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)
William C. Coffey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | February 28 |
Date of reporting period: | August 31, 2018 |
Item 1.
Reports to Stockholders
Fidelity® Small Cap Enhanced Index Fund Semi-Annual Report August 31, 2018 |
Contents
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2018
% of fund's net assets | |
Haemonetics Corp. | 0.8 |
Insperity, Inc. | 0.7 |
CACI International, Inc. Class A | 0.7 |
Essent Group Ltd. | 0.7 |
EMCOR Group, Inc. | 0.7 |
Louisiana-Pacific Corp. | 0.7 |
Maximus, Inc. | 0.7 |
Hancock Whitney Corp. | 0.7 |
Yelp, Inc. | 0.7 |
Delek U.S. Holdings, Inc. | 0.7 |
7.1 |
Top Market Sectors as of August 31, 2018
% of fund's net assets | |
Information Technology | 16.8 |
Health Care | 16.6 |
Financials | 16.2 |
Industrials | 14.4 |
Consumer Discretionary | 13.7 |
Materials | 6.1 |
Real Estate | 4.6 |
Energy | 3.9 |
Consumer Staples | 3.6 |
Utilities | 2.1 |
Asset Allocation (% of fund's net assets)
As of August 31, 2018* | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 6.6%
Schedule of Investments August 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 13.7% | |||
Auto Components - 1.6% | |||
American Axle & Manufacturing Holdings, Inc. (a) | 283,746 | $5,025,142 | |
Cooper-Standard Holding, Inc. (a) | 24,535 | 3,396,380 | |
Tenneco, Inc. | 111,475 | 4,770,015 | |
Tower International, Inc. | 4,415 | 149,227 | |
13,340,764 | |||
Distributors - 0.2% | |||
Core-Mark Holding Co., Inc. | 53,955 | 1,929,970 | |
Diversified Consumer Services - 1.0% | |||
American Public Education, Inc. (a) | 4,895 | 170,101 | |
Chegg, Inc. (a) | 127,060 | 4,114,203 | |
K12, Inc. (a) | 241,426 | 3,998,015 | |
Weight Watchers International, Inc. (a)(b) | 4,622 | 346,188 | |
8,628,507 | |||
Hotels, Restaurants & Leisure - 0.6% | |||
Bloomin' Brands, Inc. | 30,747 | 593,417 | |
Brinker International, Inc. | 36,316 | 1,608,072 | |
ILG, Inc. | 13,396 | 457,205 | |
Penn National Gaming, Inc. (a) | 67,331 | 2,320,226 | |
4,978,920 | |||
Household Durables - 2.5% | |||
Bassett Furniture Industries, Inc. | 12,583 | 293,813 | |
Flexsteel Industries, Inc. | 41,534 | 1,481,933 | |
GoPro, Inc. Class A (a)(b) | 99,038 | 634,834 | |
Helen of Troy Ltd. (a) | 30,491 | 3,626,904 | |
KB Home | 175,786 | 4,368,282 | |
La-Z-Boy, Inc. | 128,488 | 4,272,226 | |
M.D.C. Holdings, Inc. | 17,332 | 549,424 | |
Taylor Morrison Home Corp. (a) | 221,356 | 4,307,588 | |
William Lyon Homes, Inc. (a) | 60,610 | 1,186,138 | |
20,721,142 | |||
Internet & Direct Marketing Retail - 0.7% | |||
Liberty Expedia Holdings, Inc. (a) | 5,679 | 262,086 | |
Liberty TripAdvisor Holdings, Inc. (a) | 97,299 | 1,542,189 | |
Shutterfly, Inc. (a)(b) | 56,721 | 4,406,087 | |
6,210,362 | |||
Leisure Products - 0.8% | |||
Johnson Outdoors, Inc. Class A | 41,501 | 4,203,221 | |
MCBC Holdings, Inc. (a) | 70,629 | 1,947,242 | |
Nautilus, Inc. (a) | 20,667 | 302,772 | |
6,453,235 | |||
Media - 0.2% | |||
A.H. Belo Corp. Class A | 12,427 | 54,679 | |
Entravision Communication Corp. Class A | 78,784 | 413,616 | |
New Media Investment Group, Inc. | 27,248 | 433,243 | |
Saga Communications, Inc. Class A | 354 | 13,452 | |
The McClatchy Co. Class A (a)(b) | 5,222 | 46,998 | |
World Wrestling Entertainment, Inc. Class A | 7,185 | 628,041 | |
1,590,029 | |||
Specialty Retail - 3.6% | |||
Aaron's, Inc. Class A | 74,096 | 3,684,053 | |
Abercrombie & Fitch Co. Class A | 140,770 | 3,050,486 | |
Asbury Automotive Group, Inc. (a) | 4,497 | 335,027 | |
Ascena Retail Group, Inc. (a)(b) | 65,619 | 300,535 | |
Bed Bath & Beyond, Inc. | 122,444 | 2,196,645 | |
Chico's FAS, Inc. | 408,385 | 3,724,471 | |
Conn's, Inc. (a)(b) | 40,094 | 1,643,854 | |
DSW, Inc. Class A | 101,648 | 3,380,812 | |
Express, Inc. (a) | 2,160 | 24,235 | |
Group 1 Automotive, Inc. | 7,709 | 594,287 | |
Haverty Furniture Companies, Inc. | 43,265 | 956,157 | |
Hibbett Sports, Inc. (a)(b) | 9,503 | 195,287 | |
Office Depot, Inc. | 1,250,728 | 4,189,939 | |
Party City Holdco, Inc. (a)(b) | 68,890 | 1,057,462 | |
Shoe Carnival, Inc. | 20,385 | 906,317 | |
Tailored Brands, Inc. (b) | 164,033 | 3,861,337 | |
Tilly's, Inc. | 30,312 | 712,938 | |
30,813,842 | |||
Textiles, Apparel & Luxury Goods - 2.5% | |||
Crocs, Inc. (a) | 242,792 | 5,016,083 | |
Deckers Outdoor Corp. (a) | 47,075 | 5,735,618 | |
