PLC | 1,844 | 86,717 | |
Keurig Dr. Pepper, Inc. | 574,900 | 13,320,433 | |
Monster Beverage Corp. (a) | 823,678 | 48,003,954 | |
PepsiCo, Inc. | 681,500 | 76,191,700 | |
The Coca-Cola Co. | 2,910,761 | 134,448,049 | |
315,686,744 | |||
TOTAL BEVERAGES | 357,657,717 | ||
Food & Staples Retailing - 10.2% | |||
Drug Retail - 2.2% | |||
Rite Aid Corp. (a)(b) | 1,106,701 | 1,416,577 | |
Walgreens Boots Alliance, Inc. | 375,280 | 27,357,912 | |
28,774,489 | |||
Food Distributors - 1.6% | |||
Sysco Corp. | 275,500 | 20,180,375 | |
United Natural Foods, Inc. (a) | 12,100 | 362,395 | |
20,542,770 | |||
Food Retail - 1.2% | |||
Kroger Co. | 280,323 | 8,160,203 | |
Sprouts Farmers Market LLC (a) | 245,400 | 6,726,414 | |
14,886,617 | |||
Hypermarkets & Super Centers - 5.2% | |||
BJ's Wholesale Club Holdings, Inc. | 17,100 | 457,938 | |
Costco Wholesale Corp. | 207,400 | 48,714,112 | |
Walmart, Inc. | 203,300 | 19,091,903 | |
68,263,953 | |||
TOTAL FOOD & STAPLES RETAILING | 132,467,829 | ||
Food Products - 19.7% | |||
Agricultural Products - 1.6% | |||
Bunge Ltd. | 149,369 | 10,263,144 | |
Darling International, Inc. (a) | 370,600 | 7,159,992 | |
Ingredion, Inc. | 33,700 | 3,537,152 | |
20,960,288 | |||
Packaged Foods & Meats - 18.1% | |||
ConAgra Foods, Inc. | 462,500 | 15,711,125 | |
Danone SA | 269,412 | 20,937,409 | |
JBS SA | 3,946,400 | 9,165,971 | |
Kellogg Co. | 266,900 | 18,688,338 | |
Mondelez International, Inc. | 1,120,412 | 48,132,900 | |
Nomad Foods Ltd. (a) | 179,800 | 3,642,748 | |
Post Holdings, Inc. (a) | 60,900 | 5,970,636 | |
The Hain Celestial Group, Inc. (a) | 257,789 | 6,991,238 | |
The Hershey Co. | 104,700 | 10,679,400 | |
The J.M. Smucker Co. | 198,400 | 20,357,824 | |
The Kraft Heinz Co. | 594,300 | 32,751,873 | |
The Simply Good Foods Co. (a) | 1,104,900 | 21,490,305 | |
TreeHouse Foods, Inc. (a) | 454,473 | 21,746,533 | |
236,266,300 | |||
TOTAL FOOD PRODUCTS | 257,226,588 | ||
Health Care Providers & Services - 0.9% | |||
Health Care Services - 0.9% | |||
CVS Health Corp. | 152,503 | 12,005,036 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Restaurants - 0.8% | |||
Compass Group PLC | 32,340 | 719,112 | |
U.S. Foods Holding Corp. (a) | 327,208 | 10,084,551 | |
10,803,663 | |||
Household Durables - 0.1% | |||
Housewares & Specialties - 0.1% | |||
Newell Brands, Inc. | 55,800 | 1,132,740 | |
Household Products - 16.0% | |||
Household Products - 16.0% | |||
Colgate-Palmolive Co. | 307,320 | 20,575,074 | |
Essity AB Class B | 281,400 | 7,073,470 | |
Procter & Gamble Co. | 1,488,893 | 123,920,564 | |
Reckitt Benckiser Group PLC | 64,900 | 5,928,616 | |
Spectrum Brands Holdings, Inc. | 691,351 | 51,657,747 | |
209,155,471 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Internet & Direct Marketing Retail - 0.2% | |||
The Honest Co., Inc. (a)(c)(d) | 171,220 | 1,969,030 | |
Multiline Retail - 0.7% | |||
General Merchandise Stores - 0.7% | |||
Dollar Tree, Inc. (a) | 112,600 | 9,182,530 | |
Personal Products - 10.5% | |||
Personal Products - 10.5% | |||
Avon Products, Inc. (a) | 6,947,513 | 15,284,529 | |
Coty, Inc. Class A | 5,965,178 | 74,922,636 | |
Estee Lauder Companies, Inc. Class A | 79,467 | 11,548,144 | |
Herbalife Nutrition Ltd. (a) | 47,064 | 2,567,341 | |
Ontex Group NV | 153,000 | 3,259,706 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 537,754 | 29,912,474 | |
137,494,830 | |||
Tobacco - 12.9% | |||
Tobacco - 12.9% | |||
Altria Group, Inc. | 872,567 | 52,624,516 | |
British American Tobacco PLC sponsored ADR | 500,846 | 23,354,449 | |
Philip Morris International, Inc. | 1,137,653 | 92,764,226 | |
168,743,191 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,258,270,873) | 1,297,838,625 | ||
Money Market Funds - 0.4% | |||
Fidelity Cash Central Fund, 2.11% (e) | 4,111,318 | 4,112,140 | |
Fidelity Securities Lending Cash Central Fund 2.11% (e)(f) | 1,244,876 | 1,245,000 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $5,357,140) | 5,357,140 | ||
TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
(Cost $1,263,628,013) | 1,303,195,765 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 2,231,832 | ||
NET ASSETS - 100% | $1,305,427,597 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,969,030 or 0.2% of net assets.
(d) Level 3 security
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
The Honest Co., Inc. | 8/28/18 | $1,921,088 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $238,265 |
Fidelity Securities Lending Cash Central Fund | 233,654 |
Total | $471,919 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, 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: | ||||
Common Stocks | $1,297,838,625 | $1,239,091,096 | $56,778,499 | $1,969,030 |
Money Market Funds | 5,357,140 | 5,357,140 | -- | -- |
Total Investments in Securities: | $1,303,195,765 | $1,244,448,236 | $56,778,499 | $1,969,030 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.5% |
United Kingdom | 3.9% |
Netherlands | 2.3% |
France | 2.1% |
Others (Individually Less Than 1%) | 4.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Consumer Staples Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,062,400) — See accompanying schedule: Unaffiliated issuers (cost $1,258,270,873) | $1,297,838,625 | |
Fidelity Central Funds (cost $5,357,140) | 5,357,140 | |
Total Investment in Securities (cost $1,263,628,013) | $1,303,195,765 | |
Receivable for fund shares sold | 629,051 | |
Dividends receivable | 4,199,368 | |
Distributions receivable from Fidelity Central Funds | 10,721 | |
Other receivables | 9 | |
Total assets | 1,308,034,914 | |
Liabilities | ||
Payable for fund shares redeemed | $1,347,997 | |
Other payables and accrued expenses | 14,320 | |
Collateral on securities loaned | 1,245,000 | |
Total liabilities | 2,607,317 | |
Net Assets | $1,305,427,597 | |
Net Assets consist of: | ||
Paid in capital | $1,199,546,987 | |
Undistributed net investment income | 4,542,962 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 61,762,908 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 39,574,740 | |
Net Assets, for 6,379,310 shares outstanding | $1,305,427,597 | |
Net Asset Value, offering price and redemption price per share ($1,305,427,597 ÷ 6,379,310 shares) | $204.63 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $31,987,903 | |
Special dividends | 11,165,748 | |
Income from Fidelity Central Funds (including $233,654 from security lending) | 471,919 | |
Total income | 43,625,570 | |
Expenses | ||
Custodian fees and expenses | $33,650 | |
Independent directors' fees and expenses | 5,899 | |
Interest | 453 | |
Miscellaneous | 25 | |
Total expenses before reductions | 40,027 | |
Expense reductions | (199) | |
Total expenses after reductions | 39,828 | |
Net investment income (loss) | 43,585,742 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $341) | 85,041,919 | |
Redemptions in-kind with affiliated entities | 65,011,527 | |
Fidelity Central Funds | 7,974 | |
Foreign currency transactions | 99,800 | |
Total net realized gain (loss) | 150,161,220 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (225,384,920) | |
Fidelity Central Funds | (2,174) | |
Assets and liabilities in foreign currencies | (12,394) | |
Total change in net unrealized appreciation (depreciation) | (225,399,488) | |
Net gain (loss) | (75,238,268) | |
Net increase (decrease) in net assets resulting from operations | $(31,652,526) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $43,585,742 | $32,867,546 |
Net realized gain (loss) | 150,161,220 | 118,402,188 |
Change in net unrealized appreciation (depreciation) | (225,399,488) | (70,956,689) |
Net increase (decrease) in net assets resulting from operations | (31,652,526) | 80,313,045 |
Distributions to shareholders from net investment income | (41,880,818) | (29,842,447) |
Distributions to shareholders from net realized gain | (97,894,284) | (17,679,983) |
Total distributions | (139,775,102) | (47,522,430) |
Affiliated share transactions | ||
Proceeds from sales of shares | 510,816,792 | 82,258,610 |
Reinvestment of distributions | 139,775,102 | 47,521,494 |
Cost of shares redeemed | (356,818,908) | (264,262,776) |
Net increase (decrease) in net assets resulting from share transactions | 293,772,986 | (134,482,672) |
Total increase (decrease) in net assets | 122,345,358 | (101,692,057) |
Net Assets | ||
Beginning of period | 1,183,082,239 | 1,284,774,296 |
End of period | $1,305,427,597 | $1,183,082,239 |
Other Information | ||
Undistributed net investment income end of period | $4,542,963 | $2,897,888 |
Shares | ||
Sold | 2,421,167 | 370,634 |
Issued in reinvestment of distributions | 643,591 | 211,946 |
Redeemed | (1,761,742) | (1,141,143) |
Net increase (decrease) | 1,303,016 | (558,563) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Consumer Staples Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $233.06 | $228.00 | $202.36 | $205.11 | $181.33 |
Income from Investment Operations | |||||
Net investment income (loss)A | 7.25B | 6.10 | 5.30 | 5.31 | 5.20 |
Net realized and unrealized gain (loss) | (10.43) | 7.65 | 25.50 | (2.84) | 23.75 |
Total from investment operations | (3.18) | 13.75 | 30.80 | 2.47 | 28.95 |
Distributions from net investment income | (6.98) | (5.62) | (5.16) | (5.22) | (5.17) |
Distributions from net realized gain | (18.26) | (3.07) | – | – | – |
Total distributions | (25.25)C | (8.69) | (5.16) | (5.22) | (5.17) |
Net asset value, end of period | $204.63 | $233.06 | $228.00 | $202.36 | $205.11 |
Total ReturnD | (1.76)% | 6.23% | 15.29% | 1.07% | 16.13% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | - %G | - %G | - %G | - %G | .01% |
Expenses net of fee waivers, if any | - %G | - %G | - %G | - %G | .01% |
Expenses net of all reductions | - %G | - %G | - %G | - %G | .01% |
Net investment income (loss) | 3.42%B | 2.62% | 2.38% | 2.45% | 2.67% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,305,428 | $1,183,082 | $1,284,774 | $1,097,772 | $1,166,861 |
Portfolio turnover rateH | 79%I | 54%I | 50% | 65% | 36%I |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $1.86 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.55%.
C Total distributions of 25.25 per share is comprised of distributions from net investment income of $6.982 and distributions from net realized gain of $18.264 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Energy Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Energy Central Fund | 19.16% | 0.84% | 3.94% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Energy Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422699515_740.jpg)
Period Ending Values | ||
$14,715 | Fidelity® Energy Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Energy Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager John Dowd: For the fiscal year, the fund returned 19.16%, handily outperforming the 15.35% advance of the MSCI U.S. IMI Energy 25/50 Index, and also topping the broad-based S&P 500. Global economic expansion, stronger-than-expected global demand for crude oil and declining inventory levels pushed crude-oil prices above $70 per barrel this past year, providing a tailwind for corporate profitability and stock prices in the sector. Versus the MSCI index, our main strategy – overweighting oil & gas exploration & production (E&P) stocks and underweighting integrated oil & gas stocks – made the biggest contribution to fund performance. Within the index, E&Ps gained about 27% this period, outperforming the integrated oil & gas industry (+10%). In terms of individual stocks, a non-index stake in Viper Energy Partners (+147%) was the fund's biggest contributor. The company's shares benefited from better-than-expected financial results. A sizable underweighting in energy services company Schlumberger also added value, as the stock returned -10% due in part to weak demand for offshore drilling services. Conversely, stock selection in the oil & gas drilling industry held back the fund's relative result. An underweighting in ConocoPhillips was the fund's biggest relative detractor. Shares of Conoco, an E&P, rallied nearly 58% this period due to better-than-expected profit growth, a high free-cash-flow yield and shareholder-friendly capital allocation policies. A large underweighting in the strong-performing stock of Marathon Petroleum (+46%), a refining firm, also proved disappointing.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Energy Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Chevron Corp. | 8.5 |
EOG Resources, Inc. | 7.4 |
Valero Energy Corp. | 4.4 |
Delek U.S. Holdings, Inc. | 4.2 |
Phillips 66 Co. | 4.0 |
Diamondback Energy, Inc. | 4.0 |
Anadarko Petroleum Corp. | 3.9 |
Occidental Petroleum Corp. | 3.6 |
Pioneer Natural Resources Co. | 3.4 |
Exxon Mobil Corp. | 3.4 |
46.8 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Oil, Gas & Consumable Fuels | 87.9% | |
Energy Equipment & Services | 9.2% | |
Chemicals | 0.8% | |
Machinery | 0.5% | |
Gas Utilities | 0.2% | |
All Others* | 1.4% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Energy Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value | ||
Chemicals - 0.8% | |||
Commodity Chemicals - 0.8% | |||
LG Chemical Ltd. | 3,873 | $1,275,665 | |
LyondellBasell Industries NV Class A | 86,550 | 8,872,241 | |
10,147,906 | |||
Energy Equipment & Services - 9.2% | |||
Oil & Gas Drilling - 1.8% | |||
AKITA Drilling Ltd. Class A (non-vtg.) | 333,845 | 1,524,937 | |
Nabors Industries Ltd. | 898,425 | 5,534,298 | |
Odfjell Drilling Ltd. | 750,822 | 3,321,099 | |
Precision Drilling Corp. (a) | 1,184,200 | 4,088,981 | |
Shelf Drilling Ltd. (a)(b) | 865,488 | 6,433,669 | |
Trinidad Drilling Ltd. (a) | 1,058,151 | 1,515,565 | |
22,418,549 | |||
Oil & Gas Equipment & Services - 7.4% | |||
Baker Hughes, a GE Co. Class A | 1,179,536 | 39,903,703 | |
Halliburton Co. | 597,117 | 24,201,152 | |
Liberty Oilfield Services, Inc. Class A (c) | 261,800 | 5,647,026 | |
NCS Multistage Holdings, Inc. (a) | 148,500 | 2,451,735 | |
RigNet, Inc. (a) | 278,075 | 5,658,826 | |
Schlumberger Ltd. | 226,852 | 13,819,824 | |
Smart Sand, Inc. (a)(c) | 132,800 | 545,808 | |
92,228,074 | |||
TOTAL ENERGY EQUIPMENT & SERVICES | 114,646,623 | ||
Gas Utilities - 0.2% | |||
Gas Utilities - 0.2% | |||
Indraprastha Gas Ltd. | 539,220 | 1,806,696 | |
Machinery - 0.5% | |||
Industrial Machinery - 0.5% | |||
Cactus, Inc. (a) | 71,100 | 2,721,708 | |
Gardner Denver Holdings, Inc. (a) | 96,000 | 2,720,640 | |
ProPetro Holding Corp. (a) | 50,900 | 839,341 | |
6,281,689 | |||
Oil, Gas & Consumable Fuels - 87.9% | |||
Coal & Consumable Fuels - 0.2% | |||
Peabody Energy Corp. | 74,600 | 2,658,744 | |
Integrated Oil & Gas - 17.7% | |||
Cenovus Energy, Inc. (Canada) | 11,772 | 118,208 | |
Chevron Corp. | 857,764 | 104,887,380 | |
Exxon Mobil Corp. | 489,364 | 41,605,727 | |
Occidental Petroleum Corp. | 538,900 | 44,281,413 | |
Suncor Energy, Inc. | 720,700 | 27,887,265 | |
218,779,993 | |||
Oil & Gas Exploration & Production - 49.1% | |||
Aker Bp ASA | 66,400 | 2,817,946 | |
Anadarko Petroleum Corp. | 720,861 | 48,593,240 | |
Berry Petroleum Corp. | 427,600 | 7,534,312 | |
Cabot Oil & Gas Corp. | 1,089,800 | 24,542,296 | |
Centennial Resource Development, Inc. Class A (a) | 456,415 | 9,972,668 | |
Concho Resources, Inc. (a) | 175,155 | 26,754,926 | |
ConocoPhillips Co. | 214,042 | 16,566,851 | |
Continental Resources, Inc. (a) | 549,772 | 37,538,432 | |
Denbury Resources, Inc. (a) | 682,432 | 4,231,078 | |
Devon Energy Corp. | 835,581 | 33,373,105 | |
Diamondback Energy, Inc. | 368,063 | 49,758,437 | |
Encana Corp. (c) | 2,709,800 | 35,518,069 | |
Energen Corp. (a) | 40,700 | 3,507,119 | |
Enerplus Corp. | 50,500 | 623,170 | |
EOG Resources, Inc. | 716,301 | 91,378,519 | |
Extraction Oil & Gas, Inc. (a) | 502,402 | 5,672,119 | |
Gran Tierra Energy, Inc. (U.S.) (a) | 1,376,600 | 5,258,612 | |
Hess Corp. | 310,765 | 22,244,559 | |
Kosmos Energy Ltd. (a) | 202,900 | 1,897,115 | |
Magnolia Oil & Gas Corp. | 530,000 | 7,955,300 | |
Magnolia Oil & Gas Corp. Class A (a) | 657,000 | 9,861,570 | |
Noble Energy, Inc. | 486,000 | 15,158,340 | |
Northern Oil & Gas, Inc. (a) | 355,800 | 1,423,200 | |
Parex Resources, Inc. (a) | 804,900 | 13,678,284 | |
Parsley Energy, Inc. Class A (a) | 849,832 | 24,857,586 | |
PDC Energy, Inc. (a) | 223,280 | 10,931,789 | |
Pioneer Natural Resources Co. | 241,493 | 42,065,666 | |
Ring Energy, Inc. (a) | 235,694 | 2,335,728 | |
Viper Energy Partners LP | 612,800 | 25,798,880 | |
W&T Offshore, Inc. (a) | 236,000 | 2,275,040 | |
Whiting Petroleum Corp. (a) | 356,000 | 18,882,240 | |
WPX Energy, Inc. (a) | 283,979 | 5,713,657 | |
608,719,853 | |||
Oil & Gas Refining & Marketing - 17.4% | |||
Andeavor | 160,800 | 24,682,800 | |
Delek U.S. Holdings, Inc. | 1,222,373 | 51,865,286 | |
HollyFrontier Corp. | 150,700 | 10,533,930 | |
Marathon Petroleum Corp. | 232,700 | 18,609,019 | |
Phillips 66 Co. | 443,285 | 49,967,085 | |
Reliance Industries Ltd. | 318,598 | 5,527,243 | |
Valero Energy Corp. | 483,400 | 54,986,750 | |
216,172,113 | |||
Oil & Gas Storage & Transport - 3.5% | |||
Cheniere Energy, Inc. (a) | 249,700 | 17,351,653 | |
Delek Logistics Partners LP | 31,546 | 1,072,564 | |
Enterprise Products Partners LP | 205,100 | 5,892,523 | |
Euronav NV | 596,527 | 5,189,785 | |
Golar LNG Ltd. | 217,400 | 6,043,720 | |
Noble Midstream Partners LP (a)(d) | 45,454 | 1,609,526 | |
Teekay LNG Partners LP | 50,500 | 843,350 | |
The Williams Companies, Inc. | 205,382 | 5,584,337 | |
43,587,458 | |||
TOTAL OIL, GAS & CONSUMABLE FUELS | 1,089,918,161 | ||
Semiconductors & Semiconductor Equipment - 0.0% | |||
Semiconductor Equipment - 0.0% | |||
SolarEdge Technologies, Inc. (a)(c) | 12,400 | 466,860 | |
TOTAL COMMON STOCKS | |||
(Cost $1,026,285,451) | 1,223,267,935 | ||
Money Market Funds - 2.0% | |||
Fidelity Cash Central Fund, 2.11% (e) | 16,658,305 | 16,661,637 | |
Fidelity Securities Lending Cash Central Fund 2.11% (e)(f) | 7,731,923 | 7,732,696 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $24,394,333) | 24,394,333 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $1,050,679,784) | 1,247,662,268 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (7,111,828) | ||
NET ASSETS - 100% | $1,240,550,440 |
Legend
(a) Non-income producing
(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 $6,433,669 or 0.5% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,609,526 or 0.1% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Noble Midstream Partners LP | 6/21/17 | $1,838,614 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $215,306 |
Fidelity Securities Lending Cash Central Fund | 74,751 |
Total | $290,057 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.1% |
Canada | 6.7% |
Bermuda | 1.5% |
Curacao | 1.1% |
Others (Individually Less Than 1%) | 2.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Energy Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,503,658) — See accompanying schedule: Unaffiliated issuers (cost $1,026,285,451) | $1,223,267,935 | |
Fidelity Central Funds (cost $24,394,333) | 24,394,333 | |
Total Investment in Securities (cost $1,050,679,784) | $1,247,662,268 | |
Cash | 549,108 | |
Receivable for investments sold | 575,373 | |
Receivable for fund shares sold | 594,051 | |
Dividends receivable | 772,917 | |
Distributions receivable from Fidelity Central Funds | 30,126 | |
Other receivables | 10,640 | |
Total assets | 1,250,194,483 | |
Liabilities | ||
Payable for investments purchased | $635,748 | |
Payable for fund shares redeemed | 1,260,929 | |
Other payables and accrued expenses | 17,718 | |
Collateral on securities loaned | 7,729,648 | |
Total liabilities | 9,644,043 | |
Net Assets | $1,240,550,440 | |
Net Assets consist of: | ||
Paid in capital | $1,063,440,890 | |
Distributions in excess of net investment income | (2,405,832) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (17,466,277) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 196,981,659 | |
Net Assets, for 9,062,011 shares outstanding | $1,240,550,440 | |
Net Asset Value, offering price and redemption price per share ($1,240,550,440 ÷ 9,062,011 shares) | $136.90 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $17,233,953 | |
Income from Fidelity Central Funds (including $74,751 from security lending) | 290,057 | |
Total income | 17,524,010 | |
Expenses | ||
Custodian fees and expenses | $30,763 | |
Independent directors' fees and expenses | 5,165 | |
Miscellaneous | 21 | |
Total expenses before reductions | 35,949 | |
Expense reductions | (1,334) | |
Total expenses after reductions | 34,615 | |
Net investment income (loss) | 17,489,395 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (14,530,830) | |
Redemptions in-kind with affiliated entities | 75,772,210 | |
Fidelity Central Funds | 1,990 | |
Foreign currency transactions | (15,743) | |
Total net realized gain (loss) | 61,227,627 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $433,520) | 121,502,032 | |
Fidelity Central Funds | (3,403) | |
Assets and liabilities in foreign currencies | (982) | |
Total change in net unrealized appreciation (depreciation) | 121,497,647 | |
Net gain (loss) | 182,725,274 | |
Net increase (decrease) in net assets resulting from operations | $200,214,669 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $17,489,395 | $22,383,101 |
Net realized gain (loss) | 61,227,627 | 28,509,040 |
Change in net unrealized appreciation (depreciation) | 121,497,647 | (97,314,042) |
Net increase (decrease) in net assets resulting from operations | 200,214,669 | (46,421,901) |
Distributions to shareholders from net investment income | (20,361,801) | (19,197,625) |
Distributions to shareholders from net realized gain | (10,516,702) | (803,218) |
Total distributions | (30,878,503) | (20,000,843) |
Affiliated share transactions | ||
Proceeds from sales of shares | 428,772,992 | 150,404,019 |
Reinvestment of distributions | 30,878,503 | 20,000,500 |
Cost of shares redeemed | (328,763,579) | (168,642,695) |
Net increase (decrease) in net assets resulting from share transactions | 130,887,916 | 1,761,824 |
Total increase (decrease) in net assets | 300,224,082 | (64,660,920) |
Net Assets | ||
Beginning of period | 940,326,358 | 1,004,987,278 |
End of period | $1,240,550,440 | $940,326,358 |
Other Information | ||
Undistributed net investment income end of period | $– | $1,976,680 |
Distributions in excess of net investment income end of period | $(2,405,832) | $– |
Shares | ||
Sold | 3,357,137 | 1,212,563 |
Issued in reinvestment of distributions | 245,845 | 170,756 |
Redeemed | (2,493,997) | (1,315,136) |
Net increase (decrease) | 1,108,985 | 68,183 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Energy Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $118.24 | $127.46 | $103.49 | $154.78 | $144.89 |
Income from Investment Operations | |||||
Net investment income (loss)A | 2.00 | 2.84B | 1.72 | 2.32 | 2.37 |
Net realized and unrealized gain (loss) | 20.29 | (9.52) | 23.93 | (51.31) | 9.87 |
Total from investment operations | 22.29 | (6.68) | 25.65 | (48.99) | 12.24 |
Distributions from net investment income | (2.36)C | (2.44) | (1.68) | (2.30) | (2.35) |
Distributions from net realized gain | (1.27)C | (.10) | – | – | – |
Total distributions | (3.63) | (2.54) | (1.68) | (2.30) | (2.35) |
Net asset value, end of period | $136.90 | $118.24 | $127.46 | $103.49 | $154.78 |
Total ReturnD | 19.16% | (5.20)% | 25.02% | (31.92)% | 8.44% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductionsG | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyG | -% | -% | -% | -% | -% |
Expenses net of all reductionsG | -% | -% | -% | -% | -% |
Net investment income (loss) | 1.55% | 2.32%B | 1.55% | 1.80% | 1.52% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,240,550 | $940,326 | $1,004,987 | $803,804 | $1,106,807 |
Portfolio turnover rateH | 52%I | 82%I | 105% | 70% | 109%I |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $1.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.25%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Financials Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Financials Central Fund | 7.23% | 10.78% | 7.23% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Financials Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422702320_740.jpg)
Period Ending Values | ||
$20,102 | Fidelity® Financials Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Financials Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Co-Portfolio Managers Chris Lee and Samuel Wald: For the year, the fund returned 7.23%, trailing the 7.50% advance of the MSCI USA IMI Financials and Real Estate Linked Index and well behind the S&P 500. Higher short-term interest rates, strong U.S. economic growth and lower corporate tax rates generally aided financial stocks, but global trade tensions and a flattening yield curve were headwinds. Versus the MSCI index, positioning in the financial exchanges & data and the property & casualty insurance segments detracted most. In terms of individual disappointments, an underweighting in diversified bank JPMorgan Chase hurt, as higher interest rates, lower corporate tax rates, and share buybacks drove its 21% gain. Elsewhere, an overweighting in Hartford Financial Services Group hurt, as the multiline insurance company’s surprise purchase of a competitor’s U.S group life and disability business resulted in a -8% return. Conversely, stock picks in data processing & outsourced services, which is not part of the sector index, as well as in investment banking & brokerage aided relative performance. In addition, positioning in asset management & custody banks helped. Top contributors included online broker E*TRADE Financial (+20%), which gained in part due to rising interest rates and optimism it might be sold, and a non-index stake in fleet card company Wex (+65%), which rallied as improved economic growth and higher oil prices boosted transaction volumes. We sold off our stake in Wex this period to lock in profits.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Financials Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Citigroup, Inc. | 5.1 |
Bank of America Corp. | 5.1 |
JPMorgan Chase & Co. | 4.9 |
Wells Fargo & Co. | 4.3 |
Berkshire Hathaway, Inc. Class B | 4.0 |
Capital One Financial Corp. | 3.1 |
TD Ameritrade Holding Corp. | 3.0 |
American International Group, Inc. | 2.6 |
Hartford Financial Services Group, Inc. | 2.6 |
PNC Financial Services Group, Inc. | 2.5 |
37.2 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Banks | 30.7% | |
Equity Real Estate Investment Trusts (Reits) | 17.2% | |
Insurance | 16.0% | |
Capital Markets | 15.9% | |
Consumer Finance | 7.5% | |
All Others* | 12.7% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Financials Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
Banks - 30.7% | |||
Diversified Banks - 19.4% | |||
Bank of America Corp. | 6,250,000 | $184,125,000 | |
Citigroup, Inc. | 2,600,000 | 186,523,996 | |
JPMorgan Chase & Co. | 1,594,900 | 179,968,516 | |
Wells Fargo & Co. | 2,950,000 | 155,052,000 | |
705,669,512 | |||
Regional Banks - 11.3% | |||
Bank of the Ozarks, Inc. | 500,000 | 18,980,000 | |
CoBiz, Inc. | 825,000 | 18,265,500 | |
East West Bancorp, Inc. | 328,846 | 19,852,433 | |
First Citizen Bancshares, Inc. | 30,000 | 13,568,400 | |
First Hawaiian, Inc. | 600,000 | 16,296,000 | |
First Horizon National Corp. | 2,600,000 | 44,876,000 | |
Huntington Bancshares, Inc. | 5,700,000 | 85,044,000 | |
M&T Bank Corp. | 340,000 | 55,943,600 | |
PNC Financial Services Group, Inc. | 675,000 | 91,928,250 | |
Popular, Inc. | 500,000 | 25,625,000 | |
Signature Bank | 175,000 | 20,097,000 | |
Wintrust Financial Corp. | 23,096 | 1,961,774 | |
412,437,957 | |||
TOTAL BANKS | 1,118,107,469 | ||
Capital Markets - 15.9% | |||
Asset Management & Custody Banks - 4.5% | |||
Apollo Global Management LLC Class A | 650,000 | 22,457,500 | |
Bank of New York Mellon Corp. | 1,400,000 | 71,386,000 | |
Northern Trust Corp. | 525,000 | 53,618,250 | |
Oaktree Capital Group LLC Class A | 398,250 | 16,487,550 | |
163,949,300 | |||
Financial Exchanges & Data - 2.5% | |||
Cboe Global Markets, Inc. | 925,000 | 88,763,000 | |
Investment Banking & Brokerage - 8.9% | |||
E*TRADE Financial Corp. (a) | 1,555,200 | 81,476,928 | |
Goldman Sachs Group, Inc. | 335,000 | 75,120,400 | |
Hamilton Lane, Inc. Class A | 450,000 | 19,926,000 | |
Investment Technology Group, Inc. | 700,000 | 15,162,000 | |
PJT Partners, Inc. | 225,000 | 11,778,750 | |
TD Ameritrade Holding Corp. | 2,055,200 | 108,576,216 | |
Virtu Financial, Inc. Class A | 600,000 | 12,270,000 | |
324,310,294 | |||
TOTAL CAPITAL MARKETS | 577,022,594 | ||
Consumer Finance - 7.5% | |||
Consumer Finance - 7.5% | |||
Capital One Financial Corp. | 1,200,400 | 113,953,972 | |
OneMain Holdings, Inc. (a) | 1,150,000 | 38,651,500 | |
SLM Corp. (a) | 5,700,000 | 63,555,000 | |
Synchrony Financial | 1,800,000 | 55,944,000 | |
272,104,472 | |||
Diversified Financial Services - 4.0% | |||
Multi-Sector Holdings - 4.0% | |||
Berkshire Hathaway, Inc. Class B (a) | 675,000 | 144,524,250 | |
Equity Real Estate Investment Trusts (REITs) - 17.2% | |||
Diversified REITs - 0.5% | |||
VEREIT, Inc. | 993,324 | 7,211,532 | |
Washington REIT (SBI) | 381,800 | 11,702,170 | |
18,913,702 | |||
Health Care REITs - 1.6% | |||
CareTrust (REIT), Inc. | 258,450 | 4,577,150 | |
Healthcare Realty Trust, Inc. | 427,821 | 12,518,042 | |
Sabra Health Care REIT, Inc. | 249,800 | 5,775,376 | |
Ventas, Inc. | 397,592 | 21,621,053 | |
Welltower, Inc. | 180,603 | 11,616,385 | |
56,108,006 | |||
Hotel & Resort REITs - 0.7% | |||
Braemar Hotels & Resorts, Inc. | 173,400 | 2,040,918 | |
DiamondRock Hospitality Co. | 586,600 | 6,845,622 | |
Host Hotels & Resorts, Inc. | 345,211 | 7,283,952 | |
Sunstone Hotel Investors, Inc. | 627,100 | 10,259,356 | |
26,429,848 | |||
Industrial REITs - 1.8% | |||
Americold Realty Trust | 200,000 | 5,004,000 | |
Duke Realty Corp. | 607,500 | 17,234,775 | |
Prologis, Inc. | 474,669 | 32,177,812 | |
Rexford Industrial Realty, Inc. | 165,400 | 5,286,184 | |
Terreno Realty Corp. | 105,000 | 3,958,500 | |
63,661,271 | |||
Office REITs - 1.9% | |||
Boston Properties, Inc. | 211,989 | 26,093,726 | |
Corporate Office Properties Trust (SBI) | 293,700 | 8,761,071 | |
Douglas Emmett, Inc. | 171,100 | 6,453,892 | |
Highwoods Properties, Inc. (SBI) | 222,725 | 10,525,984 | |
SL Green Realty Corp. | 187,700 | 18,306,381 | |
70,141,054 | |||
Residential REITs - 2.6% | |||
AvalonBay Communities, Inc. | 148,294 | 26,863,458 | |
Clipper Realty, Inc. | 278,323 | 3,765,710 | |
Equity Lifestyle Properties, Inc. | 138,344 | 13,343,279 | |
Equity Residential (SBI) | 295,225 | 19,561,609 | |
Essex Property Trust, Inc. | 71,923 | 17,744,123 | |
Invitation Homes, Inc. | 217,400 | 4,980,634 | |
UDR, Inc. | 211,700 | 8,559,031 | |
94,817,844 | |||
Retail REITs - 2.5% | |||
Acadia Realty Trust (SBI) | 300,000 | 8,409,000 | |
Agree Realty Corp. | 76,873 | 4,083,494 | |
DDR Corp. | 260,691 | 3,490,652 | |
National Retail Properties, Inc. | 293,337 | 13,147,364 | |
Retail Properties America, Inc. | 136,700 | 1,666,373 | |
Simon Property Group, Inc. | 188,246 | 33,272,481 | |
Spirit Realty Capital, Inc. | 892,300 | 7,191,938 | |
Taubman Centers, Inc. | 116,625 | 6,977,674 | |
Urban Edge Properties | 609,285 | 13,453,013 | |
91,691,989 | |||
Specialized REITs - 5.6% | |||
American Tower Corp. | 371,788 | 54,020,796 | |
CoreSite Realty Corp. | 38,470 | 4,275,556 | |
Corrections Corp. of America | 168,900 | 4,109,337 | |
Crown Castle International Corp. | 119,600 | 13,315,068 | |
Equinix, Inc. | 92,852 | 40,194,702 | |
Four Corners Property Trust, Inc. | 186,700 | 4,796,323 | |
Gaming & Leisure Properties | 148,466 | 5,233,427 | |
Outfront Media, Inc. | 395,128 | 7,882,804 | |
Potlatch Corp. | 217,508 | 8,906,953 | |
Public Storage | 156,374 | 31,529,690 | |
SBA Communications Corp. Class A (a) | 119,491 | 19,193,839 | |
Weyerhaeuser Co. | 316,614 | 10,217,134 | |
203,675,629 | |||
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 625,439,343 | ||
Hotels, Restaurants & Leisure - 0.2% | |||
Hotels, Resorts & Cruise Lines - 0.2% | |||
Hilton Grand Vacations, Inc. (a) | 113,500 | 3,756,850 | |
Hilton Worldwide Holdings, Inc. | 53,100 | 4,289,418 | |
8,046,268 | |||
Insurance - 16.0% | |||
Life & Health Insurance - 4.0% | |||
MetLife, Inc. | 1,900,000 | 88,768,000 | |
Torchmark Corp. | 649,697 | 56,322,233 | |
145,090,233 | |||
Multi-Line Insurance - 5.2% | |||
American International Group, Inc. | 1,800,000 | 95,832,000 | |
Hartford Financial Services Group, Inc. | 1,850,000 | 92,426,000 | |
188,258,000 | |||
Property & Casualty Insurance - 4.9% | |||
Aspen Insurance Holdings Ltd. | 50,000 | 2,090,000 | |
Axis Capital Holdings Ltd. | 300,000 | 17,313,000 | |
Beazley PLC | 2,000,000 | 14,884,828 | |
FNF Group | 1,000,000 | 39,350,000 | |
Hiscox Ltd. | 750,000 | 16,080,698 | |
RSA Insurance Group PLC | 1,750,000 | 13,115,463 | |
The Travelers Companies, Inc. | 600,000 | 77,826,000 | |
180,659,989 | |||
Reinsurance - 1.9% | |||
Reinsurance Group of America, Inc. | 475,000 | 68,666,000 | |
TOTAL INSURANCE | 582,674,222 | ||
IT Services - 0.5% | |||
Data Processing & Outsourced Services - 0.5% | |||
Visa, Inc. Class A | 110,000 | 16,509,900 | |
Mortgage Real Estate Investment Trusts - 1.9% | |||
Mortgage REITs - 1.9% | |||
AGNC Investment Corp. | 1,750,000 | 32,602,500 | |
MFA Financial, Inc. | 4,750,000 | 34,912,500 | |
67,515,000 | |||
Professional Services - 0.9% | |||
Research & Consulting Services - 0.9% | |||
Equifax, Inc. | 250,000 | 32,642,500 | |
Real Estate Management & Development - 0.9% | |||
Real Estate Development - 0.4% | |||
Howard Hughes Corp. (a) | 87,276 | 10,841,425 | |
VICI Properties, Inc. | 222,800 | 4,816,936 | |
15,658,361 | |||
Real Estate Services - 0.5% | |||
Jones Lang LaSalle, Inc. | 123,800 | 17,866,816 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 33,525,177 | ||
Software - 0.4% | |||
Application Software - 0.4% | |||
Black Knight, Inc. (a) | 288,370 | 14,980,822 | |
Thrifts & Mortgage Finance - 1.5% | |||
Thrifts & Mortgage Finance - 1.5% | |||
Essent Group Ltd. (a) | 500,000 | 22,125,000 | |
MGIC Investment Corp. (a) | 2,000,000 | 26,620,000 | |
Radian Group, Inc. | 300,000 | 6,201,000 | |
54,946,000 | |||
TOTAL COMMON STOCKS | |||
(Cost $3,002,090,138) | 3,548,038,017 | ||
Money Market Funds - 2.3% | |||
Fidelity Cash Central Fund, 2.11% (b) | |||
(Cost $84,793,076) | 84,776,121 | 84,793,076 | |
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $3,086,883,214) | 3,632,831,093 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 4,389,725 | ||
NET ASSETS - 100% | $3,637,220,818 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $1,275,079 |
Fidelity Securities Lending Cash Central Fund | 7,087 |
Total | $1,282,166 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Financials Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $3,002,090,138) | $3,548,038,017 | |
Fidelity Central Funds (cost $84,793,076) | 84,793,076 | |
Total Investment in Securities (cost $3,086,883,214) | $3,632,831,093 | |
Receivable for investments sold | 19,473,589 | |
Receivable for fund shares sold | 1,950,343 | |
Dividends receivable | 7,062,900 | |
Distributions receivable from Fidelity Central Funds | 158,513 | |
Total assets | 3,661,476,438 | |
Liabilities | ||
Payable to custodian bank | $17 | |
Payable for investments purchased | 20,599,546 | |
Payable for fund shares redeemed | 3,634,595 | |
Other payables and accrued expenses | 21,462 | |
Total liabilities | 24,255,620 | |
Net Assets | $3,637,220,818 | |
Net Assets consist of: | ||
Paid in capital | $2,956,669,722 | |
Undistributed net investment income | 13,892,579 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 120,709,220 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 545,949,297 | |
Net Assets, for 34,511,084 shares outstanding | $3,637,220,818 | |
Net Asset Value, offering price and redemption price per share ($3,637,220,818 ÷ 34,511,084 shares) | $105.39 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $69,944,970 | |
Income from Fidelity Central Funds (including $7,087 from security lending) | 1,282,166 | |
Total income | 71,227,136 | |
Expenses | ||
Custodian fees and expenses | $48,239 | |
Independent directors' fees and expenses | 16,177 | |
Miscellaneous | 66 | |
Total expenses before reductions | 64,482 | |
Expense reductions | (1,436) | |
Total expenses after reductions | 63,046 | |
Net investment income (loss) | 71,164,090 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 149,013,258 | |
Redemptions in-kind with affiliated entities | 211,708,985 | |
Fidelity Central Funds | (1,924) | |
Foreign currency transactions | 38,275 | |
Total net realized gain (loss) | 360,758,594 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (204,280,358) | |
Fidelity Central Funds | (122) | |
Assets and liabilities in foreign currencies | 1,280 | |
Total change in net unrealized appreciation (depreciation) | (204,279,200) | |
Net gain (loss) | 156,479,394 | |
Net increase (decrease) in net assets resulting from operations | $227,643,484 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $71,164,090 | $49,326,890 |
Net realized gain (loss) | 360,758,594 | 200,982,383 |
Change in net unrealized appreciation (depreciation) | (204,279,200) | 427,820,853 |
Net increase (decrease) in net assets resulting from operations | 227,643,484 | 678,130,126 |
Distributions to shareholders from net investment income | (61,092,879) | (43,257,778) |
Distributions to shareholders from net realized gain | (190,098,519) | (3,602,990) |
Total distributions | (251,191,398) | (46,860,768) |
Affiliated share transactions | ||
Proceeds from sales of shares | 1,316,467,001 | 270,611,265 |
Reinvestment of distributions | 251,191,398 | 46,860,360 |
Cost of shares redeemed | (936,975,564) | (462,706,324) |
Net increase (decrease) in net assets resulting from share transactions | 630,682,835 | (145,234,699) |
Total increase (decrease) in net assets | 607,134,921 | 486,034,659 |
Net Assets | ||
Beginning of period | 3,030,085,897 | 2,544,051,238 |
End of period | $3,637,220,818 | $3,030,085,897 |
Other Information | ||
Undistributed net investment income end of period | $13,892,579 | $6,084,142 |
Shares | ||
Sold | 12,423,667 | 2,840,660 |
Issued in reinvestment of distributions | 2,355,378 | 486,452 |
Redeemed | (8,820,676) | (4,796,839) |
Net increase (decrease) | 5,958,369 | (1,469,727) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Financials Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $106.12 | $84.74 | $80.86 | $83.90 | $72.85 |
Income from Investment Operations | |||||
Net investment income (loss)A | 2.18 | 1.70 | 1.59 | 1.57 | 1.54 |
Net realized and unrealized gain (loss) | 5.49 | 21.29 | 3.79 | (3.30) | 10.84 |
Total from investment operations | 7.67 | 22.99 | 5.38 | (1.73) | 12.38 |
Distributions from net investment income | (1.90) | (1.50) | (1.50) | (1.31) | (1.33) |
Distributions from net realized gain | (6.50) | (.12) | – | – | – |
Total distributions | (8.40) | (1.61)B | (1.50) | (1.31) | (1.33) |
Net asset value, end of period | $105.39 | $106.12 | $84.74 | $80.86 | $83.90 |
Total ReturnC | 7.23% | 27.34% | 6.68% | (2.18)% | 17.08% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductionsF | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyF | -% | -% | -% | -% | -% |
Expenses net of all reductionsF | -% | -% | -% | -% | -% |
Net investment income (loss) | 2.02% | 1.75% | 1.94% | 1.80% | 1.92% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $3,637,221 | $3,030,086 | $2,544,051 | $2,301,182 | $2,387,026 |
