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 811-2546
Fidelity Commonwealth Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | April 30 |
| |
Date of reporting period: | April 30, 2007 |
Item 1. Reports to Stockholders
Fidelity®
Large Cap Stock
Fund
Annual Report
April 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended April 30, 2007 | Past 1
year | Past 5
years | Past 10
years |
Fidelity® Large Cap Stock | 13.84% | 7.01% | 7.29% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Large Cap Stock Fund on April 30, 1997. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Matthew Fruhan, Portfolio Manager of Fidelity® Large Cap Stock Fund
The Dow Jones Industrial AverageSM crossed both the 12,000- and 13,000-point thresholds for the first time ever during the 12-month period ending April 30, 2007. It took the Dow more than seven years to move from 11,000 to 12,000, but less than seven months to jump from 12,000 to 13,000, a rise made considerably noteworthy considering the index lost 416 points in one day in late February when Asian markets plunged and domestic subprime mortgage woes spiked. Despite the turbulence, the Dow gained 17.58% for the one-year period overall. Elsewhere, the Standard & Poor's 500SM Index rose 15.24%, the Russell 2000® Index was up 7.83% and the NASDAQ Composite® Index increased 9.49%. The markets' road to prosperity was paved by strong corporate earnings, modest levels of inflation and muted recession concerns. But there were some red flags for stocks as the period drew to a close: Oil prices trended higher, and U.S. economic growth in the first quarter of 2007 was at its slowest pace in four years.
The fund returned 13.84% for the past 12 months, lagging the S&P 500®. Stock selection played a role in the fund's relative underperformance. I underweighted strong-performing companies such as Microsoft and Cisco Systems, while overweighting such names as General Electric and American International Group (AIG), which underperformed. Stock selection in the energy and consumer discretionary sectors also hurt, as did my overweighting in semiconductors and underweighting in utilities. Large integrated energy companies such as Exxon Mobil outperformed, but I de-emphasized them in favor of faster-growing firms such as oil services company Halliburton and coal producer Peabody Energy, both of which were hurt when the prices of oil and natural gas corrected. Two out-of benchmark semiconductor companies, Marvell Technology and Britain's CSR, also underperformed and held back results. Of these detractors, I did not hold Exxon Mobil, Halliburton, Peabody Energy or CSR at period end. In contrast, my choices in industrials, materials and banks aided performance. Diversified industrial company Honeywell International was the top individual contributor. Another notable contributor was QUALCOMM, the leading developer of operating systems for wireless communications. Other investments that helped included Inverness Medical Innovations, a health care diagnostics company, and Canada's Research In Motion, developer of the BlackBerry messaging technology.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
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 (November 1, 2006 to April 30, 2007).
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 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 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.
Annual Report
| Beginning
Account Value
November 1, 2006 | Ending
Account Value
April 30, 2007 | Expenses Paid
During Period*
November 1, 2006
to April 30, 2007 |
Actual | $ 1,000.00 | $ 1,101.10 | $ 4.32 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,020.68 | $ 4.16 |
* Expenses are equal to the Fund's annualized expense ratio of .83%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
General Electric Co. | 7.0 | 7.2 |
Honeywell International, Inc. | 4.3 | 4.2 |
American International Group, Inc. | 3.2 | 3.6 |
Citigroup, Inc. | 2.5 | 0.0 |
Johnson & Johnson | 2.5 | 2.8 |
Bank of America Corp. | 2.2 | 2.8 |
Google, Inc. Class A (sub. vtg.) | 2.2 | 2.4 |
AT&T, Inc. | 2.1 | 1.9 |
JPMorgan Chase & Co. | 1.7 | 2.3 |
Intel Corp. | 1.6 | 1.6 |
| 29.3 | |
Top Five Market Sectors as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.7 | 20.2 |
Information Technology | 18.7 | 17.1 |
Industrials | 16.9 | 15.4 |
Health Care | 13.2 | 15.6 |
Energy | 10.7 | 10.1 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2007 * | As of October 31, 2006 ** |
 | Stocks 99.2% | | | Stocks 98.4% | |
 | Convertible
Securities 0.2% | | | Convertible
Securities 0.0% | |
 | Short-Term
Investments and
Net Other Assets 0.6% | | | Short-Term
Investments and
Net Other Assets 1.6% | |
* Foreign investments | 18.2% | | ** Foreign investments | 17.1% | |
Annual Report
Investments April 30, 2007
Showing Percentage of Net Assets
Common Stocks - 99.2% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 7.7% |
Distributors - 0.3% |
Li & Fung Ltd. | 760,000 | | $ 2,390 |
Diversified Consumer Services - 1.1% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 155,662 | | 7,363 |
New Oriental Education & Technology Group, Inc. sponsored ADR | 53,000 | | 2,319 |
| | 9,682 |
Hotels, Restaurants & Leisure - 0.2% |
Starbucks Corp. (a) | 65,700 | | 2,038 |
Household Durables - 2.3% |
D.R. Horton, Inc. | 394,899 | | 8,759 |
KB Home | 154,600 | | 6,819 |
Standard Pacific Corp. (d) | 202,720 | | 4,227 |
Toll Brothers, Inc. (a) | 59,400 | | 1,769 |
| | 21,574 |
Media - 0.9% |
McGraw-Hill Companies, Inc. | 33,200 | | 2,176 |
Time Warner, Inc. | 292,200 | | 6,028 |
| | 8,204 |
Multiline Retail - 0.5% |
Target Corp. | 83,200 | | 4,940 |
Specialty Retail - 2.1% |
Home Depot, Inc. | 259,400 | | 9,823 |
Staples, Inc. | 398,093 | | 9,873 |
Tweeter Home Entertainment Group, Inc. (a) | 37,700 | | 62 |
| | 19,758 |
Textiles, Apparel & Luxury Goods - 0.3% |
Deckers Outdoor Corp. (a) | 26,502 | | 2,007 |
Iconix Brand Group, Inc. (a) | 43,100 | | 868 |
| | 2,875 |
TOTAL CONSUMER DISCRETIONARY | | 71,461 |
CONSUMER STAPLES - 4.0% |
Beverages - 1.0% |
Coca-Cola Femsa SA de CV sponsored ADR | 12,900 | | 502 |
PepsiCo, Inc. | 139,900 | | 9,246 |
| | 9,748 |
Food & Staples Retailing - 1.3% |
Tesco PLC | 31,200 | | 288 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - continued |
Tesco PLC Sponsored ADR | 52,100 | | $ 1,441 |
Wal-Mart Stores, Inc. | 222,380 | | 10,656 |
| | 12,385 |
Food Products - 1.4% |
Green Mountain Coffee Roasters, Inc. (a) | 16,200 | | 990 |
Marine Harvest ASA (a) | 2,132,000 | | 2,308 |
Nestle SA (Reg.) (d) | 24,504 | | 9,738 |
| | 13,036 |
Personal Products - 0.3% |
Bare Escentuals, Inc. | 58,500 | | 2,365 |
TOTAL CONSUMER STAPLES | | 37,534 |
ENERGY - 10.7% |
Energy Equipment & Services - 3.8% |
Diamond Offshore Drilling, Inc. | 44,200 | | 3,784 |
GlobalSantaFe Corp. | 40,100 | | 2,564 |
National Oilwell Varco, Inc. (a) | 63,900 | | 5,422 |
Noble Corp. | 23,974 | | 2,019 |
North American Energy Partners, Inc. (a) | 69,700 | | 1,474 |
Schlumberger Ltd. (NY Shares) | 177,400 | | 13,097 |
Smith International, Inc. | 130,500 | | 6,843 |
| | 35,203 |
Oil, Gas & Consumable Fuels - 6.9% |
Boardwalk Pipeline Partners, LP | 22,400 | | 820 |
ConocoPhillips | 133,290 | | 9,244 |
EOG Resources, Inc. | 73,100 | | 5,368 |
Forest Oil Corp. (a) | 76,700 | | 2,703 |
Noble Energy, Inc. | 15,100 | | 888 |
NuStar GP Holdings LLC | 47,700 | | 1,608 |
OAO Gazprom sponsored ADR | 23,675 | | 930 |
Occidental Petroleum Corp. | 78,200 | | 3,965 |
Petroplus Holdings AG | 23,633 | | 1,957 |
Quicksilver Resources, Inc. (a) | 107,400 | | 4,496 |
Range Resources Corp. | 186,650 | | 6,822 |
Spectra Energy Corp. | 88,400 | | 2,307 |
Suncor Energy, Inc. | 23,400 | | 1,877 |
Ultra Petroleum Corp. (a) | 112,600 | | 6,387 |
Valero Energy Corp. | 168,600 | | 11,841 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Western Oil Sands, Inc. Class A (a) | 37,500 | | $ 1,218 |
Williams Partners LP | 30,700 | | 1,471 |
| | 63,902 |
TOTAL ENERGY | | 99,105 |
FINANCIALS - 21.7% |
Capital Markets - 4.2% |
Credit Suisse Group sponsored ADR | 25,200 | | 1,978 |
EFG International | 23,820 | | 1,075 |
Investors Financial Services Corp. | 191,124 | | 11,827 |
Julius Baer Holding AG (Bearer) | 31,370 | | 2,205 |
KKR Private Equity Investors, LP | 128,500 | | 3,135 |
KKR Private Equity Investors, LP Restricted Depositary Units (e) | 59,500 | | 1,452 |
Lazard Ltd. Class A | 75,300 | | 4,077 |
State Street Corp. | 42,159 | | 2,903 |
T. Rowe Price Group, Inc. | 28,200 | | 1,401 |
UBS AG (NY Shares) | 136,200 | | 8,839 |
| | 38,892 |
Commercial Banks - 3.1% |
Commerce Bancorp, Inc. | 237,300 | | 7,935 |
East West Bancorp, Inc. | 58,300 | | 2,324 |
Erste Bank AG | 52,674 | | 4,242 |
HDFC Bank Ltd. sponsored ADR | 8,300 | | 603 |
JSC Halyk Bank of Kazakhstan unit (a) | 49,900 | | 1,123 |
Societe Generale Series A | 14,800 | | 3,161 |
Standard Chartered PLC (United Kingdom) | 303,585 | | 9,451 |
| | 28,839 |
Diversified Financial Services - 6.4% |
Bank of America Corp. | 412,200 | | 20,981 |
Citigroup, Inc. | 436,400 | | 23,400 |
JPMorgan Chase & Co. | 299,219 | | 15,589 |
| | 59,970 |
Insurance - 6.8% |
ACE Ltd. | 142,000 | | 8,443 |
AFLAC, Inc. | 117,300 | | 6,022 |
American International Group, Inc. | 419,712 | | 29,342 |
Endurance Specialty Holdings Ltd. | 114,429 | | 4,282 |
Everest Re Group Ltd. | 16,900 | | 1,701 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
Platinum Underwriters Holdings Ltd. | 133,060 | | $ 4,553 |
RenaissanceRe Holdings Ltd. | 59,200 | | 3,206 |
The Chubb Corp. | 102,400 | | 5,512 |
| | 63,061 |
Thrifts & Mortgage Finance - 1.2% |
BankUnited Financial Corp. Class A | 39,700 | | 860 |
Countrywide Financial Corp. | 138,600 | | 5,139 |
Radian Group, Inc. | 88,738 | | 5,157 |
| | 11,156 |
TOTAL FINANCIALS | | 201,918 |
HEALTH CARE - 13.2% |
Biotechnology - 3.3% |
Actelion Ltd. (Reg.) (a) | 7,726 | | 1,842 |
Alnylam Pharmaceuticals, Inc. (a) | 149,400 | | 2,804 |
Amgen, Inc. (a) | 142,200 | | 9,121 |
Celgene Corp. (a) | 40,000 | | 2,446 |
Cephalon, Inc. (a) | 81,952 | | 6,524 |
CSL Ltd. | 39,659 | | 2,875 |
Genentech, Inc. (a) | 23,600 | | 1,888 |
Myriad Genetics, Inc. (a) | 48,350 | | 1,767 |
Vertex Pharmaceuticals, Inc. (a) | 52,800 | | 1,623 |
| | 30,890 |
Health Care Equipment & Supplies - 2.1% |
American Medical Systems Holdings, Inc. (a) | 62,200 | | 1,103 |
Cooper Companies, Inc. | 31,800 | | 1,625 |
Gen-Probe, Inc. (a) | 40,800 | | 2,085 |
Hologic, Inc. (a) | 46,585 | | 2,681 |
Inverness Medical Innovations, Inc. (a) | 277,501 | | 11,114 |
Kyphon, Inc. (a) | 14,200 | | 662 |
NeuroMetrix, Inc. (a) | 20,200 | | 204 |
Phonak Holding AG | 5,543 | | 493 |
| | 19,967 |
Health Care Providers & Services - 1.6% |
Brookdale Senior Living, Inc. | 44,600 | | 2,025 |
Healthways, Inc. (a) | 60,600 | | 2,571 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Humana, Inc. (a) | 49,000 | | $ 3,099 |
UnitedHealth Group, Inc. | 127,700 | | 6,776 |
| | 14,471 |
Health Care Technology - 0.3% |
Cerner Corp. (a) | 45,100 | | 2,401 |
Life Sciences Tools & Services - 0.2% |
Luminex Corp. (a) | 32,318 | | 448 |
QIAGEN NV (a) | 84,900 | | 1,505 |
| | 1,953 |
Pharmaceuticals - 5.7% |
Allergan, Inc. | 87,685 | | 10,627 |
BioMimetic Therapeutics, Inc. | 18,600 | | 349 |
Elan Corp. PLC sponsored ADR (a) | 136,200 | | 1,890 |
Johnson & Johnson | 357,400 | | 22,952 |
Merck & Co., Inc. | 226,628 | | 11,658 |
Wyeth | 103,700 | | 5,755 |
| | 53,231 |
TOTAL HEALTH CARE | | 122,913 |
INDUSTRIALS - 16.9% |
Aerospace & Defense - 4.8% |
General Dynamics Corp. | 17,400 | | 1,366 |
Goodrich Corp. | 62,700 | | 3,564 |
Honeywell International, Inc. | 733,800 | | 39,757 |
| | 44,687 |
Air Freight & Logistics - 1.3% |
C.H. Robinson Worldwide, Inc. | 17,900 | | 957 |
United Parcel Service, Inc. Class B | 156,100 | | 10,994 |
| | 11,951 |
Commercial Services & Supplies - 0.3% |
Corporate Executive Board Co. | 18,700 | | 1,190 |
CoStar Group, Inc. (a) | 17,300 | | 844 |
Robert Half International, Inc. | 17,900 | | 596 |
| | 2,630 |
Construction & Engineering - 0.0% |
Quanta Services, Inc. (a) | 19,000 | | 522 |
Electrical Equipment - 1.9% |
ABB Ltd. sponsored ADR | 112,800 | | 2,251 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Electrical Equipment - continued |
Emerson Electric Co. | 101,000 | | $ 4,746 |
Energy Conversion Devices, Inc. (a)(d) | 38,000 | | 1,346 |
Evergreen Solar, Inc. (a) | 285,374 | | 2,788 |
SolarWorld AG (d) | 37,700 | | 3,198 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 76,357 | | 2,770 |
Suzlon Energy Ltd. | 37,501 | | 1,085 |
| | 18,184 |
Industrial Conglomerates - 7.6% |
General Electric Co. | 1,759,308 | | 64,847 |
Siemens AG sponsored ADR | 46,600 | | 5,637 |
| | 70,484 |
Machinery - 0.8% |
Dover Corp. | 28,900 | | 1,391 |
IDEX Corp. | 21,300 | | 1,118 |
Illinois Tool Works, Inc. | 98,600 | | 5,059 |
| | 7,568 |
Road & Rail - 0.2% |
Hertz Global Holdings, Inc. | 82,100 | | 1,634 |
TOTAL INDUSTRIALS | | 157,660 |
INFORMATION TECHNOLOGY - 18.7% |
Communications Equipment - 2.4% |
Alcatel-Lucent SA sponsored ADR | 151,000 | | 2,001 |
Cisco Systems, Inc. (a) | 245,800 | | 6,573 |
Juniper Networks, Inc. (a) | 244,800 | | 5,474 |
QUALCOMM, Inc. | 123,000 | | 5,387 |
Research In Motion Ltd. (a) | 9,900 | | 1,303 |
Sonus Networks, Inc. (a) | 181,500 | | 1,403 |
| | 22,141 |
Computers & Peripherals - 3.8% |
Apple, Inc. (a) | 79,600 | | 7,944 |
Dell, Inc. (a) | 220,402 | | 5,556 |
EMC Corp. (a) | 548,323 | | 8,324 |
Hewlett-Packard Co. | 116,800 | | 4,922 |
Network Appliance, Inc. (a) | 26,300 | | 979 |
SanDisk Corp. (a) | 114,800 | | 4,988 |
Sun Microsystems, Inc. (a) | 393,700 | | 2,055 |
| | 34,768 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Electronic Equipment & Instruments - 0.9% |
Arrow Electronics, Inc. (a) | 35,000 | | $ 1,383 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 61,000 | | 406 |
Jabil Circuit, Inc. | 218,800 | | 5,098 |
Motech Industries, Inc. | 122,000 | | 1,514 |
| | 8,401 |
Internet Software & Services - 3.8% |
eBay, Inc. (a) | 324,697 | | 11,020 |
Google, Inc. Class A (sub. vtg.) (a) | 44,450 | | 20,953 |
LoopNet, Inc. | 54,625 | | 1,001 |
Terremark Worldwide, Inc. (a) | 111,272 | | 924 |
ValueClick, Inc. (a) | 50,900 | | 1,456 |
| | 35,354 |
IT Services - 1.2% |
MoneyGram International, Inc. | 131,100 | | 3,727 |
Satyam Computer Services Ltd. sponsored ADR | 78,000 | | 1,941 |
The Western Union Co. | 267,000 | | 5,620 |
| | 11,288 |
Semiconductors & Semiconductor Equipment - 5.2% |
Altera Corp. | 89,700 | | 2,022 |
ARM Holdings PLC sponsored ADR | 286,600 | | 2,287 |
Broadcom Corp. Class A (a) | 78,287 | | 2,548 |
FormFactor, Inc. (a) | 72,200 | | 2,981 |
Intel Corp. | 709,241 | | 15,249 |
Intersil Corp. Class A | 45,100 | | 1,344 |
LSI Logic Corp. (a) | 301,100 | | 2,559 |
Marvell Technology Group Ltd. (a) | 258,100 | | 4,163 |
Maxim Integrated Products, Inc. | 164,400 | | 5,215 |
MEMC Electronic Materials, Inc. (a) | 32,200 | | 1,767 |
National Semiconductor Corp. | 87,400 | | 2,299 |
PMC-Sierra, Inc. (a) | 248,297 | | 1,919 |
Richtek Technology Corp. | 46,000 | | 478 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 93,600 | | 908 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,331,000 | | 2,745 |
| | 48,484 |
Software - 1.4% |
Autonomy Corp. PLC (a) | 120,600 | | 1,822 |
Microsoft Corp. | 185,902 | | 5,566 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Nintendo Co. Ltd. | 15,900 | | $ 4,967 |
Sandvine Corp. (U.K.) | 163,200 | | 698 |
| | 13,053 |
TOTAL INFORMATION TECHNOLOGY | | 173,489 |
MATERIALS - 1.9% |
Chemicals - 0.7% |
Celanese Corp. Class A | 97,430 | | 3,232 |
Georgia Gulf Corp. | 487 | | 8 |
Minerals Technologies, Inc. | 26,400 | | 1,680 |
Zoltek Companies, Inc. (a) | 39,400 | | 1,199 |
| | 6,119 |
Metals & Mining - 1.2% |
Alcoa, Inc. | 94,400 | | 3,350 |
Arcelor Mittal | 90,200 | | 4,818 |
Reliance Steel & Aluminum Co. | 52,300 | | 3,107 |
| | 11,275 |
TOTAL MATERIALS | | 17,394 |
TELECOMMUNICATION SERVICES - 2.8% |
Diversified Telecommunication Services - 2.4% |