Fossil Group, Inc. (a)(b) | 193,504 | 4,386,736 | |
Movado Group, Inc. | 103,524 | 4,410,122 | |
Newmark Group, Inc. | 98,300 | 1,263,155 | |
Oxford Industries, Inc. | 2,723 | 253,484 | |
Rocky Brands, Inc. | 10,492 | 316,334 | |
21,381,532 | |||
TOTAL CONSUMER DISCRETIONARY | 116,048,303 | ||
CONSUMER STAPLES - 3.6% | |||
Beverages - 0.6% | |||
Boston Beer Co., Inc. Class A (a) | 16,475 | 4,994,396 | |
Food & Staples Retailing - 1.2% | |||
Ingles Markets, Inc. Class A | 73,053 | 2,626,255 | |
Natural Grocers by Vitamin Cottage, Inc. (a)(b) | 35,069 | 680,689 | |
Performance Food Group Co. (a) | 18,458 | 610,960 | |
SpartanNash Co. | 98,163 | 2,095,780 | |
United Natural Foods, Inc. (a) | 97,881 | 3,475,754 | |
Village Super Market, Inc. Class A | 8,470 | 247,155 | |
Weis Markets, Inc. (b) | 16,000 | 745,440 | |
10,482,033 | |||
Food Products - 0.3% | |||
John B. Sanfilippo & Son, Inc. | 1,152 | 84,177 | |
Sanderson Farms, Inc. | 23,216 | 2,455,324 | |
2,539,501 | |||
Personal Products - 1.4% | |||
Edgewell Personal Care Co.(a) | 20,102 | 1,135,160 | |
MediFast, Inc. | 24,349 | 5,569,834 | |
USANA Health Sciences, Inc. (a) | 37,477 | 4,945,090 | |
11,650,084 | |||
Tobacco - 0.1% | |||
Turning Point Brands, Inc. | 19,903 | 669,935 | |
TOTAL CONSUMER STAPLES | 30,335,949 | ||
ENERGY - 3.9% | |||
Energy Equipment & Services - 0.6% | |||
Archrock, Inc. | 44,525 | 563,241 | |
ION Geophysical Corp. (a) | 3,374 | 60,563 | |
Mammoth Energy Services, Inc. | 5,764 | 158,395 | |
Matrix Service Co. (a) | 33,239 | 694,695 | |
McDermott International, Inc. (a)(b) | 193,084 | 3,734,245 | |
SEACOR Holdings, Inc. (a) | 6,376 | 328,045 | |
5,539,184 | |||
Oil, Gas & Consumable Fuels - 3.3% | |||
Adams Resources & Energy, Inc. | 2,798 | 128,428 | |
Arch Coal, Inc. | 40,967 | 3,632,544 | |
California Resources Corp. (a)(b) | 28,479 | 1,183,018 | |
CONSOL Energy, Inc. (a) | 1,745 | 74,861 | |
CVR Energy, Inc. | 95,009 | 3,615,092 | |
Delek U.S. Holdings, Inc. | 105,289 | 5,738,251 | |
Denbury Resources, Inc. (a)(b) | 72,353 | 403,006 | |
Evolution Petroleum Corp. | 17,110 | 171,956 | |
Gulfport Energy Corp. (a) | 5,588 | 65,715 | |
Oasis Petroleum, Inc. (a) | 1,170 | 15,748 | |
Overseas Shipholding Group, Inc. (a) | 221,685 | 760,380 | |
Peabody Energy Corp. | 120,803 | 4,990,372 | |
Renewable Energy Group, Inc. (a) | 19,087 | 514,395 | |
Southwestern Energy Co. (a) | 495,995 | 2,787,492 | |
W&T Offshore, Inc. (a) | 537,898 | 3,641,569 | |
27,722,827 | |||
TOTAL ENERGY | 33,262,011 | ||
FINANCIALS - 16.2% | |||
Banks - 6.7% | |||
BancFirst Corp. | 66,342 | 4,232,620 | |
Banner Corp. | 2,744 | 176,522 | |
Berkshire Hills Bancorp, Inc. | 5,238 | 221,306 | |
Boston Private Financial Holdings, Inc. | 8,677 | 125,383 | |
Cadence Bancorp Class A | 18,595 | 525,309 | |
Cambridge Bancorp | 1,884 | 168,675 | |
Capital City Bank Group, Inc. | 2,133 | 52,301 | |
Cathay General Bancorp | 124,066 | 5,247,992 | |
Community Bank System, Inc. | 4,778 | 315,969 | |
Community Trust Bancorp, Inc. | 9,261 | 457,493 | |
Fidelity Southern Corp. | 31,994 | 777,454 | |
Financial Institutions, Inc. | 15,378 | 496,709 | |
First Bancorp, North Carolina | 7,331 | 305,849 | |
First Bancorp, Puerto Rico (a) | 540,532 | 4,729,655 | |
First Financial Bancorp, Ohio | 30,198 | 948,217 | |
First Financial Bankshares, Inc. (b) | 13,037 | 787,435 | |
First Interstate Bancsystem, Inc. | 36,835 | 1,710,986 | |
First Mid-Illinois Bancshares, Inc. | 1,586 | 65,169 | |
First Midwest Bancorp, Inc., Delaware | 7,560 | 205,481 | |
First Savings Financial Group, Inc. | 615 | 43,708 | |
Fulton Financial Corp. | 279,905 | 5,094,271 | |
Great Southern Bancorp, Inc. | 27,915 | 1,655,360 | |
Great Western Bancorp, Inc. | 6,618 | 288,148 | |
Hancock Whitney Corp. | 112,085 | 5,777,982 | |
Hanmi Financial Corp. | 14,483 | 378,006 | |
Hilltop Holdings, Inc. | 30,553 | 633,975 | |
IBERIABANK Corp. | 65,434 | 5,669,856 | |
International Bancshares Corp. | 101,874 | 4,772,797 | |
Investors Bancorp, Inc. | 179,560 | 2,298,368 | |
Lakeland Financial Corp. | 1,424 | 70,160 | |
LegacyTexas Financial Group, Inc. | 24,549 | 1,135,882 | |
MB Financial, Inc. | 455 | 22,049 | |
MVB Financial Corp. | 2,294 | 41,843 | |
Northeast Bancorp | 4,514 | 98,405 | |
OFG Bancorp (b) | 28,363 | 459,481 | |