Portfolio turnover rateG | 48%H | 52%H | 57% | 40% | 43%H |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.61 per share is comprised of distributions from net investment income of $1.495 and distributions from net realized gain of $.119 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than .005%.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Health Care Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Health Care Central Fund | 25.71% | 18.34% | 18.46% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Health Care Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422701810_740.jpg)
Period Ending Values | ||
$54,422 | Fidelity® Health Care Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Health Care Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Eddie Yoon: For the fiscal year, the fund gained 25.71%, outpacing the 20.06% advance of the MSCI U.S. IMI Health Care 25/50 Index, as well as the broad-market S&P 500®. Health care stocks outpaced the broader market the past 12 months because companies here were generally boosted by continued strong demand for products and services, favorable fundamentals and good financial results, among other factors. The fund’s outperformance of the MSCI sector index was driven by my decision to hold what we consider more-opportunistic stocks and avoiding some more-defensive index names. By industry, our picks in biotechnology made by far the biggest contribution to the fund’s relative result, although an overweighting here detracted somewhat. Positioning in health care equipment also added meaningful value. Conversely, the fund’s biggest relative detractor was weak security selection in pharmaceuticals. Among individual stocks, relative performance was helped most by our avoidance of lagging index component Celgene (-39%). Shares of the biotech firm suffered amid multiple setbacks, including news of a refusal-to-file letter from the U.S. Food and Drug Administration for Celgene’s candidate to treat multiple sclerosis, as well as the resignation of the firm’s president/chief financial officer. Timely ownership of gene therapy firm Sarepta Therapeutics also contributed, as we established an overweighted stake this period. Conversely, a position in biopharma company Tesaro was the biggest relative detractor by a wide margin, followed by Insmed, a biopharmaceutical firm focused on treatments for rare diseases. We sold our stake in Tesaro by September 30.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Health Care Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
UnitedHealth Group, Inc. | 9.7 |
Becton, Dickinson & Co. | 7.3 |
Boston Scientific Corp. | 7.0 |
Humana, Inc. | 4.5 |
HCA Holdings, Inc. | 3.7 |
AstraZeneca PLC (United Kingdom) | 3.5 |
Amgen, Inc. | 3.0 |
Sarepta Therapeutics, Inc. | 2.9 |
Stryker Corp. | 2.4 |
Cigna Corp. | 2.4 |
46.4 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Health Care Equipment & Supplies | 30.9% | |
Health Care Providers & Services | 27.4% | |
Biotechnology | 22.3% | |
Pharmaceuticals | 14.7% | |
Health Care Technology | 1.1% | |
All Others* | 3.6% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Health Care Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value | ||
Biotechnology - 22.1% | |||
Biotechnology - 22.1% | |||
Abeona Therapeutics, Inc. (a)(b) | 760,000 | $9,728,000 | |
AC Immune SA (a) | 387,987 | 3,103,896 | |
Acceleron Pharma, Inc. (a) | 300,000 | 17,169,000 | |
Acorda Therapeutics, Inc. (a) | 460,000 | 9,039,000 | |
Alexion Pharmaceuticals, Inc. (a) | 550,000 | 76,455,500 | |
Alnylam Pharmaceuticals, Inc. (a) | 235,971 | 20,652,182 | |
Amgen, Inc. | 480,000 | 99,499,200 | |
AnaptysBio, Inc. (a) | 195,562 | 19,511,221 | |
Argenx SE ADR (a) | 250,000 | 18,960,000 | |
Array BioPharma, Inc. (a) | 880,000 | 13,376,000 | |
Ascendis Pharma A/S sponsored ADR (a) | 290,000 | 20,549,400 | |
Atara Biotherapeutics, Inc. (a) | 440,000 | 18,194,000 | |
BeiGene Ltd. ADR (a) | 194,300 | 33,462,346 | |
Biogen, Inc. (a) | 60,000 | 21,198,600 | |
bluebird bio, Inc. (a) | 99,324 | 14,501,304 | |
Blueprint Medicines Corp. (a) | 353,109 | 27,563,689 | |
Cellectis SA sponsored ADR (a) | 201,200 | 5,677,864 | |
CytomX Therapeutics, Inc. (a) | 159,916 | 2,958,446 | |
FibroGen, Inc. (a) | 170,000 | 10,327,500 | |
GlycoMimetics, Inc. (a) | 500,000 | 7,200,000 | |
Insmed, Inc. (a) | 1,000,000 | 20,220,000 | |
Intercept Pharmaceuticals, Inc. (a) | 130,351 | 16,471,152 | |
La Jolla Pharmaceutical Co. (a)(b) | 250,000 | 5,032,500 | |
Neurocrine Biosciences, Inc. (a) | 435,000 | 53,483,250 | |
Sarepta Therapeutics, Inc. (a) | 600,000 | 96,906,000 | |
Scholar Rock Holding Corp. (b) | 16,900 | 435,175 | |
uniQure B.V. (a) | 200,000 | 7,278,000 | |
Vertex Pharmaceuticals, Inc. (a) | 340,000 | 65,531,600 | |
Viking Therapeutics, Inc. (a)(b) | 500,000 | 8,710,000 | |
Xencor, Inc. (a) | 395,533 | 15,413,921 | |
738,608,746 | |||
Diversified Consumer Services - 0.2% | |||
Specialized Consumer Services - 0.2% | |||
Carriage Services, Inc. | 240,000 | 5,172,000 | |
Diversified Financial Services - 0.0% | |||
Other Diversified Financial Services - 0.0% | |||
Allakos, Inc. (a) | 21,900 | 985,281 | |
Health Care Equipment & Supplies - 30.9% | |||
Health Care Equipment - 29.7% | |||
Atricure, Inc. (a) | 600,000 | 21,018,000 | |
Baxter International, Inc. | 1,022,700 | 78,839,943 | |
Becton, Dickinson & Co. | 930,000 | 242,730,000 | |
Boston Scientific Corp. (a) | 6,080,000 | 234,080,000 | |
Danaher Corp. | 170,000 | 18,472,200 | |
DexCom, Inc. (a) | 54,000 | 7,724,160 | |
Fisher & Paykel Healthcare Corp. | 1,000,000 | 9,975,892 | |
Insulet Corp. (a) | 440,000 | 46,618,000 | |
Integra LifeSciences Holdings Corp. (a) | 730,000 | 48,085,100 | |
Intuitive Surgical, Inc. (a) | 136,000 | 78,064,000 | |
Masimo Corp. (a) | 172,100 | 21,433,334 | |
Penumbra, Inc. (a) | 260,000 | 38,922,000 | |
Stryker Corp. | 450,000 | 79,956,000 | |
Teleflex, Inc. | 95,000 | 25,278,550 | |
Wright Medical Group NV (a) | 1,494,300 | 43,364,586 | |
994,561,765 | |||
Health Care Supplies - 1.2% | |||
Align Technology, Inc. (a) | 100,000 | 39,122,000 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 1,033,683,765 | ||
Health Care Providers & Services - 27.2% | |||
Health Care Distributors & Services - 2.6% | |||
Amplifon SpA | 400,000 | 8,888,999 | |
EBOS Group Ltd. | 1,046,022 | 15,572,769 | |
Henry Schein, Inc. (a) | 730,000 | 62,071,900 | |
86,533,668 | |||
Health Care Facilities - 3.7% | |||
HCA Holdings, Inc. | 880,000 | 122,425,600 | |
Health Care Services - 1.2% | |||
G1 Therapeutics, Inc. (a) | 340,000 | 17,778,600 | |
Premier, Inc. (a) | 280,000 | 12,818,400 | |
United Drug PLC (United Kingdom) | 1,280,000 | 11,353,135 | |
41,950,135 | |||
Managed Health Care - 19.7% | |||
Centene Corp. (a) | 269,000 | 38,945,820 | |
Cigna Corp. | 380,000 | 79,135,000 | |
Humana, Inc. | 450,000 | 152,334,000 | |
Molina Healthcare, Inc. (a) | 128,000 | 19,033,600 | |
Notre Dame Intermedica Participacoes SA | 2,000,000 | 13,059,143 | |
UnitedHealth Group, Inc. | 1,220,000 | 324,568,797 | |
Wellcare Health Plans, Inc. (a) | 100,000 | 32,049,000 | |
659,125,360 | |||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 910,034,763 | ||
Health Care Technology - 1.1% | |||
Health Care Technology - 1.1% | |||
Castlight Health, Inc. (a) | 700,500 | 1,891,350 | |
Castlight Health, Inc. Class B (a) | 762,278 | 2,058,151 | |
Teladoc Health, Inc. (a)(b) | 390,000 | 33,676,500 | |
37,626,001 | |||
Internet Software & Services - 0.8% | |||
Internet Software & Services - 0.8% | |||
Benefitfocus, Inc. (a) | 700,000 | 28,315,000 | |
Life Sciences Tools & Services - 1.1% | |||
Life Sciences Tools & Services - 1.1% | |||
Lonza Group AG | 74,000 | 25,259,833 | |
Morphosys AG (a) | 108,800 | 11,634,278 | |
36,894,111 | |||
Pharmaceuticals - 14.6% | |||
Pharmaceuticals - 14.6% | |||
Allergan PLC | 80,000 | 15,238,400 | |
Amneal Pharmaceuticals, Inc. (a) | 460,000 | 10,207,400 | |
Amneal Pharmaceuticals, Inc. (c) | 540,541 | 11,994,605 | |
AstraZeneca PLC (United Kingdom) | 1,500,000 | 116,916,133 | |
Dechra Pharmaceuticals PLC | 911,700 | 25,881,387 | |
Eli Lilly & Co. | 430,000 | 46,143,300 | |
Indivior PLC (a) | 2,504,400 | 6,011,089 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 1,800,000 | 16,640,340 | |
Mylan NV (a) | 640,000 | 23,424,000 | |
MyoKardia, Inc. (a) | 138,643 | 9,039,524 | |
Nektar Therapeutics (a) | 660,000 | 40,233,600 | |
Perrigo Co. PLC | 770,000 | 54,516,000 | |
Recordati SpA | 270,000 | 9,141,179 | |
Roche Holding AG (participation certificate) | 250,000 | 60,453,861 | |
RPI International Holdings LP (a)(c)(d) | 41,845 | 6,175,067 | |
The Medicines Company (a)(b) | 440,000 | 13,160,400 | |
Theravance Biopharma, Inc. (a)(b) | 463,908 | 15,155,874 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 2,800,000 | 7,394,542 | |
487,726,701 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,434,886,193) | 3,279,046,368 | ||
Convertible Preferred Stocks - 0.6% | |||
Biotechnology - 0.2% | |||
Biotechnology - 0.2% | |||
BioNTech AG Series A (c)(d) | 25,477 | 7,509,197 | |
Generation Bio Series B (c)(d) | 49,800 | 455,456 | |
7,964,653 | |||
Health Care Providers & Services - 0.2% | |||
Health Care Services - 0.2% | |||
1Life Healthcare, Inc. Series G (a)(c)(d) | 438,101 | 5,445,595 | |
Pharmaceuticals - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Harmony Biosciences II, Inc. Series A (c)(d) | 3,606,378 | 3,606,378 | |
Software - 0.1% | |||
Application Software - 0.1% | |||
Outset Medical, Inc.: | |||
Series C (a)(c)(d) | 997,101 | 3,100,984 | |
Series D (c)(d) | 482,315 | 1,500,000 | |
4,600,984 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $16,610,750) | 21,617,610 | ||
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund, 2.11% (e) | 44,831,330 | 44,840,297 | |
Fidelity Securities Lending Cash Central Fund 2.11% (e)(f) | 36,163,707 | 36,167,323 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $81,007,620) | 81,007,620 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $2,532,504,563) | 3,381,671,598 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (35,087,713) | ||
NET ASSETS - 100% | $3,346,583,885 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $39,787,281 or 1.2% of net assets.
(d) Level 3 security
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
1Life Healthcare, Inc. Series G | 4/10/14 | $2,885,246 |
Amneal Pharmaceuticals, Inc. | 5/4/18 | $9,864,873 |
BioNTech AG Series A | 12/29/17 | $5,579,683 |
Generation Bio Series B | 2/21/18 | $455,456 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $3,606,378 |
Outset Medical, Inc. Series C | 4/19/17 | $2,583,987 |
Outset Medical, Inc. Series D | 8/20/18 | $1,500,000 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $5,567,439 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $767,236 |
Fidelity Securities Lending Cash Central Fund | 733,059 |
Total | $1,500,295 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, 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: | ||||
Common Stocks | $3,279,046,368 | $3,095,501,307 | $177,369,994 | $6,175,067 |
Convertible Preferred Stocks | 21,617,610 | -- | -- | 21,617,610 |
Money Market Funds | 81,007,620 | 81,007,620 | -- | -- |
Total Investments in Securities: | $3,381,671,598 | $3,176,508,927 | $177,369,994 | $27,792,677 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 82.3% |
United Kingdom | 4.5% |
Netherlands | 2.8% |
Switzerland | 2.7% |
Ireland | 2.3% |
Cayman Islands | 1.6% |
Others (Individually Less Than 1%) | 3.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Health Care Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $35,749,373) — See accompanying schedule: Unaffiliated issuers (cost $2,451,496,943) | $3,300,663,978 | |
Fidelity Central Funds (cost $81,007,620) | 81,007,620 | |
Total Investment in Securities (cost $2,532,504,563) | $3,381,671,598 | |
Cash | 104,613 | |
Receivable for investments sold | 5,582,182 | |
Receivable for fund shares sold | 1,549,653 | |
Dividends receivable | 1,673,978 | |
Distributions receivable from Fidelity Central Funds | 78,097 | |
Total assets | 3,390,660,121 | |
Liabilities | ||
Payable for investments purchased | $4,663,371 | |
Payable for fund shares redeemed | 3,214,189 | |
Other payables and accrued expenses | 37,258 | |
Collateral on securities loaned | 36,161,418 | |
Total liabilities | 44,076,236 | |
Net Assets | $3,346,583,885 | |
Net Assets consist of: | ||
Paid in capital | $2,379,930,893 | |
Undistributed net investment income | 3,486,333 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 113,997,395 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 849,169,264 | |
Net Assets, for 6,924,898 shares outstanding | $3,346,583,885 | |
Net Asset Value, offering price and redemption price per share ($3,346,583,885 ÷ 6,924,898 shares) | $483.27 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $23,019,248 | |
Income from Fidelity Central Funds (including $733,059 from security lending) | 1,500,295 | |
Total income | 24,519,543 | |
Expenses | ||
Custodian fees and expenses | $82,338 | |
Independent directors' fees and expenses | 12,840 | |
Miscellaneous | 51 | |
Total expenses before reductions | 95,229 | |
Expense reductions | (6,042) | |
Total expenses after reductions | 89,187 | |
Net investment income (loss) | 24,430,356 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 138,926,236 | |
Redemptions in-kind with affiliated entities | 219,905,327 | |
Fidelity Central Funds | 4,836 | |
Foreign currency transactions | (138,560) | |
Total net realized gain (loss) | 358,697,839 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 303,153,262 | |
Fidelity Central Funds | (8,035) | |
Assets and liabilities in foreign currencies | (46,172) | |
Total change in net unrealized appreciation (depreciation) | 303,099,055 | |
Net gain (loss) | 661,796,894 | |
Net increase (decrease) in net assets resulting from operations | $686,227,250 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $24,430,356 | $19,629,276 |
Net realized gain (loss) | 358,697,839 | 68,783,111 |
Change in net unrealized appreciation (depreciation) | 303,099,055 | 231,574,812 |
Net increase (decrease) in net assets resulting from operations | 686,227,250 | 319,987,199 |
Distributions to shareholders from net investment income | (23,298,937) | (17,273,204) |
Distributions to shareholders from net realized gain | (75,390,756) | – |
Total distributions | (98,689,693) | (17,273,204) |
Affiliated share transactions | ||
Proceeds from sales of shares | 1,130,407,533 | 320,100,993 |
Reinvestment of distributions | 98,689,693 | 17,272,856 |
Cost of shares redeemed | (805,149,604) | (263,237,243) |
Net increase (decrease) in net assets resulting from share transactions | 423,947,622 | 74,136,606 |
Total increase (decrease) in net assets | 1,011,485,179 | 376,850,601 |
Net Assets | ||
Beginning of period | 2,335,098,706 | 1,958,248,105 |
End of period | $3,346,583,885 | $2,335,098,706 |
Other Information | ||
Undistributed net investment income end of period | $3,486,333 | $2,337,670 |
Shares | ||
Sold | 2,775,832 | 930,340 |
Issued in reinvestment of distributions | 253,161 | 48,063 |
Redeemed | (1,940,103) | (759,261) |
Net increase (decrease) | 1,088,890 | 219,142 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Health Care Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $400.12 | $348.64 | $326.12 | $309.84 | $222.42 |
Income from Investment Operations | |||||
Net investment income (loss)A | 3.66 | 3.39 | 2.85 | 2.36 | 1.34 |
Net realized and unrealized gain (loss) | 95.26 | 51.07 | 22.25 | 15.99 | 87.35 |
Total from investment operations | 98.92 | 54.46 | 25.10 | 18.35 | 88.69 |
Distributions from net investment income | (3.54) | (2.98) | (2.58) | (2.07) | (1.27) |
Distributions from net realized gain | (12.23) | – | – | – | – |
Total distributions | (15.77) | (2.98) | (2.58) | (2.07) | (1.27) |
Net asset value, end of period | $483.27 | $400.12 | $348.64 | $326.12 | $309.84 |
Total ReturnB | 25.71% | 15.72% | 7.73% | 5.85% | 39.95% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | - %E | - %E | - %E | - %E | .01% |
Expenses net of fee waivers, if any | - %E | - %E | - %E | - %E | .01% |
Expenses net of all reductions | - %E | - %E | - %E | - %E | .01% |
Net investment income (loss) | .87% | .95% | .85% | .66% | .49% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $3,346,584 | $2,335,099 | $1,958,248 | $1,749,910 | $1,806,204 |
Portfolio turnover rateF | 75%G | 79%G | 68% | 97% | 131%G |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount represents less than .005%.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Industrials Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Industrials Central Fund | 14.76% | 12.11% | 13.75% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Industrials Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422703086_740.jpg)
Period Ending Values | ||
$36,281 | Fidelity® Industrials Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Industrials Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Tobias Welo: For the year, the fund returned 14.76%, topping the 11.93% return of the MSCI U.S. IMI Industrials 25/50 Linked Index but trailed the S&P 500®. Among the 11 S&P 500® sectors, industrials finished toward the middle of the pack, lifted by expectations of healthy U.S. capital spending but also reflecting worries about trade tensions. Versus the MSCI sector index, the fund was particularly aided by large underweightings in industrial conglomerates General Electric and 3M. I sold off the fund's small stake in 3M during the past year. GE stock returned roughly -52% for the period, hampered by investors’ frustration with a lack of progress on the company’s turnaround plan. I increased our stake here as the stock declined to what I considered a more attractive level. Overweighting heavy equipment maker Caterpillar (+25%) also paid off. The stock benefited earlier in the period from stronger demand driven by the synchronous global economic expansion and a weaker U.S. dollar, among other factors. Conversely, positioning in security & alarm services, airlines, and research & consulting services detracted from relative results. At the stock level, an underweighting in aerospace & defense stock Boeing hurt most. Shares of Boeing gained roughly 49%, mainly in the period’s first half, aided by the Trump administration’s promise to boost military spending, as well as an anticipated cash boost from December’s tax-reform package. Mostly avoiding railroad CSX (+38%) also detracted.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Industrials Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
United Technologies Corp. | 6.4 |
Honeywell International, Inc. | 5.8 |
Union Pacific Corp. | 5.3 |
Northrop Grumman Corp. | 5.2 |
Ingersoll-Rand PLC | 5.1 |
The Boeing Co. | 4.5 |
General Electric Co. | 4.0 |
General Dynamics Corp. | 3.6 |
Caterpillar, Inc. | 3.3 |
Fortive Corp. | 2.8 |
46.0 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Aerospace & Defense | 28.3% | |
Machinery | 21.1% | |
Industrial Conglomerates | 11.5% | |
Road & Rail | 9.7% | |
Electrical Equipment | 7.8% | |
All Others* | 21.6% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Industrials Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value | ||
Aerospace & Defense - 28.3% | |||
Aerospace & Defense - 28.3% | |||
Bombardier, Inc. Class B (sub. vtg.) (a) | 7,609,100 | $27,098,564 | |
General Dynamics Corp. | 382,589 | 78,323,620 | |
Huntington Ingalls Industries, Inc. | 160,500 | 41,100,840 | |
Moog, Inc. Class A | 224,200 | 19,274,474 | |
Northrop Grumman Corp. | 356,396 | 113,109,399 | |
Raytheon Co. | 142,214 | 29,389,945 | |
Spirit AeroSystems Holdings, Inc. Class A | 265,700 | 24,356,719 | |
Teledyne Technologies, Inc. (a) | 48,656 | 12,002,462 | |
Textron, Inc. | 177,100 | 12,657,337 | |
The Boeing Co. | 259,700 | 96,582,430 | |
TransDigm Group, Inc. | 47,872 | 17,822,746 | |
United Technologies Corp. | 991,686 | 138,647,620 | |
610,366,156 | |||
Air Freight & Logistics - 3.9% | |||
Air Freight & Logistics - 3.9% | |||
C.H. Robinson Worldwide, Inc. | 50,909 | 4,985,009 | |
FedEx Corp. | 215,400 | 51,866,166 | |
XPO Logistics, Inc. (a) | 235,400 | 26,875,618 | |
83,726,793 | |||
Airlines - 3.1% | |||
Airlines - 3.1% | |||
Southwest Airlines Co. | 718,433 | 44,866,141 | |
Spirit Airlines, Inc. (a) | 452,000 | 21,230,440 | |
66,096,581 | |||
Building Products - 2.3% | |||
Building Products - 2.3% | |||
A.O. Smith Corp. | 265,906 | 14,191,403 | |
Jeld-Wen Holding, Inc. (a) | 256,700 | 6,330,222 | |
Lennox International, Inc. | 69,600 | 15,200,640 | |
Masco Corp. | 361,200 | 13,219,920 | |
48,942,185 | |||
Commercial Services & Supplies - 3.1% | |||
Diversified Support Services - 1.5% | |||
Cintas Corp. | 158,300 | 31,313,323 | |
Environmental & Facility Services - 1.6% | |||
Waste Connection, Inc. (United States) | 433,350 | 34,568,330 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 65,881,653 | ||
Construction & Engineering - 4.4% | |||
Construction & Engineering - 4.4% | |||
Fluor Corp. | 560,700 | 32,576,670 | |
Jacobs Engineering Group, Inc. | 577,300 | 44,163,450 | |
KBR, Inc. | 913,300 | 19,298,029 | |
96,038,149 | |||
Electrical Equipment - 7.8% | |||
Electrical Components & Equipment - 7.3% | |||
Acuity Brands, Inc. | 93,800 | 14,745,360 | |
AMETEK, Inc. | 362,417 | 28,674,433 | |
Emerson Electric Co. | 699,100 | 53,537,078 | |
Fortive Corp. (b) | 727,042 | 61,216,936 | |
158,173,807 | |||
Heavy Electrical Equipment - 0.5% | |||
Melrose Industries PLC | 3,722,855 | 9,699,886 | |
TOTAL ELECTRICAL EQUIPMENT | 167,873,693 | ||
Industrial Conglomerates - 11.5% | |||
Industrial Conglomerates - 11.5% | |||
General Electric Co. | 7,711,044 | 87,057,687 | |
Honeywell International, Inc. | 744,012 | 123,803,597 | |
ITT, Inc. | 593,300 | 36,345,558 | |
247,206,842 | |||
Machinery - 21.1% | |||
Agricultural & Farm Machinery - 1.7% | |||
Deere & Co. | 244,500 | 36,755,685 | |
Construction Machinery & Heavy Trucks - 7.4% | |||
Allison Transmission Holdings, Inc. | 902,046 | 46,915,412 | |
Caterpillar, Inc. | 472,669 | 72,077,296 | |
Cummins, Inc. | 36,400 | 5,316,948 | |
PACCAR, Inc. | 323,700 | 22,073,103 | |
WABCO Holdings, Inc. (a) | 110,500 | 13,032,370 | |
159,415,129 | |||
Industrial Machinery - 12.0% | |||
Flowserve Corp. | 192,009 | 10,500,972 | |
Gardner Denver Holdings, Inc. (a) | 1,329,400 | 37,675,196 | |
IDEX Corp. | 92,006 | 13,861,624 | |
Illinois Tool Works, Inc. | 7,500 | 1,058,400 | |
Ingersoll-Rand PLC | 1,070,662 | 109,528,723 | |
Lincoln Electric Holdings, Inc. | 116,587 | 10,893,889 | |
Parker Hannifin Corp. | 144,200 | 26,522,706 | |
Snap-On, Inc. | 266,658 | 48,958,409 | |
258,999,919 | |||
TOTAL MACHINERY | 455,170,733 | ||
Professional Services - 2.6% | |||
Research & Consulting Services - 2.6% | |||
IHS Markit Ltd. (a) | 655,990 | 35,397,220 | |
Nielsen Holdings PLC | 772,100 | 21,356,286 | |
56,753,506 | |||
Road & Rail - 9.7% | |||
Railroads - 8.2% | |||
Kansas City Southern | 156,900 | 17,773,632 | |
Norfolk Southern Corp. | 248,014 | 44,766,527 | |
Union Pacific Corp. | 697,200 | 113,525,076 | |
176,065,235 | |||
Trucking - 1.5% | |||
J.B. Hunt Transport Services, Inc. | 94,070 | 11,188,686 | |
Knight-Swift Transportation Holdings, Inc. Class A | 618,900 | 21,339,672 | |
32,528,358 | |||
TOTAL ROAD & RAIL | 208,593,593 | ||
Trading Companies & Distributors - 1.4% | |||
Trading Companies & Distributors - 1.4% | |||
Bunzl PLC | 335,000 | 10,536,099 | |
HD Supply Holdings, Inc. (a) | 158,700 | 6,790,773 | |
Univar, Inc. (a) | 426,434 | 13,074,466 | |
30,401,338 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,745,081,625) | 2,137,051,222 | ||
Money Market Funds - 4.2% | |||
Fidelity Cash Central Fund, 2.11% (c) | 26,840,859 | 26,846,227 | |
Fidelity Securities Lending Cash Central Fund 2.11% (c)(d) | 62,879,215 | 62,885,503 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $89,731,730) | 89,731,730 | ||
TOTAL INVESTMENT IN SECURITIES - 103.4% | |||
(Cost $1,834,813,355) | 2,226,782,952 | ||
NET OTHER ASSETS (LIABILITIES) - (3.4)% | (72,716,248) | ||
NET ASSETS - 100% | $2,154,066,704 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $327,978 |
Fidelity Securities Lending Cash Central Fund | 56,666 |
Total | $384,644 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.4% |
Ireland | 5.1% |
Canada | 2.9% |
United Kingdom | 2.0% |
Bermuda | 1.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Industrials Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $61,213,400) — See accompanying schedule: Unaffiliated issuers (cost $1,745,081,625) | $2,137,051,222 | |
Fidelity Central Funds (cost $89,731,730) | 89,731,730 | |
Total Investment in Securities (cost $1,834,813,355) | $2,226,782,952 | |
Receivable for investments sold | 2,007,582 | |
Receivable for fund shares sold | 1,055,200 | |
Dividends receivable | 1,911,502 | |
Distributions receivable from Fidelity Central Funds | 23,133 | |
Total assets | 2,231,780,369 | |
Liabilities | ||
Payable for investments purchased | $12,813,602 | |
Payable for fund shares redeemed | 2,001,378 | |
Other payables and accrued expenses | 13,185 | |
Collateral on securities loaned | 62,885,500 | |
Total liabilities | 77,713,665 | |
Net Assets | $2,154,066,704 | |
Net Assets consist of: | ||
Paid in capital | $1,683,955,901 | |
Undistributed net investment income | 3,059,442 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 75,080,270 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 391,971,091 | |
Net Assets, for 6,953,926 shares outstanding | $2,154,066,704 | |
Net Asset Value, offering price and redemption price per share ($2,154,066,704 ÷ 6,953,926 shares) | $309.76 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $26,958,180 | |
Income from Fidelity Central Funds (including $56,666 from security lending) | 384,644 | |
Total income | 27,342,824 | |
Expenses | ||
Custodian fees and expenses | $28,153 | |
Independent directors' fees and expenses | 8,698 | |
Miscellaneous | 35 | |
Total expenses before reductions | 36,886 | |
Expense reductions | (796) | |
Total expenses after reductions | 36,090 | |
Net investment income (loss) | 27,306,734 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 104,418,445 | |
Redemptions in-kind with affiliated entities | 111,073,545 | |
Fidelity Central Funds | (253) | |
Foreign currency transactions | (104,533) | |
Total net realized gain (loss) | 215,387,204 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 19,746,596 | |
Fidelity Central Funds | (771) | |
Assets and liabilities in foreign currencies | (1,475) | |
Total change in net unrealized appreciation (depreciation) | 19,744,350 | |
Net gain (loss) | 235,131,554 | |
Net increase (decrease) in net assets resulting from operations | $262,438,288 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $27,306,734 | $23,192,939 |
Net realized gain (loss) | 215,387,204 | 88,063,093 |
Change in net unrealized appreciation (depreciation) | 19,744,350 | 172,542,231 |
Net increase (decrease) in net assets resulting from operations | 262,438,288 | 283,798,263 |
Distributions to shareholders from net investment income | (25,966,468) | (21,372,265) |
Distributions to shareholders from net realized gain | (84,959,878) | (5,046,225) |
Total distributions | (110,926,346) | (26,418,490) |
Affiliated share transactions | ||
Proceeds from sales of shares | 805,879,787 | 201,502,135 |
Reinvestment of distributions | 110,926,346 | 26,417,849 |
Cost of shares redeemed | (522,860,800) | (252,925,995) |
Net increase (decrease) in net assets resulting from share transactions | 393,945,333 | (25,006,011) |
Total increase (decrease) in net assets | 545,457,275 | 232,373,762 |
Net Assets | ||
Beginning of period | 1,608,609,429 | 1,376,235,667 |
End of period | $2,154,066,704 | $1,608,609,429 |
Other Information | ||
Undistributed net investment income end of period | $3,059,442 | $1,871,556 |
Shares | ||
Sold | 2,758,582 | 753,811 |
Issued in reinvestment of distributions | 378,216 | 100,435 |
Redeemed | (1,774,639) | (944,532) |
Net increase (decrease) | 1,362,159 | (90,286) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Industrials Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $287.67 | $242.21 | $209.67 | $216.95 | $198.24 |
Income from Investment Operations | |||||
Net investment income (loss)A | 4.24 | 4.16 | 3.47 | 3.40 | 3.18 |
Net realized and unrealized gain (loss) | 36.93 | 46.01 | 32.56 | (7.35) | 18.69 |
Total from investment operations | 41.17 | 50.17 | 36.03 | (3.95) | 21.87 |
Distributions from net investment income | (4.06) | (3.85) | (3.49) | (3.33) | (3.16) |
Distributions from net realized gain | (15.02) | (.86) | – | – | – |
Total distributions | (19.08) | (4.71) | (3.49) | (3.33) | (3.16) |
Net asset value, end of period | $309.76 | $287.67 | $242.21 | $209.67 | $216.95 |
Total ReturnB | 14.76% | 20.91% | 17.24% | (1.95)% | 11.03% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductionsE | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyE | -% | -% | -% | -% | -% |
Expenses net of all reductionsE | -% | -% | -% | -% | -% |
Net investment income (loss) | 1.43% | 1.56% | 1.50% | 1.48% | 1.46% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $2,154,067 | $1,608,609 | $1,376,236 | $1,173,665 | $1,301,010 |
Portfolio turnover rateF | 65%G | 65%G | 60% | 83% | 77%G |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount represents less than .005%.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Information Technology Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Information Technology Central Fund | 26.62% | 21.82% | 20.15% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Information Technology Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422701215_740.jpg)
Period Ending Values | ||
$62,714 | Fidelity® Information Technology Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Information Technology Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Charlie Chai: For the year, the fund returned 26.62%, trailing the 31.88% return of the MSCI U.S. IMI Information Technology 25/50 Index but topping the S&P 500® by a wide margin. Among the 11 S&P 500® sectors, technology stocks finished a close second behind consumer discretionary. Versus the MSCI sector index, stock selection in semiconductors was the fund’s biggest headwind, with our non-index stake in electric vehicle maker Tesla also significantly detracting. Tesla shares returned -24% for the year amid uncertainty about the company’s ability to hit Model 3 production targets, among other factors. Underweighting Apple (+49%) also hurt. Despite relatively flat unit sales growth, the company reported strong revenue and earnings growth, riding a higher average selling price for its smartphones. Conversely, overweighting application software and underweighting interactive media & services lifted relative performance. Our top relative contributor, Facebook (-4%), was in the latter category. We correctly underweighted the stock, as the social network platform operator was hampered by increasing regulatory scrutiny, slowing user growth and rising costs. In application software, PTC (+89%) was a standout for the fund.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On November 30, 2018, Ali Kahn will become sole portfolio manager for the fund, succeeding Charlie Chai.Fidelity® Information Technology Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Microsoft Corp. | 14.1 |
Apple, Inc. | 6.9 |
NVIDIA Corp. | 6.3 |
Activision Blizzard, Inc. | 4.3 |
Salesforce.com, Inc. | 4.0 |
Parametric Technology Corp. | 3.3 |
Adobe Systems, Inc. | 3.2 |
Alphabet, Inc. Class A | 3.0 |
Alphabet, Inc. Class C | 3.0 |
Facebook, Inc. Class A | 3.0 |
51.1 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Software | 45.3% | |
Semiconductors & Semiconductor Equipment | 15.8% | |
Internet Software & Services | 11.4% | |
IT Services | 7.8% | |
Technology Hardware, Storage & Peripherals | 6.9% | |
All Others* | 12.8% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Information Technology Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value | ||
Automobiles - 1.0% | |||
Automobile Manufacturers - 1.0% | |||
Tesla, Inc. (a)(b) | 214,970 | $56,917,607 | |
Communications Equipment - 0.2% | |||
Communications Equipment - 0.2% | |||
CommScope Holding Co., Inc. (a) | 354,600 | 10,907,496 | |
Construction Materials - 0.0% | |||
Construction Materials - 0.0% | |||
Universal Cement Corp. | 387 | 257 | |
Consumer Finance - 0.0% | |||
Consumer Finance - 0.0% | |||
51 Credit Card, Inc. | 1,773,000 | 1,354,377 | |
Diversified Consumer Services - 0.0% | |||
Education Services - 0.0% | |||
China Online Education Group sponsored ADR (a)(b) | 6,972 | 62,748 | |
Diversified Financial Services - 0.1% | |||
Other Diversified Financial Services - 0.1% | |||
Jianpu Technology, Inc. ADR (a)(b) | 818,700 | 4,003,443 | |
Electronic Equipment & Components - 4.6% | |||
Electronic Components - 1.7% | |||
LG Innotek Co. Ltd. | 336,336 | 39,553,608 | |
Murata Manufacturing Co. Ltd. | 200,900 | 30,881,170 | |
Samsung Electro-Mechanics Co. Ltd. | 210,808 | 26,406,092 | |
Taiyo Yuden Co. Ltd. (b) | 199,600 | 4,486,696 | |
101,327,566 | |||
Electronic Equipment & Instruments - 1.9% | |||
Chroma ATE, Inc. | 4,876,018 | 23,442,394 | |
Hitachi High-Technologies Corp. | 403,600 | 13,906,830 | |
Trimble, Inc. (a) | 1,660,800 | 72,178,368 | |
109,527,592 | |||
Technology Distributors - 1.0% | |||
Dell Technologies, Inc. (a) | 580,269 | 56,355,725 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 267,210,883 | ||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
Diversified REITs - 0.4% | |||
Ant International Co. Ltd. Class C (c)(d) | 3,805,376 | 21,348,159 | |
Internet & Direct Marketing Retail - 2.5% | |||
Internet & Direct Marketing Retail - 2.5% | |||
Amazon.com, Inc. (a) | 26,529 | 53,137,587 | |
Meituan Dianping Class B | 6,251,571 | 49,412,195 | |
Netflix, Inc. (a) | 113,400 | 42,426,342 | |
144,976,124 | |||
Internet Software & Services - 10.7% | |||
Internet Software & Services - 10.7% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 107,800 | 17,761,128 | |
Alphabet, Inc.: | |||
Class A (a) | 145,781 | 175,969,329 | |
Class C (a) | 147,233 | 175,718,169 | |
Envestnet, Inc. (a) | 434 | 26,452 | |
Facebook, Inc. Class A (a) | 1,040,175 | 171,067,181 | |
GoDaddy, Inc. (a) | 320,500 | 26,726,495 | |
Match Group, Inc. (a)(b) | 331,000 | 19,168,210 | |
MongoDB, Inc. Class A | 69,224 | 5,645,217 | |
Nutanix, Inc. Class B (a)(e) | 68,486 | 2,925,722 | |
Okta, Inc. (a) | 133,000 | 9,357,880 | |
Xunlei Ltd. sponsored ADR (a) | 1,953,688 | 14,183,775 | |
618,549,558 | |||
IT Services - 7.8% | |||
Data Processing & Outsourced Services - 7.4% | |||
Adyen BV (e) | 3,100 | 2,530,276 | |
FleetCor Technologies, Inc. (a) | 197,000 | 44,884,480 | |
Global Payments, Inc. | 195,056 | 24,850,134 | |
PayPal Holdings, Inc. (a) | 1,856,400 | 163,066,176 | |
Square, Inc. (a) | 1,386,400 | 137,267,464 | |
Visa, Inc. Class A | 392,300 | 58,880,307 | |
431,478,837 | |||
IT Consulting & Other Services - 0.4% | |||
DXC Technology Co. | 223,400 | 20,892,368 | |
TOTAL IT SERVICES | 452,371,205 | ||
Life Sciences Tools & Services - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
JHL Biotech, Inc. (a)(c) | 1,008,062 | 1,627,614 | |
Machinery - 0.7% | |||
Industrial Machinery - 0.7% | |||
Minebea Mitsumi, Inc. | 2,235,657 | 40,533,827 | |
Professional Services - 0.4% | |||
Human Resource & Employment Services - 0.4% | |||
SMS Co., Ltd. | 911,112 | 18,130,824 | |
WageWorks, Inc. (a) | 71,505 | 3,056,839 | |
21,187,663 | |||
Semiconductors & Semiconductor Equipment - 15.8% | |||
Semiconductor Equipment - 1.5% | |||
Ferrotec Holdings Corp. | 245,400 | 2,380,134 | |
Lam Research Corp. | 180,600 | 27,397,020 | |
Screen Holdings Co. Ltd. | 233,600 | 13,651,681 | |
Sino-American Silicon Products, Inc. | 15,960,000 | 41,062,746 | |
SunEdison, Inc. (a)(c) | 1,200 | 0 | |
84,491,581 | |||
Semiconductors - 14.3% | |||
Advanced Micro Devices, Inc. (a) | 2,853,588 | 88,147,333 | |
ams AG | 782,730 | 43,754,400 | |
ChipMOS TECHNOLOGIES, Inc. sponsored ADR (a) | 50,800 | 778,764 | |
Himax Technologies, Inc. sponsored ADR (b) | 5,425,890 | 31,904,233 | |
International Quantum Epitaxy PLC (a)(b) | 1,525,435 | 1,631,361 | |
MACOM Technology Solutions Holdings, Inc. (a)(b) | 603,617 | 12,434,510 | |
Marvell Technology Group Ltd. | 4,556,682 | 87,943,963 | |
Nanya Technology Corp. | 25,229,000 | 48,103,337 | |
NVIDIA Corp. | 1,300,150 | 365,368,153 | |
NXP Semiconductors NV | 157,400 | 13,457,700 | |
Qualcomm, Inc. | 1,607,738 | 115,805,368 | |
Semtech Corp. (a) | 284,994 | 15,845,666 | |
Silicon Laboratories, Inc. (a) | 65,500 | 6,012,900 | |
831,187,688 | |||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 915,679,269 | ||
Software - 45.3% | |||
Application Software - 20.4% | |||
Adobe Systems, Inc. (a) | 681,613 | 184,001,429 | |
Atlassian Corp. PLC (a) | 87,240 | 8,387,254 | |
Autodesk, Inc. (a) | 940,544 | 146,828,324 | |
Citrix Systems, Inc. (a) | 700,157 | 77,829,452 | |
Ellie Mae, Inc. (a) | 108,500 | 10,282,545 | |
HubSpot, Inc. (a) | 76,600 | 11,562,770 | |
Intuit, Inc. | 386,000 | 87,776,400 | |
Kingsoft Corp. Ltd. | 7,804,000 | 14,873,592 | |
Parametric Technology Corp. (a) | 1,817,866 | 193,039,191 | |
Salesforce.com, Inc. (a) | 1,467,309 | 233,346,150 | |
Splunk, Inc. (a) | 139,700 | 16,891,127 | |
SS&C Technologies Holdings, Inc. | 509,966 | 28,981,368 | |
Ultimate Software Group, Inc. (a) | 391,124 | 126,016,242 | |
Workday, Inc. Class A (a) | 153,051 | 22,342,385 | |
Zendesk, Inc. (a) | 268,569 | 19,068,399 | |
1,181,226,628 | |||
Home Entertainment Software - 9.2% | |||
Activision Blizzard, Inc. | 3,009,959 | 250,398,489 | |
Electronic Arts, Inc. (a) | 1,370,315 | 165,109,254 | |
Nintendo Co. Ltd. | 142,000 | 51,664,347 | |
Nintendo Co. Ltd. ADR (b) | 593,184 | 26,969,111 | |
Take-Two Interactive Software, Inc. (a) | 296,365 | 40,895,406 | |
535,036,607 | |||
Systems Software - 15.7% | |||
Eventbrite, Inc. | 6,800 | 258,196 | |
Microsoft Corp. | 7,163,915 | 819,336,960 | |
Oracle Corp. | 300,500 | 15,493,780 | |
Red Hat, Inc. (a) | 393,000 | 53,558,040 | |
ServiceNow, Inc. (a) | 108,400 | 21,206,292 | |
909,853,268 | |||
TOTAL SOFTWARE | 2,626,116,503 | ||
Technology Hardware, Storage & Peripherals - 6.9% | |||
Technology Hardware, Storage & Peripherals - 6.9% | |||
Apple, Inc. | 1,770,783 | 399,736,554 | |
TOTAL COMMON STOCKS | |||
(Cost $4,381,640,497) | 5,582,583,287 | ||
Convertible Preferred Stocks - 0.7% | |||
Internet Software & Services - 0.7% | |||
Internet Software & Services - 0.7% | |||
Lyft, Inc. Series I (c)(d) | 303,270 | 14,361,017 | |
Uber Technologies, Inc. Series D, 8.00% (a)(c)(d) | 489,912 | 23,893,008 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $21,961,046) | 38,254,025 | ||
Money Market Funds - 4.7% | |||
Fidelity Cash Central Fund, 2.11% (f) | 153,934,912 | 153,965,699 | |
Fidelity Securities Lending Cash Central Fund 2.11% (f)(g) | 121,161,878 | 121,173,994 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $275,139,693) | 275,139,693 | ||
TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
(Cost $4,678,741,236) | 5,895,977,005 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (106,311,061) | ||
NET ASSETS - 100% | $5,789,665,944 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $59,602,185 or 1.0% of net assets.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,455,998 or 0.1% of net assets.
