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)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | August 31 |
Date of reporting period: | February 28, 2018 |
Item 1.
Reports to Stockholders
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® International Enhanced Index Fund Semi-Annual Report February 28, 2018 |
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Contents
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® International Enhanced Index Fund | |
Board Approval of Investment Advisory Contracts and Management Fees | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Fidelity and any related funds.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
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, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Fidelity® Large Cap Growth Enhanced Index Fund
Investment Summary (Unaudited)
Top Ten Stocks as of February 28, 2018
% of fund's net assets | |
Apple, Inc. | 7.3 |
Amazon.com, Inc. | 4.9 |
Microsoft Corp. | 4.8 |
Facebook, Inc. Class A | 3.6 |
Alphabet, Inc. Class C | 3.0 |
Alphabet, Inc. Class A | 2.4 |
Home Depot, Inc. | 2.1 |
The Boeing Co. | 2.0 |
AbbVie, Inc. | 1.9 |
UnitedHealth Group, Inc. | 1.8 |
33.8 |
Top Market Sectors as of February 28, 2018
% of fund's net assets | |
Information Technology | 40.5 |
Consumer Discretionary | 17.8 |
Health Care | 14.3 |
Industrials | 10.8 |
Consumer Staples | 6.2 |
Financials | 3.4 |
Materials | 2.2 |
Telecommunication Services | 1.8 |
Real Estate | 1.5 |
Energy | 0.2 |
Asset Allocation (% of fund's net assets)
As of February 28, 2018 * | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 3.2%
Fidelity® Large Cap Growth Enhanced Index Fund
Schedule of Investments February 28, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 17.8% | |||
Auto Components - 1.1% | |||
BorgWarner, Inc. | 8,222 | $403,536 | |
Gentex Corp. | 209,293 | 4,753,044 | |
Lear Corp. | 31,608 | 5,897,105 | |
Tenneco, Inc. | 12,091 | 635,382 | |
11,689,067 | |||
Diversified Consumer Services - 0.5% | |||
H&R Block, Inc. | 199,301 | 5,048,294 | |
Hotels, Restaurants & Leisure - 2.0% | |||
Las Vegas Sands Corp. | 91,706 | 6,677,114 | |
McDonald's Corp. | 32,192 | 5,077,966 | |
Royal Caribbean Cruises Ltd. | 43,118 | 5,458,739 | |
Starbucks Corp. | 16,888 | 964,305 | |
U.S. Foods Holding Corp. (a) | 29,453 | 983,436 | |
Wynn Resorts Ltd. | 12,975 | 2,173,313 | |
21,334,873 | |||
Household Durables - 1.9% | |||
D.R. Horton, Inc. | 118,093 | 4,948,097 | |
NVR, Inc. (a) | 152 | 432,162 | |
PulteGroup, Inc. | 171,484 | 4,813,556 | |
Taylor Morrison Home Corp. (a) | 222,882 | 5,001,472 | |
Toll Brothers, Inc. | 122,962 | 5,389,424 | |
20,584,711 | |||
Internet & Direct Marketing Retail - 5.6% | |||
Amazon.com, Inc. (a) | 34,156 | 51,659,242 | |
Netflix, Inc. (a) | 15,917 | 4,637,895 | |
The Booking Holdings, Inc. (a) | 1,464 | 2,977,835 | |
59,274,972 | |||
Leisure Products - 0.2% | |||
Polaris Industries, Inc. (b) | 17,455 | 1,989,695 | |
Media - 2.6% | |||
Comcast Corp. Class A | 203,830 | 7,380,684 | |
Omnicom Group, Inc. (b) | 83,281 | 6,348,511 | |
The Walt Disney Co. | 132,199 | 13,637,649 | |
27,366,844 | |||
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 12,750 | 1,308,660 | |
Target Corp. | 56,672 | 4,273,636 | |
5,582,296 | |||
Specialty Retail - 2.4% | |||
Best Buy Co., Inc. | 3,378 | 244,702 | |
Home Depot, Inc. | 120,833 | 22,024,231 | |
Lowe's Companies, Inc. | 29,316 | 2,626,420 | |
24,895,353 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Carter's, Inc. | 34,156 | 3,985,322 | |
Columbia Sportswear Co. | 1,990 | 150,404 | |
Michael Kors Holdings Ltd. (a) | 87,433 | 5,502,159 | |
NIKE, Inc. Class B | 18,762 | 1,257,617 | |
10,895,502 | |||
TOTAL CONSUMER DISCRETIONARY | 188,661,607 | ||
CONSUMER STAPLES - 6.2% | |||
Beverages - 3.1% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 5,986 | 1,289,863 | |
Dr. Pepper Snapple Group, Inc. | 5,281 | 613,916 | |
PepsiCo, Inc. | 146,051 | 16,026,176 | |
The Coca-Cola Co. | 341,332 | 14,752,369 | |
32,682,324 | |||
Food & Staples Retailing - 0.7% | |||
Costco Wholesale Corp. | 12,558 | 2,397,322 | |
Walmart, Inc. | 56,273 | 5,065,133 | |
7,462,455 | |||
Food Products - 1.2% | |||
Campbell Soup Co. (b) | 75,376 | 3,244,937 | |
General Mills, Inc. | 2,784 | 140,731 | |
Post Holdings, Inc. (a) | 13,341 | 1,010,981 | |
The Hershey Co. | 47,590 | 4,676,193 | |
TreeHouse Foods, Inc. (a)(b) | 38,401 | 1,460,006 | |
Tyson Foods, Inc. Class A | 32,845 | 2,443,011 | |
12,975,859 | |||
Household Products - 0.5% | |||
Procter & Gamble Co. | 73,150 | 5,743,738 | |
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 19,579 | 2,710,517 | |
Tobacco - 0.4% | |||
Altria Group, Inc. | 68,248 | 4,296,212 | |
TOTAL CONSUMER STAPLES | 65,871,105 | ||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
CVR Energy, Inc. | 8,061 | 238,767 | |
The Williams Companies, Inc. | 57,013 | 1,582,681 | |
1,821,448 | |||
FINANCIALS - 3.4% | |||
Capital Markets - 1.9% | |||
BGC Partners, Inc. Class A | 400,561 | 5,295,416 | |
CME Group, Inc. | 16,025 | 2,662,714 | |
Evercore, Inc. Class A | 49,387 | 4,595,460 | |
Federated Investors, Inc. Class B (non-vtg.) (b) | 119,189 | 3,883,178 | |
IntercontinentalExchange, Inc. | 21,196 | 1,549,004 | |
Morningstar, Inc. | 27,665 | 2,585,294 | |
Raymond James Financial, Inc. | 3,191 | 295,838 | |
20,866,904 | |||
Consumer Finance - 0.3% | |||
American Express Co. | 28,778 | 2,806,143 | |
Diversified Financial Services - 0.3% | |||
Leucadia National Corp. | 129,949 | 3,117,477 | |
Insurance - 0.9% | |||
Allstate Corp. | 7,952 | 733,652 | |
Progressive Corp. | 146,092 | 8,411,977 | |
Willis Group Holdings PLC | 2,107 | 332,695 | |
9,478,324 | |||
Mortgage Real Estate Investment Trusts - 0.0% | |||
New Residential Investment Corp. | 17,883 | 288,453 | |
TOTAL FINANCIALS | 36,557,301 | ||
HEALTH CARE - 14.3% | |||
Biotechnology - 5.1% | |||
AbbVie, Inc. | 174,000 | 20,154,420 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,584 | 190,333 | |
Amgen, Inc. | 45,812 | 8,418,871 | |
Biogen, Inc. (a) | 3,485 | 1,007,130 | |
Celgene Corp. (a) | 116,333 | 10,134,931 | |
Gilead Sciences, Inc. | 141,153 | 11,112,976 | |
Neurocrine Biosciences, Inc. (a) | 700 | 59,101 | |
United Therapeutics Corp. (a) | 23,768 | 2,753,523 | |
53,831,285 | |||
Health Care Equipment & Supplies - 1.2% | |||
Baxter International, Inc. | 82,205 | 5,572,677 | |
Hill-Rom Holdings, Inc. | 14,318 | 1,197,844 | |
Medtronic PLC | 71,520 | 5,713,733 | |
Steris PLC | 1,275 | 116,408 | |
12,600,662 | |||
Health Care Providers & Services - 4.4% | |||
Aetna, Inc. | 2,115 | 374,482 | |
AmerisourceBergen Corp. | 37,975 | 3,613,701 | |
Centene Corp. (a) | 54,624 | 5,539,966 | |
Express Scripts Holding Co. (a) | 72,331 | 5,457,374 | |
Humana, Inc. | 31,186 | 8,476,979 | |
Quest Diagnostics, Inc. | 11,772 | 1,213,105 | |
UnitedHealth Group, Inc. | 82,502 | 18,658,652 | |
Wellcare Health Plans, Inc. (a) | 18,969 | 3,678,279 | |
47,012,538 | |||
Pharmaceuticals - 3.6% | |||
Bristol-Myers Squibb Co. | 147,434 | 9,760,131 | |
Eli Lilly & Co. | 144,174 | 11,104,281 | |
Johnson & Johnson | 72,813 | 9,456,952 | |
Merck & Co., Inc. | 101,256 | 5,490,100 | |
Pfizer, Inc. | 80,139 | 2,909,847 | |
38,721,311 | |||
TOTAL HEALTH CARE | 152,165,796 | ||
INDUSTRIALS - 10.8% | |||
Aerospace & Defense - 3.8% | |||
Harris Corp. | 5,403 | 843,678 | |
Lockheed Martin Corp. | 33,832 | 11,923,750 | |
Raytheon Co. | 21,815 | 4,744,981 | |
Rockwell Collins, Inc. | 8,827 | 1,215,654 | |
The Boeing Co. | 59,926 | 21,705,796 | |
40,433,859 | |||
Air Freight & Logistics - 0.1% | |||
United Parcel Service, Inc. Class B | 4,725 | 493,337 | |
Airlines - 0.4% | |||
Alaska Air Group, Inc. | 11,339 | 731,366 | |
Copa Holdings SA Class A | 12,407 | 1,686,980 | |
Southwest Airlines Co. | 22,003 | 1,272,654 | |
3,691,000 | |||
Building Products - 0.4% | |||
Fortune Brands Home & Security, Inc. | 9,870 | 598,714 | |
Owens Corning | 43,458 | 3,533,135 | |
4,131,849 | |||
Commercial Services & Supplies - 1.8% | |||
Deluxe Corp. | 4,570 | 324,470 | |
KAR Auction Services, Inc. | 113,348 | 6,129,860 | |
LSC Communications, Inc. | 50,220 | 731,203 | |
Republic Services, Inc. | 70,117 | 4,710,460 | |
Waste Management, Inc. | 89,249 | 7,703,974 | |
19,599,967 | |||
Construction & Engineering - 0.0% | |||
EMCOR Group, Inc. | 4,979 | 379,947 | |
Electrical Equipment - 0.1% | |||
Acuity Brands, Inc. (b) | 6,613 | 942,882 | |
Industrial Conglomerates - 0.8% | |||
3M Co. | 29,517 | 6,951,549 | |
Honeywell International, Inc. | 12,013 | 1,815,284 | |
8,766,833 | |||
Machinery - 2.6% | |||
Allison Transmission Holdings, Inc. | 145,552 | 5,768,226 | |
Caterpillar, Inc. | 74,546 | 11,527,048 | |
Cummins, Inc. | 35,811 | 6,022,336 | |
Graco, Inc. | 26,577 | 1,178,690 | |
Hillenbrand, Inc. | 6,963 | 305,676 | |
Illinois Tool Works, Inc. | 8,811 | 1,422,448 | |
Ingersoll-Rand PLC | 5,238 | 465,134 | |
Toro Co. | 11,490 | 730,419 | |
27,419,977 | |||
Professional Services - 0.6% | |||
Robert Half International, Inc. | 103,026 | 5,879,694 | |
Road & Rail - 0.2% | |||
Union Pacific Corp. | 19,705 | 2,566,576 | |
Trading Companies & Distributors - 0.0% | |||
Beacon Roofing Supply, Inc. (a) | 2,516 | 133,122 | |
TOTAL INDUSTRIALS | 114,439,043 | ||
INFORMATION TECHNOLOGY - 40.5% | |||
Communications Equipment - 1.8% | |||
Arista Networks, Inc. (a) | 18,997 | 5,124,251 | |
Cisco Systems, Inc. | 129,450 | 5,796,771 | |
F5 Networks, Inc. (a) | 43,664 | 6,484,977 | |
Motorola Solutions, Inc. | 18,272 | 1,939,573 | |
19,345,572 | |||
Electronic Equipment & Components - 0.0% | |||
CDW Corp. | 5,541 | 404,105 | |
Internet Software & Services - 9.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 23,472 | 25,911,210 | |
Class C (a) | 28,572 | 31,564,346 | |
Facebook, Inc. Class A (a) | 213,381 | 38,050,100 | |
LogMeIn, Inc. | 2,837 | 327,815 | |
95,853,471 | |||
IT Services - 7.6% | |||
Accenture PLC Class A | 14,735 | 2,372,482 | |
Alliance Data Systems Corp. | 25,193 | 6,070,505 | |
Amdocs Ltd. | 16,745 | 1,101,654 | |
Broadridge Financial Solutions, Inc. | 38,380 | 3,852,584 | |
Cognizant Technology Solutions Corp. Class A | 64,306 | 5,274,378 | |
CoreLogic, Inc. (a) | 12,703 | 577,987 | |
DXC Technology Co. | 35,081 | 3,597,206 | |
Fidelity National Information Services, Inc. | 68,581 | 6,664,702 | |
IBM Corp. | 78,429 | 12,221,591 | |
MasterCard, Inc. Class A | 41,142 | 7,231,118 | |
Maximus, Inc. | 37,223 | 2,493,197 | |
PayPal Holdings, Inc. (a) | 19,728 | 1,566,600 | |
The Western Union Co. | 295,801 | 5,862,776 | |
Total System Services, Inc. | 79,221 | 6,967,487 | |
Visa, Inc. Class A | 117,009 | 14,385,086 | |
80,239,353 | |||
Semiconductors & Semiconductor Equipment - 6.0% | |||
Applied Materials, Inc. | 183,387 | 10,561,257 | |
Broadcom Ltd. | 30,003 | 7,394,539 | |
Cypress Semiconductor Corp. | 33,978 | 593,596 | |
Intel Corp. | 116,819 | 5,758,009 | |
KLA-Tencor Corp. | 61,454 | 6,963,353 | |
Maxim Integrated Products, Inc. | 41,533 | 2,531,021 | |
Micron Technology, Inc. (a) | 165,819 | 8,093,625 | |
NVIDIA Corp. | 21,650 | 5,239,300 | |
NXP Semiconductors NV (a) | 6,594 | 822,008 | |
Teradyne, Inc. | 46,198 | 2,097,389 | |
Texas Instruments, Inc. | 128,159 | 13,886,028 | |
63,940,125 | |||
Software - 7.5% | |||
Adobe Systems, Inc. (a) | 66,664 | 13,941,442 | |
CA Technologies, Inc. | 11,185 | 392,594 | |
Cadence Design Systems, Inc. (a) | 45,178 | 1,751,551 | |
Citrix Systems, Inc. (a) | 19,877 | 1,828,684 | |
Intuit, Inc. | 46,369 | 7,737,131 | |
Microsoft Corp. | 548,052 | 51,390,836 | |
Oracle Corp. | 35,709 | 1,809,375 | |
Red Hat, Inc. (a) | 752 | 110,845 | |
Salesforce.com, Inc. (a) | 6,196 | 720,285 | |
79,682,743 | |||
Technology Hardware, Storage & Peripherals - 8.6% | |||
Apple, Inc. | 434,681 | 77,425,376 | |
HP, Inc. | 241,258 | 5,643,025 | |
NetApp, Inc. | 29,585 | 1,791,372 | |
Seagate Technology LLC (b) | 11,449 | 611,377 | |
Western Digital Corp. | 67,384 | 5,865,103 | |
91,336,253 | |||
TOTAL INFORMATION TECHNOLOGY | 430,801,622 | ||
MATERIALS - 2.2% | |||
Chemicals - 1.5% | |||
DowDuPont, Inc. | 14,592 | 1,025,818 | |
Huntsman Corp. | 165,160 | 5,329,713 | |
LyondellBasell Industries NV Class A | 7,599 | 822,364 | |
Monsanto Co. | 25,560 | 3,153,337 | |
The Scotts Miracle-Gro Co. Class A (b) | 2,590 | 232,686 | |
Westlake Chemical Corp. | 50,580 | 5,475,791 | |
16,039,709 | |||
Containers & Packaging - 0.2% | |||
Berry Global Group, Inc. (a) | 33,014 | 1,795,962 | |
Metals & Mining - 0.0% | |||
Freeport-McMoRan, Inc. (a) | 5,689 | 105,815 | |
Paper & Forest Products - 0.5% | |||
Louisiana-Pacific Corp. | 193,515 | 5,515,178 | |
TOTAL MATERIALS | 23,456,664 | ||
REAL ESTATE - 1.5% | |||
Equity Real Estate Investment Trusts (REITs) - 1.5% | |||
American Homes 4 Rent Class A | 14,412 | 276,566 | |
CubeSmart | 165,331 | 4,432,524 | |
Equity Lifestyle Properties, Inc. | 2,082 | 176,158 | |
Gaming & Leisure Properties | 164,518 | 5,471,869 | |
Hudson Pacific Properties, Inc. | 17,132 | 540,857 | |
Weyerhaeuser Co. | 149,804 | 5,247,634 | |
16,145,608 | |||
TELECOMMUNICATION SERVICES - 1.8% | |||
Diversified Telecommunication Services - 1.2% | |||
Verizon Communications, Inc. | 269,968 | 12,888,272 | |
Wireless Telecommunication Services - 0.6% | |||
T-Mobile U.S., Inc. (a) | 100,883 | 6,114,519 | |
TOTAL TELECOMMUNICATION SERVICES | 19,002,791 | ||
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
NRG Yield, Inc. Class C | 6,065 | 94,917 | |
TOTAL COMMON STOCKS | |||
(Cost $776,773,597) | 1,049,017,902 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 1.18% 6/21/18 (c) | |||
(Cost $1,195,632) | 1,200,000 | 1,193,859 | |
Shares | Value | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund, 1.41% (d) | 11,387,996 | $11,390,274 | |
Fidelity Securities Lending Cash Central Fund 1.42% (d)(e) | 14,666,326 | 14,667,792 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $26,058,066) | 26,058,066 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $804,027,295) | 1,076,269,827 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (13,430,019) | ||
NET ASSETS - 100% | $1,062,839,808 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P 500 Index Contracts (United States) | 100 | March 2018 | $13,572,000 | $262,504 | $262,504 |
The notional amount of futures purchased as a percentage of Net Assets is 1.3%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $638,714.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $65,376 |
Fidelity Securities Lending Cash Central Fund | 4,146 |
Total | $69,522 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of February 28, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $188,661,607 | $188,661,607 | $-- | $-- |
Consumer Staples | 65,871,105 | 65,871,105 | -- | -- |
Energy | 1,821,448 | 1,821,448 | -- | -- |
Financials | 36,557,301 | 36,557,301 | -- | -- |
Health Care | 152,165,796 | 152,165,796 | -- | -- |
Industrials | 114,439,043 | 114,439,043 | -- | -- |
Information Technology | 430,801,622 | 430,801,622 | -- | -- |
Materials | 23,456,664 | 23,456,664 | -- | -- |
Real Estate | 16,145,608 | 16,145,608 | -- | -- |
Telecommunication Services | 19,002,791 | 19,002,791 | -- | -- |
Utilities | 94,917 | 94,917 | -- | -- |
U.S. Government and Government Agency Obligations | 1,193,859 | -- | 1,193,859 | -- |
Money Market Funds | 26,058,066 | 26,058,066 | -- | -- |