Old National Bancorp, Indiana | 38,544 | 782,443 | |
Peapack-Gladstone Financial Corp. | 7,496 | 250,441 | |
Renasant Corp. | 11,846 | 553,090 | |
Republic Bancorp, Inc., Kentucky Class A | 6,483 | 315,139 | |
Sandy Spring Bancorp, Inc. | 3,809 | 148,551 | |
Sierra Bancorp | 11,792 | 349,869 | |
The Bank of NT Butterfield & Son Ltd. | 10,164 | 537,066 | |
TowneBank | 18,468 | 602,057 | |
UMB Financial Corp. | 27,938 | 2,102,055 | |
Valley National Bancorp | 19,128 | 230,492 | |
WesBanco, Inc. | 3,927 | 193,797 | |
56,055,816 | |||
Capital Markets - 2.6% | |||
Artisan Partners Asset Management, Inc. | 144,230 | 4,781,225 | |
Blucora, Inc. (a) | 25,989 | 940,802 | |
Houlihan Lokey | 18,346 | 862,812 | |
INTL FCStone, Inc. (a) | 68,587 | 3,824,411 | |
Investment Technology Group, Inc. | 37,389 | 818,071 | |
Manning & Napier, Inc. Class A | 13,484 | 39,104 | |
Moelis & Co. Class A | 32,564 | 1,890,340 | |
Oppenheimer Holdings, Inc. Class A (non-vtg.) | 23,647 | 737,786 | |
Piper Jaffray Companies | 41,281 | 3,178,637 | |
Waddell & Reed Financial, Inc. Class A (b) | 240,695 | 4,818,714 | |
21,891,902 | |||
Consumer Finance - 1.5% | |||
CURO Group Holdings Corp. (a) | 102,293 | 3,156,762 | |
Enova International, Inc. (a) | 126,337 | 4,194,388 | |
Green Dot Corp. Class A (a) | 20,888 | 1,789,475 | |
Nelnet, Inc. Class A | 70,351 | 4,055,735 | |
13,196,360 | |||
Diversified Financial Services - 0.2% | |||
Banco Latinoamericano de Comercio Exterior SA Series E | 58,171 | 1,202,395 | |
Marlin Business Services Corp. | 35,909 | 1,026,997 | |
2,229,392 | |||
Insurance - 1.3% | |||
EMC Insurance Group | 2,006 | 51,514 | |
Fednat Holding Co. | 34,994 | 920,342 | |
Health Insurance Innovations, Inc. (a)(b) | 26,221 | 1,387,091 | |
Kemper Corp. | 40,125 | 3,264,169 | |
National General Holdings Corp. | 22,710 | 620,210 | |
Primerica, Inc. | 646 | 78,974 | |
Selective Insurance Group, Inc. | 28,254 | 1,813,907 | |
Universal Insurance Holdings, Inc. | 65,139 | 2,905,199 | |
11,041,406 | |||
Mortgage Real Estate Investment Trusts - 0.4% | |||
AG Mortgage Investment Trust, Inc. | 5,070 | 95,316 | |
Apollo Commercial Real Estate Finance, Inc. (b) | 59,092 | 1,148,158 | |
Cherry Hill Mortgage Investment Corp. | 66,427 | 1,235,542 | |
Ladder Capital Corp. Class A | 34,646 | 601,801 | |
3,080,817 | |||
Real Estate Management & Development - 0.6% | |||
The RMR Group, Inc. | 50,779 | 4,796,077 | |
Thrifts & Mortgage Finance - 2.9% | |||
Essent Group Ltd. (a) | 138,805 | 6,018,585 | |
Farmer Mac Class C (non-vtg.) | 13,742 | 1,059,096 | |
First Defiance Financial Corp. | 11,912 | 381,065 | |
Lendingtree, Inc. (a)(b) | 19,689 | 4,988,208 | |
NMI Holdings, Inc. (a) | 24,023 | 518,897 | |
Northwest Bancshares, Inc. | 204,203 | 3,720,579 | |
Radian Group, Inc. | 120,402 | 2,447,773 | |
Walker & Dunlop, Inc. | 80,118 | 4,366,431 | |
Waterstone Financial, Inc. | 58,371 | 986,470 | |
24,487,104 | |||
TOTAL FINANCIALS | 136,778,874 | ||
HEALTH CARE - 16.6% | |||
Biotechnology - 4.9% | |||
ACADIA Pharmaceuticals, Inc. (a)(b) | 7,053 | 100,294 | |
Acceleron Pharma, Inc. (a) | 6,151 | 332,277 | |
Acorda Therapeutics, Inc. (a) | 32,042 | 922,810 | |
Akebia Therapeutics, Inc. (a) | 57,728 | 473,947 | |
AMAG Pharmaceuticals, Inc. (a)(b) | 32,174 | 785,046 | |
Amicus Therapeutics, Inc. (a)(b) | 43,121 | 581,271 | |
AnaptysBio, Inc. (a) | 1,967 | 174,355 | |
Applied Genetic Technologies Corp. (a) | 3,002 | 13,359 | |
Arbutus Biopharma Corp. (a) | 36,999 | 336,691 | |
Ardelyx, Inc. (a) | 100,734 | 433,156 | |
Arena Pharmaceuticals, Inc. (a) | 7,240 | 281,202 | |
ArQule, Inc. (a) | 96,203 | 637,826 | |
Array BioPharma, Inc. (a) | 102,414 | 1,594,586 | |
Arrowhead Pharmaceuticals, Inc. (a)(b) | 8,024 | 118,434 | |
Atara Biotherapeutics, Inc. (a)(b) | 4,395 | 179,975 | |
Audentes Therapeutics, Inc. (a) | 12,933 | 470,761 | |
BioCryst Pharmaceuticals, Inc. (a) | 13,095 | 93,760 | |
Blueprint Medicines Corp. (a) | 9,251 | 709,274 | |
CareDx, Inc. (a) | 438 | 10,648 | |
Catalyst Biosciences, Inc. (a) | 27,403 | 299,515 | |
ChemoCentryx, Inc. (a) | 16,138 | 212,699 | |
Chimerix, Inc. (a) | 18,112 | 72,267 | |
Clovis Oncology, Inc. (a) | 5,803 | 207,457 | |
Concert Pharmaceuticals, Inc. (a) | 31,530 | 497,228 | |
CTI BioPharma Corp. (a) | 74,879 | 140,773 | |
CytomX Therapeutics, Inc. (a) | 25,385 | 570,909 | |
