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 811-21990
Fidelity Commonwealth Trust II
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Stephen D. Fisher, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | February 28 |
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Date of reporting period: | February 28, 2009 |
Item 1. Reports to Stockholders
Fidelity®
Large Cap Growth Enhanced Index
Large Cap Value Enhanced Index
Large Cap Core Enhanced Index
Mid Cap Enhanced Index
Small Cap Enhanced Index
International Enhanced Index
Funds
Annual Report
(2_fidelity_logos) (Registered_Trademark)
February 28, 2009
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Shareholder Expense Example | An example of shareholder expenses | |
| ||
Fidelity Large Cap Growth Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| ||
Fidelity Large Cap Value Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| ||
Fidelity Large Cap Core Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
|
|
|
Fidelity Mid Cap Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| ||
Fidelity Small Cap Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| ||
Fidelity International Enhanced Index Fund | Performance | |
| Management's Discussion | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| ||
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
Annual Report
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 (search for "proxy voting guidelines") 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.
Geode is a registered trademark of Geode Capital Management, LLC.
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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (September 1, 2008 to February 28, 2009).
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. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Large Cap Growth Enhanced Index Fund | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 612.60 | $ 1.80 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.56 | $ 2.26 |
Fidelity Large Cap Value Enhanced Index Fund | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 574.30 | $ 1.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.56 | $ 2.26 |
Fidelity Large Cap Core Enhanced Index Fund | .45% |
|
|
|
Actual |
| $ 1,000.00 | $ 597.90 | $ 1.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.56 | $ 2.26 |
Fidelity Mid Cap Enhanced Index Fund | .60% |
|
|
|
Actual |
| $ 1,000.00 | $ 563.50 | $ 2.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.82 | $ 3.01 |
Fidelity Small Cap Enhanced Index Fund | .67% |
|
|
|
Actual |
| $ 1,000.00 | $ 552.70 | $ 2.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.47 | $ 3.36 |
Fidelity International Enhanced Index Fund | .62% |
|
|
|
Actual |
| $ 1,000.00 | $ 543.10 | $ 2.37 |
HypotheticalA |
| $ 1,000.00 | $ 1,021.72 | $ 3.11 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annual Report
Fidelity Large Cap Growth Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
Large Cap Growth Enhanced Index Fund | -38.61% | -25.97% |
A From April 19, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Large Cap Growth Enhanced Index Fund on April 19, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
Annual Report
Fidelity Large Cap Growth Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity markets took it squarely on the chin during the 12 months ending February 28, 2009, battered by global recessionary fears, drum-tight credit markets and the rapid flight of capital away from risk and toward the investment sidelines. Stocks had performed reasonably well up until late last summer, in spite of high energy costs and slowing global economic growth. But beginning in September 2008, a succession of large financial institutions either collapsed, or came close to failing, as they struggled under the weight of toxic, asset-backed securities, which sent the equity markets into a turbulent downward spiral. Even as the federal government began a series of aggressive interventions to rescue the troubled financial services industry and to shore up deteriorating economic conditions, investors remained skittish and the equity markets' sell-off continued. The Standard & Poor's 500SM Index fell 43.32% for the year overall and lost more than 17% in value during the December-February time frame alone. All 10 of the S&P 500®'s market sectors landed deep in negative territory for the 12-month span. Meanwhile, the blue-chip Dow Jones Industrial AverageSM fell by a comparable 40.58% mark, and the small-cap-oriented Russell 2000® Index declined 42.38%. Elsewhere, the technology-heavy NASDAQ Composite® Index dropped 38.77%.
Comments from Jeffrey Adams, who oversees Fidelity® Large Cap Growth Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: For the year, the fund declined 38.61%, compared with a loss of 40.03% for the benchmark Russell 1000® Growth Index. Security selection in the consumer discretionary sector - and especially the consumer services industry - was a big positive. Favorable stock picks in information technology and consumer staples helped as well. In contrast, security selection in industrials and materials proved detrimental to the fund's performance during the period. Defensively oriented companies tended to do the best, while more-economically sensitive names generally lagged. Several of our best-performing stocks were for-profit education companies, notably ITT Educational Services and Apollo Group. Both firms generated strong earnings, thanks in part to increased student enrollment tied to the desire to build new job skills in a weak economy. Pharmacy chain Longs Drug Stores rose sharply after the company was acquired by CVS Caremark. Not owning poor-performing benchmark component United States Steel helped as well, although unfortunately for the fund's results, we were overweighted in another very-poor-performing steel manufacturer, AK Steel, which was not in the portfolio at period end. Both companies were hurt by the sharply lower demand for steel in a weak economy. Real estate investment trust ProLogis, which develops industrial space, had difficulty in a challenging business environment, while construction- and food service-equipment manufacturer Manitowoc struggled as well amid declining demand for its products.
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.
Annual Report
Fidelity Large Cap Growth Enhanced Index Fund
Investment Changes (Unaudited)
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
International Business Machines Corp. | 3.4 | 2.7 |
Microsoft Corp. | 3.2 | 3.4 |
Cisco Systems, Inc. | 2.3 | 2.2 |
Wal-Mart Stores, Inc. | 2.3 | 2.0 |
Google, Inc. Class A (sub. vtg.) | 2.2 | 1.5 |
Apple, Inc. | 2.2 | 2.1 |
Hewlett-Packard Co. | 2.0 | 2.2 |
Abbott Laboratories | 2.0 | 1.5 |
Philip Morris International, Inc. | 1.9 | 1.4 |
Exxon Mobil Corp. | 1.8 | 1.6 |
| 23.3 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 30.0 | 28.4 |
Health Care | 16.7 | 13.8 |
Consumer Staples | 12.7 | 11.6 |
Industrials | 10.1 | 13.1 |
Consumer Discretionary | 10.1 | 10.1 |
Energy | 8.2 | 10.3 |
Materials | 3.7 | 4.8 |
Financials | 3.3 | 4.3 |
Telecommunication Services | 1.5 | 0.9 |
Utilities | 1.4 | 1.3 |
Annual Report
Fidelity Large Cap Growth Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 97.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 10.1% | |||
Auto Components - 0.1% | |||
Autoliv, Inc. | 1,209 | $ 17,990 | |
Johnson Controls, Inc. | 500 | 5,690 | |
| 23,680 | ||
Diversified Consumer Services - 1.0% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 1,200 | 87,000 | |
ITT Educational Services, Inc. (a) | 900 | 102,150 | |
Weight Watchers International, Inc. | 1,673 | 30,281 | |
| 219,431 | ||
Hotels, Restaurants & Leisure - 2.3% | |||
Choice Hotels International, Inc. (e) | 1,070 | 26,493 | |
McDonald's Corp. | 6,700 | 350,075 | |
Starbucks Corp. (a) | 2,500 | 22,875 | |
Yum! Brands, Inc. | 3,821 | 100,416 | |
| 499,859 | ||
Household Durables - 0.6% | |||
Garmin Ltd. | 3,000 | 51,360 | |
Harman International Industries, Inc. | 3,500 | 37,170 | |
NVR, Inc. (a) | 130 | 43,260 | |
| 131,790 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. | 1,100 | 71,269 | |
Media - 2.1% | |||
Comcast Corp. Class A (e) | 6,300 | 82,278 | |
DISH Network Corp. Class A (a) | 4,295 | 48,319 | |
Liberty Media Corp. - Entertainment Class A (a) | 900 | 15,588 | |
McGraw-Hill Companies, Inc. | 3,120 | 61,558 | |
News Corp. Class A | 8,562 | 47,605 | |
Omnicom Group, Inc. | 3,941 | 94,702 | |
The Walt Disney Co. (e) | 4,529 | 75,951 | |
Viacom, Inc. Class B (non-vtg.) (a) | 1,690 | 26,009 | |
| 452,010 | ||
Multiline Retail - 0.7% | |||
Dollar Tree, Inc. (a) | 1,150 | 44,643 | |
Nordstrom, Inc. (e) | 3,000 | 40,410 | |
Target Corp. | 2,263 | 64,066 | |
| 149,119 | ||
Specialty Retail - 2.3% | |||
Aeropostale, Inc. (a) | 1,600 | 37,104 | |
AutoZone, Inc. (a)(e) | 750 | 106,673 | |
Best Buy Co., Inc. | 1,000 | 28,820 | |
Gamestop Corp. Class A (a) | 3,682 | 99,119 | |
RadioShack Corp. | 2,500 | 18,325 | |
Ross Stores, Inc. | 2,600 | 76,752 | |
TJX Companies, Inc. | 5,000 | 111,350 | |
Tractor Supply Co. (a)(e) | 1,100 | 34,364 | |
| 512,507 | ||
| |||
Shares | Value | ||
Textiles, Apparel & Luxury Goods - 0.7% | |||
Coach, Inc. (a) | 4,600 | $ 64,308 | |
NIKE, Inc. Class B | 2,370 | 98,426 | |
| 162,734 | ||
TOTAL CONSUMER DISCRETIONARY | 2,222,399 | ||
CONSUMER STAPLES - 12.7% | |||
Beverages - 3.1% | |||
PepsiCo, Inc. | 7,209 | 347,041 | |
The Coca-Cola Co. | 8,290 | 338,647 | |
| 685,688 | ||
Food & Staples Retailing - 3.8% | |||
Costco Wholesale Corp. (e) | 990 | 41,917 | |
CVS Caremark Corp. | 3,600 | 92,664 | |
Kroger Co. | 4,600 | 95,082 | |
Safeway, Inc. | 1,950 | 36,075 | |
Sysco Corp. | 500 | 10,750 | |
Wal-Mart Stores, Inc. | 10,100 | 497,324 | |
Walgreen Co. | 2,574 | 61,416 | |
| 835,228 | ||
Food Products - 0.5% | |||
Archer Daniels Midland Co. | 1,250 | 33,325 | |
General Mills, Inc. (e) | 1,650 | 86,592 | |
| 119,917 | ||
Household Products - 2.6% | |||
Church & Dwight Co., Inc. | 1,650 | 80,718 | |
Colgate-Palmolive Co. | 2,590 | 155,866 | |
Kimberly-Clark Corp. | 420 | 19,786 | |
Procter & Gamble Co. | 6,760 | 325,629 | |
| 581,999 | ||
Tobacco - 2.7% | |||
Altria Group, Inc. | 10,400 | 160,576 | |
Philip Morris International, Inc. | 12,700 | 425,069 | |
| 585,645 | ||
TOTAL CONSUMER STAPLES | 2,808,477 | ||
ENERGY - 8.2% | |||
Energy Equipment & Services - 3.6% | |||
Baker Hughes, Inc. (e) | 395 | 11,577 | |
Cameron International Corp. (a) | 3,010 | 58,033 | |
Dresser-Rand Group, Inc. (a) | 3,570 | 75,006 | |
ENSCO International, Inc. | 2,228 | 54,764 | |
FMC Technologies, Inc. (a) | 2,000 | 52,980 | |
Halliburton Co. | 5,561 | 90,700 | |
National Oilwell Varco, Inc. (a)(e) | 3,376 | 90,240 | |
Noble Corp. | 3,200 | 78,688 | |
Schlumberger Ltd. (NY Shares) | 5,662 | 215,496 | |
Tidewater, Inc. | 1,704 | 60,185 | |
| 787,669 | ||
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - 4.6% | |||
Alpha Natural Resources, Inc. (a) | 350 | $ 6,440 | |
Anadarko Petroleum Corp. | 575 | 20,096 | |
Apache Corp. | 300 | 17,727 | |
Chevron Corp. | 470 | 28,534 | |
ConocoPhillips | 595 | 22,223 | |
Devon Energy Corp. | 350 | 15,285 | |
EOG Resources, Inc. | 155 | 7,756 | |
Exxon Mobil Corp. | 5,800 | 393,820 | |
Foundation Coal Holdings, Inc. | 1,500 | 24,120 | |
Hess Corp. | 1,710 | 93,520 | |
Massey Energy Co. | 1,615 | 18,653 | |
McMoRan Exploration Co. (a) | 3,400 | 15,606 | |
Murphy Oil Corp. | 1,600 | 66,896 | |
Occidental Petroleum Corp. | 3,630 | 188,288 | |
Southwestern Energy Co. (a) | 800 | 23,016 | |
Valero Energy Corp. | 2,430 | 47,093 | |
W&T Offshore, Inc. (e) | 694 | 5,587 | |
Walter Industries, Inc. | 900 | 16,353 | |
Williams Companies, Inc. | 1,710 | 19,323 | |
| 1,030,336 | ||
TOTAL ENERGY | 1,818,005 | ||
FINANCIALS - 3.3% | |||
Capital Markets - 1.4% | |||
Charles Schwab Corp. | 2,300 | 29,233 | |
Eaton Vance Corp. (non-vtg.) | 2,400 | 41,520 | |
Federated Investors, Inc. Class B (non-vtg.) | 2,300 | 43,378 | |
Franklin Resources, Inc. | 206 | 9,435 | |
Investment Technology Group, Inc. (a) | 2,500 | 48,675 | |
Knight Capital Group, Inc. Class A (a)(e) | 2,250 | 39,578 | |
State Street Corp. (e) | 1,900 | 48,013 | |
T. Rowe Price Group, Inc. | 499 | 11,347 | |
TD Ameritrade Holding Corp. (a) | 2,200 | 26,114 | |
| 297,293 | ||
Consumer Finance - 0.2% | |||
American Express Co. | 2,591 | 31,247 | |
SLM Corp. (a)(e) | 2,650 | 12,190 | |
| 43,437 | ||
Diversified Financial Services - 0.1% | |||
NYSE Euronext | 1,700 | 28,696 | |
Insurance - 0.8% | |||
AFLAC, Inc. | 3,400 | 56,984 | |
Prudential Financial, Inc. | 898 | 14,736 | |
The Chubb Corp. | 1,265 | 49,386 | |
The Travelers Companies, Inc. | 1,640 | 59,286 | |
| 180,392 | ||
| |||
Shares | Value | ||
Real Estate Investment Trusts - 0.5% | |||
Annaly Capital Management, Inc. | 3,750 | $ 52,125 | |
Boston Properties, Inc. | 200 | 7,418 | |
Mack-Cali Realty Corp. | 1,000 | 17,080 | |
National Retail Properties, Inc. (e) | 850 | 12,215 | |
ProLogis Trust (e) | 2,045 | 11,841 | |
| 100,679 | ||
Real Estate Management & Development - 0.1% | |||
Jones Lang LaSalle, Inc. (e) | 1,116 | 22,231 | |
Thrifts & Mortgage Finance - 0.2% | |||
Hudson City Bancorp, Inc. | 4,300 | 44,591 | |
TOTAL FINANCIALS | 717,319 | ||
HEALTH CARE - 16.7% | |||
Biotechnology - 4.5% | |||
Amgen, Inc. (a) | 830 | 40,612 | |
Biogen Idec, Inc. (a) | 2,700 | 124,308 | |
Celgene Corp. (a) | 2,200 | 98,406 | |
Cephalon, Inc. (a)(e) | 1,510 | 99,041 | |
Genentech, Inc. (a) | 2,380 | 203,609 | |
Genzyme Corp. (a) | 1,975 | 120,337 | |
Gilead Sciences, Inc. (a) | 5,800 | 259,840 | |
OSI Pharmaceuticals, Inc. (a)(e) | 1,390 | 47,399 | |
| 993,552 | ||
Health Care Equipment & Supplies - 3.4% | |||
Baxter International, Inc. | 4,400 | 224,004 | |
Becton, Dickinson & Co. | 1,950 | 120,686 | |
Edwards Lifesciences Corp. (a) | 1,125 | 62,561 | |
Kinetic Concepts, Inc. (a)(e) | 2,500 | 54,450 | |
Medtronic, Inc. | 6,841 | 202,425 | |
St. Jude Medical, Inc. (a) | 500 | 16,580 | |
Zimmer Holdings, Inc. (a) | 1,700 | 59,534 | |
| 740,240 | ||
Health Care Providers & Services - 3.0% | |||
Aetna, Inc. | 1,500 | 35,805 | |
AmerisourceBergen Corp. | 1,775 | 56,374 | |
Express Scripts, Inc. (a) | 2,600 | 130,780 | |
Laboratory Corp. of America Holdings (a) | 1,554 | 85,486 | |
McKesson Corp. | 1,600 | 65,632 | |
Medco Health Solutions, Inc. (a) | 3,325 | 134,929 | |
UnitedHealth Group, Inc. | 3,700 | 72,705 | |
WellPoint, Inc. (a) | 2,200 | 74,624 | |
| 656,335 | ||
Life Sciences Tools & Services - 0.4% | |||
Life Technologies Corp. (a) | 3,280 | 95,612 | |
Pharmaceuticals - 5.4% | |||
Abbott Laboratories | 9,250 | 437,895 | |
Bristol-Myers Squibb Co. | 6,221 | 114,529 | |
Eli Lilly & Co. | 2,810 | 82,558 | |
Johnson & Johnson | 5,000 | 250,000 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Merck & Co., Inc. | 2,200 | $ 53,240 | |
Pfizer, Inc. | 2,165 | 26,651 | |
Schering-Plough Corp. | 9,163 | 159,345 | |
Wyeth | 1,920 | 78,374 | |
| 1,202,592 | ||
TOTAL HEALTH CARE | 3,688,331 | ||
INDUSTRIALS - 10.1% | |||
Aerospace & Defense - 3.8% | |||
General Dynamics Corp. | 1,250 | 54,775 | |
Goodrich Corp. | 1,310 | 43,413 | |
Honeywell International, Inc. | 3,250 | 87,198 | |
L-3 Communications Holdings, Inc. | 1,700 | 115,005 | |
Lockheed Martin Corp. | 2,514 | 158,659 | |
Northrop Grumman Corp. | 1,000 | 37,360 | |
Precision Castparts Corp. | 567 | 31,429 | |
Raytheon Co. | 2,310 | 92,331 | |
The Boeing Co. | 3,208 | 100,860 | |
TransDigm Group, Inc. (a)(e) | 1,250 | 44,175 | |
United Technologies Corp. | 2,030 | 82,885 | |
| 848,090 | ||
Air Freight & Logistics - 0.7% | |||
C.H. Robinson Worldwide, Inc. | 700 | 28,966 | |
United Parcel Service, Inc. Class B | 2,880 | 118,598 | |
| 147,564 | ||
Building Products - 0.1% | |||
Lennox International, Inc. | 705 | 18,260 | |
Commercial Services & Supplies - 0.1% | |||
Covanta Holding Corp. (a) | 1,486 | 22,632 | |
Construction & Engineering - 1.0% | |||
EMCOR Group, Inc. (a) | 4,365 | 67,265 | |
Fluor Corp. | 1,860 | 61,845 | |
Foster Wheeler AG (a) | 2,150 | 32,336 | |
KBR, Inc. | 789 | 9,941 | |
Shaw Group, Inc. (a) | 2,300 | 53,682 | |
| 225,069 | ||
Electrical Equipment - 1.0% | |||
Acuity Brands, Inc. (e) | 2,093 | 47,972 | |
Emerson Electric Co. | 5,548 | 148,409 | |
First Solar, Inc. (a)(e) | 100 | 10,574 | |
GrafTech International Ltd. (a) | 4,000 | 22,600 | |
| 229,555 | ||
Industrial Conglomerates - 0.7% | |||
3M Co. | 2,760 | 125,470 | |
McDermott International, Inc. (a) | 2,534 | 29,876 | |
| 155,346 | ||
| |||
Shares | Value | ||
Machinery - 1.0% | |||
Actuant Corp. Class A | 1,200 | $ 12,348 | |
Bucyrus International, Inc. Class A | 1,400 | 17,388 | |
Caterpillar, Inc. | 2,558 | 62,952 | |
Deere & Co. | 650 | 17,869 | |
Flowserve Corp. | 815 | 41,133 | |
Gardner Denver, Inc. (a) | 1,355 | 25,637 | |
Joy Global, Inc. | 1,719 | 30,014 | |
Manitowoc Co., Inc. | 3,640 | 14,924 | |
| 222,265 | ||
Marine - 0.2% | |||
Kirby Corp. (a) | 2,000 | 44,080 | |
Road & Rail - 1.5% | |||
Burlington Northern Santa Fe Corp. | 1,250 | 73,463 | |
CSX Corp. | 1,680 | 41,462 | |
Norfolk Southern Corp. | 2,505 | 79,459 | |
Union Pacific Corp. | 3,500 | 131,320 | |
| 325,704 | ||
TOTAL INDUSTRIALS | 2,238,565 | ||
INFORMATION TECHNOLOGY - 30.0% | |||
Communications Equipment - 4.4% | |||
Adtran, Inc. | 1,660 | 23,970 | |
Cisco Systems, Inc. (a) | 35,200 | 512,864 | |
Corning, Inc. | 4,404 | 46,462 | |
Harris Corp. | 1,900 | 70,832 | |
InterDigital, Inc. (a) | 1,500 | 44,070 | |
QUALCOMM, Inc. | 8,540 | 285,492 | |
| 983,690 | ||
Computers & Peripherals - 9.0% | |||
Apple, Inc. (a) | 5,340 | 476,915 | |
Dell, Inc. (a) | 6,200 | 52,886 | |
EMC Corp. (a)(e) | 14,010 | 147,105 | |
Hewlett-Packard Co. | 15,230 | 442,127 | |
International Business Machines Corp. | 8,230 | 757,398 | |
NetApp, Inc. (a) | 4,080 | 54,835 | |
Teradata Corp. (a) | 3,660 | 56,584 | |
| 1,987,850 | ||
Electronic Equipment & Components - 0.3% | |||
Mettler-Toledo International, Inc. (a) | 1,300 | 69,303 | |
Internet Software & Services - 3.6% | |||
Akamai Technologies, Inc. (a) | 3,000 | 54,270 | |
eBay, Inc. (a) | 8,000 | 86,960 | |
Google, Inc. Class A (sub. vtg.) (a) | 1,450 | 490,086 | |
Sohu.com, Inc. (a) | 1,200 | 59,280 | |
Yahoo!, Inc. (a)(e) | 7,500 | 99,225 | |
| 789,821 | ||
IT Services - 3.1% | |||
Accenture Ltd. Class A | 4,785 | 139,674 | |
Alliance Data Systems Corp. (a)(e) | 1,480 | 43,808 | |
Automatic Data Processing, Inc. | 1,750 | 59,763 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Fiserv, Inc. (a) | 1,410 | $ 45,994 | |
Lender Processing Services, Inc. | 1,400 | 36,666 | |
MasterCard, Inc. Class A (e) | 625 | 98,769 | |
The Western Union Co. | 8,620 | 96,199 | |
Total System Services, Inc. | 1,129 | 14,203 | |
Visa, Inc. | 2,515 | 142,626 | |
| 677,702 | ||
Semiconductors & Semiconductor Equipment - 3.1% | |||
Amkor Technology, Inc. (a) | 6,610 | 11,303 | |
Cree, Inc. (a) | 2,500 | 49,100 | |
Intel Corp. (e) | 27,098 | 345,229 | |
Linear Technology Corp. (e) | 2,620 | 57,116 | |
Marvell Technology Group Ltd. (a) | 9,630 | 72,321 | |
National Semiconductor Corp. | 6,370 | 69,433 | |
Texas Instruments, Inc. | 5,600 | 80,360 | |
| 684,862 | ||
Software - 6.5% | |||
Activision Blizzard, Inc. (a) | 3,000 | 30,090 | |
Adobe Systems, Inc. (a)(e) | 5,925 | 98,948 | |
BMC Software, Inc. (a) | 3,250 | 96,298 | |
CA, Inc. | 2,975 | 50,426 | |
McAfee, Inc. (a) | 4,070 | 113,757 | |
Microsoft Corp. | 44,300 | 715,445 | |
Oracle Corp. (a) | 19,158 | 297,715 | |
Solera Holdings, Inc. (a) | 870 | 18,087 | |
Sybase, Inc. (a) | 1,000 | 27,180 | |
| 1,447,946 | ||
TOTAL INFORMATION TECHNOLOGY | 6,641,174 | ||
MATERIALS - 3.7% | |||
Chemicals - 2.4% | |||
Airgas, Inc. | 2,050 | 63,120 | |
Celanese Corp. Class A | 2,750 | 23,485 | |
Monsanto Co. | 3,830 | 292,114 | |
Praxair, Inc. | 1,000 | 56,750 | |
The Mosaic Co. | 2,000 | 86,100 | |
| 521,569 | ||
Containers & Packaging - 0.6% | |||
Crown Holdings, Inc. (a) | 1,910 | 40,263 | |
Greif, Inc. Class A | 1,050 | 32,288 | |
| |||
Shares | Value | ||
Owens-Illinois, Inc. (a) | 2,041 | $ 31,472 | |
Silgan Holdings, Inc. | 750 | 36,795 | |
| 140,818 | ||
Metals & Mining - 0.7% | |||
Cliffs Natural Resources, Inc. | 150 | 2,315 | |
Freeport-McMoRan Copper & Gold, Inc. Class B (e) | 780 | 23,728 | |
Newmont Mining Corp. | 775 | 32,263 | |
Nucor Corp. | 1,760 | 59,224 | |
Reliance Steel & Aluminum Co. | 675 | 16,058 | |
Southern Copper Corp. | 1,710 | 23,444 | |
| 157,032 | ||
TOTAL MATERIALS | 819,419 | ||
TELECOMMUNICATION SERVICES - 1.5% | |||
Diversified Telecommunication Services - 1.0% | |||
CenturyTel, Inc. (e) | 1,680 | 44,234 | |
Embarq Corp. | 1,575 | 55,078 | |
Frontier Communications Corp. | 6,755 | 48,636 | |
Windstream Corp. | 10,510 | 78,405 | |
| 226,353 | ||
Wireless Telecommunication Services - 0.5% | |||
American Tower Corp. Class A (a) | 3,300 | 96,096 | |
TOTAL TELECOMMUNICATION SERVICES | 322,449 | ||
UTILITIES - 1.4% | |||
Electric Utilities - 0.7% | |||
DPL, Inc. | 3,000 | 60,300 | |
Edison International | 1,000 | 27,220 | |
Exelon Corp. | 908 | 42,876 | |
Pepco Holdings, Inc. | 1,850 | 27,750 | |
| 158,146 | ||
Gas Utilities - 0.1% | |||
Energen Corp. | 815 | 21,842 | |
Independent Power Producers & Energy Traders - 0.1% | |||
Constellation Energy Group, Inc. | 1,250 | 24,700 | |
Multi-Utilities - 0.5% | |||
Dominion Resources, Inc. | 1,095 | 33,047 | |
Public Service Enterprise Group, Inc. | 2,915 | 79,550 | |
| 112,597 | ||
TOTAL UTILITIES | 317,285 | ||
TOTAL COMMON STOCKS (Cost $33,528,321) | 21,593,423 |
U.S. Treasury Obligations - 0.8% | ||||
| Principal Amount | Value | ||
U.S. Treasury Bills, yield at date of purchase 0.74% to 1.22% 4/2/09 to 5/7/09 (f) | $ 180,000 | $ 179,957 |
Money Market Funds - 9.8% | |||
Shares |
| ||
Dreyfus Cash Management Institutional Shares, 1.85% (c) | 220,724 | 220,724 | |
Fidelity Securities Lending Cash Central Fund, 0.66% (b)(d) | 1,953,899 | 1,953,899 | |
TOTAL MONEY MARKET FUNDS (Cost $2,174,623) | 2,174,623 |
TOTAL INVESTMENT PORTFOLIO - 108.3% (Cost $35,882,721) | 23,948,003 |
NET OTHER ASSETS - (8.3)% | (1,843,926) | ||
NET ASSETS - 100% | $ 22,104,077 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |||
Purchased | |||||
Equity Index Contracts | |||||
14 CME E-mini S&P 500 Index Contracts | March 2009 | $ 513,940 | $ (59,188) |
|
The face value of futures purchased as a percentage of net assets - 2.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) The rate quoted is the annualized seven-day yield of the fund at period end. |
(d) Investment made with cash collateral received from securities on loan. |
(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 the period end, the value of securities pledged amounted to $179,957. |
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 Securities Lending Cash Central Fund | $ 1,938 |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 23,948,003 | $ 23,768,046 | $ 179,957 | $ - |
Other Financial Instruments * | $ (59,188) | $ (59,188) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $3,603,801 of which $298,456 and $3,305,345 will expire on February 29, 2016 and February 28, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $1,528,392 of losses recognized during the period November 1, 2008 to February 28, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Growth Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,887,550) - See accompanying schedule: Unaffiliated issuers (cost $33,928,822) | $ 21,994,104 |
|
Fidelity Central Funds (cost $1,953,899) | 1,953,899 |
|
Total Investments (cost $35,882,721) |
| $ 23,948,003 |
Receivable for investments sold | 131,526 | |
Receivable for fund shares sold | 78,178 | |
Dividends receivable | 49,808 | |
Interest receivable | 661 | |
Distributions receivable from Fidelity Central Funds | 471 | |
Total assets | 24,208,647 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 24,414 | |
Payable for fund shares redeemed | 104,655 | |
Accrued management fee | 6,117 | |
Payable for daily variation on futures contracts | 12,460 | |
Other affiliated payables | 3,025 | |
Collateral on securities loaned, at value | 1,953,899 | |
Total liabilities | 2,104,570 | |
|
|
|
Net Assets | $ 22,104,077 | |
Net Assets consist of: |
| |
Paid in capital | $ 39,158,648 | |
Undistributed net investment income | 49,506 | |
Accumulated undistributed net realized gain (loss) on investments | (5,110,171) | |
Net unrealized appreciation (depreciation) on investments | (11,993,906) | |
Net Assets, for 3,944,972 shares outstanding | $ 22,104,077 | |
Net Asset Value, offering price and redemption price per share ($22,104,077 ÷ 3,944,972 shares) | $ 5.60 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 470,546 |
Interest |
| 7,401 |
Income from Fidelity Central Funds |
| 1,938 |
Total income |
| 479,885 |
|
|
|
Expenses | ||
Management fee | $ 87,938 | |
Transfer agent fees | 45,293 | |
Independent trustees' compensation | 2,648 | |
Total expenses | 135,879 | |
Net investment income (loss) | 344,006 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (4,100,660) | |
Futures contracts | (261,974) | |
Total net realized gain (loss) |
| (4,362,634) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,674,784) | |
Futures contracts | (59,188) | |
Total change in net unrealized appreciation (depreciation) |
| (8,733,972) |
Net gain (loss) | (13,096,606) | |
Net increase (decrease) in net assets resulting from operations | $ (12,752,600) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 344,006 | $ 220,123 |
Net realized gain (loss) | (4,362,634) | (747,701) |
Change in net unrealized appreciation (depreciation) | (8,733,972) | (3,259,934) |
Net increase (decrease) in net assets resulting from operations | (12,752,600) | (3,787,512) |
Distributions to shareholders from net investment income | (325,592) | (187,061) |
Share transactions | 19,969,543 | 52,976,622 |
Reinvestment of distributions | 301,227 | 176,444 |
Cost of shares redeemed | (20,030,860) | (14,236,134) |
Net increase (decrease) in net assets resulting from share transactions | 239,910 | 38,916,932 |
Total increase (decrease) in net assets | (12,838,282) | 34,942,359 |
|
|
|
Net Assets | ||
Beginning of period | 34,942,359 | - |
End of period (including undistributed net investment income of $49,506 and undistributed net investment income of $33,062, respectively) | $ 22,104,077 | $ 34,942,359 |
Other Information Shares | ||
Sold | 2,718,349 | 5,174,309 |
Issued in reinvestment of distributions | 46,905 | 17,081 |
Redeemed | (2,598,700) | (1,412,972) |
Net increase (decrease) | 166,554 | 3,778,418 |
Financial Highlights
Years ended February 28, | 2009 | 2008 F, H |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.25 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) C | .09 | .08 |
Net realized and unrealized gain (loss) | (3.65) | (.78) |
Total from investment operations | (3.56) | (.70) |
Distributions from net investment income | (.09) | (.05) |
Net asset value, end of period | $ 5.60 | $ 9.25 |
Total Return B | (38.61)% | (7.05)% |
Ratios to Average Net Assets D, G |
|
|
Expenses before reductions | .45% | .45% A |
Expenses net of fee waivers, if any | .45% | .45% A |
Expenses net of all reductions | .45% | .45% A |
Net investment income (loss) | 1.14% | .89% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 22,104 | $ 34,942 |
Portfolio turnover rate E | 86% | 36% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period April 19, 2007 (commencement of operations) to February 29, 2008.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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.