Total Investments in Securities: | $1,076,269,827 | $1,075,075,968 | $1,193,859 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $262,504 | $262,504 | $-- | $-- |
Total Assets | $262,504 | $262,504 | $-- | $-- |
Total Derivative Instruments: | $262,504 | $262,504 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $262,504 | $0 |
Total Equity Risk | 262,504 | 0 |
Total Value of Derivatives | $262,504 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Large Cap Growth Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
February 28, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $14,143,573) — See accompanying schedule: Unaffiliated issuers (cost $777,969,229) | $1,050,211,761 | |
Fidelity Central Funds (cost $26,058,066) | 26,058,066 | |
Total Investment in Securities (cost $804,027,295) | $1,076,269,827 | |
Cash | 94,403 | |
Receivable for investments sold | 10,121,835 | |
Receivable for fund shares sold | 1,194,612 | |
Dividends receivable | 1,382,370 | |
Distributions receivable from Fidelity Central Funds | 14,018 | |
Total assets | 1,089,077,065 | |
Liabilities | ||
Payable for investments purchased | $10,500,493 | |
Payable for fund shares redeemed | 527,184 | |
Accrued management fee | 341,720 | |
Payable for daily variation margin on futures contracts | 158,557 | |
Other payables and accrued expenses | 40,106 | |
Collateral on securities loaned | 14,669,197 | |
Total liabilities | 26,237,257 | |
Net Assets | $1,062,839,808 | |
Net Assets consist of: | ||
Paid in capital | $753,438,901 | |
Undistributed net investment income | 2,101,829 | |
Accumulated undistributed net realized gain (loss) on investments | 34,794,042 | |
Net unrealized appreciation (depreciation) on investments | 272,505,036 | |
Net Assets, for 54,153,924 shares outstanding | $1,062,839,808 | |
Net Asset Value, offering price and redemption price per share ($1,062,839,808 ÷ 54,153,924 shares) | $19.63 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended February 28, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $7,557,102 | |
Interest | 7,063 | |
Income from Fidelity Central Funds (including $4,146 from security lending) | 69,522 | |
Total income | 7,633,687 | |
Expenses | ||
Management fee | $1,945,240 | |
Independent trustees' fees and expenses | 10,104 | |
Miscellaneous | 44,981 | |
Total expenses before reductions | 2,000,325 | |
Expense reductions | (277) | 2,000,048 |
Net investment income (loss) | 5,633,639 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 46,425,011 | |
Fidelity Central Funds | (363) | |
Futures contracts | 788,874 | |
Total net realized gain (loss) | 47,213,522 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 87,470,133 | |
Fidelity Central Funds | (1,041) | |
Futures contracts | 107,959 | |
Total change in net unrealized appreciation (depreciation) | 87,577,051 | |
Net gain (loss) | 134,790,573 | |
Net increase (decrease) in net assets resulting from operations | $140,424,212 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended February 28, 2018 (Unaudited) | Six months ended August 31, 2017 | Year ended February 28, 2017 | |
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $5,633,639 | $6,482,495 | $9,269,617 |
Net realized gain (loss) | 47,213,522 | 16,535,611 | 11,025,224 |
Change in net unrealized appreciation (depreciation) | 87,577,051 | 38,291,752 | 102,035,283 |
Net increase (decrease) in net assets resulting from operations | 140,424,212 | 61,309,858 | 122,330,124 |
Distributions to shareholders from net investment income | (9,595,921) | (2,076,402) | (7,111,776) |
Distributions to shareholders from net realized gain | (24,876,383) | (8,201,785) | – |
Total distributions | (34,472,304) | (10,278,187) | (7,111,776) |
Share transactions | |||
Proceeds from sales of shares | 132,881,899 | 148,068,388 | 438,141,867 |
Reinvestment of distributions | 32,926,411 | 9,882,890 | 6,777,223 |
Cost of shares redeemed | (133,252,008) | (110,113,958) | (183,763,026) |
Net increase (decrease) in net assets resulting from share transactions | 32,556,302 | 47,837,320 | 261,156,064 |
Total increase (decrease) in net assets | 138,508,210 | 98,868,991 | 376,374,412 |
Net Assets | |||
Beginning of period | 924,331,598 | 825,462,607 | 449,088,195 |
End of period | $1,062,839,808 | $924,331,598 | $825,462,607 |
Other Information | |||
Undistributed net investment income end of period | $2,101,829 | $6,064,111 | $2,048,261 |
Shares | |||
Sold | 6,932,467 | 8,778,514 | 28,762,124 |
Issued in reinvestment of distributions | 1,756,075 | 600,784 | 429,482 |
Redeemed | (7,020,184) | (6,458,191) | (12,024,884) |
Net increase (decrease) | 1,668,358 | 2,921,107 | 17,166,722 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Large Cap Growth Enhanced Index Fund
Six months ended (Unaudited) February 28, | Years endedAugust 31, | ||||||
2018 | 2017 A | 2017B | 2016 C | 2015B | 2014B | 2013B | |
Selected Per–Share Data | |||||||
Net asset value, beginning of period | $17.61 | $16.65 | $13.86 | $15.42 | $14.22 | $11.77 | $10.93 |
Income from Investment Operations | |||||||
Net investment income (loss)D | .11 | .12 | .22 | .20 | .20 | .18 | .20 |
Net realized and unrealized gain (loss) | 2.57 | 1.04 | 2.73 | (1.09) | 2.15 | 3.15 | .81 |
Total from investment operations | 2.68 | 1.16 | 2.95 | (.89) | 2.35 | 3.33 | 1.01 |
Distributions from net investment income | (.18) | (.04) | (.16) | (.18) | (.15) | (.17) | (.17) |
Distributions from net realized gain | (.48) | (.16) | – | (.49) | (1.00) | (.71) | – |
Total distributions | (.66) | (.20) | (.16) | (.67) | (1.15) | (.88) | (.17) |
Net asset value, end of period | $19.63 | $17.61 | $16.65 | $13.86 | $15.42 | $14.22 | $11.77 |
Total ReturnE,F | 15.40% | 7.04% | 21.33% | (6.01)% | 17.46% | 29.08% | 9.36% |
Ratios to Average Net AssetsG,H | |||||||
Expenses before reductions | .40%I | .40%I | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .40%I | .40%I | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .40%I | .40%I | .45% | .45% | .45% | .45% | .45% |
Net investment income (loss) | 1.12%I | 1.44%I | 1.43% | 1.38% | 1.37% | 1.41% | 1.80% |
Supplemental Data | |||||||
Net assets, end of period (000 omitted) | $1,062,840 | $924,332 | $825,463 | $449,088 | $404,087 | $248,855 | $171,392 |
Portfolio turnover rateJ | 102%I | 110%I | 86% | 89% | 69% | 83% | 87% |
A For the six month period ended August 31. The Fund changed its fiscal year end from February 28 to August 31, effective August 31, 2017.
B For the year ended February 28.
C For the year ended February 29.
D Calculated based on average shares outstanding during the period.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Large Cap Value Enhanced Index Fund
Investment Summary (Unaudited)
Top Ten Stocks as of February 28, 2018
% of fund's net assets | |
JPMorgan Chase & Co. | 3.7 |
Exxon Mobil Corp. | 3.1 |
Berkshire Hathaway, Inc. Class B | 3.0 |
Johnson & Johnson | 2.6 |
Bank of America Corp. | 2.5 |
Intel Corp. | 2.4 |
AT&T, Inc. | 2.3 |
Cisco Systems, Inc. | 2.2 |
Pfizer, Inc. | 2.1 |
Citigroup, Inc. | 2.1 |
26.0 |
Top Market Sectors as of February 28, 2018
% of fund's net assets | |
Financials | 25.6 |
Health Care | 15.4 |
Information Technology | 11.0 |
Consumer Staples | 9.1 |
Energy | 8.9 |
Industrials | 8.3 |
Consumer Discretionary | 7.7 |
Utilities | 4.3 |
Materials | 3.5 |
Telecommunication Services | 2.6 |
Asset Allocation (% of fund's net assets)
As of February 28, 2018 * | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 5.1%
Fidelity® Large Cap Value Enhanced Index Fund
Schedule of Investments February 28, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 7.7% | |||
Auto Components - 0.6% | |||
BorgWarner, Inc. | 56,544 | $2,775,180 | |
Gentex Corp. | 103,447 | 2,349,281 | |
Lear Corp. | 70,666 | 13,184,156 | |
Tenneco, Inc. | 39,399 | 2,070,417 | |
20,379,034 | |||
Automobiles - 0.8% | |||
Ford Motor Co. | 2,706,614 | 28,717,175 | |
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. (a) | 241,819 | 6,125,275 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Las Vegas Sands Corp. | 22,393 | 1,630,434 | |
Royal Caribbean Cruises Ltd. | 175,115 | 22,169,559 | |
U.S. Foods Holding Corp. (b) | 85,193 | 2,844,594 | |
26,644,587 | |||
Household Durables - 1.1% | |||
PulteGroup, Inc. | 369,577 | 10,374,026 | |
Taylor Morrison Home Corp. (b) | 487,483 | 10,939,119 | |
Toll Brothers, Inc. | 405,802 | 17,786,302 | |
39,099,447 | |||
Media - 1.7% | |||
Liberty Broadband Corp. Class C (b) | 2,550 | 224,094 | |
MSG Network, Inc. Class A (b) | 132,859 | 3,241,760 | |
Tegna, Inc. | 941,464 | 12,107,227 | |
The Walt Disney Co. | 242,094 | 24,974,417 | |
Time Warner, Inc. | 169,631 | 15,768,898 | |
Twenty-First Century Fox, Inc. Class A | 116,741 | 4,298,404 | |
60,614,800 | |||
Multiline Retail - 1.7% | |||
Kohl's Corp. | 281,191 | 18,583,913 | |
Macy's, Inc. (a) | 636,736 | 18,726,406 | |
Target Corp. | 287,256 | 21,661,975 | |
58,972,294 | |||
Specialty Retail - 0.2% | |||
GameStop Corp. Class A (a) | 345,280 | 5,417,443 | |
Office Depot, Inc. | 164,861 | 433,584 | |
5,851,027 | |||
Textiles, Apparel & Luxury Goods - 0.6% | |||
Deckers Outdoor Corp. (b) | 1,645 | 155,584 | |
Michael Kors Holdings Ltd. (b) | 305,140 | 19,202,460 | |
Ralph Lauren Corp. | 7,880 | 834,019 | |
20,192,063 | |||
TOTAL CONSUMER DISCRETIONARY | 266,595,702 | ||
CONSUMER STAPLES - 9.1% | |||
Beverages - 1.3% | |||
Molson Coors Brewing Co. Class B | 12,020 | 916,525 | |
PepsiCo, Inc. | 210,313 | 23,077,645 | |
The Coca-Cola Co. | 507,294 | 21,925,247 | |
45,919,417 | |||
Food & Staples Retailing - 2.9% | |||
CVS Health Corp. | 250,291 | 16,952,209 | |
Walgreens Boots Alliance, Inc. | 435,755 | 30,019,162 | |
Walmart, Inc. | 587,760 | 52,904,278 | |
99,875,649 | |||
Food Products - 1.9% | |||
Archer Daniels Midland Co. | 447,204 | 18,567,910 | |
ConAgra Foods, Inc. | 297,443 | 10,746,616 | |
Ingredion, Inc. | 9,627 | 1,257,671 | |
Mondelez International, Inc. | 11,706 | 513,893 | |
Sanderson Farms, Inc. (a) | 16,464 | 2,027,542 | |
The J.M. Smucker Co. | 147,891 | 18,678,633 | |
Tyson Foods, Inc. Class A | 197,767 | 14,709,909 | |
66,502,174 | |||
Household Products - 2.3% | |||
Colgate-Palmolive Co. | 161,525 | 11,140,379 | |
Procter & Gamble Co. | 884,595 | 69,458,399 | |
80,598,778 | |||
Personal Products - 0.0% | |||
Estee Lauder Companies, Inc. Class A | 6,753 | 934,885 | |
Tobacco - 0.7% | |||
Philip Morris International, Inc. | 215,629 | 22,328,383 | |
TOTAL CONSUMER STAPLES | 316,159,286 | ||
ENERGY - 8.9% | |||
Energy Equipment & Services - 0.4% | |||
Dril-Quip, Inc. (a)(b) | 101,298 | 4,563,475 | |
Schlumberger Ltd. | 118,873 | 7,802,824 | |
12,366,299 | |||
Oil, Gas & Consumable Fuels - 8.5% | |||
Antero Resources Corp. (a)(b) | 41,582 | 782,157 | |
Cabot Oil & Gas Corp. | 174,043 | 4,204,879 | |
Chevron Corp. | 592,530 | 66,315,958 | |
Cimarex Energy Co. | 13,609 | 1,307,689 | |
ConocoPhillips Co. | 652,417 | 35,432,767 | |
Devon Energy Corp. | 465,341 | 14,272,008 | |
Exxon Mobil Corp. | 1,403,605 | 106,309,043 | |
HollyFrontier Corp. | 46,656 | 1,998,276 | |
Marathon Oil Corp. | 799,827 | 11,613,488 | |
Marathon Petroleum Corp. | 391,821 | 25,100,053 | |
Murphy Oil Corp. (a) | 19,281 | 488,773 | |
Valero Energy Corp. | 321,229 | 29,045,526 | |
World Fuel Services Corp. | 15,422 | 352,393 | |
297,223,010 | |||
TOTAL ENERGY | 309,589,309 | ||
FINANCIALS - 25.6% | |||
Banks - 11.4% | |||
Bank of America Corp. | 2,675,530 | 85,884,513 | |
BB&T Corp. | 28,871 | 1,569,139 | |
CIT Group, Inc. | 4,842 | 256,868 | |
Citigroup, Inc. | 951,320 | 71,815,147 | |
Huntington Bancshares, Inc. | 42,895 | 673,452 | |
JPMorgan Chase & Co. | 1,108,724 | 128,057,621 | |
M&T Bank Corp. | 7,313 | 1,388,300 | |
Peoples United Financial, Inc. | 34,426 | 658,914 | |
PNC Financial Services Group, Inc. | 17,112 | 2,697,878 | |
Regions Financial Corp. | 1,278,565 | 24,816,947 | |
TCF Financial Corp. | 9,511 | 212,095 | |
U.S. Bancorp | 118,469 | 6,439,975 | |
Wells Fargo & Co. | 1,219,643 | 71,239,348 | |
395,710,197 | |||
Capital Markets - 2.4% | |||
Bank of New York Mellon Corp. | 91,775 | 5,233,928 | |
BGC Partners, Inc. Class A | 239,752 | 3,169,521 | |
BlackRock, Inc. Class A | 758 | 416,468 | |
CME Group, Inc. | 51,777 | 8,603,266 | |
Federated Investors, Inc. Class B (non-vtg.) (a) | 207,649 | 6,765,204 | |
Franklin Resources, Inc. | 292,464 | 11,309,583 | |
Goldman Sachs Group, Inc. | 32,231 | 8,474,497 | |
Lazard Ltd. Class A | 9,687 | 522,807 | |
Legg Mason, Inc. | 10,835 | 432,425 | |
LPL Financial | 55,493 | 3,566,535 | |
Morgan Stanley | 627,766 | 35,167,451 | |
Raymond James Financial, Inc. | 19,938 | 1,848,452 | |
SEI Investments Co. | 4 | 291 | |
85,510,428 | |||
Consumer Finance - 2.2% | |||
American Express Co. | 380,311 | 37,084,126 | |
Discover Financial Services | 259,293 | 20,440,067 | |
Synchrony Financial | 502,301 | 18,278,733 | |
75,802,926 | |||
Diversified Financial Services - 3.5% | |||
Berkshire Hathaway, Inc. Class B (b) | 494,694 | 102,500,597 | |
Donnelley Financial Solutions, Inc. (b) | 35,799 | 619,681 | |
Leucadia National Corp. | 770,732 | 18,489,861 | |
121,610,139 | |||
Insurance - 4.2% | |||
AFLAC, Inc. | 295,181 | 26,235,687 | |
Allstate Corp. | 145,261 | 13,401,780 | |
American National Insurance Co. | 4,789 | 559,834 | |
Aspen Insurance Holdings Ltd. | 23,340 | 849,576 | |
Assured Guaranty Ltd. | 66,973 | 2,315,926 | |
Chubb Ltd. | 5,728 | 812,918 | |
CNA Financial Corp. | 6,489 | 331,328 | |
First American Financial Corp. | 192,398 | 11,164,856 | |
FNF Group | 532,465 | 21,261,327 | |
Kemper Corp. | 7,351 | 414,596 | |
Loews Corp. | 365,540 | 18,032,088 | |
MetLife, Inc. | 27,245 | 1,258,447 | |
Old Republic International Corp. (a) | 781,317 | 15,649,780 | |
Progressive Corp. | 303,240 | 17,460,559 | |
Prudential Financial, Inc. | 76,130 | 8,094,142 | |
Reinsurance Group of America, Inc. | 1,380 | 212,230 | |
The Travelers Companies, Inc. | 39,697 | 5,517,883 | |
Torchmark Corp. | 2,531 | 216,071 | |
Unum Group | 80,526 | 4,103,605 | |
147,892,633 | |||
Mortgage Real Estate Investment Trusts - 1.9% | |||
AGNC Investment Corp. (a) | 847,154 | 15,197,943 | |
Annaly Capital Management, Inc. | 2,024,574 | 20,306,477 | |
Chimera Investment Corp. | 680,719 | 11,408,850 | |
MFA Financial, Inc. | 1,299,947 | 9,255,623 | |
New Residential Investment Corp. | 119,246 | 1,923,438 | |
Starwood Property Trust, Inc. | 97,862 | 1,981,706 | |
Two Harbors Investment Corp. | 363,397 | 5,338,302 | |
65,412,339 | |||
TOTAL FINANCIALS | 891,938,662 | ||
HEALTH CARE - 15.4% | |||
Biotechnology - 2.2% | |||
Amgen, Inc. | 239,877 | 44,082,196 | |
Biogen, Inc. (b) | 8,352 | 2,413,644 | |
Gilead Sciences, Inc. | 241,286 | 18,996,447 | |
United Therapeutics Corp. (b) | 85,927 | 9,954,643 | |
75,446,930 | |||
Health Care Equipment & Supplies - 1.9% | |||
Abbott Laboratories | 153,673 | 9,271,092 | |
Baxter International, Inc. | 385,721 | 26,148,027 | |
Medtronic PLC | 379,790 | 30,341,423 | |
65,760,542 | |||
Health Care Providers & Services - 3.2% | |||
Aetna, Inc. | 39,588 | 7,009,451 | |
Anthem, Inc. | 92,086 | 21,675,203 | |
Centene Corp. (b) | 169,428 | 17,183,388 | |
Express Scripts Holding Co. (b) | 384,999 | 29,048,175 | |
Humana, Inc. | 67,126 | 18,246,189 | |
Molina Healthcare, Inc. (a)(b) | 47,967 | 3,468,014 | |