Dyax Corp. rights 12/31/19 (a)(c) | 29,085 | 116,340 | |
Eagle Pharmaceuticals, Inc. (a)(b) | 1,341 | 92,703 | |
Editas Medicine, Inc. (a) | 4,010 | 131,648 | |
Emergent BioSolutions, Inc. (a) | 25,219 | 1,563,578 | |
Enanta Pharmaceuticals, Inc. (a) | 10,538 | 958,220 | |
Esperion Therapeutics, Inc. (a) | 214 | 10,591 | |
FibroGen, Inc. (a) | 27,347 | 1,672,269 | |
Five Prime Therapeutics, Inc. (a) | 8,195 | 114,730 | |
Genomic Health, Inc. (a) | 19,197 | 1,174,280 | |
Global Blood Therapeutics, Inc. (a)(b) | 9,912 | 485,192 | |
Halozyme Therapeutics, Inc. (a)(b) | 68,753 | 1,265,743 | |
Heron Therapeutics, Inc. (a) | 27,790 | 1,071,305 | |
ImmunoGen, Inc. (a) | 59,120 | 602,433 | |
Immunomedics, Inc. (a)(b) | 31,401 | 840,291 | |
Insmed, Inc. (a)(b) | 11,162 | 222,459 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 4,101 | 458,492 | |
Iovance Biotherapeutics, Inc. (a) | 6,160 | 109,032 | |
Ironwood Pharmaceuticals, Inc. Class A (a)(b) | 72,473 | 1,394,381 | |
Karyopharm Therapeutics, Inc. (a) | 4,915 | 103,461 | |
Kindred Biosciences, Inc. (a) | 23,121 | 344,503 | |
Kura Oncology, Inc. (a)(b) | 9,890 | 202,745 | |
Ligand Pharmaceuticals, Inc. Class B (a)(b) | 5,917 | 1,536,586 | |
Loxo Oncology, Inc. (a) | 12,054 | 2,036,885 | |
Madrigal Pharmaceuticals, Inc. (a)(b) | 2,377 | 568,602 | |
Momenta Pharmaceuticals, Inc. (a) | 14,514 | 384,621 | |
Myriad Genetics, Inc. (a) | 36,826 | 1,833,567 | |
Natera, Inc. (a) | 24,837 | 686,495 | |
NewLink Genetics Corp. (a) | 92,522 | 286,818 | |
Novavax, Inc. (a)(b) | 426,473 | 665,298 | |
Opko Health, Inc. (a)(b) | 46,244 | 273,764 | |
Palatin Technologies, Inc. (a)(b) | 272,760 | 275,488 | |
PDL BioPharma, Inc. (a)(b) | 191,761 | 464,062 | |
Pieris Pharmaceuticals, Inc. (a)(b) | 71,586 | 396,586 | |
Portola Pharmaceuticals, Inc. (a)(b) | 9,123 | 272,322 | |
Prothena Corp. PLC (a)(b) | 11,723 | 178,424 | |
PTC Therapeutics, Inc. (a) | 28,879 | 1,205,409 | |
Puma Biotechnology, Inc. (a) | 1,076 | 47,290 | |
REGENXBIO, Inc. (a) | 16,427 | 1,157,282 | |
Repligen Corp. (a)(b) | 6,480 | 355,622 | |
Retrophin, Inc. (a) | 16,858 | 534,230 | |
Sangamo Therapeutics, Inc. (a)(b) | 34,918 | 637,254 | |
Spark Therapeutics, Inc. (a)(b) | 4,674 | 287,965 | |
Spectrum Pharmaceuticals, Inc. (a) | 1,019 | 21,939 | |
TG Therapeutics, Inc. (a)(b) | 20,916 | 265,633 | |
Ultragenyx Pharmaceutical, Inc. (a) | 12,155 | 1,029,893 | |
Vanda Pharmaceuticals, Inc. (a) | 39,450 | 762,371 | |
Veracyte, Inc. (a) | 21,231 | 268,360 | |
Verastem, Inc. (a) | 37,916 | 377,643 | |
Voyager Therapeutics, Inc. (a)(b) | 21,193 | 460,736 | |
Xencor, Inc. (a) | 6,746 | 281,915 | |
XOMA Corp. (a) | 18,982 | 355,533 | |
Zafgen, Inc. (a) | 49,538 | 471,602 | |
41,565,111 | |||
Health Care Equipment & Supplies - 4.3% | |||
Accuray, Inc. (a) | 20,895 | 83,580 | |
Angiodynamics, Inc. (a) | 187,480 | 4,203,302 | |
CONMED Corp. | 4,050 | 325,742 | |
Haemonetics Corp. (a) | 60,773 | 6,784,689 | |
Integer Holdings Corp. (a) | 25,424 | 2,031,378 | |
IntriCon Corp. (a) | 29,037 | 2,145,834 | |
LivaNova PLC (a) | 29,710 | 3,730,091 | |
Meridian Bioscience, Inc. | 236,404 | 3,711,543 | |
Novocure Ltd. (a) | 7,954 | 358,328 | |
Orthofix International NV (a) | 75,717 | 4,055,403 | |
Quidel Corp. (a) | 21,756 | 1,672,601 | |
RTI Biologics, Inc. (a) | 3,814 | 17,068 | |
Staar Surgical Co. (a) | 54,771 | 2,612,577 | |
SurModics, Inc. (a) | 58,482 | 4,605,458 | |
36,337,594 | |||
Health Care Providers & Services - 3.8% | |||
Amedisys, Inc. (a) | 44,682 | 5,585,697 | |
American Renal Associates Holdings, Inc. (a) | 6,909 | 151,653 | |
Civitas Solutions, Inc. (a) | 25,846 | 413,536 | |
Corvel Corp. (a) | 40,966 | 2,435,429 | |
G1 Therapeutics, Inc. (a)(b) | 3,132 | 190,050 | |
Magellan Health Services, Inc. (a) | 63,979 | 4,702,457 | |
National Healthcare Corp. | 56,653 | 4,366,247 | |
National Research Corp. Class A | 3,666 | 143,524 | |
Patterson Companies, Inc. | 13,532 | 305,147 | |
Providence Service Corp. (a) | 40,516 | 2,720,244 | |
R1 RCM, Inc. (a) | 40,123 | 400,026 | |
RadNet, Inc. (a) | 230,164 | 3,187,771 | |
Tenet Healthcare Corp. (a) | 4,599 | 155,078 | |
Tivity Health, Inc. (a)(b) | 131,133 | 4,510,975 | |
Triple-S Management Corp. (a) | 115,740 | 2,519,660 | |
31,787,494 | |||
Health Care Technology - 2.0% | |||
Allscripts Healthcare Solutions, Inc. (a) | 355,123 | 5,188,347 | |