(f) 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.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Ant International Co. Ltd. Class C | 5/16/18 | $21,348,159 |
Lyft, Inc. Series I | 6/27/18 | $14,361,017 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $7,600,029 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $1,148,783 |
Fidelity Securities Lending Cash Central Fund | 4,923,773 |
Total | $6,072,556 |
Amounts in the 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate | Value, beginning of period | Purchases(a) | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Jianpu Technology, Inc. ADR | $-- | $12,859,136 | $4,498,224 | $-- | $(2,052,833) | $(2,304,635) | $-- |
Total | $-- | $12,859,136 | $4,498,224 | $-- | $(2,052,833) | $(2,304,635) | $-- |
(a) Includes the value of shares purchased or redeemed through in-kind transactions, if applicable. See the Notes to Financial Statements for additional details.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, 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: | ||||
Common Stocks | $5,582,583,287 | $5,458,530,972 | $101,076,542 | $22,975,773 |
Convertible Preferred Stocks | 38,254,025 | -- | -- | 38,254,025 |
Money Market Funds | 275,139,693 | 275,139,693 | -- | -- |
Total Investments in Securities: | $5,895,977,005 | $5,733,670,665 | $101,076,542 | $61,229,798 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $58,834,506 |
Total Realized Gain (Loss) | -- |
Total Unrealized Gain (Loss) | (13,043,276) |
Cost of Purchases | 35,709,176 |
Proceeds of Sales | (22,195,617) |
Amortization/Accretion | -- |
Transfers in to Level 3 | 1,925,009 |
Transfers out of Level 3 | -- |
Ending Balance | $61,229,798 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at September 30, 2018 | $(298,487) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.0% |
Japan | 3.5% |
Cayman Islands | 2.8% |
Taiwan | 1.9% |
Bermuda | 1.5% |
Korea (South) | 1.1% |
Others (Individually Less Than 1%) | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Information Technology Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $108,783,874) — See accompanying schedule: Unaffiliated issuers (cost $4,403,601,543) | $5,620,837,312 | |
Fidelity Central Funds (cost $275,139,693) | 275,139,693 | |
Total Investment in Securities (cost $4,678,741,236) | $5,895,977,005 | |
Foreign currency held at value (cost $131,959) | 131,803 | |
Receivable for investments sold | 16,494,498 | |
Receivable for fund shares sold | 2,707,391 | |
Dividends receivable | 1,074,049 | |
Distributions receivable from Fidelity Central Funds | 363,639 | |
Other receivables | 17,343 | |
Total assets | 5,916,765,728 | |
Liabilities | ||
Payable for fund shares redeemed | $5,804,421 | |
Other payables and accrued expenses | 119,153 | |
Collateral on securities loaned | 121,176,210 | |
Total liabilities | 127,099,784 | |
Net Assets | $5,789,665,944 | |
Net Assets consist of: | ||
Paid in capital | $3,841,517,729 | |
Undistributed net investment income | 3,504,985 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 727,404,358 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,217,238,872 | |
Net Assets, for 11,584,151 shares outstanding | $5,789,665,944 | |
Net Asset Value, offering price and redemption price per share ($5,789,665,944 ÷ 11,584,151 shares) | $499.79 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $33,779,624 | |
Income from Fidelity Central Funds (including $4,923,773 from security lending) | 6,072,556 | |
Total income | 39,852,180 | |
Expenses | ||
Custodian fees and expenses | $290,118 | |
Independent directors' fees and expenses | 23,202 | |
Interest | 5,663 | |
Miscellaneous | 90 | |
Total expenses before reductions | 319,073 | |
Expense reductions | (2,259) | |
Total expenses after reductions | 316,814 | |
Net investment income (loss) | 39,535,366 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,006,946,004 | |
Redemptions in-kind with affiliated entities | 407,599,634 | |
Fidelity Central Funds | 4,259 | |
Other affiliated issuers | (2,052,833) | |
Foreign currency transactions | (236,318) | |
Total net realized gain (loss) | 1,412,260,746 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (301,615,454) | |
Fidelity Central Funds | (30,026) | |
Other affiliated issuers | (2,304,635) | |
Assets and liabilities in foreign currencies | 1,283 | |
Total change in net unrealized appreciation (depreciation) | (303,948,832) | |
Net gain (loss) | 1,108,311,914 | |
Net increase (decrease) in net assets resulting from operations | $1,147,847,280 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $39,535,366 | $26,875,134 |
Net realized gain (loss) | 1,412,260,746 | 522,050,167 |
Change in net unrealized appreciation (depreciation) | (303,948,832) | 713,079,382 |
Net increase (decrease) in net assets resulting from operations | 1,147,847,280 | 1,262,004,683 |
Distributions to shareholders from net investment income | (36,464,862) | (25,333,085) |
Distributions to shareholders from net realized gain | (557,750,410) | (20,739,156) |
Total distributions | (594,215,272) | (46,072,241) |
Affiliated share transactions | ||
Proceeds from sales of shares | 2,068,499,891 | 376,031,682 |
Reinvestment of distributions | 594,215,272 | 46,071,593 |
Cost of shares redeemed | (1,430,604,144) | (853,394,538) |
Net increase (decrease) in net assets resulting from share transactions | 1,232,111,019 | (431,291,263) |
Total increase (decrease) in net assets | 1,785,743,027 | 784,641,179 |
Net Assets | ||
Beginning of period | 4,003,922,917 | 3,219,281,738 |
End of period | $5,789,665,944 | $4,003,922,917 |
Other Information | ||
Undistributed net investment income end of period | $3,504,985 | $1,533,368 |
Shares | ||
Sold | 4,514,165 | 1,106,380 |
Issued in reinvestment of distributions | 1,380,579 | 132,818 |
Redeemed | (3,113,820) | (2,184,326) |
Net increase (decrease) | 2,780,924 | (945,128) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Information Technology Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $454.82 | $330.24 | $260.71 | $262.98 | $222.50 |
Income from Investment Operations | |||||
Net investment income (loss)A | 3.67 | 2.78 | 2.48 | 2.24B | 2.33 |
Net realized and unrealized gain (loss) | 106.41 | 126.52 | 69.42 | (2.37) | 39.88 |
Total from investment operations | 110.08 | 129.30 | 71.90 | (.13) | 42.21 |
Distributions from net investment income | (3.34) | (2.67) | (2.37) | (2.14) | (1.73) |
Distributions from net realized gain | (61.77) | (2.05) | – | – | – |
Total distributions | (65.11) | (4.72) | (2.37) | (2.14) | (1.73) |
Net asset value, end of period | $499.79 | $454.82 | $330.24 | $260.71 | $262.98 |
Total ReturnC | 26.62% | 39.59% | 27.68% | (.11)% | 19.01% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .01% | .01% | .01% | .01% | .01% |
Expenses net of fee waivers, if any | .01% | .01% | .01% | .01% | .01% |
Expenses net of all reductions | .01% | .01% | .01% | .01% | .01% |
Net investment income (loss) | .78% | .73% | .86% | .81%B | .94% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $5,789,666 | $4,003,923 | $3,219,282 | $2,532,510 | $2,472,588 |
Portfolio turnover rateF | 99%G | 70%G | 99% | 138% | 179%G |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.43 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .65%.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Materials Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Materials Central Fund | (1.66)% | 5.84% | 10.76% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Materials Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422699260_740.jpg)
Period Ending Values | ||
$27,782 | Fidelity® Materials Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Materials Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Richard Malnight: For the year, the fund returned -1.66%, considerably trailing the 3.76% return of the MSCI U.S. IMI Materials 25/50 Linked Index and lagging the S&P 500® by an even wider margin. Among the 11 S&P 500® sectors, materials stocks finished near the bottom of the pack, hampered by concerns over interest rate hikes by the U.S. Federal Reserve, a flattening yield curve, softening economic data in Europe and China, and contentious U.S. trade relations with China and other nations. Versus the MSCI sector index, positioning in diversified chemicals, commodity chemicals and other chemicals segments notably weighed on fund performance. Our largest relative detractor by far was Chemours, a maker of the pigment titanium dioxide (TiO2) and the fund’s third-largest position. The stock, a sizable overweighting, returned -21% even though consensus earnings estimates for the company increased. Tronox (-43%), also a detractor, was another stock tied to the TiO2 market. Underweighting and ultimately selling Ecolab (+23%), a defensive name that outperformed, hurt as well. Conversely, not owning weak-performing index component Albemarle (-26%) was the right call and made this stock our top relative contributor. Overweighting Steel Dynamics (+33%) also helped. The fund's foreign holdings contributed overall despite the headwind of a stronger U.S. dollar.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On November 17, 2017, Richard Malnight became sole manager of the fund, succeeding Tobias Welo.Fidelity® Materials Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
DowDuPont, Inc. | 24.3 |
LyondellBasell Industries NV Class A | 7.3 |
The Chemours Co. LLC | 6.6 |
Linde AG | 5.3 |
Sherwin-Williams Co. | 4.7 |
Air Products & Chemicals, Inc. | 4.2 |
Platform Specialty Products Corp. | 3.7 |
Westlake Chemical Corp. | 3.4 |
Martin Marietta Materials, Inc. | 3.0 |
Olin Corp. | 3.0 |
65.5 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Chemicals | 77.3% | |
Metals & Mining | 8.7% | |
Containers & Packaging | 6.4% | |
Construction Materials | 3.8% | |
Trading Companies & Distributors | 1.6% | |
All Others* | 2.2% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Materials Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.2% | |||
Shares | Value | ||
Chemicals - 75.6% | |||
Commodity Chemicals - 16.2% | |||
Cabot Corp. | 46,601 | $2,922,815 | |
Ciner Resources LP | 42,400 | 1,152,432 | |
LyondellBasell Industries NV Class A | 397,155 | 40,712,359 | |
Olin Corp. | 652,072 | 16,745,209 | |
Orion Engineered Carbons SA | 132,800 | 4,262,880 | |
Tronox Ltd. Class A | 462,200 | 5,523,290 | |
Westlake Chemical Corp. | 231,872 | 19,270,882 | |
90,589,867 | |||
Diversified Chemicals - 33.6% | |||
Ashland Global Holdings, Inc. | 41,100 | 3,446,646 | |
DowDuPont, Inc. | 2,106,850 | 135,491,524 | |
Eastman Chemical Co. | 95,251 | 9,117,426 | |
Ingevity Corp. (a) | 30,700 | 3,127,716 | |
The Chemours Co. LLC | 928,843 | 36,633,568 | |
187,816,880 | |||
Fertilizers & Agricultural Chemicals - 3.4% | |||
FMC Corp. | 125,300 | 10,923,654 | |
The Mosaic Co. | 249,100 | 8,090,768 | |
19,014,422 | |||
Industrial Gases - 9.5% | |||
Air Products & Chemicals, Inc. | 138,300 | 23,103,015 | |
Linde AG | 125,500 | 29,681,489 | |
52,784,504 | |||
Specialty Chemicals - 12.9% | |||
Axalta Coating Systems Ltd. (a) | 355,500 | 10,366,380 | |
Celanese Corp. Class A | 106,200 | 12,106,800 | |
Covestro AG (b) | 23,000 | 1,865,552 | |
International Flavors & Fragrances, Inc. | 5,000 | 695,600 | |
Platform Specialty Products Corp. (a) | 1,667,400 | 20,792,478 | |
Sherwin-Williams Co. | 57,700 | 26,265,617 | |
Venator Materials PLC (a) | 70 | 630 | |
72,093,057 | |||
TOTAL CHEMICALS | 422,298,730 | ||
Construction Materials - 3.8% | |||
Construction Materials - 3.8% | |||
CRH PLC sponsored ADR | 88,200 | 2,885,904 | |
Martin Marietta Materials, Inc. | 93,100 | 16,939,545 | |
Summit Materials, Inc. | 73,391 | 1,334,248 | |
21,159,697 | |||
Containers & Packaging - 6.4% | |||
Metal & Glass Containers - 2.6% | |||
Aptargroup, Inc. | 42,900 | 4,622,046 | |
Berry Global Group, Inc. (a) | 50,900 | 2,463,051 | |
Crown Holdings, Inc. (a) | 151,000 | 7,248,000 | |
14,333,097 | |||
Paper Packaging - 3.8% | |||
Avery Dennison Corp. | 32,600 | 3,532,210 | |
Packaging Corp. of America | 76,800 | 8,424,192 | |
WestRock Co. | 171,510 | 9,165,494 | |
21,121,896 | |||
TOTAL CONTAINERS & PACKAGING | 35,454,993 | ||
Metals & Mining - 8.7% | |||
Copper - 1.6% | |||
Antofagasta PLC | 113,300 | 1,262,623 | |
First Quantum Minerals Ltd. | 339,400 | 3,865,268 | |
Freeport-McMoRan, Inc. | 275,500 | 3,834,960 | |
8,962,851 | |||
Diversified Metals & Mining - 1.1% | |||
Alcoa Corp. (a) | 122,900 | 4,965,160 | |
Elkem ASA (a) | 220,771 | 1,103,075 | |
6,068,235 | |||
Gold - 2.4% | |||
Newmont Mining Corp. | 353,800 | 10,684,760 | |
Royal Gold, Inc. | 34,200 | 2,635,452 | |
13,320,212 | |||
Steel - 3.6% | |||
AK Steel Holding Corp. (a)(c) | 217,400 | 1,065,260 | |
Commercial Metals Co. | 338,500 | 6,946,020 | |
Ryerson Holding Corp. (a) | 180,806 | 2,043,108 | |
Steel Dynamics, Inc. | 223,100 | 10,081,889 | |
20,136,277 | |||
TOTAL METALS & MINING | 48,487,575 | ||
Oil, Gas & Consumable Fuels - 0.1% | |||
Oil & Gas Refining & Marketing - 0.1% | |||
S-Oil Corp. | 5,900 | 728,408 | |
Trading Companies & Distributors - 1.6% | |||
Trading Companies & Distributors - 1.6% | |||
Univar, Inc. (a) | 289,390 | 8,872,697 | |
TOTAL COMMON STOCKS | |||
(Cost $512,409,662) | 537,002,100 | ||
Nonconvertible Preferred Stocks - 1.7% | |||
Chemicals - 1.7% | |||
Commodity Chemicals - 1.7% | |||
Braskem SA (PN-A) | |||
(Cost $9,853,599) | 647,500 | 9,369,675 | |
Money Market Funds - 1.3% | |||
Fidelity Cash Central Fund, 2.11% (d) | 7,214,287 | 7,215,730 | |
Fidelity Securities Lending Cash Central Fund 2.11% (d)(e) | 364,464 | 364,500 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $7,580,230) | 7,580,230 | ||
TOTAL INVESTMENT IN SECURITIES - 99.2% | |||
(Cost $529,843,491) | 553,952,005 | ||
NET OTHER ASSETS (LIABILITIES) - 0.8% | 4,458,795 | ||
NET ASSETS - 100% | $558,410,800 |
Legend
(a) Non-income producing
(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 $1,865,552 or 0.3% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) 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.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $129,887 |
Fidelity Securities Lending Cash Central Fund | 3,095 |
Total | $132,982 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Materials Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $357,210) — See accompanying schedule: Unaffiliated issuers (cost $522,263,261) | $546,371,775 | |
Fidelity Central Funds (cost $7,580,230) | 7,580,230 | |
Total Investment in Securities (cost $529,843,491) | $553,952,005 | |
Receivable for investments sold | 6,115,972 | |
Receivable for fund shares sold | 306,161 | |
Dividends receivable | 460,120 | |
Distributions receivable from Fidelity Central Funds | 14,642 | |
Total assets | 560,848,900 | |
Liabilities | ||
Payable to custodian bank | $3,984 | |
Payable for investments purchased | 1,531,002 | |
Payable for fund shares redeemed | 528,436 | |
Other payables and accrued expenses | 10,178 | |
Collateral on securities loaned | 364,500 | |
Total liabilities | 2,438,100 | |
Net Assets | $558,410,800 | |
Net Assets consist of: | ||
Paid in capital | $504,085,287 | |
Undistributed net investment income | 1,692,230 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 28,526,965 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 24,106,318 | |
Net Assets, for 2,348,204 shares outstanding | $558,410,800 | |
Net Asset Value, offering price and redemption price per share ($558,410,800 ÷ 2,348,204 shares) | $237.80 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $10,492,894 | |
Income from Fidelity Central Funds (including $3,095 from security lending) | 132,982 | |
Total income | 10,625,876 | |
Expenses | ||
Custodian fees and expenses | $23,835 | |
Independent directors' fees and expenses | 2,541 | |
Miscellaneous | 10 | |
Total expenses before reductions | 26,386 | |
Expense reductions | (266) | |
Total expenses after reductions | 26,120 | |
Net investment income (loss) | 10,599,756 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 39,523,453 | |
Redemptions in-kind with affiliated entities | 31,881,334 | |
Fidelity Central Funds | (555) | |
Foreign currency transactions | (30,985) | |
Total net realized gain (loss) | 71,373,247 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (93,936,845) | |
Assets and liabilities in foreign currencies | (3,718) | |
Total change in net unrealized appreciation (depreciation) | (93,940,563) | |
Net gain (loss) | (22,567,316) | |
Net increase (decrease) in net assets resulting from operations | $(11,967,560) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,599,756 | $7,828,862 |
Net realized gain (loss) | 71,373,247 | 25,269,590 |
Change in net unrealized appreciation (depreciation) | (93,940,563) | 62,323,044 |
Net increase (decrease) in net assets resulting from operations | (11,967,560) | 95,421,496 |
Distributions to shareholders from net investment income | (9,590,869) | (7,046,584) |
Distributions to shareholders from net realized gain | (27,989,724) | – |
Total distributions | (37,580,593) | (7,046,584) |
Affiliated share transactions | ||
Proceeds from sales of shares | 242,088,015 | 39,935,356 |
Reinvestment of distributions | 37,580,593 | 7,046,096 |
Cost of shares redeemed | (145,554,862) | (62,373,158) |
Net increase (decrease) in net assets resulting from share transactions | 134,113,746 | (15,391,706) |
Total increase (decrease) in net assets | 84,565,593 | 72,983,206 |
Net Assets | ||
Beginning of period | 473,845,207 | 400,862,001 |
End of period | $558,410,800 | $473,845,207 |
Other Information | ||
Undistributed net investment income end of period | $1,692,230 | $779,383 |
Shares | ||
Sold | 952,669 | 176,402 |
Issued in reinvestment of distributions | 145,744 | 29,792 |
Redeemed | (569,787) | (265,555) |
Net increase (decrease) | 528,626 | (59,361) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Materials Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $260.41 | $213.34 | $188.48 | $229.95 | $207.20 |
Income from Investment Operations | |||||
Net investment income (loss)A | 4.94 | 4.24 | 4.48 | 4.34 | 3.57 |
Net realized and unrealized gain (loss) | (7.93) | 46.66 | 24.73 | (41.59) | 22.68 |
Total from investment operations | (2.99) | 50.90 | 29.21 | (37.25) | 26.25 |
Distributions from net investment income | (4.54) | (3.83) | (4.35) | (4.22) | (3.50) |
Distributions from net realized gain | (15.08) | – | – | – | – |
Total distributions | (19.62) | (3.83) | (4.35) | (4.22) | (3.50) |
Net asset value, end of period | $237.80 | $260.41 | $213.34 | $188.48 | $229.95 |
Total ReturnB | (1.66)% | 24.05% | 15.62% | (16.46)% | 12.70% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | - %E | .01% | - %E | - %E | .01% |
Expenses net of fee waivers, if any | - %E | .01% | - %E | - %E | - %E |
Expenses net of all reductions | - %E | .01% | - %E | - %E | - %E |
Net investment income (loss) | 1.92% | 1.80% | 2.21% | 1.95% | 1.57% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $558,411 | $473,845 | $400,862 | $358,642 | $482,472 |
Portfolio turnover rateF | 78%G | 54%G | 56% | 72% | 65%G |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount represents less than .005%.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Real Estate Equity Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Life of fundA |
Fidelity® Real Estate Equity Central Fund | 3.73% | 6.03% |
A From November 3, 2014
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Real Estate Equity Central Fund on November 3, 2014, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422707509_740.jpg)
Period Ending Values | ||
$12,574 | Fidelity® Real Estate Equity Central Fund | |
$15,663 | S&P 500® Index |
Fidelity® Real Estate Equity Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Samuel Wald: For the fiscal year, the fund returned 3.73%, outpacing the 3.35% return of the FTSE® NAREIT® Equity REITs Index while significantly lagging the S&P 500®. Versus the FTSE NAREIT index, industry positioning added value, especially underweighting the lagging diversified category and overweighting strong-performing industrial real estate investment trusts (REITs). Security selection modestly detracted versus the FTSE NAREIT, with picks among health care, lodging/resort and diversified REITs detracting the most. Conversely, security selection among regional malls – especially not holding index component Brookfield Properties – contributed on a relative basis. Timely ownership of GGP, which we sold from the fund in May, also helped. An overweighted stake in self-storage REIT Extra Space Storage, which we sold from the fund in September, added more value than any other position. Also of note in self-storage, we added to the fund's position in Public Storage by period end, making it one of the fund's largest holdings as of September 30. In contrast, the fund's biggest individual detractor was an overweighting in health care REIT Ventas, another large fund position at the end of September. Other positions to weigh on results included shopping center REIT Urban Edge Properties and a non-REIT, out-of-benchmark holding in timeshare operator Hilton Grand Vacations.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Real Estate Equity Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Equinix, Inc. | 7.0 |
Simon Property Group, Inc. | 6.2 |
Prologis, Inc. | 5.8 |
Public Storage | 5.5 |
AvalonBay Communities, Inc. | 4.8 |
Boston Properties, Inc. | 4.7 |
Ventas, Inc. | 3.8 |
Equity Residential (SBI) | 3.7 |
Essex Property Trust, Inc. | 3.2 |
SL Green Realty Corp. | 3.2 |
47.9 |
Top Five REIT Sectors as of September 30, 2018
% of fund's net assets | |
REITs - Diversified | 16.0 |
REITs - Office Property | 14.0 |
REITs - Apartments | 13.2 |
REITs - Health Care | 10.4 |
REITs - Warehouse/Industrial | 8.5 |
Asset Allocation (% of fund's net assets)
As of September 30, 2018 | ||
Stocks | 97.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.4% |
Fidelity® Real Estate Equity Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
Equity Real Estate Investment Trusts (REITs) - 94.7% | |||
REITs - Apartments - 13.2% | |||
AvalonBay Communities, Inc. | 33,750 | $6,113,813 | |
Equity Residential (SBI) | 70,900 | 4,697,834 | |
Essex Property Trust, Inc. | 16,500 | 4,070,715 | |
UDR, Inc. | 45,000 | 1,819,350 | |
16,701,712 | |||
REITs - Diversified - 15.2% | |||
Clipper Realty, Inc. | 31,900 | 431,607 | |
Corrections Corp. of America | 38,800 | 944,004 | |
Duke Realty Corp. | 130,300 | 3,696,611 | |
Equinix, Inc. | 20,500 | 8,874,244 | |
Gaming & Leisure Properties | 32,800 | 1,156,200 | |
Outfront Media, Inc. | 85,700 | 1,709,715 | |
Washington REIT (SBI) | 79,700 | 2,442,805 | |
19,255,186 | |||
REITs - Health Care - 10.4% | |||
CareTrust (REIT), Inc. | 64,500 | 1,142,295 | |
Healthcare Realty Trust, Inc. | 92,800 | 2,715,328 | |
Sabra Health Care REIT, Inc. | 61,954 | 1,432,376 | |
Ventas, Inc. | 88,200 | 4,796,316 | |
Welltower, Inc. | 48,450 | 3,116,304 | |
13,202,619 | |||
REITs - Hotels - 5.1% | |||
Braemar Hotels & Resorts, Inc. | 27,500 | 323,675 | |
DiamondRock Hospitality Co. | 147,200 | 1,717,824 | |
Host Hotels & Resorts, Inc. | 99,100 | 2,091,010 | |
Sunstone Hotel Investors, Inc. | 145,700 | 2,383,652 | |
6,516,161 | |||
REITs - Management/Investment - 4.3% | |||
American Tower Corp. | 4,600 | 668,380 | |
CoreSite Realty Corp. | 13,076 | 1,453,267 | |
National Retail Properties, Inc. | 65,100 | 2,917,782 | |
Retail Properties America, Inc. | 37,900 | 462,001 | |
5,501,430 | |||
REITs - Manufactured Homes - 2.3% | |||
Equity Lifestyle Properties, Inc. | 30,576 | 2,949,055 | |
REITs - Office Property - 14.0% | |||
Boston Properties, Inc. | 48,000 | 5,908,320 | |
Corporate Office Properties Trust (SBI) | 64,900 | 1,935,967 | |
Douglas Emmett, Inc. | 46,900 | 1,769,068 | |
Highwoods Properties, Inc. (SBI) | 49,000 | 2,315,740 | |
SL Green Realty Corp. | 40,700 | 3,969,471 | |
VEREIT, Inc. | 249,500 | 1,811,370 | |
17,709,936 | |||
REITs - Regional Malls - 7.3% | |||
Simon Property Group, Inc. | 44,250 | 7,821,188 | |
Taubman Centers, Inc. | 23,500 | 1,406,005 | |
9,227,193 | |||
REITs - Shopping Centers - 4.8% | |||
Acadia Realty Trust (SBI) | 67,138 | 1,881,878 | |
Cedar Realty Trust, Inc. | 119,647 | 557,555 | |
DDR Corp. | 67,650 | 905,834 | |
Urban Edge Properties | 124,250 | 2,743,440 | |
6,088,707 | |||
REITs - Single Tenant - 3.2% | |||
Agree Realty Corp. | 20,100 | 1,067,712 | |
Four Corners Property Trust, Inc. | 48,000 | 1,233,120 | |
Spirit Realty Capital, Inc. | 209,200 | 1,686,152 | |
3,986,984 | |||
REITs - Storage - 5.5% | |||
Public Storage | 34,600 | 6,976,398 | |
REITs - Warehouse/Industrial - 8.5% | |||
Americold Realty Trust | 38,200 | 955,764 | |
Prologis, Inc. | 109,081 | 7,394,601 | |
Rexford Industrial Realty, Inc. | 42,500 | 1,358,300 | |
Terreno Realty Corp. | 27,963 | 1,054,205 | |
10,762,870 | |||
Residential REITs - 0.9% | |||
Invitation Homes, Inc. | 50,000 | 1,145,500 | |
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 120,023,751 | ||
Hotels, Restaurants & Leisure - 1.2% | |||
Hotels, Resorts & Cruise Lines - 1.2% | |||
Hilton Grand Vacations, Inc. (a) | 20,800 | 688,480 | |
Hilton Worldwide Holdings, Inc. | 9,900 | 799,722 | |
1,488,202 | |||
Real Estate Management & Development - 1.7% | |||
Real Estate Development - 0.9% | |||
Howard Hughes Corp. (a) | 9,100 | 1,130,402 | |
REITs - Diversified - 0.8% | |||
VICI Properties, Inc. | 50,500 | 1,091,810 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 2,222,212 | ||
TOTAL COMMON STOCKS | |||
(Cost $112,054,001) | 123,734,165 | ||
Money Market Funds - 2.3% | |||
Fidelity Cash Central Fund, 2.11% (b) | |||
(Cost $2,860,920) | 2,860,348 | 2,860,920 | |
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $114,914,921) | 126,595,085 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 108,580 | ||
NET ASSETS - 100% | $126,703,665 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $27,334 |
Fidelity Securities Lending Cash Central Fund | 80 |
Total | $27,414 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Real Estate Equity Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $112,054,001) | $123,734,165 | |
Fidelity Central Funds (cost $2,860,920) | 2,860,920 | |
Total Investment in Securities (cost $114,914,921) | $126,595,085 | |
Receivable for investments sold | 265,928 | |
Receivable for fund shares sold | 104,666 | |
Dividends receivable | 555,519 | |
Distributions receivable from Fidelity Central Funds | 5,160 | |
Total assets | 127,526,358 | |
Liabilities | ||
Payable for investments purchased | $761,443 | |
Payable for fund shares redeemed | 56,947 | |
Other payables and accrued expenses | 4,303 | |
Total liabilities | 822,693 | |
Net Assets | $126,703,665 | |
Net Assets consist of: | ||
Paid in capital | $113,402,623 | |
Undistributed net investment income | 1,214,307 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 406,571 | |
Net unrealized appreciation (depreciation) on investments | 11,680,164 | |
Net Assets, for 1,154,687 shares outstanding | $126,703,665 | |
Net Asset Value, offering price and redemption price per share ($126,703,665 ÷ 1,154,687 shares) | $109.73 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $4,034,163 | |
Non-Cash dividends | 353,483 | |
Income from Fidelity Central Funds (including $80 from security lending) | 27,414 | |
Total income | 4,415,060 | |
Expenses | ||
Custodian fees and expenses | $12,721 | |
Independent directors' fees and expenses | 567 | |
Miscellaneous | 3 | |
Total expenses | 13,291 | |
Net investment income (loss) | 4,401,769 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,135,248 | |
Fidelity Central Funds | (151) | |
Foreign currency transactions | (15) | |
Total net realized gain (loss) | 1,135,082 | |
Change in net unrealized appreciation (depreciation) on investment securities | (1,174,470) | |
Net gain (loss) | (39,388) | |
Net increase (decrease) in net assets resulting from operations | $4,362,381 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $4,401,769 | $3,733,477 |
Net realized gain (loss) | 1,135,082 | 4,275,580 |
Change in net unrealized appreciation (depreciation) | (1,174,470) | (6,483,065) |
Net increase (decrease) in net assets resulting from operations | 4,362,381 | 1,525,992 |
Distributions to shareholders from net investment income | (3,610,543) | (2,895,366) |
Distributions to shareholders from net realized gain | (4,488,742) | (189,674) |
Total distributions | (8,099,285) | (3,085,040) |
Affiliated share transactions | ||
Proceeds from sales of shares | 14,225,887 | 9,269,293 |
Reinvestment of distributions | 8,099,285 | 3,085,040 |
Cost of shares redeemed | (19,031,721) | (57,435,320) |
Net increase (decrease) in net assets resulting from share transactions | 3,293,451 | (45,080,987) |
Total increase (decrease) in net assets | (443,453) | (46,640,035) |
Net Assets | ||
Beginning of period | 127,147,118 | 173,787,153 |
End of period | $126,703,665 | $127,147,118 |
Other Information | ||
Undistributed net investment income end of period | $1,214,307 | $581,194 |
Shares | ||
Sold | 134,471 | 84,698 |
Issued in reinvestment of distributions | 75,088 | 28,626 |
Redeemed | (181,813) | (522,285) |
Net increase (decrease) | 27,746 | (408,961) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate Equity Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 A |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $112.82 | $113.15 | $95.92 | $100.00 |
Income from Investment Operations | ||||
Net investment income (loss)B | 3.84 | 3.00 | 3.03 | 2.53 |
Net realized and unrealized gain (loss) | .13 | (.91) | 17.03 | (4.24) |
Total from investment operations | 3.97 | 2.09 | 20.06 | (1.71) |
Distributions from net investment income | (3.16)C | (2.29) | (2.83) | (2.37) |
Distributions from net realized gain | (3.90)C | (.12) | – | – |
Total distributions | (7.06) | (2.42)D | (2.83) | (2.37) |
Net asset value, end of period | $109.73 | $112.82 | $113.15 | $95.92 |
Total ReturnE,F | 3.73% | 1.95% | 21.08% | (1.81)% |
Ratios to Average Net AssetsG,H | ||||
Expenses before reductions | .01% | .01% | .01% | .01%I |
Expenses net of fee waivers, if any | .01% | .01% | .01% | .01%I |
Expenses net of all reductions | .01% | .01% | .01% | .01%I |
Net investment income (loss) | 3.59% | 2.72% | 2.86% | 2.71%I |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $126,704 | $127,147 | $173,787 | $251,215 |
Portfolio turnover rateJ | 47% | 64% | 69% | 62%I |
A For the period November 3, 2014 (commencement of operations) to September 30, 2015.