AT&T, Inc. | 512,600 | | 19,848 |
Qwest Communications International, Inc. (a) | 292,300 | | 2,596 |
| | 22,444 |
Wireless Telecommunication Services - 0.4% |
American Tower Corp. Class A (a) | 107,189 | | 4,073 |
TOTAL TELECOMMUNICATION SERVICES | | 26,517 |
UTILITIES - 1.6% |
Electric Utilities - 0.2% |
Reliant Energy, Inc. (a) | 86,400 | | 1,924 |
Independent Power Producers & Energy Traders - 1.4% |
AES Corp. (a) | 111,500 | | 2,452 |
Clipper Windpower PLC (a) | 161,000 | | 2,825 |
Constellation Energy Group, Inc. | 23,700 | | 2,112 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Independent Power Producers & Energy Traders - continued |
Dynegy, Inc. (a) | 166,500 | | $ 1,567 |
NRG Energy, Inc. | 46,800 | | 3,695 |
| | 12,651 |
TOTAL UTILITIES | | 14,575 |
TOTAL COMMON STOCKS (Cost $821,140) | 922,566 |
Convertible Bonds - 0.2% |
| Principal Amount (000s) | | |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Ford Motor Co. 4.25% 12/15/36 | | $ 1,030 | | 1,157 |
UTILITIES - 0.1% |
Independent Power Producers & Energy Traders - 0.1% |
Calpine Corp. 7.75% 6/1/15 | | 840 | | 1,034 |
TOTAL CONVERTIBLE BONDS (Cost $1,943) | 2,191 |
Money Market Funds - 1.2% |
| Shares | | |
Fidelity Cash Central Fund, 5.29% (b) | 3,903,400 | | 3,903 |
Fidelity Securities Lending Cash Central Fund, 5.31% (b)(c) | 6,810,218 | | 6,810 |
TOTAL MONEY MARKET FUNDS (Cost $10,713) | 10,713 |
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $833,796) | | 935,470 |
NET OTHER ASSETS - (0.6)% | | (5,817) |
NET ASSETS - 100% | $ 929,653 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,452,000 or 0.2% of net assets. |
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
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 306 |
Fidelity Securities Lending Cash Central Fund | 106 |
Total | $ 412 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 81.8% |
Switzerland | 3.1% |
United Kingdom | 2.4% |
Bermuda | 2.4% |
Cayman Islands | 2.0% |
Netherlands Antilles | 1.4% |
Canada | 1.4% |
Others (individually less than 1%) | 5.5% |
| 100.0% |
Income Tax Information |
At April 30, 2007, the fund had a capital loss carryforward of approximately $6,116,000 all of which will expire on April 30, 2011. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | April 30, 2007 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $6,368) - See accompanying schedule: Unaffiliated issuers (cost $823,083) | $ 924,757 | |
Fidelity Central Funds (cost $10,713) | 10,713 | |
Total Investments (cost $833,796) | | $ 935,470 |
Cash | | 208 |
Foreign currency held at value (cost $573) | | 573 |
Receivable for investments sold | | 16,374 |
Receivable for fund shares sold | | 1,833 |
Dividends receivable | | 570 |
Interest receivable | | 20 |
Distributions receivable from Fidelity Central Funds | | 3 |
Prepaid expenses | | 2 |
Other receivables | | 20 |
Total assets | | 955,073 |
| | |
Liabilities | | |
Payable for investments purchased | $ 17,240 | |
Payable for fund shares redeemed | 651 | |
Accrued management fee | 414 | |
Other affiliated payables | 230 | |
Other payables and accrued expenses | 75 | |
Collateral on securities loaned, at value | 6,810 | |
Total liabilities | | 25,420 |
| | |
Net Assets | | $ 929,653 |
Net Assets consist of: | | |
Paid in capital | | $ 836,261 |
Undistributed net investment income | | 2,101 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (10,363) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 101,654 |
Net Assets, for 49,661 shares outstanding | | $ 929,653 |
Net Asset Value, offering price and redemption price per share ($929,653 ÷ 49,661 shares) | | $ 18.72 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended April 30, 2007 |
| | |
Investment Income | | |
Dividends | | $ 11,913 |
Interest | | 67 |
Income from Fidelity Central Funds | | 412 |
Total income | | 12,392 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,480 | |
Performance adjustment | (737) | |
Transfer agent fees | 2,310 | |
Accounting and security lending fees | 274 | |
Custodian fees and expenses | 103 | |
Independent trustees' compensation | 3 | |
Registration fees | 32 | |
Audit | 57 | |
Legal | 13 | |
Interest | 2 | |
Miscellaneous | 4 | |
Total expenses before reductions | 6,541 | |
Expense reductions | (114) | 6,427 |
Net investment income (loss) | | 5,965 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $42) | 68,360 | |
Foreign currency transactions | (7) | |
Total net realized gain (loss) | | 68,353 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $7) | 35,268 | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | | 35,267 |
Net gain (loss) | | 103,620 |
Net increase (decrease) in net assets resulting from operations | | $ 109,585 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
April 30,
2007 | Year ended
April 30,
2006 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 5,965 | $ 4,451 |
Net realized gain (loss) | 68,353 | 79,667 |
Change in net unrealized appreciation (depreciation) | 35,267 | 43,068 |
Net increase (decrease) in net assets resulting
from operations | 109,585 | 127,186 |
Distributions to shareholders from net investment income | (5,087) | (4,334) |
Share transactions
Proceeds from sales of shares | 241,633 | 159,648 |
Reinvestment of distributions | 5,009 | 4,260 |
Cost of shares redeemed | (168,182) | (152,056) |
Net increase (decrease) in net assets resulting from share transactions | 78,460 | 11,852 |
Total increase (decrease) in net assets | 182,958 | 134,704 |
| | |
Net Assets | | |
Beginning of period | 746,695 | 611,991 |
End of period (including undistributed net investment income of $2,101 and undistributed net investment income of $1,223, respectively) | $ 929,653 | $ 746,695 |
Other Information Shares | | |
Sold | 14,135 | 10,191 |
Issued in reinvestment of distributions | 294 | 282 |
Redeemed | (9,899) | (9,952) |
Net increase (decrease) | 4,530 | 521 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended April 30, | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.55 | $ 13.72 | $ 13.69 | $ 11.61 | $ 13.79 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .13 | .10 | .13E | .07 | .07 |
Net realized and unrealized gain (loss) | 2.15 | 2.83 | .04 | 2.08 | (2.19) |
Total from investment operations | 2.28 | 2.93 | .17 | 2.15 | (2.12) |
Distributions from net investment income | (.11) | (.10) | (.14) | (.07) | (.06) |
Net asset value, end of period | $ 18.72 | $ 16.55 | $ 13.72 | $ 13.69 | $ 11.61 |
Total ReturnA | 13.84% | 21.43% | 1.21% | 18.55% | (15.39)% |
Ratios to Average Net AssetsC,F | | | | |
Expenses before reductions | .82% | .78% | .78% | .78% | .83% |
Expenses net of fee waivers, if any | .82% | .78% | .78% | .78% | .83% |
Expenses net of all reductions | .81% | .73% | .75% | .76% | .78% |
Net investment income (loss) | .75% | .67% | .94%E | .53% | .59% |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 930 | $ 747 | $ 612 | $ 708 | $ 599 |
Portfolio turnover rateD | 96% | 154% | 55% | 62% | 86% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .49%.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended April 30, 2007
(Amounts in thousands except ratios)
1. Organization.
Fidelity Large Cap Stock Fund (the Fund) is a fund of Fidelity Commonwealth Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
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 for processing shareholder transactions 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 may 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
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, capital loss carryforwards and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 120,837 |
Unrealized depreciation | (23,517) |
Net unrealized appreciation (depreciation) | 97,320 |
Undistributed ordinary income | 2,188 |
Capital loss carryforward | (6,116) |
Cost for federal income tax purposes | $ 838,150 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
| April 30, 2007 | April 30, 2006 |
Ordinary Income | $ 5,087 | $ 4,334 |
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $850,047 and $766,882, respectively.
Annual Report
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the transfer agent fees were equivalent to an annual rate of .29% of average net assets.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $9 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 2,761 | 5.39% | $ 2 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $106.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $40 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $6 and $57 respectively.
Annual Report
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.
The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.
In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust and Shareholders of Fidelity Large Cap Stock Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Large Cap Stock Fund (the Fund), a fund of Fidelity Commonwealth Trust, including the schedule of investments as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Large Cap Stock Fund as of April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 14, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 353 funds advised by FMR or an affiliate. Mr. Curvey oversees 314 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (76) |
| Year of Election or Appointment: 1974 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). |
James C. Curvey (71) |
| Year of Election or Appointment: 2007 Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (58) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (70) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-
2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (66) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-
present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (60) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (62) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (67) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (63) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Commonwealth Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Kimberley H. Monasterio (43) |
| Year of Election or Appointment: 2007 President and Treasurer of Large Cap Stock. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Philip L. Bullen (47) |
| Year of Election or Appointment: 2006 Vice President of Large Cap Stock. Mr. Bullen also serves as Vice President of certain Equity Funds (2006-present). Mr. Bullen is Senior Vice President of FMR (2001-present) and FMR Co., Inc. (2001-present). Previously, Mr. Bullen served as President and a Director of Fidelity Research & Analysis Company (2001-2005), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002-2006), and a Director of Strategic Advisers, Inc. (2002-2005). |
Dwight D. Churchill (53) |
| Year of Election or Appointment: 2005 Vice President of Large Cap Stock. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-
present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR. |
Matthew Fruhan (33) |
| Year of Election or Appointment: 2006 Vice President of Large Cap Stock. Mr. Fruhan also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Fruhan worked as a research analyst and portfolio manager. Mr. Fruhan also serves as Vice President of FMR and FMR Co., Inc (2006). |
Eric D. Roiter (58) |
| Year of Election or Appointment: 1998 Secretary of Large Cap Stock. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
Scott C. Goebel (39) |
| Year of Election or Appointment: 2007 Assistant Secretary of Large Cap Stock. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Large Cap Stock. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Large Cap Stock. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-
present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (59) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Large Cap Stock. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-
present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Large Cap Stock. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (37) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Large Cap Stock. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-
2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (40) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Large Cap Stock. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (53) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Large Cap Stock. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Gary W. Ryan (48) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Large Cap Stock. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
Salvatore Schiavone (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Large Cap Stock. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The fund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 100%, of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company (formerly Fidelity Management & Research (Far East) Inc.)
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
LCS-UANN-0607
1.784725.104
Fidelity®
Mid-Cap Stock
Fund
Annual Report
April 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended April 30, 2007 | Past 1
year | Past 5
years | Past 10
years |
Fidelity® Mid-Cap Stock Fund | 11.53% | 10.45% | 14.18% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Mid-Cap Stock Fund on April 30, 1997. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's® MidCap 400 Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Shep Perkins, Portfolio Manager of Fidelity® Mid-Cap Stock Fund
The Dow Jones Industrial AverageSM crossed both the 12,000- and 13,000-point thresholds for the first time ever during the 12-month period ending April 30, 2007. It took the Dow more than seven years to move from 11,000 to 12,000, but less than seven months to jump from 12,000 to 13,000, a rise made considerably noteworthy considering the index lost 416 points in one day in late February when Asian markets plunged and domestic subprime mortgage woes spiked. Despite the turbulence, the Dow gained 17.58% for the one-year period overall. Elsewhere, the Standard & Poor's 500SM Index rose 15.24%, the Russell 2000® Index was up 7.83% and the NASDAQ Composite® Index increased 9.49%. The markets' road to prosperity was paved by strong corporate earnings, modest levels of inflation and muted recession concerns. But there were some red flags for stocks as the period drew to a close: Oil prices trended higher, and U.S. economic growth in the first quarter of 2007 was at its slowest pace in four years.
The fund beat its benchmark for the 12 months, returning 11.53% versus the Standard & Poor's® MidCap 400 Index, which advanced 10.19%. A large overweighting in telecommunication services - the index's best-performing sector - provided the biggest contribution to relative performance, with stocks such as Qwest Communications and AT&T among the top performers. Favorable stock selection in materials, health care and industrials also contributed. Fertilizer producer Potash Corp. of Saskatchewan provided the biggest lift, with genetically engineered seed company Monsanto helping as well, as both stocks rose on growing demand for corn to produce ethanol. Significant upside also came from health maintenance organization Humana. On the downside, minimal exposure to utilities and real estate investment trusts had a sizable negative effect. Poor stock selection in the volatile energy sector also hurt, with energy services contractor Halliburton, which I ultimately sold, and coal producer Massey Energy among the notable detractors. Omnicare, a provider of on-site pharmacy services at elder-care facilities, struggled with multiple issues and was the fund's largest detractor. Electronics retailer Circuit City Stores also held back results, and I subsequently sold the position. Of the stocks mentioned, only Omnicare was an index component.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the 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 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 (November 1, 2006 to April 30, 2007).