HealthStream, Inc. | 41,393 | 1,313,400 | |
HMS Holdings Corp. (a) | 160,838 | 5,154,858 | |
Quality Systems, Inc. (a) | 217,466 | 4,977,797 | |
16,634,402 | |||
Life Sciences Tools & Services - 0.4% | |||
Cambrex Corp. (a) | 5,544 | 373,666 | |
Codexis, Inc. (a) | 29,297 | 503,908 | |
Luminex Corp. | 31,046 | 875,808 | |
Medpace Holdings, Inc. (a) | 14,605 | 873,233 | |
Syneos Health, Inc. (a) | 21,813 | 1,087,378 | |
3,713,993 | |||
Pharmaceuticals - 1.2% | |||
Aerie Pharmaceuticals, Inc. (a)(b) | 6,356 | 389,941 | |
Akorn, Inc. (a) | 12,989 | 203,797 | |
Amneal Pharmaceuticals, Inc. (a) | 14,607 | 337,422 | |
Corcept Therapeutics, Inc. (a)(b) | 7,202 | 108,174 | |
Durect Corp. (a) | 26,771 | 35,070 | |
Endo International PLC (a) | 105,538 | 1,809,977 | |
Endocyte, Inc. (a) | 2,597 | 51,213 | |
Horizon Pharma PLC (a) | 87,055 | 1,840,343 | |
Mallinckrodt PLC (a)(b) | 48,650 | 1,676,479 | |
MyoKardia, Inc. (a) | 4,230 | 260,780 | |
Pacira Pharmaceuticals, Inc. (a) | 6,036 | 284,597 | |
Phibro Animal Health Corp. Class A | 17,154 | 809,669 | |
Prestige Brands Holdings, Inc. (a)(b) | 29,323 | 1,128,936 | |
Reata Pharmaceuticals, Inc. (a) | 936 | 80,833 | |
Supernus Pharmaceuticals, Inc. (a) | 8,406 | 372,386 | |
The Medicines Company (a)(b) | 14,650 | 580,287 | |
Zogenix, Inc. (a)(b) | 6,252 | 301,972 | |
10,271,876 | |||
TOTAL HEALTH CARE | 140,310,470 | ||
INDUSTRIALS - 14.4% | |||
Aerospace & Defense - 1.1% | |||
AAR Corp. | 21,473 | 1,002,145 | |
Astronics Corp. (a) | 25,124 | 1,093,145 | |
Esterline Technologies Corp. (a) | 8,288 | 712,354 | |
KLX, Inc. (a) | 6,619 | 488,747 | |
Moog, Inc. Class A | 65,107 | 5,137,593 | |
Vectrus, Inc. (a) | 21,328 | 699,985 | |
9,133,969 | |||
Building Products - 0.5% | |||
Advanced Drain Systems, Inc. Del | 35,538 | 1,114,116 | |
CSW Industrials, Inc. (a) | 2,082 | 116,592 | |
GMS, Inc. (a) | 19,373 | 481,419 | |
NCI Building Systems, Inc. (a) | 89,386 | 1,510,623 | |
Quanex Building Products Corp. | 12,628 | 207,099 | |
Universal Forest Products, Inc. | 29,603 | 1,108,928 | |
4,538,777 | |||
Commercial Services & Supplies - 4.3% | |||
ACCO Brands Corp. | 52,514 | 651,174 | |
Brady Corp. Class A | 125,534 | 5,077,850 | |
Deluxe Corp. | 35,361 | 2,094,078 | |
Ennis, Inc. | 26,644 | 580,839 | |
Essendant, Inc. | 60,767 | 876,868 | |
Herman Miller, Inc. | 134,274 | 5,142,694 | |
Interface, Inc. | 40,468 | 953,021 | |
Kimball International, Inc. Class B | 205,640 | 3,592,531 | |
Knoll, Inc. | 26,059 | 613,429 | |
LSC Communications, Inc. | 146,890 | 1,796,465 | |
Msa Safety, Inc. | 22,661 | 2,290,800 | |
Pitney Bowes, Inc. | 150,862 | 1,095,258 | |
Quad/Graphics, Inc. | 177,051 | 4,031,451 | |
SP Plus Corp. (a) | 19,407 | 754,932 | |
Steelcase, Inc. Class A | 288,052 | 4,205,559 | |
Tetra Tech, Inc. | 15,235 | 1,063,403 | |
UniFirst Corp. | 4,965 | 919,518 | |
VSE Corp. | 13,741 | 530,128 | |
36,269,998 | |||
Construction & Engineering - 1.7% | |||
Argan, Inc. | 59,376 | 2,363,165 | |
Comfort Systems U.S.A., Inc. | 4,935 | 283,269 | |
EMCOR Group, Inc. | 74,290 | 5,950,629 | |
KBR, Inc. | 133,716 | 2,805,362 | |
Primoris Services Corp. | 128,146 | 3,211,339 | |
14,613,764 | |||
Electrical Equipment - 0.6% | |||
EnerSys | 19,523 | 1,620,214 | |
Generac Holdings, Inc. (a) | 45,648 | 2,533,008 | |
Preformed Line Products Co. | 7,003 | 572,145 | |
4,725,367 | |||
Machinery - 1.5% | |||
Alamo Group, Inc. | 14,425 | 1,374,703 | |
Altra Industrial Motion Corp. | 58,039 | 2,266,423 | |
Global Brass & Copper Holdings, Inc. | 57,800 | 2,228,190 | |
Gorman-Rupp Co. | 6,735 | 246,905 | |
Greenbrier Companies, Inc. (b) | 29,510 | 1,711,580 | |
Hillenbrand, Inc. | 4,541 | 232,272 | |
Hurco Companies, Inc. | 24,633 | 1,056,756 | |
Hyster-Yale Materials Handling Class A | 13,462 | 830,605 | |
L.B. Foster Co. Class A (a) | 4,911 | 111,725 | |
Woodward, Inc. | 31,007 | 2,497,924 | |
12,557,083 | |||
Marine - 0.1% | |||
Costamare, Inc. (b) | 103,691 | 728,948 | |
Genco Shipping & Trading Ltd. (a) | 31,010 | 425,767 | |
1,154,715 | |||
Professional Services - 3.4% | |||
Barrett Business Services, Inc. | 24,870 | 1,865,996 | |
Heidrick & Struggles International, Inc. | 80,027 | 3,537,193 | |
ICF International, Inc. | 7,146 | 583,471 | |
Insperity, Inc. | 52,174 | 6,253,054 | |