B Calculated based on average shares outstanding during the period.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $2.42 per share is comprised of distributions from net investment income of $2.294 and distributions from net realized gain of $.124 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Telecom Services Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Telecom Services Central Fund | 6.95% | 9.07% | 11.92% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Telecom Services Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422704276_740.jpg)
Period Ending Values | ||
$30,836 | Fidelity® Telecom Services Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Telecom Services Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Matthew Drukker: For the year, the fund returned 6.95%, outpacing the 4.35% gain of the MSCI U.S. IMI Telecommunication Services 25/50 Index, but lagging 17.91% result of the broad-based S&P 500® index. Stock selections primarily drove the fund’s outperformance versus the sector index, especially among integrated telecommunication services companies and alternative carriers – although an underweighting in this latter segment detracted. Underweighting two benchmark components: poor-performing mobile satellite provider Globalstar (-69%) and integrated telecom provider IDT (-45%) added particular value, as each struggled to turn a consistent profit partly due to idiosyncratic challenges. Conversely, stock selection among cable & satellite and wireless telecom services firms detracted versus the sector index. In particular, not holding wireless services provider and sector benchmark component Boingo Wireless (+62%) hurt relative performance, as this company's stock advanced on strong earnings growth.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: Aligned with changes to the Global Industry Classification Standard (GICS) structure, on December 1, 2018, the fund's name will change to Fidelity Communication Services Central Fund, and its supplemental benchmark will change from the MSCI U.S. IM Telecommunication Services 25/50 Index to the MSCI U.S. IM Communication Services 25/50 Index.Fidelity® Telecom Services Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
AT&T, Inc. | 22.1 |
Verizon Communications, Inc. | 18.3 |
T-Mobile U.S., Inc. | 8.2 |
Vonage Holdings Corp. | 3.7 |
Iridium Communications, Inc. | 3.5 |
Comcast Corp. Class A | 3.3 |
Liberty Global PLC Class C | 3.1 |
Zayo Group Holdings, Inc. | 3.1 |
Liberty Broadband Corp. Class A | 3.0 |
Cogent Communications Group, Inc. | 2.7 |
71.0 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Diversified Telecommunication Services | 65.5% | |
Wireless Telecommunication Services | 17.3% | |
Media | 12.3% | |
Software | 2.1% | |
Equity Real Estate Investment Trusts (Reits) | 1.5% | |
All Others* | 1.3% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Telecom Services Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 100.0% | |||
Shares | Value | ||
Communications Equipment - 0.7% | |||
Communications Equipment - 0.7% | |||
Quantenna Communications, Inc. (a) | 155,700 | $2,872,665 | |
Diversified Telecommunication Services - 65.5% | |||
Alternative Carriers - 17.6% | |||
CenturyLink, Inc. | 379,200 | 8,039,040 | |
Cogent Communications Group, Inc. | 199,946 | 11,156,987 | |
Globalstar, Inc. (a)(b) | 3,521,312 | 1,788,827 | |
Iliad SA | 31,311 | 4,089,784 | |
Iridium Communications, Inc. (a) | 640,114 | 14,402,565 | |
ORBCOMM, Inc. (a) | 439,667 | 4,774,784 | |
Vonage Holdings Corp. (a) | 1,055,041 | 14,939,381 | |
Zayo Group Holdings, Inc. (a) | 360,926 | 12,531,351 | |
71,722,719 | |||
Integrated Telecommunication Services - 47.9% | |||
AT&T, Inc. | 2,688,448 | 90,278,082 | |
Atlantic Tele-Network, Inc. | 103,710 | 7,662,095 | |
Bandwidth, Inc. (a) | 27,500 | 1,473,175 | |
Cincinnati Bell, Inc. (a) | 433,363 | 6,912,140 | |
Consolidated Communications Holdings, Inc. (b) | 510,709 | 6,659,645 | |
Frontier Communications Corp. (b) | 483,417 | 3,137,376 | |
Masmovil Ibercom SA (a) | 38,400 | 4,431,681 | |
Verizon Communications, Inc. | 1,397,250 | 74,599,178 | |
195,153,372 | |||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | 266,876,091 | ||
Equity Real Estate Investment Trusts (REITs) - 1.5% | |||
Specialized REITs - 1.5% | |||
American Tower Corp. | 27,863 | 4,048,494 | |
Equinix, Inc. | 5,100 | 2,207,739 | |
6,256,233 | |||
Internet Software & Services - 0.6% | |||
Internet Software & Services - 0.6% | |||
Gogo, Inc. (a)(b) | 423,177 | 2,196,289 | |
Media - 12.3% | |||
Cable & Satellite - 12.3% | |||
Altice U.S.A., Inc. Class A | 139,472 | 2,530,022 | |
Comcast Corp. Class A | 377,100 | 13,353,111 | |
DISH Network Corp. Class A (a) | 36,700 | 1,312,392 | |
GCI Liberty, Inc. (a) | 79,503 | 4,054,653 | |
Liberty Broadband Corp. Class A (a) | 145,300 | 12,253,149 | |
Liberty Global PLC Class C (a) | 451,564 | 12,716,042 | |
Liberty Latin America Ltd. (a) | 96,097 | 1,982,481 | |
Megacable Holdings S.A.B. de CV unit | 387,500 | 1,993,614 | |
50,195,464 | |||
Software - 2.1% | |||
Home Entertainment Software - 2.1% | |||
Activision Blizzard, Inc. | 102,300 | 8,510,337 | |
Wireless Telecommunication Services - 17.3% | |||
Wireless Telecommunication Services - 17.3% | |||
Shenandoah Telecommunications Co. | 229,015 | 8,874,331 | |
Sprint Corp. (a)(b) | 1,655,142 | 10,824,629 | |
T-Mobile U.S., Inc. (a) | 477,015 | 33,476,913 | |
Telephone & Data Systems, Inc. | 291,580 | 8,872,779 | |
U.S. Cellular Corp. (a) | 184,196 | 8,248,297 | |
70,296,949 | |||
TOTAL COMMON STOCKS | |||
(Cost $351,904,220) | 407,204,028 | ||
Money Market Funds - 2.8% | |||
Fidelity Cash Central Fund, 2.11% (c) | 373,050 | 373,125 | |
Fidelity Securities Lending Cash Central Fund 2.11% (c)(d) | 11,133,544 | 11,134,658 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $11,507,081) | 11,507,783 | ||
TOTAL INVESTMENT IN SECURITIES - 102.8% | |||
(Cost $363,411,301) | 418,711,811 | ||
NET OTHER ASSETS (LIABILITIES) - (2.8)% | (11,316,413) | ||
NET ASSETS - 100% | $407,395,398 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $46,287 |
Fidelity Securities Lending Cash Central Fund | 546,993 |
Total | $593,280 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Telecom Services Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $9,589,569) — See accompanying schedule: Unaffiliated issuers (cost $351,904,220) | $407,204,028 | |
Fidelity Central Funds (cost $11,507,081) | 11,507,783 | |
Total Investment in Securities (cost $363,411,301) | $418,711,811 | |
Receivable for fund shares sold | 223,432 | |
Dividends receivable | 40,428 | |
Distributions receivable from Fidelity Central Funds | 25,043 | |
Total assets | 419,000,714 | |
Liabilities | ||
Payable for fund shares redeemed | $471,152 | |
Other payables and accrued expenses | 4,389 | |
Collateral on securities loaned | 11,129,775 | |
Total liabilities | 11,605,316 | |
Net Assets | $407,395,398 | |
Net Assets consist of: | ||
Paid in capital | $357,813,228 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,718,283) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 55,300,453 | |
Net Assets, for 2,161,390 shares outstanding | $407,395,398 | |
Net Asset Value, offering price and redemption price per share ($407,395,398 ÷ 2,161,390 shares) | $188.49 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $7,612,375 | |
Non-Cash dividends | 2,502,369 | |
Income from Fidelity Central Funds (including $546,993 from security lending) | 593,280 | |
Total income | 10,708,024 | |
Expenses | ||
Custodian fees and expenses | $9,252 | |
Independent directors' fees and expenses | 1,746 | |
Interest | 274 | |
Miscellaneous | 7 | |
Total expenses before reductions | 11,279 | |
Expense reductions | (538) | |
Total expenses after reductions | 10,741 | |
Net investment income (loss) | 10,697,283 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,635,590 | |
Redemptions in-kind with affiliated entities | 29,760,814 | |
Fidelity Central Funds | 2,718 | |
Foreign currency transactions | (75) | |
Total net realized gain (loss) | 35,399,047 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (18,533,594) | |
Fidelity Central Funds | (6,134) | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) | (18,539,736) | |
Net gain (loss) | 16,859,311 | |
Net increase (decrease) in net assets resulting from operations | $27,556,594 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $10,697,283 | $9,725,365 |
Net realized gain (loss) | 35,399,047 | 29,762,911 |
Change in net unrealized appreciation (depreciation) | (18,539,736) | (10,613,717) |
Net increase (decrease) in net assets resulting from operations | 27,556,594 | 28,874,559 |
Distributions to shareholders from net investment income | (12,286,003) | (9,203,456) |
Distributions to shareholders from net realized gain | (31,019,369) | (3,625,582) |
Total distributions | (43,305,372) | (12,829,038) |
Affiliated share transactions | ||
Proceeds from sales of shares | 136,943,118 | 35,075,340 |
Reinvestment of distributions | 43,305,372 | 12,828,118 |
Cost of shares redeemed | (136,671,112) | (68,479,567) |
Net increase (decrease) in net assets resulting from share transactions | 43,577,378 | (20,576,109) |
Total increase (decrease) in net assets | 27,828,600 | (4,530,588) |
Net Assets | ||
Beginning of period | 379,566,798 | 384,097,386 |
End of period | $407,395,398 | $379,566,798 |
Other Information | ||
Undistributed net investment income end of period | $– | $474,822 |
Shares | ||
Sold | 777,149 | 181,306 |
Issued in reinvestment of distributions | 239,963 | 66,434 |
Redeemed | (763,009) | (346,490) |
Net increase (decrease) | 254,103 | (98,750) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Telecom Services Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $199.01 | $191.47 | $155.23 | $163.86 | $155.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | 5.12B | 4.88 | 4.49 | 3.75 | 7.09C |
Net realized and unrealized gain (loss) | 7.10 | 9.03 | 36.05 | (8.58) | 7.91 |
Total from investment operations | 12.22 | 13.91 | 40.54 | (4.83) | 15.00 |
Distributions from net investment income | (5.99) | (4.62) | (4.30) | (3.80) | (7.09) |
Distributions from net realized gain | (16.75) | (1.76) | – | – | – |
Total distributions | (22.74) | (6.37)D | (4.30) | (3.80) | (7.09) |
Net asset value, end of period | $188.49 | $199.01 | $191.47 | $155.23 | $163.86 |
Total ReturnE | 6.95% | 7.41% | 26.33% | (3.10)% | 9.75% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | - %H | .01% | .01% | - %H | .01% |
Expenses net of fee waivers, if any | - %H | .01% | .01% | - %H | .01% |
Expenses net of all reductions | - %H | .01% | .01% | - %H | .01% |
Net investment income (loss) | 2.84%B | 2.48% | 2.51% | 2.24% | 4.35%C |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $407,395 | $379,567 | $384,097 | $277,097 | $286,592 |
Portfolio turnover rateI | 75%J | 75%J | 68% | 58% | 97%J |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $1.20 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.18%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $3.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.51%.
D Total distributions of 6.37 per share is comprised of distributions from net investment income of $4.618 and distributions from net realized gain of $1.755 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Utilities Central Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Utilities Central Fund | 12.46% | 12.14% | 11.34% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Utilities Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422702746_740.jpg)
Period Ending Values | ||
$29,275 | Fidelity® Utilities Central Fund | |
$30,962 | S&P 500® Index |
Fidelity® Utilities Central Fund
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 17.91% for the year ending September 30, 2018, as the U.S. equity bellwether overcame heightened volatility early on to end the period just shy of its record closing high. In late January, stocks began a sharp retreat amid concern that rising inflation and the potential for the economy to overheat would prompt the U.S. Federal Reserve to pick up the pace of interest rate hikes. In February, the index posted its first negative monthly result since October 2016, and then lost further ground in March on fear related to global trade. The market stabilized in April and turned upward through mid-June, when trade tension between the U.S. and China soured investor sentiment. Uncertainty lingered into July, but strong corporate earnings helped the S&P 500 rise 7.71% in the final three months of the period. For the full 12 months, growth handily topped value, extending a trend that began in early 2017. By sector, information technology (+38%) led the way amid strong earnings growth from several major index constituents. Consumer discretionary was close behind, with its 36% gain driven mainly by retailers. Health care was the only other group to top the broader market, rising 18%. Energy (+14%) moved higher alongside oil prices but nonetheless trailed the index, as did communication services (+12%). At the back of the pack were materials (+4%) and two defensive sectors that struggled amid investors’ preference for risk: utilities (+3%) and consumer staples (+3%).Comments from Portfolio Manager Douglas Simmons: For the year, the fund returned 12.46%, significantly outpacing the 4.35% return of its sector benchmark, the MSCI IMI U.S. Utilities 25/50 Index, but lagging the 17.91% return of the broadly based S&P 500®. Utilities performed well for much of the period, driven by their perception as being more defensive, conservative investments. Security selection largely drove the fund's outperformance of the sector index, although market selections, especially overweighting independent power producers & energy traders, also helped. Choices among electric utilities, including the fund’s sizable position in NextEra Energy (+17%) added notable value. NextEra Energy is one of the biggest investors in wind and solar project in North America, deriving roughly 40% of its electric capacity from wind and solar power generation. Elsewhere, an overweighting in independent power producers NRG Energy (+47%) and AES (+33%) contributed. Conversely, stock picks among cable & satellite companies, a group outside the sector benchmark, detracted. Most notably, the fund's stake in cable provider Comcast (-13%) dragged on the fund’s relative result, as the company's aggressive bidding for Britain's cable provider Sky weighed on Comcast's stock price.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Utilities Central Fund
Investment Summary (Unaudited)
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
NextEra Energy, Inc. | 8.2 |
PG&E Corp. | 7.1 |
Exelon Corp. | 6.6 |
Dominion Resources, Inc. | 6.6 |
Public Service Enterprise Group, Inc. | 6.3 |
FirstEnergy Corp. | 5.9 |
Edison International | 5.1 |
Evergy, Inc. | 4.8 |
Sempra Energy | 4.8 |
Southern Co. | 4.5 |
59.9 |
Top Industries (% of fund's net assets)
As of September 30, 2018 | ||
Electric Utilities | 62.6% | |
Multi-Utilities | 24.1% | |
Independent Power and Renewable Electricity Producers | 4.9% | |
Equity Real Estate Investment Trusts (Reits) | 2.7% | |
Gas Utilities | 2.7% | |
All Others* | 3.0% |
* Includes short-term investments and net other assets (liabilities).
Fidelity® Utilities Central Fund
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value | ||
Electric Utilities - 62.6% | |||
Electric Utilities - 62.6% | |||
American Electric Power Co., Inc. | 310,300 | $21,994,064 | |
Duke Energy Corp. | 162,292 | 12,986,606 | |
Edison International | 473,900 | 32,073,552 | |
El Paso Electric Co. | 92,900 | 5,313,880 | |
Entergy Corp. | 289,100 | 23,454,683 | |
Evergy, Inc. | 549,613 | 30,184,746 | |
Eversource Energy | 303,700 | 18,659,328 | |
Exelon Corp. | 946,945 | 41,343,619 | |
FirstEnergy Corp. | 998,640 | 37,119,449 | |
NextEra Energy, Inc. | 305,065 | 51,128,894 | |
PG&E Corp. | 960,839 | 44,208,202 | |
Pinnacle West Capital Corp. | 102,000 | 8,076,360 | |
PPL Corp. | 746,474 | 21,841,829 | |
Southern Co. | 642,500 | 28,013,000 | |
Vistra Energy Corp. (a) | 621,208 | 15,455,655 | |
391,853,867 | |||
Equity Real Estate Investment Trusts (REITs) - 2.7% | |||
Specialized REITs - 2.7% | |||
InfraReit, Inc. | 788,502 | 16,676,817 | |
Gas Utilities - 2.7% | |||
Gas Utilities - 2.7% | |||
Chesapeake Utilities Corp. | 17,444 | 1,463,552 | |
South Jersey Industries, Inc. | 437,400 | 15,427,098 | |
16,890,650 | |||
Independent Power and Renewable Electricity Producers - 4.9% | |||
Independent Power Producers & Energy Traders - 2.9% | |||
NRG Energy, Inc. | 231,943 | 8,674,668 | |
NRG Yield, Inc. Class C | 256,000 | 4,928,000 | |
The AES Corp. | 319,894 | 4,478,516 | |
18,081,184 | |||
Renewable Electricity - 2.0% | |||
NextEra Energy Partners LP | 254,736 | 12,354,696 | |
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 30,435,880 | ||
Media - 1.7% | |||
Cable & Satellite - 1.7% | |||
Comcast Corp. Class A | 309,700 | 10,966,477 | |
Multi-Utilities - 24.1% | |||
Multi-Utilities - 24.1% | |||
Avangrid, Inc. | 204,291 | 9,791,668 | |
Dominion Resources, Inc. | 584,100 | 41,050,548 | |
NiSource, Inc. | 402,400 | 10,027,808 | |
Public Service Enterprise Group, Inc. | 744,800 | 39,317,992 | |
SCANA Corp. | 522,323 | 20,313,141 | |
Sempra Energy | 263,323 | 29,952,991 | |
150,454,148 | |||
Oil, Gas & Consumable Fuels - 1.1% | |||
Oil & Gas Storage & Transport - 1.1% | |||
Cheniere Energy, Inc. (a) | 103,532 | 7,194,439 | |
TOTAL COMMON STOCKS | |||
(Cost $534,149,849) | 624,472,278 | ||
Money Market Funds - 0.2% | |||
Fidelity Cash Central Fund, 2.11% (b) | |||
(Cost $1,118,338) | 1,118,115 | 1,118,338 | |
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $535,268,187) | 625,590,616 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (153,392) | ||
NET ASSETS - 100% | $625,437,224 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm,are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $153,563 |
Fidelity Securities Lending Cash Central Fund | 5,472 |
Total | $159,035 |
Amounts in the 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.
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Utilities Central Fund
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $534,149,849) | $624,472,278 | |
Fidelity Central Funds (cost $1,118,338) | 1,118,338 | |
Total Investment in Securities (cost $535,268,187) | $625,590,616 | |
Receivable for investments sold | 2,720,215 | |
Receivable for fund shares sold | 313,052 | |
Dividends receivable | 1,277,379 | |
Distributions receivable from Fidelity Central Funds | 12,241 | |
Other receivables | 689 | |
Total assets | 629,914,192 | |
Liabilities | ||
Payable for investments purchased | $3,861,979 | |
Payable for fund shares redeemed | 610,970 | |
Other payables and accrued expenses | 4,019 | |
Total liabilities | 4,476,968 | |
Net Assets | $625,437,224 | |
Net Assets consist of: | ||
Paid in capital | $496,730,574 | |
Undistributed net investment income | 2,669,884 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 35,714,770 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 90,321,996 | |
Net Assets, for 3,285,883 shares outstanding | $625,437,224 | |
Net Asset Value, offering price and redemption price per share ($625,437,224 ÷ 3,285,883 shares) | $190.34 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $16,479,157 | |
Income from Fidelity Central Funds (including $5,472 from security lending) | 159,035 | |
Total income | 16,638,192 | |
Expenses | ||
Custodian fees and expenses | $8,520 | |
Independent directors' fees and expenses | 2,586 | |
Miscellaneous | 11 | |
Total expenses before reductions | 11,117 | |
Expense reductions | (354) | |
Total expenses after reductions | 10,763 | |
Net investment income (loss) | 16,627,429 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 48,313,430 | |
Redemptions in-kind with affiliated entities | 23,415,877 | |
Fidelity Central Funds | (110) | |
Foreign currency transactions | 3,944 | |
Total net realized gain (loss) | 71,733,141 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (17,661,711) | |
Fidelity Central Funds | (769) | |
Assets and liabilities in foreign currencies | (393) | |
Total change in net unrealized appreciation (depreciation) | (17,662,873) | |
Net gain (loss) | 54,070,268 | |
Net increase (decrease) in net assets resulting from operations | $70,697,697 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $16,627,429 | $14,082,345 |
Net realized gain (loss) | 71,733,141 | 23,807,933 |
Change in net unrealized appreciation (depreciation) | (17,662,873) | 35,526,805 |
Net increase (decrease) in net assets resulting from operations | 70,697,697 | 73,417,083 |
Distributions to shareholders from net investment income | (15,349,761) | (12,188,641) |
Distributions to shareholders from net realized gain | (31,029,277) | – |
Total distributions | (46,379,038) | (12,188,641) |
Affiliated share transactions | ||
Proceeds from sales of shares | 207,343,028 | 46,589,917 |
Reinvestment of distributions | 46,379,038 | 12,188,125 |
Cost of shares redeemed | (153,927,139) | (81,725,834) |
Net increase (decrease) in net assets resulting from share transactions | 99,794,927 | (22,947,792) |
Total increase (decrease) in net assets | 124,113,586 | 38,280,650 |
Net Assets | ||
Beginning of period | 501,323,638 | 463,042,988 |
End of period | $625,437,224 | $501,323,638 |
Other Information | ||
Undistributed net investment income end of period | $2,669,884 | $1,827,201 |
Shares | ||
Sold | 1,181,944 | 281,722 |
Issued in reinvestment of distributions | 263,771 | 71,826 |
Redeemed | (866,220) | (489,262) |
Net increase (decrease) | 579,495 | (135,714) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Utilities Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $185.24 | $162.92 | $144.05 | $155.14 | $130.43 |
Income from Investment Operations | |||||
Net investment income (loss)A | 5.36 | 5.08 | 4.73 | 4.36 | 4.11 |
Net realized and unrealized gain (loss) | 16.04 | 21.62 | 18.44 | (11.35) | 24.33 |
Total from investment operations | 21.40 | 26.70 | 23.17 | (6.99) | 28.44 |
Distributions from net investment income | (5.04) | (4.38) | (4.30) | (4.10) | (3.73) |
Distributions from net realized gain | (11.25) | – | – | – | – |
Total distributions | (16.30)B | (4.38) | (4.30) | (4.10) | (3.73) |
Net asset value, end of period | $190.34 | $185.24 | $162.92 | $144.05 | $155.14 |
Total ReturnC | 12.46% | 16.66% | 16.23% | (4.66)% | 21.98% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductionsF | -% | -% | -% | -% | -% |
Expenses net of fee waivers, if anyF | -% | -% | -% | -% | -% |
Expenses net of all reductionsF | -% | -% | -% | -% | -% |
Net investment income (loss) | 2.95% | 2.96% | 3.03% | 2.78% | 2.80% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $625,437 | $501,324 | $463,043 | $406,258 | $482,971 |
Portfolio turnover rateG | 112%H | 47%H | 76% | 110% | 121%H |
A Calculated based on average shares outstanding during the period.
B Total distributions of 16.30 per share is comprised of distributions from net investment income of 5.043 and distributions from net realized gain of 11.253 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than .005%.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended September 30, 2018
1. Organization.
Fidelity Consumer Discretionary Central Fund (Consumer Discretionary), Fidelity Consumer Staples Central Fund (Consumer Staples), Fidelity Energy Central Fund (Energy), Fidelity Financials Central Fund (Financials), Fidelity Health Care Central Fund (Health Care), Fidelity Industrials Central Fund (Industrials), Fidelity Information Technology Central Fund (Information Technology), Fidelity Materials Central Fund (Materials), Fidelity Real Estate Equity Central Fund (Real Estate Equity), Fidelity Telecom Services Central Fund (Telecom Services), and Fidelity Utilities Central Fund (Utilities), collectively referred to as the Funds, are funds of Fidelity Central Investment Portfolios LLC (the LLC) and are authorized to issue an unlimited number of shares. In June 2018, the Board of Directors approved a change in the name of Fidelity Telecom Services Central Fund to Fidelity Communication Services Central Fund effective December 1, 2018. 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. Shares of each Fund are only offered to other investment companies and accounts managed by Fidelity Management & Research Company (FMR), or its affiliates (the Investing Funds). All of the Funds are non-diversified, with the exception of Financials and Health Care. The Funds invest primarily in securities of companies whose principal business activities fall within specific industries. The Funds are referred to as Fidelity Central Funds and may also invest in other Fidelity Central Funds available only to investment companies and other accounts managed by FMR and its affiliates.
2. Investments in Fidelity Central Funds.
The Funds 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 Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
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 delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
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.
The following provides information on Level 3 securities held by Information Technology that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 61,229,798 | Market approach | Transaction price | $5.61 - $48.77 / $32.97 | Increase |
Discount for lack of marketability | 20.0% | Decrease | |||
Recovery value | Recovery value | 0.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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 September 30, 2018, as well as a roll forward of Level 3 investments, is included in each applicable Fund's Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' 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 for certain Funds include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are 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 Funds represent a return of capital or capital gain. The Funds determine 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. During the period, dividend income has been reduced $866,762 for Telecom Services, with a corresponding increase to net unrealized appreciation (depreciation) as a result of a change in the prior period estimate, which had no impact on the total net assets or total return of the Fund. Large, non-recurring dividends recognized by the Funds are presented separately on the Statement of Operations as "Non-Cash Dividends" or "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each 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 September 30, 2018, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each 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. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Energy is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications for certain funds. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), certain foreign taxes, partnerships, redemptions in kind, and certain deemed distributions and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
Consumer Discretionary | $1,674,973,112 | $796,606,968 | $(44,510,574) | $752,096,394 |
Consumer Staples | 1,274,708,713 | 145,922,653 | (117,435,601) | 28,487,052 |
Energy | 1,052,571,555 | 225,049,638 | (29,958,925) | 195,090,713 |
Financials | 3,105,249,986 | 621,283,345 | (93,702,238) | 527,581,107 |
Health Care | 2,539,386,242 | 906,323,992 | (64,038,636) | 842,285,356 |
Industrials | 1,838,845,332 | 452,565,627 | (64,628,007) | 387,937,620 |
Information Technology | 4,681,068,900 | 1,361,671,791 | (146,763,686) | 1,214,908,105 |
Materials | 530,885,058 | 56,799,797 | (33,732,850) | 23,066,947 |
Real Estate Equity | 115,580,032 | 13,843,341 | (2,828,288) | 11,015,053 |
Telecom Services | 369,692,459 | 77,277,429 | (28,258,077) | 49,019,352 |
Utilities | 537,976,674 | 91,358,251 | (3,744,309) | 87,613,942 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income | Undistributed long-term capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) on securities and other investments | |
Consumer Discretionary | $5,894,780 | $57,357,119 | $– | $752,052,489 |
Consumer Staples | 4,542,963 | 96,427,353 | – | 28,494,040 |
Energy | 27,897 | – | (15,574,507) | 192,659,603 |
Financials | 13,892,579 | 139,075,993 | – | 527,582,525 |
Health Care | 3,486,333 | 120,879,074 | – | 842,287,585 |
Industrials | 3,059,442 | 79,112,248 | – | 387,939,114 |
Information Technology | 3,538,117 | 729,732,022 | – | 1,214,878,077 |
Materials | 1,692,230 | 35,878,276 | – | 23,064,751 |
Real Estate Equity | 1,214,308 | 2,204,545 | – | 11,015,053 |
Telecom Services | – | 562,875 | – | 49,019,295 |
Utilities | 10,138,017 | 30,955,123 | – | 87,613,509 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | ||||
Short-term | Long-term | Total capital loss carryfoward | ||
Energy | (3,447,139) | (12,127,368) | (15,574,507) |
Certain of the Funds intend to elect to defer to the next fiscal year capital losses recognized during the period November 1, 2017 to September 30, 2018. Loss deferrals were as follows:
Capital losses | |
Consumer Staples | (23,583,745) |
Materials | (6,309,744) |
Real Estate Equity | (1,132,863) |
The tax character of distributions paid was as follows:
September 30, 2018 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Consumer Discretionary | $23,569,557 | $88,405,008 | $111,974,565 |
Consumer Staples | 42,170,256 | 97,604,846 | 139,775,102 |
Energy | 26,596,631 | 4,281,872 | 30,878,503 |
Financials | 64,370,440 | 186,820,958 | 251,191,398 |
Health Care | 29,803,987 | 68,885,706 | 98,689,693 |
Industrials | 35,231,733 | 75,694,613 | 110,926,346 |
Information Technology | 276,897,718 | 317,317,554 | 594,215,272 |
Materials | 14,575,645 | 23,004,948 | 37,580,593 |
Real Estate Equity | 3,701,515 | 4,397,770 | 8,099,285 |
Telecom Services | 18,751,073 | 24,554,299 | 43,305,372 |
Utilities | 19,858,147 | 26,520,891 | 46,379,038 |
September 30, 2017 | |||
Ordinary Income | Long-term Capital Gains | Total | |
Consumer Discretionary | $16,424,895 | $– | $16,424,895 |
Consumer Staples | 36,430,010 | 11,092,420 | 47,522,430 |
Energy | 20,000,843 | – | 20,000,843 |
Financials | 43,499,996 | 3,360,772 | 46,860,768 |
Health Care | 17,273,204 | – | 17,273,204 |
Industrials | 21,372,265 | 5,046,225 | 26,418,490 |
Information Technology | 41,132,901 | 4,939,340 | 46,072,241 |
Materials | 7,046,584 | – | 7,046,584 |
Real Estate Equity | 2,907,603 | 177,437 | 3,085,040 |
Telecom Services | 10,242,583 | 2,586,455 | 12,829,038 |
Utilities | 12,188,641 | – | 12,188,641 |
Restricted Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Consumer Discretionary | 798,362,003 | 525,996,111 |
Consumer Staples | 1,190,791,170 | 970,181,369 |
Energy | 682,839,454 | 572,653,888 |
Financials | 2,128,147,278 | 1,612,484,420 |
Health Care | 2,432,145,755 | 2,047,505,755 |
Industrials | 1,598,268,966 | 1,209,715,153 |
Information Technology | 5,147,460,887 | 4,783,876,530 |
Materials | 478,903,958 | 413,205,450 |
Real Estate Equity | 57,358,628 | 57,611,166 |
Telecom Services | 301,053,295 | 275,473,888 |
Utilities | 679,189,305 | 611,933,235 |
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides each Fund with investment management services. The Funds do not pay any fees for these services. Pursuant to each Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract FMR pays all other expenses of each Fund, excluding custody fees, the compensation of the independent Directors, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Consumer Discretionary | $8,284 |
Consumer Staples | 33,777 |
Energy | 15,818 |
Financials | 33,019 |
Health Care | 54,839 |
Industrials | 33,190 |
Information Technology | 116,875 |
Materials | 14,819 |
Real Estate Equity | 670 |
Telecom Services | 12,911 |
Utilities | 14,372 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Consumer Discretionary | Borrower | $7,312,857 | 1.64% | $2,334 |
Consumer Staples | Borrower | 7,641,000 | 2.14% | 453 |
Information Technology | Borrower | 7,857,071 | 1.85% | 5,663 |
Telecom Services | Borrower | 7,329,000 | 1.34% | 274 |
Interfund Trades. The 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. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Redemptions In-Kind. During the period, Strategic Advisers Fidelity U.S. Total Stock Fund (the Investing Fund) completed redemption in-kind transactions with each Fund. The Funds delivered investments and cash, as presented in the accompanying table. The net realized gain, as presented in the accompanying table, on investments delivered through the in-kind redemptions is included 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. Each Fund recognized no gain or loss for federal income tax purposes.
Details of the transactions are presented in the accompanying table:
Fund | Value of Investments and Cash Delivered | Redeemed Number of Shares | Net Realized Gain |
Consumer Discretionary Central Fund | $ 378,555,786 | 1,210,681 | $ 155,553,360 |
Consumer Staples Central Fund | 252,919,327 | 1,264,850 | 65,011,527 |
Energy Central Fund | 236,019,145 | 1,770,852 | 75,772,210 |
Financials Central Fund | 648,125,061 | 6,136,967 | 211,708,985 |
Health Care Central Fund | 540,969,646 | 1,316,740 | 219,905,327 |
Industrials Central Fund | 351,576,852 | 1,193,404 | 111,073,545 |
Information Technology Central Fund | 990,210,766 | 2,179,737 | 407,599,634 |
Materials Central Fund | 95,285,035 | 374,592 | 31,881,334 |
Telecom Services Central Fund | 76,741,721 | 436,231 | 29,760,814 |
Utilities Central Fund | 105,225,234 | 598,211 | 23,415,877 |
Exchanges In-Kind. During the period, VIP FundsManager 20%, VIP FundsManager 50%, VIP FundsManager 60%, VIP FundsManager 70%, and VIP FundsManager 85% (the Investing Funds) completed exchanges in-kind transactions with each Fund. The Funds received investments and cash, as presented in the accompanying table. The amount of the in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Details of the transactions are presented in the accompanying table:
Fund | Value of Investments and Cash Delivered | Redeemed Number of Shares |
Consumer Discretionary Central Fund | $420,009,534 | 1,369,492 |
Consumer Staples Central Fund | 278,330,010 | 1,338,189 |
Energy Central Fund | 239,961,028 | 1,866,239 |
Financials Central Fund | 575,771,740 | 5,505,563 |
Health Care Central Fund | 541,001,090 | 1,323,939 |
Industrials Central Fund | 278,038,031 | 959,678 |
Information Technology Central Fund | 1,186,541,219 | 2,614,448 |
Materials Central Fund | 126,544,324 | 506,522 |
Telecom Services Central Fund | 67,398,250 | 388,507 |
Utilities Central Fund | 117,288,521 | 673,607 |
Prior Fiscal Year Exchanges In-Kind. During the prior period, VIP Asset Manager: Growth Portfolio and VIP Asset Manager Portfolio (the Investing Funds) completed exchange in-kind transactions with each Fund. The Investing Funds delivered investments and cash in exchange for shares of each Fund, as presented in the accompanying table. The value of investments delivered from the Investing Funds is included in proceeds from sales of shares in the accompanying Statements of Changes in Net Assets. Each Fund recognized no gain or loss for federal income tax purposes.
Details of the transactions are presented in the accompanying table:
Fund | Value of Investments and Cash Delivered | Exchanged Number of Shares |
Consumer Discretionary | $56,561,990 | 227,138 |
Consumer Staples | 39,235,872 | 183,071 |
Energy | 34,322,119 | 270,083 |
Financials | 98,879,378 | 1,088,740 |
Health Care | 66,542,763 | 201,413 |
Industrials | 50,997,163 | 199,332 |
Information Technology | 109,126,057 | 339,365 |
Materials | 15,146,995 | 70,151 |
Telecom Services | 12,919,521 | 69,136 |
Utilities | 14,935,496 | 96,739 |
6. Security Lending.
Certain Funds lend portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Funds. On the settlement date of the loan, each applicable Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds. FCM security lending activity was as follows:
Security Lending Income From Securities Loaned to FCM | Value of Securities Loaned to FCM at Period End | |
Consumer Discretionary | $2,530 | $138,972 |
Consumer Staples | 597 | – |
Energy | 546 | – |
Financials | – | – |
Health Care | 68,896 | 980,331 |
Industrials | 474 | – |
Information Technology | 87,759 | 11,902,866 |
Materials | – | – |
Real Estate Equity | – | – |
Telecom Services | 14,901 | – |
Utilities | – | – |
7. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. During the period, the reduction of expenses for each Fund is noted in the table below.