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 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 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. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Beginning
Account Value
November 1, 2006 | Ending
Account Value
April 30, 2007 | Expenses Paid
During Period*
November 1, 2006
to April 30, 2007 |
Actual | $ 1,000.00 | $ 1,137.60 | $ 4.51 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,020.58 | $ 4.26 |
* Expenses are equal to the Fund's annualized expense ratio of .85%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Qwest Communications International, Inc. | 3.5 | 4.2 |
Comverse Technology, Inc. | 2.2 | 2.1 |
Whirlpool Corp. | 2.1 | 1.4 |
Humana, Inc. | 2.1 | 1.4 |
NCR Corp. | 2.1 | 2.1 |
St. Jude Medical, Inc. | 2.0 | 1.8 |
Valero Energy Corp. | 1.8 | 1.3 |
Microchip Technology, Inc. | 1.4 | 1.4 |
CVS Corp. | 1.3 | 1.0 |
Omnicare, Inc. | 1.3 | 1.8 |
| 19.8 | |
Top Five Market Sectors as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 25.6 | 22.5 |
Health Care | 13.3 | 12.8 |
Energy | 12.3 | 10.8 |
Consumer Discretionary | 11.2 | 12.1 |
Industrials | 10.7 | 12.9 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2007* | As of October 31, 2006** |
| Stocks 99.7% | | | Stocks 96.5% | |
| Short-Term
Investments and
Net Other Assets 0.3% | | | Short-Term
Investments and
Net Other Assets 3.5% | |
* Foreign investments | 16.2% | | ** Foreign investments | 15.1% | |
Annual Report
Investments April 30, 2007
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 11.2% |
Auto Components - 0.4% |
Visteon Corp. (a)(e) | 7,050,000 | | $ 64,296 |
Automobiles - 0.3% |
Ford Motor Co. (d) | 6,000,000 | | 48,240 |
Hotels, Restaurants & Leisure - 2.9% |
Gaylord Entertainment Co. (a) | 1,300,000 | | 71,240 |
Life Time Fitness, Inc. (a)(d) | 1,500,000 | | 77,100 |
Morgans Hotel Group Co. (a)(d)(e) | 3,350,000 | | 74,203 |
Penn National Gaming, Inc. (a)(d) | 2,000,000 | | 96,680 |
Royal Caribbean Cruises Ltd. | 1,500,000 | | 62,355 |
Starbucks Corp. (a) | 2,000,000 | | 62,040 |
| | 443,618 |
Household Durables - 2.1% |
Whirlpool Corp. (d) | 3,000,000 | | 318,090 |
Internet & Catalog Retail - 1.2% |
Blue Nile, Inc. (a)(d)(e) | 1,738,800 | | 81,828 |
GSI Commerce, Inc. (a)(e) | 4,400,000 | | 97,240 |
| | 179,068 |
Media - 1.9% |
Cinemark Holdings, Inc. | 3,000,000 | | 56,700 |
Lamar Advertising Co. Class A (d) | 1,000,000 | | 60,340 |
National CineMedia, Inc. | 3,500,000 | | 92,015 |
R.H. Donnelley Corp. | 900,000 | | 70,281 |
Warner Music Group Corp. | 280,850 | | 4,831 |
| | 284,167 |
Multiline Retail - 0.6% |
Federated Department Stores, Inc. | 2,250,000 | | 98,820 |
Specialty Retail - 1.8% |
bebe Stores, Inc. | 300,000 | | 5,250 |
Bed Bath & Beyond, Inc. (a) | 1,500,000 | | 61,110 |
Eddie Bauer Holdings, Inc. (a) | 1,424,900 | | 18,196 |
Gamestop Corp. Class A (a) | 2,500,000 | | 82,925 |
Staples, Inc. | 4,000,000 | | 99,200 |
| | 266,681 |
TOTAL CONSUMER DISCRETIONARY | | 1,702,980 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 3.2% |
Food & Staples Retailing - 1.7% |
CVS Corp. | 5,500,000 | | $ 199,320 |
Rite Aid Corp. (d) | 11,000,000 | | 67,540 |
| | 266,860 |
Food Products - 1.2% |
Bunge Ltd. | 750,000 | | 56,820 |
Hain Celestial Group, Inc. (a)(e) | 2,000,000 | | 60,060 |
Tyson Foods, Inc. Class A | 3,000,000 | | 62,880 |
| | 179,760 |
Personal Products - 0.3% |
Bare Escentuals, Inc. | 1,225,000 | | 49,527 |
TOTAL CONSUMER STAPLES | | 496,147 |
ENERGY - 12.3% |
Energy Equipment & Services - 3.9% |
GlobalSantaFe Corp. | 1,000,000 | | 63,930 |
National Oilwell Varco, Inc. (a) | 1,551,250 | | 131,624 |
Noble Corp. | 1,000,000 | | 84,210 |
North American Energy Partners, Inc. (a)(e) | 2,000,000 | | 42,292 |
Pride International, Inc. (a) | 2,000,037 | | 65,621 |
Transocean, Inc. (a) | 1,000,000 | | 86,200 |
Weatherford International Ltd. (a) | 2,200,000 | | 115,478 |
| | 589,355 |
Oil, Gas & Consumable Fuels - 8.4% |
Arch Coal, Inc. (d) | 2,250,000 | | 81,158 |
Aventine Renewable Energy Holdings, Inc. (d)(e) | 3,137,915 | | 60,279 |
EOG Resources, Inc. | 1,500,000 | | 110,160 |
Hess Corp. | 1,500,000 | | 85,125 |
Massey Energy Co. | 2,756,800 | | 74,241 |
OAO Gazprom sponsored ADR | 2,000,000 | | 78,600 |
Peabody Energy Corp. | 3,000,000 | | 143,940 |
SXR Uranium One, Inc. (a) | 4,000,000 | | 60,005 |
Ultra Petroleum Corp. (a) | 2,500,000 | | 141,800 |
Valero Energy Corp. | 4,000,000 | | 280,920 |
VeraSun Energy Corp. (d) | 3,214,891 | | 64,073 |
Western Refining, Inc. (d) | 2,500,000 | | 99,050 |
| | 1,279,351 |
TOTAL ENERGY | | 1,868,706 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - 6.7% |
Capital Markets - 0.7% |
Julius Baer Holding AG (Bearer) | 1,500,000 | | $ 105,435 |
Commercial Banks - 1.1% |
SVB Financial Group (a) | 1,069,818 | | 54,796 |
Wintrust Financial Corp. (e) | 1,325,300 | | 56,961 |
Zions Bancorp | 750,000 | | 61,350 |
| | 173,107 |
Diversified Financial Services - 0.5% |
Chicago Mercantile Exchange Holdings, Inc. Class A | 150,000 | | 77,513 |
Insurance - 3.6% |
AFLAC, Inc. | 1,558,900 | | 80,034 |
Axis Capital Holdings Ltd. | 3,000,000 | | 111,300 |
Everest Re Group Ltd. | 1,250,000 | | 125,800 |
Montpelier Re Holdings Ltd. | 4,250,000 | | 77,605 |
W.R. Berkley Corp. | 3,050,000 | | 99,095 |
Willis Group Holdings Ltd. | 1,350,000 | | 55,377 |
| | 549,211 |
Real Estate Management & Development - 0.5% |
Move, Inc. (a)(e) | 15,000,000 | | 69,600 |
Thrifts & Mortgage Finance - 0.3% |
Hudson City Bancorp, Inc. | 4,000,000 | | 53,280 |
TOTAL FINANCIALS | | 1,028,146 |
HEALTH CARE - 13.3% |
Biotechnology - 1.2% |
Celgene Corp. (a) | 1,750,000 | | 107,030 |
Genentech, Inc. (a) | 1,000,000 | | 79,990 |
| | 187,020 |
Health Care Equipment & Supplies - 4.3% |
Advanced Medical Optics, Inc. (a) | 1,850,000 | | 74,796 |
Align Technology, Inc. (a)(d)(e) | 5,000,000 | | 113,300 |
Intuitive Surgical, Inc. (a)(d) | 500,000 | | 64,830 |
Mentor Corp. | 2,000,000 | | 77,820 |
St. Jude Medical, Inc. (a) | 7,000,000 | | 299,530 |
Thoratec Corp. (a) | 1,444,278 | | 28,337 |
| | 658,613 |
Health Care Providers & Services - 5.4% |
Brookdale Senior Living, Inc. | 1,175,189 | | 53,365 |
Healthspring, Inc. (a)(e) | 3,400,000 | | 79,968 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Humana, Inc. (a) | 5,000,000 | | $ 316,200 |
McKesson Corp. | 1,106,532 | | 65,097 |
Medco Health Solutions, Inc. (a) | 1,500,000 | | 117,030 |
Omnicare, Inc. (d) | 6,000,000 | | 199,020 |
| | 830,680 |
Health Care Technology - 0.7% |
IMS Health, Inc. | 3,500,000 | | 102,655 |
Pharmaceuticals - 1.7% |
Adams Respiratory Therapeutics, Inc. (a) | 1,475,000 | | 55,327 |
Allergan, Inc. | 900,000 | | 109,080 |
Medicis Pharmaceutical Corp. Class A | 120,000 | | 3,648 |
Nastech Pharmaceutical Co., Inc. (a)(d) | 400,000 | | 5,276 |
Sepracor, Inc. (a) | 1,500,000 | | 80,520 |
| | 253,851 |
TOTAL HEALTH CARE | | 2,032,819 |
INDUSTRIALS - 10.7% |
Aerospace & Defense - 1.5% |
Precision Castparts Corp. | 1,250,000 | | 130,138 |
Rockwell Collins, Inc. | 1,500,000 | | 98,505 |
| | 228,643 |
Airlines - 0.0% |
Southwest Airlines Co. | 185,000 | | 2,655 |
Commercial Services & Supplies - 4.4% |
Allied Waste Industries, Inc. | 10,000,000 | | 133,700 |
American Reprographics Co. (a)(e) | 3,000,000 | | 99,600 |
CDI Corp. (e) | 2,000,000 | | 59,240 |
Cintas Corp. | 2,500,000 | | 93,675 |
Corporate Executive Board Co. | 1,000,000 | | 63,640 |
CoStar Group, Inc. (a)(d)(e) | 1,456,903 | | 71,111 |
Knoll, Inc. | 1,339,398 | | 31,101 |
Waste Management, Inc. | 3,000,000 | | 112,230 |
| | 664,297 |
Construction & Engineering - 2.1% |
Chicago Bridge & Iron Co. NV (NY Shares) | 3,750,000 | | 129,863 |
Fluor Corp. | 1,100,000 | | 105,182 |
Quanta Services, Inc. (a) | 3,000,000 | | 82,470 |
| | 317,515 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Electrical Equipment - 0.2% |
Emerson Electric Co. | 110,000 | | $ 5,169 |
Evergreen Solar, Inc. (a)(d) | 3,000,000 | | 29,310 |
| | 34,479 |
Machinery - 0.4% |
Manitowoc Co., Inc. | 1,000,000 | | 68,230 |
Marine - 0.9% |
American Commercial Lines, Inc. (a) | 2,165,214 | | 63,809 |
Kirby Corp. (a) | 1,750,000 | | 66,150 |
| | 129,959 |
Road & Rail - 1.2% |
Burlington Northern Santa Fe Corp. | 1,250,000 | | 109,425 |
Landstar System, Inc. | 1,500,000 | | 72,465 |
| | 181,890 |
TOTAL INDUSTRIALS | | 1,627,668 |
INFORMATION TECHNOLOGY - 25.6% |
Communications Equipment - 5.1% |
Adtran, Inc. | 3,200,000 | | 81,440 |
Alcatel-Lucent SA sponsored ADR | 5,000,000 | | 66,250 |
Ciena Corp. (a) | 2,500,000 | | 72,900 |
Comverse Technology, Inc. (a)(e) | 15,000,000 | | 340,200 |
Juniper Networks, Inc. (a) | 7,000,000 | | 156,520 |
MasTec, Inc. (a)(e) | 5,399,584 | | 61,933 |
| | 779,243 |
Computers & Peripherals - 2.8% |
NCR Corp. (a) | 6,250,000 | | 315,000 |
Sun Microsystems, Inc. (a) | 20,000,000 | | 104,400 |
| | 419,400 |
Electronic Equipment & Instruments - 5.3% |
Agilent Technologies, Inc. (a) | 4,000,000 | | 137,480 |
Amphenol Corp. Class A | 4,000,000 | | 140,440 |
Arrow Electronics, Inc. (a) | 2,200,000 | | 86,944 |
Benchmark Electronics, Inc. (a) | 3,000,000 | | 63,540 |
Celestica, Inc. (sub. vtg.) (a) | 7,000,000 | | 46,860 |
Flextronics International Ltd. (a) | 15,000,000 | | 167,250 |
Solectron Corp. (a)(e) | 50,000,000 | | 167,500 |
| | 810,014 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - 1.2% |
Akamai Technologies, Inc. (a) | 1,500,000 | | $ 66,120 |
SAVVIS, Inc. (a) | 2,301,700 | | 118,699 |
| | 184,819 |
IT Services - 1.9% |
Cognizant Technology Solutions Corp. Class A (a) | 1,000,000 | | 89,400 |
Telvent GIT SA (a)(e) | 2,750,000 | | 52,333 |
Unisys Corp. (a) | 10,000,000 | | 78,400 |
WNS Holdings Ltd. ADR | 2,250,000 | | 59,805 |
| | 279,938 |
Office Electronics - 0.5% |
Xerox Corp. (a) | 4,000,000 | | 74,000 |
Semiconductors & Semiconductor Equipment - 7.6% |
Advanced Micro Devices, Inc. (a) | 4,000,000 | | 55,280 |
Altera Corp. | 6,000,000 | | 135,240 |
Broadcom Corp. Class A (a) | 3,000,000 | | 97,650 |
FormFactor, Inc. (a) | 1,500,000 | | 61,935 |
Integrated Device Technology, Inc. (a) | 4,495,629 | | 67,345 |
LSI Logic Corp. (a) | 15,000,000 | | 127,500 |
Marvell Technology Group Ltd. (a) | 5,000,000 | | 80,650 |
Microchip Technology, Inc. (d) | 5,250,000 | | 211,785 |
ON Semiconductor Corp. (a) | 9,000,000 | | 96,390 |
PMC-Sierra, Inc. (a) | 8,700,000 | | 67,251 |
Renewable Energy Corp. AS (d) | 3,500,000 | | 101,188 |
Samsung Electronics Co. Ltd. | 100,000 | | 61,156 |
| | 1,163,370 |
Software - 1.2% |
BEA Systems, Inc. (a) | 5,000,000 | | 58,950 |
Citrix Systems, Inc. (a) | 2,000,000 | | 65,200 |
TIBCO Software, Inc. (a) | 6,500,000 | | 59,280 |
| | 183,430 |
TOTAL INFORMATION TECHNOLOGY | | 3,894,214 |
MATERIALS - 7.8% |
Chemicals - 3.8% |
Agrium, Inc. | 2,000,000 | | 77,520 |
Air Products & Chemicals, Inc. | 1,100,000 | | 84,150 |
Chemtura Corp. | 6,000,000 | | 66,180 |
Monsanto Co. | 3,000,000 | | 176,970 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Chemicals - continued |
Nitto Denko Corp. | 110,000 | | $ 4,855 |
Potash Corp. of Saskatchewan, Inc. | 500,000 | | 89,760 |
Tokuyama Corp. | 5,000,000 | | 74,972 |
| | 574,407 |
Metals & Mining - 4.0% |
Arcelor Mittal (d) | 2,500,000 | | 133,550 |
Commercial Metals Co. | 2,400,000 | | 80,472 |
Gibraltar Industries, Inc. | 230,000 | | 5,129 |
Gold Fields Ltd. sponsored ADR (d) | 7,500,000 | | 134,775 |
Reliance Steel & Aluminum Co. | 1,750,000 | | 103,950 |
Titanium Metals Corp. | 2,250,000 | | 77,693 |
United States Steel Corp. | 750,000 | | 76,155 |
| | 611,724 |
TOTAL MATERIALS | | 1,186,131 |
TELECOMMUNICATION SERVICES - 8.3% |
Diversified Telecommunication Services - 7.8% |
AT&T, Inc. | 5,000,000 | | 193,600 |
Cogent Communications Group, Inc. (a) | 2,285,583 | | 58,191 |
Global Crossing Ltd. (a)(e) | 3,662,482 | | 105,626 |
Level 3 Communications, Inc. (a) | 25,000,000 | | 139,000 |
Prysmian SPA | 228,900 | | 4,685 |
Qwest Communications International, Inc. (a)(d) | 60,000,000 | | 532,797 |
Time Warner Telecom, Inc. Class A (sub. vtg.) (a)(d)(e) | 7,500,000 | | 153,750 |
| | 1,187,649 |
Wireless Telecommunication Services - 0.5% |
NII Holdings, Inc. (a) | 1,000,000 | | 76,750 |
TOTAL TELECOMMUNICATION SERVICES | | 1,264,399 |
UTILITIES - 0.6% |
Independent Power Producers & Energy Traders - 0.6% |
AES Corp. (a) | 4,000,000 | | 87,960 |
TOTAL COMMON STOCKS (Cost $11,804,111) | 15,189,170 |
Money Market Funds - 3.8% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 5.29% (b) | 139,570,336 | | $ 139,570 |
Fidelity Securities Lending Cash Central Fund, 5.31% (b)(c) | 432,827,754 | | 432,828 |
TOTAL MONEY MARKET FUNDS (Cost $572,398) | 572,398 |
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $12,376,509) | | 15,761,568 |
NET OTHER ASSETS - (3.5)% | | (527,761) |
NET ASSETS - 100% | $ 15,233,807 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 11,096 |
Fidelity Securities Lending Cash Central Fund | 2,256 |
Total | $ 13,352 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Aeropostale, Inc. | $ 89,059 | $ - | $ 88,624 | $ - | $ - |
Align Technology, Inc. | - | 68,097 | - | - | 113,300 |
American
Reprographics Co. | 35,470 | 63,599 | - | - | 99,600 |
Aventine Renewable Energy Holdings, Inc. | - | 60,543 | - | - | 60,279 |
Benchmark Electronics, Inc. | 92,138 | - | 9,091 | - | - |
Blue Nile, Inc. | 60,197 | 264 | - | - | 81,828 |
Broadwing Corp. | - | 76,903 | 95,026 | - | - |
CDI Corp. | 31,749 | 23,981 | 10 | 793 | 59,240 |
Comverse Technology, Inc. | 252,698 | 70,656 | - | - | 340,200 |
CoStar Group, Inc. | - | 64,643 | - | - | 71,111 |
FileNET Corp. | 48,660 | 33,170 | 105,733 | - | - |
Global Crossing Ltd. | - | 80,380 | - | - | 105,626 |
GSI Commerce, Inc. | 72,488 | 3,971 | 994 | - | 97,240 |
Hain Celestial Group, Inc. | - | 53,452 | - | - | 60,060 |
Healthspring, Inc. | 59,301 | - | 2,127 | - | 79,968 |
Homestore, Inc. | 92,100 | - | - | - | - |
MasTec, Inc. | 36,990 | 27,310 | 490 | - | 61,933 |
Morgans Hotel
Group Co. | 41,669 | 16,121 | - | - | 74,203 |
Move, Inc. | - | - | - | - | 69,600 |
North American Energy Partners, Inc. | - | 31,898 | - | - | 42,292 |
Novacea, Inc. | - | 11,375 | 12,179 | - | - |
Omnicare, Inc. | 127,598 | 191,318 | 23,777 | 472 | - |
OXiGENE, Inc. | 8,640 | - | 9,556 | - | - |
Solectron Corp. | 162,000 | 30,400 | - | - | 167,500 |
Telvent GIT SA | 38,835 | - | 459 | - | 52,333 |
Time Warner Telecom, Inc. Class A (sub. vtg.) | 125,775 | - | - | - | 153,750 |
United Surgical Partners International, Inc. | - | 67,691 | 79,801 | - | - |
Visteon Corp. | 44,100 | 388 | 3,530 | - | 64,296 |
Wintrust Financial Corp. | 61,591 | 9,968 | 3,305 | 397 | 56,961 |
Total | $ 1,481,058 | $ 986,128 | $ 434,702 | $ 1,662 | $ 1,911,320 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 83.8% |
Bermuda | 4.0% |
Canada | 3.0% |
Netherlands | 1.8% |
Singapore | 1.1% |
Others (individually less than 1%) | 6.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | April 30, 2007 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $416,171) - See accompanying schedule: Unaffiliated issuers (cost $10,237,287) | $ 13,277,850 | |
Fidelity Central Funds (cost $572,398) | 572,398 | |
Other affiliated issuers (cost $1,566,824) | 1,911,320 | |
Total Investments (cost $12,376,509) | | $ 15,761,568 |
Cash | | 1,454 |
Foreign currency held at value (cost $46,214) | | 46,518 |