H For the year ended February 29.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
Large Cap Value Enhanced Index Fund | -45.82% | -32.77% |
A From April 19, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Large Cap Value Enhanced Index Fund on April 19, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 1000 Value Index performed over the same period.
Annual Report
Fidelity Large Cap Value Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity markets took it squarely on the chin during the 12 months ending February 28, 2009, battered by global recessionary fears, drum-tight credit markets and the rapid flight of capital away from risk and toward the investment sidelines. Stocks had performed reasonably well up until late last summer, in spite of high energy costs and slowing global economic growth. But beginning in September 2008, a succession of large financial institutions either collapsed, or came close to failing, as they struggled under the weight of toxic, asset-backed securities, which sent the equity markets into a turbulent downward spiral. Even as the federal government began a series of aggressive interventions to rescue the troubled financial services industry and to shore up deteriorating economic conditions, investors remained skittish and the equity markets' sell-off continued. The Standard & Poor's 500SM Index fell 43.32% for the year overall and lost more than 17% in value during the December-February time frame alone. All 10 of the S&P 500®'s market sectors landed deep in negative territory for the 12-month span. Meanwhile, the blue-chip Dow Jones Industrial AverageSM fell by a comparable 40.58% mark, and the small-cap-oriented Russell 2000® Index declined 42.38%. Elsewhere, the technology-heavy NASDAQ Composite® Index dropped 38.77%.
Comments from Jeffrey Adams, who oversees Fidelity® Large Cap Value Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: For the year ending February 28, 2009, the fund declined 45.82%, compared with a loss of 47.35% for the Russell 1000® Value Index. A combination of favorable security selection and an underweighting in the poor-performing financials sector was very helpful. Specifically, stock picking was positive among diversified financials - making up for weaker performance in real estate - while having less exposure to banks contributed as well. Good security and sector selection in consumer discretionary boosted results, as did favorable stock positioning in energy. In contrast, our stock selection was weaker in health care and - within the industrials sector - capital goods. The fund's top contributor was electronic trading company Knight Capital Group, whose trading revenues were boosted by active financial markets. Restaurant giant McDonald's turned in solid financial results, while General Mills generated favorable quarterly earnings on higher demand for its packaged-food products. Also outperforming was for-profit education company ITT Educational Services. On the negative side, an out-of-benchmark position in construction and engineering company Foster Wheeler hampered performance, as the company's shares steadily declined beginning last summer. Our underexposure to medical insurance company UnitedHealth Group was another source of underperformance, while integrated energy company Hess - which was not in the portfolio at period end - detracted as well.
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.
Portfolio
Fidelity Large Cap Value Enhanced Index Fund
Investment Changes (Unaudited)
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 8.5 | 5.8 |
AT&T, Inc. | 4.0 | 3.0 |
Chevron Corp. | 3.6 | 3.2 |
Johnson & Johnson | 3.0 | 2.3 |
Procter & Gamble Co. | 2.9 | 2.0 |
Pfizer, Inc. | 2.8 | 2.5 |
General Electric Co. | 2.5 | 4.2 |
Verizon Communications, Inc. | 2.4 | 2.0 |
JPMorgan Chase & Co. | 2.4 | 2.1 |
Amgen, Inc. | 1.8 | 0.9 |
| 33.9 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Financials | 18.3 | 25.1 |
Energy | 18.0 | 15.6 |
Health Care | 15.3 | 11.7 |
Consumer Staples | 11.5 | 8.4 |
Consumer Discretionary | 8.0 | 7.6 |
Telecommunication Services | 7.8 | 5.8 |
Utilities | 7.5 | 6.1 |
Industrials | 6.9 | 9.3 |
Information Technology | 2.8 | 3.2 |
Materials | 2.4 | 3.9 |
Annual Report
Fidelity Large Cap Value Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.0% | |||
Diversified Consumer Services - 0.8% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 700 | $ 50,750 | |
ITT Educational Services, Inc. (a) | 926 | 105,101 | |
| 155,851 | ||
Hotels, Restaurants & Leisure - 0.7% | |||
Interval Leisure Group, Inc. (a) | 555 | 2,220 | |
McDonald's Corp. | 2,673 | 139,664 | |
| 141,884 | ||
Internet & Catalog Retail - 0.0% | |||
HSN, Inc. (a) | 555 | 2,370 | |
Media - 3.7% | |||
CBS Corp. Class B | 3,155 | 13,472 | |
Comcast Corp. Class A (d) | 11,752 | 153,481 | |
DISH Network Corp. Class A (a) | 5,442 | 61,223 | |
Gannett Co., Inc. (d) | 4,173 | 13,521 | |
Liberty Global, Inc. Class A (a)(d) | 1,000 | 12,270 | |
Liberty Media Corp. - Entertainment Class A (a) | 5,296 | 91,727 | |
Meredith Corp. | 2,889 | 37,124 | |
News Corp. Class A | 7,771 | 43,207 | |
The Walt Disney Co. (d) | 8,609 | 144,373 | |
Time Warner, Inc. | 21,433 | 163,534 | |
| 733,932 | ||
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 2,219 | 86,142 | |
Macy's, Inc. (d) | 2,600 | 20,462 | |
| 106,604 | ||
Specialty Retail - 2.2% | |||
AutoZone, Inc. (a)(d) | 304 | 43,238 | |
Gap, Inc. (d) | 7,509 | 81,022 | |
Home Depot, Inc. | 8,169 | 170,650 | |
Lowe's Companies, Inc. | 6,205 | 98,287 | |
RadioShack Corp. | 3,349 | 24,548 | |
Rent-A-Center, Inc. (a) | 1,900 | 33,288 | |
| 451,033 | ||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Carter's, Inc. (a) | 1,400 | 22,834 | |
TOTAL CONSUMER DISCRETIONARY | 1,614,508 | ||
CONSUMER STAPLES - 11.5% | |||
Beverages - 1.4% | |||
Coca-Cola Enterprises, Inc. | 7,352 | 84,401 | |
PepsiCo, Inc. | 562 | 27,055 | |
The Coca-Cola Co. | 4,240 | 173,204 | |
| 284,660 | ||
Food & Staples Retailing - 2.2% | |||
BJ's Wholesale Club, Inc. (a) | 2,382 | 71,174 | |
CVS Caremark Corp. | 3,144 | 80,927 | |
Kroger Co. | 4,060 | 83,920 | |
| |||
Shares | Value | ||
Safeway, Inc. | 2,745 | $ 50,783 | |
Wal-Mart Stores, Inc. | 3,144 | 154,811 | |
| 441,615 | ||
Food Products - 3.6% | |||
Archer Daniels Midland Co. | 6,116 | 163,053 | |
Dean Foods Co. (a) | 2,300 | 47,035 | |
General Mills, Inc. (d) | 3,723 | 195,383 | |
H.J. Heinz Co. | 2,908 | 95,004 | |
Hershey Co. | 1,564 | 52,691 | |
Kraft Foods, Inc. Class A | 7,120 | 162,194 | |
| 715,360 | ||
Household Products - 3.5% | |||
Energizer Holdings, Inc. (a) | 1,100 | 46,409 | |
Kimberly-Clark Corp. | 1,491 | 70,241 | |
Procter & Gamble Co. | 12,252 | 590,179 | |
| 706,829 | ||
Tobacco - 0.8% | |||
Altria Group, Inc. | 3,141 | 48,497 | |
Lorillard, Inc. | 508 | 29,688 | |
Reynolds American, Inc. | 2,502 | 84,017 | |
| 162,202 | ||
TOTAL CONSUMER STAPLES | 2,310,666 | ||
ENERGY - 18.0% | |||
Energy Equipment & Services - 0.3% | |||
ENSCO International, Inc. | 1,983 | 48,742 | |
Tidewater, Inc. | 529 | 18,684 | |
| 67,426 | ||
Oil, Gas & Consumable Fuels - 17.7% | |||
Anadarko Petroleum Corp. | 1,900 | 66,405 | |
Apache Corp. | 2,017 | 119,185 | |
Chevron Corp. | 12,112 | 735,320 | |
ConocoPhillips | 8,962 | 334,731 | |
Devon Energy Corp. | 1,820 | 79,479 | |
Encore Acquisition Co. (a) | 1,328 | 26,666 | |
Exxon Mobil Corp. | 25,239 | 1,713,723 | |
Marathon Oil Corp. | 4,113 | 95,710 | |
McMoRan Exploration Co. (a) | 2,500 | 11,475 | |
Murphy Oil Corp. | 500 | 20,905 | |
Noble Energy, Inc. | 906 | 41,259 | |
Spectra Energy Corp. | 3,900 | 50,700 | |
Sunoco, Inc. | 2,665 | 89,144 | |
Valero Energy Corp. | 5,544 | 107,443 | |
World Fuel Services Corp. (d) | 1,163 | 33,739 | |
XTO Energy, Inc. (d) | 1,115 | 35,301 | |
| 3,561,185 | ||
TOTAL ENERGY | 3,628,611 | ||
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - 18.3% | |||
Capital Markets - 3.5% | |||
Apollo Investment Corp. | 4,000 | $ 16,520 | |
Bank of New York Mellon Corp. | 5,895 | 130,692 | |
Goldman Sachs Group, Inc. | 2,138 | 194,729 | |
Knight Capital Group, Inc. Class A (a)(d) | 8,381 | 147,422 | |
Morgan Stanley | 5,517 | 107,802 | |
Raymond James Financial, Inc. | 1,500 | 20,940 | |
State Street Corp. (d) | 3,406 | 86,070 | |
| 704,175 | ||
Commercial Banks - 3.2% | |||
Bank of Hawaii Corp. | 1,333 | 42,709 | |
BB&T Corp. | 4,217 | 68,020 | |
PNC Financial Services Group, Inc. (d) | 2,633 | 71,986 | |
Prosperity Bancshares, Inc. (d) | 2,000 | 51,040 | |
U.S. Bancorp, Delaware | 9,948 | 142,356 | |
Wells Fargo & Co. | 22,925 | 277,393 | |
| 653,504 | ||
Consumer Finance - 0.0% | |||
Capital One Financial Corp. | 572 | 6,893 | |
Diversified Financial Services - 3.4% | |||
Bank of America Corp. | 37,475 | 148,026 | |
Citigroup, Inc. | 26,018 | 39,027 | |
JPMorgan Chase & Co. | 20,911 | 477,816 | |
The NASDAQ Stock Market, Inc. (a) | 1,468 | 30,681 | |
| 695,550 | ||
Insurance - 5.2% | |||
ACE Ltd. | 2,576 | 94,050 | |
AFLAC, Inc. | 2,712 | 45,453 | |
Allstate Corp. | 2,099 | 35,326 | |
American Financial Group, Inc. (d) | 2,948 | 45,871 | |
Aon Corp. | 1,617 | 61,834 | |
Arch Capital Group Ltd. (a) | 1,686 | 91,044 | |
Aspen Insurance Holdings Ltd. | 4,628 | 100,844 | |
Axis Capital Holdings Ltd. | 4,022 | 90,012 | |
Hartford Financial Services Group, Inc. | 1,169 | 7,131 | |
Marsh & McLennan Companies, Inc. | 1,421 | 25,479 | |
MetLife, Inc. | 2,220 | 40,981 | |
Platinum Underwriters Holdings Ltd. | 2,300 | 64,492 | |
Prudential Financial, Inc. | 1,058 | 17,362 | |
The Chubb Corp. | 1,347 | 52,587 | |
The Travelers Companies, Inc. | 3,636 | 131,441 | |
Transatlantic Holdings, Inc. | 1,923 | 57,825 | |
Unum Group | 7,527 | 76,625 | |
| 1,038,357 | ||
Real Estate Investment Trusts - 2.6% | |||
Annaly Capital Management, Inc. | 5,489 | 76,297 | |
Brandywine Realty Trust (SBI) (d) | 9,600 | 45,312 | |
CBL & Associates Properties, Inc. | 4,619 | 14,319 | |
Entertainment Properties Trust (SBI) | 1,151 | 17,161 | |
Equity Residential (SBI) | 506 | 8,906 | |
| |||
Shares | Value | ||
HCP, Inc. (d) | 1,200 | $ 21,924 | |
Hospitality Properties Trust (SBI) | 3,986 | 45,440 | |
Host Hotels & Resorts, Inc. | 11,427 | 42,280 | |
HRPT Properties Trust (SBI) | 21,412 | 69,161 | |
Mack-Cali Realty Corp. | 1,989 | 33,972 | |
ProLogis Trust (d) | 6,387 | 36,981 | |
Public Storage | 705 | 39,113 | |
SL Green Realty Corp. (d) | 1,911 | 22,206 | |
The Macerich Co. (d) | 2,139 | 24,427 | |
Vornado Realty Trust (d) | 791 | 25,889 | |
| 523,388 | ||
Thrifts & Mortgage Finance - 0.4% | |||
Hudson City Bancorp, Inc. | 5,586 | 57,927 | |
New York Community Bancorp, Inc. (d) | 1,953 | 19,237 | |
| 77,164 | ||
TOTAL FINANCIALS | 3,699,031 | ||
HEALTH CARE - 15.3% | |||
Biotechnology - 1.8% | |||
Amgen, Inc. (a) | 7,538 | 368,834 | |
Health Care Equipment & Supplies - 0.7% | |||
Boston Scientific Corp. (a) | 10,659 | 74,826 | |
Covidien Ltd. | 1,753 | 55,518 | |
| 130,344 | ||
Health Care Providers & Services - 2.7% | |||
HealthSouth Corp. (a)(d) | 5,910 | 46,394 | |
LifePoint Hospitals, Inc. (a) | 2,602 | 54,694 | |
Lincare Holdings, Inc. (a) | 1,892 | 39,864 | |
Omnicare, Inc. | 2,743 | 71,126 | |
Owens & Minor, Inc. | 1,196 | 40,317 | |
Quest Diagnostics, Inc. | 1,033 | 47,342 | |
UnitedHealth Group, Inc. | 3,725 | 73,196 | |
WellPoint, Inc. (a) | 4,809 | 163,121 | |
| 536,054 | ||
Life Sciences Tools & Services - 0.3% | |||
Thermo Fisher Scientific, Inc. (a) | 1,660 | 60,192 | |
Pharmaceuticals - 9.8% | |||
Eli Lilly & Co. | 5,448 | 160,062 | |
Forest Laboratories, Inc. (a) | 1,649 | 35,355 | |
Johnson & Johnson | 12,171 | 608,550 | |
King Pharmaceuticals, Inc. (a) | 7,584 | 55,667 | |
Merck & Co., Inc. | 8,974 | 217,171 | |
Pfizer, Inc. | 45,850 | 564,414 | |
Watson Pharmaceuticals, Inc. (a) | 700 | 19,789 | |
Wyeth | 7,914 | 323,049 | |
| 1,984,057 | ||
TOTAL HEALTH CARE | 3,079,481 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - 6.9% | |||
Aerospace & Defense - 2.4% | |||
General Dynamics Corp. | 3,660 | $ 160,381 | |
L-3 Communications Holdings, Inc. | 1,029 | 69,612 | |
Northrop Grumman Corp. | 2,367 | 88,431 | |
Raytheon Co. | 1,845 | 73,745 | |
United Technologies Corp. | 2,222 | 90,724 | |
| 482,893 | ||
Air Freight & Logistics - 0.4% | |||
FedEx Corp. | 1,739 | 75,142 | |
Airlines - 0.2% | |||
Delta Air Lines, Inc. (a)(d) | 2,511 | 12,630 | |
Southwest Airlines Co. | 6,179 | 36,394 | |
| 49,024 | ||
Commercial Services & Supplies - 0.2% | |||
Republic Services, Inc. | 1,132 | 22,527 | |
Waste Management, Inc. | 900 | 24,300 | |
| 46,827 | ||
Construction & Engineering - 0.5% | |||
Foster Wheeler AG (a) | 3,627 | 54,550 | |
Shaw Group, Inc. (a) | 2,000 | 46,680 | |
| 101,230 | ||
Industrial Conglomerates - 2.5% | |||
General Electric Co. | 58,513 | 497,946 | |
Machinery - 0.2% | |||
AGCO Corp. (a) | 1,100 | 18,854 | |
Illinois Tool Works, Inc. | 715 | 19,877 | |
| 38,731 | ||
Road & Rail - 0.4% | |||
CSX Corp. | 589 | 14,537 | |
Norfolk Southern Corp. | 2,116 | 67,120 | |
| 81,657 | ||
Trading Companies & Distributors - 0.1% | |||
United Rentals, Inc. (a) | 3,821 | 15,475 | |
TOTAL INDUSTRIALS | 1,388,925 | ||
INFORMATION TECHNOLOGY - 2.8% | |||
Communications Equipment - 0.5% | |||
3Com Corp. (a) | 12,000 | 26,520 | |
Harris Corp. | 1,742 | 64,942 | |
| 91,462 | ||
Computers & Peripherals - 0.9% | |||
EMC Corp. (a)(d) | 6,600 | 69,300 | |
Hewlett-Packard Co. | 3,229 | 93,738 | |
QLogic Corp. (a)(d) | 1,500 | 13,830 | |
| 176,868 | ||
IT Services - 0.6% | |||
Alliance Data Systems Corp. (a)(d) | 1,410 | 41,736 | |
Broadridge Financial Solutions, Inc. | 1,500 | 23,970 | |
| |||
Shares | Value | ||
Metavante Holding Co. (a) | 1,568 | $ 26,358 | |
The Western Union Co. | 2,989 | 33,357 | |
| 125,421 | ||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Intel Corp. | 1,900 | 24,206 | |
Software - 0.7% | |||
CA, Inc. | 4,839 | 82,021 | |
Symantec Corp. (a) | 5,031 | 69,579 | |
| 151,600 | ||
TOTAL INFORMATION TECHNOLOGY | 569,557 | ||
MATERIALS - 2.4% | |||
Chemicals - 1.8% | |||
Celanese Corp. Class A | 2,049 | 17,498 | |
Dow Chemical Co. | 2,596 | 18,587 | |
E.I. du Pont de Nemours & Co. | 4,277 | 80,237 | |
FMC Corp. (d) | 1,749 | 70,712 | |
Monsanto Co. | 651 | 49,652 | |
Terra Industries, Inc. | 3,600 | 92,844 | |
The Scotts Miracle-Gro Co. Class A (d) | 1,000 | 27,930 | |
| 357,460 | ||
Metals & Mining - 0.6% | |||
Compass Minerals International, Inc. | 190 | 9,922 | |
Freeport-McMoRan Copper & Gold, Inc. Class B (d) | 1,607 | 48,885 | |
Nucor Corp. | 650 | 21,873 | |
Reliance Steel & Aluminum Co. | 1,507 | 35,852 | |
| 116,532 | ||
Paper & Forest Products - 0.0% | |||
International Paper Co. | 2,511 | 14,288 | |
TOTAL MATERIALS | 488,280 | ||
TELECOMMUNICATION SERVICES - 7.8% | |||
Diversified Telecommunication Services - 7.5% | |||
AT&T, Inc. | 33,793 | 803,260 | |
CenturyTel, Inc. (d) | 4,524 | 119,117 | |
Embarq Corp. | 1,176 | 41,125 | |
Frontier Communications Corp. | 9,062 | 65,246 | |
Verizon Communications, Inc. | 16,999 | 484,981 | |
| 1,513,729 | ||
Wireless Telecommunication Services - 0.3% | |||
Sprint Nextel Corp. (a) | 15,755 | 51,834 | |
TOTAL TELECOMMUNICATION SERVICES | 1,565,563 | ||
UTILITIES - 7.5% | |||
Electric Utilities - 4.0% | |||
American Electric Power Co., Inc. | 2,326 | 65,244 | |
DPL, Inc. | 5,212 | 104,761 | |
Duke Energy Corp. | 7,745 | 104,325 | |
Edison International | 4,265 | 116,093 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Electric Utilities - continued | |||
Exelon Corp. | 1,548 | $ 73,097 | |
FirstEnergy Corp. | 1,783 | 75,884 | |
FPL Group, Inc. | 2,388 | 108,248 | |
Progress Energy, Inc. | 1,046 | 37,049 | |
Southern Co. | 3,804 | 115,299 | |
| 800,000 | ||
Gas Utilities - 0.3% | |||
Energen Corp. | 2,090 | 56,012 | |
Independent Power Producers & Energy Traders - 0.5% | |||
AES Corp. (a) | 8,332 | 52,492 | |
NRG Energy, Inc. (a) | 2,713 | 51,276 | |
| 103,768 | ||
Multi-Utilities - 2.7% | |||
Alliant Energy Corp. | 1,764 | 40,801 | |
Consolidated Edison, Inc. | 1,681 | 60,869 | |
Dominion Resources, Inc. | 5,507 | 166,201 | |
DTE Energy Co. | 1,320 | 35,336 | |
PG&E Corp. | 2,074 | 79,268 | |
Public Service Enterprise Group, Inc. | 1,351 | 36,869 | |
Sempra Energy | 3,179 | 132,151 | |
| 551,495 | ||
TOTAL UTILITIES | 1,511,275 | ||
TOTAL COMMON STOCKS (Cost $34,362,911) | 19,855,897 |
U.S. Treasury Obligations - 0.9% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.29% to 1.51% 3/26/09 to 7/30/09 (e) | $ 180,000 | 179,904 |
Money Market Funds - 8.9% | |||
Shares | Value | ||
Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c) | 1,804,600 | $ 1,804,600 |
TOTAL INVESTMENT PORTFOLIO - 108.3% (Cost $36,347,285) | 21,840,401 |
NET OTHER ASSETS - (8.3)% | (1,678,609) | ||
NET ASSETS - 100% | $ 20,161,792 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |||
Purchased | |||||
Equity Index Contracts | |||||
7 CME E-mini S&P 500 Index Contracts | March 2009 | $ 256,970 | $ (37,756) |
|
The face value of futures purchased as a percentage of net assets - 1.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $179,904. |
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 Securities Lending Cash Central Fund | $ 6,821 |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 21,840,401 | $ 21,660,497 | $ 179,904 | $ - |
Other Financial Instruments* | $ (37,756) | $ (37,756) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $3,138,587 of which $514,035 and $2,624,552 will expire on February 29, 2016 and February 28, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $2,309,119 of losses recognized during the period November 1, 2008 to February 28, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $1,717,185) - See accompanying schedule: Unaffiliated issuers (cost $34,542,685) | $ 20,035,801 |
|
Fidelity Central Funds | 1,804,600 |
|
Total Investments (cost $36,347,285) |
| $ 21,840,401 |
Receivable for investments sold | 26,617 | |
Receivable for fund shares sold | 106,095 | |
Dividends receivable | 107,221 | |
Interest receivable | 123 | |
Distributions receivable from Fidelity Central Funds | 490 | |
Total assets | 22,080,947 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 65,370 | |
Payable for fund shares redeemed | 34,563 | |
Accrued management fee | 5,618 | |
Payable for daily variation on futures contracts | 6,230 | |
Other affiliated payables | 2,774 | |
Collateral on securities loaned, at value | 1,804,600 | |
Total liabilities | 1,919,155 | |
|
|
|
Net Assets | $ 20,161,792 | |
Net Assets consist of: |
| |
Paid in capital | $ 40,001,375 | |
Undistributed net investment income | 174,116 | |
Accumulated undistributed net realized gain (loss) on investments | (5,469,059) | |
Net unrealized appreciation (depreciation) on investments | (14,544,640) | |
Net Assets, for 4,388,298 shares outstanding | $ 20,161,792 | |
Net Asset Value, offering price and redemption price per share ($20,161,792 ÷ 4,388,298 shares) | $ 4.59 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 843,000 |
Interest |
| 8,901 |
Income from Fidelity Central Funds |
| 6,821 |
Total income |
| 858,722 |
|
|
|
Expenses | ||
Management fee | $ 76,727 | |
Transfer agent fees | 39,510 | |
Independent trustees' compensation | 2,295 | |
Total expenses before reductions | 118,532 | |
Expense reductions | (18) | 118,514 |
Net investment income (loss) | 740,208 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (4,241,886) | |
Futures contracts | (399,023) | |
Total net realized gain (loss) |
| (4,640,909) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (11,507,249) | |
Futures contracts | (37,756) | |
Total change in net unrealized appreciation (depreciation) |
| (11,545,005) |
Net gain (loss) | (16,185,914) | |
Net increase (decrease) in net assets resulting from operations | $ (15,445,706) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Value Enhanced Index Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 740,208 | $ 392,932 |
Net realized gain (loss) | (4,640,909) | (827,022) |
Change in net unrealized appreciation (depreciation) | (11,545,005) | (2,999,635) |
Net increase (decrease) in net assets resulting from operations | (15,445,706) | (3,433,725) |
Distributions to shareholders from net investment income | (635,673) | (320,661) |
Share transactions | 31,493,760 | 39,722,635 |
Reinvestment of distributions | 592,446 | 307,682 |
Cost of shares redeemed | (20,222,512) | (11,896,454) |
Net increase (decrease) in net assets resulting from share transactions | 11,863,694 | 28,133,863 |
Total increase (decrease) in net assets | (4,217,685) | 24,379,477 |
|
|
|
Net Assets | ||
Beginning of period | 24,379,477 | - |
End of period (including undistributed net investment income of $174,116 and undistributed net investment income of $73,019, respectively) | $ 20,161,792 | $ 24,379,477 |
Other Information Shares | ||
Sold | 4,645,514 | 3,987,621 |
Issued in reinvestment of distributions | 98,582 | 32,593 |
Redeemed | (3,162,980) | (1,213,032) |
Net increase (decrease) | 1,581,116 | 2,807,182 |
Financial Highlights
Years ended February 28, | 2009 | 2008 G, I |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 8.68 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .20 | .18 |
Net realized and unrealized gain (loss) | (4.14) | (1.37) |
Total from investment operations | (3.94) | (1.19) |
Distributions from net investment income | (.15) | (.13) |
Net asset value, end of period | $ 4.59 | $ 8.68 |
Total Return B, C | (45.82)% | (12.00)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .45% | .45% A |
Expenses net of fee waivers, if any | .45% | .45% A |
Expenses net of all reductions | .45% | .45% A |
Net investment income (loss) | 2.81% | 2.12% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 20,162 | $ 24,379 |
Portfolio turnover rate F | 117% | 65% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 19, 2007 (commencement of operations) to February 29, 2008.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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 For the year ended February 29.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Core Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
Large Cap Core Enhanced Index Fund | -41.51% | -28.09% |
A From April 19, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Large Cap Core Enhanced Index Fund on April 19, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM (S&P 500®) Index performed over the same period.