Fund | Custody Earnings Credits |
Consumer Discretionary | $– |
Consumer Staples | 199 |
Energy | 1,334 |
Financials | 1,436 |
Health Care | 6,042 |
Industrials | 796 |
Information Technology | 2,259 |
Materials | 266 |
Real Estate Equity | – |
Telecom Services | 538 |
Utilities | 354 |
8. Other.
The Funds' 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 Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or its affiliates were the owners of record of all of the outstanding shares of the Funds.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Central Investment Portfolios LLC and the Shareholders of Fidelity Consumer Discretionary Central Fund, Fidelity Consumer Staples Central Fund, Fidelity Energy Central Fund, Fidelity Financials Central Fund, Fidelity Health Care Central Fund, Fidelity Industrials Central Fund, Fidelity Information Technology Central Fund, Fidelity Materials Central Fund, Fidelity Real Estate Equity Central Fund, Fidelity Telecom Services Central Fund and Fidelity Utilities Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Consumer Discretionary Central Fund, Fidelity Consumer Staples Central Fund, Fidelity Energy Central Fund, Fidelity Financials Central Fund, Fidelity Health Care Central Fund, Fidelity Industrials Central Fund, Fidelity Information Technology Central Fund, Fidelity Materials Central Fund, Fidelity Real Estate Equity Central Fund, Fidelity Telecom Services Central Fund and Fidelity Utilities Central Fund (the "Funds"), each a fund of Fidelity Central Investment Portfolios LLC, including the schedules of investments, as of September 30, 2018, and the related statements of operations for the year then ended, the statements 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 each of the Funds as of September 30, 2018, and the results of their operations for the year then ended, the changes in their 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 Funds' management. Our responsibility is to express an opinion on the Funds' 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 Funds 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 Funds are not required to have, nor were we engaged to perform, an audit of their 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 Funds' 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 September 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 15, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Directors and Officers (Trustees and Officers)
The Trustees, Members of the Advisory Board (if any), and officers of the Fidelity Central Investment Portfolios LLC and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 283 funds. Mr. Wiley oversees 193 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the Fidelity Central Investment Portfolios LLC or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2004
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2004
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2017
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 to September 30, 2018).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period-B April 1, 2018 to September 30, 2018 | |
Consumer Discretionary | .0019% | |||
Actual | $1,000.00 | $1,148.50 | $.01 | |
Hypothetical-C | $1,000.00 | $1,025.06 | $.01 | |
Consumer Staples | .0030% | |||
Actual | $1,000.00 | $1,003.80 | $.02 | |
Hypothetical-C | $1,000.00 | $1,025.05 | $.02 | |
Energy | .0034% | |||
Actual | $1,000.00 | $1,131.00 | $.02 | |
Hypothetical-C | $1,000.00 | $1,025.05 | $.02 | |
Financials | .0020% | |||
Actual | $1,000.00 | $1,009.70 | $.01 | |
Hypothetical-C | $1,000.00 | $1,025.06 | $.01 | |
Health Care | .0034% | |||
Actual | $1,000.00 | $1,205.50 | $.02 | |
Hypothetical-C | $1,000.00 | $1,025.05 | $.02 | |
Industrials | .0022% | |||
Actual | $1,000.00 | $1,074.40 | $.01 | |
Hypothetical-C | $1,000.00 | $1,025.06 | $.01 | |
Information Technology | .0061% | |||
Actual | $1,000.00 | $1,122.80 | $.03 | |
Hypothetical-C | $1,000.00 | $1,025.04 | $.03 | |
Materials | .0049% | |||
Actual | $1,000.00 | $974.30 | $.02 | |
Hypothetical-C | $1,000.00 | $1,025.04 | $.02 | |
Real Estate Equity | .0104% | |||
Actual | $1,000.00 | $1,109.30 | $.05 | |
Hypothetical-C | $1,000.00 | $1,025.02 | $.05 | |
Telecom Services | .0030% | |||
Actual | $1,000.00 | $1,123.80 | $.02 | |
Hypothetical-C | $1,000.00 | $1,025.05 | $.02 | |
Utilities | .0021% | |||
Actual | $1,000.00 | $1,096.10 | $.01 | |
Hypothetical-C | $1,000.00 | $1,025.06 | $.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Money Market Central Funds in which each Fund invests are not included in each Fund's annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended September 30, 2018, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Consumer Discretionary Central Fund | 83,487,511 |
Fidelity Consumer Staples Central Fund | 116,847,986 |
Fidelity Financials Central Fund | 147,440,762 |
Fidelity Health Care Central Fund | 136,185,190 |
Fidelity Industrials Central Fund | 98,613,793 |
Fidelity Information Technology Central Fund | 926,048,122 |
Fidelity Materials Central Fund | 45,354,993 |
Fidelity Real Estate Equity Central Fund | 2,439,514 |
Fidelity Telecom Services Central Fund | 2,233,523 |
Fidelity Utilities Central Fund | 38,931,458 |
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:
Fidelity Consumer Discretionary Central Fund | |
October 2017 | 14% |
November 2017 | 14% |
December 2017 | 61% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Consumer Staples Central Fund | |
October 2017 | 0% |
November 2017 | 32% |
December 2017 | 78% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Energy Central Fund | |
October 2017 | 18% |
November 2017 | 18% |
December 2017 | 39% |
February 2018 | 89% |
March 2018 | 89% |
April 2018 | 89% |
May 2018 | 89% |
June 2018 | 89% |
July 2018 | 89% |
August 2018 | 89% |
September 2018 | 89% |
Fidelity Financials Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 58% |
February 2018 | 85% |
March 2018 | 85% |
April 2018 | 85% |
May 2018 | 85% |
June 2018 | 85% |
July 2018 | 85% |
August 2018 | 85% |
September 2018 | 85% |
Fidelity Health Care Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 35% |
February 2018 | 66% |
March 2018 | 66% |
April 2018 | 66% |
May 2018 | 66% |
June 2018 | 66% |
July 2018 | 66% |
August 2018 | 66% |
September 2018 | 66% |
Fidelity Industrials Central Fund | |
October 2017 | 17% |
November 2017 | 0% |
December 2017 | 43% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Information Technology Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 2% |
February 2018 | – |
March 2018 | 62% |
April 2018 | 62% |
May 2018 | 62% |
June 2018 | 62% |
July 2018 | 62% |
August 2018 | 62% |
September 2018 | 62% |
Fidelity Materials Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 22% |
February 2018 | 82% |
March 2018 | 82% |
April 2018 | 82% |
May 2018 | 82% |
June 2018 | 82% |
July 2018 | 82% |
August 2018 | 82% |
September 2018 | 82% |
Fidelity Real Estate Equity Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 0% |
February 2018 | 0% |
March 2018 | 0% |
April 2018 | 0% |
May 2018 | 0% |
June 2018 | 0% |
July 2018 | 0% |
August 2018 | 0% |
September 2018 | 0% |
Fidelity Telecom Services Central Fund | |
October 2017 | 0% |
November 2017 | 55% |
December 2017 | 90% |
February 2018 | 76% |
March 2018 | 76% |
April 2018 | 76% |
May 2018 | 76% |
June 2018 | 76% |
July 2018 | 76% |
August 2018 | 76% |
September 2018 | – |
Fidelity Utilities Central Fund | |
October 2017 | 34% |
November 2017 | 34% |
December 2017 | 59% |
February 2018 | – |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Fidelity Consumer Discretionary Central Fund | |
October 2017 | 31% |
November 2017 | 31% |
December 2017 | 69% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Consumer Staples Central Fund | |
October 2017 | 0% |
November 2017 | 36% |
December 2017 | 87% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Energy Central Fund | |
October 2017 | 32% |
November 2017 | 32% |
December 2017 | 52% |
February 2018 | 99% |
March 2018 | 99% |
April 2018 | 99% |
May 2018 | 99% |
June 2018 | 99% |
July 2018 | 99% |
August 2018 | 99% |
September 2018 | 99% |
Fidelity Financials Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 63% |
February 2018 | 89% |
March 2018 | 89% |
April 2018 | 89% |
May 2018 | 89% |
June 2018 | 89% |
July 2018 | 89% |
August 2018 | 89% |
September 2018 | 89% |
Fidelity Health Care Central Fund | |
October 2017 | 5% |
November 2017 | 5% |
December 2017 | 39% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Industrials Central Fund | |
October 2017 | 26% |
November 2017 | 0% |
December 2017 | 48% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Information Technology Central Fund | |
October 2017 | 0% |
November 2017 | 0% |
December 2017 | 2% |
February 2018 | – |
March 2018 | 73% |
April 2018 | 73% |
May 2018 | 73% |
June 2018 | 73% |
July 2018 | 73% |
August 2018 | 73% |
September 2018 | 73% |
Fidelity Materials Central Fund | |
October 2017 | 5% |
November 2017 | 5% |
December 2017 | 32% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
Fidelity Real Estate Equity Central Fund | |
November 2017 | 0% |
December 2017 | 0% |
February 2018 | 0% |
March 2018 | 0% |
April 2018 | 0% |
May 2018 | 0% |
June 2018 | 0% |
July 2018 | 0% |
August 2018 | 0% |
September 2018 | 0% |
Fidelity Telecom Services Central Fund | |
October 2017 | 0% |
November 2017 | 56% |
December 2017 | 90% |
February 2018 | 100% |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | – |
Fidelity Utilities Central Fund | |
October 2017 | 33% |
November 2017 | 33% |
December 2017 | 62% |
February 2018 | – |
March 2018 | 100% |
April 2018 | 100% |
May 2018 | 100% |
June 2018 | 100% |
July 2018 | 100% |
August 2018 | 100% |
September 2018 | 100% |
The funds will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Consumer Discretionary Central Fund
Fidelity Consumer Staples Central Fund
Fidelity Energy Central Fund
Fidelity Financials Central Fund
Fidelity Health Care Central Fund
Fidelity Industrials Central Fund
Fidelity Information Technology Central Fund
Fidelity Materials Central Fund
Fidelity Real Estate Equity Central Fund
Fidelity Telecom Services Central Fund
Fidelity Utilities Central Fund
At its July 2018 meeting, the Board of Directors, including the Independent Directors (together, the Board), voted to continue the management contracts with FMR Co., Inc. (FMRC) and the sub-advisory agreements (together, the Advisory Contracts) for the funds for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the funds, and the Sector Portfolios Board.
The Board considered that the approval of the funds' Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the funds' assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the funds' Advisory Contracts; or (iv) the day-to-day management of each fund or the persons primarily responsible for such management. The Board concluded that the funds' Advisory Contracts are fair and reasonable, and that the funds' Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the funds' Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for each fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing each fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the funds) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the funds' management fee structures are fair and reasonable, and that the continuation of the funds' Advisory Contracts should be approved.
ESCIP-ANN-1118
1.831584.112
Fidelity® International Equity Central Fund Annual Report September 30, 2018 |
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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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® International Equity Central Fund | 2.30% | 4.91% | 5.44% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Equity Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the MSCI World ex USA Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422702235_740.jpg)
Period Ending Values | ||
$16,986 | Fidelity® International Equity Central Fund | |
$16,845 | MSCI World ex USA Index |
Management's Discussion of Fund Performance
Market Recap: The MSCI ACWI (All Country World Index) ex USA Index gained 1.94% for the 12 months ending September 30, 2018. Global economic growth became somewhat less synchronous due to escalating trade conflicts, as well as concerns about inflation, decelerating manufacturing activity, the strength of the U.S. dollar and signs of more-mature expansion in some key regions, particularly later in the period. For the full 12 months, Japan gained about 11%, outperforming the rest of the Asia-Pacific region (+4%). Crude-oil commodity-price strength provided support for Canada (+3%). Europe and emerging markets each turned in a modestly negative result, with the latter category hampered by currency headwinds that weighed heavily on Argentina and Turkey. From a sector perspective, 6 of 11 groups advanced. Energy (+19%) led the way amid higher crude prices, largely driven by declining global inventories as demand outpaced supply. Health care (+8%) and materials (+6%) also topped the broader market, as did information technology (+5%). Conversely, notable laggards included some defensive, yield-oriented segments of the market, such as real estate (-2%) and utilities (-1%), that were held back by rising interest rates. The newly reconstituted communication services sector returned -4%, while financials (-2%) and consumer discretionary (-1%) also lost ground.Comments from Portfolio Manager Steven Kaye: For the year, the fund gained 2.30%, trailing the 2.90% return of its benchmark, the MSCI World ex US Index.Versus the benchmark, security selection hurt, especially within communication services and consumer staples. Market allocations detracted to a lesser degree. Geographically, picks in the U.K. and Australia hurt notably, as did non-benchmark holdings in the U.S., including advertising and marketing firm MDC Partners. The stock fell the most in May, after the firm announced it was unlikely to hit its goal of increasing organic growth by 4% in 2018. Overweightings in French manufacturing firm Saint-Gobain and U.K.-based British American Tobacco also detracted. Conversely, choices in Europe ex U.K. added value. Among individual stocks, shares of Japan-based staffing firm Recruit contributed more than any other fund position, benefiting from strong revenue and its June acquisition of salaries and jobs website Glassdoor.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to shareholders: On November 1, 2018, Faris Rahman, Allyson Ke and Jennifer Moon all became Co-Managers for the fund. Grace Anne-Wood is no longer a Co-Manager for the fund. Effective August 29, 2018: John McHale is no longer a Co-Manager for the fund. On July 31, 2018, Nathan Strik assumed co-management responsibilities for the fund, succeeding Ashley Fernandes. Effective June 30, 2018: Sumit Mehra is no longer a Co-Manager for the fund. On October 31, 2017, Masaki Nakamura and Guillermo de las Casas assumed co-management responsibilities, succeeding Andrew Sergeant.Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
As of September 30, 2018 | ||
Japan | 19.2% | |
United Kingdom | 16.7% | |
France | 10.1% | |
Germany | 8.3% | |
Canada | 6.2% | |
Switzerland | 6.0% | |
United States of America* | 5.3% | |
Netherlands | 4.1% | |
Spain | 2.5% | |
Other | 21.6% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable.
Asset Allocation as of September 30, 2018
% of fund's net assets | |
Stocks and Equity Futures | 97.5 |
Short-Term Investments and Net Other Assets (Liabilities) | 2.5 |
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.9 |
BP PLC (United Kingdom, Oil, Gas & Consumable Fuels) | 1.5 |
British American Tobacco PLC (United Kingdom) | 1.4 |
Deutsche Post AG (Germany, Air Freight & Logistics) | 1.3 |
AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals) | 1.3 |
Royal Bank of Canada (Canada, Banks) | 1.3 |
Total SA (France, Oil, Gas & Consumable Fuels) | 1.2 |
Nestle SA (Reg. S) (Switzerlang, Food Products) | 1.2 |
Linde AG (Germany, Chemicals) | 1.2 |
Recruit Holdings Co. Ltd. (Japan, Professional Services) | 1.2 |
13.5 |
Top Market Sectors as of September 30, 2018
% of fund's net assets | |
Financials | 21.7 |
Industrials | 14.2 |
Consumer Discretionary | 11.9 |
Consumer Staples | 10.1 |
Health Care | 10.0 |
Materials | 7.5 |
Energy | 7.3 |
Information Technology | 6.1 |
Utilities | 3.1 |
Real Estate | 2.9 |
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.8% | |||
Shares | Value | ||
Australia - 2.0% | |||
Abacus Property Group unit | 2,470,075 | $6,088,534 | |
Aub Group Ltd. | 629,399 | 6,060,081 | |
Australia & New Zealand Banking Group Ltd. | 502,222 | 10,230,218 | |
Commonwealth Bank of Australia | 501,036 | 25,862,836 | |
HUB24 Ltd. | 427,869 | 3,934,107 | |
TOTAL AUSTRALIA | 52,175,776 | ||
Austria - 0.8% | |||
Erste Group Bank AG | 511,391 | 21,244,394 | |
Bailiwick of Jersey - 1.5% | |||
Glencore Xstrata PLC | 5,260,081 | 22,741,318 | |
Randgold Resources Ltd. | 73,100 | 5,170,263 | |
Shire PLC | 212,200 | 12,820,253 | |
TOTAL BAILIWICK OF JERSEY | 40,731,834 | ||
Belgium - 2.3% | |||
Anheuser-Busch InBev SA NV | 215,416 | 18,856,563 | |
KBC Groep NV | 261,185 | 19,438,251 | |
Umicore SA | 382,064 | 21,367,991 | |
TOTAL BELGIUM | 59,662,805 | ||
Bermuda - 0.2% | |||
Cheung Kong Infrastructure Holdings Ltd. | 550,860 | 4,362,774 | |
Brazil - 0.1% | |||
Notre Dame Intermedica Participacoes SA | 425,000 | 2,775,068 | |
Canada - 6.2% | |||
Barrick Gold Corp. | 512,600 | 5,671,083 | |
Canadian Natural Resources Ltd. | 150,900 | 4,930,113 | |
Cenovus Energy, Inc. (Canada) | 1,190,800 | 11,957,323 | |
Great-West Lifeco, Inc. | 334,600 | 8,118,580 | |
Hydro One Ltd. (a) | 250,800 | 3,813,504 | |
Imperial Oil Ltd. | 183,300 | 5,931,901 | |
Intact Financial Corp. | 202,300 | 16,821,136 | |
Kinder Morgan Canada Ltd. (a) | 386,700 | 5,098,518 | |
Lundin Mining Corp. | 1,497,500 | 7,930,089 | |
MDC Partners, Inc. Class A (b) | 1,418,300 | 5,885,945 | |
Royal Bank of Canada | 410,800 | 32,930,153 | |
Suncor Energy, Inc. | 627,700 | 24,288,659 | |
TELUS Corp. | 139,420 | 5,138,998 | |
The Toronto-Dominion Bank | 438,200 | 26,628,203 | |
TOTAL CANADA | 165,144,205 | ||
Cayman Islands - 0.3% | |||
Alibaba Group Holding Ltd. sponsored ADR (b) | 23,700 | 3,904,812 | |
Tencent Holdings Ltd. | 88,000 | 3,593,113 | |
TOTAL CAYMAN ISLANDS | 7,497,925 | ||
China - 0.3% | |||
PICC Property & Casualty Co. Ltd. (H Shares) | 5,785,000 | 6,828,182 | |
Denmark - 1.2% | |||
A.P. Moller - Maersk A/S Series B | 17,800 | 25,006,703 | |
Jyske Bank A/S (Reg.) | 115,100 | 5,574,991 | |
TOTAL DENMARK | 30,581,694 | ||
Finland - 0.7% | |||
Stora Enso Oyj (R Shares) | 937,900 | 17,940,431 | |
France - 10.1% | |||
Capgemini SA | 61,700 | 7,765,428 | |
Christian Dior SA | 17,600 | 7,540,323 | |
Compagnie de St. Gobain | 675,400 | 29,110,405 | |
Danone SA | 237,411 | 18,450,444 | |
ENGIE | 504,080 | 7,412,344 | |
Iliad SA | 9 | 1,176 | |
Ipsen SA | 59,000 | 9,919,082 | |
Kering SA | 38,600 | 20,691,792 | |
LVMH Moet Hennessy - Louis Vuitton SA | 76,045 | 26,872,097 | |
Remy Cointreau SA | 61,909 | 8,064,874 | |
Sanofi SA | 252,255 | 22,538,285 | |
Societe Generale Series A | 465,519 | 19,989,575 | |
Suez Environnement SA | 267,591 | 3,802,803 | |
Total SA | 500,353 | 32,533,330 | |
Total SA rights (b)(c)(d) | 500,353 | 371,798 | |
Veolia Environnement SA | 215,500 | 4,301,046 | |
VINCI SA | 327,394 | 31,148,205 | |
Vivendi SA | 147,740 | 3,799,438 | |
Wendel SA | 89,946 | 13,388,157 | |
TOTAL FRANCE | 267,700,602 | ||
Germany - 7.8% | |||
Akasol AG | 11,164 | 618,674 | |
BASF AG | 215,147 | 19,090,679 | |
Bayer AG | 134,738 | 11,951,351 | |
Deutsche Borse AG | 109,450 | 14,634,199 | |
Deutsche Post AG | 1,005,631 | 35,754,540 | |
Deutsche Telekom AG | 1,007,030 | 16,211,809 | |
E.ON AG | 623,868 | 6,348,321 | |
Fresenius SE & Co. KGaA | 55,000 | 4,038,364 | |
LEG Immobilien AG | 72,459 | 8,602,141 | |
Linde AG | 135,000 | 31,928,294 | |
Morphosys AG sponsored ADR | 105,000 | 2,803,500 | |
ProSiebenSat.1 Media AG | 514,749 | 13,336,132 | |
RWE AG | 232,930 | 5,746,922 | |
SAP SE | 227,659 | 27,993,762 | |
Scout24 AG (a) | 152,590 | 7,114,931 | |
TOTAL GERMANY | 206,173,619 | ||
Hong Kong - 2.3% | |||
AIA Group Ltd. | 2,584,600 | 23,078,112 | |
China Resources Beer Holdings Co. Ltd. | 1,653,333 | 6,642,182 | |
CLP Holdings Ltd. | 588,460 | 6,889,365 | |
Dah Sing Banking Group Ltd. | 2,595,200 | 5,218,015 | |
Dah Sing Financial Holdings Ltd. | 899,600 | 5,763,020 | |
Hysan Development Co. Ltd. | 1,298,000 | 6,557,691 | |
Sino Land Ltd. | 4,190,000 | 7,182,842 | |
TOTAL HONG KONG | 61,331,227 | ||
Hungary - 0.4% | |||
OTP Bank PLC | 303,800 | 11,258,984 | |
India - 0.5% | |||
Axis Bank Ltd. (b) | 1,457,397 | 12,325,868 | |
Indonesia - 0.2% | |||
PT Bank Danamon Indonesia Tbk Series A | 6,479,800 | 3,130,863 | |
PT Bank Rakyat Indonesia Tbk | 15,355,500 | 3,245,970 | |
TOTAL INDONESIA | 6,376,833 | ||
Ireland - 2.4% | |||
Greencore Group PLC | 4,266,447 | 10,293,202 | |
Irish Residential Properties REIT PLC | 4,270,400 | 7,328,143 | |
James Hardie Industries PLC CDI | 1,296,987 | 19,650,567 | |
Ryanair Holdings PLC sponsored ADR (b) | 276,680 | 26,572,347 | |
TOTAL IRELAND | 63,844,259 | ||
Italy - 0.8% | |||
Banca Generali SpA | 426,184 | 11,024,610 | |
Enel SpA | 1,918,936 | 9,808,691 | |
TOTAL ITALY | 20,833,301 | ||
Japan - 19.2% | |||
Advance Residence Investment Corp. | 3,391 | 8,661,047 | |
AEON Financial Service Co. Ltd. | 281,900 | 5,837,975 | |
Bandai Namco Holdings, Inc. | 528,010 | 20,517,199 | |
Chubu Electric Power Co., Inc. | 284,910 | 4,309,257 | |
Chugai Pharmaceutical Co. Ltd. | 221,300 | 14,218,359 | |
Daikin Industries Ltd. | 160,700 | 21,389,754 | |
DaikyoNishikawa Corp. | 921,900 | 10,653,535 | |
Hakuhodo DY Holdings, Inc. | 665,100 | 11,666,470 | |
Honda Motor Co. Ltd. | 616,400 | 18,563,663 | |
Hoya Corp. | 352,300 | 20,929,634 | |
Ichigo, Inc. | 1,638,200 | 6,142,169 | |
Iida Group Holdings Co. Ltd. | 493,200 | 8,772,727 | |
JSR Corp. | 854,700 | 15,955,102 | |
Keyence Corp. | 20,550 | 11,933,542 | |
Makita Corp. | 563,200 | 28,204,612 | |
Minebea Mitsumi, Inc. | 557,700 | 10,111,442 | |
Mitsubishi UFJ Financial Group, Inc. | 3,176,300 | 19,733,376 | |
Money Forward, Inc. (c) | 70,100 | 3,115,693 | |
Nidec Corp. | 50,900 | 7,322,307 | |
Nintendo Co. Ltd. | 32,300 | 11,751,820 | |
Nippon Paint Holdings Co. Ltd. | 206,300 | 7,698,574 | |
Nippon Telegraph & Telephone Corp. | 271,150 | 12,237,093 | |
ORIX Corp. | 874,800 | 14,182,200 | |
Panasonic Corp. | 1,745,700 | 20,234,808 | |
Recruit Holdings Co. Ltd. | 956,500 | 31,922,619 | |
Renesas Electronics Corp. (b) | 952,400 | 5,951,452 | |
SMC Corp. | 54,700 | 17,504,770 | |
SoftBank Corp. | 68,740 | 6,867,097 | |
Sony Corp. | 507,900 | 30,874,063 | |
Sony Financial Holdings, Inc. | 273,600 | 6,029,699 | |
Suzuki Motor Corp. | 342,000 | 19,589,298 | |
Takeda Pharmaceutical Co. Ltd. (c) | 220,000 | 9,406,771 | |
TDK Corp. | 63,500 | 6,924,529 | |
Terumo Corp. | 215,000 | 12,734,994 | |
Tokio Marine Holdings, Inc. | 205,500 | 10,195,419 | |
Tokyo Gas Co. Ltd. | 187,024 | 4,596,590 | |
Toyota Boshoku Corp. | 497,100 | 9,279,608 | |
VT Holdings Co. Ltd. | 786,300 | 3,474,059 | |
Welcia Holdings Co. Ltd. | 166,400 | 9,431,579 | |
Yahoo! Japan Corp. | 2,573,300 | 9,263,155 | |
TOTAL JAPAN | 508,188,060 | ||
Korea (South) - 0.3% | |||
Cafe24 Corp. (b) | 29,000 | 3,909,596 | |
S-Fuelcell Co. Ltd. (b)(d) | 16,300 | 242,367 | |
Samsung Electro-Mechanics Co. Ltd. | 27,510 | 3,445,939 | |
TOTAL KOREA (SOUTH) | 7,597,902 | ||
Luxembourg - 0.2% | |||
Tenaris SA | 330,800 | 5,540,056 | |
Netherlands - 4.1% | |||
Adyen BV (a) | 7,477 | 6,102,863 | |
ASML Holding NV (Netherlands) | 87,878 | 16,499,498 | |
ASR Nederland NV | 186,908 | 8,910,411 | |
Ferrari NV (c) | 18,300 | 2,505,453 | |
Koninklijke Philips Electronics NV | 400,585 | 18,259,259 | |
NIBC Holding NV | 956,036 | 9,209,716 | |
NXP Semiconductors NV | 97,200 | 8,310,600 | |
Unilever NV: | |||
(Certificaten Van Aandelen) (Bearer) | 424,825 | 23,630,818 | |
(NY Reg.) | 252,700 | 14,037,485 | |
TOTAL NETHERLANDS | 107,466,103 | ||
Norway - 0.7% | |||
Aker Bp ASA | 146,100 | 6,200,331 | |
Equinor ASA | 450,669 | 12,708,160 | |
TOTAL NORWAY | 18,908,491 | ||
Portugal - 0.2% | |||
Galp Energia SGPS SA Class B | 307,824 | 6,107,950 | |
Singapore - 1.1% | |||
Parkway Life REIT | 4,917,900 | 9,713,127 | |
United Overseas Bank Ltd. | 628,813 | 12,456,206 | |
UOL Group Ltd. | 1,134,500 | 5,717,936 | |
TOTAL SINGAPORE | 27,887,269 | ||
South Africa - 0.7% | |||
Naspers Ltd. Class N | 90,800 | 19,594,372 | |
Spain - 2.5% | |||
Atresmedia Corporacion de Medios de Comunicacion SA (c) | 1,137,100 | 7,063,230 | |
CaixaBank SA | 4,743,574 | 21,573,406 | |
Cellnex Telecom Sau (a) | 174,210 | 4,577,291 | |
Endesa SA | 205,440 | 4,438,971 | |
Gas Natural SDG SA (c) | 196,970 | 5,376,549 | |
Grifols SA ADR | 373,650 | 7,984,901 | |
Iberdrola SA | 498,583 | 3,668,940 | |
Masmovil Ibercom SA (b) | 82,344 | 9,503,187 | |
Melia Hotels International SA | 256,300 | 2,868,643 | |
TOTAL SPAIN | 67,055,118 | ||
Sweden - 2.4% | |||
D. Carnegie & Co. AB (b) | 431,800 | 8,269,276 | |
Essity AB Class B | 281,800 | 7,083,525 | |
HEXPOL AB (B Shares) | 598,530 | 6,599,899 | |
Lundin Petroleum AB | 181,673 | 6,954,245 | |
Nordea Bank AB | 1,436,724 | 15,658,245 | |
Radisson Hospitality AB (b) | 4,816,350 | 19,753,354 | |
TOTAL SWEDEN | 64,318,544 | ||
Switzerland - 6.0% | |||
Credit Suisse Group AG | 1,416,218 | 21,251,005 | |
Lonza Group AG | 45,000 | 15,360,709 | |
Nestle SA (Reg. S) | 386,038 | 32,132,501 | |
Roche Holding AG (participation certificate) | 207,010 | 50,058,213 | |
Sonova Holding AG Class B | 49,200 | 9,790,870 | |
Zurich Insurance Group AG | 93,106 | 29,428,858 | |
TOTAL SWITZERLAND | 158,022,156 | ||
United Kingdom - 16.7% | |||
AstraZeneca PLC (United Kingdom) | 437,000 | 34,061,567 | |
BP PLC | 5,173,200 | 39,651,254 | |
British American Tobacco PLC: | |||
(United Kingdom) | 436,325 | 20,341,687 | |
sponsored ADR | 358,800 | 16,730,844 | |
BT Group PLC | 1 | 3 | |
Bunzl PLC | 888,814 | 27,954,127 | |
Conviviality PLC (e) | 451,097 | 6 | |
Diageo PLC | 685,684 | 24,292,475 | |
Great Portland Estates PLC | 513,906 | 4,481,800 | |
HSBC Holdings PLC (United Kingdom) | 1,150,100 | 10,035,068 | |
Imperial Tobacco Group PLC | 125,941 | 4,384,487 | |
Informa PLC | 22,430 | 222,831 | |
International Personal Finance PLC | 2,554,345 | 7,491,000 | |
John David Group PLC | 1,613,300 | 9,653,841 | |
Liberty Global PLC Class A (b) | 199,124 | 5,760,657 | |
Melrose Industries PLC | 6,189,009 | 16,125,442 | |
Micro Focus International PLC | 338,430 | 6,293,734 | |
Moneysupermarket.com Group PLC | 4,988,692 | 18,134,806 | |
Prudential PLC | 1,108,243 | 25,409,849 | |
Reckitt Benckiser Group PLC | 183,600 | 16,771,864 | |
Rolls-Royce Holdings PLC | 1,995,075 | 25,667,435 | |
Royal Dutch Shell PLC: | |||
Class A (United Kingdom) | 482,642 | 16,549,053 | |
Class B (United Kingdom) | 334,314 | 11,703,187 | |
Scottish & Southern Energy PLC | 361,359 | 5,396,484 | |
Senior Engineering Group PLC | 4,060,400 | 16,522,640 | |
Standard Chartered PLC (United Kingdom) | 2,618,735 | 21,721,982 | |
Standard Life PLC | 2,413,057 | 9,621,101 | |
The Weir Group PLC | 999,971 | 22,978,276 | |
Virgin Money Holdings Uk PLC | 2,109,571 | 10,550,272 | |
Vodafone Group PLC | 2,366,122 | 5,069,707 | |
William Hill PLC | 2,275,100 | 7,475,686 | |
TOTAL UNITED KINGDOM | 441,053,165 | ||
United States of America - 2.6% | |||
Chevron Corp. | 46,700 | 5,710,476 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 39,600 | 8,538,552 | |
Edgewell Personal Care Co. (b) | 75,700 | 3,499,611 | |
Freeport-McMoRan, Inc. | 678,300 | 9,441,936 | |
International Flavors & Fragrances, Inc. | 91,500 | 12,729,480 | |
Molson Coors Brewing Co. Class B | 34,700 | 2,134,050 | |
Monster Beverage Corp. (b) | 124,600 | 7,261,688 | |
Philip Morris International, Inc. | 91,900 | 7,493,526 | |
Post Holdings, Inc. (b) | 77,300 | 7,578,492 | |
ResMed, Inc. | 44,000 | 5,074,960 | |
TOTAL UNITED STATES OF AMERICA | 69,462,771 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,267,587,608) | 2,559,991,738 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
Germany - 0.5% | |||
Porsche Automobil Holding SE (Germany) | |||
(Cost $7,523,675) | 168,000 | 11,309,356 | |
Principal Amount | Value | ||
Government Obligations - 0.0% | |||
United States of America - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 2.09% 11/29/18(f) | |||
(Cost $438,503) | 440,000 | 438,472 | |
Shares | Value | ||
Money Market Funds - 2.6% | |||
Fidelity Cash Central Fund, 2.11% (g) | 54,436,674 | 54,447,562 | |
Fidelity Securities Lending Cash Central Fund 2.11% (g)(h) | 14,940,311 | 14,941,805 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $69,389,186) | 69,389,367 | ||
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $2,344,938,972) | 2,641,128,933 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 3,932,271 | ||
NET ASSETS - 100% | $2,645,061,204 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
ICE E-mini MSCI EAFE Index Contracts (United States) | 56 | Dec. 2018 | $5,531,400 | $86,123 | $86,123 |
TME S&P/TSX 60 Index Contracts (Canada) | 4 | Dec. 2018 | 588,581 | 3,282 | 3,282 |
TOTAL FUTURES CONTRACTS | $89,405 |
The notional amount of futures purchased as a percentage of Net Assets is 0.2%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $28,601,702.
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $26,707,107 or 1.0% of net assets.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) Level 3 security
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $438,472.
(g) 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.
(h) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $901,789 |
Fidelity Securities Lending Cash Central Fund | 849,120 |
Total | $1,750,909 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $318,577,254 | $193,587,697 | $124,989,557 | $-- |
Consumer Staples | 267,650,455 | 113,174,097 | 154,476,352 | 6 |
Energy | 196,236,354 | 90,259,474 | 105,976,880 | -- |
Financials | 566,024,293 | 433,397,815 | 132,626,478 | -- |
Health Care | 264,726,140 | 105,630,441 | 159,095,699 | -- |
Industrials | 373,537,991 | 205,218,582 | 168,319,409 | -- |
Information Technology | 162,009,273 | 95,877,346 | 66,131,927 | -- |
Materials | 203,915,706 | 179,654,764 | 24,260,942 | -- |
Real Estate | 78,744,706 | 78,744,706 | -- | -- |
Telecommunication Services | 59,606,361 | 19,220,652 | 40,385,709 | -- |
Utilities | 80,272,561 | 58,719,065 | 21,553,496 | -- |
Government Obligations | 438,472 | -- | 438,472 | -- |
Money Market Funds | 69,389,367 | 69,389,367 | -- | -- |
Total Investments in Securities: | $2,641,128,933 | $1,642,874,006 | $998,254,921 | $6 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $89,405 | $89,405 | $-- | $-- |
Total Assets | $89,405 | $89,405 | $-- | $-- |
Total Derivative Instruments: | $89,405 | $89,405 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended September 30, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $229,343,952 |
Level 2 to Level 1 | $12,916,510 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of September 30, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $89,405 | $0 |
Total Equity Risk | 89,405 | 0 |
Total Value of Derivatives | $89,405 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $13,923,814) — See accompanying schedule: Unaffiliated issuers (cost $2,275,549,786) | $2,571,739,566 | |
Fidelity Central Funds (cost $69,389,186) | 69,389,367 | |
Total Investment in Securities (cost $2,344,938,972) | $2,641,128,933 | |
Cash | 96,519 | |
Receivable for investments sold | 19,811,658 | |
Receivable for fund shares sold | 1,875,037 | |
Dividends receivable | 15,204,034 | |
Distributions receivable from Fidelity Central Funds | 113,996 | |
Other receivables | 990,635 | |
Total assets | 2,679,220,812 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $17,341,915 | |
Delayed delivery | 620,428 | |
Payable for fund shares redeemed | 1,064,723 | |
Payable for daily variation margin on futures contracts | 56,683 | |
Other payables and accrued expenses | 137,702 | |
Collateral on securities loaned | 14,938,157 | |
Total liabilities | 34,159,608 | |
Net Assets | $2,645,061,204 | |
Net Assets consist of: | ||
Paid in capital | $2,240,205,967 | |
Undistributed net investment income | 3,625,716 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 105,099,064 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 296,130,457 | |
Net Assets, for 31,283,958 shares outstanding | $2,645,061,204 | |
Net Asset Value, offering price and redemption price per share ($2,645,061,204 ÷ 31,283,958 shares) | $84.55 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $82,820,852 | |
Interest | 64,928 | |
Income from Fidelity Central Funds | 1,750,909 | |
Income before foreign taxes withheld | 84,636,689 | |
Less foreign taxes withheld | (7,456,653) | |
Total income | 77,180,036 | |
Expenses | ||
Custodian fees and expenses | $319,644 | |
Independent directors' fees and expenses | 13,750 | |
Interest | 1,573 | |
Miscellaneous | 60 | |
Total expenses | 335,027 | |
Net investment income (loss) | 76,845,009 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 158,290,286 | |
Fidelity Central Funds | 1,222 | |
Foreign currency transactions | (885,921) | |
Futures contracts | 5,078,591 | |
Total net realized gain (loss) | 162,484,178 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $79,373) | (159,469,095) | |
Fidelity Central Funds | (1,833) | |
Assets and liabilities in foreign currencies | (243,093) | |
Futures contracts | (705,746) | |
Total change in net unrealized appreciation (depreciation) | (160,419,767) | |
Net gain (loss) | 2,064,411 | |
Net increase (decrease) in net assets resulting from operations | $78,909,420 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $76,845,009 | $70,433,901 |
Net realized gain (loss) | 162,484,178 | 68,040,836 |
Change in net unrealized appreciation (depreciation) | (160,419,767) | 347,369,441 |
Net increase (decrease) in net assets resulting from operations | 78,909,420 | 485,844,178 |
Distributions to shareholders from net investment income | (77,089,559) | (64,190,380) |
Distributions to shareholders from net realized gain | (90,648,501) | (961,276) |
Total distributions | (167,738,060) | (65,151,656) |
Affiliated share transactions | ||
Proceeds from sales of shares | 371,362,580 | 664,808,819 |
Reinvestment of distributions | 167,738,059 | 65,151,250 |
Cost of shares redeemed | (899,594,488) | (194,564,633) |
Net increase (decrease) in net assets resulting from share transactions | (360,493,849) | 535,395,436 |
Total increase (decrease) in net assets | (449,322,489) | 956,087,958 |
Net Assets | ||
Beginning of period | 3,094,383,693 | 2,138,295,735 |
End of period | $2,645,061,204 | $3,094,383,693 |
Other Information | ||
Undistributed net investment income end of period | $3,625,716 | $6,197,364 |
Shares | ||
Sold | 4,209,064 | 8,530,285 |
Issued in reinvestment of distributions | 1,939,830 | 809,722 |
Redeemed | (10,247,744) | (2,481,498) |
Net increase (decrease) | (4,098,850) | 6,858,509 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity International Equity Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $87.45 | $74.96 | $71.96 | $79.13 | $78.06 |
Income from Investment Operations | |||||
Net investment income (loss)A | 2.30 | 2.18 | 2.09 | 2.13 | 2.74B |
Net realized and unrealized gain (loss) | (.27)C | 12.27 | 2.87 | (7.28) | .64 |
Total from investment operations | 2.03 | 14.45 | 4.96 | (5.15) | 3.38 |
Distributions from net investment income | (2.34) | (1.92) | (1.96) | (2.02) | (2.31) |
Distributions from net realized gain | (2.60) | (.03) | – | – | – |
Total distributions | (4.93)D | (1.96)E | (1.96) | (2.02) | (2.31) |
Net asset value, end of period | $84.55 | $87.45 | $74.96 | $71.96 | $79.13 |
Total ReturnF | 2.30% | 19.54% | 6.95% | (6.78)% | 4.24% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .01% | .01% | .01% | .01% | .01% |
Expenses net of fee waivers, if any | .01% | .01% | .01% | .01% | .01% |
Expenses net of all reductions | .01% | .01% | .01% | .01% | .01% |
Net investment income (loss) | 2.63% | 2.74% | 2.87% | 2.67% | 3.34%B |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $2,645,061 | $3,094,384 | $2,138,296 | $2,104,932 | $2,841,400 |
Portfolio turnover rateI | 53% | 61% | 59% | 81% | 67% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.69 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.50%.
C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
D Total distributions of $4.93 per share is comprised of distributions from net investment income of $2.338 and distributions from net realized gain of $2.595 per share.
E Total distributions of $1.96 per share is comprised of distributions from net investment income of $1.921 and distributions from net realized gain of $.034 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended September 30, 2018
1. Organization.
Fidelity International Equity 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 (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.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of September 30, 2018, including information on transfers between Levels 1 and 2 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of September 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnership 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 | $429,580,431 |
Gross unrealized depreciation | (140,650,270) |
Net unrealized appreciation (depreciation) | $288,930,161 |
Tax Cost | $2,352,198,772 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $14,248,319 |
Undistributed long-term capital gain | $101,823,301 |
Net unrealized appreciation (depreciation) on securities and other investments | $288,798,928 |
The tax character of distributions paid was as follows:
September 30, 2018 | September 30, 2017 | |
Ordinary Income | $135,740,362 | $ 65,151,656 |
Long-term Capital Gains | 31,997,698 | – |
Total | $167,738,060 | $ 65,151,656 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,498,548,521 and $1,901,786,438, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR 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. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $8,915 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $34,950,000 | 1.62% | $1,573 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $849,120. During the period, there were no securities loaned to FCM.