Receivable for investments sold | | 34,773 |
Receivable for fund shares sold | | 18,476 |
Dividends receivable | | 3,855 |
Distributions receivable from Fidelity Central Funds | | 822 |
Prepaid expenses | | 38 |
Other receivables | | 454 |
Total assets | | 15,867,958 |
| | |
Liabilities | | |
Payable for investments purchased | $ 167,547 | |
Payable for fund shares redeemed | 21,897 | |
Accrued management fee | 8,765 | |
Other affiliated payables | 2,853 | |
Other payables and accrued expenses | 261 | |
Collateral on securities loaned, at value | 432,828 | |
Total liabilities | | 634,151 |
| | |
Net Assets | | $ 15,233,807 |
Net Assets consist of: | | |
Paid in capital | | $ 11,080,351 |
Accumulated net investment loss | | (120) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 768,672 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,384,904 |
Net Assets, for 469,698 shares outstanding | | $ 15,233,807 |
Net Asset Value, offering price and redemption price per share ($15,233,807 ÷ 469,698 shares) | | $ 32.43 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended April 30, 2007 |
| | |
Investment Income | | |
Dividends (including $1,662 earned from other affiliated issuers) | | $ 66,708 |
Special dividends | | 7,500 |
Interest | | 311 |
Income from Fidelity Central Funds | | 13,352 |
Total income | | 87,871 |
| | |
Expenses | | |
Management fee
Basic fee | $ 72,271 | |
Performance adjustment | 2,082 | |
Transfer agent fees | 29,957 | |
Accounting and security lending fees | 1,426 | |
Custodian fees and expenses | 329 | |
Independent trustees' compensation | 43 | |
Depreciation in deferred trustee compensation account | (3) | |
Registration fees | 215 | |
Audit | 103 | |
Legal | 204 | |
Interest | 1 | |
Miscellaneous | 82 | |
Total expenses before reductions | 106,710 | |
Expense reductions | (1,356) | 105,354 |
Net investment income (loss) | | (17,483) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 1,053,032 | |
Other affiliated issuers | 47,539 | |
Foreign currency transactions | 61 | |
Total net realized gain (loss) | | 1,100,632 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 459,421 | |
Assets and liabilities in foreign currencies | (190) | |
Total change in net unrealized appreciation (depreciation) | | 459,231 |
Net gain (loss) | | 1,559,863 |
Net increase (decrease) in net assets resulting from operations | | $ 1,542,380 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
April 30,
2007 | Year ended
April 30,
2006 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (17,483) | $ (3,132) |
Net realized gain (loss) | 1,100,632 | 679,739 |
Change in net unrealized appreciation (depreciation) | 459,231 | 2,868,432 |
Net increase (decrease) in net assets resulting
from operations | 1,542,380 | 3,545,039 |
Distributions to shareholders from net investment income | - | (14,639) |
Distributions to shareholders from net realized gain | (566,903) | (218,717) |
Total distributions | (566,903) | (233,356) |
Share transactions
Proceeds from sales of shares | 3,455,645 | 3,077,335 |
Reinvestment of distributions | 557,228 | 229,258 |
Cost of shares redeemed | (2,407,990) | (1,907,242) |
Net increase (decrease) in net assets resulting from share transactions | 1,604,883 | 1,399,351 |
Redemption fees | 236 | 181 |
Total increase (decrease) in net assets | 2,580,596 | 4,711,215 |
| | |
Net Assets | | |
Beginning of period | 12,653,211 | 7,941,996 |
End of period (including accumulated net investment loss of $120 and accumulated net investment loss of $106, respectively) | $ 15,233,807 | $ 12,653,211 |
Other Information Shares | | |
Sold | 117,462 | 112,062 |
Issued in reinvestment of distributions | 19,139 | 8,722 |
Redeemed | (82,733) | (73,167) |
Net increase (decrease) | 53,868 | 47,617 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended April 30, | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value,
beginning of period | $ 30.43 | $ 21.57 | $ 21.07 | $ 16.80 | $ 21.42 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.04) E | (.01) F | .05 G | .07 | .13 |
Net realized and unrealized gain (loss) | 3.38 | 9.51 | .52 | 4.29 | (4.66) |
Total from investment operations | 3.34 | 9.50 | .57 | 4.36 | (4.53) |
Distributions from net investment income | - | (.04) | (.07) | (.09) | (.09) |
Distributions from net realized gain | (1.34) | (.60) | - | - | - |
Total distributions | (1.34) | (.64) | (.07) | (.09) | (.09) |
Redemption fees added to paid
in capital B | - I | - I | - I | - I | - I |
Net asset value, end of period | $ 32.43 | $ 30.43 | $ 21.57 | $ 21.07 | $ 16.80 |
Total Return A | 11.53% | 44.52% | 2.69% | 25.99% | (21.17)% |
Ratios to Average Net Assets C, H | | | | | |
Expenses before reductions | .83% | .72% | .71% | .70% | .74% |
Expenses net of fee waivers,
if any | .83% | .72% | .71% | .70% | .74% |
Expenses net of all reductions | .82% | .69% | .62% | .65% | .66% |
Net investment income (loss) | (.14)% E | (.03)% F | .22% G | .34% | .75% |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 15,234 | $ 12,653 | $ 7,942 | $ 8,213 | $ 5,507 |
Portfolio turnover rate D | 52% | 74% | 186% | 137% | 120% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.20)%.
F Investment income per share reflects a special dividend which amounted to $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.20)%.
G Investment income per share reflects a special dividend which amounted to $.01 per share and an in-kind dividend received in a corporate reorganization which amounted to $.01 per share. Excluding these dividends, the ratio of net investment income (loss) to average net assets would have been .08%.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended April 30, 2007
(Amounts in thousands except ratios)
1. Organization.
Fidelity Mid-Cap Stock Fund (the Fund) is a fund of Fidelity Commonwealth Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds,
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
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 for processing shareholder transactions 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 may include proceeds received
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 3,766,809 | |
Unrealized depreciation | (393,378) | |
Net unrealized appreciation (depreciation) | 3,373,431 | |
Undistributed ordinary income | 131,215 | |
Undistributed long-term capital gain | 605,677 | |
| | |
Cost for federal income tax purposes | $ 12,388,137 | |
The tax character of distributions paid was as follows:
| April 30, 2007 | April 30, 2006 |
Ordinary Income | $ 160,327 | $ 69,318 |
Long-term Capital Gains | 406,576 | 164,038 |
Total | $ 566,903 | $ 233,356 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and
Annual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncements - continued
disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $7,751,933 and $6,587,039, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .58% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the transfer agent fees were equivalent to an annual rate of .23% of average net assets.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $103 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding.
The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted
Average Interest
Rate | Interest Expense |
Borrower | $ 7,728 | 5.12% | $ 1 |
Annual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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 $32 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of Income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $2,256.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $199 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $39 and $942, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
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.
At the end of the period, the Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 28% of the total outstanding shares of the Fund.
The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.
In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust and Shareholders of Fidelity Mid-Cap Stock Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Mid-Cap Stock Fund (the Fund), a fund of Fidelity Commonwealth Trust, including the schedule of investments as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Mid-Cap Stock Fund as of April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 353 funds advised by FMR or an affiliate. Mr. Curvey oversees 314 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (76) |
| Year of Election or Appointment: 1974 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). |
James C. Curvey (71) |
| Year of Election or Appointment: 2007 Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (58) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (70) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (66) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (60) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (62) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-
1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (67) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (63) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Commonwealth Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-
present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Kimberley H. Monasterio (43) |
| Year of Election or Appointment: 2007 President and Treasurer of Mid-Cap Stock. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Dwight D. Churchill (53) |
| Year of Election or Appointment: 2005 Vice President of Mid-Cap Stock. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR. |
Bruce T. Herring (41) |
| Year of Election or Appointment: 2006 Vice President of Mid-Cap Stock. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Shep Perkins (36) |
| Year of Election or Appointment: 2005 Vice President of Mid-Cap Stock. Prior to assuming his current responsibilities, Mr. Perkins served as a research analyst and portfolio manager. Mr. Perkins also serves as Vice President of FMR (2006) FMR Co., Inc. (2004). |
|
Eric D. Roiter (58) |
| Year of Election or Appointment: 1998 Secretary of Mid-Cap Stock. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
Scott C. Goebel (39) |
| Year of Election or Appointment: 2007 Assistant Secretary of Mid-Cap Stock. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Mid-Cap Stock. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Mid-Cap Stock. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (59) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Mid-Cap Stock. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-
present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Mid-Cap Stock. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (37) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Mid-Cap Stock. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (40) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Mid-Cap Stock. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (53) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Mid-Cap Stock. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Gary W. Ryan (48) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Mid-Cap Stock. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
Salvatore Schiavone (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Mid-Cap Stock. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of Fidelity Mid-Cap Stock Fund voted to pay on June 4, 2007, to shareholders of record at the opening of business on June 1, 2007, a distribution of $1.57 per share derived from capital gains realized from sales of portfolio securities.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended April 30, 2007 $838,213,760, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 29% and 40% of the dividends distributed in June and December, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 30% and 52% of the dividends distributed in June and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
MCS-UANN-0607
1.784726.104
Fidelity®
Small Cap Retirement
Fund
Annual Report
April 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended April 30, 2007 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity® Small Cap Retirement Fund | 6.36% | 8.31% | 11.82% |
A From September 26, 2000.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Small Cap Retirement Fund on September 26, 2000, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Charles Myers, Portfolio Manager of Fidelity® Small Cap Retirement Fund
It was lucky 13 for the Dow Jones Industrial AverageSM, as the market measure crossed both the 12,000- and 13,000-point thresholds for the first time ever during the 12-month period ending April 30, 2007. It took the Dow more than seven years to move from 11,000 to 12,000, but less than seven months to jump from 12,000 to 13,000. The 1,000-point climb to 13,000 was particularly noteworthy considering the index lost 416 points in one day in late February when Asian markets plunged and domestic subprime mortgage woes spiked. Despite the turbulence, the Dow gained 17.58% for the one-year period overall. Elsewhere, the Standard & Poor's 500SM Index rose 15.24%, falling just shy of its all-time high; the Russell 2000® Index was up 7.83%, topping its all-time best several times during the past year; and the NASDAQ Composite® Index reached a six-year high on its way to a 9.49% increase. The markets' road to prosperity was paved by strong corporate earnings, modest levels of inflation and muted recession concerns. But there were some red flags for stocks as the period drew to a close: Oil prices trended higher, and U.S. economic growth in the first quarter of 2007 was at its slowest pace in four years.
For the 12 months ending April 30, 2007, the fund rose 6.36%, trailing the Russell 2000 Index. Security selection in health care, specifically in health care equipment and services, was by far the biggest negative relative to the index. In consumer discretionary, poor stock picks in consumer durables and apparel also hindered performance. In contrast, stock selection in telecommunication services was helpful. My capital goods and diversified financials stocks - from the industrials and financials sectors, respectively - also contributed. Three individual names stood out as big relative underperformers. Omnicare, the country's largest provider of nursing home pharmacy services and an out-of-benchmark position, fell on a variety of difficulties and management-related problems. DexCom also lagged, as its innovative glucose monitoring device for diabetics failed to gain the market acceptance I expected. DexCom was no longer in the portfolio at period end. Also detracting was Lifetime Brands, a maker of kitchen utensils whose retail business disappointed. In contrast, Cogent Communications Group performed well. This Internet service provider began generating positive cash flows sooner than expected. Payday lender and check-cashing company Dollar Financial also did well, thanks to a successful debt refinancing, as did Domino's Pizza.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the 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 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 (November 1, 2006 to April 30, 2007).