Annual Report
Fidelity Large Cap Core Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity markets took it squarely on the chin during the 12 months ending February 28, 2009, battered by global recessionary fears, drum-tight credit markets and the rapid flight of capital away from risk and toward the investment sidelines. Stocks had performed reasonably well up until late last summer, in spite of high energy costs and slowing global economic growth. But beginning in September 2008, a succession of large financial institutions either collapsed, or came close to failing, as they struggled under the weight of toxic, asset-backed securities, which sent the equity markets into a turbulent downward spiral. Even as the federal government began a series of aggressive interventions to rescue the troubled financial services industry and to shore up deteriorating economic conditions, investors remained skittish and the equity markets' sell-off continued. The Standard & Poor's 500SM Index fell 43.32% for the year overall and lost more than 17% in value during the December-February time frame alone. All 10 of the S&P 500®'s market sectors landed deep in negative territory for the 12-month span. Meanwhile, the blue-chip Dow Jones Industrial AverageSM fell by a comparable 40.58% mark, and the small-cap-oriented Russell 2000® Index declined 42.38%. Elsewhere, the technology-heavy NASDAQ Composite® Index dropped 38.77%.
Comments from Jeffrey Adams, who oversees Fidelity® Large Cap Core Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: For the year, the fund declined 41.51%, outpacing the S&P 500. The biggest contribution came from the financials sector - specifically, from a combination of favorable stock selection and being underweighted in this poor-performing group. The same combination also added to the fund's performance in the consumer discretionary sector. Favorable stock picks in energy helped as well. In contrast, stock selection in health care was relatively weak, while a combination of stock and sector selection hindered our results in utilities. On an individual basis, auto parts retailer AutoZone was the fund's top contributor. The company reported better-than-expected quarterly profits, thanks in part to successful cost controls and inventory management. Restaurant giant McDonald's turned in solid financial results, with rising same-store sales indicating decent business performance in the face of a global recession. General Mills also generated favorable quarterly earnings on higher demand for its packaged-food products, while credit card company MasterCard reported better quarterly profits as well. On the negative side, an out-of-benchmark position in construction and engineering company Foster Wheeler hampered performance, as the company's shares steadily declined beginning last summer. An out-of-benchmark position in Amkor Technology also detracted. This semiconductor packaging company experienced a difficult business environment. The fund was further hurt by its position in bank stock KeyCorp. Neither Amkor nor KeyCorp was in the portfolio at 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.
Annual Report
Fidelity Large Cap Core Enhanced Index Fund
Investment Changes (Unaudited)
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 5.5 | 3.9 |
Johnson & Johnson | 2.5 | 2.1 |
Procter & Gamble Co. | 2.5 | 1.8 |
International Business Machines Corp. | 2.2 | 1.8 |
Chevron Corp. | 2.0 | 2.0 |
AT&T, Inc. | 1.9 | 1.6 |
Microsoft Corp. | 1.9 | 2.1 |
Wal-Mart Stores, Inc. | 1.8 | 1.2 |
Pfizer, Inc. | 1.6 | 1.5 |
Hewlett-Packard Co. | 1.5 | 1.5 |
| 23.4 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 17.0 | 16.4 |
Health Care | 16.5 | 12.6 |
Consumer Staples | 14.1 | 10.4 |
Energy | 13.2 | 13.5 |
Financials | 9.5 | 13.5 |
Industrials | 8.8 | 11.2 |
Consumer Discretionary | 7.4 | 8.3 |
Utilities | 4.2 | 3.1 |
Telecommunication Services | 4.1 | 4.0 |
Materials | 2.6 | 3.5 |
Annual Report
Fidelity Large Cap Core Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 7.4% | |||
Diversified Consumer Services - 0.6% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 56,889 | $ 4,124,453 | |
Hotels, Restaurants & Leisure - 1.9% | |||
Choice Hotels International, Inc. (e) | 53,000 | 1,312,280 | |
McDonald's Corp. | 205,088 | 10,715,848 | |
WMS Industries, Inc. (a)(e) | 92,331 | 1,673,961 | |
| 13,702,089 | ||
Internet & Catalog Retail - 0.3% | |||
Amazon.com, Inc. | 35,650 | 2,309,764 | |
Media - 2.3% | |||
Comcast Corp. Class A (e) | 308,790 | 4,032,797 | |
DISH Network Corp. Class A (a) | 176,687 | 1,987,729 | |
Gannett Co., Inc. (e) | 120,000 | 388,800 | |
Liberty Media Corp. - Entertainment Class A (a) | 89,321 | 1,547,040 | |
News Corp. Class A | 205,094 | 1,140,323 | |
The Walt Disney Co. (e) | 199,511 | 3,345,799 | |
Time Warner, Inc. | 464,859 | 3,546,874 | |
Viacom, Inc. Class B (non-vtg.) (a) | 57,893 | 890,973 | |
| 16,880,335 | ||
Multiline Retail - 0.2% | |||
Macy's, Inc. (e) | 53,000 | 417,110 | |
Target Corp. | 22,092 | 625,425 | |
| 1,042,535 | ||
Specialty Retail - 1.9% | |||
AutoZone, Inc. (a)(e) | 32,227 | 4,583,646 | |
Gamestop Corp. Class A (a) | 5,636 | 151,721 | |
Gap, Inc. (e) | 305,809 | 3,299,679 | |
Home Depot, Inc. | 110,999 | 2,318,769 | |
Lowe's Companies, Inc. | 91,813 | 1,454,318 | |
RadioShack Corp. | 117,545 | 861,605 | |
Rent-A-Center, Inc. (a) | 63,510 | 1,112,695 | |
| 13,782,433 | ||
Textiles, Apparel & Luxury Goods - 0.2% | |||
NIKE, Inc. Class B | 39,964 | 1,659,705 | |
TOTAL CONSUMER DISCRETIONARY | 53,501,314 | ||
CONSUMER STAPLES - 14.1% | |||
Beverages - 2.6% | |||
Coca-Cola Enterprises, Inc. | 211,700 | 2,430,316 | |
PepsiCo, Inc. | 160,579 | 7,730,273 | |
The Coca-Cola Co. | 209,468 | 8,556,768 | |
| 18,717,357 | ||
Food & Staples Retailing - 3.9% | |||
BJ's Wholesale Club, Inc. (a)(e) | 127,891 | 3,821,383 | |
Costco Wholesale Corp. (e) | 7,788 | 329,744 | |
CVS Caremark Corp. | 149,204 | 3,840,511 | |
| |||
Shares | Value | ||
Kroger Co. | 117,731 | $ 2,433,500 | |
Safeway, Inc. | 106,000 | 1,961,000 | |
SUPERVALU, Inc. | 32,332 | 504,703 | |
Sysco Corp. | 62,380 | 1,341,170 | |
Wal-Mart Stores, Inc. | 262,633 | 12,932,049 | |
Walgreen Co. | 39,229 | 936,004 | |
| 28,100,064 | ||
Food Products - 2.1% | |||
Archer Daniels Midland Co. | 148,360 | 3,955,278 | |
Dean Foods Co. (a) | 92,000 | 1,881,400 | |
General Mills, Inc. (e) | 96,894 | 5,084,997 | |
H.J. Heinz Co. | 22,969 | 750,397 | |
Hershey Co. | 55,460 | 1,868,447 | |
Kraft Foods, Inc. Class A | 81,560 | 1,857,937 | |
| 15,398,456 | ||
Household Products - 3.6% | |||
Colgate-Palmolive Co. | 76,102 | 4,579,818 | |
Energizer Holdings, Inc. (a) | 41,500 | 1,750,885 | |
Kimberly-Clark Corp. | 44,675 | 2,104,639 | |
Procter & Gamble Co. | 370,561 | 17,849,923 | |
| 26,285,265 | ||
Tobacco - 1.9% | |||
Altria Group, Inc. | 331,440 | 5,117,434 | |
Lorillard, Inc. | 24,460 | 1,429,442 | |
Philip Morris International, Inc. | 215,370 | 7,208,434 | |
| 13,755,310 | ||
TOTAL CONSUMER STAPLES | 102,256,452 | ||
ENERGY - 13.2% | |||
Energy Equipment & Services - 1.7% | |||
ENSCO International, Inc. | 83,642 | 2,055,920 | |
Halliburton Co. | 21,887 | 356,977 | |
National Oilwell Varco, Inc. (a)(e) | 99,436 | 2,657,924 | |
Schlumberger Ltd. (NY Shares) | 143,871 | 5,475,730 | |
Transocean Ltd. (a) | 30,118 | 1,800,153 | |
| 12,346,704 | ||
Oil, Gas & Consumable Fuels - 11.5% | |||
Anadarko Petroleum Corp. | 61,728 | 2,157,394 | |
Apache Corp. | 35,718 | 2,110,577 | |
Chevron Corp. | 238,846 | 14,500,341 | |
ConocoPhillips | 172,391 | 6,438,804 | |
Devon Energy Corp. | 21,672 | 946,416 | |
Encore Acquisition Co. (a) | 27,548 | 553,164 | |
EOG Resources, Inc. | 5,006 | 250,500 | |
Exxon Mobil Corp. | 586,579 | 39,828,712 | |
Hess Corp. | 28,861 | 1,578,408 | |
Marathon Oil Corp. | 73,646 | 1,713,742 | |
McMoRan Exploration Co. (a) | 75,000 | 344,250 | |
Murphy Oil Corp. | 40,500 | 1,693,305 | |
Noble Energy, Inc. | 12,786 | 582,274 | |
Occidental Petroleum Corp. | 124,009 | 6,432,347 | |
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Spectra Energy Corp. | 61,095 | $ 794,235 | |
Sunoco, Inc. | 78,139 | 2,613,750 | |
Valero Energy Corp. | 46,894 | 908,806 | |
| 83,447,025 | ||
TOTAL ENERGY | 95,793,729 | ||
FINANCIALS - 9.5% | |||
Capital Markets - 2.4% | |||
Apollo Investment Corp. | 139,500 | 576,135 | |
Bank of New York Mellon Corp. | 109,481 | 2,427,194 | |
Goldman Sachs Group, Inc. | 41,979 | 3,823,447 | |
Knight Capital Group, Inc. Class A (a)(e) | 166,453 | 2,927,908 | |
Morgan Stanley | 107,188 | 2,094,454 | |
Northern Trust Corp. | 23,480 | 1,304,314 | |
Raymond James Financial, Inc. | 44,600 | 622,616 | |
State Street Corp. (e) | 94,323 | 2,383,542 | |
TD Ameritrade Holding Corp. (a) | 80,901 | 960,295 | |
| 17,119,905 | ||
Commercial Banks - 1.7% | |||
BB&T Corp. (e) | 81,817 | 1,319,708 | |
PNC Financial Services Group, Inc. (e) | 34,259 | 936,641 | |
Prosperity Bancshares, Inc. (e) | 70,000 | 1,786,400 | |
Signature Bank, New York (a) | 46,500 | 1,162,965 | |
U.S. Bancorp, Delaware | 159,927 | 2,288,555 | |
Wells Fargo & Co. | 379,898 | 4,596,766 | |
| 12,091,035 | ||
Consumer Finance - 0.1% | |||
American Express Co. | 91,298 | 1,101,054 | |
Diversified Financial Services - 1.9% | |||
Bank of America Corp. | 675,767 | 2,669,280 | |
Citigroup, Inc. (e) | 448,820 | 673,230 | |
CME Group, Inc. | 3,520 | 642,048 | |
JPMorgan Chase & Co. | 348,791 | 7,969,874 | |
The NASDAQ Stock Market, Inc. (a) | 69,534 | 1,453,261 | |
| 13,407,693 | ||
Insurance - 2.4% | |||
ACE Ltd. | 72,349 | 2,641,462 | |
AFLAC, Inc. | 140,664 | 2,357,529 | |
Aon Corp. | 30,835 | 1,179,130 | |
Arch Capital Group Ltd. (a) | 36,737 | 1,983,798 | |
Aspen Insurance Holdings Ltd. | 132,792 | 2,893,538 | |
Hartford Financial Services Group, Inc. | 31,262 | 190,698 | |
MetLife, Inc. | 109,315 | 2,017,955 | |
Prudential Financial, Inc. | 26,802 | 439,821 | |
The Chubb Corp. | 19,908 | 777,208 | |
The Travelers Companies, Inc. | 40,309 | 1,457,170 | |
| |||
Shares | Value | ||
Transatlantic Holdings, Inc. | 37,500 | $ 1,127,625 | |
W.R. Berkley Corp. | 22,068 | 459,235 | |
| 17,525,169 | ||
Real Estate Investment Trusts - 1.0% | |||
Brandywine Realty Trust (SBI) (e) | 119,510 | 564,087 | |
HCP, Inc. (e) | 77,953 | 1,424,201 | |
Hospitality Properties Trust (SBI) | 64,992 | 740,909 | |
Host Hotels & Resorts, Inc. | 350,000 | 1,295,000 | |
HRPT Properties Trust (SBI) | 267,876 | 865,239 | |
ProLogis Trust (e) | 155,823 | 902,215 | |
SL Green Realty Corp. (e) | 45,000 | 522,900 | |
The Macerich Co. (e) | 71,397 | 815,354 | |
| 7,129,905 | ||
TOTAL FINANCIALS | 68,374,761 | ||
HEALTH CARE - 16.5% | |||
Biotechnology - 2.5% | |||
Amgen, Inc. (a) | 177,581 | 8,689,038 | |
Biogen Idec, Inc. (a) | 62,858 | 2,893,982 | |
Celgene Corp. (a) | 9,796 | 438,175 | |
Gilead Sciences, Inc. (a) | 108,689 | 4,869,267 | |
Isis Pharmaceuticals, Inc. (a)(e) | 106,000 | 1,363,160 | |
| 18,253,622 | ||
Health Care Equipment & Supplies - 2.1% | |||
Baxter International, Inc. | 114,688 | 5,838,766 | |
Boston Scientific Corp. (a) | 473,871 | 3,326,574 | |
Covidien Ltd. | 28,596 | 905,635 | |
Kinetic Concepts, Inc. (a)(e) | 32,006 | 697,091 | |
Medtronic, Inc. | 125,240 | 3,705,852 | |
Varian Medical Systems, Inc. (a)(e) | 21,100 | 643,761 | |
| 15,117,679 | ||
Health Care Providers & Services - 2.4% | |||
Aetna, Inc. | 37,619 | 897,966 | |
CIGNA Corp. | 47,575 | 749,782 | |
Express Scripts, Inc. (a) | 101,009 | 5,080,753 | |
HealthSouth Corp. (a)(e) | 129,771 | 1,018,702 | |
LifePoint Hospitals, Inc. (a) | 41,043 | 862,724 | |
McKesson Corp. | 38,500 | 1,579,270 | |
Medco Health Solutions, Inc. (a) | 11,037 | 447,881 | |
Omnicare, Inc. | 78,138 | 2,026,118 | |
UnitedHealth Group, Inc. | 110,079 | 2,163,052 | |
WellPoint, Inc. (a) | 65,260 | 2,213,619 | |
| 17,039,867 | ||
Life Sciences Tools & Services - 0.3% | |||
Thermo Fisher Scientific, Inc. (a) | 57,544 | 2,086,545 | |
Pharmaceuticals - 9.2% | |||
Abbott Laboratories | 206,137 | 9,758,526 | |
Bristol-Myers Squibb Co. | 206,917 | 3,809,342 | |
Eli Lilly & Co. | 199,621 | 5,864,865 | |
Johnson & Johnson | 360,233 | 18,011,650 | |
Merck & Co., Inc. | 273,124 | 6,609,601 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Pfizer, Inc. | 946,678 | $ 11,653,606 | |
Schering-Plough Corp. | 198,612 | 3,453,863 | |
Watson Pharmaceuticals, Inc. (a) | 50,000 | 1,413,500 | |
Wyeth | 149,346 | 6,096,304 | |
| 66,671,257 | ||
TOTAL HEALTH CARE | 119,168,970 | ||
INDUSTRIALS - 8.8% | |||
Aerospace & Defense - 3.3% | |||
General Dynamics Corp. | 82,758 | 3,626,456 | |
Honeywell International, Inc. | 163,153 | 4,377,395 | |
L-3 Communications Holdings, Inc. | 42,917 | 2,903,335 | |
Lockheed Martin Corp. | 21,482 | 1,355,729 | |
Northrop Grumman Corp. | 19,911 | 743,875 | |
Raytheon Co. | 99,611 | 3,981,452 | |
The Boeing Co. | 70,776 | 2,225,197 | |
United Technologies Corp. | 107,279 | 4,380,202 | |
| 23,593,641 | ||
Air Freight & Logistics - 0.8% | |||
Expeditors International of Washington, Inc. | 37,100 | 1,022,105 | |
FedEx Corp. | 29,418 | 1,271,152 | |
United Parcel Service, Inc. Class B | 81,883 | 3,371,942 | |
| 5,665,199 | ||
Construction & Engineering - 0.5% | |||
Foster Wheeler AG (a) | 121,764 | 1,831,331 | |
Shaw Group, Inc. (a) | 92,795 | 2,165,835 | |
| 3,997,166 | ||
Electrical Equipment - 0.5% | |||
Emerson Electric Co. | 131,554 | 3,519,070 | |
Industrial Conglomerates - 1.8% | |||
3M Co. | 61,170 | 2,780,788 | |
General Electric Co. | 1,192,681 | 10,149,715 | |
Tyco International Ltd. | 4,567 | 91,568 | |
| 13,022,071 | ||
Machinery - 0.9% | |||
AGCO Corp. (a) | 50,831 | 871,243 | |
Caterpillar, Inc. | 29,954 | 737,168 | |
Deere & Co. | 18,136 | 498,559 | |
Flowserve Corp. | 29,600 | 1,493,912 | |
Gardner Denver, Inc. (a) | 47,990 | 907,971 | |
ITT Corp. | 22,500 | 840,375 | |
Joy Global, Inc. | 60,500 | 1,056,330 | |
| 6,405,558 | ||
Road & Rail - 1.0% | |||
Burlington Northern Santa Fe Corp. | 20,327 | 1,194,618 | |
CSX Corp. | 77,990 | 1,924,793 | |
| |||
Shares | Value | ||
Norfolk Southern Corp. | 75,384 | $ 2,391,180 | |
Union Pacific Corp. | 51,794 | 1,943,311 | |
| 7,453,902 | ||
TOTAL INDUSTRIALS | 63,656,607 | ||
INFORMATION TECHNOLOGY - 17.0% | |||
Communications Equipment - 2.2% | |||
3Com Corp. (a) | 343,990 | 760,218 | |
Cisco Systems, Inc. (a) | 668,884 | 9,745,640 | |
Harris Corp. | 50,595 | 1,886,182 | |
QUALCOMM, Inc. | 116,191 | 3,884,265 | |
| 16,276,305 | ||
Computers & Peripherals - 5.8% | |||
Apple, Inc. (a) | 112,548 | 10,051,662 | |
Dell, Inc. (a) | 181,488 | 1,548,093 | |
EMC Corp. (a)(e) | 223,842 | 2,350,341 | |
Hewlett-Packard Co. | 376,059 | 10,916,993 | |
International Business Machines Corp. | 170,054 | 15,650,070 | |
Lexmark International, Inc. Class A (a) | 82,880 | 1,420,563 | |
| 41,937,722 | ||
Electronic Equipment & Components - 0.2% | |||
Mettler-Toledo International, Inc. (a) | 26,960 | 1,437,238 | |
Internet Software & Services - 1.7% | |||
eBay, Inc. (a) | 114,477 | 1,244,365 | |
Google, Inc. Class A (sub. vtg.) (a) | 23,432 | 7,919,782 | |
Sohu.com, Inc. (a) | 37,745 | 1,864,603 | |
Yahoo!, Inc. (a)(e) | 76,759 | 1,015,522 | |
| 12,044,272 | ||
IT Services - 1.5% | |||
Accenture Ltd. Class A | 52,000 | 1,517,880 | |
Alliance Data Systems Corp. (a)(e) | 47,455 | 1,404,668 | |
Automatic Data Processing, Inc. | 108,783 | 3,714,939 | |
MasterCard, Inc. Class A (e) | 10,827 | 1,710,991 | |
The Western Union Co. | 223,564 | 2,494,974 | |
| 10,843,452 | ||
Semiconductors & Semiconductor Equipment - 1.5% | |||
Integrated Device Technology, Inc. (a) | 343,881 | 1,540,587 | |
Intel Corp. (e) | 586,572 | 7,472,927 | |
Texas Instruments, Inc. | 109,374 | 1,569,517 | |
| 10,583,031 | ||
Software - 4.1% | |||
Adobe Systems, Inc. (a)(e) | 148,997 | 2,488,250 | |
CA, Inc. | 121,653 | 2,062,018 | |
Microsoft Corp. | 865,721 | 13,981,394 | |
Oracle Corp. (a) | 638,003 | 9,914,567 | |
Symantec Corp. (a) | 91,130 | 1,260,328 | |
| 29,706,557 | ||
TOTAL INFORMATION TECHNOLOGY | 122,828,577 | ||
Common Stocks - continued | |||
Shares | Value | ||
MATERIALS - 2.6% | |||
Chemicals - 1.9% | |||
Celanese Corp. Class A | 101,869 | $ 869,961 | |
CF Industries Holdings, Inc. | 23,179 | 1,491,105 | |
E.I. du Pont de Nemours & Co. | 45,456 | 852,755 | |
Monsanto Co. | 86,766 | 6,617,643 | |
Terra Industries, Inc. | 115,770 | 2,985,708 | |
The Scotts Miracle-Gro Co. Class A (e) | 33,500 | 935,655 | |
| 13,752,827 | ||
Metals & Mining - 0.7% | |||
Compass Minerals International, Inc. | 50,194 | 2,621,131 | |
Freeport-McMoRan Copper & Gold, Inc. Class B (e) | 69,874 | 2,125,567 | |
Southern Copper Corp. | 24,357 | 333,934 | |
| 5,080,632 | ||
TOTAL MATERIALS | 18,833,459 | ||
TELECOMMUNICATION SERVICES - 4.1% | |||
Diversified Telecommunication Services - 3.9% | |||
AT&T, Inc. | 595,495 | 14,154,916 | |
CenturyTel, Inc. (e) | 166,078 | 4,372,834 | |
Frontier Communications Corp. | 63,191 | 454,975 | |
Verizon Communications, Inc. | 331,145 | 9,447,567 | |
| 28,430,292 | ||
Wireless Telecommunication Services - 0.2% | |||
Sprint Nextel Corp. (a) | 289,422 | 952,198 | |
TOTAL TELECOMMUNICATION SERVICES | 29,382,490 | ||
UTILITIES - 4.2% | |||
Electric Utilities - 2.3% | |||
American Electric Power Co., Inc. | 45,316 | 1,271,114 | |
DPL, Inc. | 146,757 | 2,949,816 | |
Duke Energy Corp. | 132,090 | 1,779,252 | |
Edison International | 137,440 | 3,741,117 | |
Entergy Corp. | 19,287 | 1,299,751 | |
Exelon Corp. | 46,007 | 2,172,451 | |
FPL Group, Inc. | 43,081 | 1,952,862 | |
Southern Co. | 51,626 | 1,564,784 | |
| 16,731,147 | ||
Independent Power Producers & Energy Traders - 0.5% | |||
AES Corp. (a) | 345,000 | 2,173,500 | |
NRG Energy, Inc. (a)(e) | 92,218 | 1,742,920 | |
| 3,916,420 | ||
Multi-Utilities - 1.4% | |||
Dominion Resources, Inc. | 148,335 | 4,476,750 | |
| |||
Shares | Value | ||
Public Service Enterprise Group, Inc. | 80,637 | $ 2,200,584 | |
Sempra Energy | 77,683 | 3,229,282 | |
| 9,906,616 | ||
TOTAL UTILITIES | 30,554,183 | ||
TOTAL COMMON STOCKS (Cost $1,111,679,042) | 704,350,542 |
U.S. Treasury Obligations - 0.7% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 1.03% to 1.51% 3/26/09 to 5/7/09 (f) | $ 5,300,000 | 5,298,606 |
Money Market Funds - 10.2% | |||
Shares |
| ||
Dreyfus Cash Management Institutional Shares, 1.85% (c) | 11,934,063 | 11,934,063 | |
Fidelity Securities Lending Cash Central Fund, 0.66% (b)(d) | 61,860,590 | 61,860,590 | |
TOTAL MONEY MARKET FUNDS (Cost $73,794,653) | 73,794,653 |
TOTAL INVESTMENT PORTFOLIO - 108.3% (Cost $1,190,765,780) | 783,443,801 |
NET OTHER ASSETS - (8.3)% | (59,895,657) | ||
NET ASSETS - 100% | $ 723,548,144 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
331 CME E-mini S&P 500 Index Contracts | March 2009 | $ 12,151,010 | $ (2,506,965) | ||
39 CME S&P 500 Index Contracts | March 2009 | 7,158,450 | (660,817) | ||
TOTAL EQUITY INDEX CONTRACTS | $ 19,309,460 | $ (3,167,782) |
|
The face value of futures purchased as a percentage of net assets - 2.7% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) The rate quoted is the annualized seven-day yield of the fund at period end. |
(d) Investment made with cash collateral received from securities on loan. |
(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 the period end, the value of securities pledged amounted to $3,698,803. |
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 Securities Lending Cash Central Fund | $ 168,681 |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 783,443,801 | $ 778,145,195 | $ 5,298,606 | $ - |
Other Financial Instruments * | $ (3,167,782) | $ (3,167,782) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $100,229,482 of which $391,157 and $99,838,325 will expire on February 29, 2016 and February 28, 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $68,344,760 of losses recognized during the period November 1, 2008 to February 28, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Large Cap Core Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $59,170,565) - Unaffiliated issuers (cost $1,128,905,190) | $ 721,583,211 |
|
Fidelity Central Funds | 61,860,590 |
|
Total Investments |
| $ 783,443,801 |
Receivable for fund shares sold | 160,843 | |
Dividends receivable | 2,893,819 | |
Interest receivable | 17,702 | |
Distributions receivable from Fidelity Central Funds | 17,753 | |
Total assets | 786,533,918 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 358,257 | |
Accrued management fee | 195,240 | |
Payable for daily variation on futures contracts | 474,104 | |
Other affiliated payables | 97,583 | |
Collateral on securities loaned, at value | 61,860,590 | |
Total liabilities | 62,985,774 | |
|
|
|
Net Assets | $ 723,548,144 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,300,744,601 | |
Undistributed net investment income | 3,266,239 | |
Accumulated undistributed net realized gain (loss) on investments | (169,972,935) | |
Net unrealized appreciation (depreciation) on investments | (410,489,761) | |
Net Assets, for 137,396,110 shares outstanding | $ 723,548,144 | |
Net Asset Value, offering price and redemption price per share ($723,548,144 ÷ 137,396,110 shares) | $ 5.27 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 21,664,765 |
Interest |
| 672,978 |
Income from Fidelity Central Funds |
| 168,681 |
Total income |
| 22,506,424 |
|
|
|
Expenses | ||
Management fee | $ 2,618,232 | |
Transfer agent fees | 1,348,732 | |
Independent trustees' compensation | 79,232 | |
Total expenses before reductions | 4,046,196 | |
Expense reductions | (2,031) | 4,044,165 |
Net investment income (loss) | 18,462,259 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (146,328,452) | |
Futures contracts | (21,136,928) | |
Total net realized gain (loss) |
| (167,465,380) |
Change in net unrealized Investment securities | (314,481,823) | |
Futures contracts | (2,662,002) | |
Total change in net unrealized appreciation (depreciation) |
| (317,143,825) |
Net gain (loss) | (484,609,205) | |
Net increase (decrease) in net assets resulting from operations | $ (466,146,946) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 18,462,259 | $ 5,239,172 |
Net realized gain (loss) | (167,465,380) | (2,510,972) |
Change in net unrealized appreciation (depreciation) | (317,143,825) | (93,345,936) |
Net increase (decrease) in net assets resulting from operations | (466,146,946) | (90,617,736) |
Distributions to shareholders from net investment income | (17,085,488) | (3,331,983) |
Share transactions | 479,166,881 | 988,996,519 |
Reinvestment of distributions | 17,020,121 | 3,320,538 |
Cost of shares redeemed | (123,929,208) | (63,844,554) |
Net increase (decrease) in net assets resulting from share transactions | 372,257,794 | 928,472,503 |
Total increase (decrease) in net assets | (110,974,640) | 834,522,784 |
|
|
|
Net Assets | ||
Beginning of period | 834,522,784 | - |
End of period (including undistributed net investment income of $3,266,239 and undistributed net investment income of $1,907,189, respectively) | $ 723,548,144 | $ 834,522,784 |
Other Information Shares | ||
Sold | 61,499,478 | 96,918,399 |
Issued in reinvestment of distributions | 2,593,329 | 326,503 |
Redeemed | (17,449,263) | (6,492,336) |
Net increase (decrease) | 46,643,544 | 90,752,566 |
Financial Highlights
Years ended February 28, | 2009 | 2008 G, I |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.20 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .16 | .15 |
Net realized and unrealized gain (loss) | (3.95) | (.90) |
Total from investment operations | (3.79) | (.75) |
Distributions from net investment income | (.14) | (.05) |
Net asset value, end of period | $ 5.27 | $ 9.20 |
Total Return B, C | (41.51)% | (7.59)% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions | .45% | .45% A |
Expenses net of fee waivers, if any | .45% | .45% A |
Expenses net of all reductions | .45% | .45% A |
Net investment income (loss) | 2.05% | 1.83% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 723,548 | $ 834,523 |
Portfolio turnover rate F | 72% | 5% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period April 19, 2007 (commencement of operations) to February 29, 2008.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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 For the year ended February 29.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
Mid Cap Enhanced Index Fund | -43.40% | -42.29% |
A From December 20, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Mid Cap Enhanced Index Fund on December 20, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell MidCap® Index performed over the same period.