Quest Diagnostics, Inc. | 138,743 | 14,297,466 | |
Wellcare Health Plans, Inc. (b) | 3,742 | 725,611 | |
111,653,497 | |||
Life Sciences Tools & Services - 0.1% | |||
Bruker Corp. | 149,013 | 4,567,248 | |
Pharmaceuticals - 8.0% | |||
Allergan PLC | 60,374 | 9,310,878 | |
Bristol-Myers Squibb Co. | 484,547 | 32,077,011 | |
Eli Lilly & Co. | 220,816 | 17,007,248 | |
Johnson & Johnson | 691,618 | 89,827,346 | |
Merck & Co., Inc. | 1,034,016 | 56,064,348 | |
Pfizer, Inc. | 2,012,911 | 73,088,798 | |
277,375,629 | |||
TOTAL HEALTH CARE | 534,803,846 | ||
INDUSTRIALS - 8.3% | |||
Aerospace & Defense - 2.1% | |||
Lockheed Martin Corp. | 59,581 | 20,998,728 | |
Raytheon Co. | 137,976 | 30,011,160 | |
Spirit AeroSystems Holdings, Inc. Class A | 153,576 | 14,019,953 | |
United Technologies Corp. | 72,271 | 9,737,795 | |
74,767,636 | |||
Airlines - 0.2% | |||
Alaska Air Group, Inc. | 63,904 | 4,121,808 | |
Copa Holdings SA Class A | 16,239 | 2,208,017 | |
6,329,825 | |||
Building Products - 0.6% | |||
Owens Corning | 236,309 | 19,211,922 | |
Commercial Services & Supplies - 1.4% | |||
Deluxe Corp. | 44,018 | 3,125,278 | |
KAR Auction Services, Inc. | 283,268 | 15,319,133 | |
LSC Communications, Inc. | 62,128 | 904,584 | |
Pitney Bowes, Inc. | 16,291 | 202,008 | |
Republic Services, Inc. | 206,733 | 13,888,323 | |
Waste Management, Inc. | 186,391 | 16,089,271 | |
49,528,597 | |||
Construction & Engineering - 0.0% | |||
EMCOR Group, Inc. | 16,511 | 1,259,954 | |
Electrical Equipment - 0.6% | |||
Eaton Corp. PLC | 239,196 | 19,303,117 | |
Industrial Conglomerates - 1.0% | |||
General Electric Co. | 789,861 | 11,144,939 | |
Honeywell International, Inc. | 161,740 | 24,440,531 | |
35,585,470 | |||
Machinery - 2.0% | |||
AGCO Corp. | 128,785 | 8,577,081 | |
Allison Transmission Holdings, Inc. | 444,677 | 17,622,550 | |
Caterpillar, Inc. | 129,212 | 19,980,052 | |
Cummins, Inc. | 134,770 | 22,664,271 | |
Terex Corp. | 6,299 | 261,534 | |
Toro Co. | 1,315 | 83,595 | |
69,189,083 | |||
Professional Services - 0.4% | |||
Manpower, Inc. | 56,497 | 6,692,635 | |
Robert Half International, Inc. | 130,168 | 7,428,688 | |
14,121,323 | |||
TOTAL INDUSTRIALS | 289,296,927 | ||
INFORMATION TECHNOLOGY - 11.0% | |||
Communications Equipment - 2.9% | |||
Arris International PLC (b) | 101,231 | 2,581,391 | |
Cisco Systems, Inc. | 1,722,219 | 77,120,967 | |
Juniper Networks, Inc. | 779,215 | 19,994,657 | |
Motorola Solutions, Inc. | 23,925 | 2,539,639 | |
102,236,654 | |||
Electronic Equipment & Components - 0.2% | |||
Tech Data Corp. (b) | 35,867 | 3,706,496 | |
Vishay Intertechnology, Inc. | 77,304 | 1,422,394 | |
5,128,890 | |||
IT Services - 1.0% | |||
Amdocs Ltd. | 83,114 | 5,468,070 | |
Fidelity National Information Services, Inc. | 75,570 | 7,343,893 | |
IBM Corp. | 109,702 | 17,094,863 | |
The Western Union Co. | 175,864 | 3,485,624 | |
33,392,450 | |||
Semiconductors & Semiconductor Equipment - 4.2% | |||
Applied Materials, Inc. | 206,382 | 11,885,539 | |
Intel Corp. | 1,694,487 | 83,521,264 | |
KLA-Tencor Corp. | 28,203 | 3,195,682 | |
Marvell Technology Group Ltd. | 502,075 | 11,793,742 | |
Micron Technology, Inc. (b) | 320,401 | 15,638,773 | |
NXP Semiconductors NV (b) | 11,667 | 1,454,408 | |
Qualcomm, Inc. | 305,189 | 19,837,285 | |
147,326,693 | |||
Software - 0.5% | |||
Oracle Corp. | 364,507 | 18,469,570 | |
Technology Hardware, Storage & Peripherals - 2.2% | |||
HP, Inc. | 1,282,038 | 29,986,869 | |
NetApp, Inc. | 73,438 | 4,446,671 | |
Seagate Technology LLC (a) | 339,777 | 18,144,092 | |
Western Digital Corp. | 286,303 | 24,919,813 | |
77,497,445 | |||
TOTAL INFORMATION TECHNOLOGY | 384,051,702 | ||
MATERIALS - 3.5% | |||
Chemicals - 2.0% | |||
DowDuPont, Inc. | 79,343 | 5,577,813 | |
Eastman Chemical Co. | 166,359 | 16,815,568 | |
Huntsman Corp. | 553,093 | 17,848,311 | |
LyondellBasell Industries NV Class A | 178,799 | 19,349,628 | |
The Scotts Miracle-Gro Co. Class A (a) | 43,426 | 3,901,392 | |
Trinseo SA | 15,481 | 1,232,288 | |
Westlake Chemical Corp. | 47,736 | 5,167,899 | |
69,892,899 | |||
Containers & Packaging - 0.1% | |||
Berry Global Group, Inc. (b) | 10,835 | 589,424 | |
WestRock Co. | 73,340 | 4,822,838 | |
5,412,262 | |||
Metals & Mining - 0.8% | |||
Freeport-McMoRan, Inc. (b) | 916,898 | 17,054,303 | |
Newmont Mining Corp. | 2,188 | 83,582 | |
Reliance Steel & Aluminum Co. | 108,710 | 9,802,381 | |
26,940,266 | |||
Paper & Forest Products - 0.6% | |||
Domtar Corp. | 55,960 | 2,504,770 | |
Louisiana-Pacific Corp. | 646,616 | 18,428,556 | |
20,933,326 | |||
TOTAL MATERIALS | 123,178,753 | ||
REAL ESTATE - 2.4% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
Apple Hospitality (REIT), Inc. | 86,395 | 1,467,851 | |
Brixmor Property Group, Inc. | 453,551 | 7,048,183 | |
Corrections Corp. of America | 410,043 | 8,524,794 | |
Gaming & Leisure Properties | 258,761 | 8,606,391 | |
General Growth Properties, Inc. | 13,041 | 276,078 | |
Park Hotels & Resorts, Inc. | 614,356 | 15,967,112 | |
PS Business Parks, Inc. | 4,022 | 445,879 | |
Quality Care Properties, Inc. (b) | 180,220 | 2,232,926 | |
RLJ Lodging Trust | 173,825 | 3,443,473 | |
Senior Housing Properties Trust (SBI) | 82,393 | 1,247,430 | |
Sunstone Hotel Investors, Inc. | 226,671 | 3,270,863 | |
VEREIT, Inc. | 76,134 | 521,518 | |
Weyerhaeuser Co. | 713,453 | 24,992,259 | |
78,044,757 | |||
Real Estate Management & Development - 0.2% | |||
Realogy Holdings Corp. (a) | 226,935 | 5,798,189 | |
TOTAL REAL ESTATE | 83,842,946 | ||
TELECOMMUNICATION SERVICES - 2.6% | |||
Diversified Telecommunication Services - 2.6% | |||
AT&T, Inc. | 2,174,471 | 78,933,297 | |
Verizon Communications, Inc. | 202,487 | 9,666,729 | |
88,600,026 | |||
UTILITIES - 4.3% | |||
Electric Utilities - 3.1% | |||
Duke Energy Corp. | 238,576 | 17,974,316 | |
Exelon Corp. | 734,408 | 27,202,472 | |
FirstEnergy Corp. (a) | 472,423 | 15,273,436 | |
NextEra Energy, Inc. | 8,048 | 1,224,503 | |
PG&E Corp. | 570,843 | 23,455,939 | |
PNM Resources, Inc. | 32,126 | 1,130,835 | |
Portland General Electric Co. | 61,907 | 2,459,565 | |
PPL Corp. | 585,283 | 16,768,358 | |
Southern Co. | 87,418 | 3,764,219 | |
109,253,643 | |||
Gas Utilities - 0.6% | |||
National Fuel Gas Co. (a) | 36,212 | 1,789,959 | |
UGI Corp. | 441,647 | 19,030,569 | |
20,820,528 | |||
Independent Power and Renewable Electricity Producers - 0.2% | |||
The AES Corp. | 476,850 | 5,183,360 | |
Multi-Utilities - 0.4% | |||
CenterPoint Energy, Inc. | 391,629 | 10,593,564 | |
MDU Resources Group, Inc. | 119,148 | 3,132,401 | |
13,725,965 | |||
TOTAL UTILITIES | 148,983,496 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,999,220,389) | 3,437,040,655 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.2% | |||
U.S. Treasury Bills, yield at date of purchase 1.18% 6/21/18 (c) | |||
(Cost $5,778,888) | 5,800,000 | 5,770,317 | |
Shares | Value | ||
Money Market Funds - 4.1% | |||
Fidelity Cash Central Fund, 1.41% (d) | 29,564,968 | $29,570,881 | |
Fidelity Securities Lending Cash Central Fund 1.42% (d)(e) | 113,855,720 | 113,867,105 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $143,438,005) | 143,437,986 | ||
TOTAL INVESTMENT IN SECURITIES - 103.1% | |||
(Cost $3,148,437,282) | 3,586,248,958 | ||
NET OTHER ASSETS (LIABILITIES) - (3.1)% | (107,294,216) | ||
NET ASSETS - 100% | $3,478,954,742 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P 500 Index Contracts (United States) | 306 | March 2018 | $41,530,320 | $947,166 | $947,166 |
The notional amount of futures purchased as a percentage of Net Assets is 1.2%
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $1,910,174.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $217,370 |
Fidelity Securities Lending Cash Central Fund | 14,966 |
Total | $232,336 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of February 28, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $266,595,702 | $266,595,702 | $-- | $-- |
Consumer Staples | 316,159,286 | 316,159,286 | -- | -- |
Energy | 309,589,309 | 309,589,309 | -- | -- |
Financials | 891,938,662 | 891,938,662 | -- | -- |
Health Care | 534,803,846 | 534,803,846 | -- | -- |
Industrials | 289,296,927 | 289,296,927 | -- | -- |
Information Technology | 384,051,702 | 384,051,702 | -- | -- |
Materials | 123,178,753 | 123,178,753 | -- | -- |
Real Estate | 83,842,946 | 83,842,946 | -- | -- |
Telecommunication Services | 88,600,026 | 88,600,026 | -- | -- |
Utilities | 148,983,496 | 148,983,496 | -- | -- |
U.S. Government and Government Agency Obligations | 5,770,317 | -- | 5,770,317 | -- |
Money Market Funds | 143,437,986 | 143,437,986 | -- | -- |
Total Investments in Securities: | $3,586,248,958 | $3,580,478,641 | $5,770,317 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $947,166 | $947,166 | $-- | $-- |
Total Assets | $947,166 | $947,166 | $-- | $-- |
Total Derivative Instruments: | $947,166 | $947,166 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $947,166 | $0 |
Total Equity Risk | 947,166 | 0 |
Total Value of Derivatives | $947,166 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Large Cap Value Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
February 28, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $111,181,120) — See accompanying schedule: Unaffiliated issuers (cost $3,004,999,277) | $3,442,810,972 | |
Fidelity Central Funds (cost $143,438,005) | 143,437,986 | |
Total Investment in Securities (cost $3,148,437,282) | $3,586,248,958 | |
Receivable for investments sold | 32,769,751 | |
Receivable for fund shares sold | 3,828,239 | |
Dividends receivable | 9,510,462 | |
Distributions receivable from Fidelity Central Funds | 39,374 | |
Receivable for daily variation margin for on futures contracts | 3,178 | |
Total assets | 3,632,399,962 | |
Liabilities | ||
Payable for investments purchased | $35,346,206 | |
Payable for fund shares redeemed | 2,459,742 | |
Accrued management fee | 1,126,657 | |
Payable for daily variation margin on futures contracts | 493,451 | |
Other payables and accrued expenses | 147,213 | |
Collateral on securities loaned | 113,871,951 | |
Total liabilities | 153,445,220 | |
Net Assets | $3,478,954,742 | |
Net Assets consist of: | ||
Paid in capital | $2,967,369,553 | |
Undistributed net investment income | 12,829,548 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 59,996,799 | |
Net unrealized appreciation (depreciation) on investments | 438,758,842 | |
Net Assets, for 264,917,230 shares outstanding | $3,478,954,742 | |
Net Asset Value, offering price and redemption price per share ($3,478,954,742 ÷ 264,917,230 shares) | $13.13 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended February 28, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $41,491,904 | |
Interest | 34,007 | |
Income from Fidelity Central Funds (including $14,966 from security lending) | 232,336 | |
Total income | 41,758,247 | |
Expenses | ||
Management fee | $6,489,772 | |
Independent trustees' fees and expenses | 33,667 | |
Miscellaneous | 160,849 | |
Total expenses before reductions | 6,684,288 | |
Expense reductions | (1,270) | 6,683,018 |
Net investment income (loss) | 35,075,229 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 106,360,643 | |
Fidelity Central Funds | (2,831) | |
Foreign currency transactions | 105,583 | |
Futures contracts | 3,142,838 | |
Total net realized gain (loss) | 109,606,233 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 150,081,020 | |
Fidelity Central Funds | (3,228) | |
Assets and liabilities in foreign currencies | (348) | |
Futures contracts | 304,152 | |
Total change in net unrealized appreciation (depreciation) | 150,381,596 | |
Net gain (loss) | 259,987,829 | |
Net increase (decrease) in net assets resulting from operations | $295,063,058 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended February 28, 2018 (Unaudited) | Six months ended August 31, 2017 | Year ended February 28, 2017 | |
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $35,075,229 | $33,327,028 | $45,932,334 |
Net realized gain (loss) | 109,606,233 | 52,871,856 | 45,434,277 |
Change in net unrealized appreciation (depreciation) | 150,381,596 | (65,046,421) | 416,077,031 |
Net increase (decrease) in net assets resulting from operations | 295,063,058 | 21,152,463 | 507,443,642 |
Distributions to shareholders from net investment income | (54,064,321) | (9,524,832) | (38,789,221) |
Distributions to shareholders from net realized gain | (84,958,215) | (20,240,257) | – |
Total distributions | (139,022,536) | (29,765,089) | (38,789,221) |
Share transactions | |||
Proceeds from sales of shares | 514,513,607 | 585,123,239 | 1,358,650,321 |
Reinvestment of distributions | 135,660,919 | 28,992,659 | 37,834,856 |
Cost of shares redeemed | (390,101,260) | (431,889,605) | (544,200,825) |
Net increase (decrease) in net assets resulting from share transactions | 260,073,266 | 182,226,293 | 852,284,352 |
Total increase (decrease) in net assets | 416,113,788 | 173,613,667 | 1,320,938,773 |
Net Assets | |||
Beginning of period | 3,062,840,954 | 2,889,227,287 | 1,568,288,514 |
End of period | $3,478,954,742 | $3,062,840,954 | $2,889,227,287 |
Other Information | |||
Undistributed net investment income end of period | $12,829,548 | $31,818,640 | $9,477,261 |
Shares | |||
Sold | 38,933,486 | 47,098,344 | 117,663,726 |
Issued in reinvestment of distributions | 10,395,472 | 2,384,267 | 3,143,198 |
Redeemed | (29,534,967) | (34,998,563) | (47,915,162) |
Net increase (decrease) | 19,793,991 | 14,484,048 | 72,891,762 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Large Cap Value Enhanced Index Fund
Six months ended (Unaudited) February 28, | Years endedAugust 31, | ||||||
2018 | 2017 A | 2017B | 2016 C | 2015B | 2014B | 2013B | |
Selected Per–Share Data | |||||||
Net asset value, beginning of period | $12.50 | $12.53 | $9.94 | $11.38 | $10.21 | $8.89 | $7.78 |
Income from Investment Operations | |||||||
Net investment income (loss)D | .14 | .14 | .25 | .24 | .26E | .20 | .18 |
Net realized and unrealized gain (loss) | 1.05 | (.04) | 2.55 | (1.32) | 1.28 | 1.87 | 1.21 |
Total from investment operations | 1.19 | .10 | 2.80 | (1.08) | 1.54 | 2.07 | 1.39 |
Distributions from net investment income | (.22) | (.04) | (.21) | (.21) | (.12) | (.16) | (.15) |
Distributions from net realized gain | (.34) | (.09) | – | (.15) | (.24) | (.59) | (.13) |
Total distributions | (.56) | (.13) | (.21) | (.36) | (.37)F | (.75) | (.28) |
Net asset value, end of period | $13.13 | $12.50 | $12.53 | $9.94 | $11.38 | $10.21 | $8.89 |
Total ReturnG,H | 9.53% | .79% | 28.30% | (9.69)% | 15.37% | 23.92% | 18.38% |
Ratios to Average Net AssetsI,J | |||||||
Expenses before reductions | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Net investment income (loss) | 2.10%K | 2.27%K | 2.23% | 2.20% | 2.34%E | 2.01% | 2.27% |
Supplemental Data | |||||||
Net assets, end of period (000 omitted) | $3,478,955 | $3,062,841 | $2,889,227 | $1,568,289 | $1,105,349 | $180,081 | $106,740 |
Portfolio turnover rateL | 90%K | 93%K | 81% | 88% | 76%M | 85% | 76% |
A For the six month period ended August 31. The Fund changed its fiscal year end from February 28 to August 31, effective August 31, 2017.
B For the year ended February 28.
C For the year ended February 29.
D Calculated based on average shares outstanding during the period.
E Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.00%.