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 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 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. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Beginning
Account Value
November 1, 2006 | Ending
Account Value
April 30, 2007 | Expenses Paid
During Period*
November 1, 2006
to April 30, 2007 |
Actual | $ 1,000.00 | $ 1,101.30 | $ 5.31 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,019.74 | $ 5.11 |
* Expenses are equal to the Fund's annualized expense ratio of 1.02%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
American Reprographics Co. | 9.6 | 0.0 |
Max Re Capital Ltd. | 5.7 | 5.0 |
Dollar Financial Corp. | 5.2 | 4.4 |
Cogent Communications Group, Inc. | 5.1 | 2.6 |
IPC Holdings Ltd. | 4.9 | 4.1 |
Domino's Pizza, Inc. | 4.6 | 5.5 |
j2 Global Communications, Inc. | 4.1 | 3.6 |
Columbus McKinnon Corp. (NY Shares) | 4.0 | 3.0 |
Aspen Insurance Holdings Ltd. | 3.5 | 3.2 |
Carpenter Technology Corp. | 3.2 | 2.9 |
| 49.9 | |
Top Five Market Sectors as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Industrials | 28.2 | 11.8 |
Financials | 27.0 | 23.8 |
Consumer Discretionary | 10.7 | 18.1 |
Information Technology | 8.0 | 6.6 |
Materials | 7.1 | 7.4 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2007* | As of October 31, 2006** |
| Stocks 99.0% | | | Stocks 98.2% | |
| Short-Term
Investments and Net
Other Assets 1.0% | | | Short-Term
Investments and
Net Other Assets 1.8% | |
* Foreign investments | 15.5% | | ** Foreign investments | 13.7% | |
Annual Report
Investments April 30, 2007
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 10.7% |
Hotels, Restaurants & Leisure - 4.6% |
Domino's Pizza, Inc. | 349,600 | | $ 11,274,600 |
Household Durables - 2.8% |
Ethan Allen Interiors, Inc. | 165,000 | | 5,824,500 |
Lifetime Brands, Inc. | 50,200 | | 1,095,364 |
| | 6,919,864 |
Specialty Retail - 1.0% |
Build-A-Bear Workshop, Inc. (a) | 89,600 | | 2,468,480 |
Textiles, Apparel & Luxury Goods - 2.3% |
Steven Madden Ltd. | 79,600 | | 2,368,100 |
Timberland Co. Class A (a) | 122,400 | | 3,159,144 |
| | 5,527,244 |
TOTAL CONSUMER DISCRETIONARY | | 26,190,188 |
CONSUMER STAPLES - 2.7% |
Household Products - 2.7% |
Central Garden & Pet Co. | 61,800 | | 915,258 |
Central Garden & Pet Co. Class A (non-vtg.) (a) | 398,200 | | 5,702,224 |
| | 6,617,482 |
ENERGY - 3.8% |
Oil, Gas & Consumable Fuels - 3.8% |
Goodrich Petroleum Corp. | 82,900 | | 2,912,277 |
Mariner Energy, Inc. (a) | 279,530 | | 6,303,402 |
| | 9,215,679 |
FINANCIALS - 27.0% |
Consumer Finance - 5.2% |
Dollar Financial Corp. (a) | 436,800 | | 12,728,352 |
Insurance - 17.7% |
Aspen Insurance Holdings Ltd. | 330,400 | | 8,758,904 |
Hilb Rogal & Hobbs Co. | 122,500 | | 5,322,625 |
IPC Holdings Ltd. | 399,900 | | 11,989,002 |
Max Re Capital Ltd. | 523,100 | | 14,019,080 |
Montpelier Re Holdings Ltd. | 191,700 | | 3,500,442 |
| | 43,590,053 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 4.1% |
Farmer Mac Class C (non-vtg.) | 244,200 | | $ 6,686,196 |
Washington Federal, Inc. | 140,728 | | 3,336,661 |
| | 10,022,857 |
TOTAL FINANCIALS | | 66,341,262 |
HEALTH CARE - 6.4% |
Health Care Equipment & Supplies - 3.3% |
Align Technology, Inc. (a) | 149,600 | | 3,389,936 |
Microtek Medical Holdings, Inc. (a) | 927,063 | | 4,737,292 |
| | 8,127,228 |
Health Care Providers & Services - 3.1% |
Amedisys, Inc. (a) | 38,466 | | 1,205,909 |
Omnicare, Inc. | 191,804 | | 6,362,139 |
| | 7,568,048 |
TOTAL HEALTH CARE | | 15,695,276 |
INDUSTRIALS - 28.2% |
Commercial Services & Supplies - 12.8% |
American Reprographics Co. (a) | 710,400 | | 23,585,278 |
Copart, Inc. (a) | 84,000 | | 2,434,320 |
Navigant Consulting, Inc. (a) | 289,100 | | 5,544,938 |
| | 31,564,536 |
Construction & Engineering - 0.9% |
URS Corp. (a) | 49,300 | | 2,154,410 |
Electrical Equipment - 1.0% |
EnerSys (a) | 144,700 | | 2,357,163 |
Machinery - 5.6% |
Columbus McKinnon Corp. (NY Shares) (a) | 397,700 | | 9,847,052 |
Force Protection, Inc. (a)(c) | 200,000 | | 3,906,000 |
| | 13,753,052 |
Road & Rail - 2.3% |
Frozen Food Express Industries, Inc. | 423,090 | | 3,490,493 |
Heartland Express, Inc. | 133,433 | | 2,299,051 |
| | 5,789,544 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Trading Companies & Distributors - 5.6% |
UAP Holding Corp. | 257,122 | | $ 7,114,566 |
United Rentals, Inc. (a) | 195,800 | | 6,559,300 |
| | 13,673,866 |
TOTAL INDUSTRIALS | | 69,292,571 |
INFORMATION TECHNOLOGY - 8.0% |
Electronic Equipment & Instruments - 0.8% |
LoJack Corp. (a) | 109,064 | | 2,006,778 |
Internet Software & Services - 5.2% |
j2 Global Communications, Inc. (a) | 353,579 | | 10,168,932 |
Jupitermedia Corp. (a) | 384,500 | | 2,676,120 |
| | 12,845,052 |
IT Services - 0.8% |
CACI International, Inc. Class A (a) | 42,000 | | 1,920,660 |
Office Electronics - 1.2% |
Zebra Technologies Corp. Class A (a) | 71,100 | | 2,829,069 |
TOTAL INFORMATION TECHNOLOGY | | 19,601,559 |
MATERIALS - 7.1% |
Construction Materials - 1.0% |
Eagle Materials, Inc. | 54,200 | | 2,417,862 |
Metals & Mining - 6.1% |
Carpenter Technology Corp. | 65,700 | | 7,974,009 |
Compass Minerals International, Inc. | 30,700 | | 1,054,238 |
Olympic Steel, Inc. | 181,700 | | 6,046,976 |
| | 15,075,223 |
TOTAL MATERIALS | | 17,493,085 |
TELECOMMUNICATION SERVICES - 5.1% |
Diversified Telecommunication Services - 5.1% |
Cogent Communications Group, Inc. (a) | 493,800 | | 12,572,148 |
TOTAL COMMON STOCKS (Cost $202,992,766) | 243,019,250 |
Money Market Funds - 0.6% |
| Shares | | Value |
Fidelity Cash Central Fund, 5.29% (b)
(Cost $1,445,225) | 1,445,225 | | $ 1,445,225 |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $204,437,991) | | 244,464,475 |
NET OTHER ASSETS - 0.4% | | 1,099,615 |
NET ASSETS - 100% | $ 245,564,090 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,906,000 or 1.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Force Protection, Inc. | 12/20/06 | $ 2,350,000 |
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 | $ 213,214 |
Fidelity Securities Lending Cash Central Fund | 78,271 |
Total | $ 291,485 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 84.5% |
Bermuda | 15.5% |
| 100.0% |
Income Tax Information |
At April 30, 2007, the fund had a capital loss carryforward of approximately $1,938,231 all of which will expire on April 30, 2015. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2007 |
| | |
Assets | | |
Investment in securities, at value -
See accompanying schedule: Unaffiliated issuers (cost $202,992,766) | $ 243,019,250 | |
Fidelity Central Funds (cost $1,445,225) | 1,445,225 | |
Total Investments (cost $204,437,991) | | $ 244,464,475 |
Receivable for investments sold | | 6,743,656 |
Receivable for fund shares sold | | 415,219 |
Distributions receivable from Fidelity Central Funds | | 8,626 |
Prepaid expenses | | 751 |
Other receivables | | 862 |
Total assets | | 251,633,589 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,201,642 | |
Payable for fund shares redeemed | 635,880 | |
Accrued management fee | 119,856 | |
Other affiliated payables | 67,847 | |
Other payables and accrued expenses | 44,274 | |
Total liabilities | | 6,069,499 |
| | |
Net Assets | | $ 245,564,090 |
Net Assets consist of: | | |
Paid in capital | | $ 207,651,012 |
Accumulated undistributed net realized gain (loss) on investments | | (2,113,406) |
Net unrealized appreciation (depreciation) on investments | | 40,026,484 |
Net Assets, for 14,290,448 shares outstanding | | $ 245,564,090 |
Net Asset Value, offering price and redemption price per share ($245,564,090 ÷ 14,290,448 shares) | | $ 17.18 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
| Year ended April 30, 2007 |
| | |
Investment Income | | |
Dividends | | $ 1,850,920 |
Interest | | 7,298 |
Income from Fidelity Central Funds | | 291,485 |
Total income | | 2,149,703 |
| | |
Expenses | | |
Management fee
Basic fee | $ 1,711,677 | |
Performance adjustment | (216,172) | |
Transfer agent fees | 787,406 | |
Accounting and security lending fees | 97,160 | |
Custodian fees and expenses | 12,983 | |
Independent trustees' compensation | 809 | |
Registration fees | 25,071 | |
Audit | 52,225 | |
Legal | 6,971 | |
Miscellaneous | 7,273 | |
Total expenses before reductions | 2,485,403 | |
Expense reductions | (39,769) | 2,445,634 |
Net investment income (loss) | | (295,931) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | | (2,013,115) |
Change in net unrealized appreciation (depreciation) on investment securities | | 17,136,771 |
Net gain (loss) | | 15,123,656 |
Net increase (decrease) in net assets resulting from operations | | $ 14,827,725 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended
April 30,
2007 | Year ended
April 30,
2006 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (295,931) | $ (555,050) |
Net realized gain (loss) | (2,013,115) | 31,975,429 |
Change in net unrealized appreciation (depreciation) | 17,136,771 | 17,265,780 |
Net increase (decrease) in net assets resulting
from operations | 14,827,725 | 48,686,159 |
Distributions to shareholders from net investment income | - | (388,846) |
Distributions to shareholders from net realized gain | (24,837,115) | (9,665,347) |
Total distributions | (24,837,115) | (10,054,193) |
Share transactions
Proceeds from sales of shares | 73,317,965 | 106,525,067 |
Reinvestment of distributions | 24,825,060 | 10,047,771 |
Cost of shares redeemed | (89,676,542) | (49,085,946) |
Net increase (decrease) in net assets resulting from share transactions | 8,466,483 | 67,486,892 |
Redemption fees | 66,623 | 78,596 |
Total increase (decrease) in net assets | (1,476,284) | 106,197,454 |
| | |
Net Assets | | |
Beginning of period | 247,040,374 | 140,842,920 |
End of period | $ 245,564,090 | $ 247,040,374 |
Other Information Shares | | |
Sold | 4,604,503 | 6,422,447 |
Issued in reinvestment of distributions | 1,603,686 | 639,694 |
Redeemed | (5,625,082) | (2,970,577) |
Net increase (decrease) | 583,107 | 4,091,564 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended April 30, | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.02 | $ 14.65 | $ 14.18 | $ 10.36 | $ 13.95 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.02) | (.05) | .04 E | (.08) | (.05) |
Net realized and unrealized gain (loss) | .97 | 4.35 | .42 | 3.90 | (3.26) |
Total from investment operations | .95 | 4.30 | .46 | 3.82 | (3.31) |
Distributions from net investment income | - | (.04) | - | - | - |
Distributions from net realized gain | (1.79) | (.90) | - | - | (.29) |
Total distributions | (1.79) | (.94) | - | - | (.29) |
Redemption fees added to paid in capital B | - G | .01 | .01 | - G | .01 |
Net asset value, end of period | $ 17.18 | $ 18.02 | $ 14.65 | $ 14.18 | $ 10.36 |
Total Return A | 6.36% | 30.51% | 3.31% | 36.87% | (24.06)% |
Ratios to Average Net Assets C, F | | | | | |
Expenses before reductions | 1.04% | 1.06% | 1.16% | 1.45% | 1.71% |
Expenses net of fee waivers,
if any | 1.04% | 1.05% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.02% | .99% | 1.00% | .99% | .86% |
Net investment income (loss) | (.12)% | (.29)% | .29% E | (.63)% | (.49)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 245,564 | $ 247,040 | $ 140,843 | $ 91,777 | $ 51,469 |
Portfolio turnover rate D | 106% | 191% | 94% | 151% | 242% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects special dividends which amounted to $.11 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (.49)%.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended April 30, 2007
1. Organization.
Fidelity Small Cap Retirement Fund (the Fund) is a fund of Fidelity Commonwealth Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its' affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available,
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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 for processing shareholder transactions 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 may 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 42,397,470 | |
Unrealized depreciation | (2,546,162) | |
Net unrealized appreciation (depreciation) | 39,851,308 | |
Capital loss carryforward | (1,938,231) | |
| | |
Cost for federal income tax purposes | $ 204,613,167 | |
The tax character of distributions paid was as follows:
| April 30, 2007 | April 30, 2006 |
Ordinary Income | $ 7,909,025 | $ 1,937,852 |
Long-term Capital Gains | 16,928,090 | 8,116,341 |
Total | $ 24,837,115 | $ 10,054,193 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $251,009,998 and $264,127,472, respectively.
Annual Report
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .62% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .33% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,389 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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 $603 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
8. Security Lending.
The Fund lends portfolio securities 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $78,271.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $10,050 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $2,734 and $23,483, respectively.
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.
Annual Report
10. Other - continued
The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.
In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust and Shareholders of Fidelity Small Cap Retirement Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Small Cap Retirement Fund (the Fund), a fund of Fidelity Commonwealth Trust, including the schedule of investments as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Small Cap Retirement Fund as of April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 14, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 353 funds advised by FMR or an affiliate. Mr. Curvey oversees 314 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (76) |
| Year of Election or Appointment: 1974 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). |
James C. Curvey (71) |
| Year of Election or Appointment: 2007 Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (58) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (70) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (66) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (60) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (62) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-
1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (67) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (63) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Commonwealth Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Kimberley H. Monasterio (43) |
| Year of Election or Appointment: 2007 President and Treasurer of Small Cap Retirement. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-
2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Dwight D. Churchill (53) |
| Year of Election or Appointment: 2005 Vice President of Small Cap Retirement. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR. |
Bruce T. Herring (41) |
| Year of Election or Appointment: 2006 Vice President of Small Cap Retirement. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Charles Myers (31) |
| Year of Election or Appointment: 2006 Vice President of Small Cap Retirement. Prior to assuming his current responsibilities, Mr. Myers worked as a research analyst, portfolio assistant and manager. Mr. Myers also serves as Vice President of FMR and FMR Co. Inc., (2006). |
Eric D. Roiter (58) |
| Year of Election or Appointment: 1998 Secretary of Small Cap Retirement. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
Scott C. Goebel (39) |
| Year of Election or Appointment: 2007 Assistant Secretary of Small Cap Retirement. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Small Cap Retirement. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Small Cap Retirement. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-
present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (59) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Small Cap Retirement. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-
present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Small Cap Retirement. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (37) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Small Cap Retirement. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (40) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Retirement. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (53) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Small Cap Retirement. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Gary W. Ryan (48) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Retirement. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
Salvatore Schiavone (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Retirement. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The fund designates 4% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 5% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
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Making Changes
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(such as changing name, address, bank, etc.)
Fidelity Investments
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Cincinnati, OH 45277-0002
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For Non-Retirement
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Fidelity Investments
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Fidelity Investments
Attn: Distribution Services
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Fidelity Investments
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Fidelity Investments
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General Correspondence
Fidelity Investments
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Merrimack, NH 03054-0500
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For Retirement
Accounts
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Fidelity Investments
P.O. Box 770001
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Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
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Annual Report
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Annual Report
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www.fidelity.com
SMR-UANN-0607
1.784729.104
Fidelity®
Small Cap Stock
Fund
Annual Report
April 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended April 30, 2007 | Past 1
year | Past 5
years | Life of
fund A |
Fidelity® Small Cap Stock Fund | 4.98% | 11.65% | 11.78% |
A From March 12, 1998.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Small Cap Stock Fund on March 12, 1998, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Paul Antico, Portfolio Manager of Fidelity® Small Cap Stock Fund
The Dow Jones Industrial AverageSM crossed both the 12,000- and 13,000-point thresholds for the first time ever during the 12-month period ending April 30, 2007. It took the Dow more than seven years to move from 11,000 to 12,000, but less than seven months to jump from 12,000 to 13,000, a rise made considerably noteworthy considering the index lost 416 points in one day in late February when Asian markets plunged and domestic subprime mortgage woes spiked. Despite the turbulence, the Dow gained 17.58% for the one-year period overall. Elsewhere, the Standard & Poor's 500SM Index rose 15.24%, the Russell 2000® Index was up 7.83% and the NASDAQ Composite® Index increased 9.49%. The markets' road to prosperity was paved by strong corporate earnings, modest levels of inflation and muted recession concerns. But there were some red flags for stocks as the period drew to a close: Oil prices trended higher, and U.S. economic growth in the first quarter of 2007 was at its slowest pace in four years.
The fund gained 4.98% during the past 12 months. A weak start to the period, partially offset by a stronger second half, contributed to its underperformance of the Russell benchmark. Stock picking in software and services and overweighting the technology sector hurt results the most. Stock selection in health care equipment and services, and underexposure to materials and real estate, also detracted. Some of the fund's largest individual detractors were tech stocks, including SiRF Technology, a maker of semiconductors for global positioning systems (GPS), and SOITEC, which makes chips that run faster and use less energy. Elsewhere, The Children's Place did poorly after falling short of expected same-store sales comparisons and being hurt by weather-related merchandising issues and problems related to the redesign of its managed Disney Stores. On the positive side, the fund's wind-power-related investments did extremely well, led by Denmark's Vestas Wind Systems, German company Repower Systems and UK-listed Clipper Windpower. Several stocks mentioned here were no longer in the fund at period end.