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity markets took it squarely on the chin during the 12 months ending February 28, 2009, battered by global recessionary fears, drum-tight credit markets and the rapid flight of capital away from risk and toward the investment sidelines. Stocks had performed reasonably well up until late last summer, in spite of high energy costs and slowing global economic growth. But beginning in September 2008, a succession of large financial institutions either collapsed, or came close to failing, as they struggled under the weight of toxic, asset-backed securities, which sent the equity markets into a turbulent downward spiral. Even as the federal government began a series of aggressive interventions to rescue the troubled financial services industry and to shore up deteriorating economic conditions, investors remained skittish and the equity markets' sell-off continued. The Standard & Poor's 500SM Index fell 43.32% for the year overall and lost more than 17% in value during the December-February time frame alone. All 10 of the S&P 500®'s market sectors landed deep in negative territory for the 12-month span. Meanwhile, the blue-chip Dow Jones Industrial AverageSM fell by a comparable 40.58% mark, and the small-cap-oriented Russell 2000® Index declined 42.38%. Elsewhere, the technology-heavy NASDAQ Composite® Index dropped 38.77%.
Comments from Jeffrey Adams, who oversees Fidelity® Mid Cap Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: For the year ending February 28, 2009, the fund declined 43.40%, compared with a loss of 46.56% for the benchmark Russell Midcap® Index. The biggest performance contributions came from the consumer discretionary and financials sectors, where security selection and, to a lesser extent, sector weightings were positive. Stock picking in information technology and consumer staples helped as well. In contrast, unfavorable security selection in materials had the only negative sector-level performance impact. Several of our best-performing stocks were for-profit education companies, including ITT Educational Services and Apollo Group. Both firms generated strong earnings, thanks in part to increased student enrollment. Auto parts retailer AutoZone reported better-than-expected quarterly profits on successful cost controls and inventory management. Pharmacy chain Longs Drug Stores - which was not in the benchmark - rose sharply after the company was acquired by CVS Caremark. Independent energy production company Continental Resources also contributed. On the negative side, falling natural gas prices weighed on shares of Chesapeake Energy. Food service equipment manufacturer Manitowoc struggled as well amid declining demand for its products. Mosaic saw its shares decline because of concerns about an oversupply of phosphate and potash, two important fertilizer raw materials produced by the company. Several of the stocks I mentioned were not in the portfolio at 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.
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Investment Changes (Unaudited)
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
American Tower Corp. Class A | 0.9 | 0.6 |
Yum! Brands, Inc. | 0.8 | 0.7 |
Express Scripts, Inc. | 0.8 | 0.7 |
H.J. Heinz Co. | 0.8 | 0.7 |
Apollo Group, Inc. Class A (non-vtg.) | 0.8 | 0.5 |
L-3 Communications Holdings, Inc. | 0.7 | 0.6 |
St. Jude Medical, Inc. | 0.8 | 0.7 |
Lorillard, Inc. | 0.7 | 0.1 |
American Electric Power Co., Inc. | 0.7 | 0.5 |
Annaly Capital Management, Inc. | 0.7 | 0.4 |
| 7.7 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 16.2 | 13.8 |
Information Technology | 14.6 | 13.3 |
Financials | 14.5 | 16.3 |
Industrials | 11.6 | 11.4 |
Health Care | 10.0 | 9.3 |
Utilities | 8.2 | 7.5 |
Consumer Staples | 7.6 | 5.6 |
Energy | 7.2 | 8.6 |
Materials | 4.7 | 4.9 |
Telecommunication Services | 3.6 | 2.7 |
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.2% | |||
Auto Components - 0.4% | |||
Autoliv, Inc. | 1,375 | $ 20,460 | |
Fuel Systems Solutions, Inc. (a) | 1,535 | 30,408 | |
| 50,868 | ||
Automobiles - 0.2% | |||
Ford Motor Co. (a) | 15,442 | 30,884 | |
Diversified Consumer Services - 2.6% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 1,510 | 109,475 | |
DeVry, Inc. | 1,120 | 58,184 | |
H&R Block, Inc. | 4,520 | 86,332 | |
ITT Educational Services, Inc. (a) | 700 | 79,450 | |
Service Corp. International | 5,025 | 16,985 | |
Weight Watchers International, Inc. | 850 | 15,385 | |
| 365,811 | ||
Hotels, Restaurants & Leisure - 2.2% | |||
Brinker International, Inc. | 2,000 | 22,000 | |
International Game Technology | 4,000 | 35,280 | |
Interval Leisure Group, Inc. (a) | 4,300 | 17,200 | |
Scientific Games Corp. Class A (a) | 400 | 4,232 | |
Starbucks Corp. (a) | 2,400 | 21,960 | |
Starwood Hotels & Resorts Worldwide, Inc. | 3,300 | 38,247 | |
Tim Hortons, Inc. | 2,330 | 54,988 | |
Yum! Brands, Inc. | 4,570 | 120,100 | |
| 314,007 | ||
Household Durables - 1.7% | |||
Centex Corp. | 3,000 | 18,630 | |
D.R. Horton, Inc. | 5,710 | 48,250 | |
Fortune Brands, Inc. | 865 | 20,544 | |
Garmin Ltd. | 2,200 | 37,664 | |
Jarden Corp. (a) | 1,300 | 13,195 | |
Lennar Corp. Class A | 4,700 | 31,396 | |
NVR, Inc. (a) | 75 | 24,958 | |
Tempur-Pedic International, Inc. | 6,150 | 37,761 | |
Whirlpool Corp. | 400 | 8,892 | |
| 241,290 | ||
Internet & Catalog Retail - 0.2% | |||
Expedia, Inc. (a) | 3,430 | 27,337 | |
Liberty Media Corp. - Interactive | 1,040 | 3,370 | |
| 30,707 | ||
Leisure Equipment & Products - 0.4% | |||
Hasbro, Inc. | 1,600 | 36,624 | |
Polaris Industries, Inc. | 790 | 14,544 | |
| 51,168 | ||
Media - 1.8% | |||
Cablevision Systems Corp. - NY Group Class A | 600 | 7,794 | |
CBS Corp. Class B | 8,500 | 36,295 | |
DISH Network Corp. Class A (a) | 4,600 | 51,750 | |
| |||
Shares | Value | ||
Interactive Data Corp. | 1,550 | $ 35,061 | |
Interpublic Group of Companies, Inc. (a) | 9,200 | 35,052 | |
John Wiley & Sons, Inc. Class A | 930 | 29,193 | |
Liberty Global, Inc. Class A (a) | 980 | 12,025 | |
Liberty Media Corp. - Entertainment Class A (a) | 2,000 | 34,640 | |
McGraw-Hill Companies, Inc. | 1,120 | 22,098 | |
| 263,908 | ||
Multiline Retail - 1.6% | |||
Big Lots, Inc. (a) | 1,964 | 30,462 | |
JCPenney Co., Inc. | 600 | 9,198 | |
Kohl's Corp. (a) | 2,000 | 70,280 | |
Macy's, Inc. | 5,000 | 39,350 | |
Nordstrom, Inc. | 3,000 | 40,410 | |
Sears Holdings Corp. (a) | 1,165 | 42,825 | |
| 232,525 | ||
Specialty Retail - 4.0% | |||
Abercrombie & Fitch Co. Class A | 710 | 15,613 | |
Aeropostale, Inc. (a) | 1,589 | 36,849 | |
AutoZone, Inc. (a) | 620 | 88,183 | |
Barnes & Noble, Inc. | 660 | 11,840 | |
Bed Bath & Beyond, Inc. (a) | 165 | 3,515 | |
Gamestop Corp. Class A (a) | 2,780 | 74,838 | |
Gap, Inc. | 6,355 | 68,570 | |
RadioShack Corp. | 2,420 | 17,739 | |
Ross Stores, Inc. | 2,250 | 66,420 | |
Sherwin-Williams Co. | 1,510 | 69,385 | |
TJX Companies, Inc. | 2,880 | 64,138 | |
Williams-Sonoma, Inc. | 5,500 | 48,015 | |
| 565,105 | ||
Textiles, Apparel & Luxury Goods - 1.1% | |||
Coach, Inc. (a) | 4,535 | 63,399 | |
Deckers Outdoor Corp. (a) | 600 | 24,762 | |
VF Corp. | 1,275 | 66,173 | |
| 154,334 | ||
TOTAL CONSUMER DISCRETIONARY | 2,300,607 | ||
CONSUMER STAPLES - 7.6% | |||
Beverages - 1.3% | |||
Brown-Forman Corp. Class B (non-vtg.) | 800 | 34,384 | |
Coca-Cola Enterprises, Inc. | 6,000 | 68,880 | |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 4,380 | 57,159 | |
Pepsi Bottling Group, Inc. | 1,030 | 19,055 | |
| 179,478 | ||
Food & Staples Retailing - 0.9% | |||
BJ's Wholesale Club, Inc. (a) | 2,030 | 60,656 | |
Safeway, Inc. | 1,450 | 26,825 | |
SUPERVALU, Inc. | 2,500 | 39,025 | |
| 126,506 | ||
Common Stocks - continued | |||
Shares | Value | ||
CONSUMER STAPLES - continued | |||
Food Products - 3.0% | |||
Bunge Ltd. | 1,650 | $ 77,352 | |
Darling International, Inc. (a) | 4,600 | 19,918 | |
Dean Foods Co. (a) | 3,500 | 71,575 | |
H.J. Heinz Co. | 3,390 | 110,751 | |
Hershey Co. | 2,465 | 83,046 | |
Hormel Foods Corp. | 1,000 | 31,830 | |
McCormick & Co., Inc. (non-vtg.) | 1,220 | 38,247 | |
| 432,719 | ||
Household Products - 0.7% | |||
Church & Dwight Co., Inc. | 1,500 | 73,380 | |
Clorox Co. | 510 | 24,786 | |
| 98,166 | ||
Personal Products - 0.7% | |||
Alberto-Culver Co. | 1,500 | 33,210 | |
Avon Products, Inc. | 1,805 | 31,750 | |
Estee Lauder Companies, Inc. Class A | 238 | 5,391 | |
Herbalife Ltd. | 2,050 | 27,962 | |
| 98,313 | ||
Tobacco - 1.0% | |||
Lorillard, Inc. | 1,790 | 104,608 | |
Reynolds American, Inc. | 1,200 | 40,296 | |
| 144,904 | ||
TOTAL CONSUMER STAPLES | 1,080,086 | ||
ENERGY - 7.2% | |||
Energy Equipment & Services - 2.8% | |||
Cameron International Corp. (a) | 2,500 | 48,200 | |
Carbo Ceramics, Inc. | 650 | 22,594 | |
Dresser-Rand Group, Inc. (a) | 2,460 | 51,685 | |
ENSCO International, Inc. | 2,800 | 68,824 | |
FMC Technologies, Inc. (a) | 1,600 | 42,384 | |
IHS, Inc. Class A (a) | 1,000 | 40,730 | |
Nabors Industries Ltd. (a) | 245 | 2,379 | |
Noble Corp. | 3,620 | 89,016 | |
Pride International, Inc. (a) | 1,046 | 18,033 | |
Smith International, Inc. | 740 | 15,895 | |
| 399,740 | ||
Oil, Gas & Consumable Fuels - 4.4% | |||
Cimarex Energy Co. | 1,500 | 29,475 | |
CONSOL Energy, Inc. | 505 | 13,761 | |
El Paso Corp. | 3,150 | 21,263 | |
Foundation Coal Holdings, Inc. | 2,000 | 32,160 | |
Frontline Ltd. (NY Shares) | 850 | 17,247 | |
Massey Energy Co. | 545 | 6,295 | |
McMoRan Exploration Co. (a) | 7,000 | 32,130 | |
Murphy Oil Corp. | 2,000 | 83,620 | |
Noble Energy, Inc. | 1,980 | 90,169 | |
Range Resources Corp. | 250 | 8,893 | |
| |||
Shares | Value | ||
Southwestern Energy Co. (a) | 3,000 | $ 86,310 | |
Spectra Energy Corp. | 5,400 | 70,200 | |
Sunoco, Inc. | 1,900 | 63,555 | |
W&T Offshore, Inc. | 2,400 | 19,320 | |
Walter Industries, Inc. | 650 | 11,811 | |
World Fuel Services Corp. | 1,412 | 40,962 | |
| 627,171 | ||
TOTAL ENERGY | 1,026,911 | ||
FINANCIALS - 14.5% | |||
Capital Markets - 2.7% | |||
American Capital Ltd. | 8,000 | 10,800 | |
Ameriprise Financial, Inc. | 2,400 | 38,256 | |
Eaton Vance Corp. (non-vtg.) | 2,500 | 43,250 | |
Federated Investors, Inc. Class B (non-vtg.) | 3,200 | 60,352 | |
Investment Technology Group, Inc. (a) | 2,100 | 40,887 | |
Knight Capital Group, Inc. Class A (a) | 2,500 | 43,975 | |
Northern Trust Corp. | 1,420 | 78,881 | |
optionsXpress Holdings, Inc. | 1,650 | 16,286 | |
Raymond James Financial, Inc. | 1,920 | 26,803 | |
T. Rowe Price Group, Inc. | 1,000 | 22,740 | |
| 382,230 | ||
Commercial Banks - 1.3% | |||
Banco Latin Americano de Exporaciones SA (BLADEX) Series E | 4,450 | 40,362 | |
BancorpSouth, Inc. | 1,092 | 20,344 | |
Bank of Hawaii Corp. | 1,127 | 36,109 | |
Cullen/Frost Bankers, Inc. | 250 | 10,760 | |
M&T Bank Corp. | 770 | 28,182 | |
Prosperity Bancshares, Inc. | 800 | 20,416 | |
Southside Bancshares, Inc. | 1,945 | 33,882 | |
| 190,055 | ||
Diversified Financial Services - 0.4% | |||
The NASDAQ Stock Market, Inc. (a) | 2,500 | 52,250 | |
Insurance - 5.2% | |||
Allied World Assurance Co. Holdings Ltd. | 1,500 | 57,615 | |
American Equity Investment Life Holding Co. | 3,500 | 13,440 | |
American Financial Group, Inc. | 2,880 | 44,813 | |
Amerisafe, Inc. (a) | 1,000 | 14,500 | |
Aon Corp. | 1,455 | 55,639 | |
Arch Capital Group Ltd. (a) | 1,195 | 64,530 | |
Aspen Insurance Holdings Ltd. | 1,685 | 36,716 | |
Assurant, Inc. | 1,400 | 28,560 | |
Axis Capital Holdings Ltd. | 2,925 | 65,462 | |
Cincinnati Financial Corp. | 1,250 | 25,675 | |
Marsh & McLennan Companies, Inc. | 1,230 | 22,054 | |
MBIA, Inc. (a) | 11,100 | 30,414 | |
PartnerRe Ltd. | 925 | 57,258 | |
Progressive Corp. | 1,725 | 19,958 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Insurance - continued | |||
RenaissanceRe Holdings Ltd. | 915 | $ 41,202 | |
Torchmark Corp. | 1,845 | 38,007 | |
Transatlantic Holdings, Inc. | 760 | 22,853 | |
Unum Group | 3,650 | 37,157 | |
W.R. Berkley Corp. | 3,002 | 62,472 | |
| 738,325 | ||
Real Estate Investment Trusts - 4.3% | |||
Alexandria Real Estate Equities, Inc. | 800 | 31,968 | |
AMB Property Corp. (SBI) | 580 | 6,908 | |
Annaly Capital Management, Inc. | 7,200 | 100,080 | |
Boston Properties, Inc. | 780 | 28,930 | |
Chimera Investment Corp. | 7,500 | 22,425 | |
Digital Realty Trust, Inc. | 750 | 22,418 | |
Duke Realty LP | 980 | 6,762 | |
Equity Residential (SBI) | 300 | 5,280 | |
Hospitality Properties Trust (SBI) | 2,705 | 30,837 | |
Host Hotels & Resorts, Inc. | 2,530 | 9,361 | |
HRPT Properties Trust (SBI) | 11,665 | 37,678 | |
Kimco Realty Corp. | 291 | 2,575 | |
Liberty Property Trust (SBI) | 2,600 | 47,502 | |
National Retail Properties, Inc. | 1,290 | 18,537 | |
Nationwide Health Properties, Inc. | 1,940 | 39,304 | |
NorthStar Realty Finance Corp. | 6,860 | 13,994 | |
Plum Creek Timber Co., Inc. | 1,950 | 51,149 | |
ProLogis Trust | 3,865 | 22,378 | |
Public Storage | 450 | 24,966 | |
Regency Centers Corp. | 425 | 11,467 | |
SL Green Realty Corp. | 1,680 | 19,522 | |
The Macerich Co. | 2,800 | 31,976 | |
Vornado Realty Trust | 760 | 24,875 | |
| 610,892 | ||
Real Estate Management & Development - 0.1% | |||
Jones Lang LaSalle, Inc. | 500 | 9,960 | |
Thrifts & Mortgage Finance - 0.5% | |||
Hudson City Bancorp, Inc. | 6,350 | 65,850 | |
New York Community Bancorp, Inc. | 1,400 | 13,790 | |
| 79,640 | ||
TOTAL FINANCIALS | 2,063,352 | ||
HEALTH CARE - 10.0% | |||
Biotechnology - 1.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 750 | 25,650 | |
Biogen Idec, Inc. (a) | 600 | 27,624 | |
Cubist Pharmaceuticals, Inc. (a) | 2,645 | 37,585 | |
Martek Biosciences | 1,850 | 34,651 | |
OSI Pharmaceuticals, Inc. (a) | 1,000 | 34,100 | |
| 159,610 | ||
Health Care Equipment & Supplies - 2.9% | |||
C.R. Bard, Inc. | 1,050 | 84,273 | |
| |||
Shares | Value | ||
DENTSPLY International, Inc. | 1,360 | $ 31,443 | |
Edwards Lifesciences Corp. (a) | 1,200 | 66,732 | |
Kinetic Concepts, Inc. (a) | 1,300 | 28,314 | |
Masimo Corp. (a) | 1,275 | 31,862 | |
St. Jude Medical, Inc. (a) | 3,170 | 105,117 | |
Varian Medical Systems, Inc. (a) | 2,000 | 61,020 | |
| 408,761 | ||
Health Care Providers & Services - 4.0% | |||
AMERIGROUP Corp. (a) | 1,340 | 33,205 | |
AmerisourceBergen Corp. | 2,610 | 82,894 | |
Express Scripts, Inc. (a) | 2,300 | 115,690 | |
Humana, Inc. (a) | 2,300 | 54,441 | |
Laboratory Corp. of America Holdings (a) | 1,490 | 81,965 | |
Lincare Holdings, Inc. (a) | 2,575 | 54,255 | |
Owens & Minor, Inc. | 1,400 | 47,194 | |
Quest Diagnostics, Inc. | 2,080 | 95,326 | |
| 564,970 | ||
Life Sciences Tools & Services - 0.8% | |||
Dionex Corp. (a) | 775 | 36,262 | |
Life Technologies Corp. (a) | 2,900 | 84,535 | |
| 120,797 | ||
Pharmaceuticals - 1.2% | |||
Allergan, Inc. | 1,160 | 44,938 | |
Endo Pharmaceuticals Holdings, Inc. (a) | 2,700 | 51,246 | |
Forest Laboratories, Inc. (a) | 1,800 | 38,592 | |
Warner Chilcott Ltd. (a) | 3,400 | 36,890 | |
| 171,666 | ||
TOTAL HEALTH CARE | 1,425,804 | ||
INDUSTRIALS - 11.6% | |||
Aerospace & Defense - 1.9% | |||
Goodrich Corp. | 1,650 | 54,681 | |
L-3 Communications Holdings, Inc. | 1,580 | 106,887 | |
Precision Castparts Corp. | 1,350 | 74,831 | |
Rockwell Collins, Inc. | 360 | 11,232 | |
TransDigm Group, Inc. (a) | 750 | 26,505 | |
| 274,136 | ||
Air Freight & Logistics - 0.9% | |||
C.H. Robinson Worldwide, Inc. | 1,700 | 70,346 | |
Expeditors International of Washington, Inc. | 2,190 | 60,335 | |
| 130,681 | ||
Airlines - 0.5% | |||
Republic Airways Holdings, Inc. (a) | 2,000 | 13,840 | |
Southwest Airlines Co. | 9,170 | 54,011 | |
| 67,851 | ||
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Building Products - 0.6% | |||
Lennox International, Inc. | 1,845 | $ 47,786 | |
Masco Corp. | 6,500 | 33,475 | |
| 81,261 | ||
Commercial Services & Supplies - 1.8% | |||
Comfort Systems USA, Inc. | 1,805 | 17,184 | |
Covanta Holding Corp. (a) | 3,324 | 50,625 | |
Deluxe Corp. | 1,700 | 13,124 | |
Herman Miller, Inc. | 1,800 | 18,144 | |
Pitney Bowes, Inc. | 2,750 | 53,048 | |
R.R. Donnelley & Sons Co. | 1,980 | 15,424 | |
Republic Services, Inc. | 800 | 15,920 | |
Stericycle, Inc. (a) | 1,375 | 65,973 | |
| 249,442 | ||
Construction & Engineering - 1.2% | |||
EMCOR Group, Inc. (a) | 2,220 | 34,210 | |
Fluor Corp. | 1,825 | 60,681 | |
Foster Wheeler AG (a) | 2,435 | 36,622 | |
Jacobs Engineering Group, Inc. (a) | 111 | 3,745 | |
KBR, Inc. | 579 | 7,295 | |
MasTec, Inc. (a) | 3,000 | 28,380 | |
| 170,933 | ||
Electrical Equipment - 0.8% | |||
Cooper Industries Ltd. Class A | 1,490 | 31,424 | |
Hubbell, Inc. Class B | 670 | 17,634 | |
Roper Industries, Inc. | 870 | 35,975 | |
Thomas & Betts Corp. (a) | 990 | 22,681 | |
| 107,714 | ||
Industrial Conglomerates - 0.4% | |||
McDermott International, Inc. (a) | 4,610 | 54,352 | |
Machinery - 2.6% | |||
Cummins, Inc. | 390 | 8,112 | |
Dover Corp. | 1,660 | 41,400 | |
Eaton Corp. | 820 | 29,643 | |
Flowserve Corp. | 1,150 | 58,041 | |
Gardner Denver, Inc. (a) | 1,400 | 26,488 | |
ITT Corp. | 1,800 | 67,230 | |
Joy Global, Inc. | 1,500 | 26,190 | |
Manitowoc Co., Inc. | 3,700 | 15,170 | |
Pall Corp. | 1,750 | 41,598 | |
Parker Hannifin Corp. | 1,865 | 62,235 | |
| 376,107 | ||
Professional Services - 0.3% | |||
FTI Consulting, Inc. (a) | 400 | 14,616 | |
Manpower, Inc. | 1,250 | 34,850 | |
| 49,466 | ||
Road & Rail - 0.2% | |||
CSX Corp. | 920 | 22,706 | |
| |||
Shares | Value | ||
Trading Companies & Distributors - 0.4% | |||
Beacon Roofing Supply, Inc. (a) | 2,500 | $ 27,425 | |
W.W. Grainger, Inc. | 500 | 33,080 | |
| 60,505 | ||
TOTAL INDUSTRIALS | 1,645,154 | ||
INFORMATION TECHNOLOGY - 14.6% | |||
Communications Equipment - 1.2% | |||
Harris Corp. | 2,200 | 82,016 | |
Juniper Networks, Inc. (a) | 4,345 | 61,742 | |
Tellabs, Inc. (a) | 8,200 | 31,160 | |
| 174,918 | ||
Computers & Peripherals - 1.4% | |||
Lexmark International, Inc. Class A (a) | 2,300 | 39,422 | |
NetApp, Inc. (a) | 3,750 | 50,400 | |
Sun Microsystems, Inc. (a) | 5,000 | 23,400 | |
Teradata Corp. (a) | 2,450 | 37,877 | |
Western Digital Corp. (a) | 4,000 | 54,640 | |
| 205,739 | ||
Electronic Equipment & Components - 0.9% | |||
Agilent Technologies, Inc. (a) | 1,945 | 26,977 | |
Arrow Electronics, Inc. (a) | 1,850 | 30,766 | |
Avnet, Inc. (a) | 2,500 | 43,175 | |
Mettler-Toledo International, Inc. (a) | 615 | 32,786 | |
| 133,704 | ||
Internet Software & Services - 0.2% | |||
IAC/InterActiveCorp (a) | 2,280 | 34,040 | |
IT Services - 3.8% | |||
Affiliated Computer Services, Inc. | 1,700 | 79,271 | |
Alliance Data Systems Corp. (a) | 1,700 | 50,320 | |
Computer Sciences Corp. (a) | 1,960 | 68,090 | |
Fidelity National Information Services, Inc. | 2,750 | 48,125 | |
Fiserv, Inc. (a) | 2,030 | 66,219 | |
Hewitt Associates, Inc. Class A (a) | 2,255 | 66,523 | |
MasterCard, Inc. Class A | 135 | 21,334 | |
Metavante Holding Co. (a) | 3,135 | 52,699 | |
Paychex, Inc. | 900 | 19,854 | |
SAIC, Inc. (a) | 3,300 | 62,403 | |
| 534,838 | ||
Office Electronics - 0.2% | |||
Xerox Corp. | 4,190 | 21,704 | |
Semiconductors & Semiconductor Equipment - 3.1% | |||
Altera Corp. | 3,170 | 48,596 | |
Amkor Technology, Inc. (a) | 10,100 | 17,271 | |
Broadcom Corp. Class A (a) | 3,240 | 53,298 | |
Cree, Inc. (a) | 2,500 | 49,100 | |
Integrated Device Technology, Inc. (a) | 2,815 | 12,611 | |
Linear Technology Corp. | 1,845 | 40,221 | |
Marvell Technology Group Ltd. (a) | 9,000 | 67,590 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
MEMC Electronic Materials, Inc. (a) | 570 | $ 8,556 | |
Microchip Technology, Inc. | 1,950 | 36,602 | |
Micron Technology, Inc. (a) | 9,500 | 30,590 | |
National Semiconductor Corp. | 2,635 | 28,722 | |
Xilinx, Inc. | 2,800 | 49,504 | |
| 442,661 | ||
Software - 3.8% | |||
Activision Blizzard, Inc. (a) | 2,000 | 20,060 | |
Autodesk, Inc. (a) | 1,849 | 23,464 | |
BMC Software, Inc. (a) | 3,100 | 91,853 | |
CA, Inc. | 5,570 | 94,412 | |
Cadence Design Systems, Inc. (a) | 3,640 | 15,288 | |
Compuware Corp. (a) | 4,000 | 23,640 | |
Intuit, Inc. (a) | 1,810 | 41,250 | |
Jack Henry & Associates, Inc. | 2,210 | 35,205 | |
Net 1 UEPS Technologies, Inc. (a) | 1,652 | 23,904 | |
Red Hat, Inc. (a) | 4,120 | 56,403 | |
Salesforce.com, Inc. (a) | 1,300 | 36,400 | |
Sybase, Inc. (a) | 1,300 | 35,334 | |
Synopsys, Inc. (a) | 1,960 | 36,515 | |
| 533,728 | ||
TOTAL INFORMATION TECHNOLOGY | 2,081,332 | ||
MATERIALS - 4.7% | |||
Chemicals - 1.9% | |||
Air Products & Chemicals, Inc. | 420 | 19,425 | |
Celanese Corp. Class A | 1,150 | 9,821 | |
FMC Corp. | 1,125 | 45,484 | |
RPM International, Inc. | 2,820 | 30,569 | |
Sigma Aldrich Corp. | 1,530 | 54,621 | |
Terra Industries, Inc. | 2,110 | 54,417 | |
The Scotts Miracle-Gro Co. Class A | 1,930 | 53,905 | |
| 268,242 | ||
Containers & Packaging - 1.8% | |||
Ball Corp. | 1,700 | 68,493 | |
Bemis Co., Inc. | 1,900 | 35,283 | |
Owens-Illinois, Inc. (a) | 2,220 | 34,232 | |
Pactiv Corp. (a) | 3,435 | 54,376 | |
Rock-Tenn Co. Class A | 1,545 | 42,657 | |
Sonoco Products Co. | 1,226 | 23,625 | |
| 258,666 | ||
Metals & Mining - 0.9% | |||
Carpenter Technology Corp. | 1,800 | 24,660 | |
Compass Minerals International, Inc. | 900 | 46,998 | |
Reliance Steel & Aluminum Co. | 2,020 | 48,056 | |
| 119,714 | ||
| |||
Shares | Value | ||
Paper & Forest Products - 0.1% | |||
International Paper Co. | 1,000 | $ 5,690 | |
Weyerhaeuser Co. | 425 | 10,268 | |
| 15,958 | ||
TOTAL MATERIALS | 662,580 | ||
TELECOMMUNICATION SERVICES - 3.6% | |||
Diversified Telecommunication Services - 2.2% | |||
CenturyTel, Inc. | 2,845 | 74,909 | |
Cincinnati Bell, Inc. (a) | 14,630 | 24,286 | |
Embarq Corp. | 2,650 | 92,671 | |
Qwest Communications International, Inc. | 17,270 | 58,545 | |
Windstream Corp. | 7,800 | 58,188 | |
| 308,599 | ||