F Total distributions of $.37 per share is comprised of distributions from net investment income of $.124 and distributions from net realized gain of $.243 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Large Cap Core Enhanced Index Fund
Investment Summary (Unaudited)
Top Ten Stocks as of February 28, 2018
% of fund's net assets | |
Apple, Inc. | 4.3 |
Microsoft Corp. | 3.5 |
Amazon.com, Inc. | 3.0 |
Facebook, Inc. Class A | 2.2 |
JPMorgan Chase & Co. | 2.2 |
Berkshire Hathaway, Inc. Class B | 2.2 |
Johnson & Johnson | 2.0 |
Exxon Mobil Corp. | 1.8 |
Bank of America Corp. | 1.8 |
Intel Corp. | 1.5 |
24.5 |
Top Market Sectors as of February 28, 2018
% of fund's net assets | |
Information Technology | 26.5 |
Health Care | 15.0 |
Financials | 14.0 |
Consumer Discretionary | 12.8 |
Industrials | 9.4 |
Consumer Staples | 7.1 |
Energy | 5.3 |
Materials | 2.8 |
Telecommunication Services | 2.6 |
Real Estate | 1.3 |
Asset Allocation (% of fund's net assets)
As of February 28, 2018 * | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 3.2%
Fidelity® Large Cap Core Enhanced Index Fund
Schedule of Investments February 28, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.8% | |||
Auto Components - 0.4% | |||
BorgWarner, Inc. | 2,382 | $116,909 | |
Lear Corp. | 10,677 | 1,992,008 | |
Tenneco, Inc. | 7,954 | 417,983 | |
2,526,900 | |||
Automobiles - 0.6% | |||
Ford Motor Co. | 406,651 | 4,314,567 | |
Diversified Consumer Services - 0.5% | |||
H&R Block, Inc. | 120,145 | 3,043,273 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Carnival Corp. | 28,417 | 1,901,381 | |
Las Vegas Sands Corp. | 11,760 | 856,246 | |
McDonald's Corp. | 2,452 | 386,778 | |
Royal Caribbean Cruises Ltd. | 30,541 | 3,866,491 | |
U.S. Foods Holding Corp. (a) | 20,887 | 697,417 | |
7,708,313 | |||
Household Durables - 1.4% | |||
NVR, Inc. (a) | 118 | 335,494 | |
PulteGroup, Inc. | 108,103 | 3,034,451 | |
Taylor Morrison Home Corp. (a) | 127,377 | 2,858,340 | |
Toll Brothers, Inc. | 65,746 | 2,881,647 | |
9,109,932 | |||
Internet & Direct Marketing Retail - 3.1% | |||
Amazon.com, Inc. (a) | 12,825 | 19,397,171 | |
Netflix, Inc. (a) | 1,913 | 557,410 | |
19,954,581 | |||
Leisure Products - 0.1% | |||
Polaris Industries, Inc. (b) | 4,447 | 506,914 | |
Media - 2.1% | |||
Comcast Corp. Class A | 48,294 | 1,748,726 | |
Tegna, Inc. | 207,451 | 2,667,820 | |
The Walt Disney Co. | 71,454 | 7,371,195 | |
Time Warner, Inc. | 14,256 | 1,325,238 | |
Twenty-First Century Fox, Inc. Class A | 10,932 | 402,516 | |
13,515,495 | |||
Multiline Retail - 1.4% | |||
Kohl's Corp. | 28,442 | 1,879,732 | |
Macy's, Inc. (b) | 108,858 | 3,201,514 | |
Target Corp. | 52,303 | 3,944,169 | |
9,025,415 | |||
Specialty Retail - 1.5% | |||
Home Depot, Inc. | 49,037 | 8,937,974 | |
Lowe's Companies, Inc. | 12,287 | 1,100,792 | |
10,038,766 | |||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Deckers Outdoor Corp. (a) | 1,707 | 161,448 | |
Michael Kors Holdings Ltd. (a) | 48,559 | 3,055,818 | |
3,217,266 | |||
TOTAL CONSUMER DISCRETIONARY | 82,961,422 | ||
CONSUMER STAPLES - 7.1% | |||
Beverages - 2.4% | |||
Molson Coors Brewing Co. Class B | 3,112 | 237,290 | |
PepsiCo, Inc. | 68,276 | 7,491,925 | |
The Coca-Cola Co. | 178,918 | 7,732,836 | |
15,462,051 | |||
Food & Staples Retailing - 1.4% | |||
Kroger Co. | 76,250 | 2,067,900 | |
Walmart, Inc. | 75,023 | 6,752,820 | |
8,820,720 | |||
Food Products - 1.2% | |||
Archer Daniels Midland Co. | 47,173 | 1,958,623 | |
ConAgra Foods, Inc. | 80,190 | 2,897,265 | |
Sanderson Farms, Inc. (b) | 7,034 | 866,237 | |
The Hershey Co. | 3,302 | 324,455 | |
The J.M. Smucker Co. | 3,240 | 409,212 | |
Tyson Foods, Inc. Class A | 21,318 | 1,585,633 | |
8,041,425 | |||
Household Products - 1.5% | |||
Colgate-Palmolive Co. | 15,546 | 1,072,208 | |
Procter & Gamble Co. | 109,654 | 8,610,032 | |
9,682,240 | |||
Personal Products - 0.4% | |||
Estee Lauder Companies, Inc. Class A | 19,954 | 2,762,432 | |
Tobacco - 0.2% | |||
Altria Group, Inc. | 2,860 | 180,037 | |
Philip Morris International, Inc. | 12,092 | 1,252,127 | |
1,432,164 | |||
TOTAL CONSUMER STAPLES | 46,201,032 | ||
ENERGY - 5.3% | |||
Energy Equipment & Services - 0.1% | |||
Halliburton Co. | 6,513 | 302,333 | |
Oil, Gas & Consumable Fuels - 5.2% | |||
Chevron Corp. | 78,633 | 8,800,605 | |
ConocoPhillips Co. | 92,169 | 5,005,698 | |
Exxon Mobil Corp. | 157,804 | 11,952,075 | |
Marathon Petroleum Corp. | 57,450 | 3,680,247 | |
Valero Energy Corp. | 48,890 | 4,420,634 | |
33,859,259 | |||
TOTAL ENERGY | 34,161,592 | ||
FINANCIALS - 14.0% | |||
Banks - 6.7% | |||
Bank of America Corp. | 365,042 | 11,717,848 | |
Citigroup, Inc. | 115,305 | 8,704,374 | |
JPMorgan Chase & Co. | 123,945 | 14,315,648 | |
Regions Financial Corp. | 12,811 | 248,662 | |
Wells Fargo & Co. | 140,082 | 8,182,190 | |
43,168,722 | |||
Capital Markets - 1.4% | |||
Artisan Partners Asset Management, Inc. | 5,765 | 194,569 | |
BGC Partners, Inc. Class A | 35,836 | 473,752 | |
CME Group, Inc. | 30,601 | 5,084,662 | |
Federated Investors, Inc. Class B (non-vtg.) (b) | 3,270 | 106,537 | |
Morgan Stanley | 5,117 | 286,654 | |
Thomson Reuters Corp. | 72,024 | 2,837,853 | |
8,984,027 | |||
Consumer Finance - 0.9% | |||
American Express Co. | 38,723 | 3,775,880 | |
Discover Financial Services | 28,109 | 2,215,832 | |
5,991,712 | |||
Diversified Financial Services - 2.7% | |||
Berkshire Hathaway, Inc. Class B (a) | 68,269 | 14,145,337 | |
Leucadia National Corp. | 133,528 | 3,203,337 | |
17,348,674 | |||
Insurance - 1.7% | |||
AFLAC, Inc. | 34,020 | 3,023,698 | |
Erie Indemnity Co. Class A | 293 | 33,891 | |
First American Financial Corp. | 19,609 | 1,137,910 | |
FNF Group | 81,630 | 3,259,486 | |
Loews Corp. | 42,211 | 2,082,269 | |
Old Republic International Corp. | 18,167 | 363,885 | |
Progressive Corp. | 15,791 | 909,246 | |
10,810,385 | |||
Mortgage Real Estate Investment Trusts - 0.6% | |||
Annaly Capital Management, Inc. | 309,558 | 3,104,867 | |
MFA Financial, Inc. | 18,621 | 132,582 | |
Two Harbors Investment Corp. | 65,302 | 959,286 | |
4,196,735 | |||
TOTAL FINANCIALS | 90,500,255 | ||
HEALTH CARE - 15.0% | |||
Biotechnology - 3.8% | |||
AbbVie, Inc. | 72,829 | 8,435,783 | |
Amgen, Inc. | 37,640 | 6,917,103 | |
Biogen, Inc. (a) | 4,926 | 1,423,565 | |
Celgene Corp. (a) | 18,241 | 1,589,156 | |
Gilead Sciences, Inc. | 77,067 | 6,067,485 | |
United Therapeutics Corp. (a) | 645 | 74,723 | |
24,507,815 | |||
Health Care Equipment & Supplies - 1.0% | |||
Baxter International, Inc. | 62,071 | 4,207,793 | |
Medtronic PLC | 26,771 | 2,138,735 | |
6,346,528 | |||
Health Care Providers & Services - 4.2% | |||
Aetna, Inc. | 5,263 | 931,867 | |
Centene Corp. (a) | 36,142 | 3,665,522 | |
Express Scripts Holding Co. (a) | 59,692 | 4,503,761 | |
Humana, Inc. | 15,791 | 4,292,310 | |
Molina Healthcare, Inc. (a)(b) | 6,732 | 486,724 | |
Patterson Companies, Inc. (b) | 7,996 | 252,514 | |
Quest Diagnostics, Inc. | 34,766 | 3,582,636 | |
UnitedHealth Group, Inc. | 41,002 | 9,273,012 | |
Wellcare Health Plans, Inc. (a) | 1,240 | 240,448 | |
27,228,794 | |||
Pharmaceuticals - 6.0% | |||
Allergan PLC | 5,208 | 803,178 | |
Bristol-Myers Squibb Co. | 92,104 | 6,097,285 | |
Eli Lilly & Co. | 67,189 | 5,174,897 | |
Johnson & Johnson | 98,167 | 12,749,930 | |
Merck & Co., Inc. | 133,839 | 7,256,751 | |
Pfizer, Inc. | 187,844 | 6,820,616 | |
38,902,657 | |||
TOTAL HEALTH CARE | 96,985,794 | ||
INDUSTRIALS - 9.4% | |||
Aerospace & Defense - 3.2% | |||
Lockheed Martin Corp. | 16,499 | 5,814,908 | |
Northrop Grumman Corp. | 2,242 | 784,790 | |
Raytheon Co. | 23,925 | 5,203,927 | |
The Boeing Co. | 25,054 | 9,074,809 | |
20,878,434 | |||
Airlines - 0.1% | |||
Alaska Air Group, Inc. | 6,926 | 446,727 | |
Building Products - 0.3% | |||
Owens Corning | 25,419 | 2,066,565 | |
Commercial Services & Supplies - 1.7% | |||
KAR Auction Services, Inc. | 58,029 | 3,138,208 | |
Republic Services, Inc. | 54,631 | 3,670,111 | |
Waste Management, Inc. | 48,490 | 4,185,657 | |
10,993,976 | |||
Construction & Engineering - 0.0% | |||
EMCOR Group, Inc. | 1,482 | 113,091 | |
Electrical Equipment - 0.0% | |||
Regal Beloit Corp. | 2,312 | 167,158 | |
Industrial Conglomerates - 0.7% | |||
3M Co. | 16,890 | 3,977,764 | |
General Electric Co. | 15,873 | 223,968 | |
Honeywell International, Inc. | 2,084 | 314,913 | |
4,516,645 | |||
Machinery - 2.3% | |||
AGCO Corp. | 11,164 | 743,522 | |
Allison Transmission Holdings, Inc. | 75,451 | 2,990,123 | |
Caterpillar, Inc. | 37,274 | 5,763,679 | |
Cummins, Inc. | 23,532 | 3,957,376 | |
Hillenbrand, Inc. | 3,340 | 146,626 | |
Ingersoll-Rand PLC | 14,226 | 1,263,269 | |
14,864,595 | |||
Professional Services - 0.3% | |||
Robert Half International, Inc. | 37,871 | 2,161,298 | |
Road & Rail - 0.8% | |||
Union Pacific Corp. | 37,770 | 4,919,543 | |
TOTAL INDUSTRIALS | 61,128,032 | ||
INFORMATION TECHNOLOGY - 26.5% | |||
Communications Equipment - 2.4% | |||
Cisco Systems, Inc. | 214,273 | 9,595,145 | |
Juniper Networks, Inc. | 134,241 | 3,444,624 | |
Motorola Solutions, Inc. | 23,925 | 2,539,639 | |
15,579,408 | |||
Internet Software & Services - 4.8% | |||
Alphabet, Inc.: | |||
Class A (a) | 8,153 | 9,000,260 | |
Class C (a) | 6,816 | 7,529,840 | |
Facebook, Inc. Class A (a) | 80,746 | 14,398,627 | |
30,928,727 | |||
IT Services - 3.2% | |||
Broadridge Financial Solutions, Inc. | 22,365 | 2,244,999 | |
DXC Technology Co. | 6,804 | 697,682 | |
Fidelity National Information Services, Inc. | 42,650 | 4,144,727 | |
IBM Corp. | 39,689 | 6,184,737 | |
MasterCard, Inc. Class A | 5,507 | 967,910 | |
The Western Union Co. | 156,663 | 3,105,061 | |
Total System Services, Inc. | 8,516 | 748,982 | |
Visa, Inc. Class A | 21,360 | 2,625,998 | |
20,720,096 | |||
Semiconductors & Semiconductor Equipment - 5.3% | |||
Applied Materials, Inc. | 89,470 | 5,152,577 | |
Intel Corp. | 199,332 | 9,825,074 | |
KLA-Tencor Corp. | 34,404 | 3,898,317 | |
Maxim Integrated Products, Inc. | 45,461 | 2,770,393 | |
Micron Technology, Inc. (a) | 41,870 | 2,043,675 | |
NVIDIA Corp. | 2,569 | 621,698 | |
Qualcomm, Inc. | 30,238 | 1,965,470 | |
Teradyne, Inc. | 40,321 | 1,830,573 | |
Texas Instruments, Inc. | 57,080 | 6,184,618 | |
34,292,395 | |||
Software - 4.6% | |||
Adobe Systems, Inc. (a) | 8,283 | 1,732,224 | |
CA Technologies, Inc. | 3,578 | 125,588 | |
Intuit, Inc. | 10,914 | 1,821,110 | |
Microsoft Corp. | 240,735 | 22,573,721 | |
Oracle Corp. | 73,882 | 3,743,601 | |
29,996,244 | |||
Technology Hardware, Storage & Peripherals - 6.2% | |||
Apple, Inc. | 156,481 | 27,872,387 | |
HP, Inc. | 194,228 | 4,542,993 | |
NetApp, Inc. | 31,794 | 1,925,127 | |
Seagate Technology LLC (b) | 37,470 | 2,000,898 | |
Western Digital Corp. | 47,700 | 4,151,808 | |
40,493,213 | |||
TOTAL INFORMATION TECHNOLOGY | 172,010,083 | ||
MATERIALS - 2.8% | |||
Chemicals - 1.4% | |||
DowDuPont, Inc. | 18,327 | 1,288,388 | |
Huntsman Corp. | 39,595 | 1,277,731 | |
LyondellBasell Industries NV Class A | 31,289 | 3,386,096 | |
Monsanto Co. | 6,560 | 809,307 | |
Westlake Chemical Corp. | 19,885 | 2,152,750 | |
8,914,272 | |||
Metals & Mining - 0.7% | |||
Freeport-McMoRan, Inc. (a) | 96,681 | 1,798,267 | |
Newmont Mining Corp. | 76,313 | 2,915,157 | |
4,713,424 | |||
Paper & Forest Products - 0.7% | |||
Domtar Corp. | 22,062 | 987,495 | |
Louisiana-Pacific Corp. | 115,365 | 3,287,903 | |
4,275,398 | |||
TOTAL MATERIALS | 17,903,094 | ||
REAL ESTATE - 1.3% | |||
Equity Real Estate Investment Trusts (REITs) - 1.3% | |||
Apple Hospitality (REIT), Inc. | 95,909 | 1,629,494 | |
Gaming & Leisure Properties | 59,362 | 1,974,380 | |
Park Hotels & Resorts, Inc. | 32,790 | 852,212 | |
Senior Housing Properties Trust (SBI) | 8,229 | 124,587 | |
Weyerhaeuser Co. | 112,963 | 3,957,094 | |
8,537,767 | |||
TELECOMMUNICATION SERVICES - 2.6% | |||
Diversified Telecommunication Services - 2.6% | |||
AT&T, Inc. | 256,894 | 9,325,252 | |
Verizon Communications, Inc. | 155,922 | 7,443,716 | |
16,768,968 | |||
UTILITIES - 1.3% | |||
Electric Utilities - 1.1% | |||
Exelon Corp. | 4,514 | 167,199 | |
FirstEnergy Corp. | 116,187 | 3,756,326 | |
PG&E Corp. | 31,260 | 1,284,473 | |
PPL Corp. | 68,118 | 1,951,581 | |
7,159,579 | |||
Gas Utilities - 0.1% | |||
UGI Corp. | 14,395 | 620,281 | |
Multi-Utilities - 0.1% | |||
CenterPoint Energy, Inc. | 12,946 | 350,189 | |
TOTAL UTILITIES | 8,130,049 | ||
TOTAL COMMON STOCKS | |||
(Cost $489,429,247) | 635,288,088 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 1.18% 6/21/18 (c) | |||
(Cost $846,906) | 850,000 | 845,650 | |
Shares | Value | ||
Money Market Funds - 2.8% | |||
Fidelity Cash Central Fund, 1.41% (d) | 11,144,096 | $11,146,325 | |
Fidelity Securities Lending Cash Central Fund 1.42% (d)(e) | 6,886,363 | 6,887,052 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $18,033,377) | 18,033,377 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $508,309,530) | 654,167,115 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (6,255,302) | ||
NET ASSETS - 100% | $647,911,813 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P 500 Index Contracts (United States) | 91 | March 2018 | $12,350,520 | $129,857 | $129,857 |
The notional amount of futures purchased as a percentage of Net Assets is 1.9%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $573,052.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $74,777 |
Fidelity Securities Lending Cash Central Fund | 2,101 |
Total | $76,878 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of February 28, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $82,961,422 | $82,961,422 | $-- | $-- |
Consumer Staples | 46,201,032 | 46,201,032 | -- | -- |
Energy | 34,161,592 | 34,161,592 | -- | -- |
Financials | 90,500,255 | 90,500,255 | -- | -- |
Health Care | 96,985,794 | 96,985,794 | -- | -- |
Industrials | 61,128,032 | 61,128,032 | -- | -- |
Information Technology | 172,010,083 | 172,010,083 | -- | -- |
Materials | 17,903,094 | 17,903,094 | -- | -- |
Real Estate | 8,537,767 | 8,537,767 | -- | -- |
Telecommunication Services | 16,768,968 | 16,768,968 | -- | -- |
Utilities | 8,130,049 | 8,130,049 | -- | -- |
U.S. Government and Government Agency Obligations | 845,650 | -- | 845,650 | -- |
Money Market Funds | 18,033,377 | 18,033,377 | -- | -- |
Total Investments in Securities: | $654,167,115 | $653,321,465 | $845,650 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $129,857 | $129,857 | $-- | $-- |
Total Assets | $129,857 | $129,857 | $-- | $-- |
Total Derivative Instruments: | $129,857 | $129,857 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $129,857 | $0 |
Total Equity Risk | 129,857 | 0 |
Total Value of Derivatives | $129,857 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Large Cap Core Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
February 28, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,847,833) — See accompanying schedule: Unaffiliated issuers (cost $490,276,153) | $636,133,738 | |
Fidelity Central Funds (cost $18,033,377) | 18,033,377 | |
Total Investment in Securities (cost $508,309,530) | $654,167,115 | |
Receivable for investments sold | 6,429,516 | |
Receivable for fund shares sold | 1,394,270 | |
Dividends receivable | 1,450,112 | |
Distributions receivable from Fidelity Central Funds | 11,864 | |
Total assets | 663,452,877 | |
Liabilities | ||
Payable for investments purchased | $7,592,020 | |
Payable for fund shares redeemed | 679,831 | |
Accrued management fee | 208,326 | |
Payable for daily variation margin on futures contracts | 148,655 | |
Other payables and accrued expenses | 24,382 | |
Collateral on securities loaned | 6,887,850 | |
Total liabilities | 15,541,064 | |
Net Assets | $647,911,813 | |
Net Assets consist of: | ||
Paid in capital | $479,663,580 | |
Undistributed net investment income | 1,962,773 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 20,298,018 | |
Net unrealized appreciation (depreciation) on investments | 145,987,442 | |
Net Assets, for 43,176,573 shares outstanding | $647,911,813 | |
Net Asset Value, offering price and redemption price per share ($647,911,813 ÷ 43,176,573 shares) | $15.01 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended February 28, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $6,178,167 | |
Interest | 5,056 | |
Income from Fidelity Central Funds (including $2,101 from security lending) | 76,878 | |
Total income | 6,260,101 | |
Expenses | ||
Management fee | $1,150,803 | |
Independent trustees' fees and expenses | 5,917 | |
Miscellaneous | 27,183 | |
Total expenses before reductions | 1,183,903 | |
Expense reductions | (487) | 1,183,416 |
Net investment income (loss) | 5,076,685 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 29,322,296 | |
Fidelity Central Funds | (533) | |
Foreign currency transactions | 638 | |
Futures contracts | 1,484,502 | |
Total net realized gain (loss) | 30,806,903 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 34,661,782 | |
Fidelity Central Funds | (276) | |
Futures contracts | 25,248 | |
Total change in net unrealized appreciation (depreciation) | 34,686,754 | |
Net gain (loss) | 65,493,657 | |
Net increase (decrease) in net assets resulting from operations | $70,570,342 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended February 28, 2018 (Unaudited) | Six months ended August 31, 2017 | Year ended February 28, 2017 | |
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $5,076,685 | $4,942,098 | $8,807,566 |
Net realized gain (loss) | 30,806,903 | 9,752,955 | 8,291,786 |
Change in net unrealized appreciation (depreciation) | 34,686,754 | 7,700,638 | 81,900,675 |
Net increase (decrease) in net assets resulting from operations | 70,570,342 | 22,395,691 | 99,000,027 |
Distributions to shareholders from net investment income | (7,652,635) | (1,405,265) | (7,861,211) |
Distributions to shareholders from net realized gain | (13,164,116) | – | – |
Total distributions | (20,816,751) | (1,405,265) | (7,861,211) |
Share transactions | |||
Proceeds from sales of shares | 112,045,236 | 56,911,888 | 166,579,819 |
Reinvestment of distributions | 19,696,589 | 1,332,680 | 7,444,746 |
Cost of shares redeemed | (67,819,924) | (69,984,446) | (151,876,457) |
Net increase (decrease) in net assets resulting from share transactions | 63,921,901 | (11,739,878) | 22,148,108 |
Total increase (decrease) in net assets | 113,675,492 | 9,250,548 | 113,286,924 |
Net Assets | |||
Beginning of period | 534,236,321 | 524,985,773 | 411,698,849 |
End of period | $647,911,813 | $534,236,321 | $524,985,773 |
Other Information | |||
Undistributed net investment income end of period | $1,962,773 | $4,538,723 | $1,335,391 |
Shares | |||
Sold | 7,559,365 | 4,273,941 | 13,918,048 |
Issued in reinvestment of distributions | 1,357,449 | 102,121 | 591,010 |
Redeemed | (4,620,653) | (5,222,228) | (12,563,272) |
Net increase (decrease) | 4,296,161 | (846,166) | 1,945,786 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Large Cap Core Enhanced Index Fund
Six months ended (Unaudited) February 28, | Years endedAugust 31, | ||||||
2018 | 2017 A | 2017B | 2016 C | 2015B | 2014B | 2013B | |
Selected Per–Share Data | |||||||
Net asset value, beginning of period | $13.74 | $13.21 | $10.90 | $12.29 | $11.30 | $10.70 | $9.68 |
Income from Investment Operations | |||||||
Net investment income (loss)D | .13 | .12 | .22 | .22 | .20 | .19 | .21 |
Net realized and unrealized gain (loss) | 1.67 | .45 | 2.29 | (1.17) | 1.55 | 2.45 | 1.03 |
Total from investment operations | 1.80 | .57 | 2.51 | (.95) | 1.75 | 2.64 | 1.24 |
Distributions from net investment income | (.19) | (.04) | (.20) | (.19) | (.16) | (.27) | (.18) |
Distributions from net realized gain | (.33) | – | – | (.25) | (.60) | (1.77) | (.05) |
Total distributions | (.53)E | (.04) | (.20) | (.44) | (.76) | (2.04) | (.22)F |
Net asset value, end of period | $15.01 | $13.74 | $13.21 | $10.90 | $12.29 | $11.30 | $10.70 |
Total ReturnG,H | 13.20% | 4.29% | 23.09% | (7.94)% | 16.04% | 26.44% | 13.03% |
Ratios to Average Net AssetsI,J | |||||||
Expenses before reductions | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Expenses net of fee waivers, if any | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .40%K | .40%K | .45% | .45% | .45% | .45% | .45% |
Net investment income (loss) | 1.71%K | 1.85%K | 1.82% | 1.86% | 1.69% | 1.67% | 2.08% |
Supplemental Data | |||||||
Net assets, end of period (000 omitted) | $647,912 | $534,236 | $524,986 | $411,699 | $381,883 | $441,773 | $208,675 |
Portfolio turnover rateL | 90%K | 88%K | 82% | 84% | 101% | 125% | 85% |
A For the six month ended August 31. The Fund changed its fiscal year end from February 28 to August 31, effective August 31, 2017.