Kelly Services, Inc. Class A (non-vtg.) | 61,720 | 1,555,961 | |
Kforce, Inc. | 112,157 | 4,716,202 | |
Korn/Ferry International | 14,505 | 973,721 | |
Resources Connection, Inc. | 227,917 | 3,772,026 | |
TriNet Group, Inc. (a) | 82,025 | 4,845,217 | |
TrueBlue, Inc. (a) | 34,487 | 1,010,469 | |
29,113,310 | |||
Road & Rail - 0.1% | |||
ArcBest Corp. | 10,721 | 515,680 | |
U.S.A. Truck, Inc. (a) | 9,672 | 211,914 | |
Universal Logistics Holdings, Inc. | 1,673 | 61,232 | |
788,826 | |||
Trading Companies & Distributors - 1.1% | |||
BMC Stock Holdings, Inc. (a) | 11,416 | 256,860 | |
Kaman Corp. | 10,527 | 686,466 | |
Rush Enterprises, Inc. Class A | 99,655 | 4,281,179 | |
Systemax, Inc. | 44,061 | 1,608,227 | |
Triton International Ltd. | 53,552 | 2,023,195 | |
8,855,927 | |||
TOTAL INDUSTRIALS | 121,751,736 | ||
INFORMATION TECHNOLOGY - 16.8% | |||
Communications Equipment - 0.7% | |||
Aerohive Networks, Inc. (a) | 8,044 | 33,946 | |
Calix Networks, Inc. (a) | 25,539 | 199,204 | |
Ciena Corp. (a) | 5,167 | 163,174 | |
Communications Systems, Inc. | 7,639 | 26,125 | |
Comtech Telecommunications Corp. | 17,789 | 637,736 | |
Plantronics, Inc. | 68,309 | 4,591,731 | |
5,651,916 | |||
Electronic Equipment & Components - 4.9% | |||
Anixter International, Inc. (a) | 32,751 | 2,361,347 | |
Belden, Inc. (b) | 64,854 | 4,716,183 | |
Benchmark Electronics, Inc. | 79,553 | 2,056,445 | |
Daktronics, Inc. | 4,988 | 40,453 | |
Electro Scientific Industries, Inc. (a)(b) | 200,756 | 4,406,594 | |
ePlus, Inc. (a) | 4,411 | 457,200 | |
Fitbit, Inc. (a)(b) | 144,367 | 869,089 | |
Insight Enterprises, Inc. (a) | 55,852 | 3,079,679 | |
Kimball Electronics, Inc. (a) | 83,061 | 1,644,608 | |
PC Connection, Inc. | 8,062 | 320,061 | |
Plexus Corp. (a) | 11,598 | 734,037 | |
ScanSource, Inc. (a) | 34,206 | 1,390,474 | |
SYNNEX Corp. | 52,164 | 5,058,343 | |
Tech Data Corp. (a) | 61,472 | 4,472,088 | |
TTM Technologies, Inc. (a)(b) | 255,605 | 4,779,814 | |
Vishay Intertechnology, Inc. | 227,011 | 5,402,862 | |
41,789,277 | |||
Internet Software & Services - 2.8% | |||
AppFolio, Inc. (a) | 13,203 | 1,127,536 | |
Box, Inc. Class A (a) | 147,308 | 3,617,884 | |
Care.com, Inc. (a) | 17,498 | 339,986 | |
CarGurus, Inc. Class A (b) | 101,701 | 5,015,893 | |
DHI Group, Inc. (a) | 144,361 | 310,376 | |
Etsy, Inc. (a) | 100,147 | 4,876,157 | |
Travelzoo, Inc. (a) | 8,420 | 104,408 | |
XO Group, Inc. (a) | 21,788 | 654,947 | |
Yelp, Inc. (a) | 122,135 | 5,755,001 | |
Yext, Inc. (a) | 66,172 | 1,645,036 | |
23,447,224 | |||
IT Services - 4.1% | |||
CACI International, Inc. Class A (a) | 31,421 | 6,127,095 | |
CSG Systems International, Inc. | 110,525 | 4,128,109 | |
EVERTEC, Inc. | 182,953 | 4,400,020 | |
Hackett Group, Inc. | 2,077 | 42,516 | |
ManTech International Corp. Class A | 21,917 | 1,453,535 | |
Maximus, Inc. | 87,657 | 5,829,191 | |
Science Applications International Corp. | 48,721 | 4,395,609 | |
Sykes Enterprises, Inc. (a) | 120,166 | 3,633,820 | |
Travelport Worldwide Ltd. | 265,053 | 4,922,034 | |
34,931,929 | |||
Semiconductors & Semiconductor Equipment - 2.9% | |||
Alpha & Omega Semiconductor Ltd. (a) | 39,106 | 555,696 | |
Amkor Technology, Inc. (a) | 363,296 | 3,171,574 | |
Cabot Microelectronics Corp. | 13,153 | 1,482,738 | |
Cirrus Logic, Inc. (a) | 102,852 | 4,520,345 | |
Entegris, Inc. | 8,627 | 292,455 | |
Lattice Semiconductor Corp. (a) | 132,992 | 1,089,204 | |
Nanometrics, Inc. (a) | 46,734 | 2,047,417 | |
Rambus, Inc. (a) | 249,813 | 3,052,715 | |
Rudolph Technologies, Inc. (a) | 115,551 | 3,212,318 | |
SMART Global Holdings, Inc. (a)(b) | 103,738 | 3,422,317 | |
Synaptics, Inc. (a) | 33,290 | 1,606,575 | |
24,453,354 | |||
Software - 1.2% | |||
Altair Engineering, Inc. Class A (a) | 7,249 | 302,791 | |
CommVault Systems, Inc. (a) | 2,858 | 199,060 | |
Glu Mobile, Inc. (a) | 244,041 | 1,879,116 | |
Progress Software Corp. | 120,871 | 4,947,250 | |
QAD, Inc. Class A | 9,817 | 595,401 | |
Rosetta Stone, Inc. (a) | 15,211 | 240,334 | |
SendGrid, Inc. (a) | 3,869 | 140,329 | |
TiVo Corp. | 46,421 | 633,647 | |
Verint Systems, Inc. (a) | 9,048 | 439,280 | |
Workiva, Inc. (a) | 17,427 | 642,185 | |
Zedge, Inc. (a) | 22,467 | 65,828 | |
10,085,221 | |||
Technology Hardware, Storage & Peripherals - 0.2% | |||
Immersion Corp. (a) | 109,536 | 1,272,808 | |
TOTAL INFORMATION TECHNOLOGY | 141,631,729 | ||