Wireless Telecommunication Services - 1.4% | |||
American Tower Corp. Class A (a) | 4,480 | 130,458 | |
Crown Castle International Corp. (a) | 2,400 | 42,096 | |
Telephone & Data Systems, Inc. | 690 | 20,355 | |
U.S. Cellular Corp. (a) | 405 | 13,932 | |
| 206,841 | ||
TOTAL TELECOMMUNICATION SERVICES | 515,440 | ||
UTILITIES - 8.2% | |||
Electric Utilities - 2.5% | |||
American Electric Power Co., Inc. | 3,640 | 102,102 | |
DPL, Inc. | 1,977 | 39,738 | |
Edison International | 2,980 | 81,116 | |
IDACORP, Inc. | 1,150 | 27,991 | |
NV Energy, Inc. | 3,400 | 31,518 | |
Pepco Holdings, Inc. | 1,720 | 25,800 | |
PPL Corp. | 870 | 24,264 | |
Progress Energy, Inc. | 870 | 30,815 | |
| 363,344 | ||
Gas Utilities - 0.7% | |||
Energen Corp. | 840 | 22,512 | |
National Fuel Gas Co. New Jersey | 1,100 | 33,341 | |
UGI Corp. | 1,700 | 40,783 | |
| 96,636 | ||
Independent Power Producers & Energy Traders - 1.2% | |||
AES Corp. (a) | 10,200 | 64,260 | |
Constellation Energy Group, Inc. | 630 | 12,449 | |
Mirant Corp. (a) | 1,300 | 15,899 | |
NRG Energy, Inc. (a) | 4,070 | 76,923 | |
| 169,531 | ||
Multi-Utilities - 3.8% | |||
Alliant Energy Corp. | 2,190 | 50,655 | |
CenterPoint Energy, Inc. | 6,350 | 65,532 | |
CMS Energy Corp. | 2,890 | 31,963 | |
Consolidated Edison, Inc. | 2,470 | 89,439 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Multi-Utilities - continued | |||
DTE Energy Co. | 2,400 | $ 64,248 | |
PG&E Corp. | 1,700 | 64,974 | |
Sempra Energy | 2,260 | 93,948 | |
TECO Energy, Inc. | 3,200 | 30,688 | |
Xcel Energy, Inc. | 2,750 | 48,772 | |
| 540,219 | ||
TOTAL UTILITIES | 1,169,730 | ||
TOTAL COMMON STOCKS (Cost $19,587,746) | 13,970,996 |
U.S. Treasury Obligations - 0.4% | ||||
| Principal Amount |
| ||
U.S. Treasury Bills, yield at date of purchase 0.1% to 1.5% 4/9/09 (c) | $ 60,000 | 59,989 |
Money Market Funds - 2.4% | |||
Shares |
| ||
Dreyfus Cash Management Institutional Shares, 1.85% (b) | 340,673 | 340,673 |
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $19,988,362) | 14,371,658 |
NET OTHER ASSETS - (1.0)% | (136,266) | ||
NET ASSETS - 100% | $ 14,235,392 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |||
Purchased | |||||
Equity Index Contracts | |||||
5 CME E-mini S&P Midcap 400 Index Contracts | March 2009 | $ 224,450 | $ (9,614) |
|
The face value of futures purchased as a percentage of net assets - 1.6% |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. |
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $59,989. |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 14,371,658 | $ 14,311,669 | $ 59,989 | $ - |
Other Financial Instruments* | $ (9,614) | $ (9,614) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $419,790 all of which will expire on February 28, 2017. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $1,426,116 of losses recognized during the period November 1, 2008 to February 28, 2009, to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: |
| $ 14,371,658 |
Cash | 16,850 | |
Receivable for investments sold | 70,235 | |
Receivable for fund shares sold | 65,629 | |
Dividends receivable | 32,624 | |
Interest receivable | 242 | |
Total assets | 14,557,238 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 260,921 | |
Payable for fund shares redeemed | 49,622 | |
Accrued management fee | 5,822 | |
Payable for daily variation on futures contracts | 3,540 | |
Other affiliated payables | 1,941 | |
Total liabilities | 321,846 | |
|
|
|
Net Assets | $ 14,235,392 | |
Net Assets consist of: |
| |
Paid in capital | $ 21,750,609 | |
Undistributed net investment income | 30,346 | |
Accumulated undistributed net realized gain (loss) on investments | (1,919,245) | |
Net unrealized appreciation (depreciation) on investments | (5,626,318) | |
Net Assets, for 2,777,889 shares outstanding | $ 14,235,392 | |
Net Asset Value, offering price and redemption price per share ($14,235,392 ÷ 2,777,889 shares) | $ 5.12 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 202,154 |
Interest |
| 10,512 |
Total income |
| 212,666 |
|
|
|
Expenses | ||
Management fee | $ 47,470 | |
Transfer agent fees | 15,962 | |
Independent trustees' compensation | 947 | |
Total expenses before reductions | 64,379 | |
Expense reductions | (21) | 64,358 |
Net investment income (loss) | 148,308 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,740,685) | |
Futures contracts | (165,109) | |
Total net realized gain (loss) |
| (1,905,794) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (5,182,372) | |
Futures contracts | (9,614) | |
Total change in net unrealized appreciation (depreciation) |
| (5,191,986) |
Net gain (loss) | (7,097,780) | |
Net increase (decrease) in net assets resulting from operations | $ (6,949,472) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Mid Cap Enhanced Index Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 148,308 | $ 12,807 |
Net realized gain (loss) | (1,905,794) | (12,365) |
Change in net unrealized appreciation (depreciation) | (5,191,986) | (434,332) |
Net increase (decrease) in net assets resulting from operations | (6,949,472) | (433,890) |
Distributions to shareholders from net investment income | (131,855) | - |
Share transactions | 22,132,191 | 6,410,673 |
Reinvestment of distributions | 124,856 | - |
Cost of shares redeemed | (6,916,010) | (9,623) |
Net increase (decrease) in net assets resulting from share transactions | 15,341,037 | 6,401,050 |
Redemption fees | 8,450 | 72 |
Total increase (decrease) in net assets | 8,268,160 | 5,967,232 |
|
|
|
Net Assets | ||
Beginning of period | 5,967,232 | - |
End of period (including undistributed net investment income of $30,346 and undistributed net investment income of $12,807, respectively) | $ 14,235,392 | $ 5,967,232 |
Other Information Shares | ||
Sold | 3,149,005 | 652,156 |
Issued in reinvestment of distributions | 20,672 | - |
Redeemed | (1,042,897) | (1,047) |
Net increase (decrease) | 2,126,780 | 651,109 |
Financial Highlights
Years ended February 28, | 2009 | 2008 E, G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.16 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .10 | .02 |
Net realized and unrealized gain (loss) | (4.07) | (.86) |
Total from investment operations | (3.97) | (.84) |
Distributions from net investment income | (.08) | - |
Redemption fees added to paid in capital D | .01 | - H |
Net asset value, end of period | $ 5.12 | $ 9.16 |
Total Return B, C | (43.40)% | (8.40)% |
Ratios to Average Net Assets F |
|
|
Expenses before reductions | .60% | .60% A |
Expenses net of fee waivers, if any | .60% | .60% A |
Expenses net of all reductions | .60% | .60% A |
Net investment income (loss) | 1.39% | 1.25% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 14,235 | $ 5,967 |
Portfolio turnover rate | 140% | 16% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period December 20, 2007 (commencement of operations) to February 29, 2008.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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.
G For the year ended February 29.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Small Cap Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
Small Cap Enhanced Index Fund | -41.94% | -41.75% |
A From December 20, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Small Cap Enhanced Index Fund on December 20, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
Annual Report
Fidelity Small Cap Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The U.S. equity markets took it squarely on the chin during the 12 months ending February 28, 2009, battered by global recessionary fears, drum-tight credit markets and the rapid flight of capital away from risk and toward the investment sidelines. Stocks had performed reasonably well up until late last summer, in spite of high energy costs and slowing global economic growth. But beginning in September 2008, a succession of large financial institutions either collapsed, or came close to failing, as they struggled under the weight of toxic, asset-backed securities, which sent the equity markets into a turbulent downward spiral. Even as the federal government began a series of aggressive interventions to rescue the troubled financial services industry and to shore up deteriorating economic conditions, investors remained skittish and the equity markets' sell-off continued. The Standard & Poor's 500SM Index fell 43.32% for the year overall and lost more than 17% in value during the December-February time frame alone. All 10 of the S&P 500®'s market sectors landed deep in negative territory for the 12-month span. Meanwhile, the blue-chip Dow Jones Industrial AverageSM fell by a comparable 40.58% mark, and the small-cap-oriented Russell 2000® Index declined 42.38%. Elsewhere, the technology-heavy NASDAQ Composite® Index dropped 38.77%.
Comments from Jeffrey Adams, who oversees Fidelity® Small Cap Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: For the year ending February 28, 2009, the fund declined 41.94%, outpacing the benchmark Russell 2000 Index. The biggest negative came from stock selection in the health care and information technology sectors. The fund's underweighting in the utilities sector detracted as well. On the positive side, stock selection in materials and consumer discretionary added to results, while the fund's modest consumer discretionary underweighting also helped. Our biggest individual contributor was DVD-by-mail rental company Netflix, whose surprisingly healthy profits resulted in strong stock performance. The fund also benefited from its positions in mortgage-servicing company Ocwen Financial and coal producer Alpha Natural Resources. In contrast, our biggest detractor was Oriental Financial Group, a Puerto Rico-based financial services company that revised its earnings forecast below Wall Street analysts' expectations. In the energy sector, the fund was hampered by its positioning in independent oil and gas producer Petrohawk Energy and energy producer McMoRan Exploration. Underexposure to strong-performing drug-development company Myriad Genetics detracted as well. Neither Alpha Natural Resources nor Petrohawk Energy was in the portfolio at 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.
Annual Report
Fidelity Small Cap Enhanced Index Fund
Investment Changes (Unaudited)
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Ralcorp Holdings, Inc. | 0.9 | 0.7 |
Sybase, Inc. | 0.7 | 0.6 |
Watson Wyatt Worldwide, Inc. Class A | 0.7 | 0.6 |
Netflix, Inc. | 0.7 | 0.4 |
Knight Capital Group, Inc. | 0.7 | 0.3 |
Aeropostale, Inc. | 0.6 | 0.6 |
Flowers Foods, Inc. | 0.6 | 0.5 |
OSI Pharmaceuticals, Inc. | 0.6 | 0.5 |
Rock-Tenn Co. Class A | 0.6 | 0.4 |
WGL Holdings, Inc. | 0.6 | 0.3 |
| 6.7 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Financials | 19.2 | 17.2 |
Information Technology | 17.2 | 16.4 |
Health Care | 15.2 | 12.8 |
Industrials | 14.2 | 17.5 |
Consumer Discretionary | 11.6 | 11.0 |
Consumer Staples | 4.5 | 3.6 |
Materials | 3.9 | 4.3 |
Energy | 3.9 | 6.2 |
Utilities | 3.8 | 2.3 |
Telecommunication Services | 2.3 | 2.2 |
Annual Report
Fidelity Small Cap Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 11.6% | |||
Auto Components - 0.4% | |||
Cooper Tire & Rubber Co. | 2,445 | $ 11,125 | |
Fuel Systems Solutions, Inc. (a) | 7,280 | 144,217 | |
Stoneridge, Inc. (a) | 25,400 | 46,228 | |
Superior Industries International, Inc. | 2,660 | 27,105 | |
| 228,675 | ||
Diversified Consumer Services - 1.7% | |||
American Public Education, Inc. (a) | 5,450 | 203,558 | |
DeVry, Inc. | 4,000 | 207,800 | |
Jackson Hewitt Tax Service, Inc. | 16,800 | 125,664 | |
Regis Corp. | 11,500 | 144,900 | |
Sotheby's Class A (ltd. vtg.) | 4,490 | 30,128 | |
Stewart Enterprises, Inc. Class A | 27,955 | 64,856 | |
Strayer Education, Inc. | 1,130 | 191,818 | |
| 968,724 | ||
Hotels, Restaurants & Leisure - 2.2% | |||
Bally Technologies, Inc. (a) | 12,750 | 237,150 | |
Bob Evans Farms, Inc. | 13,125 | 242,419 | |
Buffalo Wild Wings, Inc. (a) | 5,680 | 175,342 | |
Denny's Corp. (a) | 85,070 | 136,112 | |
Domino's Pizza, Inc. (a) | 18,000 | 122,940 | |
Jack in the Box, Inc. (a) | 2,625 | 51,030 | |
Papa John's International, Inc. (a) | 12,840 | 284,406 | |
Speedway Motorsports, Inc. | 996 | 11,823 | |
| 1,261,222 | ||
Household Durables - 0.3% | |||
Blyth, Inc. | 4,500 | 91,845 | |
Furniture Brands International, Inc. | 19,900 | 27,064 | |
Universal Electronics, Inc. (a) | 5,415 | 84,312 | |
| 203,221 | ||
Internet & Catalog Retail - 0.9% | |||
Netflix, Inc. (a) | 10,585 | 382,542 | |
NutriSystem, Inc. | 9,220 | 118,938 | |
| 501,480 | ||
Leisure Equipment & Products - 0.4% | |||
JAKKS Pacific, Inc. (a) | 9,000 | 114,030 | |
Polaris Industries, Inc. | 6,625 | 121,966 | |
| 235,996 | ||
Media - 1.0% | |||
Belo Corp. Series A | 19,750 | 15,800 | |
Cox Radio, Inc. Class A (a) | 16,000 | 86,080 | |
Interactive Data Corp. | 12,510 | 282,976 | |
Marvel Entertainment, Inc. (a) | 6,215 | 160,720 | |
Sinclair Broadcast Group, Inc. Class A | 34,100 | 38,192 | |
| 583,768 | ||
Specialty Retail - 3.8% | |||
Aeropostale, Inc. (a) | 16,300 | 377,997 | |
Christopher & Banks Corp. | 18,120 | 70,487 | |
Dress Barn, Inc. (a) | 15,020 | 148,998 | |
| |||
Shares | Value | ||
Finish Line, Inc. Class A | 28,100 | $ 116,615 | |
Genesco, Inc. (a) | 14,110 | 201,773 | |
Gymboree Corp. (a) | 8,830 | 227,108 | |
Hot Topic, Inc. (a) | 15,000 | 133,200 | |
Jo-Ann Stores, Inc. (a) | 13,615 | 163,925 | |
Midas, Inc. (a) | 8,790 | 64,607 | |
Talbots, Inc. | 39,500 | 100,330 | |
The Buckle, Inc. | 6,255 | 148,431 | |
Tractor Supply Co. (a) | 6,725 | 210,089 | |
Wet Seal, Inc. Class A (a) | 83,040 | 207,600 | |
| 2,171,160 | ||
Textiles, Apparel & Luxury Goods - 0.9% | |||
Deckers Outdoor Corp. (a) | 2,950 | 121,747 | |
FGX International Ltd. (a) | 11,000 | 93,280 | |
Fossil, Inc. (a) | 10,935 | 138,000 | |
Maidenform Brands, Inc. (a) | 14,075 | 122,875 | |
Quiksilver, Inc. (a) | 13,518 | 16,898 | |
| 492,800 | ||
TOTAL CONSUMER DISCRETIONARY | 6,647,046 | ||
CONSUMER STAPLES - 4.5% | |||
Food & Staples Retailing - 0.9% | |||
Casey's General Stores, Inc. | 13,700 | 272,767 | |
Nash-Finch Co. | 7,230 | 251,893 | |
| 524,660 | ||
Food Products - 2.8% | |||
American Dairy, Inc. (a) | 8,000 | 92,080 | |
Calavo Growers, Inc. | 7,500 | 88,950 | |
Darling International, Inc. (a) | 35,100 | 151,983 | |
Diamond Foods, Inc. | 5,250 | 112,613 | |
Flowers Foods, Inc. | 16,120 | 359,637 | |
Ralcorp Holdings, Inc. (a) | 8,200 | 496,920 | |
TreeHouse Foods, Inc. (a) | 11,190 | 298,661 | |
| 1,600,844 | ||
Personal Products - 0.8% | |||
Chattem, Inc. (a) | 5,210 | 330,470 | |
Prestige Brands Holdings, Inc. (a) | 21,450 | 117,332 | |
| 447,802 | ||
TOTAL CONSUMER STAPLES | 2,573,306 | ||
ENERGY - 3.9% | |||
Energy Equipment & Services - 1.2% | |||
Carbo Ceramics, Inc. | 5,500 | 191,180 | |
Gulfmark Offshore, Inc. (a) | 6,000 | 125,340 | |
IHS, Inc. Class A (a) | 3,280 | 133,594 | |
Newpark Resources, Inc. (a) | 26,785 | 79,551 | |
T-3 Energy Services, Inc. (a) | 1,510 | 16,625 | |
Trico Marine Services, Inc. (a) | 15,050 | 49,214 | |
Willbros Group, Inc. (a) | 12,500 | 89,750 | |
| 685,254 | ||
Common Stocks - continued | |||
Shares | Value | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - 2.7% | |||
Berry Petroleum Co. Class A | 10,000 | $ 66,500 | |
Concho Resources, Inc. (a) | 8,970 | 178,952 | |
Endeavor International Corp. (a) | 38,930 | 28,030 | |
Gran Tierra Energy, Inc. (a) | 35,593 | 82,576 | |
Knightsbridge Tankers Ltd. | 11,000 | 144,870 | |
Mariner Energy, Inc. (a) | 2,810 | 25,993 | |
McMoRan Exploration Co. (a) | 25,400 | 116,586 | |
Nordic American Tanker Shipping Ltd. | 7,270 | 185,603 | |
Stone Energy Corp. (a) | 13,390 | 53,024 | |
Swift Energy Co. (a) | 3,449 | 24,798 | |
Teekay Tankers Ltd. | 20,400 | 234,600 | |
Vaalco Energy, Inc. (a) | 21,000 | 119,700 | |
Western Refining, Inc. | 10,000 | 113,500 | |
World Fuel Services Corp. | 5,500 | 159,555 | |
| 1,534,287 | ||
TOTAL ENERGY | 2,219,541 | ||
FINANCIALS - 19.2% | |||
Capital Markets - 2.3% | |||
Apollo Investment Corp. | 5,160 | 21,311 | |
BlackRock Kelso Capital Corp. | 18,060 | 67,725 | |
Hercules Technology Growth Capital, Inc. | 24,100 | 104,353 | |
Knight Capital Group, Inc. Class A (a) | 21,500 | 378,185 | |
MVC Capital, Inc. | 21,100 | 167,745 | |
optionsXpress Holdings, Inc. | 15,245 | 150,468 | |
Patriot Capital Funding, Inc. | 10,690 | 19,242 | |
PennantPark Investment Corp. | 22,120 | 66,360 | |
Penson Worldwide, Inc. (a) | 14,880 | 71,424 | |
Prospect Capital Corp. | 26,000 | 210,340 | |
Waddell & Reed Financial, Inc. Class A | 3,670 | 51,820 | |
| 1,308,973 | ||
Commercial Banks - 6.1% | |||
Community Bank System, Inc. | 14,740 | 252,201 | |
Community Trust Bancorp, Inc. | 133 | 3,446 | |
First Bancorp, Puerto Rico | 27,400 | 113,984 | |
First Financial Bancorp, Ohio | 10,610 | 81,591 | |
First Financial Bankshares, Inc. | 6,020 | 258,980 | |
Glacier Bancorp, Inc. | 11,640 | 179,140 | |
Green Bankshares, Inc. | 4,666 | 33,362 | |
Home Bancshares, Inc. | 10,655 | 194,987 | |
Lakeland Financial Corp. | 5,755 | 100,425 | |
MainSource Financial Group, Inc. | 10,115 | 56,543 | |
National Penn Bancshares, Inc. | 23,705 | 175,654 | |
Old Second Bancorp, Inc. | 8,090 | 49,268 | |
Oriental Financial Group, Inc. | 23,500 | 41,125 | |
Pacific Capital Bancorp | 19,130 | 138,501 | |
Pennsylvania Communication Bancorp, Inc. (a) | 8,600 | 125,990 | |
| |||
Shares | Value | ||
Prosperity Bancshares, Inc. | 9,140 | $ 233,253 | |
Renasant Corp. | 8,100 | 87,237 | |
S&T Bancorp, Inc. | 10,280 | 233,253 | |
Santander Bancorp | 20,900 | 184,338 | |
Signature Bank, New York (a) | 5,500 | 137,555 | |
Smithtown Bancorp, Inc. | 7,940 | 88,769 | |
Suffolk Bancorp | 7,380 | 191,954 | |
SVB Financial Group (a) | 4,830 | 78,971 | |
Tompkins Financial Corp. | 5,300 | 212,000 | |
Virginia Commerce Bancorp, Inc. | 15,200 | 60,648 | |
WesBanco, Inc. | 10,485 | 185,899 | |
| 3,499,074 | ||
Consumer Finance - 0.4% | |||
Dollar Financial Corp. (a) | 14,500 | 88,160 | |
EZCORP, Inc. (non-vtg.) Class A (a) | 15,250 | 156,770 | |
| 244,930 | ||
Diversified Financial Services - 0.1% | |||
Encore Capital Group, Inc. (a) | 14,115 | 56,037 | |
Insurance - 4.0% | |||
Amerisafe, Inc. (a) | 15,900 | 230,550 | |
Aspen Insurance Holdings Ltd. | 14,550 | 317,045 | |
Assured Guaranty Ltd. | 15,990 | 70,676 | |
FBL Financial Group, Inc. Class A | 2,780 | 8,423 | |
Harleysville Group, Inc. | 6,180 | 183,917 | |
IPC Holdings Ltd. | 8,050 | 204,551 | |
Maiden Holdings Ltd. | 54,025 | 240,952 | |
Max Capital Group Ltd. | 2,420 | 39,930 | |
Navigators Group, Inc. (a) | 5,200 | 271,596 | |
Platinum Underwriters Holdings Ltd. | 9,940 | 278,718 | |
RLI Corp. | 5,475 | 268,166 | |
SeaBright Insurance Holdings, Inc. (a) | 18,580 | 180,598 | |
| 2,295,122 | ||
Real Estate Investment Trusts - 5.1% | |||
Alexandria Real Estate Equities, Inc. | 1,120 | 44,755 | |
American Campus Communities, Inc. | 6,000 | 102,720 | |
Ashford Hospitality Trust, Inc. | 32,615 | 32,615 | |
BioMed Realty Trust, Inc. | 20,700 | 176,571 | |
Capstead Mortgage Corp. | 26,250 | 263,025 | |
Digital Realty Trust, Inc. | 4,310 | 128,826 | |
Extra Space Storage, Inc. | 23,930 | 150,041 | |
First Industrial Realty Trust, Inc. | 3,730 | 8,243 | |
Hatteras Financial Corp. | 7,780 | 185,553 | |
Highwoods Properties, Inc. (SBI) | 12,600 | 238,014 | |
Home Properties, Inc. | 3,000 | 79,620 | |
LaSalle Hotel Properties (SBI) | 11,020 | 58,626 | |
Lexington Corporate Properties Trust | 25,320 | 81,530 | |
Mission West Properties, Inc. | 7,270 | 51,399 | |
National Retail Properties, Inc. | 18,660 | 268,144 | |
Nationwide Health Properties, Inc. | 7,000 | 141,820 | |
NorthStar Realty Finance Corp. | 40,610 | 82,844 | |
Omega Healthcare Investors, Inc. | 21,570 | 283,214 | |
Parkway Properties, Inc. | 5,420 | 63,035 | |
Common Stocks - continued | |||
Shares | Value | ||
FINANCIALS - continued | |||
Real Estate Investment Trusts - continued | |||
Pennsylvania Real Estate Investment Trust (SBI) | 13,000 | $ 39,650 | |
PS Business Parks, Inc. | 3,925 | 135,020 | |
Realty Income Corp. | 12,400 | 217,372 | |
Senior Housing Properties Trust (SBI) | 3,741 | 47,211 | |
Sunstone Hotel Investors, Inc. | 29,163 | 63,867 | |
| 2,943,715 | ||
Thrifts & Mortgage Finance - 1.2% | |||
ESSA Bancorp, Inc. | 4,400 | 52,844 | |
Flushing Financial Corp. | 3,130 | 19,218 | |
Ocwen Financial Corp. (a) | 27,650 | 252,445 | |
Provident Financial Services, Inc. | 19,080 | 178,207 | |
United Financial Bancorp, Inc. | 10,180 | 131,017 | |
WSFS Financial Corp. | 3,475 | 76,763 | |
| 710,494 | ||
TOTAL FINANCIALS | 11,058,345 | ||
HEALTH CARE - 15.2% | |||
Biotechnology - 4.3% | |||
Alexion Pharmaceuticals, Inc. (a) | 3,610 | 123,462 | |
Allos Therapeutics, Inc. (a) | 13,000 | 73,320 | |
Alnylam Pharmaceuticals, Inc. (a) | 14,705 | 271,160 | |
ARIAD Pharmaceuticals, Inc. (a) | 87,160 | 96,748 | |
Cubist Pharmaceuticals, Inc. (a) | 10,200 | 144,942 | |
Dendreon Corp. (a) | 16,000 | 48,800 | |
GTx, Inc. (a) | 6,000 | 55,860 | |
Idera Pharmaceuticals, Inc. (a) | 16,000 | 89,280 | |
Isis Pharmaceuticals, Inc. (a) | 24,500 | 315,070 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 20,500 | 55,555 | |
Martek Biosciences | 7,655 | 143,378 | |
Medarex, Inc. (a) | 3,600 | 14,076 | |
Momenta Pharmaceuticals, Inc. (a) | 14,500 | 139,200 | |
Myriad Genetics, Inc. (a) | 2,500 | 197,125 | |
ONYX Pharmaceuticals, Inc. (a) | 1,080 | 32,389 | |
OSI Pharmaceuticals, Inc. (a) | 10,200 | 347,820 | |
PDL BioPharma, Inc. | 8,000 | 46,960 | |
Regeneron Pharmaceuticals, Inc. (a) | 8,935 | 127,324 | |
Synta Pharmaceuticals Corp. (a) | 22,275 | 30,294 | |