B For the year ended February 28.
C For the year ended February 29.
D Calculated based on average shares outstanding during the period.
E Total distributions of $.53 per share is comprised of distributions from net investment income of $.193 and distributions from net realized gain of $.332 per share.
F Total distributions of $.22 per share is comprised of distributions from net investment income of $.175 and distributions from net realized gain of $.049 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Mid Cap Enhanced Index Fund
Investment Summary (Unaudited)
Top Ten Stocks as of February 28, 2018
% of fund's net assets | |
Progressive Corp. | 1.0 |
Fidelity National Information Services, Inc. | 1.0 |
Discover Financial Services | 0.9 |
Marathon Petroleum Corp. | 0.9 |
Prologis, Inc. | 0.9 |
Western Digital Corp. | 0.9 |
Synchrony Financial | 0.9 |
Weyerhaeuser Co. | 0.9 |
Cummins, Inc. | 0.9 |
Freeport-McMoRan, Inc. | 0.9 |
9.2 |
Top Market Sectors as of February 28, 2018
% of fund's net assets | |
Information Technology | 18.6 |
Consumer Discretionary | 16.7 |
Financials | 14.2 |
Industrials | 12.9 |
Health Care | 9.8 |
Materials | 7.5 |
Real Estate | 6.6 |
Consumer Staples | 4.9 |
Utilities | 4.1 |
Energy | 3.8 |
Asset Allocation (% of fund's net assets)
As of February 28, 2018 * | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 5.3%
Fidelity® Mid Cap Enhanced Index Fund
Schedule of Investments February 28, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 16.7% | |||
Auto Components - 2.3% | |||
Aptiv PLC | 51,199 | $4,676,005 | |
BorgWarner, Inc. | 165,221 | 8,109,047 | |
Gentex Corp. | 342,349 | 7,774,746 | |
Lear Corp. | 48,271 | 9,005,920 | |
29,565,718 | |||
Automobiles - 0.4% | |||
Ford Motor Co. | 440,370 | 4,672,326 | |
Diversified Consumer Services - 0.6% | |||
Graham Holdings Co. | 568 | 329,497 | |
H&R Block, Inc. (a) | 286,446 | 7,255,677 | |
7,585,174 | |||
Hotels, Restaurants & Leisure - 2.8% | |||
Darden Restaurants, Inc. | 33,529 | 3,091,039 | |
Extended Stay America, Inc. unit | 7,585 | 151,928 | |
Las Vegas Sands Corp. | 71,144 | 5,179,995 | |
Royal Caribbean Cruises Ltd. | 83,453 | 10,565,150 | |
U.S. Foods Holding Corp. (b) | 242,715 | 8,104,254 | |
Vail Resorts, Inc. | 1,304 | 268,454 | |
Wynn Resorts Ltd. | 52,675 | 8,823,063 | |
36,183,883 | |||
Household Durables - 3.0% | |||
D.R. Horton, Inc. | 196,461 | 8,231,716 | |
Garmin Ltd. (a) | 45,133 | 2,673,679 | |
NVR, Inc. (b) | 2,679 | 7,616,852 | |
PulteGroup, Inc. | 258,646 | 7,260,193 | |
Toll Brothers, Inc. | 167,840 | 7,356,427 | |
Whirlpool Corp. | 29,332 | 4,764,397 | |
37,903,264 | |||
Internet & Direct Marketing Retail - 0.6% | |||
Liberty Interactive Corp. QVC Group: | |||
(Venture Group) Series A (b) | 2,769 | 148,197 | |
Series A (b) | 281,879 | 8,137,847 | |
8,286,044 | |||
Leisure Products - 1.0% | |||
Brunswick Corp. | 27,990 | 1,601,028 | |
Hasbro, Inc. | 73,671 | 7,040,737 | |
Polaris Industries, Inc. (a) | 35,204 | 4,012,904 | |
12,654,669 | |||
Media - 1.0% | |||
Liberty Broadband Corp. Class C (b) | 5,376 | 472,443 | |
Liberty Media Corp. Liberty SiriusXM Series A (b) | 16,607 | 696,664 | |
News Corp. Class A | 57,171 | 922,168 | |
Omnicom Group, Inc. (a) | 18,088 | 1,378,848 | |
Scripps Networks Interactive, Inc. Class A (a) | 994 | 89,321 | |
Tegna, Inc. | 515,745 | 6,632,481 | |
Viacom, Inc. Class B (non-vtg.) | 63,957 | 2,132,326 | |
12,324,251 | |||
Multiline Retail - 1.7% | |||
Dollar Tree, Inc. (b) | 2,779 | 285,237 | |
Kohl's Corp. | 116,905 | 7,726,251 | |
Macy's, Inc. (a) | 256,812 | 7,552,841 | |
Target Corp. | 76,517 | 5,770,147 | |
21,334,476 | |||
Specialty Retail - 2.0% | |||
Bed Bath & Beyond, Inc. | 169,486 | 3,633,780 | |
Best Buy Co., Inc. | 116,280 | 8,423,323 | |
Foot Locker, Inc. | 56,265 | 2,583,126 | |
GameStop Corp. Class A (a) | 314,094 | 4,928,135 | |
Gap, Inc. | 203,410 | 6,423,688 | |
Ross Stores, Inc. | 2,302 | 179,763 | |
26,171,815 | |||
Textiles, Apparel & Luxury Goods - 1.3% | |||
Carter's, Inc. | 48,894 | 5,704,952 | |
Michael Kors Holdings Ltd. (b) | 130,948 | 8,240,558 | |
Ralph Lauren Corp. | 15,197 | 1,608,450 | |
VF Corp. | 8,041 | 599,617 | |
16,153,577 | |||
TOTAL CONSUMER DISCRETIONARY | 212,835,197 | ||
CONSUMER STAPLES - 4.9% | |||
Beverages - 0.5% | |||
Dr. Pepper Snapple Group, Inc. | 13,862 | 1,611,458 | |
Molson Coors Brewing Co. Class B | 58,234 | 4,440,343 | |
6,051,801 | |||
Food Products - 3.9% | |||
Campbell Soup Co. (a) | 61,393 | 2,642,969 | |
ConAgra Foods, Inc. | 248,648 | 8,983,652 | |
Flowers Foods, Inc. | 39,888 | 827,277 | |
Ingredion, Inc. | 57,335 | 7,490,244 | |
Kellogg Co. (a) | 42,712 | 2,827,534 | |
Pilgrim's Pride Corp. (a)(b) | 11,276 | 284,155 | |
The Hershey Co. | 65,214 | 6,407,928 | |
The J.M. Smucker Co. | 64,074 | 8,092,546 | |
TreeHouse Foods, Inc. (a)(b) | 54,160 | 2,059,163 | |
Tyson Foods, Inc. Class A | 136,460 | 10,149,895 | |
49,765,363 | |||
Household Products - 0.1% | |||
Clorox Co. | 10,310 | 1,330,815 | |
Spectrum Brands Holdings, Inc. (a) | 1,891 | 186,661 | |
1,517,476 | |||
Personal Products - 0.4% | |||
Estee Lauder Companies, Inc. Class A | 32,908 | 4,555,784 | |
TOTAL CONSUMER STAPLES | 61,890,424 | ||
ENERGY - 3.8% | |||
Oil, Gas & Consumable Fuels - 3.8% | |||
Cabot Oil & Gas Corp. | 240,112 | 5,801,106 | |
CONSOL Energy, Inc. (b) | 5,224 | 165,549 | |
Continental Resources, Inc. (b) | 15,290 | 726,428 | |
Devon Energy Corp. | 223,015 | 6,839,870 | |
Marathon Oil Corp. | 570,664 | 8,286,041 | |
Marathon Petroleum Corp. | 183,160 | 11,733,230 | |
Murphy Oil Corp. (a) | 158,192 | 4,010,167 | |
Southwestern Energy Co. (b) | 105,235 | 375,689 | |
The Williams Companies, Inc. | 149,706 | 4,155,839 | |
Valero Energy Corp. | 74,647 | 6,749,582 | |
48,843,501 | |||
FINANCIALS - 14.2% | |||
Banks - 2.5% | |||
BankUnited, Inc. | 4,119 | 165,666 | |
Citizens Financial Group, Inc. | 42,763 | 1,859,763 | |
Comerica, Inc. | 76,365 | 7,424,205 | |
Fifth Third Bancorp | 256,159 | 8,466,055 | |
M&T Bank Corp. | 11,435 | 2,170,820 | |
Regions Financial Corp. | 562,142 | 10,911,176 | |
SunTrust Banks, Inc. | 6,442 | 449,909 | |
31,447,594 | |||
Capital Markets - 3.3% | |||
Affiliated Managers Group, Inc. | 3,487 | 660,298 | |
BGC Partners, Inc. Class A | 443,026 | 5,856,804 | |
CBOE Holdings, Inc. | 8,585 | 961,606 | |
FactSet Research Systems, Inc. (a) | 8,834 | 1,794,892 | |
Federated Investors, Inc. Class B (non-vtg.) (a) | 211,945 | 6,905,168 | |
Interactive Brokers Group, Inc. | 23,664 | 1,642,282 | |
Lazard Ltd. Class A | 48,207 | 2,601,732 | |
Morningstar, Inc. | 41,138 | 3,844,346 | |
MSCI, Inc. | 24,220 | 3,427,614 | |
Raymond James Financial, Inc. | 23,052 | 2,137,151 | |
S&P Global, Inc. | 445 | 85,351 | |
SEI Investments Co. | 20,470 | 1,490,830 | |
T. Rowe Price Group, Inc. | 88,394 | 9,891,289 | |
The NASDAQ OMX Group, Inc. | 9,320 | 752,590 | |
42,051,953 | |||
Consumer Finance - 1.8% | |||
Discover Financial Services | 153,259 | 12,081,407 | |
Synchrony Financial | 310,672 | 11,305,354 | |
23,386,761 | |||
Diversified Financial Services - 0.7% | |||
Donnelley Financial Solutions, Inc. (b) | 40,159 | 695,152 | |
Leucadia National Corp. | 314,984 | 7,556,466 | |
8,251,618 | |||
Insurance - 3.8% | |||
American International Group, Inc. warrants 1/19/21 (b) | 574 | 9,988 | |
CNA Financial Corp. | 4,957 | 253,104 | |
First American Financial Corp. | 131,884 | 7,653,229 | |
FNF Group | 215,923 | 8,621,805 | |
Loews Corp. | 149,317 | 7,365,808 | |
Old Republic International Corp. (a) | 362,472 | 7,260,314 | |
Progressive Corp. | 223,625 | 12,876,326 | |
Unum Group | 89,077 | 4,539,364 | |
48,579,938 | |||
Mortgage Real Estate Investment Trusts - 2.1% | |||
AGNC Investment Corp. | 219,038 | 3,929,542 | |
Annaly Capital Management, Inc. | 832,199 | 8,346,956 | |
Chimera Investment Corp. | 328,867 | 5,511,811 | |
MFA Financial, Inc. | 844,327 | 6,011,608 | |
New Residential Investment Corp. | 18,628 | 300,470 | |
Starwood Property Trust, Inc. | 9,359 | 189,520 | |
Two Harbors Investment Corp. | 198,943 | 2,922,473 | |
27,212,380 | |||
TOTAL FINANCIALS | 180,930,244 | ||
HEALTH CARE - 9.8% | |||
Biotechnology - 0.9% | |||
Alnylam Pharmaceuticals, Inc. (b) | 7,466 | 897,115 | |
Bioverativ, Inc. (b) | 6,546 | 685,235 | |
Neurocrine Biosciences, Inc. (b) | 4,041 | 341,182 | |
United Therapeutics Corp. (b) | 63,441 | 7,349,640 | |
Vertex Pharmaceuticals, Inc. (b) | 12,284 | 2,039,513 | |
11,312,685 | |||
Health Care Equipment & Supplies - 2.2% | |||
Baxter International, Inc. | 100,730 | 6,828,487 | |
Edwards Lifesciences Corp. (b) | 13,468 | 1,800,268 | |
Hill-Rom Holdings, Inc. | 25,799 | 2,158,344 | |
Masimo Corp. (b) | 43,912 | 3,843,617 | |
Steris PLC | 5,246 | 478,960 | |
The Cooper Companies, Inc. | 18,073 | 4,166,188 | |
Varian Medical Systems, Inc. (b) | 69,160 | 8,253,554 | |
27,529,418 | |||
Health Care Providers & Services - 5.0% | |||
Anthem, Inc. | 20,134 | 4,739,141 | |
Cardinal Health, Inc. | 138,469 | 9,583,439 | |
Centene Corp. (b) | 96,709 | 9,808,227 | |
Express Scripts Holding Co. (b) | 86,351 | 6,515,183 | |
Humana, Inc. | 25,480 | 6,925,974 | |
Laboratory Corp. of America Holdings (b) | 21,266 | 3,672,638 | |
Patterson Companies, Inc. (a) | 67,284 | 2,124,829 | |
Quest Diagnostics, Inc. | 91,701 | 9,449,788 | |
Universal Health Services, Inc. Class B | 28,767 | 3,285,191 | |
Wellcare Health Plans, Inc. (b) | 41,250 | 7,998,788 | |
64,103,198 | |||
Life Sciences Tools & Services - 1.7% | |||
Agilent Technologies, Inc. | 150,194 | 10,301,806 | |
Bio-Rad Laboratories, Inc. Class A (b) | 5,334 | 1,440,393 | |
Bruker Corp. | 196,162 | 6,012,365 | |
Charles River Laboratories International, Inc. (b) | 30,780 | 3,281,456 | |
QIAGEN NV (b) | 38,145 | 1,285,487 | |
22,321,507 | |||
Pharmaceuticals - 0.0% | |||
Zoetis, Inc. Class A | 2,945 | 238,133 | |
TOTAL HEALTH CARE | 125,504,941 | ||
INDUSTRIALS - 12.9% | |||
Aerospace & Defense - 1.4% | |||
Harris Corp. | 16,198 | 2,529,318 | |
Huntington Ingalls Industries, Inc. | 17,627 | 4,618,450 | |
L3 Technologies, Inc. | 13,689 | 2,841,152 | |
Orbital ATK, Inc. | 687 | 90,725 | |
Rockwell Collins, Inc. | 19,390 | 2,670,391 | |
Spirit AeroSystems Holdings, Inc. Class A | 53,867 | 4,917,518 | |
17,667,554 | |||
Airlines - 1.0% | |||
Alaska Air Group, Inc. | 76,612 | 4,941,474 | |
Copa Holdings SA Class A | 54,325 | 7,386,570 | |
12,328,044 | |||
Building Products - 0.6% | |||
Owens Corning | 96,367 | 7,834,637 | |
Commercial Services & Supplies - 1.7% | |||
Cintas Corp. | 732 | 124,923 | |
KAR Auction Services, Inc. | 153,783 | 8,316,585 | |
LSC Communications, Inc. | 99,452 | 1,448,021 | |
Pitney Bowes, Inc. | 209,414 | 2,596,734 | |
Republic Services, Inc. | 140,162 | 9,416,083 | |
Waste Management, Inc. | 1,922 | 165,907 | |
22,068,253 | |||
Electrical Equipment - 1.1% | |||
Acuity Brands, Inc. (a) | 37,398 | 5,332,207 | |
AMETEK, Inc. | 13,074 | 990,225 | |
Fortive Corp. | 1,929 | 148,147 | |
Regal Beloit Corp. | 59,254 | 4,284,064 | |
Rockwell Automation, Inc. | 20,795 | 3,759,736 | |
14,514,379 | |||
Machinery - 5.4% | |||
AGCO Corp. | 106,676 | 7,104,622 | |
Allison Transmission Holdings, Inc. | 186,712 | 7,399,397 | |
Crane Co. | 17,027 | 1,571,762 | |
Cummins, Inc. | 67,120 | 11,287,570 | |
Donaldson Co., Inc. | 51,403 | 2,439,586 | |
Graco, Inc. | 111,566 | 4,947,952 | |
IDEX Corp. | 200 | 27,360 | |
Ingersoll-Rand PLC | 117,744 | 10,455,667 | |
Oshkosh Corp. | 15,791 | 1,246,384 | |
PACCAR, Inc. | 152,779 | 10,937,449 | |
Parker Hannifin Corp. | 22,772 | 4,064,119 | |
Stanley Black & Decker, Inc. | 14,205 | 2,261,294 | |
Terex Corp. | 7,289 | 302,639 | |
Timken Co. | 24,434 | 1,070,209 | |
Toro Co. | 60,292 | 3,832,762 | |
68,948,772 | |||
Professional Services - 1.3% | |||
Manpower, Inc. | 64,839 | 7,680,828 | |
Nielsen Holdings PLC | 32,818 | 1,070,851 | |
Robert Half International, Inc. | 142,815 | 8,150,452 | |
16,902,131 | |||
Road & Rail - 0.2% | |||
Kansas City Southern | 24,432 | 2,517,473 | |
Trading Companies & Distributors - 0.2% | |||
HD Supply Holdings, Inc. (b) | 36,789 | 1,333,601 | |
MSC Industrial Direct Co., Inc. Class A | 7,475 | 653,913 | |
1,987,514 | |||
TOTAL INDUSTRIALS | 164,768,757 | ||
INFORMATION TECHNOLOGY - 18.6% | |||
Communications Equipment - 2.3% | |||
Arista Networks, Inc. (b) | 26,195 | 7,065,839 | |
Arris International PLC (b) | 130,222 | 3,320,661 | |
F5 Networks, Inc. (b) | 57,911 | 8,600,942 | |
Juniper Networks, Inc. | 312,724 | 8,024,498 | |
Motorola Solutions, Inc. | 27,116 | 2,878,363 | |
29,890,303 | |||
Electronic Equipment & Components - 1.2% | |||
CDW Corp. | 54,073 | 3,943,544 | |
Dolby Laboratories, Inc. Class A | 26,980 | 1,741,559 | |
Jabil, Inc. | 54,191 | 1,468,034 | |
National Instruments Corp. | 11,943 | 603,838 | |
Zebra Technologies Corp. Class A (b) | 57,162 | 7,896,359 | |
15,653,334 | |||
IT Services - 4.1% | |||
Alliance Data Systems Corp. | 34,890 | 8,407,094 | |
Amdocs Ltd. | 123,731 | 8,140,262 | |
Broadridge Financial Solutions, Inc. | 27,007 | 2,710,963 | |
CoreLogic, Inc. (b) | 11,646 | 529,893 | |
DXC Technology Co. | 29,836 | 3,059,383 | |
Fidelity National Information Services, Inc. | 127,080 | 12,349,634 | |
The Western Union Co. | 384,087 | 7,612,604 | |
Total System Services, Inc. | 106,171 | 9,337,739 | |
52,147,572 | |||
Semiconductors & Semiconductor Equipment - 5.7% | |||
Applied Materials, Inc. | 117,609 | 6,773,102 | |
Cypress Semiconductor Corp. | 152,253 | 2,659,860 | |
KLA-Tencor Corp. | 90,083 | 10,207,305 | |