MATERIALS - 6.1% | |||
Chemicals - 3.0% | |||
Chase Corp. | 4,622 | 572,897 | |
FutureFuel Corp. | 161,618 | 2,396,795 | |
Kraton Performance Polymers, Inc. (a) | 91,483 | 4,302,445 | |
Kronos Worldwide, Inc. | 34,341 | 691,284 | |
Minerals Technologies, Inc. | 14,545 | 976,697 | |
PolyOne Corp. | 79,265 | 3,349,739 | |
Stepan Co. | 44,416 | 3,962,351 | |
Trinseo SA | 69,947 | 5,396,411 | |
Tronox Ltd. Class A | 219,195 | 3,548,767 | |
Valhi, Inc. | 146,802 | 484,447 | |
25,681,833 | |||
Containers & Packaging - 0.4% | |||
Greif, Inc.: | |||
Class A | 11,870 | 654,987 | |
Class B | 972 | 55,258 | |
Myers Industries, Inc. | 108,024 | 2,403,534 | |
3,113,779 | |||
Metals & Mining - 1.1% | |||
Atkore International Group, Inc. (a) | 174,922 | 4,789,364 | |
SunCoke Energy, Inc. (a) | 65,134 | 726,895 | |
Warrior Metropolitan Coal, Inc. (b) | 169,206 | 4,069,404 | |
9,585,663 | |||
Paper & Forest Products - 1.6% | |||
Boise Cascade Co. | 23,314 | 1,018,822 | |
Kapstone Paper & Packaging Corp. | 7,538 | 258,930 | |
Louisiana-Pacific Corp. | 200,539 | 5,847,717 | |
Schweitzer-Mauduit International, Inc. | 102,886 | 4,186,431 | |
Verso Corp. (a) | 70,347 | 2,208,192 | |
13,520,092 | |||
TOTAL MATERIALS | 51,901,367 | ||
REAL ESTATE - 4.6% | |||
Equity Real Estate Investment Trusts (REITs) - 4.6% | |||
Americold Realty Trust | 136,003 | 3,386,475 | |
Ashford Hospitality Trust, Inc. | 38,111 | 247,340 | |
Braemar Hotels & Resorts, Inc. | 19,034 | 219,843 | |
Chesapeake Lodging Trust | 102,098 | 3,360,045 | |
Corrections Corp. of America | 179,324 | 4,642,698 | |
DiamondRock Hospitality Co. | 209,990 | 2,511,480 | |
Education Realty Trust, Inc. | 7,078 | 292,888 | |
Gramercy Property Trust | 27,401 | 749,417 | |
InfraReit, Inc. | 36,429 | 761,002 | |
iStar Financial, Inc. (b) | 57,469 | 643,078 | |
LaSalle Hotel Properties (SBI) | 14,036 | 492,804 | |
Pebblebrook Hotel Trust (b) | 36,322 | 1,402,392 | |
Potlatch Corp. | 25,720 | 1,242,276 | |
PS Business Parks, Inc. | 2,545 | 331,944 | |
RLJ Lodging Trust | 62,392 | 1,367,009 | |
Ryman Hospitality Properties, Inc. | 63,486 | 5,633,113 | |
Sunstone Hotel Investors, Inc. | 326,642 | 5,481,053 | |
Washington Prime Group, Inc. | 62,000 | 479,880 | |
Xenia Hotels & Resorts, Inc. | 211,778 | 5,137,734 | |
38,382,471 | |||
Real Estate Management & Development - 0.0% | |||
Gyrodyne LLC (a) | 346 | 7,024 | |
Maui Land & Pineapple, Inc. (a) | 17,212 | 218,592 | |
225,616 | |||
TOTAL REAL ESTATE | 38,608,087 | ||
TELECOMMUNICATION SERVICES - 0.3% | |||
Diversified Telecommunication Services - 0.3% | |||
Intelsat SA (a)(b) | 53,029 | 1,165,047 | |
Vonage Holdings Corp. (a) | 77,629 | 1,100,779 | |
2,265,826 | |||
UTILITIES - 2.1% | |||
Electric Utilities - 1.1% | |||
Allete, Inc. | 58,064 | 4,359,445 | |
IDACORP, Inc. | 4,639 | 453,926 | |
Portland General Electric Co. | 102,056 | 4,735,398 | |
9,548,769 | |||
Gas Utilities - 0.2% | |||
Southwest Gas Holdings, Inc. | 26,160 | 2,022,691 | |
Independent Power and Renewable Electricity Producers - 0.6% | |||
Atlantic Power Corp. (a) | 145,006 | 324,458 | |
NRG Yield, Inc.: | |||
Class A | 200,865 | 3,955,032 | |
Class C | 25,091 | 498,056 | |
4,777,546 | |||
Multi-Utilities - 0.2% | |||
Avista Corp. | 7,169 | 367,841 | |
NorthWestern Energy Corp. | 16,067 | 963,377 | |
1,331,218 | |||
TOTAL UTILITIES | 17,680,224 | ||
TOTAL COMMON STOCKS | |||
(Cost $686,416,981) | 830,574,576 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 2.11% to 2.13% 1/3/19 (d) | |||
(Cost $719,771) | 725,000 | 719,828 | |
Shares | Value | ||
Money Market Funds - 11.7% | |||
Fidelity Cash Central Fund, 1.97% (e) | 18,535,963 | $18,539,670 | |
Fidelity Securities Lending Cash Central Fund 1.98% (e)(f) | 80,388,468 | 80,396,506 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $98,933,423) | 98,936,176 | ||
TOTAL INVESTMENT IN SECURITIES - 110.1% | |||
(Cost $786,070,175) | 930,230,580 | ||
NET OTHER ASSETS (LIABILITIES) - (10.1)% | (85,551,154) | ||
NET ASSETS - 100% | $844,679,426 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 164 | Sept. 2018 | $14,272,920 | $574,271 | $574,271 |
The notional amount of futures purchased as a percentage of Net Assets is 1.7%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(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 $719,828.