Theravance, Inc. (a) | 4,500 | 62,730 | |
United Therapeutics Corp. (a) | 885 | 59,392 | |
| 2,474,885 | ||
Health Care Equipment & Supplies - 3.6% | |||
American Medical Systems Holdings, Inc. (a) | 17,060 | 176,571 | |
Cardiac Science Corp. (a) | 23,700 | 86,268 | |
CONMED Corp. (a) | 5,890 | 80,045 | |
Cryolife, Inc. (a) | 17,500 | 88,375 | |
Invacare Corp. | 12,640 | 202,746 | |
Masimo Corp. (a) | 13,040 | 325,870 | |
| |||
Shares | Value | ||
Meridian Bioscience, Inc. | 12,720 | $ 255,163 | |
Merit Medical Systems, Inc. (a) | 18,000 | 200,520 | |
Quidel Corp. (a) | 17,600 | 194,304 | |
Somanetics Corp. (a) | 14,830 | 180,778 | |
Steris Corp. | 11,920 | 274,875 | |
| 2,065,515 | ||
Health Care Providers & Services - 5.3% | |||
Amedisys, Inc. (a) | 4,740 | 155,045 | |
AMERIGROUP Corp. (a) | 5,645 | 139,883 | |
AMN Healthcare Services, Inc. (a) | 23,630 | 153,831 | |
AmSurg Corp. (a) | 10,320 | 161,198 | |
Centene Corp. (a) | 14,100 | 239,418 | |
Chemed Corp. | 6,515 | 259,362 | |
Cross Country Healthcare, Inc. (a) | 14,500 | 107,300 | |
Gentiva Health Services, Inc. (a) | 4,500 | 77,985 | |
Hanger Orthopedic Group, Inc. (a) | 10,380 | 138,054 | |
HealthSouth Corp. (a) | 30,000 | 235,500 | |
Magellan Health Services, Inc. (a) | 7,600 | 252,016 | |
Molina Healthcare, Inc. (a) | 11,400 | 213,522 | |
NightHawk Radiology Holdings, Inc. (a) | 29,100 | 77,406 | |
Owens & Minor, Inc. | 8,940 | 301,367 | |
PharMerica Corp. (a) | 15,350 | 257,573 | |
RehabCare Group, Inc. (a) | 15,585 | 228,009 | |
Skilled Healthcare Group, Inc. | 5,000 | 42,350 | |
| 3,039,819 | ||
Life Sciences Tools & Services - 0.8% | |||
Albany Molecular Research, Inc. (a) | 7,040 | 61,037 | |
Bio-Rad Laboratories, Inc. Class A (a) | 2,460 | 137,022 | |
Dionex Corp. (a) | 5,700 | 266,703 | |
| 464,762 | ||
Pharmaceuticals - 1.2% | |||
Adolor Corp. (a) | 30,210 | 60,420 | |
DepoMed, Inc. (a) | 62,330 | 109,078 | |
Medicines Co. (a) | 11,180 | 137,179 | |
Medicis Pharmaceutical Corp. Class A | 12,000 | 135,360 | |
Noven Pharmaceuticals, Inc. (a) | 16,300 | 132,519 | |
ViroPharma, Inc. (a) | 24,715 | 102,567 | |
XenoPort, Inc. (a) | 75 | 1,567 | |
| 678,690 | ||
TOTAL HEALTH CARE | 8,723,671 | ||
INDUSTRIALS - 14.2% | |||
Aerospace & Defense - 2.4% | |||
Ceradyne, Inc. (a) | 1,043 | 17,898 | |
Cubic Corp. | 9,250 | 241,055 | |
Curtiss-Wright Corp. | 872 | 23,186 | |
Ducommun, Inc. | 10,000 | 127,200 | |
Esterline Technologies Corp. (a) | 7,700 | 195,118 | |
Hexcel Corp. (a) | 4,705 | 29,218 | |
Stanley, Inc. (a) | 7,000 | 217,070 | |
Common Stocks - continued | |||
Shares | Value | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Teledyne Technologies, Inc. (a) | 8,000 | $ 183,280 | |
TransDigm Group, Inc. (a) | 9,600 | 339,264 | |
| 1,373,289 | ||
Air Freight & Logistics - 0.4% | |||
Hub Group, Inc. Class A (a) | 11,670 | 209,593 | |
Pacer International, Inc. | 15,880 | 46,528 | |
| 256,121 | ||
Airlines - 0.2% | |||
SkyWest, Inc. | 14,420 | 147,661 | |
Building Products - 0.7% | |||
Aaon, Inc. | 9,000 | 139,680 | |
Gibraltar Industries, Inc. | 18,520 | 121,491 | |
Insteel Industries, Inc. | 20,550 | 129,465 | |
| 390,636 | ||
Commercial Services & Supplies - 1.3% | |||
ATC Technology Corp. (a) | 13,925 | 144,959 | |
Cenveo, Inc. (a) | 37,950 | 108,158 | |
Comfort Systems USA, Inc. | 24,540 | 233,621 | |
Deluxe Corp. | 15,300 | 118,116 | |
Knoll, Inc. | 21,180 | 139,788 | |
| 744,642 | ||
Construction & Engineering - 1.2% | |||
EMCOR Group, Inc. (a) | 15,210 | 234,386 | |
MasTec, Inc. (a) | 22,210 | 210,107 | |
Michael Baker Corp. (a) | 5,205 | 166,612 | |
Sterling Construction Co., Inc. (a) | 4,000 | 59,760 | |
| 670,865 | ||
Electrical Equipment - 1.7% | |||
Acuity Brands, Inc. | 6,310 | 144,625 | |
Belden, Inc. | 8,780 | 93,683 | |
Brady Corp. Class A | 9,525 | 163,163 | |
Encore Wire Corp. | 7,614 | 137,052 | |
GrafTech International Ltd. (a) | 28,320 | 160,008 | |
Ultralife Corp. (a) | 5,000 | 36,850 | |
Woodward Governor Co. | 12,820 | 220,760 | |
| 956,141 | ||
Machinery - 2.8% | |||
Actuant Corp. Class A | 9,470 | 97,446 | |
Chart Industries, Inc. (a) | 11,000 | 70,620 | |
CIRCOR International, Inc. | 8,785 | 195,291 | |
Columbus McKinnon Corp. (NY Shares) (a) | 13,670 | 119,886 | |
Gorman-Rupp Co. | 1,460 | 25,827 | |
Graham Corp. | 8,385 | 68,757 | |
Middleby Corp. (a) | 5,360 | 116,580 | |
Nordson Corp. | 5,930 | 147,657 | |
Robbins & Myers, Inc. | 13,600 | 219,368 | |
Valmont Industries, Inc. | 1,730 | 75,359 | |
| |||
Shares | Value | ||
Wabtec Corp. | 10,680 | $ 285,797 | |
Watts Water Technologies, Inc. Class A | 10,800 | 183,276 | |
| 1,605,864 | ||
Marine - 0.1% | |||
Horizon Lines, Inc. Class A | 11,370 | 38,658 | |
Professional Services - 2.1% | |||
Administaff, Inc. | 5,420 | 105,473 | |
Comsys IT Partners, Inc. (a) | 22,600 | 57,404 | |
Heidrick & Struggles International, Inc. | 7,490 | 120,140 | |
ICF International, Inc. (a) | 4,000 | 95,960 | |
Korn/Ferry International (a) | 6,690 | 61,816 | |
MPS Group, Inc. (a) | 16,450 | 81,757 | |
Navigant Consulting, Inc. (a) | 14,600 | 189,362 | |
On Assignment, Inc. (a) | 40,200 | 94,872 | |
Watson Wyatt Worldwide, Inc. Class A | 7,900 | 387,969 | |
| 1,194,753 | ||
Road & Rail - 0.6% | |||
Arkansas Best Corp. | 8,430 | 146,851 | |
Werner Enterprises, Inc. | 15,425 | 210,089 | |
| 356,940 | ||
Trading Companies & Distributors - 0.7% | |||
Applied Industrial Technologies, Inc. | 10,680 | 172,162 | |
Beacon Roofing Supply, Inc. (a) | 22,700 | 249,019 | |
| 421,181 | ||
TOTAL INDUSTRIALS | 8,156,751 | ||
INFORMATION TECHNOLOGY - 17.2% | |||
Communications Equipment - 3.1% | |||
3Com Corp. (a) | 129,360 | 285,886 | |
Adtran, Inc. | 15,300 | 220,932 | |
Avocent Corp. (a) | 8,500 | 101,830 | |
BigBand Networks, Inc. (a) | 49,000 | 266,560 | |
Blue Coat Systems, Inc. (a) | 13,600 | 149,328 | |
DG FastChannel, Inc. (a) | 7,000 | 108,710 | |
Emulex Corp. (a) | 24,020 | 126,345 | |
Polycom, Inc. (a) | 15,940 | 212,002 | |
Tekelec (a) | 23,780 | 291,543 | |
ViaSat, Inc. (a) | 1,280 | 23,424 | |
| 1,786,560 | ||
Computers & Peripherals - 0.9% | |||
Data Domain, Inc. (a) | 5,000 | 64,900 | |
Electronics for Imaging, Inc. (a) | 12,260 | 109,114 | |
Novatel Wireless, Inc. (a) | 25,930 | 141,578 | |
Rackable Systems, Inc. (a) | 26,270 | 96,411 | |
Synaptics, Inc. (a) | 6,000 | 124,500 | |
| 536,503 | ||
Electronic Equipment & Components - 1.2% | |||
Anixter International, Inc. (a) | 4,675 | 137,492 | |
CPI International, Inc. (a) | 2,707 | 19,951 | |
CTS Corp. | 14,340 | 45,171 | |
Daktronics, Inc. | 16,000 | 109,760 | |
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
L-1 Identity Solutions, Inc. (a) | 16,000 | $ 73,600 | |
Mercury Computer Systems, Inc. (a) | 19,120 | 117,970 | |
Multi-Fineline Electronix, Inc. (a) | 4,250 | 60,648 | |
OSI Systems, Inc. (a) | 6,500 | 102,700 | |
TTM Technologies, Inc. (a) | 7,500 | 34,575 | |
| 701,867 | ||
Internet Software & Services - 2.6% | |||
Digital River, Inc. (a) | 7,000 | 167,440 | |
EarthLink, Inc. (a) | 45,585 | 287,186 | |
InfoSpace, Inc. (a) | 24,925 | 131,853 | |
Interwoven, Inc. (a) | 16,900 | 271,583 | |
j2 Global Communications, Inc. (a) | 8,700 | 162,951 | |
LoopNet, Inc. (a) | 14,310 | 83,857 | |
NIC, Inc. | 16,450 | 81,921 | |
SonicWALL, Inc. (a) | 22,000 | 97,240 | |
United Online, Inc. | 30,440 | 141,850 | |
Vignette Corp. (a) | 10,348 | 68,400 | |
| 1,494,281 | ||
IT Services - 2.0% | |||
Acxiom Corp. | 30,820 | 255,190 | |
CSG Systems International, Inc. (a) | 11,820 | 159,806 | |
Global Cash Access Holdings, Inc. (a) | 22,200 | 62,382 | |
Maximus, Inc. | 6,695 | 246,711 | |
RightNow Technologies, Inc. (a) | 9,500 | 75,525 | |
SAIC, Inc. (a) | 11,070 | 209,334 | |
Sapient Corp. (a) | 19,700 | 75,451 | |
Virtusa Corp. (a) | 9,000 | 55,170 | |
| 1,139,569 | ||
Semiconductors & Semiconductor Equipment - 2.9% | |||
Advanced Energy Industries, Inc. (a) | 3,500 | 23,660 | |
Amkor Technology, Inc. (a) | 52,000 | 88,920 | |
Applied Micro Circuits Corp. (a) | 23,700 | 85,557 | |
Atheros Communications, Inc. (a) | 14,350 | 173,348 | |
IXYS Corp. | 7,500 | 63,225 | |
MKS Instruments, Inc. (a) | 11,560 | 145,540 | |
PMC-Sierra, Inc. (a) | 21,615 | 110,453 | |
Power Integrations, Inc. | 10,825 | 198,639 | |
Rubicon Technology, Inc. (a) | 6,500 | 25,870 | |
Sigma Designs, Inc. (a) | 10,500 | 144,060 | |
Silicon Image, Inc. (a) | 49,500 | 114,840 | |
Skyworks Solutions, Inc. (a) | 46,405 | 301,633 | |
Ultratech, Inc. (a) | 8,195 | 89,981 | |
Veeco Instruments, Inc. (a) | 16,500 | 70,290 | |
| 1,636,016 | ||
Software - 4.5% | |||
Actuate Corp. (a) | 15,000 | 53,700 | |
Ansys, Inc. (a) | 5,625 | 113,456 | |
Jack Henry & Associates, Inc. | 15,900 | 253,287 | |
JDA Software Group, Inc. (a) | 22,000 | 213,400 | |
| |||
Shares | Value | ||
Macrovision Solutions Corp. (a) | 1,380 | $ 21,707 | |
Manhattan Associates, Inc. (a) | 11,300 | 167,353 | |
MICROS Systems, Inc. (a) | 3,750 | 60,300 | |
MicroStrategy, Inc. Class A (a) | 2,710 | 98,996 | |
Net 1 UEPS Technologies, Inc. (a) | 10,500 | 151,935 | |
Parametric Technology Corp. (a) | 16,285 | 132,560 | |
Quest Software, Inc. (a) | 14,400 | 162,720 | |
Solera Holdings, Inc. (a) | 14,300 | 297,297 | |
SPSS, Inc. (a) | 9,040 | 226,994 | |
Sybase, Inc. (a) | 15,600 | 424,008 | |
TeleCommunication Systems, Inc. | 9,000 | 74,250 | |
TIBCO Software, Inc. (a) | 10,430 | 50,377 | |
Vasco Data Security International, Inc. (a) | 17,230 | 85,116 | |
| 2,587,456 | ||
TOTAL INFORMATION TECHNOLOGY | 9,882,252 | ||
MATERIALS - 3.9% | |||
Chemicals - 1.2% | |||
Ashland, Inc. | 1,073 | 6,341 | |
Calgon Carbon Corp. (a) | 10,000 | 146,500 | |
H.B. Fuller Co. | 15,335 | 174,819 | |
Innophos Holdings, Inc. | 13,275 | 140,981 | |
Innospec, Inc. | 19,000 | 76,760 | |
NewMarket Corp. | 3,500 | 120,995 | |
Spartech Corp. | 11,500 | 28,520 | |
W.R. Grace & Co. (a) | 410 | 2,296 | |
| 697,212 | ||
Containers & Packaging - 1.2% | |||
Rock-Tenn Co. Class A | 12,490 | 344,849 | |
Silgan Holdings, Inc. | 6,630 | 325,268 | |
| 670,117 | ||
Metals & Mining - 1.0% | |||
Compass Minerals International, Inc. | 6,120 | 319,586 | |
Universal Stainless & Alloy Products, Inc. (a) | 8,310 | 84,762 | |
Worthington Industries, Inc. | 23,780 | 194,996 | |
| 599,344 | ||
Paper & Forest Products - 0.5% | |||
Buckeye Technologies, Inc. (a) | 45,450 | 102,717 | |
Glatfelter | 25,230 | 156,931 | |
| 259,648 | ||
TOTAL MATERIALS | 2,226,321 | ||
TELECOMMUNICATION SERVICES - 2.3% | |||
Diversified Telecommunication Services - 1.4% | |||
Cincinnati Bell, Inc. (a) | 129,060 | 214,240 | |
Consolidated Communications Holdings, Inc. | 16,025 | 154,962 | |
Common Stocks - continued | |||
Shares | Value | ||
TELECOMMUNICATION SERVICES - continued | |||
Diversified Telecommunication Services - continued | |||
Iowa Telecommunication Services, Inc. | 19,200 | $ 260,352 | |
NTELOS Holdings Corp. | 10,270 | 196,876 | |
| 826,430 | ||
Wireless Telecommunication Services - 0.9% | |||
Syniverse Holdings, Inc. (a) | 21,915 | 331,574 | |
USA Mobility, Inc. | 21,400 | 195,596 | |
| 527,170 | ||
TOTAL TELECOMMUNICATION SERVICES | 1,353,600 | ||
UTILITIES - 3.8% | |||
Electric Utilities - 1.2% | |||
Central Vermont Public Service Corp. | 4,880 | 100,528 | |
El Paso Electric Co. (a) | 17,830 | 251,938 | |
Portland General Electric Co. | 15,760 | 258,779 | |
Westar Energy, Inc. | 3,320 | 56,108 | |
| 667,353 | ||
Gas Utilities - 1.8% | |||
Chesapeake Utilities Corp. | 2,750 | 73,013 | |
New Jersey Resources Corp. | 5,700 | 199,899 | |
Northwest Natural Gas Co. | 6,235 | 255,323 | |
Southwest Gas Corp. | 7,920 | 154,361 | |
WGL Holdings, Inc. | 11,190 | 339,728 | |
| 1,022,324 | ||
Independent Power Producers & Energy Traders - 0.1% | |||
Black Hills Corp. | 5,005 | 89,139 | |
Multi-Utilities - 0.3% | |||
Avista Corp. | 12,465 | 178,374 | |
Water Utilities - 0.4% | |||
American States Water Co. | 7,000 | 234,850 | |
TOTAL UTILITIES | 2,192,040 | ||
TOTAL COMMON STOCKS (Cost $79,818,539) | 55,032,873 |
U.S. Treasury Obligations - 0.8% | ||||
| Principal Amount | Value | ||
U.S. Treasury Bills, yield at date of purchase 0.23% to 1.5% 4/2/09 to 6/4/09 (c) | $ 490,000 | $ 489,876 |
Money Market Funds - 3.1% | |||
Shares |
| ||
Dreyfus Cash Management Institutional Shares, 1.85% (b) | 1,766,006 | 1,766,006 |
TOTAL INVESTMENT PORTFOLIO - 99.7% (Cost $82,073,996) | 57,288,755 |
NET OTHER ASSETS - 0.3% | 154,300 | ||
NET ASSETS - 100% | $ 57,443,055 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |||
Purchased | |||||
Equity Index Contracts | |||||
60 NYFE Russell 2000 Mini Index Contracts | March 2009 | $ 2,355,000 | $ (423,036) |
|
The face value of futures purchased as a percentage of net assets - 4.1% |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. |
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $489,889. |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 57,288,755 | $ 56,798,866 | $ 489,889 | $ - |
Other Financial Instruments* | $ (423,036) | $ (423,036) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $480,659 all of which will expire on February 28, 2017. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $5,085,961 of losses recognized during the period November 1, 2008 to February 28, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Small Cap Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: |
| $ 57,288,755 |
Receivable for investments sold | 151,368 | |
Receivable for fund shares sold | 196,361 | |
Dividends receivable | 68,592 | |
Interest receivable | 2,375 | |
Other receivables | 64 | |
Total assets | 57,707,515 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 21,530 | |
Payable for investments purchased | 28,652 | |
Payable for fund shares redeemed | 169,722 | |
Accrued management fee | 28,061 | |
Payable for daily variation on futures contracts | 8,400 | |
Other affiliated payables | 8,095 | |
Total liabilities | 264,460 | |
|
|
|
Net Assets | $ 57,443,055 | |
Net Assets consist of: |
| |
Paid in capital | $ 87,860,885 | |
Undistributed net investment income | 17,451 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,227,004) | |
Net unrealized appreciation (depreciation) on investments | (25,208,277) | |
Net Assets, for 11,043,771 shares outstanding | $ 57,443,055 | |
Net Asset Value, offering price and redemption price per share ($57,443,055 ÷ 11,043,771 shares) | $ 5.20 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 591,602 |
Interest |
| 52,701 |
Total income |
| 644,303 |
|
|
|
Expenses | ||
Management fee | $ 170,653 | |
Transfer agent fees | 49,999 | |
Independent trustees' compensation | 2,824 | |
Total expenses before reductions | 223,476 | |
Expense reductions | (112) | 223,364 |
Net investment income (loss) | 420,939 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (3,959,521) | |
Foreign currency transactions | 809 | |
Futures contracts | (1,198,152) | |
Total net realized gain (loss) |
| (5,156,864) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (24,333,685) | |
Futures contracts | (420,003) | |
Total change in net unrealized appreciation (depreciation) |
| (24,753,688) |
Net gain (loss) | (29,910,552) | |
Net increase (decrease) in net assets resulting from operations | $ (29,489,613) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 420,939 | $ 12,670 |
Net realized gain (loss) | (5,156,864) | (70,893) |
Change in net unrealized appreciation (depreciation) | (24,753,688) | (454,589) |
Net increase (decrease) in net assets resulting from operations | (29,489,613) | (512,812) |
Distributions to shareholders from net investment income | (415,431) | - |
Share transactions | 95,724,306 | 6,870,474 |
Reinvestment of distributions | 393,536 | - |
Cost of shares redeemed | (15,170,851) | (15,000) |
Net increase (decrease) in net assets resulting from share transactions | 80,946,991 | 6,855,474 |
Redemption fees | 58,221 | 225 |
Total increase (decrease) in net assets | 51,100,168 | 6,342,887 |
|
|
|
Net Assets | ||
Beginning of period | 6,342,887 | - |
End of period (including undistributed net investment income of $17,451 and undistributed net investment income of $11,937, respectively) | $ 57,443,055 | $ 6,342,887 |
Other Information Shares | ||
Sold | 12,651,787 | 704,199 |
Issued in reinvestment of distributions | 63,034 | - |
Redeemed | (2,373,595) | (1,654) |
Net increase (decrease) | 10,341,226 | 702,545 |
Financial Highlights
Years ended February 28, | 2009 | 2008 E, G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.03 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .09 | .02 |
Net realized and unrealized gain (loss) | (3.87) | (.99) |
Total from investment operations | (3.78) | (.97) |
Distributions from net investment income | (.06) | - |
Redemption fees added to paid in capital D | .01 | - H |
Net asset value, end of period | $ 5.20 | $ 9.03 |
Total Return B, C | (41.94)% | (9.70)% |
Ratios to Average Net Assets F |
|
|
Expenses before reductions | .67% | .67% A |
Expenses net of fee waivers, if any | .67% | .67% A |
Expenses net of all reductions | .67% | .67% A |
Net investment income (loss) | 1.29% | 1.19% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 57,443 | $ 6,343 |
Portfolio turnover rate | 184% | 16% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period December 20, 2007 (commencement of operations) to February 29, 2008.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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.
G For the year ended February 29.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity International Enhanced Index Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's 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 returns 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
Periods ended February 28, 2009 | Past 1 | Life of |
International Enhanced Index Fund | -51.52% | -48.42% |
A From December 20, 2007.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity International Enhanced Index Fund on December 20, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI® EAFE® Index (Europe, Australasia, Far East) performed over the same period.
Annual Report
Fidelity International Enhanced Index Fund
Management's Discussion of Fund Performance
Market Recap: The global economy weakened across the board during the year ending February 28, 2009, and stock markets everywhere followed suit. Just about every part of the world participated in the downturn in equity prices. Many of the worst-performing markets were in emerging countries, but even large developed markets offered significant challenges for stock investors. Japan - the largest weighting in the MSCI® EAFE® Index (Europe, Australasia, Far East) - fell nearly 40%, about 10 percentage points better than the MSCI EAFE's 50.14% decline. Japan's performance was helped by a strengthening yen, which added to returns for U.S. investors. In contrast, other Asia-Pacific markets such as New Zealand and Australia lagged the index by a significant margin. European equities also fared relatively poorly. The United Kingdom - the second-largest weighting in the index - lost 51% during the past year. Other noteworthy European underperformers were the Netherlands (down 54%), Germany (down 55%), Sweden (down 54%) and Italy (down 58%), while smaller markets such as Greece, Belgium and Austria were even more challenging for investors.
Comments from Jeffrey Adams, who oversees Fidelity® International Enhanced Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC: The fund declined 51.52% for the year, lagging the MSCI EAFE. In addition to a weak market overall, foreign stock returns also were depressed by a generally stronger dollar, which hampered performance for U.S. investors. (The fund's performance relative to the index can be affected by Fidelity's methodologies for valuing certain foreign stocks and for incorporating foreign exchange rates, which differ from those used by the index.) Poor stock selection in Japan was a big drag on performance. Stock selection in Australia proved disappointing as well. In sector terms, poor stock picks in materials, industrials, energy and information technology detracted. Within financials, our bank stocks underperformed, although being underweighted in this very-poor-performing group more than made up for it. Favorable stock selection as well as a small underweighting in diversified financials also helped. The fund's biggest relative detractor was Swedbank, the largest bank serving Baltic Europe. This Sweden-based company struggled due to its exposure to the slowing Estonian and Latvian economies. Swedbank's shares also declined in response to reports that the company might have to raise additional capital. Similarly, Austrian bank Raiffeisen International Bank Holdings, whose lending activity focuses on former communist countries, cut its earnings forecast. Australian financial company Babcock & Brown - which was not in the portfolio at period end - tumbled after tight credit markets left the company unable to obtain needed financing. Also detracting was being only modestly exposed to Japanese utility Tokyo Electric Power and diversified Japanese retailer Seven & i Holdings, both of which significantly outperformed the benchmark. On the positive side, Toyo Suisan Kaisha, a Japanese maker of ramen noodles, benefited in part from the company's success in increasing North American sales, while Japanese bread company Yamazaki Baking was increasingly profitable. The fund's biggest individual performance contribution came from German car maker Volkswagen, in which we were under- and overweighted at opportune times during the period.
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.