Note to shareholders: The fund was closed to most new accounts as of June 16, 2006.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the 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 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 (November 1, 2006 to April 30, 2007).
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 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 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. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Beginning
Account Value
November 1, 2006 | Ending
Account Value
April 30, 2007 | Expenses Paid
During Period*
November 1, 2006
to April 30, 2007 |
Actual | $ 1,000.00 | $ 1,102.40 | $ 4.69 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,020.33 | $ 4.51 |
* Expenses are equal to the Fund's annualized expense ratio of .90%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Ten Stocks as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cerner Corp. | 3.6 | 2.7 |
Vestas Wind Systems AS | 2.2 | 0.7 |
Avnet, Inc. | 1.5 | 0.5 |
Arrow Electronics, Inc. | 1.4 | 1.1 |
Pharmaceutical Product Development, Inc. | 1.3 | 0.3 |
Ingram Micro, Inc. Class A | 1.3 | 2.0 |
PAREXEL International Corp. | 1.2 | 0.4 |
NATCO Group, Inc. Class A | 1.2 | 0.3 |
Skechers U.S.A., Inc. Class A (sub. vtg.) | 1.1 | 0.7 |
Ladish Co., Inc. | 1.1 | 0.0 |
| 15.9 | |
Top Five Market Sectors as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 29.8 | 30.1 |
Industrials | 20.2 | 12.7 |
Health Care | 17.2 | 17.8 |
Consumer Discretionary | 13.0 | 20.1 |
Financials | 5.6 | 5.6 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2007 * | As of October 31, 2006 ** |
| Stocks 91.5% | | | Stocks 90.1% | |
| Convertible
Securities 0.0% | | | Convertible
Securities 0.1% | |
| Short-Term
Investments and
Net Other Assets 8.5% | | | Short-Term
Investments and
Net Other Assets 9.8% | |
* Foreign investments | 21.5% | | ** Foreign investments | 16.9% | |
Annual Report
Investments April 30, 2007
Showing Percentage of Net Assets
Common Stocks - 91.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 13.0% |
Auto Components - 0.6% |
Amerigon, Inc. (a)(e) | 2,124,181 | | $ 27,317 |
Automobiles - 0.1% |
Winnebago Industries, Inc. (d) | 129,214 | | 4,143 |
Diversified Consumer Services - 0.2% |
Carriage Services, Inc. Class A (e) | 1,185,250 | | 9,683 |
Hotels, Restaurants & Leisure - 1.2% |
Famous Dave's of America, Inc. (a)(e) | 1,059,388 | | 20,192 |
Penn National Gaming, Inc. (a) | 553,815 | | 26,771 |
Ruth's Chris Steak House, Inc. (a) | 342,472 | | 6,798 |
Six Flags, Inc. (d) | 691,537 | | 4,122 |
| | 57,883 |
Household Durables - 2.0% |
Directed Electronics, Inc. (a)(e) | 1,975,231 | | 19,792 |
Ethan Allen Interiors, Inc. (d) | 499,300 | | 17,625 |
Fourlis Holdings SA | 1,338,791 | | 33,542 |
Furniture Brands International, Inc. (d) | 1,856,952 | | 29,860 |
| | 100,819 |
Internet & Catalog Retail - 0.7% |
Gaiam, Inc. Class A (a)(d) | 421,787 | | 6,415 |
Priceline.com, Inc. (a)(d) | 500,000 | | 27,820 |
| | 34,235 |
Leisure Equipment & Products - 1.1% |
Jumbo SA | 1,464,400 | | 45,961 |
MarineMax, Inc. (a) | 528,022 | | 10,471 |
| | 56,432 |
Media - 1.5% |
Live Nation, Inc. (a) | 1,357,863 | | 27,551 |
New Frontier Media, Inc. | 1,073,680 | | 9,395 |
Next Fifteen Communications Group plc (e) | 4,012,000 | | 7,661 |
Playboy Enterprises, Inc. Class B (non-vtg.) (a)(d) | 1,292,996 | | 12,658 |
Sinclair Broadcast Group, Inc. Class A | 1,099,357 | | 17,952 |
| | 75,217 |
Specialty Retail - 3.4% |
Forzani Group Ltd. Class A (a) | 1,392,510 | | 26,761 |
Gamestop Corp. Class A (a) | 760,176 | | 25,215 |
Mothers Work, Inc. (a)(e) | 337,263 | | 11,804 |
OfficeMax, Inc. | 300,200 | | 14,776 |
Shoe Carnival, Inc. (a) | 602,469 | | 18,942 |
The Children's Place Retail Stores, Inc. (a) | 618,725 | | 32,712 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
The Men's Wearhouse, Inc. | 301,500 | | $ 13,046 |
The Pep Boys - Manny, Moe & Jack | 899,295 | | 16,772 |
Wet Seal, Inc. Class A (a) | 1,890,163 | | 11,303 |
| | 171,331 |
Textiles, Apparel & Luxury Goods - 2.2% |
Gildan Activewear, Inc. Class A (a) | 855,020 | | 54,233 |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a)(e) | 1,791,641 | | 56,258 |
Volcom, Inc. (a) | 27,500 | | 1,155 |
| | 111,646 |
TOTAL CONSUMER DISCRETIONARY | | 648,706 |
CONSUMER STAPLES - 0.3% |
Food Products - 0.1% |
Global Bio-Chem Technology Group Co. Ltd. warrants 5/31/07 (a) | 1,750,000 | | 2 |
Green Mountain Coffee Roasters, Inc. (a) | 81,520 | | 4,983 |
| | 4,985 |
Personal Products - 0.2% |
Sarantis SA (Reg.) | 857,202 | | 9,475 |
TOTAL CONSUMER STAPLES | | 14,460 |
ENERGY - 3.0% |
Energy Equipment & Services - 2.9% |
Hanover Compressor Co. (a) | 974,261 | | 21,073 |
Hornbeck Offshore Services, Inc. (a) | 499,501 | | 15,799 |
NATCO Group, Inc. Class A (a)(e) | 1,506,950 | | 57,565 |
Parker Drilling Co. (a) | 1,984,900 | | 21,556 |
Superior Energy Services, Inc. (a) | 725,300 | | 26,350 |
| | 142,343 |
Oil, Gas & Consumable Fuels - 0.1% |
Cabot Oil & Gas Corp. | 182,000 | | 6,628 |
TOTAL ENERGY | | 148,971 |
FINANCIALS - 5.6% |
Commercial Banks - 1.8% |
Center Financial Corp., California | 696,844 | | 11,400 |
East West Bancorp, Inc. | 498,705 | | 19,878 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
Hanmi Financial Corp. | 930,993 | | $ 15,278 |
SVB Financial Group (a) | 600,100 | | 30,737 |
UCBH Holdings, Inc. | 883,094 | | 15,860 |
| | 93,153 |
Diversified Financial Services - 0.4% |
Endeavor Acquisition Corp. (a)(d)(e) | 1,798,005 | | 18,861 |
Insurance - 3.1% |
Allied World Assurance Co. Holdings Ltd. | 450,000 | | 19,944 |
Endurance Specialty Holdings Ltd. | 761,000 | | 28,477 |
IPC Holdings Ltd. | 805,752 | | 24,156 |
Max Re Capital Ltd. | 654,490 | | 17,540 |
Montpelier Re Holdings Ltd. | 1,700,000 | | 31,042 |
Platinum Underwriters Holdings Ltd. | 947,800 | | 32,434 |
| | 153,593 |
Real Estate Management & Development - 0.3% |
Unite Group PLC | 1,348,035 | | 13,841 |
TOTAL FINANCIALS | | 279,448 |
HEALTH CARE - 17.2% |
Biotechnology - 0.8% |
Alkermes, Inc. (a) | 1,129,800 | | 18,563 |
Myriad Genetics, Inc. (a) | 146,728 | | 5,363 |
ONYX Pharmaceuticals, Inc. (a) | 600,000 | | 16,056 |
| | 39,982 |
Health Care Equipment & Supplies - 3.5% |
Align Technology, Inc. (a)(d) | 1,200,500 | | 27,203 |
ArthroCare Corp. (a) | 478,623 | | 19,748 |
BioLase Technology, Inc. (a)(d)(e) | 1,865,449 | | 12,125 |
DJO, Inc. (a) | 477,450 | | 18,649 |
Hologic, Inc. (a) | 200,000 | | 11,510 |
Inverness Medical Innovations, Inc. (a) | 129,400 | | 5,182 |
Kyphon, Inc. (a) | 674,474 | | 31,437 |
Regeneration Technologies, Inc. (a)(e) | 2,825,675 | | 23,933 |
Respironics, Inc. (a) | 349,742 | | 14,255 |
Somanetics Corp. (a) | 463,896 | | 8,768 |
| | 172,810 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - 1.2% |
Healthways, Inc. (a) | 490,813 | | $ 20,820 |
Hooper Holmes, Inc. (a)(e) | 4,076,593 | | 17,937 |
I-trax, Inc. (a)(e) | 2,043,463 | | 9,093 |
ResCare, Inc. (a) | 843,275 | | 15,095 |
| | 62,945 |
Health Care Technology - 5.0% |
Allscripts Healthcare Solutions, Inc. (a)(d) | 663,448 | | 17,548 |
Cerner Corp. (a)(d) | 3,357,069 | | 178,736 |
Eclipsys Corp. (a) | 1,101,145 | | 20,635 |
Phase Forward, Inc. (a)(e) | 2,033,769 | | 32,296 |
| | 249,215 |
Life Sciences Tools & Services - 5.8% |
Affymetrix, Inc. (a) | 441,900 | | 11,609 |
Charles River Laboratories International, Inc. (a) | 474,600 | | 22,477 |
Covance, Inc. (a) | 490,200 | | 29,657 |
Exelixis, Inc. (a) | 1,543,987 | | 16,582 |
ICON PLC sponsored ADR | 831,400 | | 39,018 |
Kendle International, Inc. (a)(e) | 804,403 | | 27,414 |
PAREXEL International Corp. (a)(e) | 1,475,976 | | 57,976 |
Pharmaceutical Product Development, Inc. | 1,829,637 | | 65,995 |
PRA International (a) | 833,053 | | 18,927 |
| | 289,655 |
Pharmaceuticals - 0.9% |
Alpharma, Inc. Class A | 757,797 | | 18,414 |
Arpida Ltd. (a) | 342,675 | | 9,022 |
MGI Pharma, Inc. (a)(d) | 749,457 | | 16,503 |
| | 43,939 |
TOTAL HEALTH CARE | | 858,546 |
INDUSTRIALS - 20.2% |
Aerospace & Defense - 5.9% |
AAR Corp. (a) | 1,061,070 | | 32,405 |
Alliant Techsystems, Inc. (a) | 550,349 | | 51,254 |
BE Aerospace, Inc. (a) | 480,519 | | 17,611 |
DRS Technologies, Inc. | 900,100 | | 45,284 |
Hexcel Corp. (a)(d) | 2,387,000 | | 51,798 |
Ladish Co., Inc. (a)(e) | 1,342,575 | | 54,589 |
LMI Aerospace, Inc. (a)(e) | 657,838 | | 12,802 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Aerospace & Defense - continued |
The Allied Defense Group, Inc. (a)(d) | 76,836 | | $ 632 |
Triumph Group, Inc. | 414,256 | | 25,191 |
| | 291,566 |
Air Freight & Logistics - 0.8% |
Forward Air Corp. | 682,070 | | 20,810 |
Norbert Dentressangle SA | 19,809 | | 1,884 |
UTI Worldwide, Inc. | 801,352 | | 18,808 |
| | 41,502 |
Commercial Services & Supplies - 6.4% |
Clean Harbors, Inc. | 324,859 | | 15,112 |
Corrections Corp. of America (a) | 432,100 | | 24,543 |
Datamonitor PLC | 1,708,478 | | 21,418 |
Diamond Management & Technology Consultants, Inc. (e) | 2,167,296 | | 24,577 |
First Consulting Group, Inc. (a)(e) | 2,244,933 | | 22,337 |
Group 4 Securicor PLC (United Kingdom) | 4,500,000 | | 20,784 |
Healthcare Services Group, Inc. | 599,536 | | 16,787 |
Interface, Inc. Class A | 1,434,260 | | 24,167 |
Intermap Technologies Corp. (a)(e) | 2,498,900 | | 14,117 |
Medialink Worldwide, Inc. (a)(d)(e) | 602,200 | | 3,065 |
Navigant Consulting, Inc. (a) | 1,771,900 | | 33,985 |
Team, Inc. (a)(e) | 752,588 | | 25,904 |
Tele Atlas NV (Netherlands) (a) | 1,765,100 | | 36,780 |
The Geo Group, Inc. (a) | 636,635 | | 32,596 |
Waste Services, Inc. (a)(d) | 264,699 | | 2,615 |
| | 318,787 |
Construction & Engineering - 0.2% |
Bird Construction Income Fund (e) | 771,000 | | 11,962 |
Electrical Equipment - 3.9% |
American Superconductor Corp. (a)(d) | 399,863 | | 5,774 |
Carbone Lorraine | 300,000 | | 19,810 |
Q-Cells AG (d) | 230,028 | | 16,731 |
SGL Carbon AG (a) | 700,000 | | 27,482 |
SolarWorld AG (d) | 174,840 | | 14,831 |
Vestas Wind Systems AS (a) | 1,650,000 | | 108,493 |
| | 193,121 |
Machinery - 1.4% |
Astec Industries, Inc. (a) | 474,770 | | 19,323 |
Hyunjin Materials Co. Ltd. | 648,000 | | 18,285 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Machinery - continued |
Kato Works Co. Ltd. | 2,406,000 | | $ 12,228 |
Titan International, Inc. (d) | 721,326 | | 20,327 |
| | 70,163 |
Road & Rail - 1.0% |
Old Dominion Freight Lines, Inc. (a) | 549,155 | | 16,233 |
Quality Distribution, Inc. (a) | 464,095 | | 4,200 |
Universal Truckload Services, Inc. (a) | 759,314 | | 17,700 |
YRC Worldwide, Inc. (a) | 350,000 | | 13,927 |
| | 52,060 |
Trading Companies & Distributors - 0.2% |
UAP Holding Corp. | 326,957 | | 9,047 |
Transportation Infrastructure - 0.4% |
Quixote Corp. (e) | 889,472 | | 17,789 |
TOTAL INDUSTRIALS | | 1,005,997 |
INFORMATION TECHNOLOGY - 29.8% |
Communications Equipment - 1.9% |
Alliance Fiber Optic Products, Inc. (a)(e) | 3,095,861 | | 6,192 |
Avocent Corp. (a) | 203,777 | | 5,708 |
Balda AG | 1,833,000 | | 26,264 |
Comtech Group, Inc. (a) | 989,502 | | 17,455 |
Finisar Corp. (a) | 5,001,176 | | 18,104 |
Oplink Communications, Inc. (a)(e) | 1,261,913 | | 20,910 |
| | 94,633 |
Computers & Peripherals - 3.4% |
Hypercom Corp. (a)(e) | 4,485,725 | | 26,062 |
Intermec, Inc. (a) | 705,565 | | 15,755 |
QLogic Corp. (a) | 2,678,000 | | 47,883 |
STEC, Inc. (a)(d)(e) | 3,610,825 | | 29,031 |
TPV Technology Ltd. | 15,000,000 | | 10,105 |
Xyratex Ltd. (a)(e) | 1,866,130 | | 41,764 |
| | 170,600 |
Electronic Equipment & Instruments - 7.0% |
Arrow Electronics, Inc. (a) | 1,795,200 | | 70,946 |
Avnet, Inc. (a) | 1,878,504 | | 76,831 |
FLIR Systems, Inc. (a) | 494,700 | | 20,030 |
Ingram Micro, Inc. Class A (a) | 3,342,910 | | 65,588 |
Insight Enterprises, Inc. (a) | 1,968,437 | | 39,014 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Electronic Equipment & Instruments - continued |
Iteris, Inc. (a) | 22,400 | | $ 54 |
KEMET Corp. (a) | 2,061,234 | | 17,479 |
Solectron Corp. (a) | 8,000,000 | | 26,800 |
Trimble Navigation Ltd. (a) | 450,000 | | 12,906 |
Vishay Intertechnology, Inc. (a) | 1,190,363 | | 19,820 |
| | 349,468 |
Internet Software & Services - 2.8% |
Art Technology Group, Inc. (a)(e) | 9,922,326 | | 24,607 |
CyberSource Corp. (a)(e) | 2,146,721 | | 27,285 |
Goldleaf Financial Solutions, Inc. (a)(e) | 1,698,010 | | 10,935 |
Groupe Open SA (a)(e) | 750,000 | | 14,328 |
Lbi International AB (a) | 2,250,000 | | 15,516 |
LivePerson, Inc. (a) | 1,173,264 | | 8,213 |
LoopNet, Inc. | 994,574 | | 18,231 |
TheStreet.com, Inc. (e) | 1,999,293 | | 20,193 |
| | 139,308 |
IT Services - 4.3% |
CACI International, Inc. Class A (a) | 956,263 | | 43,730 |
Computershare Ltd. | 2,812,300 | | 24,406 |
Devoteam SA (e) | 591,000 | | 28,146 |
Iress Market Technology Ltd. | 3,500,000 | | 23,921 |
Lionbridge Technologies, Inc. (a)(e) | 4,521,560 | | 22,970 |
ManTech International Corp. Class A (a) | 500,047 | | 15,341 |
Ness Technologies, Inc. (a) | 1,155,410 | | 15,413 |
SI International, Inc. (a)(e) | 668,137 | | 17,679 |
Unisys Corp. (a) | 2,600,044 | | 20,384 |
| | 211,990 |
Office Electronics - 0.4% |
Zebra Technologies Corp. Class A (a)(d) | 547,800 | | 21,797 |
Semiconductors & Semiconductor Equipment - 6.6% |
Atmel Corp. (a) | 2,585,608 | | 13,755 |
Cypress Semiconductor Corp. (a) | 1,029,000 | | 23,482 |
Fairchild Semiconductor International, Inc. (a) | 1,479,500 | | 26,039 |
FormFactor, Inc. (a) | 1,201,733 | | 49,620 |
Himax Technologies, Inc. sponsored ADR | 3,199,118 | | 18,779 |