(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 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 | $119,447 |
Fidelity Securities Lending Cash Central Fund | 119,939 |
Total | $239,386 |
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 August 31, 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 | $116,048,303 | $116,048,303 | $-- | $-- |
Consumer Staples | 30,335,949 | 30,335,949 | -- | -- |
Energy | 33,262,011 | 33,262,011 | -- | -- |
Financials | 136,778,874 | 136,778,874 | -- | -- |
Health Care | 140,310,470 | 140,194,130 | -- | 116,340 |
Industrials | 121,751,736 | 121,751,736 | -- | -- |
Information Technology | 141,631,729 | 141,631,729 | -- | -- |
Materials | 51,901,367 | 51,901,367 | -- | -- |
Real Estate | 38,608,087 | 38,608,087 | -- | -- |
Telecommunication Services | 2,265,826 | 2,265,826 | -- | -- |
Utilities | 17,680,224 | 17,680,224 | -- | -- |
U.S. Government and Government Agency Obligations | 719,828 | -- | 719,828 | -- |
Money Market Funds | 98,936,176 | 98,936,176 | -- | -- |
Total Investments in Securities: | $930,230,580 | $929,394,412 | $719,828 | $116,340 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $574,271 | $574,271 | $-- | $-- |
Total Assets | $574,271 | $574,271 | $-- | $-- |
Total Derivative Instruments: | $574,271 | $574,271 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 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) | $574,271 | $0 |
Total Equity Risk | 574,271 | 0 |
Total Value of Derivatives | $574,271 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
August 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $78,814,910) — See accompanying schedule: Unaffiliated issuers (cost $687,136,752) | $831,294,404 | |
Fidelity Central Funds (cost $98,933,423) | 98,936,176 | |
Total Investment in Securities (cost $786,070,175) | $930,230,580 | |
Receivable for investments sold | 3,161,469 | |
Receivable for fund shares sold | 486,788 | |
Dividends receivable | 851,225 | |
Distributions receivable from Fidelity Central Funds | 43,111 | |
Receivable for daily variation margin on futures contracts | 47,561 | |
Total assets | 934,820,734 | |
Liabilities | ||
Payable for investments purchased | $8,779,191 | |
Payable for fund shares redeemed | 528,943 | |
Accrued management fee | 441,859 | |
Collateral on securities loaned | 80,391,315 | |
Total liabilities | 90,141,308 | |
Net Assets | $844,679,426 | |
Net Assets consist of: | ||
Paid in capital | $636,304,913 | |
Undistributed net investment income | 3,543,923 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 60,095,914 | |
Net unrealized appreciation (depreciation) on investments | 144,734,676 | |
Net Assets, for 55,291,975 shares outstanding | $844,679,426 | |
Net Asset Value, offering price and redemption price per share ($844,679,426 ÷ 55,291,975 shares) | $15.28 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $5,872,895 | |
Interest | 6,542 | |
Income from Fidelity Central Funds | 239,386 | |
Total income | 6,118,823 | |
Expenses | ||
Management fee | $2,551,327 | |
Independent trustees' fees and expenses | 1,943 | |
Miscellaneous | 1,151 | |
Total expenses before reductions | 2,554,421 | |
Expense reductions | (404) | |
Total expenses after reductions | 2,554,017 | |
Net investment income (loss) | 3,564,806 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 64,112,020 | |
Fidelity Central Funds | (605) | |
Foreign currency transactions | 55 | |
Futures contracts | 829,574 | |
Total net realized gain (loss) | 64,941,044 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 32,928,478 | |
Fidelity Central Funds | (522) | |
Futures contracts | 997,478 | |
Total change in net unrealized appreciation (depreciation) | 33,925,434 | |
Net gain (loss) | 98,866,478 | |
Net increase (decrease) in net assets resulting from operations | $102,431,284 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2018 (Unaudited) | Year ended February 28, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,564,806 | $8,091,814 |
Net realized gain (loss) | 64,941,044 | 68,642,642 |
Change in net unrealized appreciation (depreciation) | 33,925,434 | (40,276,882) |
Net increase (decrease) in net assets resulting from operations | 102,431,284 | 36,457,574 |
Distributions to shareholders from net investment income | (599,359) | (7,670,058) |
Distributions to shareholders from net realized gain | (20,378,191) | (67,646,361) |
Total distributions | (20,977,550) | (75,316,419) |
Share transactions | ||
Proceeds from sales of shares | 58,672,589 | 165,749,523 |
Reinvestment of distributions | 19,950,234 | 71,714,551 |
Cost of shares redeemed | (78,208,424) | (645,982,506) |
Net increase (decrease) in net assets resulting from share transactions | 414,399 | (408,518,432) |
Total increase (decrease) in net assets | 81,868,133 | (447,377,277) |
Net Assets | ||
Beginning of period | 762,811,293 | 1,210,188,570 |
End of period | $844,679,426 | $762,811,293 |
Other Information | ||
Undistributed net investment income end of period | $3,543,923 | $578,476 |
Shares | ||
Sold | 4,013,318 | 11,801,547 |
Issued in reinvestment of distributions | 1,454,099 | 5,214,728 |
Redeemed | (5,421,750) | (46,278,943) |
Net increase (decrease) | 45,667 | (29,262,668) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Enhanced Index Fund
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2018 | 2018 | 2017 | 2016 A | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.81 | $14.32 | $10.99 | $13.05 | $12.74 | $10.56 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .06 | .13 | .12 | .11 | .08 | .08 |
Net realized and unrealized gain (loss) | 1.80 | .55 | 3.31 | (1.52) | 1.04 | 2.91 |
Total from investment operations | 1.86 | .68 | 3.43 | (1.41) | 1.12 | 2.99 |
Distributions from net investment income | (.01) | (.13) | (.10) | (.09) | (.06) | (.07) |
Distributions from net realized gain | (.37) | (1.06) | – | (.56) | (.75) | (.75) |
Total distributions | (.39)C | (1.19) | (.10) | (.65) | (.81) | (.82) |
Redemption fees added to paid in capitalB | – | – | –D | –D | –D | .01 |
Net asset value, end of period | $15.28 | $13.81 | $14.32 | $10.99 | $13.05 | $12.74 |
Total ReturnE,F | 13.75% | 4.95% | 31.15% | (11.20)% | 9.53% | 29.35% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .64%I | .64% | .67% | .67% | .67% | .67% |
Expenses net of fee waivers, if any | .64%I | .64% | .67% | .67% | .67% | .67% |
Expenses net of all reductions | .64%I | .64% | .67% | .67% | .67% | .67% |
Net investment income (loss) | .89%I | .89% | .93% | .90% | .63% | .70% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $844,679 | $762,811 | $1,210,189 | $529,009 | $472,915 | $415,344 |
Portfolio turnover rateJ | 114%I | 100% | 76% | 87% | 99% | 107% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.39 per share is comprised of distributions from net investment income of $.011 and distributions from net realized gain of $.374 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. 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.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2018
1. Organization.
Fidelity Small Cap Enhanced Index Fund (the Fund) is a fund of Fidelity Commonwealth Trust II (the Trust) and is 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.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of August 31, 2018 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $163,792,728 |
Gross unrealized depreciation | (22,409,038) |
Net unrealized appreciation (depreciation) | $141,383,690 |
Tax cost | $789,421,161 |
3. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $444,659,633 and $457,582,794, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR Co., Inc. (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The Fund pays an all-inclusive management fee based on annual rate of .64% of the Fund's average net assets; and the investment adviser pays all ordinary operating expenses of the Fund, except fees and expenses of the independent Trustees and certain miscellaneous expenses such as proxy and shareholder meeting expenses. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
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 Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Investments in Fidelity Central Funds.
The Fund invests 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 Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The 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.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,093 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $179,860. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $119,939, including $4,274 from securities loaned to FCM.
9. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $404.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2018 to August 31, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value March 1, 2018 | Ending Account Value August 31, 2018 | Expenses Paid During Period-B March 1, 2018 to August 31, 2018 | |
Actual | .64% | $1,000.00 | $1,137.50 | $3.45 |
Hypothetical-C | $1,000.00 | $1,021.98 | $3.26 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
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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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | 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: | October 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: | October 24, 2018 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | October 24, 2018 |