Lam Research Corp. | 57,543 | 11,040,200 | |
Marvell Technology Group Ltd. | 360,921 | 8,478,034 | |
Maxim Integrated Products, Inc. | 163,039 | 9,935,597 | |
Micron Technology, Inc. (b) | 145,193 | 7,086,870 | |
ON Semiconductor Corp. (b) | 79,596 | 1,903,936 | |
Skyworks Solutions, Inc. | 74,880 | 8,180,640 | |
Teradyne, Inc. | 142,012 | 6,447,345 | |
Xilinx, Inc. | 3,673 | 261,701 | |
72,974,590 | |||
Software - 3.1% | |||
CA Technologies, Inc. | 244,957 | 8,597,991 | |
Cadence Design Systems, Inc. (b) | 202,226 | 7,840,302 | |
Citrix Systems, Inc. (b) | 45,158 | 4,154,536 | |
Intuit, Inc. | 39,895 | 6,656,880 | |
Red Hat, Inc. (b) | 33,498 | 4,937,605 | |
SS&C Technologies Holdings, Inc. | 4,764 | 235,913 | |
Synopsys, Inc. (b) | 78,633 | 6,657,856 | |
39,081,083 | |||
Technology Hardware, Storage & Peripherals - 2.2% | |||
HP, Inc. | 253,831 | 5,937,107 | |
NetApp, Inc. | 161,315 | 9,767,623 | |
Western Digital Corp. | 132,143 | 11,501,727 | |
Xerox Corp. | 36,305 | 1,100,768 | |
28,307,225 | |||
TOTAL INFORMATION TECHNOLOGY | 238,054,107 | ||
MATERIALS - 7.5% | |||
Chemicals - 2.4% | |||
Cabot Corp. | 65,170 | 3,921,931 | |
Eastman Chemical Co. | 93,508 | 9,451,789 | |
Huntsman Corp. | 236,051 | 7,617,366 | |
The Scotts Miracle-Gro Co. Class A (a) | 29,544 | 2,654,233 | |
Westlake Chemical Corp. | 67,786 | 7,338,512 | |
30,983,831 | |||
Containers & Packaging - 1.3% | |||
Avery Dennison Corp. | 11,275 | 1,332,141 | |
Berry Global Group, Inc. (b) | 73,699 | 4,009,226 | |
Packaging Corp. of America | 34,941 | 4,164,967 | |
WestRock Co. | 111,180 | 7,311,197 | |
16,817,531 | |||
Metals & Mining - 2.9% | |||
Alcoa Corp. (b) | 6,124 | 275,396 | |
Freeport-McMoRan, Inc. (b) | 603,078 | 11,217,251 | |
Newmont Mining Corp. | 267,735 | 10,227,477 | |
Nucor Corp. | 133,080 | 8,703,432 | |
Reliance Steel & Aluminum Co. | 64,819 | 5,844,729 | |
36,268,285 | |||
Paper & Forest Products - 0.9% | |||
Domtar Corp. | 155,923 | 6,979,113 | |
Louisiana-Pacific Corp. | 160,473 | 4,573,481 | |
11,552,594 | |||
TOTAL MATERIALS | 95,622,241 | ||
REAL ESTATE - 6.6% | |||
Equity Real Estate Investment Trusts (REITs) - 6.2% | |||
Apple Hospitality (REIT), Inc. | 279,367 | 4,746,445 | |
Brixmor Property Group, Inc. | 344,485 | 5,353,297 | |
Corrections Corp. of America | 217,268 | 4,517,002 | |
Equity Lifestyle Properties, Inc. | 55,569 | 4,701,693 | |
Gaming & Leisure Properties | 228,008 | 7,583,546 | |
General Growth Properties, Inc. | 52,259 | 1,106,323 | |
Hospitality Properties Trust (SBI) | 107,358 | 2,731,188 | |
Host Hotels & Resorts, Inc. | 360,379 | 6,688,634 | |
Lamar Advertising Co. Class A | 46,522 | 3,092,317 | |
Liberty Property Trust (SBI) | 86,030 | 3,377,538 | |
Park Hotels & Resorts, Inc. | 243,515 | 6,328,955 | |
Piedmont Office Realty Trust, Inc. Class A | 41,227 | 740,437 | |
Prologis, Inc. | 192,608 | 11,687,453 | |
Quality Care Properties, Inc. (b) | 12,963 | 160,612 | |
Senior Housing Properties Trust (SBI) | 209,037 | 3,164,820 | |
The Macerich Co. | 2,540 | 149,708 | |
Welltower, Inc. | 32,260 | 1,693,650 | |
Weyerhaeuser Co. | 322,384 | 11,293,112 | |
WP Carey, Inc. | 6,802 | 407,576 | |
79,524,306 | |||
Real Estate Management & Development - 0.4% | |||
Realogy Holdings Corp. (a) | 186,626 | 4,768,294 | |
TOTAL REAL ESTATE | 84,292,600 | ||
UTILITIES - 4.1% | |||
Electric Utilities - 2.2% | |||
Edison International | 12,266 | 743,197 | |
Entergy Corp. | 54,120 | 4,103,378 | |
FirstEnergy Corp. (a) | 292,565 | 9,458,626 | |
PG&E Corp. | 85,035 | 3,494,088 | |
PPL Corp. | 291,822 | 8,360,700 | |
Xcel Energy, Inc. | 41,660 | 1,803,045 | |
27,963,034 | |||
Gas Utilities - 0.7% | |||
National Fuel Gas Co. (a) | 32,390 | 1,601,038 | |
UGI Corp. | 177,191 | 7,635,160 | |
9,236,198 | |||
Independent Power and Renewable Electricity Producers - 0.3% | |||
NRG Energy, Inc. | 16,443 | 425,216 | |
The AES Corp. | 276,527 | 3,005,848 | |
3,431,064 | |||
Multi-Utilities - 0.9% | |||
CenterPoint Energy, Inc. | 267,754 | 7,242,746 | |
CMS Energy Corp. | 7,150 | 303,518 | |
MDU Resources Group, Inc. | 171,923 | 4,519,856 | |
12,066,120 | |||
TOTAL UTILITIES | 52,696,416 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,099,013,846) | 1,265,438,428 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 1.18% 6/21/18 (c) | |||
(Cost $1,195,632) | 1,200,000 | 1,193,859 | |
Shares | Value | ||
Money Market Funds - 5.8% | |||
Fidelity Cash Central Fund, 1.41% (d) | 8,030,024 | $8,031,630 | |
Fidelity Securities Lending Cash Central Fund 1.42% (d)(e) | 65,767,516 | 65,774,092 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $73,805,723) | 73,805,722 | ||
TOTAL INVESTMENT IN SECURITIES - 105.0% | |||
(Cost $1,174,015,201) | 1,340,438,009 | ||
NET OTHER ASSETS (LIABILITIES) - (5.0)% | (63,765,739) | ||
NET ASSETS - 100% | $1,276,672,270 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 59 | March 2018 | $11,000,550 | $54,462 | $54,462 |
The notional amount of futures purchased as a percentage of Net Assets is 0.9%
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $596,929.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $63,371 |
Fidelity Securities Lending Cash Central Fund | 22,695 |
Total | $86,066 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of February 28, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $212,835,197 | $212,835,197 | $-- | $-- |
Consumer Staples | 61,890,424 | 61,890,424 | -- | -- |
Energy | 48,843,501 | 48,843,501 | -- | -- |
Financials | 180,930,244 | 180,930,244 | -- | -- |
Health Care | 125,504,941 | 125,504,941 | -- | -- |
Industrials | 164,768,757 | 164,768,757 | -- | -- |
Information Technology | 238,054,107 | 238,054,107 | -- | -- |
Materials | 95,622,241 | 95,622,241 | -- | -- |
Real Estate | 84,292,600 | 84,292,600 | -- | -- |
Utilities | 52,696,416 | 52,696,416 | -- | -- |
U.S. Government and Government Agency Obligations | 1,193,859 | -- | 1,193,859 | -- |
Money Market Funds | 73,805,722 | 73,805,722 | -- | -- |
Total Investments in Securities: | $1,340,438,009 | $1,339,244,150 | $1,193,859 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $54,462 | $54,462 | $-- | $-- |
Total Assets | $54,462 | $54,462 | $-- | $-- |
Total Derivative Instruments: | $54,462 | $54,462 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $54,462 | $0 |
Total Equity Risk | 54,462 | 0 |
Total Value of Derivatives | $54,462 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Mid Cap Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
February 28, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $63,899,914) — See accompanying schedule: Unaffiliated issuers (cost $1,100,209,478) | $1,266,632,286 | |
Fidelity Central Funds (cost $73,805,723) | 73,805,723 | |
Total Investment in Securities (cost $1,174,015,201) | $1,340,438,009 | |
Cash | 158,655 | |
Receivable for investments sold | 13,293,560 | |
Receivable for fund shares sold | 880,701 | |
Dividends receivable | 1,901,614 | |
Distributions receivable from Fidelity Central Funds | 15,078 | |
Total assets | 1,356,687,617 | |
Liabilities | ||
Payable for investments purchased | $12,453,281 | |
Payable for fund shares redeemed | 967,573 | |
Accrued management fee | 628,760 | |
Payable for daily variation margin on futures contracts | 137,017 | |
Other payables and accrued expenses | 52,939 | |
Collateral on securities loaned | 65,775,777 | |
Total liabilities | 80,015,347 | |
Net Assets | $1,276,672,270 | |
Net Assets consist of: | ||
Paid in capital | $1,070,353,922 | |
Undistributed net investment income | 2,058,046 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 37,783,032 | |
Net unrealized appreciation (depreciation) on investments | 166,477,270 | |
Net Assets, for 81,986,700 shares outstanding | $1,276,672,270 | |
Net Asset Value, offering price and redemption price per share ($1,276,672,270 ÷ 81,986,700 shares) | $15.57 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended February 28, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $12,986,426 | |
Interest | 7,007 | |
Income from Fidelity Central Funds (including $22,695 from security lending) | 86,066 | |
Total income | 13,079,499 | |
Expenses | ||
Management fee | $3,694,131 | |
Independent trustees' fees and expenses | 12,800 | |
Miscellaneous | 59,316 | |
Total expenses before reductions | 3,766,247 | |
Expense reductions | (993) | 3,765,254 |
Net investment income (loss) | 9,314,245 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 50,338,773 | |
Fidelity Central Funds | 5,359 | |
Foreign currency transactions | (246) | |
Futures contracts | 984,190 | |
Total net realized gain (loss) | 51,328,076 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 63,611,081 | |
Fidelity Central Funds | (7,044) | |
Assets and liabilities in foreign currencies | 156 | |
Futures contracts | (58,485) | |
Total change in net unrealized appreciation (depreciation) | 63,545,708 | |
Net gain (loss) | 114,873,784 | |
Net increase (decrease) in net assets resulting from operations | $124,188,029 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended February 28, 2018 (Unaudited) | Six months ended August 31, 2017 | Year ended February 28, 2017 | |
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $9,314,245 | $9,568,754 | $14,927,630 |
Net realized gain (loss) | 51,328,076 | 49,899,267 | 23,850,804 |
Change in net unrealized appreciation (depreciation) | 63,545,708 | (39,529,211) | 174,682,897 |
Net increase (decrease) in net assets resulting from operations | 124,188,029 | 19,938,810 | 213,461,331 |
Distributions to shareholders from net investment income | (16,317,390) | (1,441,547) | (13,411,857) |
Distributions to shareholders from net realized gain | (56,685,523) | (5,846,277) | – |
Total distributions | (73,002,913) | (7,287,824) | (13,411,857) |
Share transactions | |||
Proceeds from sales of shares | 126,700,748 | 127,094,477 | 426,253,089 |
Reinvestment of distributions | 68,383,542 | 6,841,106 | 12,561,998 |
Cost of shares redeemed | (153,458,048) | (138,749,134) | (268,090,456) |
Net increase (decrease) in net assets resulting from share transactions | 41,626,242 | (4,813,551) | 170,724,631 |
Redemption fees | – | – | 7,663 |
Total increase (decrease) in net assets | 92,811,358 | 7,837,435 | 370,781,768 |
Net Assets | |||
Beginning of period | 1,183,860,912 | 1,176,023,477 | 805,241,709 |
End of period | $1,276,672,270 | $1,183,860,912 | $1,176,023,477 |
Other Information | |||
Undistributed net investment income end of period | $2,058,046 | $9,061,191 | $1,439,172 |
Shares | |||
Sold | 8,037,088 | 8,574,869 | 31,499,548 |
Issued in reinvestment of distributions | 4,408,997 | 471,151 | 869,944 |
Redeemed | (9,764,609) | (9,371,828) | (19,978,229) |
Net increase (decrease) | 2,681,476 | (325,808) | 12,391,263 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Mid Cap Enhanced Index Fund
Six months ended (Unaudited) February 28, | Years endedAugust 31, | ||||||
2018 | 2017 A | 2017B | 2016 C | 2015B | 2014B | 2013B | |
Selected Per–Share Data | |||||||
Net asset value, beginning of period | $14.93 | $14.77 | $11.98 | $14.16 | $13.60 | $10.97 | $9.79 |
Income from Investment Operations | |||||||
Net investment income (loss)D | .12 | .12 | .21 | .18 | .15 | .15 | .18 |
Net realized and unrealized gain (loss) | 1.46 | .13 | 2.76 | (1.70) | 1.73 | 3.17 | 1.30 |
Total from investment operations | 1.58 | .25 | 2.97 | (1.52) | 1.88 | 3.32 | 1.48 |
Distributions from net investment income | (.21) | (.02) | (.18) | (.14) | (.10) | (.12) | (.17) |
Distributions from net realized gain | (.73) | (.07) | – | (.51) | (1.22) | (.57) | (.13) |
Total distributions | (.94) | (.09) | (.18) | (.66)E | (1.32) | (.69) | (.30) |
Redemption fees added to paid in capitalD,F | – | – | – | – | – | – | – |
Net asset value, end of period | $15.57 | $14.93 | $14.77 | $11.98 | $14.16 | $13.60 | $10.97 |
Total ReturnG,H | 10.63% | 1.72% | 24.85% | (11.02)% | 15.22% | 30.97% | 15.57% |
Ratios to Average Net AssetsI,J | |||||||
Expenses before reductions | .60%K | .59%K | .60% | .60% | .60% | .60% | .60% |
Expenses net of fee waivers, if any | .60%K | .59%K | .60% | .60% | .60% | .60% | .60% |
Expenses net of all reductions | .60%K | .59%K | .60% | .60% | .60% | .60% | .60% |
Net investment income (loss) | 1.48%K | 1.62%K | 1.53% | 1.34% | 1.08% | 1.24% | 1.80% |
Supplemental Data | |||||||
Net assets, end of period (000 omitted) | $1,276,672 | $1,183,861 | $1,176,023 | $805,242 | $608,475 | $271,674 | $128,130 |
Portfolio turnover rateL | 103%K | 94%K | 87% | 88% | 89% | 128% | 99% |
A For the six month period ended August 31. The Fund changed its fiscal year end from February 28 to August 31, effective August 31, 2017.
B For the year ended February 28.
C For the year ended February 29.
D Calculated based on average shares outstanding during the period.
E Total distributions of $.66 per share is comprised of distributions from net investment income of $.144 and distributions from net realized gain of $.511 per share.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® International Enhanced Index Fund
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
As of February 28, 2018 | ||
Japan | 25.4% | |
United Kingdom | 15.9% | |
France | 10.1% | |
Germany | 8.5% | |
Australia | 7.1% | |
Netherlands | 6.7% | |
Switzerland | 6.6% | |
Spain | 3.4% | |
Sweden | 2.5% | |
Other* | 13.8% |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages are based on country or territory of incorporation and include the effect of futures contracts, options and swaps, as applicable.