Portfolio
Fidelity International Enhanced Index Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of February 28, 2009 | |||
Japan | 24.3% |
| |
United Kingdom | 21.0% |
| |
France | 9.2% |
| |
Germany | 7.7% |
| |
Switzerland | 7.4% |
| |
Australia | 5.8% |
| |
Spain | 4.2% |
| |
Italy | 3.1% |
| |
United States | 2.7% |
| |
Other | 14.6% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of August 31, 2008 | |||
Japan | 19.2% |
| |
United Kingdom | 17.4% |
| |
United States | 14.6% |
| |
France | 8.2% |
| |
Germany | 7.8% |
| |
Switzerland | 6.4% |
| |
Australia | 4.5% |
| |
Spain | 3.7% |
| |
Netherlands | 2.4% |
| |
Other | 15.8% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
| % of fund's | % of fund's net assets |
Investment Companies | 0.0 | 1.4 |
Stocks and Equity Futures | 99.9 | 98.3 |
Short-Term Investments and | 0.1 | 0.3 |
Top Ten Stocks as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
BP PLC (United Kingdom, Oil, Gas & Consumable Fuels) | 2.1 | 1.2 |
Nestle SA (Reg.) (Switzerland, Food Products) | 1.9 | 1.1 |
Novartis AG (Reg.) (Switzerland, Pharmaceuticals) | 1.5 | 1.4 |
Total SA Series B (France, Oil, Gas & Consumable Fuels) | 1.5 | 1.1 |
GlaxoSmithKline PLC sponsored ADR (United Kingdom, Pharmaceuticals) | 1.5 | 0.8 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 1.4 | 1.0 |
Toyota Motor Corp. (Japan, Automobiles) | 1.4 | 0.9 |
Telefonica SA (Spain, Diversified Telecommunication Services) | 1.3 | 1.1 |
Royal Dutch Shell PLC Class A (United Kingdom, Oil, Gas & Consumable Fuels) | 1.3 | 0.8 |
British American Tobacco PLC (United Kingdom, Tobacco) | 1.1 | 0.6 |
| 15.0 | |
Market Sectors as of February 28, 2009 | ||
| % of fund's | % of fund's net assets |
Financials | 17.5 | 19.9 |
Industrials | 11.7 | 10.6 |
Consumer Staples | 11.9 | 6.8 |
Health Care | 11.3 | 7.5 |
Consumer Discretionary | 9.8 | 10.0 |
Energy | 9.0 | 7.3 |
Utilities | 8.1 | 4.9 |
Telecommunication Services | 7.7 | 5.5 |
Materials | 7.0 | 9.1 |
Information Technology | 3.3 | 4.2 |
Annual Report
Fidelity International Enhanced Index Fund
Investments February 28, 2009
Showing Percentage of Net Assets
Common Stocks - 96.8% | |||
Shares | Value | ||
Australia - 5.8% | |||
Amcor Ltd. | 14,162 | $ 39,280 | |
ASX Ltd. | 806 | 13,432 | |
Australia & New Zealand Banking Group Ltd. | 2,039 | 17,079 | |
BHP Billiton Ltd. | 5,719 | 102,980 | |
Coca-Cola Amatil Ltd. | 2,477 | 14,136 | |
Commonwealth Bank of Australia | 1,582 | 29,831 | |
CSL Ltd. | 3,285 | 75,970 | |
Fosters Group Ltd. | 13,957 | 48,864 | |
Incitec Pivot Ltd. | 12,840 | 17,492 | |
Macquarie Group Ltd. | 594 | 6,274 | |
Metcash Ltd. | 13,213 | 35,100 | |
National Australia Bank Ltd. | 2,073 | 23,285 | |
Newcrest Mining Ltd. | 2,453 | 48,234 | |
Origin Energy Ltd. | 2,975 | 25,681 | |
Qantas Airways Ltd. | 13,496 | 13,330 | |
QBE Insurance Group Ltd. | 4,849 | 58,240 | |
Telstra Corp. Ltd. | 26,656 | 60,074 | |
Westfield Group unit | 2,251 | 15,095 | |
Westpac Banking Corp. | 2,751 | 29,337 | |
Woolworths Ltd. | 5,049 | 83,898 | |
TOTAL AUSTRALIA | 757,612 | ||
Austria - 0.4% | |||
Erste Bank AG | 754 | 7,203 | |
Raiffeisen International Bank-Holding AG | 1,917 | 35,709 | |
Vienna Insurance Group | 559 | 12,379 | |
TOTAL AUSTRIA | 55,291 | ||
Belgium - 0.9% | |||
Belgacom SA | 595 | 19,363 | |
Colruyt NV | 145 | 32,866 | |
Delhaize Group SA | 445 | 25,688 | |
Fortis rights 12/31/49 (a) | 772 | 0 | |
Mobistar SA | 403 | 24,806 | |
UCB SA | 432 | 11,883 | |
TOTAL BELGIUM | 114,606 | ||
Bermuda - 0.3% | |||
Cheung Kong Infrastructure Holdings Ltd. | 11,000 | 41,597 | |
China - 0.2% | |||
Tencent Holdings Ltd. | 3,800 | 21,709 | |
Denmark - 1.2% | |||
Coloplast AS Series B | 300 | 19,591 | |
DSV de Sammensluttede Vognmaend AS | 2,075 | 15,577 | |
East Asiatic Co. Ltd. | 550 | 15,907 | |
Novo Nordisk AS Series B | 1,225 | 59,635 | |
Novozymes AS Series B | 280 | 20,661 | |
| |||
Shares | Value | ||
Sydbank AS | 550 | $ 6,403 | |
Vestas Wind Systems AS (a) | 450 | 19,590 | |
TOTAL DENMARK | 157,364 | ||
Finland - 1.2% | |||
KCI Konecranes Oyj | 1,613 | 26,118 | |
Kone Oyj (B Shares) | 1,420 | 29,261 | |
Nokia Corp. | 6,192 | 58,010 | |
Orion Oyj (B Shares) | 1,330 | 20,607 | |
Outokumpu Oyj (A Shares) | 712 | 7,201 | |
Wartsila Corp. | 563 | 12,875 | |
TOTAL FINLAND | 154,072 | ||
France - 9.2% | |||
Accor SA | 512 | 18,183 | |
Aeroports de Paris | 349 | 16,697 | |
Alstom SA | 873 | 40,956 | |
AXA SA | 2,102 | 19,157 | |
BIC SA | 310 | 15,106 | |
BNP Paribas SA | 894 | 28,947 | |
Bouygues SA | 702 | 19,966 | |
Carrefour SA | 508 | 16,978 | |
Casino Guichard Perrachon et Compagnie | 332 | 20,507 | |
CNP Assurances | 305 | 19,614 | |
Credit Agricole SA | 1,960 | 18,977 | |
Essilor International SA | 1,500 | 51,758 | |
Eurazeo SA | 1,221 | 28,447 | |
France Telecom SA | 4,390 | 98,087 | |
GDF Suez | 2,527 | 80,274 | |
Groupe Danone | 292 | 13,855 | |
Klepierre SA | 695 | 14,056 | |
L'Air Liquide SA | 571 | 41,659 | |
PagesJaunes Groupe SA | 2,773 | 23,435 | |
Safran SA | 1,803 | 18,266 | |
Sanofi-Aventis | 2,748 | 141,211 | |
Schneider Electric SA | 230 | 13,727 | |
SCOR SE | 2,891 | 57,171 | |
Societe Generale Series A | 228 | 7,066 | |
Technip SA | 555 | 17,960 | |
Total SA Series B | 4,039 | 189,721 | |
Unibail-Rodamco | 449 | 56,356 | |
VINCI SA | 1,348 | 43,208 | |
Vivendi | 1,961 | 46,613 | |
Zodiac SA | 560 | 16,873 | |
TOTAL FRANCE | 1,194,831 | ||
Germany - 7.4% | |||
Allianz AG (Reg.) | 762 | 50,446 | |
BASF AG | 1,857 | 51,223 | |
Bayer AG | 1,938 | 92,698 | |
Bilfinger Berger AG | 359 | 12,459 | |
Commerzbank AG | 2,315 | 8,113 | |
Daimler AG (Reg.) | 2,028 | 45,873 | |
Common Stocks - continued | |||
Shares | Value | ||
Germany - continued | |||
Deutsche Bank AG | 764 | $ 19,527 | |
Deutsche Boerse AG | 677 | 30,937 | |
Deutsche Postbank AG | 867 | 9,573 | |
Deutsche Telekom AG (Reg.) | 5,892 | 70,647 | |
E.ON AG | 3,888 | 99,676 | |
K&S AG | 975 | 43,513 | |
Linde AG | 230 | 14,728 | |
MAN AG | 327 | 13,177 | |
Merck KGaA | 346 | 25,842 | |
Munich Re Group (Reg.) | 426 | 51,883 | |
RWE AG | 1,160 | 72,810 | |
SAP AG | 1,328 | 42,733 | |
Siemens AG (Reg.) | 2,019 | 102,207 | |
Thyssenkrupp AG | 460 | 8,205 | |
TUI AG | 1,812 | 10,140 | |
Volkswagen AG | 187 | 44,159 | |
Wacker Chemie AG | 525 | 32,808 | |
TOTAL GERMANY | 953,377 | ||
Greece - 0.6% | |||
Greek Organization of Football Prognostics SA | 1,399 | 35,960 | |
National Bank of Greece SA | 898 | 10,975 | |
Piraeus Bank SA | 3,910 | 18,955 | |
Public Power Corp. of Greece | 710 | 10,731 | |
TOTAL GREECE | 76,621 | ||
Hong Kong - 1.9% | |||
Bank of East Asia Ltd. | 8,800 | 18,113 | |
BOC Hong Kong Holdings Ltd. | 17,000 | 16,908 | |
CLP Holdings Ltd. | 10,000 | 73,926 | |
Esprit Holdings Ltd. | 4,800 | 25,850 | |
Hang Seng Bank Ltd. | 1,000 | 11,062 | |
Hong Kong Exchanges & Clearing Ltd. | 1,600 | 12,654 | |
Hutchison Whampoa Ltd. | 9,000 | 46,964 | |
Sun Hung Kai Properties Ltd. | 3,495 | 27,108 | |
Wharf Holdings Ltd. | 5,000 | 10,445 | |
TOTAL HONG KONG | 243,030 | ||
Ireland - 0.2% | |||
Paddy Power PLC (Ireland) | 1,848 | 25,625 | |
Italy - 2.9% | |||
Assicurazioni Generali SpA | 1,059 | 15,917 | |
Banca Carige SpA | 9,787 | 26,195 | |
Enel SpA | 5,883 | 29,234 | |
ENI SpA | 5,321 | 106,184 | |
Finmeccanica SpA | 2,949 | 37,573 | |
Intesa Sanpaolo SpA | 6,716 | 16,343 | |
Mediaset SpA | 10,792 | 47,883 | |
Mediobanca SpA | 3,569 | 28,896 | |
Telecom Italia SpA (Risparmio Shares) | 19,506 | 23,705 | |
| |||
Shares | Value | ||
UniCredit SpA | 17,451 | $ 22,098 | |
Unipol Gruppo Finanziario SpA | 17,626 | 15,738 | |
TOTAL ITALY | 369,766 | ||
Japan - 24.3% | |||
Asics Corp. | 5,000 | 31,144 | |
Astellas Pharma, Inc. | 2,200 | 72,992 | |
Bank of Yokohama Ltd. | 6,000 | 25,407 | |
Canon, Inc. | 1,500 | 37,850 | |
Central Japan Ry Co. | 7 | 42,519 | |
Chiba Bank Ltd. | 4,000 | 18,773 | |
Chubu Electric Power Co., Inc. | 3,000 | 73,953 | |
Chuo Mitsui Trust Holdings, Inc. | 9,000 | 27,278 | |
Credit Saison Co. Ltd. | 2,200 | 14,312 | |
Daiichi Sankyo Kabushiki Kaisha | 1,000 | 16,063 | |
Daito Trust Construction Co. | 1,000 | 31,487 | |
Daiwa Securities Group, Inc. | 4,000 | 13,738 | |
East Japan Railway Co. | 700 | 41,915 | |
Eisai Co. Ltd. | 1,000 | 30,632 | |
Electric Power Development Co. Ltd. | 900 | 28,752 | |
FamilyMart Co. Ltd. | 1,200 | 40,475 | |
Fujifilm Holdings Corp. | 1,400 | 26,026 | |
Furukawa Electric Co. Ltd. | 12,000 | 31,106 | |
Hisamitsu Pharmaceutical Co., Inc. | 400 | 12,078 | |
Hitachi Ltd. | 12,000 | 29,877 | |
Hokuhoku Financial Group, Inc. | 9,000 | 13,955 | |
Honda Motor Co. Ltd. | 2,800 | 66,946 | |
Inpex Corp. | 6 | 40,585 | |
Isetan Mitsukoshi Holdings Ltd. | 1,400 | 9,898 | |
Itochu Corp. | 6,000 | 26,899 | |
Japan Steel Works Ltd. | 4,000 | 35,927 | |
Japan Tobacco, Inc. | 9 | 21,464 | |
JFE Holdings, Inc. | 2,100 | 45,433 | |
JGC Corp. | 2,000 | 22,791 | |
Jupiter Telecommunications Co. | 33 | 26,150 | |
Kansai Electric Power Co., Inc. | 1,900 | 45,676 | |
Kao Corp. | 2,700 | 51,303 | |
KDDI Corp. | 13 | 68,092 | |
Kinden Corp. | 4,000 | 28,133 | |
Komatsu Ltd. | 1,500 | 15,356 | |
Konami Corp. | 1,800 | 25,404 | |
Kyushu Electric Power Co., Inc. | 2,100 | 49,726 | |
Lawson, Inc. | 700 | 30,307 | |
Leopalace21 Corp. | 4,700 | 26,106 | |
Makita Corp. | 1,900 | 37,344 | |
Marubeni Corp. | 5,000 | 15,520 | |
Mitsubishi Corp. | 3,200 | 39,807 | |
Mitsubishi Electric Corp. | 6,000 | 23,700 | |
Mitsubishi UFJ Financial Group, Inc. | 21,700 | 98,017 | |
Mitsubishi UFJ Lease & Finance Co. Ltd. | 950 | 16,530 | |
Mitsui & Co. Ltd. | 4,000 | 36,840 | |
Mitsui O.S.K. Lines Ltd. | 4,000 | 20,272 | |
Mizuho Financial Group, Inc. | 20,000 | 37,690 | |
Nidec Corp. | 300 | 12,404 | |
Common Stocks - continued | |||
Shares | Value | ||
Japan - continued | |||
Nintendo Co. Ltd. | 250 | $ 70,500 | |
Nippon Electric Glass Co. Ltd. | 3,000 | 19,461 | |
Nippon Steel Corp. | 15,000 | 39,370 | |
Nippon Telegraph & Telephone Corp. | 1,100 | 47,028 | |
Nomura Real Estate Holdings, Inc. | 1,500 | 19,094 | |
NTT Data Corp. | 11 | 27,254 | |
NTT DoCoMo, Inc. | 28 | 43,612 | |
Oji Paper Co. Ltd. | 11,000 | 40,679 | |
ORIX Corp. | 380 | 7,718 | |
Osaka Gas Co. Ltd. | 13,000 | 46,474 | |
Panasonic Corp. | 2,000 | 23,153 | |
Panasonic Electric Works Co., Ltd. | 3,000 | 18,181 | |
Promise Co. Ltd. | 550 | 7,345 | |
Sankyo Co. Ltd. (Gunma) | 900 | 40,385 | |
Sekisui Chemical Co. Ltd. | 5,000 | 21,280 | |
Seven & i Holdings Co., Ltd. | 2,800 | 62,044 | |
SHIMANO, Inc. | 1,600 | 52,102 | |
Shin-Etsu Chemical Co., Ltd. | 900 | 40,063 | |
Shinsei Bank Ltd. | 31,000 | 27,297 | |
Sompo Japan Insurance, Inc. | 3,000 | 14,792 | |
Sony Corp. | 2,000 | 33,486 | |
Sumitomo Corp. | 4,300 | 35,897 | |
Sumitomo Electric Industries Ltd. | 5,900 | 45,839 | |
Sumitomo Heavy Industries Ltd. | 4,000 | 10,476 | |
Sumitomo Metal Industries Ltd. | 10,000 | 18,730 | |
Sumitomo Mitsui Financial Group, Inc. | 1,700 | 53,884 | |
Sumitomo Realty & Development Co. Ltd. (a) | 4,000 | 38,266 | |
Suzuki Motor Corp. | 2,700 | 42,078 | |
Takeda Pharmaceutical Co. Ltd. | 2,200 | 88,844 | |
Tokio Marine Holdings, Inc. | 800 | 18,000 | |
Tokuyama Corp. | 6,000 | 31,450 | |
Tokyo Electric Power Co. | 2,000 | 56,451 | |
Tokyo Gas Co. Ltd. | 11,000 | 44,059 | |
Tokyu Land Corp. | 6,000 | 13,469 | |
Toshiba Corp. | 7,000 | 16,957 | |
Toyo Suisan Kaisha Ltd. | 1,500 | 35,494 | |
Toyota Motor Corp. | 5,500 | 176,136 | |
Uni-Charm Corp. | 500 | 32,660 | |
Yamada Denki Co. Ltd. | 160 | 5,804 | |
Yamazaki Baking Co. Ltd. | 4,000 | 50,390 | |
TOTAL JAPAN | 3,150,854 | ||
Luxembourg - 0.6% | |||
ArcelorMittal SA (Netherlands) | 943 | 18,071 | |
SES SA FDR (France) unit | 3,177 | 58,179 | |
TOTAL LUXEMBOURG | 76,250 | ||
Netherlands - 2.1% | |||
Akzo Nobel NV | 372 | 12,996 | |
European Aeronautic Defence and Space Co. EADS NV | 1,712 | 24,851 | |
Koninklijke Ahold NV | 6,306 | 69,958 | |
| |||
Shares | Value | ||
Koninklijke Boskalis Westminster NV (Certificaten Van Aandelen) unit | 1,550 | $ 29,476 | |
Koninklijke KPN NV | 1,721 | 22,014 | |
Koninklijke Philips Electronics NV | 258 | 4,124 | |
Reed Elsevier NV | 3,610 | 40,102 | |
Unilever NV (Certificaten Van Aandelen) | 3,540 | 67,817 | |
TOTAL NETHERLANDS | 271,338 | ||
New Zealand - 0.1% | |||
Sky City Entertainment Group Ltd. | 7,695 | 10,445 | |
Norway - 0.7% | |||
DnB Nor ASA | 11,100 | 39,907 | |
StatoilHydro ASA | 2,900 | 48,122 | |
TOTAL NORWAY | 88,029 | ||
Portugal - 0.5% | |||
Banco Espirito Santo SA (BES) (Reg.) | 2,808 | 16,423 | |
Energias de Portugal SA | 3,962 | 12,513 | |
Portugal Telecom SGPS SA (Reg.) | 3,869 | 31,364 | |
TOTAL PORTUGAL | 60,300 | ||
Singapore - 1.3% | |||
CapitaLand Ltd. | 21,000 | 26,386 | |
CapitaLand Ltd. rights 3/12/09 (a) | 10,500 | 4,064 | |
ComfortDelgro Corp. Ltd. | 13,000 | 10,875 | |
Cosco Corp. Singapore Ltd. | 18,000 | 8,240 | |
Jardine Cycle & Carriage Ltd. | 4,564 | 25,699 | |
Keppel Corp. Ltd. | 7,000 | 19,426 | |
SembCorp Industries Ltd. | 22,000 | 29,507 | |
SembCorp Marine Ltd. | 20,000 | 17,743 | |
Singapore Airlines Ltd. | 1,500 | 9,773 | |
Singapore Telecommunications Ltd. | 11,000 | 17,311 | |
TOTAL SINGAPORE | 169,024 | ||
Spain - 4.2% | |||
Banco Bilbao Vizcaya Argentaria SA | 7,485 | 54,061 | |
Banco Santander SA | 16,253 | 99,268 | |
Corporacion Mapfre SA (Reg.) | 14,948 | 30,382 | |
EDP Renovaveis SA | 60 | 438 | |
Gamesa Corporacion Tecnologica, SA | 598 | 7,886 | |
Iberdrola SA | 13,315 | 86,571 | |
Repsol YPF SA | 2,174 | 33,199 | |
Telefonica SA | 9,273 | 170,628 | |
Union Fenosa SA | 1,558 | 35,106 | |
Vallehermoso SA | 3,572 | 24,754 | |
TOTAL SPAIN | 542,293 | ||
Sweden - 2.4% | |||
Alfa Laval AB | 3,272 | 22,737 | |
H&M Hennes & Mauritz AB (B Shares) | 1,405 | 52,111 | |
Investor AB (B Shares) | 1,800 | 20,315 | |
Nordea Bank AB | 3,600 | 17,947 | |
Skandinaviska Enskilda Banken AB | 2,700 | 11,212 | |
Svenska Handelsbanken AB (A Shares) | 2,531 | 30,289 | |
Common Stocks - continued | |||
Shares | Value | ||
Sweden - continued | |||
Swedbank AB (A Shares) | 7,200 | $ 18,616 | |
Swedish Match Co. | 1,570 | 20,518 | |
TELE2 AB (B Shares) | 4,345 | 32,098 | |
Telefonaktiebolaget LM Ericsson (B Shares) | 6,005 | 48,633 | |
TeliaSonera AB | 9,700 | 38,734 | |
TOTAL SWEDEN | 313,210 | ||
Switzerland - 7.4% | |||
ABB Ltd. (Reg.) | 4,611 | 55,656 | |
Actelion Ltd. (Reg.) (a) | 990 | 46,815 | |
Baloise Holdings AG (Reg.) | 255 | 14,439 | |
Credit Suisse Group (Reg.) | 730 | 17,764 | |
Givaudan SA | 14 | 8,069 | |
Julius Baer Holding Ltd. | 234 | 5,393 | |
Nestle SA (Reg.) | 7,683 | 251,139 | |
Novartis AG (Reg.) | 5,274 | 191,184 | |
Pargesa Holding SA | 537 | 28,105 | |
Roche Holding AG (participation certificate) | 1,203 | 136,550 | |
Schindler Holding AG (participation certificate) | 560 | 27,214 | |
Sonova Holding AG | 448 | 21,967 | |
Sulzer AG (Reg.) | 581 | 22,598 | |
Swiss Reinsurance Co. (Reg.) | 807 | 9,934 | |
Syngenta AG (Switzerland) | 233 | 49,806 | |
UBS AG (For. Reg.) | 2,521 | 23,605 | |
Zurich Financial Services AG (Reg.) | 368 | 52,111 | |
TOTAL SWITZERLAND | 962,349 | ||
United Kingdom - 21.0% | |||
Admiral Group PLC | 16 | 195 | |
Anglo American PLC (United Kingdom) | 2,509 | 35,388 | |
Antofagasta PLC | 4,935 | 30,878 | |
AstraZeneca PLC: | |||
(United Kingdom) | 429 | 13,603 | |
sponsored ADR | 3,360 | 106,142 | |
Aviva PLC | 5,824 | 23,925 | |
BAE Systems PLC | 17,801 | 93,970 | |
Barclays PLC | 3,684 | 4,832 | |
BG Group PLC | 9,744 | 139,270 | |
BHP Billiton PLC | 3,484 | 54,292 | |
BP PLC | 43,407 | 276,510 | |
British American Tobacco PLC (United Kingdom) | 5,541 | 141,615 | |
British Land Co. PLC | 4,669 | 30,373 | |
BT Group PLC | 393 | 502 | |
Cable & Wireless PLC | 14,975 | 29,303 | |
Capita Group PLC | 5,727 | 54,037 | |
| |||
Shares | Value | ||
Centrica PLC | 11,849 | $ 45,562 | |
Compass Group PLC | 13,925 | 61,173 | |
Diageo PLC | 3,917 | 45,163 | |
G4S PLC (United Kingdom) | 6,740 | 17,815 | |
GlaxoSmithKline PLC | 479 | 7,264 | |
GlaxoSmithKline PLC sponsored ADR | 6,249 | 188,282 | |
HSBC Holdings PLC: | |||
(United Kingdom) (Reg.) | 9,079 | 63,139 | |
sponsored ADR | 3,256 | 113,309 | |
Imperial Tobacco Group PLC | 1,420 | 33,994 | |
Land Securities Group PLC | 1,850 | 14,446 | |
Legal & General Group PLC | 27,032 | 15,420 | |
Lloyds TSB Group PLC | 10,106 | 8,295 | |
National Grid PLC | 5,403 | 48,090 | |
NEXT PLC | 1,809 | 29,995 | |
Pearson PLC | 2,105 | 19,750 | |
Reckitt Benckiser Group PLC | 2,517 | 96,304 | |
Reed Elsevier PLC | 7,505 | 56,060 | |
Rio Tinto PLC (Reg.) | 2,034 | 51,917 | |
Royal Dutch Shell PLC: | |||
Class A (United Kingdom) | 7,752 | 170,172 | |
Class B | 5,959 | 125,071 | |
Stagecoach Group PLC | 22,788 | 37,476 | |
Standard Chartered PLC (United Kingdom) | 7,442 | 70,128 | |
Standard Life PLC | 3,144 | 7,790 | |
Tesco PLC | 13,531 | 64,163 | |
Tomkins PLC | 10,511 | 16,885 | |
Unilever PLC | 4,002 | 77,301 | |
Vodafone Group PLC | 105,696 | 187,261 | |
William Morrison Supermarkets PLC | 4,861 | 17,854 | |
Xstrata PLC | 51 | 502 | |
TOTAL UNITED KINGDOM | 2,725,416 | ||
TOTAL COMMON STOCKS (Cost $19,206,994) | 12,535,009 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
Germany - 0.3% | |||
RWE AG (non-vtg.) | 737 | 40,492 | |
Italy - 0.2% | |||
Telecom Italia SpA (Risparmio Shares) | 31,678 | 30,122 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $106,376) | 70,614 |
Government Obligations - 1.0% | ||||
| Principal Amount | Value | ||
United States of America - 1.0% | ||||
U.S. Treasury Bills, yield at date of purchase 0.21% to 1.51% 3/26/09 to 10/22/09 (c) | $ 130,000 | $ 129,795 |
Money Market Funds - 0.5% | |||
Shares |
| ||
Dreyfus Cash Management Institutional Shares, 1.85% (b) | 61,146 | 61,146 |
TOTAL INVESTMENT PORTFOLIO - 98.8% (Cost $19,504,339) | 12,796,564 |
NET OTHER ASSETS - 1.2% | 152,993 | ||
NET ASSETS - 100% | $ 12,949,557 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |||
Purchased | |||||
Equity Index Contracts | |||||
7 CME E-mini MSCI EAFE Index Contracts | March 2009 | $ 342,720 | $ (20,149) |
|
The face value of futures purchased as a percentage of net assets - 2.6% |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. |
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $79,800. |
Other Information |
The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security 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 | $ 12,796,564 | $ 479,324 | $ 12,317,240 | $ - |
Other Financial Instruments* | $ (20,149) | $ (20,149) | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At February 28, 2009, the fund had a capital loss carryforward of approximately $1,011,502 all of which will expire on February 28, 2017. |
The fund intends to elect to defer to its fiscal year ending February 28, 2010 approximately $1,510,622 of losses recognized during the period November 1, 2008 to February 28, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity International Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
| February 28, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: |
| $ 12,796,564 |
Foreign currency held at value | 21,326 | |
Receivable for investments sold | 92,471 | |
Receivable for fund shares sold | 7,772 | |
Dividends receivable | 50,976 | |
Interest receivable | 26 | |
Total assets | 12,969,135 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 731 | |
Payable for fund shares redeemed | 10,608 | |
Accrued management fee | 5,583 | |
Transfer agent fee payable | 1,781 | |
Payable for daily variation on futures contracts | 875 | |
Total liabilities | 19,578 | |
|
|
|
Net Assets | $ 12,949,557 | |
Net Assets consist of: |
| |
Paid in capital | $ 22,206,735 | |
Undistributed net investment income | 13,777 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,538,541) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (6,732,414) | |
Net Assets, for 2,930,458 shares outstanding | $ 12,949,557 | |
Net Asset Value, offering price and redemption price per share ($12,949,557 ÷ 2,930,458 shares) | $ 4.42 |
Statement of Operations
| Year ended February 28, 2009 | |
|
|
|
Investment Income |
|
|
Dividends |
| $ 376,926 |
Interest |
| 21,692 |
|
| 398,618 |
Less foreign taxes withheld |
| (30,160) |
Total income |
| 368,458 |
|
|
|
Expenses | ||
Management fee | $ 51,437 | |
Transfer agent fees | 16,728 | |
Independent trustees' compensation | 1,014 | |
Total expenses before reductions | 69,179 | |
Expense reductions | (2) | 69,177 |
Net investment income (loss) | 299,281 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (1,690,844) | |
Foreign currency transactions | (42,486) | |
Futures contracts | (779,566) | |
Total net realized gain (loss) |
| (2,512,896) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,400,938) | |
Assets and liabilities in foreign currencies | (5,190) | |
Futures contracts | (16,913) | |
Total change in net unrealized appreciation (depreciation) |
| (6,423,041) |
Net gain (loss) | (8,935,937) | |
Net increase (decrease) in net assets resulting from operations | $ (8,636,656) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets | Year ended | For the period |
Operations |
|
|
Net investment income (loss) | $ 299,281 | $ 18,521 |
Net realized gain (loss) | (2,512,896) | (62,818) |
Change in net unrealized appreciation (depreciation) | (6,423,041) | (309,373) |
Net increase (decrease) in net assets resulting from operations | (8,636,656) | (353,670) |
Distributions to shareholders from net investment income | (257,558) | - |
Distributions to shareholders from net realized gain | (9,293) | - |
Total distributions | (266,851) | - |
Share transactions | 21,608,123 | 7,796,232 |
Reinvestment of distributions | 242,848 | - |
Cost of shares redeemed | (7,276,980) | (169,952) |
Net increase (decrease) in net assets resulting from share transactions | 14,573,991 | 7,626,280 |
Redemption fees | 5,813 | 650 |
Total increase (decrease) in net assets | 5,676,297 | 7,273,260 |
Net Assets | ||
Beginning of period | 7,273,260 | - |
End of period (including undistributed net investment income of $13,777 and undistributed net investment income of $18,521, respectively) | $ 12,949,557 | $ 7,273,260 |
Other Information Shares | ||
Sold | 3,341,102 | 795,634 |
Issued in reinvestment of distributions | 42,907 | - |
Redeemed | (1,231,035) | (18,150) |
Net increase (decrease) | 2,152,974 | 777,484 |
Financial Highlights
Years ended February 28, | 2009 | 2008 E, G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 9.35 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .18 | .03 |
Net realized and unrealized gain (loss) | (4.96) | (.68) |
Total from investment operations | (4.78) | (.65) |
Distributions from net investment income | (.14) | - |
Distributions from net realized gain | (.01) | - |
Total distributions | (.15) | - |
Redemption fees added to paid in capital D, H | - | - |
Net asset value, end of period | $ 4.42 | $ 9.35 |
Total Return B, C | (51.52)% | (6.50)% |
Ratios to Average Net Assets F |
|
|
Expenses before reductions | .62% | .62% A |
Expenses net of fee waivers, if any | .62% | .62% A |
Expenses net of all reductions | .62% | .62% A |
Net investment income (loss) | 2.69% | 1.58% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 12,950 | $ 7,273 |
Portfolio turnover rate | 143% | 15% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period December 20, 2007 (commencement of operations) to February 29, 2008.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or 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.