8. Other.
The 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, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Central Investment Portfolios LLC and Shareholders of Fidelity International Equity Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity International Equity Central Fund (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of September 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, 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 September 30, 2018, 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 September 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 16, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Directors and Officers (Trustees and Officers)
The Trustees, Members of the Advisory Board (if any), and officers of the Fidelity Central Investments Portfolios LLC and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 283 funds. Michael E. Wiley oversees 193 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the Fidelity Central Investment Portfolios LLC or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2004
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2004
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 to September 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period-B April 1, 2018 to September 30, 2018 | |
Actual | .0113% | $1,000.00 | $997.70 | $.06 |
Hypothetical-C | $1,000.00 | $1,025.01 | $.06 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended September 30, 2018, $ 115,258,613, or, if subsequently determined to be different, the net capital gain of such year.
A percentage of the dividends distributed during the fiscal year for fund qualify for the dividends–received deduction for corporate shareholders:
December 2017 | 1% |
February 2018 | 1% |
March 2018 | 1% |
April 2018 | 1% |
May 2018 | 1% |
June 2018 | 1% |
July 2018 | 1% |
August 2018 | 1% |
September 2018 | 1% |
A percentage of the dividends distributed during the fiscal year for the fund may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code:
December 2017 | 11% |
February 2018 | 84% |
March 2018 | 84% |
April 2018 | 84% |
May 2018 | 84% |
June 2018 | 84% |
July 2018 | 84% |
August 2018 | 84% |
September 2018 | 84% |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are $2.0767 and $0.1286 for the dividend paid December 21, 2017.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity International Equity Central Fund
At its July 2018 meeting, the Board of Directors, including the Independent Directors (together, the Board), voted to continue the management contract with FMR Co., Inc. (FMRC) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
INTCEN-ANN-1118
1.859208.110
Fidelity® Emerging Markets Equity Central Fund Annual Report September 30, 2018 |
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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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Life of fundA |
Fidelity® Emerging Markets Equity Central Fund | (4.20)% | 5.14% | 11.09% |
A From December 9, 2008
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Emerging Markets Equity Central Fund on December 9, 2008, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img426075821_740.jpg)
Period Ending Values | ||
$28,069 | Fidelity® Emerging Markets Equity Central Fund | |
$24,843 | MSCI Emerging Markets Index |
Management's Discussion of Fund Performance
Market Recap: The MSCI ACWI (All Country World Index) ex USA Index gained 1.94% for the 12 months ending September 30, 2018. Global economic growth became somewhat less synchronous due to escalating trade conflicts, as well as concerns about inflation, decelerating manufacturing activity, the strength of the U.S. dollar and signs of more-mature expansion in some key regions, particularly later in the period. For the full 12 months, Japan gained about 11%, outperforming the rest of the Asia-Pacific region (+4%). Crude-oil commodity-price strength provided support for Canada (+3%). Europe and emerging markets each turned in a modestly negative result, with the latter category hampered by currency headwinds that weighed heavily on Argentina and Turkey. From a sector perspective, 6 of 11 groups advanced. Energy (+19%) led the way amid higher crude prices, largely driven by declining global inventories as demand outpaced supply. Health care (+8%) and materials (+6%) also topped the broader market, as did information technology (+5%). Conversely, notable laggards included some defensive, yield-oriented segments of the market, such as real estate (-2%) and utilities (-1%), that were held back by rising interest rates. The newly reconstituted communication services sector returned -4%, while financials (-2%) and consumer discretionary (-1%) also lost ground.Comments from Co-Portfolio Manager Sam Polyak: For the year, the fund returned -4.20%, trailing the -0.78% result of the benchmark MSCI Emerging Markets Index. Stock selection hurt the fund’s relative performance, particularly within communication services and financials. Market selection detracted to a lesser extent. An overweighting in China Literature, a new position this period, detracted more than any other individual holding. Shares of the online reading and writing platform fell in August after the firm reported a decline in monthly paying users from a year ago. Other detractors included China’s e-commerce firm JD.com and Taiwan-based Largan Precision, a major supplier of smartphone camera lenses. Conversely, an average overweighting in Taiwan’s GlobalWafers contributed versus the benchmark, driven partly by a key acquisition. We sold the fund’s stake in Global Wafers by period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to shareholders: On December 1, 2017, Fidelity added a dedicated frontier-markets subportfolio to the fund, representing 5% of assets, and adopted a supplemental benchmark that incorporates the broader exposure. There are no changes to the fund’s primary benchmark or investment policies. Adam Kutas became Co-Manager of the fund and assumed responsibility for the new subportfolio. On June 30, 2018, Jane Wu joined the team as a Co-Manager, while Tim Gannon stepped down from the fund.Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
As of September 30, 2018 | ||
Cayman Islands | 16.8% | |
Korea (South) | 12.8% | |
China | 9.4% | |
India | 8.2% | |
Brazil | 6.7% | |
Taiwan | 5.7% | |
South Africa | 5.0% | |
Russia | 5.0% | |
United States of America* | 4.5% | |
Other | 25.9% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable.
Asset Allocation as of September 30, 2018
% of fund's net assets | |
Stocks and Equity Futures | 96.8 |
Short-Term Investments and Net Other Assets (Liabilities) | 3.2 |
Top Ten Stocks as of September 30, 2018
% of fund's net assets | |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 4.9 |
Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 4.1 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.5 |
Industrial & Commercial Bank of China Ltd. (H Shares) (China, Banks) | 2.4 |
Sberbank of Russia sponsored ADR (Russia, Banks) | 2.2 |
Naspers Ltd. Class N (South Africa, Media) | 2.1 |
Reliance Industries Ltd. (India, Oil, Gas & Consumable Fuels) | 1.6 |
Samsung Electronics Co. Ltd. ((Korea (South), Technology Hardware, Storage Peripherals) | 1.4 |
JD.com, Inc. sponsored ADR (Cayman Islands, Internet & Direct Marketing Retail) | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.2 |
24.8 |
Top Market Sectors as of September 30, 2018
% of fund's net assets | |
Financials | 24.1 |
Information Technology | 21.3 |
Consumer Discretionary | 12.6 |
Materials | 8.1 |
Energy | 7.7 |
Consumer Staples | 6.2 |
Industrials | 4.5 |
Telecommunication Services | 3.3 |
Real Estate | 3.3 |
Health Care | 2.9 |
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Common Stocks - 91.0% | |||
Shares | Value | ||
Argentina - 0.7% | |||
Banco Macro SA sponsored ADR | 11,866 | $490,896 | |
BBVA Banco Frances SA sponsored ADR | 40,814 | 476,299 | |
Bolsas y Mercados Argentinos SA | 18,290 | 159,024 | |
Central Puerto SA sponsored ADR | 47,500 | 489,250 | |
Grupo Financiero Galicia SA sponsored ADR | 44,456 | 1,130,516 | |
Inversiones y Representaciones SA ADR | 10,300 | 174,585 | |
Loma Negra Compania Industrial Argentina SA ADR (a) | 28,248 | 249,712 | |
Pampa Holding SA sponsored ADR (a) | 18,017 | 559,428 | |
Telecom Argentina SA Class B sponsored ADR | 37,244 | 648,790 | |
TOTAL ARGENTINA | 4,378,500 | ||
Australia - 0.0% | |||
Frontier Digital Ventures Ltd. (a) | 704,641 | 280,142 | |
Bangladesh - 0.2% | |||
BRAC Bank Ltd. | 342,298 | 286,183 | |
Olympic Industries Ltd. | 62,416 | 152,017 | |
Square Pharmaceuticals Ltd. | 134,529 | 433,076 | |
The City Bank Ltd. | 378,012 | 143,614 | |
TOTAL BANGLADESH | 1,014,890 | ||
Bermuda - 1.1% | |||
AGTech Holdings Ltd. (a) | 2,476,000 | 189,772 | |
Central European Media Enterprises Ltd. Class A (a) | 56,271 | 211,016 | |
Credicorp Ltd. (United States) | 18,172 | 4,053,810 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 88,607 | 99,828 | |
Pacific Basin Shipping Ltd. | 3,599,000 | 855,115 | |
Shangri-La Asia Ltd. | 1,174,000 | 1,745,625 | |
TOTAL BERMUDA | 7,155,166 | ||
Brazil - 3.1% | |||
Azul SA sponsored ADR (a) | 91,500 | 1,627,785 | |
B2W Companhia Global do Varejo (a) | 398,826 | 2,735,507 | |
Banco do Brasil SA | 255,600 | 1,863,892 | |
BR Malls Participacoes SA | 136,900 | 326,102 | |
BTG Pactual Participations Ltd. unit | 176,100 | 928,781 | |
Companhia de Saneamento de Minas Gerais | 122,130 | 1,177,587 | |
Direcional Engenharia SA | 534,600 | 904,116 | |
Localiza Rent A Car SA | 305,120 | 1,718,805 | |
Natura Cosmeticos SA | 306,800 | 2,155,968 | |
Petrobras Distribuidora SA | 286,900 | 1,385,287 | |
Vale SA sponsored ADR | 407,515 | 6,047,523 | |
TOTAL BRAZIL | 20,871,353 | ||
British Virgin Islands - 0.3% | |||
Despegar.com Corp. | 8,600 | 145,082 | |
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 70,200 | 1,896,804 | |
TOTAL BRITISH VIRGIN ISLANDS | 2,041,886 | ||
Canada - 0.4% | |||
First Quantum Minerals Ltd. | 15,333 | 174,620 | |
Pan American Silver Corp. | 157,200 | 2,320,272 | |
TOTAL CANADA | 2,494,892 | ||
Cayman Islands - 16.8% | |||
58.com, Inc. ADR (a) | 10,982 | 808,275 | |
Alibaba Group Holding Ltd. sponsored ADR (a) | 165,722 | 27,304,357 | |
Ant International Co. Ltd. Class C (b)(c) | 296,486 | 1,663,286 | |
BeiGene Ltd. | 54,100 | 723,559 | |
BizLink Holding, Inc. | 53,658 | 255,330 | |
Chailease Holding Co. Ltd. | 482,240 | 1,693,347 | |
China Biologic Products Holdings, Inc. (a) | 11,170 | 893,600 | |
China Literature Ltd. (a)(d) | 1,173,960 | 7,378,162 | |
China Resources Land Ltd. | 485,460 | 1,699,158 | |
E-House China Enterprise Holdings Ltd. (a) | 97,800 | 180,650 | |
ENN Energy Holdings Ltd. | 152,890 | 1,328,060 | |
Haitian International Holdings Ltd. | 614,000 | 1,366,301 | |
JD.com, Inc. sponsored ADR (a) | 361,599 | 9,434,118 | |
Kingsoft Corp. Ltd. | 2,804,000 | 5,344,125 | |
LexinFintech Holdings Ltd. ADR | 36,200 | 359,466 | |
Meituan Dianping: | |||
Class B | 27,500 | 241,510 | |
Class B | 331,980 | 2,623,958 | |
NetEase, Inc. ADR | 25,900 | 5,911,675 | |
PPDAI Group, Inc. ADR (a)(e) | 69,500 | 373,910 | |
Shenzhou International Group Holdings Ltd. | 196,667 | 2,522,290 | |
Shimao Property Holdings Ltd. | 272,160 | 678,631 | |
SITC International Holdings Co. Ltd. | 215,000 | 173,574 | |
TAL Education Group ADR (a) | 31,600 | 812,436 | |
Tencent Holdings Ltd. | 800,600 | 32,689,158 | |
Uni-President China Holdings Ltd. | 2,977,400 | 3,175,802 | |
Wise Talent Information Technology Co. Ltd. (a) | 274,941 | 813,056 | |
Wuxi Biologics (Cayman), Inc. (a) | 32,500 | 328,597 | |
Zai Lab Ltd. ADR (e) | 30,700 | 598,036 | |
TOTAL CAYMAN ISLANDS | 111,374,427 | ||
Chile - 0.6% | |||
Compania Cervecerias Unidas SA sponsored ADR (e) | 34,300 | 956,970 | |
Sociedad Matriz SAAM SA | 2,680,767 | 244,793 | |
Vina Concha y Toro SA | 1,431,604 | 2,872,631 | |
TOTAL CHILE | 4,074,394 | ||
China - 9.4% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 176,000 | 1,062,293 | |
BBMG Corp. (H Shares) (e) | 4,651,500 | 1,592,420 | |
China International Travel Service Corp. Ltd. (A Shares) | 402,466 | 3,985,491 | |
China Life Insurance Co. Ltd. (H Shares) | 1,639,500 | 3,725,984 | |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 3,444,050 | 2,894,844 | |
China Oilfield Services Ltd. (H Shares) | 2,080,000 | 2,255,801 | |
China Pacific Insurance (Group) Co. Ltd. (H Shares) | 638,300 | 2,462,417 | |
China Petroleum & Chemical Corp. (H Shares) | 5,354,000 | 5,379,429 | |
China Telecom Corp. Ltd. (H Shares) | 3,760,330 | 1,868,553 | |
China Tower Corp. Ltd. Class H | 3,592,000 | 523,083 | |
Hangzhou Tigermed Consulting Co. Ltd. Class A | 173,200 | 1,354,565 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 21,637,000 | 15,797,038 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 197,370 | 1,824,613 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 1,778,500 | 2,099,209 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 721,000 | 7,322,041 | |
Qingdao Haier Co. Ltd. | 664,902 | 1,599,130 | |
Shanghai International Airport Co. Ltd. (A Shares) | 208,236 | 1,781,671 | |
Shenzhen Inovance Technology Co. Ltd. Class A | 129,900 | 523,848 | |
Sinopec Engineering Group Co. Ltd. (H Shares) | 1,038,500 | 1,185,970 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. Class A | 214,500 | 566,475 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 400,000 | 1,880,345 | |
Zhengzhou Yutong Bus Co. Ltd. | 416,490 | 889,510 | |
TOTAL CHINA | 62,574,730 | ||
Colombia - 0.6% | |||
Bancolombia SA | 3,020 | 32,516 | |
Bancolombia SA sponsored ADR | 37,576 | 1,567,671 | |
Ecopetrol SA | 985,874 | 1,340,986 | |
Grupo de Inversiones Suramerica SA | 39,998 | 469,262 | |
Inversiones Argos SA | 89,937 | 494,793 | |
TOTAL COLOMBIA | 3,905,228 | ||
Egypt - 0.0% | |||
Six of October Development & Investment Co. (a) | 184,400 | 224,326 | |
Greece - 0.6% | |||
Fourlis Holdings SA | 27,967 | 167,876 | |
Titan Cement Co. SA (Reg.) | 146,900 | 3,641,419 | |
TOTAL GREECE | 3,809,295 | ||
Hong Kong - 3.5% | |||
AIA Group Ltd. | 107,200 | 957,198 | |
China Everbright International Ltd. | 1,012,000 | 873,890 | |
China Overseas Land and Investment Ltd. | 1,405,420 | 4,398,474 | |
China Resources Beer Holdings Co. Ltd. | 816,666 | 3,280,914 | |
China Resources Power Holdings Co. Ltd. | 454,823 | 804,097 | |
China Unicom Ltd. | 1,102,120 | 1,287,557 | |
China Unicom Ltd. sponsored ADR | 208,900 | 2,442,041 | |
CNOOC Ltd. | 2,989,000 | 5,918,600 | |
CSPC Pharmaceutical Group Ltd. | 251,170 | 533,247 | |
Far East Horizon Ltd. | 2,688,074 | 2,558,157 | |
TOTAL HONG KONG | 23,054,175 | ||
Hungary - 0.0% | |||
OTP Bank PLC | 4,567 | 169,255 | |
India - 8.2% | |||
Adani Ports & Special Economic Zone Ltd. (a) | 409,596 | 1,857,897 | |
Axis Bank Ltd. (a) | 386,643 | 3,270,015 | |
Axis Bank Ltd. GDR (Reg. S) (a) | 5,540 | 234,619 | |
Bharat Petroleum Corp. Ltd. | 358,855 | 1,851,684 | |
Bharti Airtel Ltd. | 128,216 | 598,642 | |
Bharti Infratel Ltd. (a) | 117,084 | 424,593 | |
Federal Bank Ltd. | 1,325,867 | 1,292,771 | |
Future Retail Ltd. | 75,200 | 483,443 | |
GAIL India Ltd. | 185,000 | 966,970 | |
ICICI Bank Ltd. | 372,638 | 1,572,477 | |
ICICI Bank Ltd. sponsored ADR | 705,080 | 5,986,129 | |
IndoStar Capital Finance Ltd. (a) | 67,413 | 296,623 | |
Indraprastha Gas Ltd. | 431,520 | 1,445,839 | |
ITC Ltd. | 904,087 | 3,712,480 | |
JK Cement Ltd. (a) | 107,398 | 1,136,040 | |
Larsen & Toubro Ltd. | 143,178 | 2,511,884 | |
LIC Housing Finance Ltd. | 606,841 | 3,493,248 | |
Mahindra & Mahindra Ltd. | 15,892 | 188,694 | |
Manappuram General Finance & Leasing Ltd. | 1,151,779 | 1,150,032 | |
NTPC Ltd. | 111,200 | 255,878 | |
Oberoi Realty Ltd. | 158,963 | 889,193 | |
Petronet LNG Ltd. | 382,368 | 1,185,177 | |
Phoenix Mills Ltd. (a) | 160,643 | 1,215,734 | |
Power Grid Corp. of India Ltd. | 548,536 | 1,425,240 | |
Reliance Industries Ltd. | 599,083 | 10,393,276 | |
SREI Infrastructure Finance Ltd. | 434,995 | 194,071 | |
State Bank of India (a) | 629,300 | 2,304,222 | |
Sun Pharmaceutical Industries Ltd. | 294,159 | 2,528,404 | |
Tejas Networks Ltd. (a)(d) | 44,091 | 157,794 | |
Torrent Pharmaceuticals Ltd. | 74,632 | 1,700,963 | |
TOTAL INDIA | 54,724,032 | ||
Indonesia - 2.1% | |||
PT Astra International Tbk | 5,390,700 | 2,658,903 | |
PT Bank Mandiri (Persero) Tbk | 5,037,400 | 2,269,921 | |
PT Bank Rakyat Indonesia Tbk | 20,623,400 | 4,359,542 | |
PT Media Nusantara Citra Tbk | 20,105,700 | 1,086,138 | |
PT Semen Gresik (Persero) Tbk | 2,626,900 | 1,749,621 | |
PT Telekomunikasi Indonesia Tbk: | |||
Series B | 5,220,400 | 1,277,824 | |
sponsored ADR | 13,840 | 338,803 | |
TOTAL INDONESIA | 13,740,752 | ||
Israel - 0.2% | |||
Bezeq The Israel Telecommunication Corp. Ltd. | 1,122,327 | 1,290,673 | |
Italy - 0.7% | |||
Prada SpA | 981,500 | 4,701,661 | |
Japan - 0.5% | |||
GMO Internet, Inc. | 29,800 | 519,835 | |
LINE Corp. (a) | 24,500 | 1,032,187 | |
Panasonic Corp. | 76,100 | 882,093 | |
SoftBank Corp. | 6,840 | 683,313 | |
TOTAL JAPAN | 3,117,428 | ||
Kenya - 0.2% | |||
KCB Group Ltd. | 657,133 | 260,896 | |
Safaricom Ltd. | 3,873,433 | 941,927 | |
TOTAL KENYA | 1,202,823 | ||
Korea (South) - 11.3% | |||
AMOREPACIFIC Group, Inc. | 34,509 | 2,901,458 | |
BS Financial Group, Inc. | 704,550 | 5,460,250 | |
Cafe24 Corp. (a) | 3,300 | 444,885 | |
Celltrion, Inc. (a) | 6,500 | 1,739,691 | |
Coway Co. Ltd. | 20,653 | 1,615,493 | |
Daou Technology, Inc. | 103,920 | 2,097,729 | |
Hanon Systems | 137,512 | 1,567,593 | |
Hyundai Fire & Marine Insurance Co. Ltd. | 52,328 | 1,978,192 | |
Hyundai Mobis | 33,453 | 6,873,409 | |
Iljin Materials Co. Ltd. | 22,452 | 1,082,458 | |
InterPark INT Corp. | 11,180 | 63,674 | |
KB Financial Group, Inc. | 144,836 | 7,051,359 | |
KEPCO Plant Service & Engineering Co. Ltd. | 22,042 | 675,355 | |
Korea Electric Power Corp. | 20,144 | 532,973 | |
LG Chemical Ltd. | 13,167 | 4,336,871 | |
LG Corp. | 36,165 | 2,366,069 | |
LG Innotek Co. Ltd. | 9,690 | 1,139,558 | |
NAVER Corp. | 2,400 | 1,548,555 | |
NCSOFT Corp. | 5,706 | 2,275,345 | |
POSCO | 13,401 | 3,556,516 | |
S-Oil Corp. | 5,600 | 691,370 | |
Samsung Biologics Co. Ltd. (a)(d) | 4,800 | 2,309,855 | |
Samsung Electro-Mechanics Co. Ltd. | 6,207 | 777,497 | |
Samsung Electronics Co. Ltd. | 133,102 | 5,571,505 | |
Samsung Life Insurance Co. Ltd. | 20,616 | 1,807,671 | |
Samsung SDI Co. Ltd. | 22,552 | 5,253,489 | |
Shinhan Financial Group Co. Ltd. | 157,070 | 6,344,506 | |
SK Hynix, Inc. | 20,205 | 1,331,001 | |
SK Telecom Co. Ltd. | 2,750 | 696,951 | |
SK Telecom Co. Ltd. sponsored ADR | 25,800 | 719,304 | |
TOTAL KOREA (SOUTH) | 74,810,582 | ||
Kuwait - 0.2% | |||
National Bank of Kuwait | 534,000 | 1,456,524 | |
Luxembourg - 0.8% | |||
Corp. America Airports SA (a) | 27,480 | 234,679 | |
Samsonite International SA | 1,286,700 | 4,766,560 | |
Tenaris SA sponsored ADR | 8,853 | 296,753 | |
TOTAL LUXEMBOURG | 5,297,992 | ||
Malaysia - 0.0% | |||
British American Tobacco (Malaysia) Bhd | 24,000 | 183,951 | |
Mauritius - 0.1% | |||
MakeMyTrip Ltd. (a) | 21,200 | 581,940 | |
Mexico - 2.8% | |||
America Movil S.A.B. de CV Series L sponsored ADR | 117,900 | 1,893,474 | |
Fibra Uno Administracion SA de CV | 1,330,500 | 1,749,685 | |
Gruma S.A.B. de CV Series B | 243,700 | 3,115,464 | |
Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 150,696 | 1,647,397 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 559,632 | 4,046,073 | |
Macquarie Mexican (REIT) (d) | 1,855,226 | 2,218,658 | |
Wal-Mart de Mexico SA de CV Series V | 1,246,900 | 3,799,867 | |
TOTAL MEXICO | 18,470,618 | ||
Morocco - 0.1% | |||
Attijariwafa Bank | 12,751 | 609,111 | |
Netherlands - 1.3% | |||
VEON Ltd. sponsored ADR | 459,900 | 1,333,710 | |
Yandex NV Series A (a) | 219,250 | 7,211,133 | |
TOTAL NETHERLANDS | 8,544,843 | ||
Nigeria - 0.7% | |||
Dangote Cement PLC | 760,210 | 427,406 | |
Guaranty Trust Bank PLC | 10,628,620 | 1,065,413 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 187,574 | 984,764 | |
Nigerian Breweries PLC | 1,218,031 | 305,656 | |
Transnational Corp. of Nigeria PLC | 47,479,063 | 165,371 | |
Zenith Bank PLC | 32,901,109 | 1,940,004 | |
TOTAL NIGERIA | 4,888,614 | ||
Pakistan - 0.2% | |||
Faysal Bank Ltd. | 320,000 | 69,190 | |
Habib Bank Ltd. | 711,000 | 866,678 | |
Indus Motor Co. Ltd. | 10,577 | 119,130 | |
Maple Leaf Cement Factory Ltd. | 377,817 | 143,302 | |
United Bank Ltd. | 296,400 | 367,576 | |
TOTAL PAKISTAN | 1,565,876 | ||
Panama - 0.3% | |||
Copa Holdings SA Class A | 21,300 | 1,700,592 | |
Peru - 0.8% | |||
Alicorp SA Class C | 71,059 | 226,892 | |
Compania de Minas Buenaventura SA sponsored ADR | 350,336 | 4,698,006 | |
Ferreycorp SAA | 249,823 | 177,684 | |
TOTAL PERU | 5,102,582 | ||
Philippines - 1.2% | |||
Ayala Corp. | 51,275 | 881,579 | |
BDO Unibank, Inc. | 338,833 | 752,055 | |
International Container Terminal Services, Inc. | 200,317 | 349,233 | |
Jollibee Food Corp. | 82,763 | 394,073 | |
Metro Pacific Investments Corp. | 10,811,300 | 951,434 | |
Metropolitan Bank & Trust Co. | 1,854,292 | 2,301,761 | |
PUREGOLD Price Club, Inc. | 261,887 | 218,340 | |
Robinsons Land Corp. | 3,054,570 | 1,148,824 | |
SM Investments Corp. | 49,325 | 826,120 | |
Universal Robina Corp. | 125,543 | 336,099 | |
TOTAL PHILIPPINES | 8,159,518 | ||
Poland - 0.1% | |||
Globe Trade Centre SA | 84,448 | 188,970 | |
Inter Cars SA | 2,290 | 158,389 | |
TOTAL POLAND | 347,359 | ||
Qatar - 0.0% | |||
Qatar Islamic Bank (a) | 5,100 | 196,100 | |
Romania - 0.2% | |||
Banca Transilvania SA | 1,113,668 | 644,566 | |
BRD-Groupe Societe Generale | 189,226 | 639,180 | |
TOTAL ROMANIA | 1,283,746 | ||
Russia - 5.0% | |||
Lukoil PJSC sponsored ADR | 87,000 | 6,672,900 | |
MMC Norilsk Nickel PJSC sponsored ADR | 171,900 | 2,973,870 | |
Mobile TeleSystems OJSC | 165,250 | 687,323 | |
Mobile TeleSystems OJSC sponsored ADR | 81,600 | 696,048 | |
NOVATEK OAO GDR (Reg. S) | 23,175 | 4,264,200 | |
Sberbank of Russia | 2,045,450 | 6,322,680 | |
Sberbank of Russia sponsored ADR | 638,792 | 8,099,883 | |
Tatneft PAO | 176,100 | 2,245,629 | |
Unipro PJSC | 28,343,800 | 1,167,304 | |
TOTAL RUSSIA | 33,129,837 | ||
Saudi Arabia - 0.2% | |||
Abdullah Al Othaim Markets Co. | 16,500 | 303,584 | |
Al Rajhi Bank | 15,800 | 363,170 | |
Aldrees Petroleum and Transport Services Co. | 33,300 | 247,739 | |
Mouwasat Medical Services Co. | 4,800 | 107,770 | |
SABIC | 1,000 | 32,958 | |
Saudi Co. for Hardware CJSC | 10,100 | 207,645 | |
United International Transportation Co. | 41,800 | 307,632 | |
TOTAL SAUDI ARABIA | 1,570,498 | ||
Singapore - 0.3% | |||
Ascendas Real Estate Investment Trust | 362,200 | 699,468 | |
First Resources Ltd. | 1,228,500 | 1,509,733 | |
TOTAL SINGAPORE | 2,209,201 | ||
South Africa - 5.0% | |||
African Rainbow Minerals Ltd. | 24,900 | 226,422 | |
Anglo American Platinum Ltd. | 8,500 | 277,698 | |
Barclays Africa Group Ltd. | 440,441 | 4,730,429 | |
Bidvest Group Ltd. | 127,862 | 1,672,728 | |
City Lodge Hotels Ltd. | 3,600 | 35,564 | |
DRDGOLD Ltd. | 511,545 | 121,570 | |
FirstRand Ltd. | 673,600 | 3,232,899 | |
Imperial Holdings Ltd. | 206,067 | 2,550,109 | |
Mr Price Group Ltd. | 83,700 | 1,351,038 | |
MTN Group Ltd. | 138,800 | 859,620 | |
Nampak Ltd. (a) | 259,310 | 281,292 | |
Naspers Ltd. Class N | 64,200 | 13,854,170 | |
Pretoria Portland Cement Co. Ltd. (a) | 418,734 | 190,990 | |
Sanlam Ltd. | 53,100 | 297,056 | |
Sasol Ltd. | 91,100 | 3,519,744 | |
Shoprite Holdings Ltd. | 13,816 | 187,242 | |
Steinhoff Africa Retail Ltd. (a)(d) | 130,000 | 146,352 | |
TOTAL SOUTH AFRICA | 33,534,923 | ||
Spain - 0.1% | |||
Cemex Latam Holdings SA (a) | 87,579 | 159,622 | |
Prosegur Cash SA (d) | 100,200 | 219,645 | |
TOTAL SPAIN | 379,267 | ||
Sri Lanka - 0.0% | |||
Chevron Lubricants Lanka Ltd. | 2,815 | 1,084 | |
Taiwan - 5.7% | |||
Chroma ATE, Inc. | 164,000 | 788,462 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 232,000 | 602,993 | |
King's Town Bank | 1,089,000 | 1,097,148 | |
LandMark Optoelectronics Corp. | 103,000 | 965,033 | |
Largan Precision Co. Ltd. | 17,000 | 2,027,927 | |
MediaTek, Inc. | 42,000 | 339,755 | |
Nanya Technology Corp. | 373,000 | 711,187 | |
PChome Online, Inc. | 67,009 | 304,566 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 2,512,869 | 21,486,585 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 51,780 | 2,286,605 | |
Unified-President Enterprises Corp. | 2,230,000 | 5,832,600 | |
United Microelectronics Corp. | 2,542,000 | 1,343,880 | |
TOTAL TAIWAN | 37,786,741 | ||
Thailand - 1.4% | |||
AEON Thana Sinsap Thailand PCL | 6,000 | 38,776 | |
PTT Global Chemical PCL (For. Reg.) | 1,239,400 | 3,113,830 | |
PTT PCL (For. Reg.) | 147,500 | 247,430 | |
Siam Cement PCL (For. Reg.) | 313,900 | 4,328,986 | |
Thai Beverage PCL | 291,033 | 144,766 | |
Total Access Communication PCL (For. Reg.) | 884,500 | 1,285,451 | |
TOTAL THAILAND | 9,159,239 | ||
Turkey - 0.6% | |||
Aselsan A/S | 233,000 | 1,064,794 | |
Tupras Turkiye Petrol Rafinerileri A/S | 116,358 | 2,587,404 | |
Turkcell Iletisim Hizmet A/S | 142,493 | 272,468 | |
Turkcell Iletisim Hizmet A/S sponsored ADR | 68,300 | 329,206 | |
TOTAL TURKEY | 4,253,872 | ||
United Arab Emirates - 1.2% | |||
DP World Ltd. | 94,502 | 1,804,988 | |
Dubai Financial Market PJSC | 846,594 | 210,899 | |
Dubai Parks and Resorts PJSC (a) | 1,104,210 | 105,220 | |
Emaar Properties PJSC | 2,228,333 | 3,003,062 | |
National Bank of Abu Dhabi PJSC | 679,654 | 2,646,080 | |
TOTAL UNITED ARAB EMIRATES | 7,770,249 | ||
United Kingdom - 0.9% | |||
Antofagasta PLC | 18,333 | 204,304 | |
ASA International (a) | 17,400 | 108,769 | |
Bank of Georgia Group PLC | 4,433 | 98,884 | |
Contemporary Amperex Technology Co. Ltd. ELS (UBS Bank Warrant Program) Class A warrants 6/24/19 (a)(d) | 87,400 | 928,860 | |
Fresnillo PLC | 140,700 | 1,506,352 | |
NMC Health PLC | 45,247 | 2,001,609 | |
Tonghua Dongbao Pharmaceutical Co. Ltd. ELS (UBS Bank Warrant Program) Class A warrants 3/26/19 (a) | 297,600 | 785,934 | |
Tullow Oil PLC (a) | 87,533 | 300,400 | |
Vivo Energy PLC | 20,000 | 33,649 | |
TOTAL UNITED KINGDOM | 5,968,761 | ||
United States of America - 0.6% | |||
Arco Platform Ltd. Class A | 5,200 | 118,560 | |
First Cash Financial Services, Inc. | 792 | 64,944 | |
MercadoLibre, Inc. | 10,200 | 3,472,794 | |
Uxin Ltd. ADR (a) | 98,600 | 669,494 | |
TOTAL UNITED STATES OF AMERICA | 4,325,792 | ||
Vietnam - 0.7% | |||
Bank For Foreign Trade JSC | 130,380 | 352,114 | |
Binh Minh Plastic JSC | 51,620 | 140,515 | |
Ho Chi Minh City Securities Co. | 80,750 | 238,849 | |
Petrolimex | 91,000 | 276,969 | |
PetroVietnam Drilling & Well Services JSC (a) | 430,370 | 381,895 | |
PetroVietnam Technical Services Corp. | 329,900 | 328,097 | |
Saigon Securities, Inc. | 124,590 | 178,920 | |
Vietjet Aviation JSC | 51,216 | 332,621 | |
Vietnam Dairy Products Corp. | 202,656 | 1,192,784 | |
Vietnam Technological & Commercial Joint Stock Bank (a) | 801,000 | 1,000,928 | |
TOTAL VIETNAM | 4,423,692 | ||
TOTAL COMMON STOCKS | |||
(Cost $537,946,290) | 603,913,132 | ||
Nonconvertible Preferred Stocks - 5.1% | |||
Brazil - 3.6% | |||
Ambev SA sponsored ADR | 534,000 | 2,440,380 | |
Banco do Estado Rio Grande do Sul SA | 270,160 | 1,002,092 | |
Companhia Paranaense de Energia-Copel: | |||
(PN-B) | 4,460 | 23,644 | |
(PN-B) sponsored ADR (e) | 289,107 | 1,523,594 | |
Fibria Celulose SA sponsored ADR | 171,100 | 3,170,483 | |
Itau Unibanco Holding SA sponsored ADR | 696,186 | 7,644,122 | |
Metalurgica Gerdau SA (PN) | 997,600 | 1,971,214 | |
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 472,700 | 4,944,442 | |
Telefonica Brasil SA | 115,180 | 1,117,989 | |
TOTAL BRAZIL | 23,837,960 | ||
Korea (South) - 1.5% | |||
Hyundai Motor Co. Series 2 | 59,585 | 4,548,022 | |
Samsung Electronics Co. Ltd. | 125,513 | 4,281,114 | |
Samsung Fire & Marine Insurance Co. Ltd. | 9,276 | 1,533,907 | |
TOTAL KOREA (SOUTH) | 10,363,043 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
(Cost $26,196,353) | 34,201,003 | ||
Principal Amount | Value | ||
Government Obligations - 0.0% | |||
United States of America - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 1.96% 10/25/18(f) | |||
(Cost $269,649) | 270,000 | 269,626 | |
Shares | Value | ||
Money Market Funds - 3.9% | |||
Fidelity Cash Central Fund, 2.11% (g) | 23,071,079 | 23,075,693 | |
Fidelity Securities Lending Cash Central Fund 2.11%(g)(h) | 2,618,303 | 2,618,565 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $25,693,789) | 25,694,258 | ||
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $590,106,081) | 664,078,019 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (264,659) | ||
NET ASSETS - 100% | $663,813,360 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
ICE E-mini MSCI Emerging Markets Index Contracts (United States) | 87 | Dec. 2018 | $4,566,195 | $31,944 | $31,944 |
The notional amount of futures purchased as a percentage of Net Assets is 0.7%
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,663,286 or 0.3% of net assets.
(c) Level 3 security
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $13,359,326 or 2.0% of net assets.
(e) Security or a portion of the security is on loan at period end.
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $269,626.
(g) 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.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Ant International Co. Ltd. Class C | 5/16/18 | $1,663,286 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $390,451 |
Fidelity Securities Lending Cash Central Fund | 67,925 |
Total | $458,376 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $85,910,496 | $82,404,445 | $3,506,051 | $-- |
Consumer Staples | 40,885,943 | 40,885,943 | -- | -- |
Energy | 51,843,830 | 40,545,801 | 11,298,029 | -- |
Financials | 159,613,583 | 114,814,824 | 44,798,759 | -- |
Health Care | 17,644,060 | 17,644,060 | -- | -- |
Industrials | 29,166,780 | 29,166,780 | -- | -- |
Information Technology | 142,425,065 | 85,873,255 | 56,551,810 | -- |
Materials | 53,711,233 | 50,069,919 | 3,641,314 | -- |
Real Estate | 20,458,806 | 18,795,520 | -- | 1,663,286 |
Telecommunication Services | 21,694,260 | 17,061,292 | 4,632,968 | -- |
Utilities | 14,760,079 | 14,227,106 | 532,973 | -- |
Government Obligations | 269,626 | -- | 269,626 | -- |
Money Market Funds | 25,694,258 | 25,694,258 | -- | -- |
Total Investments in Securities: | $664,078,019 | $537,183,203 | $125,231,530 | $1,663,286 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $31,944 | $31,944 | $-- | $-- |
Total Assets | $31,944 | $31,944 | $-- | $-- |
Total Derivative Instruments: | $31,944 | $31,944 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended September 30, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $15,816,887 |
Level 2 to Level 1 | $0 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of September 30, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $31,944 | $0 |
Total Equity Risk | 31,944 | 0 |
Total Value of Derivatives | $31,944 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $2,402,450) — See accompanying schedule: Unaffiliated issuers (cost $564,412,292) | $638,383,761 | |
Fidelity Central Funds (cost $25,693,789) | 25,694,258 | |
Total Investment in Securities (cost $590,106,081) | $664,078,019 | |
Cash | 93,697 | |
Foreign currency held at value (cost $286,192) | 286,300 | |
Receivable for investments sold | 3,748,992 | |
Receivable for fund shares sold | 1,028,131 | |
Dividends receivable | 1,068,119 | |
Distributions receivable from Fidelity Central Funds | 44,335 | |
Other receivables | 302,807 | |
Total assets | 670,650,400 | |
Liabilities | ||
Payable for investments purchased | $3,379,158 | |
Payable for fund shares redeemed | 580,459 | |
Payable for daily variation margin on futures contracts | 30,015 | |
Other payables and accrued expenses | 229,318 | |
Collateral on securities loaned | 2,618,090 | |
Total liabilities | 6,837,040 | |
Net Assets | $663,813,360 | |
Net Assets consist of: | ||
Paid in capital | $552,063,596 | |
Undistributed net investment income | 1,675,537 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 36,199,569 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 73,874,658 | |
Net Assets, for 3,008,991 shares outstanding | $663,813,360 | |
Net Asset Value, offering price and redemption price per share ($663,813,360 ÷ 3,008,991 shares) | $220.61 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $17,700,157 | |
Interest | 9,094 | |
Income from Fidelity Central Funds | 458,376 | |
Income before foreign taxes withheld | 18,167,627 | |
Less foreign taxes withheld | (1,896,292) | |
Total income | 16,271,335 | |
Expenses | ||
Custodian fees and expenses | $549,788 | |
Independent directors' fees and expenses | 3,565 | |
Interest | 1,828 | |
Miscellaneous | 16 | |
Total expenses | 555,197 | |
Net investment income (loss) | 15,716,138 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 52,294,362 | |
Fidelity Central Funds | 694 | |
Foreign currency transactions | (423,292) | |
Futures contracts | 782,358 | |
Total net realized gain (loss) | 52,654,122 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $582,165) | (84,701,278) | |
Fidelity Central Funds | (734) | |
Assets and liabilities in foreign currencies | (53,160) | |
Futures contracts | 175,475 | |
Total change in net unrealized appreciation (depreciation) | (84,579,697) | |
Net gain (loss) | (31,925,575) | |
Net increase (decrease) in net assets resulting from operations | $(16,209,437) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $15,716,138 | $12,093,213 |
Net realized gain (loss) | 52,654,122 | 32,760,743 |
Change in net unrealized appreciation (depreciation) | (84,579,697) | 92,226,717 |
Net increase (decrease) in net assets resulting from operations | (16,209,437) | 137,080,673 |
Distributions to shareholders from net investment income | (15,018,134) | (11,115,681) |
Distributions to shareholders from net realized gain | (37,772,093) | (2,186,326) |
Total distributions | (52,790,227) | (13,302,007) |
Affiliated share transactions | ||
Proceeds from sales of shares | 131,696,787 | 288,606,531 |
Reinvestment of distributions | 52,167,267 | 13,077,757 |
Cost of shares redeemed | (214,237,322) | (77,097,405) |
Net increase (decrease) in net assets resulting from share transactions | (30,373,268) | 224,586,883 |
Total increase (decrease) in net assets | (99,372,932) | 348,365,549 |
Net Assets | ||
Beginning of period | 763,186,292 | 414,820,743 |
End of period | $663,813,360 | $763,186,292 |
Other Information | ||
Undistributed net investment income end of period | $1,675,537 | $977,533 |
Shares | ||
Sold | 525,396 | 1,346,133 |
Issued in reinvestment of distributions | 214,429 | 60,674 |
Redeemed | (829,971) | (355,666) |
Net increase (decrease) | (90,146) | 1,051,141 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Emerging Markets Equity Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $246.26 | $202.55 | $172.95 | $212.25 | $198.65 |
Income from Investment Operations | |||||
Net investment income (loss)A | 5.11 | 4.65 | 4.05 | 3.47 | 4.39 |
Net realized and unrealized gain (loss) | (14.13) | 44.19 | 29.35 | (39.58) | 12.94 |
Total from investment operations | (9.02) | 48.84 | 33.40 | (36.11) | 17.33 |
Distributions from net investment income | (4.95) | (4.06) | (3.80) | (3.19) | (3.73) |
Distributions from net realized gain | (11.68) | (1.07) | – | – | – |
Total distributions | (16.63) | (5.13) | (3.80) | (3.19) | (3.73) |
Net asset value, end of period | $220.61 | $246.26 | $202.55 | $172.95 | $212.25 |
Total ReturnB | (4.20)% | 24.55% | 19.51% | (17.12)% | 8.72% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .07% | .07% | .09% | .15% | .15% |
Expenses net of fee waivers, if any | .07% | .07% | .09% | .15% | .15% |
Expenses net of all reductions | .07% | .07% | .09% | .15% | .15% |
Net investment income (loss) | 2.07% | 2.12% | 2.23% | 1.71% | 2.07% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $663,813 | $763,186 | $414,821 | $237,056 | $457,436 |
Portfolio turnover rateE | 65% | 59% | 52% | 141% | 84% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended September 30, 2018
1. Organization.
Fidelity Emerging Markets Equity 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 (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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of September 30, 2018, including information on transfers between Levels 1 and 2, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of September 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), losses deferred due to wash sales and excise tax regulations.