Kontron AG | 1,155,000 | | 21,530 |
LTX Corp. (a) | 690,271 | | 4,114 |
Microsemi Corp. (a)(d) | 750,983 | | 17,355 |
MIPS Technologies, Inc. (a)(e) | 3,774,963 | | 32,389 |
ON Semiconductor Corp. (a) | 3,555,071 | | 38,075 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
PDF Solutions, Inc. (a)(e) | 2,748,124 | | $ 30,861 |
Rudolph Technologies, Inc. (a)(e) | 1,820,984 | | 31,448 |
SiRF Technology Holdings, Inc. (a)(d) | 657,253 | | 15,945 |
Volterra Semiconductor Corp. (a) | 239,400 | | 3,785 |
| | 327,177 |
Software - 3.4% |
Ansys, Inc. (a) | 514,820 | | 26,359 |
Business Objects SA sponsored ADR (a) | 850,000 | | 31,884 |
Informatica Corp. (a) | 1,851,020 | | 27,247 |
Moldflow Corp. (a)(e) | 1,131,493 | | 17,267 |
Quality Systems, Inc. (d) | 1,050,278 | | 42,505 |
VA Software Corp. (a)(d)(e) | 6,748,418 | | 24,497 |
| | 169,759 |
TOTAL INFORMATION TECHNOLOGY | | 1,484,732 |
MATERIALS - 1.1% |
Chemicals - 0.9% |
Nippon Parkerizing Co. Ltd. | 1,000,000 | | 18,108 |
Zoltek Companies, Inc. (a)(d) | 835,883 | | 25,444 |
| | 43,552 |
Metals & Mining - 0.2% |
Compass Minerals International, Inc. | 343,749 | | 11,804 |
TOTAL MATERIALS | | 55,356 |
UTILITIES - 1.3% |
Independent Power Producers & Energy Traders - 1.3% |
Clipper Windpower PLC (a) | 2,489,425 | | 43,677 |
Plambeck Neue Energien AG (a)(d)(e) | 3,700,000 | | 19,338 |
| | 63,015 |
TOTAL COMMON STOCKS (Cost $3,753,100) | 4,559,231 |
Preferred Stocks - 0.0% |
| Shares | | Value (000s) |
Convertible Preferred Stocks - 0.0% |
HEALTH CARE - 0.0% |
Health Care Providers & Services - 0.0% |
LifeMasters Supported SelfCare, Inc. Series F (a)(f) | 461,818 | | $ 1,893 |
Nonconvertible Preferred Stocks - 0.0% |
HEALTH CARE - 0.0% |
Health Care Technology - 0.0% |
Lifeoutcomes, Inc. Series A (f) | 39,076 | | 0 |
TOTAL PREFERRED STOCKS (Cost $11,065) | 1,893 |
Money Market Funds - 14.0% |
| | | |
Fidelity Cash Central Fund, 5.29% (b) | 444,963,455 | | 444,963 |
Fidelity Securities Lending Cash Central Fund, 5.31% (b)(c) | 255,257,662 | | 255,258 |
TOTAL MONEY MARKET FUNDS (Cost $700,221) | 700,221 |
TOTAL INVESTMENT PORTFOLIO - 105.5% (Cost $4,464,386) | | 5,261,345 |
NET OTHER ASSETS - (5.5)% | | (275,917) |
NET ASSETS - 100% | $ 4,985,428 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Includes investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,893,000 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
LifeMasters Supported SelfCare, Inc. Series F | 6/24/02 | $ 5,100 |
Lifeoutcomes, Inc. Series A | 5/31/06 | $ 5,965 |
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
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 13,491 |
Fidelity Securities Lending Cash Central Fund | 2,306 |
Total | $ 15,797 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
AAR Corp. | $ 45,623 | $ 18,997 | $ 37,558 | $ - | $ - |
Aladdin Knowledge Systems Ltd. | 21,114 | - | 13,586 | - | - |
Alliance Fiber Optic Products, Inc. | - | 6,143 | - | - | 6,192 |
Amerigon, Inc. | 11,857 | 4,249 | 9 | - | 27,317 |
Ansoft Corp. | 37,577 | - | 37,492 | - | - |
Art Technology Group, Inc. | 11,850 | 13,748 | - | - | 24,607 |
Big 5 Sporting Goods Corp. | 22,701 | - | 26,336 | 215 | - |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
BioLase Technology, Inc. | $ 15,395 | $ 15,492 | $ 11,647 | $ - | $ 12,125 |
Bird Construction Income Fund | - | 9,636 | - | 332 | 11,962 |
Blue Coat Systems, Inc. | 17,386 | - | 15,450 | - | - |
Bookham, Inc. | - | 19,772 | 12,173 | - | - |
Carriage Services, Inc. Class A | 5,559 | - | - | - | 9,683 |
Cholestech Corp. | 18,884 | 2,720 | 26,533 | - | - |
Comsys IT Partners, Inc. | - | 16,731 | 19,533 | - | - |
CyberSource Corp. | - | 22,153 | - | - | 27,285 |
Datamonitor PLC | 42,125 | 2,578 | 31,934 | 418 | - |
Devoteam SA | - | 19,883 | - | - | 28,146 |
Diamond Management & Technology Consultants, Inc. | - | 12,917 | 260 | 548 | 24,577 |
Digitas, Inc. | 36,296 | 19,720 | 62,494 | - | - |
Directed Electronics, Inc. | - | 20,980 | - | - | 19,792 |
Endeavor Acquisition Corp. | - | 20,583 | - | - | 18,861 |
Famous Dave's of America, Inc. | 15,478 | - | - | - | 20,192 |
First Consulting Group, Inc. | - | 25,960 | - | - | 22,337 |
Fundtech Ltd. | 18,004 | - | 13,857 | - | - |
Goldleaf Financial Solutions, Inc. | - | 11,040 | - | - | 10,935 |
Groupe Open SA | - | 14,967 | - | - | 14,328 |
Harris Interactive, Inc. | 15,440 | 837 | 17,920 | - | - |
Home Diagnostics, Inc. | - | 15,195 | 13,303 | - | - |
Hooper Holmes, Inc. | - | 16,011 | - | - | 17,937 |
Hypercom Corp. | - | 32,262 | - | - | 26,062 |
I-trax, Inc. | - | 8,096 | - | - | 9,093 |
Imaging Dynamics Co. Ltd. | 12,337 | 5,050 | 7,686 | - | - |
Insight Enterprises, Inc. | 51,778 | - | 13,951 | - | - |
Interface, Inc. Class A | 38,329 | 7,712 | 27,786 | 23 | - |
Intermap Technologies Corp. | - | 13,554 | - | - | 14,117 |
Jumbo SA | 59,193 | - | 43,404 | 652 | - |
Kendle International, Inc. | 10,270 | 56,386 | 35,840 | - | 27,414 |
Kforce, Inc. | 32,516 | - | 31,512 | - | - |
La Senza Corp. (sub. vtg.) | 16,610 | - | 34,843 | 385 | - |
Ladish Co., Inc. | - | 54,814 | - | - | 54,589 |
Leadis Technology, Inc. | - | 10,411 | 10,493 | - | - |
Lifetime Brands, Inc. | 29,919 | - | 20,553 | 173 | - |
Lionbridge Technologies, Inc. | 45,727 | - | 8,014 | - | 22,970 |
LMI Aerospace, Inc. | - | 10,929 | - | - | 12,802 |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
LTX Corp. | $ - | $ 26,220 | $ 28,221 | $ - | $ - |
Medialink Worldwide, Inc. | 2,469 | - | - | - | 3,065 |
MIPS Technologies, Inc. | 5,977 | 21,235 | - | - | 32,389 |
Moldflow Corp. | 11,971 | 3,589 | - | - | 17,267 |
Monogram Biosciences, Inc. | - | 27,070 | 22,543 | - | - |
Mothers Work, Inc. | - | 11,790 | - | - | 11,804 |
NATCO Group, Inc. Class A | - | 52,464 | - | - | 57,565 |
Neoware, Inc. | - | 22,731 | 20,078 | - | - |
Ness Technologies, Inc. | 42,144 | 2,599 | 34,236 | - | - |
Next Fifteen Communications Group plc | - | 6,447 | - | 58 | 7,661 |
Oplink Communications, Inc. | 28,220 | 32,644 | 31,043 | - | 20,910 |
PAREXEL International Corp. | - | 65,158 | 19,754 | - | 57,976 |
PC Connection, Inc. | 11,299 | - | 24,014 | - | - |
PDF Solutions, Inc. | 2,294 | 34,963 | - | - | 30,861 |
Per-Se Technologies, Inc. | 81,828 | 2,120 | 83,513 | - | - |
Phase Forward, Inc. | 45,799 | 13,178 | 27,881 | - | 32,296 |
Plambeck Neue Energien AG | - | 10,518 | - | - | 19,338 |
Plato Learning, Inc. | 23,670 | - | 15,920 | - | - |
Playboy Enterprises, Inc. Class B (non-vtg.) | - | 24,511 | 11,745 | - | - |
PRA International | - | 67,225 | 46,908 | - | - |
Providence Service Corp. | 24,797 | 6,155 | 24,098 | - | - |
Quixote Corp. | 17,994 | 2,064 | 1,644 | 326 | 17,789 |
Regeneration Technologies, Inc. | 21,984 | 8,103 | 7,368 | - | 23,933 |
Rudolph Technologies, Inc. | 17,503 | 13,214 | - | - | 31,448 |
Safeguard Scientifics, Inc. | 23,190 | - | 22,532 | - | - |
Salem Communications Corp. Class A | 14,760 | - | 14,051 | - | - |
SI International, Inc. | 22,763 | - | - | - | 17,679 |
Skechers U.S.A., Inc. Class A (sub. vtg.) | - | 59,790 | 12,253 | - | 56,258 |
Somanetics Corp. | 7,104 | 5,428 | 5,949 | - | - |
STEC, Inc. | - | 32,850 | - | - | 29,031 |
SYNNEX Corp. | 30,426 | - | 29,403 | - | - |
Team, Inc. | 18,724 | 8,228 | 2,773 | - | 25,904 |
The Children's Place Retail Stores, Inc. | 171,773 | 22,848 | 142,642 | - | - |
TheStreet.com, Inc. | - | 22,312 | - | 50 | 20,193 |
Triumph Group, Inc. | 17,846 | 19,383 | 22,148 | 69 | - |
Affiliate
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
TTM Technologies, Inc. | $ 61,872 | $ 6,452 | $ 54,291 | $ - | $ - |
Ultralife Batteries, Inc. | - | 14,607 | 15,571 | - | - |
VA Software Corp. | - | 28,062 | - | - | 24,497 |
webMethods, Inc. | - | 32,524 | 24,852 | - | - |
Xyratex Ltd. | 56,810 | 23,306 | 32,138 | - | 41,764 |
Total | $ 1,395,185 | $ 1,239,314 | $ 1,351,736 | $ 3,249 | $ 1,042,951 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 78.5% |
Bermuda | 4.1% |
Germany | 2.5% |
Denmark | 2.2% |
United Kingdom | 2.1% |
Canada | 2.1% |
France | 1.9% |
Greece | 1.8% |
Australia | 1.0% |
Others (individually less than 1%) | 3.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | April 30, 2007 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $242,723) - See accompanying schedule: Unaffiliated issuers (cost $2,809,286) | $ 3,518,173 | |
Fidelity Central Funds (cost $700,221) | 700,221 | |
Other affiliated issuers (cost $954,879) | 1,042,951 | |
Total Investments (cost $4,464,386) | | $ 5,261,345 |
Foreign currency held at value (cost $341) | | 341 |
Receivable for investments sold | | 56,381 |
Receivable for fund shares sold | | 4,024 |
Dividends receivable | | 612 |
Distributions receivable from Fidelity Central Funds | | 1,460 |
Prepaid expenses | | 15 |
Other receivables | | 358 |
Total assets | | 5,324,536 |
| | |
Liabilities | | |
Payable for investments purchased | $ 73,490 | |
Payable for fund shares redeemed | 6,503 | |
Accrued management fee | 2,697 | |
Other affiliated payables | 1,034 | |
Other payables and accrued expenses | 126 | |
Collateral on securities loaned, at value | 255,258 | |
Total liabilities | | 339,108 |
| | |
Net Assets | | $ 4,985,428 |
Net Assets consist of: | | |
Paid in capital | | $ 3,832,629 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 355,899 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 796,900 |
Net Assets, for 244,364 shares outstanding | | $ 4,985,428 |
Net Asset Value, offering price and redemption price per share ($4,985,428 ÷ 244,364 shares) | | $ 20.40 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended April 30, 2007 |
| | |
Investment Income | | |
Dividends (including $3,248 earned from other affiliated issuers) | | $ 13,596 |
Interest | | 136 |
Income from Fidelity Central Funds (including $2,306 from security lending) | | 15,797 |
Total income | | 29,529 |
| | |
Expenses | | |
Management fee
Basic fee | $ 33,952 | |
Performance adjustment | (1,668) | |
Transfer agent fees | 11,364 | |
Accounting and security lending fees | 1,082 | |
Custodian fees and expenses | 583 | |
Independent trustees' compensation | 16 | |
Registration fees | 72 | |
Audit | 73 | |
Legal | 82 | |
Interest | 1 | |
Miscellaneous | 64 | |
Total expenses before reductions | 45,621 | |
Expense reductions | (949) | 44,672 |
Net investment income (loss) | | (15,143) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 292,551 | |
Other affiliated issuers | 160,643 | |
Foreign currency transactions | (646) | |
Total net realized gain (loss) | | 452,548 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (228,492) | |
Assets and liabilities in foreign currencies | (26) | |
Total change in net unrealized appreciation (depreciation) | | (228,518) |
Net gain (loss) | | 224,030 |
Net increase (decrease) in net assets resulting from operations | | $ 208,887 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
April 30,
2007 | Year ended
April 30,
2006 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (15,143) | $ (10,238) |
Net realized gain (loss) | 452,548 | 487,303 |
Change in net unrealized appreciation (depreciation) | (228,518) | 821,467 |
Net increase (decrease) in net assets resulting
from operations | 208,887 | 1,298,532 |
Distributions to shareholders from net realized gain | (378,389) | (290,312) |
Share transactions
Proceeds from sales of shares | 825,158 | 1,030,821 |
Reinvestment of distributions | 369,110 | 283,033 |
Cost of shares redeemed | (1,199,204) | (1,157,980) |
Net increase (decrease) in net assets resulting from share transactions | (4,936) | 155,874 |
Redemption fees | 948 | 877 |
Total increase (decrease) in net assets | (173,490) | 1,164,971 |
| | |
Net Assets | | |
Beginning of period | 5,158,918 | 3,993,947 |
End of period (including undistributed net investment income of $0 and undistributed net investment income of $232, respectively) | $ 4,985,428 | $ 5,158,918 |
Other Information Shares | | |
Sold | 43,490 | 54,010 |
Issued in reinvestment of distributions | 19,628 | 16,025 |
Redeemed | (64,160) | (63,191) |
Net increase (decrease) | (1,042) | 6,844 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
|
| | | | |
Years ended April 30, | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.02 | $ 16.74 | $ 17.26 | $ 11.86 | $ 15.11 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | (.06) | (.04) | (.04) | (.05) E | .01 |
Net realized and unrealized gain (loss) | .96 | 5.58 | .84 | 5.51 | (2.98) |
Total from investment operations | .90 | 5.54 | .80 | 5.46 | (2.97) |
Distributions from net realized gain | (1.52) | (1.26) | (1.33) | (.07) | (.31) |
Redemption fees added to paid
in capital B | - G | - G | .01 | .01 | .03 |
Net asset value, end of period | $ 20.40 | $ 21.02 | $ 16.74 | $ 17.26 | $ 11.86 |
Total Return A | 4.98% | 34.68% | 4.63% | 46.15% | (19.78)% |
Ratios to Average Net Assets C, F | | | | | |
Expenses before reductions | .96% | .98% | 1.07% | 1.13% | 1.20% |
Expenses net of fee waivers,
if any | .96% | .98% | 1.07% | 1.13% | 1.20% |
Expenses net of all reductions | .94% | .93% | 1.00% | 1.08% | 1.10% |
Net investment income (loss) | (.32)% | (.23)% | (.23)% | (.34)% | .05% |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 4,985 | $ 5,159 | $ 3,994 | $ 3,319 | $ 1,413 |
Portfolio turnover rate D | 115% | 107% | 99% | 96% | 116% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.01 per share.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended April 30, 2007
(Amounts in thousands except ratios)