G For the year ended February 29.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended February 28, 2009
1. Organization.
Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, Fidelity Small Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund (the Funds) are funds of Fidelity Commonwealth Trust II (the trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware statutory trust.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund uses independent pricing services approved by the Board of Trustees to value their investments.
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 an independent pricing service on the primary market or exchange on which they are traded. 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Funds adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Funds' fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of February 28, 2009, for each Fund's investments is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Annual Report
2. Significant Accounting Policies - continued
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. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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 by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
| Cost for Federal | Unrealized | Unrealized | Net Unrealized |
Fidelity Large Cap Growth Enhanced Index Fund | $ 35,919,570 | $ 288,220 | $ (12,259,787) | $ (11,971,567) |
Fidelity Large Cap Value Enhanced Index Fund | 36,406,392 | 191,795 | (14,757,786) | (14,565,991) |
Fidelity Large Cap Core Enhanced Index Fund | 1,195,332,101 | 7,590,213 | (419,478,513) | (411,888,300) |
Fidelity Mid Cap Enhanced Index Fund | 20,071,315 | 249,846 | (5,949,503) | (5,699,657) |
Fidelity Small Cap Enhanced Index Fund | 82,158,112 | 1,004,682 | (25,874,039) | (24,869,357) |
Fidelity International Enhanced Index Fund | 19,545,388 | 85,542 | (6,834,366) | (6,748,824) |
| Undistributed | Undistributed | Capital Loss |
Fidelity Large Cap Growth Enhanced Index Fund | $ 49,503 | $ - | $ (3,603,801) |
Fidelity Large Cap Value Enhanced Index Fund | 174,113 | - | (3,138,587) |
Fidelity Large Cap Core Enhanced Index Fund | 3,262,087 | - | (100,229,482) |
Fidelity Mid Cap Enhanced Index Fund | 30,345 | - | (419,790) |
Fidelity Small Cap Enhanced Index Fund | 18,146 | - | (480,659) |
Fidelity International Enhanced Index Fund | 13,774 | - | (1,011,502) |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
February 28, 2009 |
|
|
|
| Ordinary Income | Long-term | Total |
Fidelity Large Cap Growth Enhanced Index Fund | $ 325,592 | $ - | $ 325,592 |
Fidelity Large Cap Value Enhanced Index Fund | 635,673 | - | 635,673 |
Fidelity Large Cap Core Enhanced Index Fund | 17,085,488 | - | 17,085,488 |
Fidelity Mid Cap Enhanced Index Fund | 131,855 | - | 131,855 |
Fidelity Small Cap Enhanced Index Fund | 415,431 | - | 415,431 |
Fidelity International Enhanced Index Fund | 266,851 | - | 266,851 |
February 29, 2008 |
|
|
|
| Ordinary Income | Long-term | Total |
Fidelity Large Cap Growth Enhanced Index Fund | $ 187,061 | $ - | $ 187,061 |
Fidelity Large Cap Value Enhanced Index Fund | 320,661 | - | 320,661 |
Fidelity Large Cap Core Enhanced Index Fund | 3,331,983 | - | 3,331,983 |
Short Term Trading (Redemption) Fees. Shares held in Fidelity Small Cap Enhanced Index Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. Shares held in Fidelity Mid Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund less than 30 days are subject to a redemption fee equal to 0.75% and 1.00%, respectively, of the proceeds of the redeemed shares. All redemption fees are retained by the Funds and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Funds invest in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
3. Operating Policies.
Futures Contracts. Certain Funds may use futures contracts to manage their exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in each applicable fund's Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in each applicable fund's Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in each applicable fund's Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) |
Fidelity Large Cap Growth Enhanced Index Fund | 25,821,834 | 26,127,173 |
Fidelity Large Cap Value Enhanced Index Fund | 42,339,408 | 31,014,373 |
Fidelity Large Cap Core Enhanced Index Fund | 997,796,616 | 641,031,823 |
Fidelity Mid Cap Enhanced Index Fund | 30,254,526 | 14,961,895 |
Fidelity Small Cap Enhanced Index Fund | 145,236,606 | 66,333,757 |
Fidelity International Enhanced Index Fund | 29,572,596 | 15,318,620 |
Annual Report
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. Strategic Advisers®, Inc. (Strategic Advisers), an affiliate of Fidelity Management & Research Company (FMR), provides the Funds with investment management related services. For these services, the Funds pay a monthly management fee to Strategic Advisers. The management fee is based on an annual rate of 0.30% of average net assets for Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund and Fidelity Large Cap Core Enhanced Index Fund, 0.45% of average net assets for Fidelity Mid Cap Enhanced Index Fund, 0.52% of average net assets for Fidelity Small Cap Enhanced Index Fund and 0.47% of average net assets for Fidelity International Enhanced Index Fund. Under the management contract, Strategic Advisers pays all other ordinary fund-wide operating expenses (such as custody, audit, legal, and pricing and bookkeeping fees), except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid to Strategic Advisers by the Funds is reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees.
In addition, under the expense contract, Strategic Advisers will pay other expenses such as those listed above for each of the Funds so that the total expenses do not exceed certain amounts of each fund's average net assets with certain exceptions, as noted in the following table:
Fidelity Large Cap Growth Enhanced Index Fund | .45% |
Fidelity Large Cap Value Enhanced Index Fund | .45% |
Fidelity Large Cap Core Enhanced Index Fund | .45% |
Fidelity Mid Cap Enhanced Index Fund | .60% |
Fidelity Small Cap Enhanced Index Fund | .67% |
Fidelity International Enhanced Index Fund | .62% |
Sub-Adviser. Geode® Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by Strategic Advisers for providing these services.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Under the expense contract, each fund paid transfer agent fees at the annualized rate of 0.15% of average net assets.
6. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.
The Fidelity Securities Lending Cash Central Fund seeks preservation of capital and current income and is managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site 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's web site or upon request.
7. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. 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 fees and expenses associated with the loan, plus any premium payments that may be received on the loan of 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. Net income from lending portfolio securities during the period amounted to:
Fidelity Large Cap Growth Enhanced Index Fund | $ 1,938 |
Fidelity Large Cap Value Enhanced Index Fund | 6,821 |
Fidelity Large Cap Core Enhanced Index Fund | 168,681 |
Annual Report
Notes to Financial Statements - continued
8. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Expense |
|
|
Fidelity Large Cap Value Enhanced Index Fund | $ 18 |
Fidelity Large Cap Core Enhanced Index Fund | 2,031 |
Fidelity Mid Cap Enhanced Index Fund | 21 |
Fidelity Small Cap Enhanced Index Fund | 112 |
Fidelity International Enhanced Index Fund | 2 |
9. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the 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, FMR or its affiliates were owner of record of more than 10% of the outstanding shares of the following funds:
Fund | Affiliated % |
|
|
Fidelity Mid Cap Enhanced Index Fund | 18 |
Fidelity International Enhanced Index Fund | 17 |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust II and the Shareholders of Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, Fidelity Small Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, Fidelity Small Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund (funds of Fidelity Commonwealth Trust II) at February 28, 2009, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Commonwealth Trust II's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 22, 2009
Annual Report
Trustees and Officers
The Trustees and executive officers of the trust and funds 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, and review each fund's performance. Except for Karen Kaplan, each of the Trustees oversees 16 funds advised by Strategic Advisers or an affiliate. Ms. Kaplan oversees nine funds advised by Strategic Advisers or an affiliate.
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. The executive officers hold office without limit in time, except that any officer 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 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Roger T. Servison (63) | |
| Year of Election or Appointment: 2006 Mr. Servison is Chairman of the Board of Trustees. Mr. Servison serves as President of Strategic New Business Development for Fidelity Investments and serves as a Director of Strategic Advisers. Previously, he oversaw Fidelity Investments Life Insurance Company (2005-2006) and Strategic Advisers (2005-2007). Mr Servison also served as President and a Director of Fidelity Brokerage Services (Japan), LLC (1994-2004). |
Abigail P. Johnson (47) | |
| Year of Election or Appointment: 2006 Ms. Johnson serves as President of Fidelity Employer Services Company (FESCO) (2005-present). Ms. Johnson is President and a Director of Fidelity Investments Money Management, Inc., FMR Co., Inc., and a Director of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with Strategic Advisers. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Peter C. Aldrich (64) | |
| Year of Election or Appointment: 2006 Mr. Aldrich is a Director of the National Bureau of Economic Research, a Director of Zipcar, Inc., a Director of the funds of BlackRock Realty Group (2006-present), and on the Board of Advisors for DuPont Capital Management (2004-present). Mr. Aldrich served as Managing Member of Poseidon, LLC (foreign private investment, 1998-2004), and Chairman and Managing Member of AEGIS, LLC (foreign private investment, 1997-2004). Mr. Aldrich also served as Faculty Chairman of The Research Council on Global Investment of The Conference Board (business and professional education non-profit, 1999-2004). Mr. Aldrich is a Member of the Boards of Trustees of the Museum of Fine Arts Boston and Massachusetts Eye and Ear Infirmary. |
Ralph F. Cox (76) | |
| Year of Election or Appointment: 2006 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Mr. Cox is a Director of CH2M Hill Companies (engineering) and Abraxas Petroleum (exploration and production). Mr. Cox is a member of the Advisory Boards of Texas A&M University and the University of Texas at Austin. |
Karen Kaplan (49) | |
| Year of Election or Appointment: 2007 Ms. Kaplan is President of Hill Holliday (advertising and specialized marketing, 2007-present). Ms. Kaplan is a Director of Delta Dental of Massachusetts (2004-present), President of the Massachusetts Women's Forum (2008-present), Vice Chair of the Board of the Massachusetts Society for the Prevention of Cruelty to Children (2006-present), and Director of the Executive Committee of the Greater Boston Chamber of Commerce (2006-present). Previously, Ms. Kaplan served as Treasurer of the Massachusetts Women's Forum and Director of United Way of Massachusetts Bay (2004-2006), a Director of ADVO (direct mail marketing, 2003-2007), and as a Director of Tweeter Home Entertainment Group (2006-2007). |
Executive Officers**:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Stephen D. Fisher (46) | |
| Year of Election or Appointment: 2007 Secretary and Chief Legal Officer of each fund. Mr. Fisher is a Senior Vice President, Deputy General Counsel of Fidelity Investments. |
Mark Osterheld (53) | |
| Year of Election or Appointment: 2007 President and Treasurer of each fund. Mr. Osterheld is an employee of FMR (2009-present) and also serves as President and Treasurer of other Strategic Advisers funds (2006-present). Previously, Mr. Osterheld served as Assistant Treasurer of other Fidelity funds (2002-2007) and was an employee of FMR and Strategic Advisers (2007-2009). |
Charles V. Senatore (54) | |
| Year of Election or Appointment: 2007 Chief Compliance Officer of each fund. Mr. Senatore also serves as Senior Vice President and Head of Corporate Compliance for the Fidelity Financial Services Group (2008-present). Mr Senatore serves on the Board of Directors of the National Society of Compliance Professionals (2008-present), and is a Member of the SIFMA Self Regulation and Supervisory Practices Committee (2004-present), the FINRA Compliance Advisory Group (2000-2003; 2005-present), and the ICI Chief Compliance Officers Committee (2004-present). |
Holly C. Laurent (54) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of each fund. Ms. Laurent also serves as AML Officer of the Fidelity funds (2008-present) and is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Jeffrey S. Christian (47) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of each fund. Mr. Christian serves as Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-present) and is an employee of Fidelity Investments. Previously, Mr. Christian served as Vice President of Business Analysis (2003-2004). |
Paul M. Murphy (61) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of each fund. Mr. Murphy serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007) and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
James R. Rooney (50) | |
| Year of Election or Appointment: 2007 Assistant Treasurer of each fund. Mr. Rooney is an employee of FMR and also serves as Assistant Treasurer of other Strategic Advisers funds (2007-present). Previously, Mr. Rooney was a Vice President with Wellington Management Company LLP (2001-2007) and an employee of Strategic Advisers (2007-2009). |
** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.
Annual Report
Distributions (Unaudited)
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends-received deduction for corporate shareholders:
| April 2008 | December 2008 |
Fidelity Large Cap Core Enhanced Index Fund | 100% | 100% |
Fidelity Large Cap Growth Enhanced Index Fund | 100% | 100% |
Fidelity Large Cap Value Enhanced Index Fund | 100% | 100% |
Fidelity Mid Cap Enhanced Index Fund | 79% | 100% |
Fidelity Small Cap Enhanced Index Fund | 64% | 74% |
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.
| April 2008 | December 2008 |
Fidelity Large Cap Core Enhanced Index Fund | 100% | 100% |
Fidelity Large Cap Growth Enhanced Index Fund | 100% | 100% |
Fidelity Large Cap Value Enhanced Index Fund | 100% | 100% |
Fidelity Mid Cap Enhanced Index Fund | 89% | 100% |
Fidelity Small Cap Enhanced Index Fund | 68% | 88% |
Fidelity International Enhanced Index Fund | 77% | 100% |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Fund Pay Date Income Taxes | Pay Date | Income | Taxes |
Fidelity International Enhanced Index Fund | 04/14/08 | $0.008 | $0.0009 |
Fidelity International Enhanced Index Fund | 12/15/08 | $0.060 | $0.0121 |
The funds will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Large Cap Core Enhanced Index Fund
Large Cap Growth Enhanced Index Fund
Large Cap Value Enhanced Index Fund
Each year, typically in September, the Board of Trustees, including the Independent Trustees (together, the Board), votes at an in-person meeting on the renewal of the management contract and sub-advisory agreement (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly four times per year and considers at each of its meetings factors that it believes are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. While the full Board or the Independent Trustees, as appropriate, act on all major matters, a portion of the activities of the Board (including certain of those described herein) may be conducted through committees.
At its December 2008 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including, but not limited to, (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expenses; (iii) the total costs of the services and the profits, if any, to be realized by Strategic Advisers, Inc. (Strategic Advisers) from its relationship with each fund; and (iv) economies of scale, if any, for the benefit of fund shareholders.
The Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Strategic Advisers under the management contracts is consistent with Strategic Advisers' fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Strategic Advisers, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Strategic Advisers.
In their deliberations, the Board did not identify any particular information that was all-important or controlling.
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, Strategic Advisers, and the sub-adviser, Geode Capital Management, LLC (Geode) (together, the Investment Advisers), including the backgrounds of each fund's investment personnel and each fund's investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Strategic Advisers' investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that analysts have access to a variety of technological tools that enable them to perform quantitative analysis and to specialize in various disciplines.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping services, and securities lending services for each fund; (ii) the nature and extent of Strategic Advisers' supervision of third party service providers; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds. Because each fund had been in existence less than three calendar years, for each fund the following table considered by the Board shows, for the one-year period and the six-month period ended June 30, 2008, the fund's total return, the total return of a broad-based securities market index ("benchmark"), and the total return of a peer group of mutual funds identified by Lipper as having an investment objective similar to that of each fund.
Fund-specific performance results reviewed by the Board are discussed below, though due to the passage of time, they are likely to differ from performance results for more recent periods, including those shown elsewhere in this report.
Annual Report
Large Cap Core Enhanced Index Fund
| Year to Date |
| Variance to |
| 1 Year |
| Variance to |
Fidelity Large Cap Core Enhanced Index Fund (net) | -11.31% |
| 0.60% |
| -11.87% |
| 1.25% |
Fidelity Large Cap Core Enhanced Index Fund (gross) | -11.11% |
| 0.80% |
| -11.47% |
| 1.65% |
S&P 500 | -11.91% |
|
|
| -13.12% |
|
|
LIPPER PEER GROUP RESULTS: |
|
|
|
|
|
|
|
LA Large-Cap Core Average/Total | -11.50% |
|
|
| -12.27% |
|
|
LA Large-Cap Core Median | -11.54% |
|
|
| -12.50% |
|
|
LA Large-Cap Core Rank/Count | 392 | / | 850 |
| 355 | / | 817 |
Quartile | 2 |
|
|
| 2 |
|
|
Percent Beaten | 54% |
|
|
| 57% |
|
|
The Board reviewed the fund's performance for the one year period ended June 30, 2008 and noted the fund out-performed 57% of its peers in the Lipper Large-Cap Core peer group and was in the second quartile for the period. The Board also reviewed the fund's cumulative return from January 1, 2008 to June 30, 2008 and noted that the fund out-performed 54% of its peers and was in the second quartile during the six month period shown. The Board considered that the investment performance of the fund compared favorably to its benchmark for the one year period shown. The Board also considered that the fund compared favorably to its benchmark for the six month cumulative period shown. The Board also noted that a more comprehensive analysis of the fund's performance will be possible once the fund has completed an additional year of performance.
Large Cap Growth Enhanced Index Fund
| Year to Date |
| Variance to |
| 1 Year |
| Variance to |
Fidelity Large Cap Growth Enhanced Index Fund (net) | -9.52% |
| -0.47% |
| -9.26% |
| -3.31% |
Fidelity Large Cap GrowthEnhanced Index Fund (gross) | -9.32% |
| -0.26% |
| -8.85% |
| -2.89% |
Russell 1000 Growth | -9.06% |
|
|
| -5.96% |
|
|
LIPPER PEER GROUP RESULTS: |
|
|
|
|
|
|
|
LA Multi-Cap Growth Average/Total | -10.79% |
|
|
| -6.78% |
|
|
LA Multi-Cap Growth Median | -10.86% |
|
|
| -7.18% |
|
|
LA Multi-Cap Growth Rank/Count | 177 | / | 528 |
| 331 | / | 493 |
Quartile | 2 |
|
|
| 3 |
|
|
Percent Beaten | 67% |
|
|
| 33% |
|
|
The Board reviewed the fund's performance for the one year period ended June 30, 2008 and noted the fund under-performed 67% of its peers in the Lipper Multi-Cap Growth peer group and was in the third quartile for the period. The Board also reviewed the fund's cumulative return from January 1, 2008 to June 30, 2008 and noted the fund out-performed 67% of its peers and was in the second quartile for the six month period shown. The Board considered that the investment performance of the fund compared unfavorably to its benchmark for the one year period shown. The Board also considered that fund compared unfavorably to its benchmark for the six month period shown. The Board also noted that a more comprehensive analysis of the fund's performance will be possible once the fund has completed an additional year of performance.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Large Cap Value Enhanced Index Fund
| Year to Date |
| Variance to |
| 1 Year |
| Variance to |
Fidelity Large Cap Value Enhanced Index Fund (net) | -13.24% |
| 0.33% |
| -18.52% |
| 0.26% |
Fidelity Large Cap Value Index Fund (gross) | -13.04% |
| 0.53% |
| -18.14% |
| 0.64% |
Russell 1000 Value | -13.57% |
|
|
| -18.78% |
|
|
LIPPER PEER GROUP RESULTS: |
|
|
|
|
|
|
|
LA Multi-Cap Growth Average/Total | -12.55% |
|
|
| -18.55% |
|
|
LA Multi-Cap Growth Median | -12.75% |
|
|
| -18.41% |
|
|
LA Multi-Cap Growth Rank/Count | 255 | / | 449 |
| 218 | / | 431 |
Quartile | 3 |
|
|
| 3 |
|
|
Percent Beaten | 43% |
|
|
| 50% |
|
|
The Board reviewed the fund's performance for the one year period ended June 30, 2008 and noted the fund out-performed 50% of its peers in the Lipper Multi-Cap Value peer group and was in the third quartile for the period. The Board also reviewed the fund's cumulative return from January 1, 2008 to June 30, 2008 and noted the fund under-performed 57% of its peers and was in the third quartile for the six month period shown. The Board considered that the investment performance of the fund compared favorably to its benchmark for the one year period shown. The Board also considered that fund compared favorably to its benchmark for the six month period shown. The Board also noted that a more comprehensive analysis of the fund's performance will be possible once the fund has completed an additional year of performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will continue to benefit each fund's shareholders.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the amount and nature of fees paid by shareholders to the Investment Advisers in reviewing the Advisory Contracts.
The Board noted that the funds were compared against two Lipper fund universes. The funds were initially compared to all funds with the "enhanced index" structure attribute within Lipper's database (Total Lipper Peer Group), including international, sector-specific and leveraged funds, which generally carry higher management fees. Each fund was then compared to a refined Lipper Peer Group, removing those funds with an international, specific-sector or leveraged investment objective (Modified Lipper Peer Group).
The Board further noted that each fund's total expenses were compared to competitive funds with classes having similar load types. This comparison, which is a proxy for comparing funds by distribution channel, showed each fund's position relative to competitive funds with the same load type.
The Board considered information showing the management fees charged by Strategic Advisers to other registered investment companies with investment objectives similar to those of the funds. The Board also considered Strategic Advisers' expense contacts which limit each fund's annual fund expenses to 0.45%.
Based on its review, the Board concluded that the information reviewed indicated that the fee rates paid to Strategic Advisers with respect to the funds (giving effect to the funds' expense contracts) were reasonable in light of the services that each fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered information regarding the revenues earned and expenses incurred by Strategic Advisers and its affiliates attributable to the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders.
Strategic Advisers presented information to the Board on its profitability for managing the funds. Strategic Advisers calculates the profitability for each fund using a series of detailed revenue and cost allocation methodologies. While the methodologies used for the funds have not received a formal review by PricewaterhouseCoopers LLP ("PwC"), auditors to the funds, Strategic Advisers noted that Strategic Advisers employs the same corporate reporting of revenues and expenses and the same business unit allocation methodologies as those used by the Fidelity Group of Funds, which had been reviewed by PwC.
The Board concluded that the costs of the services provided by and the profits realized by Strategic Advisers and its affiliates in connection with the operation of each fund were not relevant to the renewal of each fund's Advisory Contracts because the funds have not generated sufficient revenue to cover the funds' expenses.
Annual Report
Potential Fall Out Benefits. The Board considered information regarding the potential of direct and indirect benefits to Strategic Advisers and its affiliates from their relationships with the funds, including non-advisory fee compensation paid to affiliates of Strategic Advisers, if any. The Board noted that Strategic Advisers employed a qualitative rather than quantitative framework to evaluate any potential fall out benefits because Strategic Advisers believed that, particularly given the funds current asset levels, a qualitative evaluation provided a more meaningful review of the potential benefits to the businesses of Strategic Advisers and its affiliates.
Possible Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the funds. The Board considered that each fund's sub-advisory contract provides for breakpoints as each fund's assets grow and noted that any potential decline in sub-advisory fees will accrue directly to Strategic Advisers. The Board also reviewed each fund's expense contract with Strategic Advisers, which limits each fund's total annual expenses to 0.45%. The Board noted that each fund has not generated sufficient revenue to cover its expenses because each fund is priced at a level that assumes it will eventually have greater assets and, thus, greater revenue. The Board noted that as fund assets increase, it will continue to monitor whether management fee breakpoints are appropriate.
Conclusion. Based on its evaluation of the factors that it deemed to be material, including those factors described above, considering all material factors, the Board unanimously concluded that the renewal of each fund's Advisory Contracts was in the best interests of such fund and its shareholders, and should therefore be approved.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
Investment Sub-Adviser
Geode Capital Management, LLC
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
GEI-UANN-0409 1.855137.101
Item 2. Code of Ethics
As of the end of the period, February 28, 2009, Fidelity Commonwealth Trust II (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 not designated an audit committee financial expert. Given the nature of the trust's series (the "Funds"), the registrant has concluded that the services of a financial expert are not required at this point. Some of the reasons for determining that an audit committee financial expert is not necessary are the following: (i) the Audit Committee's expected access to the Funds' Treasurer, Chief Financial Officer, independent accountants and legal counsel; (ii) the Audit Committee's expected authority under its Charter to engage independent accounting and other experts without seeking approval from the full Board of Trustees; (iii) the Funds' investment strategies based primarily on index investing, and (iv) the small number of Funds currently offered by the trust and the still relatively small size of most of the Funds.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to the Funds:
Services Billed by PwC
February 28, 2009 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity International Enhanced Index Fund | $49,000 | $- | $3,400 | $- |
Fidelity Large Cap Core Enhanced Index Fund | $50,000 | $- | $3,400 | $- |
Fidelity Large Cap Growth Enhanced Index Fund | $49,000 | $- | $3,400 | $- |
Fidelity Large Cap Value Enhanced Index Fund | $49,000 | $- | $3,400 | $- |
Fidelity Mid Cap Value Enhanced Index Fund | $49,000 | $- | $3,400 | $- |
Fidelity Small Cap Value Enhanced Index Fund | $49,000 | $- | $3,400 | $- |
February 29, 2008 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity International Enhanced Index Fund | $44,000 | $- | $3,500 | $- |
Fidelity Large Cap Core Enhanced Index Fund | $50,000 | $- | $3,500 | $- |
Fidelity Large Cap Growth Enhanced Index Fund | $50,000 | $- | $3,500 | $- |
Fidelity Large Cap Value Enhanced Index Fund | $50,000 | $- | $3,500 | $- |
Fidelity Mid Cap Value Enhanced Index Fund | $44,000 | $- | $3,500 | $- |
Fidelity Small Cap Value Enhanced Index Fund | $44,000 | $- | $3,500 | $- |
A Amounts may reflect rounding.
B Fidelity International Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, and Fidelity Small Cap Enhanced Index Fund, commenced operations on December 20, 2007, April 19, 2007, April 19, 2007, April 19, 2007, December 20, 2007 and December 20, 2007, respectively.
The following table presents fees billed by PwC 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 Strategic Advisers, Inc. ("Strategic Advisers") and entities controlling, controlled by, or under common control with Strategic Advisers (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 PwC
| February 28, 2009A | February 29, 2008A,C |
Audit-Related Fees | $2,985,000 | $220,000B |
Tax Fees | $2,000 | $- |
All Other Fees | $- | $-B |
A Amounts may reflect rounding.
B Reflects current period presentation.
C May include amounts billed prior to the Funds' commencement of operations.
"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 assurance services provided to the Fund or Fund Service Provider 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 PwC for services rendered to the Funds, Strategic Advisers (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 relating to Covered Services and Non-Covered Services (each as defined below) for each of the last two fiscal years of the Funds are as follows:
Billed By | February 28, 2009 A | February 29, 2008 A,B |
PwC | $3,430,000 | $585,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Funds' commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and Strategic Advisers' 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 the independent registered public accounting firm relating to the operations or financial reporting of the funds. 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 trust's 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 the trust 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 the trust ("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 the trust ("Non-Covered Service") are not required to be approved, but are reported to the Audit Committee quarterly.
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
Not applicable.
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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | 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 Commonwealth Trust II
By: | /s/Mark Osterheld |
| Mark Osterheld |
| President and Treasurer |
|
|
Date: | April 28, 2009 |
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/Mark Osterheld |
| Mark Osterheld |
| President and Treasurer |
|
|
Date: | April 28, 2009 |
By: | /s/Jeffrey Christian |
| Jeffrey Christian |
| Chief Financial Officer |
|
|
Date: | April 28, 2009 |