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 | $120,775,646 |
Gross unrealized depreciation | (53,640,312) |
Net unrealized appreciation (depreciation) | $67,135,334 |
Tax Cost | $596,942,685 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $1,675,398 |
Undistributed long-term capital gain | $43,677,567 |
Net unrealized appreciation (depreciation) on securities and other investments | $67,006,250 |
The Fund intends to elect to defer to its next fiscal year $609,449 of capital losses recognized during the period November 1, 2017 to September 30, 2018.
The tax character of distributions paid was as follows:
September 30, 2018 | September 30, 2017 | |
Ordinary Income | $33,187,685 | $ 11,589,726 |
Long-term Capital Gains | 19,602,542 | 1,712,281 |
Total | $52,790,227 | $ 13,302,007 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $470,223,940 and $528,606,128, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR 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. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,008 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $10,140,000 | 1.62% | $1,828 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $4,860.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $67,925. During the period, there were no securities loaned to FCM.
8. Other.
The 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, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Central Investment Portfolios LLC and Shareholders of Fidelity Emerging Markets Equity Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Emerging Markets Equity Central Fund (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of September 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, 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 September 30, 2018, 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 September 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 13, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Directors and Officers (Trustees and Officers)
The Trustees, Members of the Advisory Board (if any), and officers of the Fidelity Central Investment Portfolios LLC and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 283 funds. Michael E. Wiley oversees 193 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the Fidelity Central Investment Portfolios LLC or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2004
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2004
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 to September 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period-B April 1, 2018 to September 30, 2018 | |
Actual | .0749% | $1,000.00 | $875.80 | $.35 |
Hypothetical-C | $1,000.00 | $1,024.69 | $.38 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended September 30, 2018, $52,764,368, or, if subsequently determined to be different, the net capital gain of such year.
A percentage of the dividends distributed during the fiscal year for the fund may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code:
December 2017 | 12% |
February 2018 | 77% |
March 2018 | 77% |
April 2018 | 77% |
May 2018 | 77% |
June 2018 | 77% |
July 2018 | 77% |
August 2018 | 77% |
September 2018 | 77% |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are $4.2031 and $0.4434 for the dividend paid December 21, 2017.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Emerging Markets Equity Central Fund
At its July 2018 meeting, the Board of Directors, including the Independent Directors (together, the Board), voted to continue the management contract with FMR Co., Inc. (FMRC) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
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Fidelity® Floating Rate Central Fund Annual Report September 30, 2018 |
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Contents
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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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended September 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Floating Rate Central Fund | 5.65% | 4.60% | 7.24% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Floating Rate Central Fund on September 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P®/LSTA Leveraged Performing Loan Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-18-006063/img422702661_740.jpg)
Period Ending Values | ||
$20,113 | Fidelity® Floating Rate Central Fund | |
$18,549 | S&P®/LSTA Leveraged Performing Loan Index |
Management's Discussion of Fund Performance
Market Recap: Floating-rate bank loans gained 5.47% for the 12 months ending September 30, 2018, as measured by the S&P/LSTA® Leveraged Performing Loan Index, topping both high-yield bonds and the broad investment-grade fixed-income market. Loans generated positive results in the early months of the period, as investors refocused their attention on interest rate risk amid rising U.S. Treasury yields. The asset class was relatively immune to the volatility that hampered stocks and credit in February and March, posting modestly positive returns in both months. Loan prices rose in the first half of April, then gave back some of that advance, as rising interest rates began to weigh on investor risk appetite. Following modest returns in May and June amid concerns about global trade, loans rode strong corporate earnings and robust second-quarter U.S. economic growth to a 1.90% gain for the final three months of the period. Every industry in the index generated a positive result, with retailers (+10%), oil & gas (+8%), and radio & television (+8%) leading the way. On the downside, among larger index members, cable & satellite television, containers & glass products, and aerospace & defense each returned about 4%, but lagged the overall market. From a credit-quality perspective, lower-quality loans did best, reflecting investor confidence amid the solid fundamental backdropComments from Co-Portfolio Managers Eric Mollenhauer and Kevin Nielsen: For the fiscal year, the fund gained 5.65%, outpacing the benchmark S&P/LSTA® Leveraged Performing Loan Index. Security selection in business equipment & services, along with favorable positioning in oil & gas, provided the biggest boost versus the benchmark the past 12 months. Among the fund's the top individual relative contributors were overweightings in outdoor retailer Bass Pro Shops and oil & gas exploration & production company California Resources. Avoiding Catalina Marketing Group, a benchmark constituent that produces grocery store coupons, was another positive, as was our non-benchmark equity position in coal producer Warrior Metropolitan Coal, Inc. On the downside, a cash stake of about 6%, on average, the past 12 months was the biggest detractor versus the benchmark, although it was within our target range of 5% to 7%. As for individual holdings, an overweighting in generic-drug maker Lannett Company disappointed when the company announced that it will lose a key supply contract in 2019. A mid-March bankruptcy filing by Clear Channel Communications, now called iHeartMedia, hampered our investment there. Not owning loans issued by retailer and benchmark member Neiman Marcus also dampened relative performance. As of September 30, we think the fundamental backdrop for loans remains supportive, despite global trade and political tension.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Holdings as of September 30, 2018
(by issuer, excluding cash equivalents) | % of fund's net assets |
Intelsat Jackson Holdings SA | 2.0 |
Caesars Resort Collection LLC | 1.8 |
Bass Pro Shops LLC. | 1.6 |
Frontier Communications Corp. | 1.6 |
Asurion LLC | 1.5 |
8.5 |
Top Five Market Sectors as of September 30, 2018
% of fund's net assets | |
Technology | 14.3 |
Gaming | 8.1 |
Telecommunications | 7.8 |
Services | 7.1 |
Energy | 5.4 |
Quality Diversification (% of fund's net assets)
As of September 30, 2018 | ||
BBB | 2.5% | |
BB | 32.8% | |
B | 51.9% | |
CCC,CC,C | 5.6% | |
Not Rated | 2.1% | |
Equities | 0.8% | |
Short-Term Investments and Net Other Assets | 4.3% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of September 30, 2018 * | ||
Bank Loan Obligations | 92.0% | |
Nonconvertible Bonds | 2.9% | |
Common Stocks | 0.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.3% |
* Foreign investments - 11.2%
Schedule of Investments September 30, 2018
Showing Percentage of Net Assets
Bank Loan Obligations - 92.0%(a) | |||
Principal Amount | Value | ||
Aerospace - 1.6% | |||
DAE Aviation Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.99% 7/7/22(b)(c) | $3,360,206 | $3,375,428 | |
TransDigm, Inc.: | |||
Tranche E, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 5/30/25 (b)(c) | 2,985,000 | 2,992,582 | |
Tranche F, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 6/9/23 (b)(c) | 14,319,431 | 14,367,830 | |
Tranche G, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 8/22/24 (b)(c) | 6,191,944 | 6,208,848 | |
Wesco Aircraft Hardware Corp.: | |||
Tranche A, term loan 3 month U.S. LIBOR + 3.000% 5.25% 11/30/20 (b)(c) | 480,000 | 477,600 | |
Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 2/28/21 (b)(c) | 3,145,000 | 3,109,619 | |
WP CPP Holdings LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 6.2142% 4/30/25 (b)(c) | 4,250,000 | 4,276,563 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.750% 10.1477% 4/30/26 (b)(c) | 1,000,000 | 998,130 | |
TOTAL AEROSPACE | 35,806,600 | ||
Air Transportation - 0.2% | |||
Transplace Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9084% 10/5/24 (b)(c) | 3,473,794 | 3,494,428 | |
XPO Logistics, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2301% 2/23/25 (b)(c) | 2,245,000 | 2,255,103 | |
TOTAL AIR TRANSPORTATION | 5,749,531 | ||
Automotive & Auto Parts - 0.9% | |||
Caliber Holdings Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 2/1/24 (b)(c) | 1,615,750 | 1,625,170 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.4922% 2/1/25 (b)(c) | 450,000 | 454,500 | |
Chrysler Group LLC term loan 3 month U.S. LIBOR + 2.000% 4.25% 12/31/18 (b)(c) | 836,478 | 837,172 | |
Hertz Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.83% 6/30/23 (b)(c) | 6,670,305 | 6,643,891 | |
North American Lifting Holdings, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 4.500% 6.8861% 11/27/20 (b)(c) | 6,443,390 | 6,266,197 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.000% 11.3861% 11/27/21 (b)(c) | 2,641,000 | 2,302,080 | |
The Gates Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 3/31/24 (b)(c) | 638,640 | 642,236 | |
UOS LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.7422% 4/18/23 (b)(c) | 2,370,792 | 2,418,208 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 21,189,454 | ||
Banks & Thrifts - 0.1% | |||
Lions Gate Capital Holdings Ll Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 3/24/25 (b)(c) | 2,985,000 | 2,987,478 | |
Broadcasting - 1.2% | |||
AppLovin Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 6.0638% 8/15/25 (b)(c) | 5,000,000 | 5,056,250 | |
CBS Radio, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9622% 11/18/24 (b)(c) | 6,451,250 | 6,393,640 | |
Clear Channel Communications, Inc. Tranche D, term loan 3 month U.S. LIBOR + 6.750% 0% 1/30/19 (c)(d) | 10,685,000 | 8,002,103 | |
ION Media Networks, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.05% 12/18/20 (b)(c) | 3,242,277 | 3,254,435 | |
Raycom Media, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 8/23/24 (b)(c) | 4,179,765 | 4,179,765 | |
TOTAL BROADCASTING | 26,886,193 | ||
Building Materials - 0.9% | |||
GYP Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 6/1/25 (b)(c) | 3,975,402 | 3,963,794 | |
Hamilton Holdco LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.34% 7/2/25 (b)(c) | 3,491,250 | 3,495,614 | |
HD Supply, Inc. Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 10/17/23 (b)(c) | 1,473,862 | 1,486,022 | |
Jeld-Wen, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.3861% 12/14/24 (b)(c) | 3,543,225 | 3,550,595 | |
Traverse Midstream Partners Ll Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.6% 9/27/24 (b)(c) | 3,275,000 | 3,296,844 | |
Ventia Deco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8861% 5/21/22 (b)(c) | 4,949,588 | 4,983,641 | |
TOTAL BUILDING MATERIALS | 20,776,510 | ||
Cable/Satellite TV - 2.9% | |||
Altice U.S. Finance SA Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 7/28/25 (b)(c) | 1,970,063 | 1,967,600 | |
Cable One, Inc. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 4.14% 5/1/24 (b)(c) | 1,254,125 | 1,257,260 | |
Charter Communication Operating LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.25% 4/30/25 (b)(c) | 32,752,500 | 32,793,441 | |
CSC Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.6584% 1/25/26 (b)(c) | 5,850,338 | 5,867,420 | |
MCC Iowa LLC Tranche M, term loan 3 month U.S. LIBOR + 2.000% 4.17% 1/15/25 (b)(c) | 1,074,150 | 1,073,140 | |
Numericable LLC: | |||
Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.688% 5.8459% 1/31/26 (b)(c) | 648,367 | 639,802 | |
Tranche B 13LN, term loan 3 month U.S. LIBOR + 4.000% 6.1584% 8/14/26 (b)(c) | 6,000,000 | 5,947,500 | |
Virgin Media Bristol LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.6584% 1/15/26 (b)(c) | 5,500,000 | 5,508,140 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4084% 8/19/23 (b)(c) | 11,892,406 | 11,634,698 | |
TOTAL CABLE/SATELLITE TV | 66,689,001 | ||
Capital Goods - 0.7% | |||
AECOM Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 3/13/25 (b)(c) | 2,826,167 | 2,830,575 | |
Altra Industrial Motion Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 9/26/25 (c)(e) | 4,095,000 | 4,101,388 | |
Apergy Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.75% 5/9/25 (b)(c) | 1,751,325 | 1,760,082 | |
Doosan Bobcat Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.6934% 5/18/24 (b)(c) | 1,380,700 | 1,382,674 | |
Gardner Denver, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 7/30/24 (b)(c) | 909,748 | 914,206 | |
Onex Wizard U.S. Acquisition, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 7% 3/13/22 (b)(c) | 4,403,270 | 4,406,308 | |
TOTAL CAPITAL GOODS | 15,395,233 | ||
Chemicals - 2.7% | |||
Ashland LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9402% 5/17/24 (b)(c) | 1,975,000 | 1,977,963 | |
ASP Chromaflo Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 11/18/23 (b)(c) | 2,082,900 | 2,095,918 | |
Invictus U.S. Newco LLC: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.195% 3/28/25 (b)(c) | 1,994,975 | 2,006,207 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.8259% 3/28/26 (b)(c) | 1,500,000 | 1,488,750 | |
Kraton Polymers LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 3/8/25 (b)(c) | 3,248,718 | 3,257,847 | |
MacDermid, Inc.: | |||
Tranche B 6LN, term loan 3 month U.S. LIBOR + 3.000% 4% 6/7/23 (b)(c) | 3,078,767 | 3,097,055 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 6/7/20 (b)(c) | 1,294,874 | 1,299,264 | |
OCI Partners LP Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.3861% 3/13/25 (b)(c) | 6,716,250 | 6,805,912 | |
Oxea Corp. Tranche B2, term loan 3 month U.S. LIBOR + 3.500% 5.625% 10/11/24 (b)(c) | 5,936,288 | 5,969,709 | |
PQ Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 2/8/25 (b)(c) | 2,012,842 | 2,014,110 | |
Starfruit U.S. Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 9/20/25 (c)(e) | 13,000,000 | 13,049,660 | |
The Chemours Co. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 4% 4/3/25 (b)(c) | 2,524,663 | 2,526,253 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. term loan 3 month U.S. LIBOR + 2.000% 4.2182% 9/6/24 (b)(c) | 1,980,000 | 1,986,593 | |
Tronox Blocked Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2182% 9/22/24 (b)(c) | 2,853,553 | 2,863,654 | |
Tronox Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2182% 9/22/24 (b)(c) | 6,585,122 | 6,608,433 | |
Univar, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 7/1/24 (b)(c) | 2,681,778 | 2,686,981 | |
W. R. Grace & Co.-Conn.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 4.1361% 4/3/25 (b)(c) | 1,131,053 | 1,134,593 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 1.750% 4.1361% 4/3/25 (b)(c) | 1,938,947 | 1,945,016 | |
TOTAL CHEMICALS | 62,813,918 | ||
Consumer Products - 0.9% | |||
CSM Bakery Supplies Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 6.34% 7/3/20 (b)(c) | 3,666,183 | 3,540,616 | |
Owens & Minor Distribution, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 6.6038% 4/30/25 (b)(c) | 4,500,000 | 4,241,250 | |
Prestige Brands, Inc. term loan 3 month U.S. LIBOR + 2.000% 4.2422% 1/26/24 (b)(c) | 1,639,732 | 1,639,272 | |
Rodan & Fields LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.163% 6/15/25 (b)(c) | 1,840,000 | 1,856,873 | |
Weight Watchers International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 7.054% 11/29/24 (b)(c) | 10,587,500 | 10,706,609 | |
TOTAL CONSUMER PRODUCTS | 21,984,620 | ||
Containers - 1.9% | |||
Ball Metalpack Finco LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 6.7422% 7/31/25 (b)(c) | 3,316,688 | 3,345,709 | |
Berlin Packaging, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.1601% 11/7/25 (b)(c) | 9,301,688 | 9,297,316 | |
Berry Global, Inc.: | |||
Tranche Q, term loan 3 month U.S. LIBOR + 2.000% 4.1859% 10/1/22 (b)(c) | 3,599,973 | 3,606,489 | |
Tranche T, term loan 3 month U.S. LIBOR + 1.750% 3.9359% 1/6/21 (b)(c) | 7,384,667 | 7,380,088 | |
BWAY Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.5814% 4/3/24 (b)(c) | 1,481,250 | 1,479,398 | |
Charter Nex U.S., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 5/16/24 (b)(c) | 1,338,063 | 1,337,782 | |
Consolidated Container Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 5/22/24 (b)(c) | 2,484,947 | 2,492,402 | |
Crown Americas LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.2182% 4/3/25 (b)(c) | 3,152,100 | 3,166,158 | |
Hostess Brands LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 8/3/22 (b)(c) | 367,959 | 367,959 | |
Plastipak Packaging, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.75% 10/14/24 (b)(c) | 994,950 | 994,174 | |
Reynolds Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 2/5/23 (b)(c) | 9,190,399 | 9,228,999 | |
TOTAL CONTAINERS | 42,696,474 | ||
Diversified Financial Services - 3.7% | |||
AlixPartners LLP Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 4/4/24 (b)(c) | 6,427,374 | 6,454,176 | |
Avolon TLB Borrower 1 (U.S.) LLC Tranche B3 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.1653% 1/15/25 (b)(c) | 2,867,813 | 2,876,215 | |
Bcp Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8424% 10/31/24 (b)(c) | 4,015,000 | 4,037,323 | |
Cypress Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.25% 4/27/24 (b)(c) | 2,962,500 | 2,973,609 | |
Deerfield Holdings Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 2/13/25 (b)(c) | 3,149,175 | 3,149,175 | |
Delos Finance SARL Tranche B, term loan 3 month U.S. LIBOR + 1.750% 4.1361% 10/6/23 (b)(c) | 3,682,000 | 3,692,751 | |
Financial & Risk U.S. Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 10/1/25 (c)(e) | 13,000,000 | 12,965,680 | |
Finco I LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 12/27/22(b)(c) | 2,970,698 | 2,982,759 | |
Fly Funding II SARL Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.34% 2/9/23 (b)(c) | 6,239,724 | 6,242,344 | |
Flying Fortress Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 4.1361% 10/30/22 (b)(c) | 3,000,000 | 3,012,870 | |
Focus Financial Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 7/3/24 (b)(c) | 1,642,604 | 1,650,817 | |
Franklin Square Holdings LP Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.625% 8/3/25 (b)(c) | 2,500,000 | 2,510,950 | |
Greensky Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.5% 3/29/25 (b)(c) | 2,119,350 | 2,124,648 | |
HarbourVest Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 4.4084% 3/1/25 (b)(c) | 5,011,499 | 5,017,763 | |
Kingpin Intermediate Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.75% 7/3/24 (b)(c) | 2,979,950 | 2,996,727 | |
NAB Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.3861% 6/30/24 (b)(c) | 1,900,848 | 1,877,087 | |
Ocwen Loan Servicing LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.1653% 12/5/20 (b)(c) | 1,080,412 | 1,084,463 | |
Recess Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.750% 6.0642% 9/29/24 (b)(c) | 1,770,450 | 1,783,728 | |
3 month U.S. LIBOR + 3.750% 7.3845% 9/29/24 (b)(c) | 241,667 | 243,479 | |
SAI Global GP Tranche B, term loan 3 month U.S. LIBOR + 4.500% 6.7422% 12/8/23 (b)(c) | 2,955,000 | 2,777,700 | |
TransUnion LLC: | |||
Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 6/19/25 (b)(c) | 3,491,250 | 3,500,711 | |
Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 4/9/23 (b)(c) | 6,797,660 | 6,808,740 | |
UFC Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.5% 8/18/23 (b)(c) | 3,242,250 | 3,259,466 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 84,023,181 | ||
Diversified Media - 0.1% | |||
Lamar Media Corp. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9375% 3/16/25 (b)(c) | 3,228,775 | 3,240,883 | |
Energy - 4.4% | |||
Arctic LNG Carriers Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 6.7422% 5/18/23 (b)(c) | 5,842,704 | 5,857,311 | |
Bcp Raptor LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.4922% 6/22/24 (b)(c) | 5,394,266 | 5,306,609 | |
Brazos Delaware II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.1653% 5/21/25 (b)(c) | 2,778,038 | 2,760,675 | |
California Resources Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 12.6172% 12/31/21 (b)(c) | 12,435,000 | 13,776,985 | |
Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.9622% 12/31/22 (b)(c) | 11,030,000 | 11,190,817 | |
Citgo Petroleum Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8374% 7/29/21 (b)(c) | 8,583,266 | 8,583,266 | |
Consolidated Energy Finance SA Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.6326% 5/7/25 (b)(c) | 7,980,000 | 7,950,075 | |
Delek U.S. Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 3/13/25 (b)(c) | 1,900,450 | 1,905,201 | |
Empire Generating Co. LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.64% 3/14/21 (b)(c) | 1,046,585 | 842,501 | |
Tranche C, term loan 3 month U.S. LIBOR + 4.250% 6.64% 3/14/21 (b)(c) | 103,727 | 83,500 | |
Energy Transfer Equity LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 2/2/24 (b)(c) | 4,000,000 | 4,002,520 | |
Foresight Energy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.750% 7.9922% 3/28/22 (b)(c) | 1,845,049 | 1,841,598 | |
FTS International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 7.1719% 4/16/21 (b)(c) | 4,178,899 | 4,199,793 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 8.1653% 3/1/24 (b)(c) | 6,865,000 | 6,464,565 | |
GIM Channelview Cogeneration LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.5% 5/3/25 (b)(c) | 485,722 | 489,258 | |
GIP III Stetson I LP Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.5826% 7/23/25 (b)(c) | 10,560,000 | 10,609,526 | |
Gulf Finance LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.250% 7.64% 8/25/23 (b)(c) | 4,757,425 | 3,977,540 | |
Medallion Midland Acquisition Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 10/30/24 (b)(c) | 4,166,306 | 4,133,767 | |
Terra-Gen Finance Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.49% 12/9/21 (b)(c) | 4,423,072 | 3,626,919 | |
TerraForm AP Acquisition Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.6361% 6/26/22 (b)(c) | 2,747,370 | 2,754,238 | |
TerraForm Power Operating LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 11/8/22 (b)(c) | 1,052,050 | 1,054,680 | |
TOTAL ENERGY | 101,411,344 | ||
Entertainment/Film - 0.6% | |||
AMC Entertainment Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.3844% 12/15/23 (b)(c) | 4,407,825 | 4,406,899 | |
AMC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.3844% 12/15/22 (b)(c) | 1,458,750 | 1,457,539 | |
CDS U.S. Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 6.1361% 7/8/22 (b)(c) | 4,620,810 | 4,533,015 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 10.6361% 7/8/23 (b)(c) | 760,000 | 728,331 | |
SMG U.S. Midco 2, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 1/23/25 (b)(c) | 2,835,750 | 2,849,929 | |
TOTAL ENTERTAINMENT/FILM | 13,975,713 | ||
Environmental - 0.4% | |||
Hd Supply Waterworks Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.3167% 8/1/24 (b)(c) | 794,000 | 796,318 | |
The Brickman Group, Ltd. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.6875% 8/15/25 (b)(c) | 2,500,000 | 2,510,150 | |
Wrangler Buyer Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 9/28/24 (b)(c) | 2,135,057 | 2,146,180 | |
WTG Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 12/20/24 (b)(c) | 3,253,792 | 3,268,695 | |
TOTAL ENVIRONMENTAL | 8,721,343 | ||
Food & Drug Retail - 4.3% | |||
Agro Merchants Intermediate Ho Tranche B, term loan 3 month U.S. LIBOR + 3.750% 6.1361% 12/6/24 (b)(c) | 2,898,708 | 2,913,202 | |
Albertson's LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 4.9922% 8/25/21 (b)(c) | 31,208,436 | 31,234,339 | |
3 month U.S. LIBOR + 3.000% 5.381% 12/21/22 (b)(c) | 2,678,094 | 2,678,603 | |
BI-LO LLC Tranche B, term loan 3 month U.S. LIBOR + 8.000% 10.327% 5/31/24 (b)(c) | 14,000,000 | 14,000,000 | |
GOBP Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 10/21/21 (b)(c) | 6,112,247 | 6,112,247 | |
JBS USA Lux SA Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.8444% 10/30/22 (b)(c) | 14,092,060 | 14,119,399 | |
Lannett Co., Inc.: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.9922% 11/25/20 (b)(c) | 294,234 | 277,462 | |
Tranche B, term loan 3 month U.S. LIBOR + 5.375% 7.6172% 11/25/22 (b)(c) | 18,482,610 | 16,207,031 | |
RPI Finance Trust Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.000% 4.3861% 3/27/23 (b)(c) | 4,319,317 | 4,332,448 | |
Smart & Final, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 11/15/22 (b)(c) | 5,721,971 | 5,603,984 | |
SUPERVALU, Inc. term loan: | |||
3 month U.S. LIBOR + 3.500% 5.7422% 6/8/24 (b)(c) | 828,854 | 828,854 | |
3 month U.S. LIBOR + 3.500% 5.7422% 6/8/24 (b)(c) | 497,312 | 497,312 | |
TOTAL FOOD & DRUG RETAIL | 98,804,881 | ||
Food/Beverage/Tobacco - 1.8% | |||
8th Avenue Food & Provisions, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 10.006% 9/21/26 (b)(c) | 410,000 | 412,050 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 6.006% 9/21/25 (b)(c) | 1,200,000 | 1,209,756 | |
Arterra Wines Canada, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.0875% 12/16/23 (b)(c) | 2,456,250 | 2,462,391 | |
Chobani LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 10/7/23 (b)(c) | 10,760,159 | 10,491,155 | |
CTI Foods Holdings Co. LLC Tranche 1LN, term loan 3 month U.S. LIBOR + 3.500% 6.1% 6/28/20 (b)(c) | 1,778,379 | 1,456,047 | |
Eg Finco Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.3861% 2/6/25 (b)(c) | 1,437,775 | 1,439,127 | |
Post Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.22% 5/24/24 (b)(c) | 10,151,574 | 10,149,747 | |
Shearer's Foods, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.9922% 6/30/22 (b)(c) | 4,827,000 | 4,561,515 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.4922% 6/30/21 (b)(c) | 5,002,076 | 4,958,308 | |
U.S. Foods, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 6/27/23 (b)(c) | 3,910,000 | 3,923,216 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 41,063,312 | ||
Gaming - 7.8% | |||
Affinity Gaming LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 7/1/23 (b)(c) | 1,880,549 | 1,870,206 | |
AP Gaming I LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.4922% 2/15/24 (b)(c) | 2,264,597 | 2,275,919 | |
Aristocrat Technologies, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 4.0975% 10/19/24 (b)(c) | 7,043,118 | 7,033,891 | |
Boyd Gaming Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 4.4174% 9/15/23 (b)(c) | 2,734,707 | 2,747,451 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 12/22/24 (b)(c) | 41,188,750 | 41,406,221 | |
Churchill Downs, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.25% 12/27/24 (b)(c) | 1,334,913 | 1,336,581 | |
CityCenter Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4682% 4/18/24 (b)(c) | 5,448,919 | 5,453,169 | |
Eldorado Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4083% 4/17/24 (b)(c) | 3,375,018 | 3,389,092 | |
Gaming VC Holdings SA Tranche B2 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 3/15/24 (b)(c) | 4,562,075 | 4,577,267 | |
Gateway Casinos & Entertainment Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.6934% 3/13/25 (b)(c) | 4,433,888 | 4,453,308 | |
Golden Entertainment, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5.25% 10/20/24 (b)(c) | 11,910,000 | 11,939,775 | |
3 month U.S. LIBOR + 7.000% 9.25% 10/20/25 (b)(c) | 1,000,000 | 1,011,250 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9518% 10/4/23 (b)(c) | 18,468,907 | 18,531,886 | |
Greektown Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 4/25/24 (b)(c) | 1,367,688 | 1,367,688 | |
Las Vegas Sands LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 3/27/25 (b)(c) | 8,452,500 | 8,442,780 | |
MGM Mirage, Inc. Tranche A, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 4/25/21 (b)(c) | 2,123,844 | 2,123,844 | |
Mohegan Tribal Gaming Authority Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.2422% 10/14/23 (b)(c) | 2,393,046 | 2,254,585 | |
Penn National Gaming, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.250% 10/1/25 (c)(e) | 5,000,000 | 5,025,000 | |
3 month U.S. LIBOR + 2.500% 4.7422% 1/19/24 (b)(c) | 514,800 | 517,055 | |
Scientific Games Corp. Tranche B 5LN, term loan 3 month U.S. LIBOR + 2.750% 5.0342% 8/14/24 (b)(c) | 18,993,244 | 18,957,727 | |
Stars Group Holdings BV Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8377% 7/10/25 (b)(c) | 15,960,000 | 16,100,448 | |
Station Casinos LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.75% 6/8/23 (b)(c) | 9,222,817 | 9,256,388 | |
Tropicana Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 7.25% 11/27/20 (b)(c) | 302,208 | 302,963 | |
Wynn America LLC Tranche A 1LN, term loan 3 month U.S. LIBOR + 1.750% 4% 12/31/21 (b)(c) | 6,140,000 | 6,116,975 | |
Yonkers Racing Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.5% 5/31/24 (b)(c) | 1,905,008 | 1,909,770 | |
TOTAL GAMING | 178,401,239 | ||
Healthcare - 4.5% | |||
Akorn, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 7% 4/17/21 (b)(c) | 740,000 | 715,950 | |
American Renal Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 6/22/24 (b)(c) | 2,873,625 | 2,848,481 | |
Community Health Systems, Inc. Tranche H, term loan 3 month U.S. LIBOR + 3.250% 5.5626% 1/27/21 (b)(c) | 6,905,488 | 6,811,228 | |
CVS Holdings I LP: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 9% 2/6/26 (b)(c) | 1,000,000 | 992,500 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.25% 2/6/25 (b)(c) | 1,666,625 | 1,666,625 | |
Envision Healthcare Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.25% 12/1/23 (b)(c) | 2,905,080 | 2,903,017 | |
HCA Holdings, Inc.: | |||
Tranche B 10LN, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 3/13/25 (b)(c) | 10,945,000 | 11,020,958 | |
Tranche B 11LN, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 3/18/23 (b)(c) | 5,308,938 | 5,347,534 | |
HLF Financing SARL LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 8/18/25 (b)(c) | 4,775,000 | 4,814,776 | |
Innoviva, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 6.8119% 8/18/22 (b)(c) | 154,275 | 154,275 | |
LifeScan Global Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.000% 6/18/24 (c)(e) | 4,020,000 | 3,972,283 | |
MPH Acquisition Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.1361% 6/7/23 (b)(c) | 2,429,395 | 2,433,816 | |
Ortho-Clinical Diagnostics, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 6/30/25 (b)(c) | 15,254,742 | 15,304,320 | |
PAREXEL International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 9/27/24 (b)(c) | 5,895,450 | 5,852,708 | |
Press Ganey Holdings, Inc. Tranche 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 10/21/23 (b)(c) | 2,569,545 | 2,579,181 | |
Prospect Medical Holdings, Inc. Tranche 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.625% 2/22/24 (b)(c) | 3,228,775 | 3,269,135 | |
U.S. Anesthesia Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 6/23/24 (b)(c) | 2,627,537 | 2,640,675 | |
U.S. Renal Care, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.6361% 12/31/22 (b)(c) | 5,830,893 | 5,675,383 | |
Valeant Pharmaceuticals International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.1038% 6/1/25 (b)(c) | 13,555,766 | 13,619,885 | |
Vizient, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 2/11/23 (b)(c) | 1,335,662 | 1,339,562 | |
VVC Holding Corp. 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.3979% 7/9/25 (b)(c) | 6,000,000 | 5,902,500 | |
Wink Holdco, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 12/1/24 (b)(c) | 4,714,375 | 4,695,235 | |
TOTAL HEALTHCARE | 104,560,027 | ||
Homebuilders/Real Estate - 2.0% | |||
DTZ U.S. Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 8/21/25 (b)(c) | 10,000,000 | 10,037,500 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 1/30/24 (b)(c) | 4,738,622 | 4,703,840 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 1/30/24 (b)(c) | 254,508 | 252,640 | |
MGM Growth Properties Operating Partner LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 3/23/25 (b)(c) | 4,749,457 | 4,753,162 | |
Pisces Midco, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 6.0874% 4/12/25 (b)(c) | 3,561,075 | 3,592,234 | |
Realogy Group LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.3979% 2/8/25 (b)(c) | 6,934,691 | 6,946,827 | |
VICI Properties, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.2122% 12/22/24 (b)(c) | 15,000,682 | 15,019,433 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 45,305,636 | ||
Hotels - 1.0% | |||
ESH Hospitality, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2158% 8/30/23 (b)(c) | 2,803,024 | 2,803,528 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 11/30/23 (b)(c) | 7,593,063 | 7,594,278 | |
Hilton Worldwide Finance LLC Tranche B 2LN, term loan 3 month U.S. LIBOR + 1.750% 3.9658% 10/25/23 (b)(c) | 3,561,454 | 3,577,195 | |
Marriott Ownership Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 8/31/25 (b)(c) | 2,730,000 | 2,750,475 | |
Wyndham Hotels & Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 5/30/25 (b)(c) | 6,015,000 | 6,031,301 | |
TOTAL HOTELS | 22,756,777 | ||
Insurance - 3.3% | |||
Acrisure LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.5924% 11/22/23 (b)(c) | 4,491,936 | 4,505,052 | |
Alliant Holdings Intermediate LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.1479% 5/10/25 (b)(c) | 8,850,174 | 8,877,079 | |
AmWINS Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9645% 1/25/24 (b)(c) | 4,957,386 | 4,974,935 | |
Asurion LLC: | |||
Tranche B 6LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 11/3/23 (b)(c) | 6,199,696 | 6,244,271 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 11/3/24 (b)(c) | 6,982,500 | 7,027,258 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5.2422% 8/4/22 (b)(c) | 7,559,441 | 7,618,858 | |
3 month U.S. LIBOR + 6.500% 8.7422% 8/4/25 (b)(c) | 13,890,000 | 14,263,363 | |
HUB International Ltd. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.3353% 4/25/25 (b)(c) | 10,029,863 | 10,047,415 | |
USI, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.3861% 5/16/24 (b)(c) | 12,495,319 | 12,498,443 | |
TOTAL INSURANCE | 76,056,674 | ||
Leisure - 2.7% | |||
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 5/31/25 (b)(c) | 2,897,738 | 2,915,848 | |
Alterra Mountain Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 7/31/24 (b)(c) | 6,955,050 | 6,962,005 | |
Crown Finance U.S., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 2/28/25 (b)(c) | 10,945,000 | 10,927,379 | |
Delta 2 SARL Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 2/1/24 (b)(c) | 16,554,747 | 16,416,846 | |
Equinox Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 9.2422% 9/8/24 (b)(c) | 1,000,000 | 1,021,880 | |
Tranche B-1, term loan 3 month U.S. LIBOR + 3.000% 5.2182% 3/8/24 (b)(c) | 2,955,150 | 2,967,709 | |
Fitness International LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 4/18/25 (b)(c) | 1,865,325 | 1,868,123 | |
LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.0626% 6/10/22 (b)(c) | 6,365,205 | 6,387,738 | |
NVA Holdings, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 2/2/25 (b)(c) | 2,270,969 | 2,262,453 | |
Seminole Tribe of Florida Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9682% 7/6/24 (b)(c) | 2,475,000 | 2,486,138 | |
Varsity Brands Holding Co., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 12/15/24 (b)(c) | 7,940,020 | 7,956,535 | |
TOTAL LEISURE | 62,172,654 | ||
Metals/Mining - 0.4% | |||
American Rock Salt Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 3/21/25 (b)(c) | 3,392,950 | 3,414,156 | |
Murray Energy Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.4922% 10/17/22 (b)(c) | 7,292,637 | 6,676,701 | |
TOTAL METALS/MINING | 10,090,857 | ||
Paper - 0.6% | |||
Caraustar Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 7.8861% 3/14/22 (b)(c) | 4,314,300 | 4,348,210 | |
Flex Acquisition Co., Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.3374% 12/29/23 (b)(c) | 5,241,162 | 5,235,345 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.7506% 6/29/25 (b)(c) | 5,500,000 | 5,511,000 | |
TOTAL PAPER | 15,094,555 | ||
Publishing/Printing - 2.6% | |||
Cengage Learning, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.4153% 6/7/23 (b)(c) | 7,653,777 | 7,127,580 | |
Getty Images, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 10/18/19 (b)(c) | 5,306,838 | 5,264,649 | |
Harland Clarke Holdings Corp. Tranche B 7LN, term loan 3 month U.S. LIBOR + 4.750% 7.1361% 11/3/23 (b)(c) | 6,063,203 | 5,813,096 | |
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 5/29/21 (b)(c) | 8,774,309 | 8,244,166 | |
Learning Care Group (U.S.) No 2 Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4305% 3/13/25 (b)(c) | 3,368,075 | 3,373,329 | |
McGraw-Hill Global Education Holdings, LLC term loan 3 month U.S. LIBOR + 4.000% 6.2422% 5/4/22 (b)(c) | 10,929,569 | 10,597,092 | |
Merrill Communications LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 7.5924% 6/1/22 (b)(c) | 1,307,230 | 1,317,035 | |
Multi-Color Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 10/31/24 (b)(c) | 1,498,675 | 1,504,924 | |
Proquest LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 10/24/21 (b)(c) | 3,323,551 | 3,330,830 | |
Springer Science+Business Media Deutschland GmbH Tranche B 13LN, term loan 3 month U.S. LIBOR + 3.500% 5.8861% 8/24/22 (b)(c) | 12,839,978 | 12,885,816 | |
TOTAL PUBLISHING/PRINTING | 59,458,517 | ||
Restaurants - 1.4% | |||
Burger King Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 2/17/24 (b)(c) | 12,389,623 | 12,392,720 | |
CEC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 2/14/21 (b)(c) | 6,455,191 | 6,237,328 | |
K-Mac Holdings Corp.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.9153% 3/16/26 (b)(c) | 260,000 | 261,789 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4153% 3/16/25 (b)(c) | 1,890,500 | 1,895,699 | |