Asset Allocation as of February 28, 2018
% of fund's net assets | |
Stocks and Equity Futures | 99.9 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1 |
Top Ten Stocks as of February 28, 2018
% of fund's net assets | |
Nestle SA (Reg. S) (Switzerland, Food Products) | 2.1 |
Novartis AG (Switzerland, Pharmaceuticals) | 1.7 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.6 |
Total SA (France, Oil, Gas & Consumable Fuels) | 1.4 |
Allianz SE (Germany, Insurance) | 1.2 |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 1.1 |
Bayer AG (Germany, Pharmaceuticals) | 1.1 |
BASF AG (Germany, Chemicals) | 1.1 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 1.1 |
BNP Paribas SA (France, Banks) | 1.1 |
13.5 |
Top Market Sectors as of February 28, 2018
% of fund's net assets | |
Financials | 19.3 |
Consumer Discretionary | 13.6 |
Industrials | 12.8 |
Health Care | 10.4 |
Materials | 10.0 |
Consumer Staples | 9.6 |
Information Technology | 7.8 |
Energy | 5.9 |
Telecommunication Services | 5.3 |
Real Estate | 2.2 |
Fidelity® International Enhanced Index Fund
Schedule of Investments February 28, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value | ||
Australia - 7.1% | |||
Aristocrat Leisure Ltd. | 267,699 | $5,089,038 | |
Australia & New Zealand Banking Group Ltd. | 243,000 | 5,430,591 | |
BHP Billiton Ltd. | 474,428 | 11,140,634 | |
Cimic Group Ltd. | 52,398 | 1,890,001 | |
Coca-Cola Amatil Ltd. | 584,578 | 3,953,651 | |
Commonwealth Bank of Australia | 150,665 | 8,867,752 | |
Fortescue Metals Group Ltd. | 1,508,820 | 5,802,911 | |
Insurance Australia Group Ltd. | 24,888 | 157,267 | |
Macquarie Group Ltd. | 60,771 | 4,841,860 | |
National Australia Bank Ltd. | 374,402 | 8,703,043 | |
Qantas Airways Ltd. | 688,768 | 3,135,224 | |
Rio Tinto Ltd. | 120,839 | 7,491,775 | |
South32 Ltd. | 1,966,098 | 4,964,666 | |
Stockland Corp. Ltd. unit | 121,255 | 379,005 | |
Vicinity Centers unit | 31,334 | 60,093 | |
Wesfarmers Ltd. | 251,033 | 8,028,503 | |
Westpac Banking Corp. | 15,511 | 367,585 | |
Woolworths Group Ltd. | 43,626 | 932,275 | |
TOTAL AUSTRALIA | 81,235,874 | ||
Austria - 0.4% | |||
Erste Group Bank AG | 5,076 | 258,097 | |
OMV AG | 71,579 | 4,069,857 | |
Raiffeisen International Bank-Holding AG (a) | 4,321 | 167,413 | |
TOTAL AUSTRIA | 4,495,367 | ||
Bailiwick of Jersey - 0.2% | |||
Glencore Xstrata PLC | 330,086 | 1,735,809 | |
WPP PLC | 11,812 | 226,201 | |
TOTAL BAILIWICK OF JERSEY | 1,962,010 | ||
Belgium - 0.9% | |||
Ageas | 66,011 | 3,456,358 | |
Anheuser-Busch InBev SA NV | 3,771 | 400,323 | |
Solvay SA Class A | 4,535 | 621,508 | |
UCB SA | 72,486 | 5,987,800 | |
TOTAL BELGIUM | 10,465,989 | ||
Bermuda - 0.2% | |||
Hongkong Land Holdings Ltd. | 117,774 | 808,666 | |
Kerry Properties Ltd. | 360,000 | 1,627,292 | |
TOTAL BERMUDA | 2,435,958 | ||
Cayman Islands - 1.9% | |||
Cheung Kong Property Holdings Ltd. | 374,500 | 3,217,813 | |
CK Hutchison Holdings Ltd. | 620,000 | 7,748,905 | |
Melco Crown Entertainment Ltd. sponsored ADR | 127,251 | 3,493,040 | |
Sands China Ltd. | 760,800 | 4,244,032 | |
WH Group Ltd. (b) | 2,048,500 | 2,522,943 | |
TOTAL CAYMAN ISLANDS | 21,226,733 | ||
Denmark - 2.1% | |||
Carlsberg A/S Series B | 14,768 | 1,805,598 | |
Danske Bank A/S | 191,666 | 7,692,609 | |
H Lundbeck A/S | 43,978 | 2,302,946 | |
Novo Nordisk A/S Series B | 235,755 | 12,195,833 | |
William Demant Holding A/S (a) | 2,046 | 73,121 | |
TOTAL DENMARK | 24,070,107 | ||
Finland - 1.0% | |||
Stora Enso Oyj (R Shares) | 282,975 | 4,997,435 | |
UPM-Kymmene Corp. | 189,234 | 6,474,419 | |
TOTAL FINLAND | 11,471,854 | ||
France - 10.1% | |||
Arkema SA | 25,727 | 3,357,338 | |
Atos Origin SA | 8,125 | 1,068,833 | |
BNP Paribas SA | 153,838 | 12,164,051 | |
Bouygues SA | 69,703 | 3,526,138 | |
Casino Guichard Perrachon SA | 99,891 | 5,411,103 | |
CNP Assurances | 15,128 | 366,605 | |
Compagnie de St. Gobain | 136,727 | 7,738,588 | |
Credit Agricole SA | 413,823 | 7,090,944 | |
Dassault Aviation SA | 58 | 100,535 | |
Eiffage SA | 6,120 | 662,500 | |
ENGIE | 398,467 | 6,214,635 | |
Eurazeo SA | 3,519 | 335,856 | |
Faurecia SA | 11,709 | 979,002 | |
Kering SA | 1,979 | 928,684 | |
LVMH Moet Hennessy - Louis Vuitton SA | 2,333 | 697,793 | |
Orange SA | 433,044 | 7,326,301 | |
Peugeot Citroen SA | 298,878 | 6,743,848 | |
Renault SA | 66,850 | 7,251,209 | |
Sanofi SA | 148,265 | 11,705,504 | |
Societe Generale Series A | 148,458 | 8,435,332 | |
Total SA | 275,226 | 15,654,516 | |
Ubisoft Entertainment SA (a) | 38,126 | 3,135,334 | |
Unibail-Rodamco | 17,403 | 4,049,222 | |
TOTAL FRANCE | 114,943,871 | ||
Germany - 8.5% | |||
Allianz SE | 57,207 | 13,288,689 | |
BASF AG | 117,599 | 12,285,516 | |
Bayer AG | 107,875 | 12,588,600 | |
Continental AG | 6,379 | 1,743,034 | |
Covestro AG (b) | 61,829 | 6,974,954 | |
Daimler AG (Germany) | 9,154 | 781,629 | |
Deutsche Borse AG | 6,822 | 907,133 | |
Deutsche Lufthansa AG | 179,024 | 5,977,623 | |
Deutsche Telekom AG | 400,016 | 6,426,933 | |
Evonik Industries AG | 7,237 | 266,467 | |
Fresenius SE & Co. KGaA | 26,440 | 2,148,322 | |
Hochtief AG | 3,594 | 603,700 | |
Hugo Boss AG | 10,066 | 895,971 | |
Infineon Technologies AG | 115,745 | 3,132,383 | |
Linde AG (a) | 4,601 | 1,020,957 | |
Metro AG | 305,179 | 3,998,456 | |
Metro Wholesale & Food Specialist AG | 85,904 | 1,675,408 | |
Muenchener Rueckversicherungs AG | 35,615 | 7,963,874 | |
ProSiebenSat.1 Media AG | 138,810 | 5,489,870 | |
SAP SE | 19,058 | 1,988,882 | |
Siemens AG | 33,518 | 4,392,227 | |
Telefonica Deutschland Holding AG | 46,587 | 214,418 | |
TUI AG (GB) | 92,299 | 1,950,853 | |
TOTAL GERMANY | 96,715,899 | ||
Hong Kong - 1.9% | |||
AIA Group Ltd. | 199,000 | 1,651,420 | |
Galaxy Entertainment Group Ltd. | 672,000 | 5,829,990 | |
Henderson Land Development Co. Ltd. | 220,760 | 1,426,283 | |
Hong Kong Exchanges and Clearing Ltd. | 9,300 | 333,145 | |
Sun Hung Kai Properties Ltd. | 436,000 | 7,232,797 | |
Wharf Holdings Ltd. | 595,000 | 2,210,610 | |
Wheelock and Co. Ltd. | 360,000 | 2,609,591 | |
TOTAL HONG KONG | 21,293,836 | ||
Isle of Man - 0.4% | |||
Genting Singapore PLC | 5,702,900 | 4,954,643 | |
Italy - 1.3% | |||
Assicurazioni Generali SpA | 4,840 | 90,543 | |
Eni SpA | 522,345 | 8,673,472 | |
Mediobanca SpA | 94,856 | 1,131,891 | |
Poste Italiane SpA (b) | 286,500 | 2,459,843 | |
Terna SpA | 352,032 | 1,951,263 | |
TOTAL ITALY | 14,307,012 | ||
Japan - 25.4% | |||
Aisin Seiki Co. Ltd. | 94,900 | 5,522,894 | |
Alfresa Holdings Corp. | 11,400 | 254,822 | |
Asahi Glass Co. Ltd. | 135,800 | 5,608,595 | |
Astellas Pharma, Inc. | 549,400 | 8,071,210 | |
Bridgestone Corp. | 62,100 | 2,756,594 | |
Brother Industries Ltd. | 141,100 | 3,509,079 | |
Canon, Inc. | 231,200 | 8,810,759 | |
Central Japan Railway Co. | 35,500 | 6,593,694 | |
Daicel Chemical Industries Ltd. | 118,000 | 1,344,418 | |
Daiwa Securities Group, Inc. | 92,000 | 611,600 | |
DENSO Corp. | 50,700 | 2,959,249 | |
Electric Power Development Co. Ltd. | 47,700 | 1,209,495 | |
Fast Retailing Co. Ltd. | 6,500 | 2,562,760 | |
Fujifilm Holdings Corp. | 163,400 | 6,809,243 | |
Fujitsu Ltd. | 1,054,000 | 6,289,850 | |
Hitachi Construction Machinery Co. Ltd. | 25,400 | 1,076,067 | |
Hitachi High-Technologies Corp. | 28,700 | 1,392,772 | |
Hitachi Ltd. | 1,087,000 | 8,220,008 | |
Honda Motor Co. Ltd. | 284,700 | 10,295,401 | |
Hoya Corp. | 93,100 | 4,894,750 | |
Itochu Corp. | 233,700 | 4,492,312 | |
Japan Post Bank Co. Ltd. | 139,000 | 1,895,392 | |
Japan Post Holdings Co. Ltd. | 513,300 | 6,185,194 | |
JTEKT Corp. | 154,300 | 2,372,464 | |
JX Holdings, Inc. | 607,600 | 3,644,595 | |
Kajima Corp. | 548,000 | 5,217,472 | |
Kansai Electric Power Co., Inc. | 138,200 | 1,678,614 | |
Kao Corp. | 26,700 | 1,948,963 | |
KDDI Corp. | 116,500 | 2,860,924 | |
Kirin Holdings Co. Ltd. | 280,900 | 7,249,094 | |
Komatsu Ltd. | 29,600 | 1,073,300 | |
Kurita Water Industries Ltd. | 1,200 | 36,679 | |
Kyocera Corp. | 81,300 | 4,795,006 | |
Marubeni Corp. | 867,700 | 6,611,244 | |
Mazda Motor Corp. | 229,600 | 3,181,445 | |
Miraca Holdings, Inc. | 29,200 | 1,084,896 | |
Mitsubishi Chemical Holdings Corp. | 603,600 | 6,089,654 | |
Mitsubishi Corp. | 315,300 | 8,833,195 | |
Mitsubishi Gas Chemical Co., Inc. | 27,700 | 685,110 | |
Mitsubishi UFJ Financial Group, Inc. | 145,300 | 1,023,442 | |
Mitsui & Co. Ltd. | 433,600 | 7,858,537 | |
Mitsui Chemicals, Inc. | 35,600 | 1,080,257 | |
mixi, Inc. | 3,200 | 129,077 | |
Mizuho Financial Group, Inc. | 1,541,000 | 2,845,546 | |
MS&AD Insurance Group Holdings, Inc. | 35,000 | 1,080,076 | |
Nexon Co. Ltd. (a) | 164,800 | 5,938,146 | |
Nintendo Co. Ltd. | 1,500 | 683,790 | |
Nippon Electric Glass Co. Ltd. | 101,800 | 3,075,024 | |
Nippon Telegraph & Telephone Corp. | 161,000 | 7,477,904 | |
Nitto Denko Corp. | 24,100 | 1,978,629 | |
Nomura Holdings, Inc. | 902,700 | 5,495,073 | |
NTT DOCOMO, Inc. | 257,500 | 6,587,449 | |
Obayashi Corp. | 234,900 | 2,650,794 | |
Oji Holdings Corp. | 38,000 | 247,638 | |
Olympus Corp. | 1,900 | 75,989 | |
OMRON Corp. | 31,900 | 1,877,392 | |
ORIX Corp. | 351,600 | 6,224,937 | |
Panasonic Corp. | 100,100 | 1,558,151 | |
Pola Orbis Holdings, Inc. | 81,000 | 3,395,855 | |
Sega Sammy Holdings, Inc. | 81,100 | 1,176,517 | |
Seven & i Holdings Co. Ltd. | 91,800 | 3,831,895 | |
Shimamura Co. Ltd. | 1,600 | 190,234 | |
Shionogi & Co. Ltd. | 63,400 | 3,300,180 | |
Shiseido Co. Ltd. | 29,900 | 1,793,139 | |
Sony Corp. | 162,500 | 8,188,401 | |
Sumitomo Chemical Co. Ltd. | 691,000 | 4,260,481 | |
Sumitomo Corp. | 363,500 | 6,376,502 | |
Sumitomo Mitsui Financial Group, Inc. | 35,200 | 1,521,402 | |
Suntory Beverage & Food Ltd. | 12,600 | 584,647 | |
Suzuki Motor Corp. | 126,400 | 7,210,601 | |
Taisei Corp. | 127,900 | 6,482,333 | |
Tokyo Electric Power Co., Inc. (a) | 273,600 | 1,046,686 | |
Tokyo Electron Ltd. | 39,900 | 7,796,574 | |
Toshiba Corp. (a) | 1,177,000 | 3,491,523 | |
Tosoh Corp. | 37,700 | 779,369 | |
Toyota Motor Corp. | 125,800 | 8,476,796 | |
Yakult Honsha Co. Ltd. | 4,800 | 343,492 | |
Yamaha Motor Co. Ltd. | 33,100 | 1,046,738 | |
TOTAL JAPAN | 287,910,029 | ||
Mauritius - 0.0% | |||
Golden Agri-Resources Ltd. | 249,600 | 67,572 | |
Netherlands - 6.7% | |||
ABN AMRO Group NV GDR | 34,940 | 1,087,111 | |
AEGON NV | 688,848 | 4,782,364 | |
ASML Holding NV (Netherlands) | 408 | 79,570 | |
EXOR NV | 85,088 | 6,174,309 | |
Ferrari NV | 33,507 | 4,152,241 | |
Fiat Chrysler Automobiles NV | 340,650 | 7,190,463 | |
Heineken Holding NV | 24,167 | 2,403,923 | |
ING Groep NV (Certificaten Van Aandelen) | 600,913 | 10,544,813 | |
Koninklijke Ahold Delhaize NV | 355,936 | 7,991,485 | |
Koninklijke DSM NV | 6,188 | 639,092 | |
Koninklijke KPN NV | 114,670 | 358,836 | |
Koninklijke Philips Electronics NV | 214,370 | 8,169,838 | |
NN Group NV | 79,820 | 3,558,449 | |
NXP Semiconductors NV (a) | 16,757 | 2,088,928 | |
RELX NV | 18,165 | 372,614 | |
STMicroelectronics NV (France) | 291,070 | 6,619,600 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 179,218 | 9,379,580 | |
TOTAL NETHERLANDS | 75,593,216 | ||
Norway - 0.6% | |||
Statoil ASA | 76,513 | 1,741,552 | |
Telenor ASA | 207,702 | 4,661,138 | |
TOTAL NORWAY | 6,402,690 | ||
Singapore - 1.1% | |||
ComfortDelgro Corp. Ltd. | 921,000 | 1,404,329 | |
DBS Group Holdings Ltd. | 38,900 | 835,992 | |
Oversea-Chinese Banking Corp. Ltd. | 702,600 | 6,875,401 | |
Yangzijiang Shipbuilding Holdings Ltd. | 2,880,000 | 3,250,049 | |
TOTAL SINGAPORE | 12,365,771 | ||
Spain - 3.4% | |||
Abertis Infraestructuras SA | 5,727 | 136,664 | |
ACS Actividades de Construccion y Servicios SA | 9,541 | 327,054 | |
Aena Sme SA | 725 | 147,242 | |
Amadeus IT Holding SA Class A | 108,959 | 7,999,315 | |
Banco Bilbao Vizcaya Argentaria SA | 1,043,919 | 8,685,044 | |
Banco de Sabadell SA | 752,833 | 1,572,710 | |
Banco Santander SA (Spain) | 868,316 | 5,951,934 | |
International Consolidated Airlines Group SA | 226,730 | 1,907,945 | |
Repsol SA | 156,119 | 2,773,837 | |
Telefonica SA | 909,985 | 8,832,242 | |
TOTAL SPAIN | 38,333,987 | ||
Sweden - 2.5% | |||
Atlas Copco AB: | |||
(A Shares) | 138,190 | 5,878,218 | |
(B Shares) | 64,015 | 2,420,165 | |
Electrolux AB (B Shares) | 23,557 | 773,376 | |
Hexagon AB (B Shares) | 10,586 | 618,885 | |
Industrivarden AB (C Shares) | 66,336 | 1,582,465 | |
Lundbergfoeretagen AB | 5,876 | 438,429 | |
Sandvik AB | 388,851 | 7,198,599 | |
Swedish Match Co. AB | 7,601 | 322,870 | |
Tele2 AB (B Shares) | 93,415 | 1,104,869 | |
Volvo AB (B Shares) | 412,600 | 7,757,673 | |
TOTAL SWEDEN | 28,095,549 | ||
Switzerland - 6.6% | |||
Adecco SA (Reg.) | 30,214 | 2,427,132 | |
Coca-Cola HBC AG | 14,959 | 489,042 | |
Compagnie Financiere Richemont SA Series A | 11,700 | 1,025,979 | |
Lafargeholcim Ltd. (Reg.) | 20,078 | 1,170,356 | |
Nestle SA (Reg. S) | 293,678 | 23,333,028 | |
Novartis AG | 230,905 | 19,262,520 | |
Partners Group Holding AG | 515 | 373,262 | |
Roche Holding AG (participation certificate) | 76,133 | 17,585,200 | |
Schindler Holding AG (participation certificate) | 1,136 | 265,430 | |
Sika AG | 17 | 139,406 | |
Swiss Re Ltd. | 61,195 | 6,226,263 | |
UBS Group AG | 162,508 | 3,079,507 | |
TOTAL SWITZERLAND | 75,377,125 | ||
United Kingdom - 15.9% | |||
3i Group PLC | 328,794 | 4,229,286 | |
Anglo American PLC (United Kingdom) | 325,288 | 7,878,027 | |
AstraZeneca PLC (United Kingdom) | 8,922 | 583,965 | |
Aviva PLC | 1,107,944 | 7,675,043 | |
BAE Systems PLC | 188,535 | 1,496,394 | |
Barclays PLC | 3,194,555 | 9,295,001 | |
Barratt Developments PLC | 346,739 | 2,562,536 | |
Berkeley Group Holdings PLC | 73,720 | 3,901,403 | |
BHP Billiton PLC | 423,811 | 8,603,781 | |
BP PLC | 635,314 | 4,129,390 | |
British American Tobacco PLC (United Kingdom) | 78,313 | 4,622,229 | |
BT Group PLC | 646,065 | 2,132,136 | |
Burberry Group PLC | 148,630 | 3,118,976 | |
Capita Group PLC | 123,766 | 298,640 | |
Centrica PLC | 1,802,026 | 3,535,517 | |
Diageo PLC | 23,260 | 789,225 | |
G4S PLC (United Kingdom) | 99,134 | 356,485 | |
GlaxoSmithKline PLC | 143,334 | 2,570,515 | |
GlaxoSmithKline PLC sponsored ADR | 133,509 | 4,847,712 | |
Hammerson PLC | 98,583 | 604,243 | |
HSBC Holdings PLC: | |||
(United Kingdom) | 453,127 | 4,456,178 | |
sponsored ADR (c) | 95,849 | 4,756,986 | |
Imperial Tobacco Group PLC | 88,209 | 3,166,998 | |
J Sainsbury PLC | 941,775 | 3,347,776 | |
Legal & General Group PLC | 1,298,359 | 4,677,257 | |
Marks & Spencer Group PLC | 1,482,716 | 6,004,438 | |
Next PLC | 23,264 | 1,551,473 | |
Pearson PLC | 447,781 | 4,509,416 | |
Persimmon PLC | 148,694 | 5,315,593 | |
Rio Tinto PLC | 168,572 | 9,036,263 | |
Royal Bank of Scotland Group PLC (a) | 60,710 | 222,513 | |
Royal Dutch Shell PLC: | |||
Class A (United Kingdom) | 413,115 | 13,046,642 | |
Class B (United Kingdom) | 356,397 | 11,304,634 | |
Royal Mail PLC | 789,692 | 6,082,691 | |
RSA Insurance Group PLC | 65,287 | 566,208 | |
Schroders PLC | 3,543 | 167,067 | |
SKY PLC | 15,637 | 288,704 | |
Smith & Nephew PLC | 33,925 | 592,292 | |
Tate & Lyle PLC | 399,903 | 3,071,291 | |
Taylor Wimpey PLC | 1,997,178 | 5,089,447 | |
Unilever PLC | 139,438 | 7,169,648 | |
Vodafone Group PLC | 3,970,934 | 11,101,118 | |
William Hill PLC | 325,530 | 1,463,810 | |
WM Morrison Supermarkets PLC | 271,765 | 843,064 | |
TOTAL UNITED KINGDOM | 181,062,011 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,047,671,523) | 1,114,787,103 | ||
Principal Amount | Value | ||
Government Obligations - 0.2% | |||
United States of America - 0.2% | |||
U.S. Treasury Bills, yield at date of purchase 1.18% to 1.51% 6/21/18(d) | |||
(Cost $2,589,287) | 2,600,000 | 2,586,694 | |
Shares | Value | ||
Money Market Funds - 1.6% | |||
Fidelity Cash Central Fund, 1.41% (e) | 12,729,730 | 12,732,275 | |
Fidelity Securities Lending Cash Central Fund 1.42% (e)(f) | 4,841,683 | 4,842,168 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $17,574,443) | 17,574,443 | ||
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $1,067,835,253) | 1,134,948,240 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | 554,013 | ||
NET ASSETS - 100% | $1,135,502,253 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
ICE E-mini MSCI EAFE Index Contracts (United States) | 188 | March 2018 | $19,143,100 | $68,237 | $68,237 |
The notional amount of futures purchased as a percentage of Net Assets is 1.7%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $11,957,740 or 1.1% of net assets.