KFC Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9147% 4/3/25 (b)(c) | 2,205,281 | 2,206,670 | |
Red Lobster Hospitality LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 7.4622% 7/28/21 (b)(c) | 3,961,827 | 3,951,923 | |
Restaurant Technologies, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 3.250% 9/24/25 (c)(e) | 1,210,000 | 1,217,563 | |
2LN, term loan 3 month U.S. LIBOR + 6.500% 9/24/26 (c)(e) | 500,000 | 503,125 | |
Tacala Investment Corp. term loan 3 month U.S. LIBOR + 3.250% 5.4922% 2/1/25 (b)(c) | 3,268,575 | 3,281,649 | |
TOTAL RESTAURANTS | 31,948,466 | ||
Services - 6.9% | |||
Acosta, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 9/26/21 (b)(c) | 1,782,956 | 1,323,470 | |
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.6361% 6/13/25 (b)(c) | 6,475,000 | 6,406,236 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.8861% 6/13/24 (b)(c) | 12,718,277 | 12,722,092 | |
Ancestry.Com Operations, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.5% 10/19/23 (b)(c) | 4,877,626 | 4,892,893 | |
Aramark Services, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 4.0844% 3/11/25 (b)(c) | 7,461,300 | 7,479,953 | |
Asgn, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 4/2/25 (b)(c) | 1,747,293 | 1,752,203 | |
Avantor, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.2422% 11/21/24 (b)(c) | 5,813,214 | 5,881,345 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.5958% 6/21/24 (b)(c) | 8,411,099 | 8,461,230 | |
Bright Horizons Family Solutions Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 11/7/23 (b)(c) | 1,728,458 | 1,730,082 | |
Coinmach Service Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.5892% 11/14/22 (b)(c) | 7,236,680 | 7,250,719 | |
CRCI Longhorn Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.6205% 8/8/25 (b)(c) | 1,900,000 | 1,903,572 | |
Filtration Group Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 3/29/25 (b)(c) | 2,388,000 | 2,403,355 | |
Frontdoor, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.75% 8/16/25 (b)(c) | 2,240,000 | 2,252,611 | |
Ion Trading Finance Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 6.3861% 11/21/24 (b)(c) | 6,947,500 | 6,914,916 | |
KAR Auction Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.9375% 3/9/23 (b)(c) | 1,407,598 | 1,413,467 | |
KUEHG Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 0% 8/13/22 (b)(c) | 8,830,448 | 8,867,271 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 10.6361% 8/22/25 (b)(c) | 1,000,000 | 1,012,500 | |
Laureate Education, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 4/26/24 (b)(c) | 29,592,675 | 29,703,648 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 2/27/25 (b)(c) | 12,994,700 | 12,967,671 | |
Prime Security Services Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9682% 5/2/22 (b)(c) | 5,847,843 | 5,872,813 | |
Science Applications International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.375% 5/4/22 (b)(c) | 2,354,601 | 2,357,544 | |
SuperMoose Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 8/29/25 (b)(c) | 3,650,000 | 3,668,871 | |
The GEO Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.25% 3/23/24 (b)(c) | 1,812,400 | 1,809,573 | |
The ServiceMaster Co. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 11/8/23 (b)(c) | 1,168,568 | 1,177,333 | |
Thomson Reuters IP&S Tranche B, term loan 1 month U.S. LIBOR + 3.250% 5.4922% 10/3/23 (b)(c) | 4,611,487 | 4,611,487 | |
TMK Hawk Parent Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.75% 9/26/24 (b)(c) | 1,519,814 | 1,472,958 | |
Wash Multifamily Acquisition, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 5/14/22 (b)(c) | 8,153,296 | 8,194,063 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.000% 9.2422% 5/14/23 (b)(c)(f) | 645,000 | 632,100 | |
Xerox Business Services LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 12/7/23 (b)(c) | 2,565,544 | 2,574,369 | |
TOTAL SERVICES | 157,710,345 | ||
Steel - 0.2% | |||
Atkore International, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 5.14% 12/22/23 (b)(c) | 1,766,650 | 1,773,823 | |
JMC Steel Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.623% 6/14/21 (b)(c) | 3,240,280 | 3,240,280 | |
TOTAL STEEL | 5,014,103 | ||
Super Retail - 3.8% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.1038% 7/2/22 (b)(c) | 5,915,511 | 4,584,521 | |
Bass Pro Shops LLC. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.2422% 9/25/24 (b)(c) | 36,559,727 | 36,909,969 | |
BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.1479% 2/3/24 (b)(c) | 14,505,743 | 14,590,312 | |
Burlington Coat Factory Warehouse Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.72% 11/17/24 (b)(c) | 4,957,808 | 4,988,795 | |
Davids Bridal, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.32% 10/11/19 (b)(c) | 940,144 | 832,027 | |
Harbor Freight Tools U.S.A., Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7422% 8/19/23 (b)(c) | 5,172,863 | 5,174,466 | |
JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.5673% 6/23/23 (b)(c) | 3,074,447 | 2,819,268 | |
Party City Holdings, Inc. term loan 3 month U.S. LIBOR + 2.750% 5.1392% 8/19/22 (b)(c) | 4,502,463 | 4,533,800 | |
PETCO Animal Supplies, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.5924% 1/26/23 (b)(c) | 5,041,690 | 4,079,383 | |
PetSmart, Inc. term loan 3 month U.S. LIBOR + 3.000% 5.12% 3/11/22 (b)(c) | 4,307,239 | 3,751,692 | |
Sports Authority, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 0% 11/16/17 (c)(d) | 3,103,751 | 3,104 | |
The Hillman Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 5/31/25 (b)(c) | 4,319,175 | 4,268,425 | |
TOTAL SUPER RETAIL | 86,535,762 | ||
Technology - 14.0% | |||
Anastasia Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.8826% 8/3/25 (b)(c) | 5,830,000 | 5,743,308 | |
Aptean, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.500% 11.89% 12/20/23 (b)(c) | 795,000 | 795,000 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.64% 12/20/22 (b)(c) | 1,330,935 | 1,336,725 | |
ATS Consolidated, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 2/28/25 (b)(c) | 2,407,900 | 2,416,930 | |
Bracket Intermediate Holding Corp. 1LN, term loan 3 month U.S. LIBOR + 4.250% 6.5708% 9/5/25 (b)(c) | 3,000,000 | 3,000,000 | |
Ceridian HCM Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 4/30/25 (b)(c) | 6,000,000 | 6,007,500 | |
Cologix Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2182% 3/20/24 (b)(c) | 1,361,943 | 1,357,694 | |
Compuware Corp. 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7122% 8/23/25 (b)(c) | 2,295,000 | 2,311,249 | |
Cvent, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 11/29/24 (b)(c) | 3,482,500 | 3,478,147 | |
Dell International LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.25% 9/7/23 (b)(c) | 8,948,326 | 8,966,222 | |
DG Investment Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 2/1/25 (b)(c) | 1,572,756 | 1,572,096 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.9922% 2/1/26 (b)(c) | 600,000 | 603,000 | |
Digicert Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.000% 10/31/24 (c)(e) | 1,360,000 | 1,361,700 | |
3 month U.S. LIBOR + 5.250% 6.8259% 10/31/24 (b)(c) | 8,365,434 | 8,375,891 | |
3 month U.S. LIBOR + 8.000% 10.2422% 10/31/25 (b)(c) | 1,455,345 | 1,448,068 | |
Dynatrace LLC: | |||
2LN, term loan 3 month U.S. LIBOR + 7.000% 9.2242% 8/23/26 (b)(c) | 365,000 | 369,106 | |
Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 5.4742% 8/23/25 (b)(c) | 4,135,000 | 4,157,412 | |
EagleView Technology Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.6344% 8/14/25 (b)(c) | 2,950,000 | 2,950,000 | |
EIG Investors Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 6.0614% 2/9/23 (b)(c) | 5,290,739 | 5,328,515 | |
Electro Rent Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 7.1895% 1/31/24 (b)(c) | 966,652 | 975,517 | |
Epicor Software Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.5% 6/1/22 (b)(c) | 7,674,670 | 7,705,062 | |
EPV Merger Sub, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.4922% 3/8/26 (b)(c) | 545,000 | 542,956 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 3/8/25 (b)(c) | 3,511,200 | 3,509,023 | |
EXC Holdings III Corp. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.500% 5.8861% 12/2/24 (b)(c) | 2,570,600 | 2,586,666 | |
3 month U.S. LIBOR + 7.500% 9.9669% 12/1/25 (b)(c) | 1,000,000 | 1,011,670 | |
First Data Corp. Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.000% 4.2122% 7/10/22 (b)(c) | 15,523,641 | 15,546,616 | |
3 month U.S. LIBOR + 2.000% 4.2122% 4/26/24 (b)(c) | 5,213,560 | 5,217,262 | |
Global Payments, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 1.750% 3.9922% 4/22/23 (b)(c) | 1,526,068 | 1,527,594 | |
Go Daddy Operating Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 2/15/24 (b)(c) | 11,855,866 | 11,898,666 | |
Hyland Software, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 9.2422% 7/7/25 (b)(c) | 500,000 | 505,750 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 7/1/22 (b)(c) | 2,466,278 | 2,480,656 | |
Infor U.S., Inc. Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.750% 5.1361% 2/1/22 (b)(c) | 2,921,246 | 2,928,081 | |
Kronos, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 8.250% 10.5931% 11/1/24 (b)(c) | 7,835,000 | 7,994,521 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.3431% 11/1/23 (b)(c) | 6,895,481 | 6,927,407 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 6.33% 1/20/24 (b)(c) | 7,260,989 | 7,312,396 | |
3 month U.S. LIBOR + 9.000% 11.08% 1/20/25 (b)(c) | 2,270,000 | 2,179,200 | |
MA FinanceCo. LLC: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 11/20/21 (b)(c) | 2,716,350 | 2,702,768 | |
Tranche B 3LN, term loan: | |||
3 month U.S. LIBOR + 2.500% 4.7422% 6/21/24 (b)(c) | 12,789,667 | 12,747,077 | |
3 month U.S. LIBOR + 2.500% 4.7422% 6/21/24 (b)(c) | 2,085,583 | 2,078,638 | |
Marketo, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.5933% 2/7/25 (b)(c) | 3,655,838 | 3,657,665 | |
McAfee LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 6.7422% 9/29/24 (b)(c) | 12,545,980 | 12,642,333 | |
3 month U.S. LIBOR + 8.500% 10.7422% 9/29/25 (b)(c) | 4,000,000 | 4,070,000 | |
MH Sub I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9153% 9/15/24 (b)(c) | 3,960,000 | 3,984,750 | |
Microchip Technology, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.25% 5/29/25 (b)(c) | 6,377,000 | 6,378,339 | |
Mitchell International, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.250% 5.4922% 12/1/24 (b)(c) | 3,304,019 | 3,295,991 | |
3 month U.S. LIBOR + 7.250% 9.4922% 12/1/25 (b)(c) | 1,000,000 | 998,250 | |
NAVEX TopCo, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.000% 9.12% 9/4/26 (b)(c) | 415,000 | 416,382 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.37% 9/4/25 (b)(c) | 1,730,000 | 1,728,357 | |
Renaissance Holding Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 5/31/25 (b)(c) | 4,952,588 | 4,940,206 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.000% 9.2422% 5/31/26 (b)(c) | 2,390,000 | 2,378,050 | |
Severin Acquisition LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.3538% 8/1/25 (b)(c) | 3,495,000 | 3,495,000 | |
Solera LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 3/3/23 (b)(c) | 6,055,439 | 6,066,823 | |
Sophia L.P. term loan 3 month U.S. LIBOR + 3.250% 5.6361% 9/30/22 (b)(c) | 6,655,210 | 6,682,962 | |
Sound Inpatient Physicians, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 6/28/25 (b)(c) | 1,182,038 | 1,190,406 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.9922% 6/28/26 (b)(c) | 240,000 | 240,300 | |
SS&C Technologies, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 7/8/22 (b)(c) | 2,218,055 | 2,227,060 | |
Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 4/16/25 (b)(c) | 11,114,938 | 11,121,940 | |
Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 4/16/25 (b)(c) | 4,314,444 | 4,317,162 | |
Tranche B 5LN, term loan 3 month U.S. LIBOR + 2.500% 4.506% 4/16/25 (b)(c) | 2,490,000 | 2,490,772 | |
Sybil Software LLC. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.8861% 9/30/23 (b)(c) | 3,195,624 | 3,212,114 | |
Syniverse Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.1479% 3/9/23 (b)(c) | 6,467,500 | 6,486,320 | |
Tempo Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 5/1/24 (b)(c) | 10,877,387 | 10,914,261 | |
TIBCO Software, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.75% 12/4/20 (b)(c) | 838,319 | 841,286 | |
Travelclick, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7422% 5/12/21 (b)(c) | 1,518,825 | 1,516,547 | |
TTM Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.6038% 9/28/24 (b)(c) | 6,873,506 | 6,893,577 | |
Uber Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.1203% 4/4/25 (b)(c) | 8,478,750 | 8,523,772 | |
Vantiv LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 1.750% 3.884% 8/9/24 (b)(c) | 4,975,000 | 4,979,677 | |
Verscend Holding Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 6.7422% 8/27/25 (b)(c) | 8,185,000 | 8,249,825 | |
Vertafore, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 7/2/25 (b)(c) | 10,000,000 | 10,040,000 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 9.4922% 7/2/26 (b)(c) | 3,500,000 | 3,524,080 | |
Web.com Group, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 9/17/26 (c)(e) | 2,500,000 | 2,509,375 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 9/17/25 (c)(e) | 4,460,000 | 4,485,645 | |
WEX, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4922% 7/1/23 (b)(c) | 6,184,213 | 6,202,271 | |
TOTAL TECHNOLOGY | 320,657,587 | ||
Telecommunications - 7.5% | |||
Altice Financing SA Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 4.9084% 7/15/25 (b)(c) | 5,449,887 | 5,339,527 | |
3 month U.S. LIBOR + 2.750% 4.9084% 1/31/26 (b)(c) | 3,473,750 | 3,391,248 | |
Ciena Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 9/27/25 (b)(c) | 1,200,000 | 1,204,500 | |
Digicel International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.57% 5/25/24 (b)(c) | 5,845,252 | 5,531,070 | |
Evo Payments International LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.49% 12/22/23 (b)(c) | 2,955,150 | 2,975,481 | |
Frontier Communications Corp.: | |||
Tranche A, term loan 3 month U.S. LIBOR + 2.750% 5% 3/31/21 (b)(c) | 12,994,036 | 12,734,155 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9682% 6/15/24 (b)(c) | 24,233,749 | 23,714,904 | |
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.99% 5/31/25 (b)(c) | 4,488,750 | 4,450,102 | |
Intelsat Jackson Holdings SA: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9801% 11/27/23 (b)(c) | 34,775,000 | 34,895,669 | |
Tranche B-4, term loan 3 month U.S. LIBOR + 4.500% 6.7301% 1/2/24 (b)(c) | 4,000,000 | 4,197,520 | |
Tranche B-5, term loan 6.625% 1/2/24 | 6,205,000 | 6,457,854 | |
Level 3 Financing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4324% 2/22/24 (b)(c) | 10,090,000 | 10,116,638 | |
Neptune Finco Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4084% 7/17/25 (b)(c) | 4,889,418 | 4,887,364 | |
Onvoy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 6.8861% 2/10/24 (b)(c) | 2,955,000 | 2,888,513 | |
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2422% 2/1/24 (b)(c) | 11,040,111 | 11,018,252 | |
Sable International Finance Ltd. Tranche B 4LN, term loan 3 month U.S. LIBOR + 3.250% 5.4922% 2/2/26 (b)(c) | 14,250,000 | 14,305,433 | |
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.25% 4/11/25 (b)(c) | 4,488,750 | 4,492,341 | |
Securus Technologies, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 11/1/24 (c)(e) | 2,400,000 | 2,402,400 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 6.7158% 11/1/24 (b)(c) | 4,566,992 | 4,571,559 | |
3 month U.S. LIBOR + 8.250% 10.4922% 11/1/25 (b)(c) | 3,000,000 | 2,996,250 | |
SFR Group SA Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 4.9922% 7/31/25 (b)(c) | 7,283,423 | 7,101,338 | |
Sprint Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 4.7158% 2/3/24 (b)(c) | 2,633,316 | 2,639,900 | |
TOTAL TELECOMMUNICATIONS | 172,312,018 | ||
Textiles/Apparel - 0.1% | |||
ABB Optical Group LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.1602% 6/15/23 (b)(c) | 1,641,500 | 1,645,604 | |
Transportation Ex Air/Rail - 0.6% | |||
IBC Capital Ltd.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.000% 9.3371% 9/11/24 (b)(c) | 670,000 | 675,025 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 6.0871% 9/11/23 (b)(c) | 4,477,500 | 4,503,604 | |
International Seaways Operating Corp. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 8.08% 6/22/22 (b)(c) | 5,311,938 | 5,318,578 | |
Navios Maritime Partners LP Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.34% 9/14/20 (b)(c) | 3,052,504 | 3,049,970 | |
TOTAL TRANSPORTATION EX AIR/RAIL | 13,547,177 | ||
Utilities - 3.3% | |||
Brookfield WEC Holdings, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 6.750% 8.9922% 8/1/26 (b)(c) | 2,375,000 | 2,413,594 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9922% 8/1/25 (b)(c) | 12,500,000 | 12,650,000 | |
Exgen Renewables Iv LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.32% 11/28/24 (b)(c) | 3,922,797 | 3,952,218 | |
Green Energy Partners/Stonewall LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.8861% 11/13/21 (b)(c) | 4,012,470 | 4,022,501 | |
Houston Fuel Oil Terminal Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 5% 6/26/25 (b)(c) | 7,980,000 | 7,982,474 | |
Invenergy Thermal Operating I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8114% 8/28/25 (b)(c) | 3,910,000 | 3,944,213 | |
Limetree Bay Terminals LLC term loan 3 month U.S. LIBOR + 4.000% 6.2422% 2/15/24 (b)(c) | 3,378,556 | 3,296,220 | |
Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 8.1361% 12/19/20 (b)(c) | 7,277,583 | 7,193,890 | |
Pike Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.75% 3/23/25 (b)(c) | 3,674,866 | 3,701,509 | |
Tex Operations Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2422% 8/4/23 (b)(c) | 6,952,611 | 6,958,938 | |
Vertiv Group Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 6.3126% 11/30/23 (b)(c) | 4,260,468 | 4,274,655 | |
Vistra Operations Co. LLC: | |||
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 4.4922% 12/14/23 (b)(c) | 3,438,750 | 3,445,799 | |
Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.000% 4.1808% 12/31/25 (b)(c) | 10,533,600 | 10,541,500 | |
TOTAL UTILITIES | 74,377,511 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $2,116,049,149) | 2,111,861,178 | ||
Nonconvertible Bonds - 2.9% | |||
Aerospace - 0.0% | |||
DAE Funding LLC 4% 8/1/20 (g) | 905,000 | 894,819 | |
Chemicals - 0.2% | |||
OCI NV 6.625% 4/15/23 (g) | 1,000,000 | 1,035,000 | |
TPC Group, Inc. 8.75% 12/15/20 (g) | 3,780,000 | 3,770,550 | |
TOTAL CHEMICALS | 4,805,550 | ||
Containers - 0.3% | |||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 3 month U.S. LIBOR + 3.500% 5.8392% 7/15/21 (b)(c)(g) | 5,780,000 | 5,859,475 | |
Energy - 0.6% | |||
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 | 1,605,000 | 1,611,019 | |
7% 6/30/24 | 1,000,000 | 1,095,000 | |
Chesapeake Energy Corp. 3 month U.S. LIBOR + 3.250% 5.5892% 4/15/19 (b)(c) | 1,420,000 | 1,421,775 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 6.0841% 6/15/22 (b)(c)(g) | 4,500,000 | 4,501,623 | |
6.875% 6/15/25 (g) | 1,000,000 | 1,038,750 | |
Denbury Resources, Inc.: | |||
9% 5/15/21 (g) | 730,000 | 789,313 | |
9.25% 3/31/22 (g) | 1,455,000 | 1,571,400 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 5/15/26 (g) | 1,435,000 | 1,469,081 | |
TOTAL ENERGY | 13,497,961 | ||
Gaming - 0.3% | |||
Scientific Games Corp. 5% 10/15/25 (g) | 3,060,000 | 2,907,000 | |
Stars Group Holdings BV 7% 7/15/26 (g) | 2,000,000 | 2,063,380 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875% 5/15/25 (g) | 1,367,000 | 1,291,405 | |
TOTAL GAMING | 6,261,785 | ||
Healthcare - 0.4% | |||
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 2,500,000 | 2,430,000 | |
5.125% 5/1/25 | 1,000,000 | 985,000 | |
7.5% 1/1/22 (g) | 900,000 | 939,375 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.5% 11/1/25 (g) | 2,515,000 | 2,510,599 | |
9% 12/15/25 (g) | 1,275,000 | 1,372,270 | |
TOTAL HEALTHCARE | 8,237,244 | ||
Insurance - 0.0% | |||
HUB International Ltd. 7% 5/1/26 (g) | 1,000,000 | 1,001,310 | |
Leisure - 0.1% | |||
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (g) | 1,220,000 | 1,229,150 | |
7.25% 11/30/21 (g) | 2,000,000 | 2,070,000 | |
TOTAL LEISURE | 3,299,150 | ||
Paper - 0.1% | |||
Xerium Technologies, Inc. 9.5% 8/15/21 | 2,500,000 | 2,628,750 | |
Services - 0.2% | |||
APX Group, Inc. 7.625% 9/1/23 | 980,000 | 905,275 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (g) | 2,395,000 | 2,461,773 | |
TOTAL SERVICES | 3,367,048 | ||
Technology - 0.3% | |||
Diamond 1 Finance Corp./Diamond 2 Finance Corp.: | |||
3.48% 6/1/19 (g) | 1,004,000 | 1,006,553 | |
4.42% 6/15/21 (g) | 3,030,000 | 3,074,890 | |
NXP BV/NXP Funding LLC 4.125% 6/1/21 (g) | 2,665,000 | 2,662,122 | |
TOTAL TECHNOLOGY | 6,743,565 | ||
Telecommunications - 0.3% | |||
Altice Financing SA 7.5% 5/15/26 (g) | 3,095,000 | 3,017,625 | |
SFR Group SA: | |||
6.25% 5/15/24 (g) | 1,930,000 | 1,901,050 | |
7.375% 5/1/26 (g) | 3,010,000 | 3,010,000 | |
TOTAL TELECOMMUNICATIONS | 7,928,675 | ||
Textiles/Apparel - 0.0% | |||
Eagle Intermediate Global Holding BV 7.5% 5/1/25 (g) | 870,000 | 852,600 | |
Transportation Ex Air/Rail - 0.1% | |||
Avolon Holdings Funding Ltd. 5.125% 10/1/23 (g) | 2,255,000 | 2,274,731 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $67,232,855) | 67,652,663 | ||
Shares | Value | ||
Common Stocks - 0.8% | |||
Chemicals - 0.2% | |||
LyondellBasell Industries NV Class A | 52,192 | 5,350,202 | |
Energy - 0.4% | |||
Expro Holdings U.S., Inc. (f) | 240,349 | 5,768,376 | |
Expro Holdings U.S., Inc. (f)(g) | 88,205 | 2,116,920 | |
TOTAL ENERGY | 7,885,296 | ||
Metals/Mining - 0.0% | |||
Warrior Metropolitan Coal, Inc. | 27,296 | 738,084 | |
Publishing/Printing - 0.1% | |||
Cenveo Corp. (f)(g) | 4,167 | 121,510 | |
Tribune Media Co. Class A | 35,222 | 1,353,581 | |
TOTAL PUBLISHING/PRINTING | 1,475,091 | ||
Telecommunications - 0.0% | |||
Consolidated Communications Holdings, Inc. | 130 | 1,695 | |
Utilities - 0.1% | |||
TexGen Power LLC (f) | 85,051 | 3,104,362 | |
TOTAL COMMON STOCKS | |||
(Cost $17,510,972) | 18,554,730 | ||
Other - 0.0% | |||
Other - 0.0% | |||
Tribune Co. Claim (f)(h) | |||
(Cost $45,406) | 45,954 | 45,954 | |
Money Market Funds - 5.3% | |||
Fidelity Cash Central Fund, 2.11% (i) | |||
(Cost $120,489,666) | 120,471,829 | 120,495,923 | |
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $2,321,328,048) | 2,318,610,448 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (22,666,833) | ||
NET ASSETS - 100% | $2,295,943,615 |
Legend
(a) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(d) Non-income producing - Security is in default.
(e) The coupon rate will be determined upon settlement of the loan after period end.
(f) Level 3 security
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $58,814,274 or 2.6% of net assets.
(h) Non-income producing
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $3,057,017 |
Total | $3,057,017 |
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of September 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $1,353,581 | $1,353,581 | $-- | $-- |
Energy | 7,885,296 | -- | -- | 7,885,296 |
Industrials | 121,510 | -- | -- | 121,510 |
Materials | 6,088,286 | 6,088,286 | -- | -- |
Telecommunication Services | 1,695 | 1,695 | -- | -- |
Utilities | 3,104,362 | -- | -- | 3,104,362 |
Bank Loan Obligations | 2,111,861,178 | -- | 2,111,229,078 | 632,100 |
Corporate Bonds | 67,652,663 | -- | 67,652,663 | -- |
Other | 45,954 | -- | -- | 45,954 |
Money Market Funds | 120,495,923 | 120,495,923 | -- | -- |
Total Investments in Securities: | $2,318,610,448 | $127,939,485 | $2,178,881,741 | $11,789,222 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 88.8% |
Luxembourg | 5.0% |
Canada | 1.3% |
Netherlands | 1.1% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 2.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
September 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $2,200,838,382) | $2,198,114,525 | |
Fidelity Central Funds (cost $120,489,666) | 120,495,923 | |
Total Investment in Securities (cost $2,321,328,048) | $2,318,610,448 | |
Cash | 21,466,856 | |
Receivable for investments sold | 7,242,981 | |
Receivable for fund shares sold | 261,664 | |
Dividends receivable | 9,156 | |
Interest receivable | 12,363,122 | |
Distributions receivable from Fidelity Central Funds | 193,322 | |
Total assets | 2,360,147,549 | |
Liabilities | ||
Payable for investments purchased | $62,677,510 | |
Payable for fund shares redeemed | 892,400 | |
Distributions payable | 619,421 | |
Other payables and accrued expenses | 14,603 | |
Total liabilities | 64,203,934 | |
Net Assets | $2,295,943,615 | |
Net Assets consist of: | ||
Paid in capital | $2,300,090,576 | |
Undistributed net investment income | 1,735,079 | |
Accumulated undistributed net realized gain (loss) on investments | (3,164,440) | |
Net unrealized appreciation (depreciation) on investments | (2,717,600) | |
Net Assets, for 22,224,439 shares outstanding | $2,295,943,615 | |
Net Asset Value, offering price and redemption price per share ($2,295,943,615 ÷ 22,224,439 shares) | $103.31 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended September 30, 2018 | ||
Investment Income | ||
Dividends | $930,450 | |
Interest | 104,508,509 | |
Income from Fidelity Central Funds | 3,057,017 | |
Total income | 108,495,976 | |
Expenses | ||
Custodian fees and expenses | $36,934 | |
Independent directors' fees and expenses | 9,713 | |
Legal | 55,142 | |
Miscellaneous | 38 | |
Total expenses before reductions | 101,827 | |
Expense reductions | (33,473) | |
Total expenses after reductions | 68,354 | |
Net investment income (loss) | 108,427,622 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (2,822,970) | |
Fidelity Central Funds | 783 | |
Total net realized gain (loss) | (2,822,187) | |
Change in net unrealized appreciation (depreciation) on investment securities | 9,369,188 | |
Net gain (loss) | 6,547,001 | |
Net increase (decrease) in net assets resulting from operations | $114,974,623 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended September 30, 2018 | Year ended September 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $108,427,622 | $82,079,389 |
Net realized gain (loss) | (2,822,187) | 4,385,070 |
Change in net unrealized appreciation (depreciation) | 9,369,188 | 4,876,219 |
Net increase (decrease) in net assets resulting from operations | 114,974,623 | 91,340,678 |
Distributions to shareholders from net investment income | (107,324,263) | (81,420,546) |
Distributions to shareholders from net realized gain | (5,780,280) | (808,840) |
Total distributions | (113,104,543) | (82,229,386) |
Affiliated share transactions | ||
Proceeds from sales of shares | 697,577,163 | 243,935,396 |
Reinvestment of distributions | 106,258,937 | 23,568,043 |
Cost of shares redeemed | (144,268,596) | (256,527,613) |
Net increase (decrease) in net assets resulting from share transactions | 659,567,504 | 10,975,826 |
Total increase (decrease) in net assets | 661,437,584 | 20,087,118 |
Net Assets | ||
Beginning of period | 1,634,506,031 | 1,614,418,913 |
End of period | $2,295,943,615 | $1,634,506,031 |
Other Information | ||
Undistributed net investment income end of period | $1,735,079 | $658,843 |
Shares | ||
Sold | 6,749,302 | 2,363,592 |
Issued in reinvestment of distributions | 1,029,866 | 228,146 |
Redeemed | (1,398,060) | (2,479,226) |
Net increase (decrease) | 6,381,108 | 112,512 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Floating Rate Central Fund
Years ended September 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $103.17 | $102.63 | $102.02 | $107.17 | $106.39 |
Income from Investment Operations | |||||
Net investment income (loss)A | 5.279 | 5.268 | 5.424 | 5.449 | 5.658 |
Net realized and unrealized gain (loss) | .401 | .545 | .357 | (5.445) | .412 |
Total from investment operations | 5.680 | 5.813 | 5.781 | .004 | 6.070 |
Distributions from net investment income | (5.215) | (5.223) | (5.171) | (5.154) | (5.290) |
Distributions from net realized gain | (.325) | (.050) | – | – | – |
Total distributions | (5.540) | (5.273) | (5.171) | (5.154) | (5.290) |
Net asset value, end of period | $103.31 | $103.17 | $102.63 | $102.02 | $107.17 |
Total ReturnB | 5.65% | 5.77% | 5.95% | (.03)% | 5.78% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | - %E | .06% | - %E | - %E | - %E |
Expenses net of fee waivers, if any | - %E | .06% | - %E | - %E | - %E |
Expenses net of all reductions | - %E | .06% | - %E | - %E | - %E |
Net investment income (loss) | 5.12% | 5.09% | 5.45% | 5.15% | 5.25% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $2,295,944 | $1,634,506 | $1,614,419 | $1,597,788 | $1,653,285 |
Portfolio turnover rateF | 47% | 78% | 48% | 37%G | 66% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
E Amount represents less than .005%.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended September 30, 2018
1. Organization.
Fidelity Floating Rate 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 (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.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Directors (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including other 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 September 30, 2018 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, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of September 30, 2018, 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 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 | $22,614,127 |
Gross unrealized depreciation | (24,057,889) |
Net unrealized appreciation (depreciation) | $(1,443,762) |
Tax Cost | $2,320,054,210 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $1,735,079 |
Capital loss carryforward | $(4,438,277) |
Net unrealized appreciation (depreciation) on securities and other investments | $(1,443,762) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Long-term | $(4,438,277) |
Total capital loss carryforward | $(4,438,277) |
The tax character of distributions paid was as follows:
September 30, 2018 | September 30, 2017 | |
Ordinary Income | $111,877,345 | $ 81,873,496 |
Long-term Capital Gains | 1,227,198 | 355,890 |
Total | $113,104,543 | $ 82,229,386 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchase and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $1,619,074,168 and $938,419,735, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR Co., Inc. (the investment adviser), an affiliate of FMR, provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR 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. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3,420.
6. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $33,473.
7. Other.
The 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, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by FMR or its affiliates were the owners of record of all of the outstanding shares of the Fund.
8. Litigation.
The Fund and other entities managed by FMR or its affiliates were named as defendants in a lawsuit filed in the United States Bankruptcy Court for the Southern District of New York in 2009. The lawsuit was brought by creditors of Motors Liquidation Company (f/k/a General Motors), which went through Chapter 11 bankruptcy proceedings in 2009, and is captioned Official Committee of Unsecured Creditors of Motors Liquidation Company v. JPMorgan Chase Bank, N.A., et al., Adversary No. 09-00504 (REG). The plaintiffs are seeking an order that the Fund and other defendants return proceeds received in 2009 in full payment of the principal and interest on General Motors secured debt. The plaintiffs contend that the Fund and the other defendants were not secured creditors at the time of the 2009 payments and, thus, were not entitled to payment in full. In January 2015, the Court of Appeals ruled that JPMorgan, as administrative agent for all of the debtholders, released the security interest on certain collateral securing the debt prior to the 2009 payments. In September 2017, an opinion was issued in a trial intended to help determine the value of any remaining, unreleased collateral. The parties have engaged in mediation but continue to disagree on the value of the unreleased collateral. At this time, Management cannot determine the amount of loss that may be realized, but expects the amount to be less than the $32,518,731 received in 2009. The Fund is also incurring legal costs in defending the case.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Central Investment Portfolios LLC and the Shareholders of Fidelity Floating Rate Central Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Floating Rate Central Fund (the "Fund"), a fund of Fidelity Central Investment Portfolios LLC, including the schedule of investments, as of September 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, 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 September 30, 2018, 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 September 30, 2018, by correspondence with the custodians, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 15, 2018
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Directors and Officers (Trustees and Officers)
The Trustees, Members of the Advisory Board (if any), and officers of the Fidelity Central Investment Portfolios LLC and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 260 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2017-present) and Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the Fidelity Central Investment Portfolios LLC or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present), Board of Directors (2017-present) and Board of Trustees (2018-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2004
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-present), a Director of Andeavor Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2004
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
William S. Stavropoulos (1939)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Stavropoulos also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as Trustee of certain Fidelity® funds (2001-2018) and as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 to September 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period-B April 1, 2018 to September 30, 2018 | |
Actual | .0056% | $1,000.00 | $1,027.70 | $.03 |
Hypothetical-C | $1,000.00 | $1,025.04 | $.03 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
A total of 0.67% 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 $75,864,852 of distributions paid during the period January 1, 2018 to September 30, 2018 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Floating Rate Central Fund
At its July 2018 meeting, the Board of Directors, including the Independent Directors (together, the Board), voted to continue the management contract with FMR Co., Inc. (FMRC) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FR1-ANN-1118
1.814672.113
Item 2.
Code of Ethics
As of the end of the period, September 30, 2018, 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 Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Consumer Discretionary Central Fund, Fidelity Consumer Staples Central Fund, Fidelity Emerging Markets Equity Central Fund, Fidelity Energy Central Fund, Fidelity Financials Central Fund, Fidelity Floating Rate Central Fund, Fidelity Health Care Central Fund, Fidelity High Income Central Fund 1, Fidelity Industrials Central Fund, Fidelity Information Technology Central Fund, Fidelity International Equity Central Fund, Fidelity Materials Central Fund, Fidelity Real Estate Equity Central Fund, Fidelity Telecom Services Central Fund and Fidelity Utilities Central Fund (the “Funds”):
Services Billed by Deloitte Entities
September 30, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Consumer Discretionary Central Fund | $40,000 | $100 | $6,000 | $1,200 |
Fidelity Consumer Staples Central Fund | $40,000 | $100 | $6,000 | $1,200 |
Fidelity Emerging Markets Equity Central Fund | $45,000 | $100 | $6,300 | $1,300 |
Fidelity Energy Central Fund | $42,000 | $100 | $7,100 | $1,300 |
Fidelity Financials Central Fund | $43,000 | $100 | $6,900 | $1,300 |
Fidelity Floating Rate Central Fund | $82,000 | $100 | $6,300 | $2,300 |
Fidelity Health Care Central Fund | $42,000 | $100 | $6,000 | $1,200 |
Fidelity High Income Central Fund 1 | $56,000 | $100 | $6,300 | $1,600 |
Fidelity Industrials Central Fund | $41,000 | $100 | $6,000 | $1,200 |
Fidelity Information Technology Central Fund | $54,000 | $100 | $6,000 | $1,500 |
Fidelity International Equity Central Fund | $50,000 | $100 | $6,400 | $1,400 |
Fidelity Materials Central Fund | $40,000 | $100 | $6,000 | $1,200 |
Fidelity Real Estate Equity Central Fund | $41,000 | $100 | $6,000 | $1,200 |
Fidelity Telecom Services Central Fund | $40,000 | $100 | $6,000 | $1,200 |
Fidelity Utilities Central Fund | $40,000 | $100 | $6,000 | $1,200 |
September 30, 2017 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Consumer Discretionary Central Fund | $40,000 | $100 | $9,200 | $1,200 |
Fidelity Consumer Staples Central Fund | $40,000 | $100 | $9,200 | $1,200 |
Fidelity Emerging Markets Equity Central Fund | $45,000 | $100 | $8,900 | $1,300 |
Fidelity Energy Central Fund | $42,000 | $100 | $10,400 | $1,300 |
Fidelity Financials Central Fund | $43,000 | $100 | $10,200 | $1,300 |
Fidelity Floating Rate Central Fund | $82,000 | $100 | $9,200 | $2,300 |
Fidelity Health Care Central Fund | $42,000 | $100 | $9,200 | $1,200 |
Fidelity High Income Central Fund 1 | $56,000 | $100 | $9,200 | $1,600 |
Fidelity Industrials Central Fund | $41,000 | $100 | $9,200 | $1,200 |
Fidelity Information Technology Central Fund | $53,000 | $100 | $9,200 | $1,500 |
Fidelity International Equity Central Fund | $50,000 | $100 | $9,000 | $1,500 |
Fidelity Materials Central Fund | $40,000 | $100 | $9,200 | $1,200 |
Fidelity Real Estate Equity Central Fund | $41,000 | $100 | $8,900 | $1,300 |
Fidelity Telecom Services Central Fund | $40,000 | $100 | $9,200 | $1,200 |
Fidelity Utilities Central Fund | $40,000 | $100 | $9,200 | $1,200 |
A Amounts may reflect rounding.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| September 30, 2018A | September 30, 2017A |
Audit-Related Fees | $290,000 | $- |
Tax Fees | $5,000 | $25,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | September 30, 2018A | September 30, 2017A |
Deloitte Entities | $870,000 | $675,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The 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 Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
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 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Central Investment Portfolios LLC
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | November 26, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | November 26, 2018 |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | November 26, 2018 |