(c) Security or a portion of the security is on loan at period end.
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $801,875.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $196,540 |
Fidelity Securities Lending Cash Central Fund | 5,768 |
Total | $202,308 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of February 28, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $157,370,929 | $3,493,040 | $153,877,889 | $-- |
Consumer Staples | 110,874,620 | -- | 110,874,620 | -- |
Energy | 65,038,495 | -- | 65,038,495 | -- |
Financials | 220,858,155 | 4,756,986 | 216,101,169 | -- |
Health Care | 118,296,015 | 4,847,712 | 113,448,303 | -- |
Industrials | 146,277,476 | -- | 146,277,476 | -- |
Information Technology | 86,058,450 | 2,088,928 | 83,969,522 | -- |
Materials | 111,066,870 | -- | 111,066,870 | -- |
Real Estate | 24,225,615 | -- | 24,225,615 | -- |
Telecommunication Services | 59,084,268 | -- | 59,084,268 | -- |
Utilities | 15,636,210 | -- | 15,636,210 | -- |
Government Obligations | 2,586,694 | -- | 2,586,694 | -- |
Money Market Funds | 17,574,443 | 17,574,443 | -- | -- |
Total Investments in Securities: | $1,134,948,240 | $32,761,109 | $1,102,187,131 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $68,237 | $68,237 | $-- | $-- |
Total Assets | $68,237 | $68,237 | $-- | $-- |
Total Derivative Instruments: | $68,237 | $68,237 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended February 28, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $295,110,087 |
Level 2 to Level 1 | $0 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of February 28, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $68,237 | $0 |
Total Equity Risk | 68,237 | 0 |
Total Value of Derivatives | $68,237 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® International Enhanced Index Fund
Financial Statements
Statement of Assets and Liabilities
February 28, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,688,844) — See accompanying schedule: Unaffiliated issuers (cost $1,050,260,810) | $1,117,373,797 | |
Fidelity Central Funds (cost $17,574,443) | 17,574,443 | |
Total Investment in Securities (cost $1,067,835,253) | $1,134,948,240 | |
Foreign currency held at value (cost $114,169) | 114,185 | |
Receivable for investments sold | 7,079,654 | |
Receivable for fund shares sold | 3,583,652 | |
Dividends receivable | 2,710,731 | |
Distributions receivable from Fidelity Central Funds | 32,257 | |
Total assets | 1,148,468,719 | |
Liabilities | ||
Payable for investments purchased | $6,539,480 | |
Payable for fund shares redeemed | 806,860 | |
Accrued management fee | 559,786 | |
Payable for daily variation margin on futures contracts | 187,788 | |
Other payables and accrued expenses | 30,657 | |
Collateral on securities loaned | 4,841,895 | |
Total liabilities | 12,966,466 | |
Net Assets | $1,135,502,253 | |
Net Assets consist of: | ||
Paid in capital | $1,063,951,188 | |
Undistributed net investment income | 1,009,725 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 3,324,540 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 67,216,800 | |
Net Assets, for 112,028,458 shares outstanding | $1,135,502,253 | |
Net Asset Value, offering price and redemption price per share ($1,135,502,253 ÷ 112,028,458 shares) | $10.14 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended February 28, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $7,992,039 | |
Interest | 8,234 | |
Income from Fidelity Central Funds (including $5,768 from security lending) | 202,308 | |
Income before foreign taxes withheld | 8,202,581 | |
Less foreign taxes withheld | (554,249) | |
Total income | 7,648,332 | |
Expenses | ||
Management fee | $2,608,657 | |
Independent trustees' fees and expenses | 7,928 | |
Miscellaneous | 34,015 | |
Total expenses before reductions | 2,650,600 | |
Expense reductions | (50) | 2,650,550 |
Net investment income (loss) | 4,997,782 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,408,668 | |
Fidelity Central Funds | (349) | |
Foreign currency transactions | 63,046 | |
Futures contracts | (150,762) | |
Total net realized gain (loss) | 12,320,603 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 16,567,271 | |
Fidelity Central Funds | (42) | |
Assets and liabilities in foreign currencies | 5,238 | |
Futures contracts | (171,069) | |
Total change in net unrealized appreciation (depreciation) | 16,401,398 | |
Net gain (loss) | 28,722,001 | |
Net increase (decrease) in net assets resulting from operations | $33,719,783 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended February 28, 2018 (Unaudited) | Six months ended August 31, 2017 | Year ended February 28, 2017 | |
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income (loss) | $4,997,782 | $7,927,209 | $4,621,784 |
Net realized gain (loss) | 12,320,603 | 8,731,504 | (4,295,521) |
Change in net unrealized appreciation (depreciation) | 16,401,398 | 35,923,235 | 28,813,632 |
Net increase (decrease) in net assets resulting from operations | 33,719,783 | 52,581,948 | 29,139,895 |
Distributions to shareholders from net investment income | (11,637,255) | – | (4,288,268) |
Distributions to shareholders from net realized gain | (3,694,366) | – | (392,264) |
Total distributions | (15,331,621) | – | (4,680,532) |
Share transactions | |||
Proceeds from sales of shares | 669,707,875 | 290,120,502 | 151,532,441 |
Reinvestment of distributions | 14,714,614 | – | 4,408,489 |
Cost of shares redeemed | (143,713,825) | (37,899,931) | (61,528,135) |
Net increase (decrease) in net assets resulting from share transactions | 540,708,664 | 252,220,571 | 94,412,795 |
Redemption fees | 19,770 | 7,280 | 5,161 |
Total increase (decrease) in net assets | 559,116,596 | 304,809,799 | 118,877,319 |
Net Assets | |||
Beginning of period | 576,385,657 | 271,575,858 | 152,698,539 |
End of period | $1,135,502,253 | $576,385,657 | $271,575,858 |
Other Information | |||
Undistributed net investment income end of period | $1,009,725 | $7,649,198 | $1,283 |
Shares | |||
Sold | 65,468,857 | 31,303,660 | 18,467,381 |
Issued in reinvestment of distributions | 1,478,856 | – | 542,369 |
Redeemed | (14,141,472) | (4,088,208) | (7,586,650) |
Net increase (decrease) | 52,806,241 | 27,215,452 | 11,423,100 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity International Enhanced Index Fund
Six months ended (Unaudited) February 28, | Years endedAugust 31, | ||||||
2018 | 2017 A | 2017B | 2016 C | 2015B | 2014B | 2013B | |
Selected Per–Share Data | |||||||
Net asset value, beginning of period | $9.73 | $8.48 | $7.42 | $8.77 | $8.85 | $7.45 | $6.95 |
Income from Investment Operations | |||||||
Net investment income (loss)D | .06 | .18 | .20 | .19 | .20 | .28E | .21 |
Net realized and unrealized gain (loss) | .52 | 1.07 | 1.08 | (1.38) | (.10) | 1.29 | .52 |
Total from investment operations | .58 | 1.25 | 1.28 | (1.19) | .10 | 1.57 | .73 |
Distributions from net investment income | (.13) | – | (.20) | (.16) | (.16) | (.15) | (.21) |
Distributions from net realized gain | (.04) | – | (.02) | –F | (.02) | (.01) | (.02) |
Total distributions | (.17) | – | (.22) | (.16) | (.18) | (.17)G | (.23) |
Redemption fees added to paid in capitalD,F | – | – | – | – | – | – | – |
Net asset value, end of period | $10.14 | $9.73 | $8.48 | $7.42 | $8.77 | $8.85 | $7.45 |
Total ReturnH,I | 5.95% | 14.74% | 17.31% | (13.71)% | 1.25% | 21.21% | 10.64% |
Ratios to Average Net AssetsJ,K | |||||||
Expenses before reductions | .60%L | .59%L | .62% | .62% | .62% | .62% | .62% |
Expenses net of fee waivers, if any | .60%L | .59%L | .62% | .62% | .62% | .62% | .62% |
Expenses net of all reductions | .60%L | .59%L | .62% | .62% | .62% | .62% | .62% |
Net investment income (loss) | 1.13%L | 3.86%L | 2.53% | 2.27% | 2.31% | 3.40%E | 3.04% |
Supplemental Data | |||||||
Net assets, end of period (000 omitted) | $1,135,502 | $576,386 | $271,576 | $152,699 | $105,360 | $44,828 | $30,412 |
Portfolio turnover rateM | 61%L | 70%L | 75% | 77% | 75% | 63% | 56% |
A For the six month period ended August 31. The Fund changed its fiscal year end from February 28 to August 31, effective August 31, 2017.
B For the year ended February 28.
C For the year ended February 29.
D Calculated based on average shares outstanding during the period.
E Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.64%.
F Amount represents less than $.005 per share.
G Total distributions of $.17 per share is comprised of distributions from net investment income of $.153 and distributions from net realized gain of $.013 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended February 28, 2018
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 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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. If an unaffiliated open-end mutual fund's NAV is unavailable, shares of that fund may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and is categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of February 28, 2018, including information on transfers between Levels 1 and 2 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and includes proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, futures contracts, partnerships, market discount, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |
Fidelity Large Cap Growth Enhanced Index Fund | $806,970,860 | $286,038,632 | $(16,739,665) | $269,298,967 |
Fidelity Large Cap Value Enhanced Index Fund | 3,161,197,906 | 529,471,995 | (104,420,943) | 425,051,052 |
Fidelity Large Cap Core Enhanced Index Fund | 509,581,423 | 156,475,914 | (11,890,222) | 144,585,692 |
Fidelity Mid Cap Enhanced Index Fund | 1,177,073,533 | 205,686,781 | (42,322,305) | 163,364,476 |
Fidelity International Enhanced Index Fund | 1,070,175,483 | 97,076,951 | (32,304,194) | 64,772,757 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | ||
2018 | Total with expiration | |
Fidelity International Enhanced Index Fund | (545,048) | (545,048) |
No expiration | ||||
Short-term | Long-term | Total no expiration | Total capital loss carryforward | |
Fidelity International Enhanced Index Fund | (1,268,901) | (1,277,798) | (2,546,699) | (3,091,746) |
Short Term Trading (Redemption) Fees. Shares held by investors of Fidelity International Enhanced Index Fund less than 30 days may be subject to a redemption fee equal to 1.00%, of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Funds and accounted for as an addition to paid in capital. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
Restricted Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
3. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Funds' investment objective allows the Funds to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Funds used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Funds may not achieve their objectives.
The Funds' use of derivatives increased or decreased their exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Funds will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Funds. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Funds, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period as presented in the Statement of Operations.
Primary Risk Exposure / Derivative Type | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) |
Fidelity Large Cap Growth Enhanced Index Fund | ||
Equity Risk | ||
Futures Contracts | 788,874 | 107,959 |
Fidelity Large Cap Value Enhanced Index Fund | ||
Equity Risk | ||
Futures Contracts | 3,142,838 | 304,152 |
Fidelity Large Cap Core Enhanced Index Fund | ||
Equity Risk | ||
Futures Contracts | 1,484,502 | 25,248 |
Fidelity Mid Cap Enhanced Index Fund | ||
Equity Risk | ||
Futures Contracts | 984,190 | (58,485) |
Fidelity International Enhanced Index Fund | ||
Equity Risk | ||
Futures Contracts | (150,762) | (171,069) |
A summary of the value of derivatives by primary risk exposure as of period end is included at the end of the Schedule of Investments.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Funds used futures contracts to manage their exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
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 | 504,666,417 | 504,230,573 |
Fidelity Large Cap Value Enhanced Index Fund | 1,658,955,568 | 1,492,074,603 |
Fidelity Large Cap Core Enhanced Index Fund | 305,567,384 | 261,652,686 |
Fidelity Mid Cap Enhanced Index Fund | 642,536,066 | 662,752,667 |
Fidelity International Enhanced Index Fund | 794,986,534 | 262,319,311 |
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR Co., Inc. (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. Each Fund pays an all-inclusive management fee based on the annual rates noted in the following table; and the investment adviser pays all ordinary operating expenses of each Fund, except fees and expenses of the independent Trustees and certain miscellaneous expenses such as proxy and shareholder meeting expenses. The management fees are reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees.
Fidelity Large Cap Growth Enhanced Index Fund | .39% |
Fidelity Large Cap Value Enhanced Index Fund | .39% |
Fidelity Large Cap Core Enhanced Index Fund | .39% |
Fidelity Mid Cap Enhanced Index Fund | .59% |
Fidelity International Enhanced Index Fund | .59% |
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 the investment adviser for providing these services.
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Investments in Fidelity Central Funds.
The Funds invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Fidelity Money Market Central Funds are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Large Cap Growth Enhanced Index Fund | $1,370 |
Fidelity Large Cap Value Enhanced Index Fund | 4,489 |
Fidelity Large Cap Core Enhanced Index Fund | 794 |
Fidelity Mid Cap Enhanced Index Fund | 1,752 |
Fidelity International Enhanced Index Fund | 918 |
During the period, the Funds did not borrow on this line of credit.
8. Security Lending.
Certain Funds lend portfolio securities through a lending agent 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. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Expense reduction | |
Fidelity Large Cap Growth Enhanced Index Fund | $277 |
Fidelity Large Cap Value Enhanced Index Fund | 1,270 |
Fidelity Large Cap Core Enhanced Index Fund | 487 |
Fidelity Mid Cap Enhanced Index Fund | 993 |
Fidelity International Enhanced Index Fund | 50 |
10. 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.
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, 2017 to February 28, 2018).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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 Expense Ratio--A | Beginning Account Value September 1, 2017 | Ending Account Value February 28, 2018 | Expenses Paid During Period-B September 1, 2017 to February 28, 2018 | |
Fidelity Large Cap Growth Enhanced Index Fund | .40% | |||
Actual | $1,000.00 | $1,154.00 | $2.14 | |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.01 | |
Fidelity Large Cap Value Enhanced Index Fund | .40% | |||
Actual | $1,000.00 | $1,095.30 | $2.08 | |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.01 | |
Fidelity Large Cap Core Enhanced Index Fund | .40% | |||
Actual | $1,000.00 | $1,132.00 | $2.11 | |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.01 | |
Fidelity Mid Cap Enhanced Index Fund | .60% | |||
Actual | $1,000.00 | $1,106.30 | $3.13 | |
Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 | |
Fidelity International Enhanced Index Fund | .60% | |||
Actual | $1,000.00 | $1,059.50 | $3.06 | |
Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
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
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with FMR Co., Inc. (FMRC), an affiliate of Fidelity Management & Research Company (FMR), and the sub-advisory agreement (together, the Advisory Contracts) for each fund, including the fund's sub-advisory agreement with Geode Capital Management, LLC (Geode). FMR and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) — Operations, Audit, Fair Valuation, and Governance and Nominating — each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2018 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (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 expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered that the management contract currently in place for each fund was effective on April 1, 2017 after being approved by shareholders. The Board noted that this management contract implemented a new all-inclusive management fee structure whereby FMRC pays all other expenses of each fund with limited exceptions (New Fee Structure).
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, 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, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with representatives of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's and Geode's investment staffs, including their size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's and Geode's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's and Geode's investment professionals have sufficient access to information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously. Additionally, in its deliberations, the Board considered Fidelity's and Geode's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, 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, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for such underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) compared to peer groups, as applicable, over appropriate time periods that may include full market cycles, taking into account relevant factors, including the following: general market conditions; issuer-specific information; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for each fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2017.Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes created for the purpose of facilitating the Trustees' analysis of the competitiveness of management fees and total expenses. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison.Management Fee. The Board considered two proprietary management fee comparisons forthe 12-month periods ended June 30 shown in basis points (BP) in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s and the number of funds in the Total Mapped Group are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee rate ranked, is also included in the charts and considered by the Board. Because the vast majority of competitor funds' management fees do not cover non-management expenses, for a more meaningful comparison of management fees, each fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMRC for non-management expenses (including transfer agent fees, pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board considered that net management fees can vary from year to year because of differences in non-management expenses, and that non-management expenses may exceed the fund's management fee and result in a negative net management fee.Fidelity International Enhanced Index Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001589/img363658300.jpg)
Fidelity Large Cap Core Enhanced Index Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001589/img363658391.jpg)
Fidelity Large Cap Growth Enhanced Index Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001589/img363658591.jpg)
Fidelity Large Cap Value Enhanced Index Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001589/img363658681.jpg)
Fidelity Mid Cap Enhanced Index Fund
![](https://capedge.com/proxy/N-CSRS/0001379491-18-001589/img363658773.jpg)
Proxy Voting Results
A special meeting of shareholders was held on December 8, 2017. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
James C. Curvey | ||
Affirmative | 5,014,365,315.80 | 94.427 |
Withheld | 295,993,797.41 | 5.573 |
TOTAL | 5,310,359,113.21 | 100.000 |
Dennis J. Dirks | ||
Affirmative | 5,052,634,760.68 | 95.147 |
Withheld | 257,724,352.53 | 4.853 |
TOTAL | 5,310,359,113.21 | 100.000 |
Donald F. Donahue | ||
Affirmative | 5,064,743,894.68 | 95.375 |
Withheld | 245,615,218.53 | 4.625 |
TOTAL | 5,310,359,113.21 | 100.000 |
Alan J. Lacy | ||
Affirmative | 5,056,278,999.15 | 95.216 |
Withheld | 254,080,114.06 | 4.784 |
TOTAL | 5,310,359,113.21 | 100.00 |
Ned C. Lautenbach | ||
Affirmative | 5,025,209,677.81 | 94.631 |
Withheld | 285,149,435.40 | 5.369 |
TOTAL | 5,310,359,113.21 | 100.000 |
Joseph Mauriello | ||
Affirmative | 5,039,532,996.03 | 94.901 |
Withheld | 270,826,117.18 | 5.099 |
TOTAL | 5,310,359,113.21 | 100.000 |
Charles S. Morrison | ||
Affirmative | 5,069,032,147.39 | 95.456 |
Withheld | 241,326,965.82 | 4.544 |
TOTAL | 5,310,359,113.21 | 100.000 |
Cornelia M. Small | ||
Affirmative | 5,038,003,098.83 | 94.872 |
Withheld | 272,356,014.38 | 5.128 |
TOTAL | 5,310,359,113.21 | 100.000 |
Garnett A. Smith | ||
Affirmative | 5,045,917,150.32 | 95.021 |
Withheld | 264,441,962.89 | 4.979 |
TOTAL | 5,310,359,113.21 | 100.000 |
David M. Thomas | ||
Affirmative | 5,054,154,708.47 | 95.176 |
Withheld | 256,204,404.74 | 4.824 |
TOTAL | 5,310,359,113.21 | 100.000 |
Michael E. Wiley | ||
Affirmative | 5,063,571,773.15 | 95.353 |
Withheld | 246,787,340.06 | 4.647 |
TOTAL | 5,310,359,113.21 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
GEI-SANN-0418
1.855142.110
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Commonwealth Trust II’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Commonwealth Trust II’s (the “Trust”) disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Commonwealth Trust II
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | April 24, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | April 24, 2018 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | April 24, 2018 |