1. Organization.
Fidelity Small Cap Stock Fund (the Fund) is a fund of Fidelity Commonwealth Trust (the trust) and is authorized to issue an unlimited number of shares. Effective the close of business on June 16, 2006, the Fund was closed to most new accounts. 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 Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
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 for processing shareholder transactions 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 may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses and losses deferred due to wash sales.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 917,005 | |
Unrealized depreciation | (130,709) | |
Net unrealized appreciation (depreciation) | 786,296 | |
Undistributed ordinary income | 47,364 | |
Undistributed long-term capital gain | 298,631 | |
| | |
Cost for federal income tax purposes | $ 4,475,049 | |
The tax character of distributions paid was as follows:
| April 30, 2007 | April 30, 2006 |
Ordinary Income | $ 69,580 | $ - |
Long-term Capital Gains | 308,809 | 290,312 |
Total | $ 378,389 | $ 290,312 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 2.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
Annual Report
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $5,217,339 and $5,932,293, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged ..26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .68% of the Fund's average net assets.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the transfer agent fees were equivalent to an annual rate of .24% of average net assets.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $242 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan
Balance | Weighted Average
Interest Rate | Interest Expense |
Borrower | $ 9,624 | 5.45% | $ 1 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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 $12 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities 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
Annual Report
8. Security Lending - continued
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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $619 for the period. In addition through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $27 and $230, respectively.
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.
The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
10. Other - continued
In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust and Shareholders of Fidelity Small Cap Stock Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Small Cap Stock Fund (the Fund), a fund of Fidelity Commonwealth Trust, including the schedule of investments as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Small Cap Stock Fund as of April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 353 funds advised by FMR or an affiliate. Mr. Curvey oversees 314 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (76) |
| Year of Election or Appointment: 1974 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). |
James C. Curvey (71) |
| Year of Election or Appointment: 2007 Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (58) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (70) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-
2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (66) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (60) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (62) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (67) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (63) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Commonwealth Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Kimberley H. Monasterio (43) |
| Year of Election or Appointment: 2007 President and Treasurer of Small Cap Stock. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Dwight D. Churchill (53) |
| Year of Election or Appointment: 2005 Vice President of Small Cap Stock. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-
present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR. |
Bruce T. Herring (41) |
| Year of Election or Appointment: 2006 Vice President of Small Cap Stock. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005). |
Paul Antico (38) |
| Year of Election or Appointment: 1999 Vice President of Small Cap Stock. Prior to assuming his current responsibilities, Mr. Antico worked as a research analyst and portfolio manager. Mr. Antico also serves as Vice President of FMR (2000) and FMR Co., Inc. (2001). |
Eric D. Roiter (58) |
| Year of Election or Appointment: 1998 Secretary of Small Cap Stock. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
Scott C. Goebel (39) |
| Year of Election or Appointment: 2007 Assistant Secretary of Small Cap Stock. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Small Cap Stock. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Small Cap Stock. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-
present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (59) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Small Cap Stock. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-
present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Small Cap Stock. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (37) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Small Cap Stock. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-
2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (40) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Stock. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (53) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Small Cap Stock. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Gary W. Ryan (48) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Stock. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
Salvatore Schiavone (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Small Cap Stock. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of Fidelity Small Cap Stock Fund voted to pay on June 4, 2007, to shareholders of record at the opening of business on June 1, 2007, a distribution of $1.44 per share derived from capital gains realized from sales of portfolio securities.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended April 30, 2007 $364,044,189, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 18% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 31% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
SLCX-UANN-0607
1.784727.104
Spartan®
500 Index
Fund -
Investor Class
Fidelity Advantage Class
Annual Report
April 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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 quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended April 30, 2007 | Past 1
year | Past 5
years | Past 10
years |
Investor Class | 15.14% | 8.44% | 7.91% |
Fidelity Advantage Class A | 15.18% | 8.45% | 7.92% |
A The initial offering of Fidelity Advantage Class took place on October 14, 2005. Returns prior to
October 14, 2005, are those of Investor Class, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Spartan® 500 Index Fund - Investor Class on April 30, 1997. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Jeffrey Adams, who oversees the Spartan® 500 Index Fund's investment management team as Head of Indexing for Geode Capital Management, LLC.
It was lucky 13 for the Dow Jones Industrial AverageSM, as the market measure crossed both the 12,000- and 13,000-point thresholds for the first time ever during the 12-month period ending April 30, 2007. It took the Dow more than seven years to move from 11,000 to 12,000, but less than seven months to jump from 12,000 to 13,000. The 1,000-point climb to 13,000 was particularly noteworthy considering the index lost 416 points in one day in late February when Asian markets plunged and domestic subprime mortgage woes spiked. Despite the turbulence, the Dow gained 17.58% for the one-year period overall. Elsewhere, the Standard & Poor's 500SM Index rose 15.24%, falling just shy of its all-time high; the Russell 2000® Index was up 7.83%, topping its all-time best several times during the past year; and the NASDAQ Composite® Index reached a six-year high on its way to a 9.49% increase. The markets' road to prosperity was paved by strong corporate earnings, modest levels of inflation and muted recession concerns. But there were some red flags for stocks as the period drew to a close: Oil prices trended higher, and U.S. economic growth in the first quarter of 2007 was at its slowest pace in four years.
For the 12 months ending April 30, 2007, the fund's Investor Class and Fidelity Advantage Class shares gained 15.14% and 15.18%, respectively. These results were closely in line with the S&P 500®. The market's best-performing sector was utilities, followed by telecommunication services. Health care and materials stocks also recorded solid gains. No sector turned in negative performance overall, although in information technology, semiconductor-related companies barely broke even. Within industrials, transportation and commercial services/supplies stocks were very modest negative performers. Top individual contributors included energy companies Exxon Mobil and Chevron, which gained ground as oil prices remained well above historical averages. Telecommunications company AT&T produced better-than-expected earnings, helped in large part by its Cingular Wireless division. On the negative side, semiconductor maker Advanced Micro Devices found itself in an unprofitable pricing war with its chief rival, Intel. Communications equipment maker QUALCOMM - which owns the CDMA technology used in many mobile telephones - saw its stock fall following Nokia's threat to stop making CDMA-based products, while mobile phone maker Motorola fell after the company missed sales and earnings forecasts.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the 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 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 (November 1, 2006 to April 30, 2007).
Actual Expenses
The first line of the accompanying table for each class of the 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 class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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 for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, 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. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
| Beginning
Account Value
November 1, 2006 | Ending
Account Value
April 30, 2007 | Expenses Paid
During Period*
November 1, 2006
to April 30, 2007 |
Investor Class | | | |
Actual | $ 1,000.00 | $ 1,085.50 | $ .52 |
Hypothetical A | $ 1,000.00 | $ 1,024.30 | $ .50 |
Fidelity Advantage Class | | | |
Actual | $ 1,000.00 | $ 1,085.70 | $ .36 |
Hypothetical A | $ 1,000.00 | $ 1,024.45 | $ .35 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Investor Class | .10% |
Fidelity Advantage Class | .07% |
Annual Report
Investment Changes
Top Ten Stocks as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 3.4 | 3.3 |
General Electric Co. | 2.8 | 2.8 |
Citigroup, Inc. | 2.0 | 2.0 |
Microsoft Corp. | 1.9 | 1.9 |
AT&T, Inc. | 1.8 | 1.0 |
Bank of America Corp. | 1.7 | 1.9 |
Procter & Gamble Co. | 1.5 | 1.6 |
Pfizer, Inc. | 1.4 | 1.5 |
Johnson & Johnson | 1.4 | 1.6 |
American International Group, Inc. | 1.3 | 1.4 |
| 19.2 | |
Market Sectors as of April 30, 2007 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.2 | 21.4 |
Information Technology | 14.7 | 14.9 |
Health Care | 12.0 | 12.0 |
Industrials | 10.8 | 10.5 |
Consumer Discretionary | 10.1 | 10.1 |
Energy | 10.0 | 9.2 |
Consumer Staples | 9.3 | 9.2 |
Utilities | 3.7 | 3.4 |
Telecommunication Services | 3.5 | 3.4 |
Materials | 3.0 | 2.9 |
Annual Report
Investments April 30, 2007
Showing Percentage of Net Assets
Common Stocks - 98.3% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.1% |
Auto Components - 0.2% |
Johnson Controls, Inc. | 255,455 | | $ 26,141 |
The Goodyear Tire & Rubber Co. (a) | 234,341 | | 7,794 |
| | 33,935 |
Automobiles - 0.4% |
Ford Motor Co. (d) | 2,460,405 | | 19,782 |
General Motors Corp. (d) | 735,326 | | 22,964 |
Harley-Davidson, Inc. | 334,833 | | 21,202 |
| | 63,948 |
Distributors - 0.1% |
Genuine Parts Co. | 221,648 | | 10,952 |
Diversified Consumer Services - 0.1% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 181,937 | | 8,606 |
H&R Block, Inc. | 419,013 | | 9,474 |
| | 18,080 |
Hotels, Restaurants & Leisure - 1.5% |
Carnival Corp. unit | 575,153 | | 28,119 |
Darden Restaurants, Inc. | 188,754 | | 7,830 |
Harrah's Entertainment, Inc. | 242,331 | | 20,671 |
Hilton Hotels Corp. | 505,662 | | 17,193 |
International Game Technology | 439,774 | | 16,773 |
Marriott International, Inc. Class A | 428,705 | | 19,382 |
McDonald's Corp. | 1,564,591 | | 75,538 |
Starbucks Corp. (a) | 976,285 | | 30,284 |
Starwood Hotels & Resorts Worldwide, Inc. | 279,317 | | 18,720 |
Wendy's International, Inc. | 112,743 | | 4,250 |
Wyndham Worldwide Corp. (a) | 245,574 | | 8,497 |
Yum! Brands, Inc. | 342,728 | | 21,201 |
| | 268,458 |
Household Durables - 0.6% |
Black & Decker Corp. | 85,283 | | 7,737 |
Centex Corp. (d) | 155,281 | | 6,952 |
D.R. Horton, Inc. | 354,949 | | 7,873 |
Fortune Brands, Inc. | 198,205 | | 15,876 |
Harman International Industries, Inc. | 85,158 | | 10,380 |
KB Home | 99,925 | | 4,408 |
Leggett & Platt, Inc. | 230,617 | | 5,424 |
Lennar Corp. Class A | 179,314 | | 7,659 |
Newell Rubbermaid, Inc. | 360,896 | | 11,069 |
Pulte Homes, Inc. (d) | 276,252 | | 7,431 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Snap-On, Inc. | 76,574 | | $ 4,173 |
The Stanley Works | 107,663 | | 6,275 |
Whirlpool Corp. | 102,312 | | 10,848 |
| | 106,105 |
Internet & Catalog Retail - 0.2% |
Amazon.com, Inc. (a)(d) | 404,329 | | 24,797 |
IAC/InterActiveCorp (a) | 282,311 | | 10,762 |
| | 35,559 |
Leisure Equipment & Products - 0.2% |
Brunswick Corp. | 117,952 | | 3,864 |
Eastman Kodak Co. (d) | 373,785 | | 9,311 |
Hasbro, Inc. | 209,125 | | 6,610 |
Mattel, Inc. | 511,146 | | 14,465 |
| | 34,250 |
Media - 3.3% |
CBS Corp. Class B | 959,501 | | 30,483 |
Clear Channel Communications, Inc. | 645,080 | | 22,855 |
Comcast Corp. Class A (a) | 4,043,282 | | 107,794 |
Dow Jones & Co., Inc. | 84,939 | | 3,086 |
E.W. Scripps Co. Class A | 108,515 | | 4,699 |
Gannett Co., Inc. | 305,286 | | 17,420 |
Interpublic Group of Companies, Inc. | 609,351 | | 7,727 |
McGraw-Hill Companies, Inc. | 461,436 | | 30,238 |
Meredith Corp. | 50,607 | | 2,931 |
News Corp. Class A | 3,050,222 | | 68,294 |
Omnicom Group, Inc. | 217,240 | | 22,747 |
The DIRECTV Group, Inc. (a) | 1,007,081 | | 24,009 |
The New York Times Co. Class A (d) | 187,110 | | 4,378 |
The Walt Disney Co. | 2,663,070 | | 93,154 |
Time Warner, Inc. | 4,960,458 | | 102,334 |
Tribune Co. | 231,080 | | 7,579 |
Viacom, Inc. Class B (non-vtg.) (a) | 899,844 | | 37,119 |
| | 586,847 |
Multiline Retail - 1.2% |
Big Lots, Inc. (a) | 142,347 | | 4,584 |
Dillard's, Inc. Class A | 79,144 | | 2,741 |
Dollar General Corp. | 405,661 | | 8,661 |
Family Dollar Stores, Inc. | 197,132 | | 6,277 |
Federated Department Stores, Inc. | 597,551 | | 26,244 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - continued |
JCPenney Co., Inc. | 292,488 | | $ 23,133 |
Kohl's Corp. (a) | 425,146 | | 31,478 |
Nordstrom, Inc. | 297,409 | | 16,334 |
Sears Holdings Corp. (a)(d) | 108,043 | | 20,626 |
Target Corp. | 1,116,602 | | 66,293 |
| | 206,371 |
Specialty Retail - 1.9% |
Abercrombie & Fitch Co. Class A | 114,725 | | 9,368 |
AutoNation, Inc. (a) | 195,702 | | 4,000 |
AutoZone, Inc. (a) | 64,581 | | 8,592 |
Bed Bath & Beyond, Inc. (a) | 368,408 | | 15,009 |
Best Buy Co., Inc. | 526,287 | | 24,551 |
Circuit City Stores, Inc. | 185,043 | | 3,229 |
Gap, Inc. | 685,006 | | 12,296 |
Home Depot, Inc. | 2,653,247 | | 100,478 |
Limited Brands, Inc. (d) | 444,658 | | 12,259 |
Lowe's Companies, Inc. | 1,979,707 | | 60,500 |
Office Depot, Inc. (a) | 359,449 | | 12,085 |
OfficeMax, Inc. | 97,478 | | 4,798 |
RadioShack Corp. | 177,067 | | 5,147 |
Sherwin-Williams Co. | 145,081 | | 9,252 |
Staples, Inc. | 932,137 | | 23,117 |
Tiffany & Co., Inc. | 175,958 | | 8,391 |
TJX Companies, Inc. | 591,654 | | 16,501 |
| | 329,573 |
Textiles, Apparel & Luxury Goods - 0.4% |
Coach, Inc. (a) | 481,246 | | 23,499 |
Jones Apparel Group, Inc. | 141,043 | | 4,709 |
Liz Claiborne, Inc. | 134,491 | | 6,014 |
NIKE, Inc. Class B (d) | 491,414 | | 26,468 |
Polo Ralph Lauren Corp. Class A | 79,665 | | 7,338 |
VF Corp. | 117,065 | | 10,279 |
| | 78,307 |
TOTAL CONSUMER DISCRETIONARY | | 1,772,385 |
CONSUMER STAPLES - 9.3% |
Beverages - 2.0% |
Anheuser-Busch Companies, Inc. | 991,795 | | 48,786 |
Brown-Forman Corp. Class B (non-vtg.) | 102,452 | | 6,550 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Beverages - continued |
Coca-Cola Enterprises, Inc. | 361,829 | | $ 7,939 |
Constellation Brands, Inc. Class A (sub. vtg.) | 274,244 | | 6,146 |
Molson Coors Brewing Co. Class B | 61,020 | | 5,753 |
Pepsi Bottling Group, Inc. | 170,913 | | 5,608 |
PepsiCo, Inc. | 2,129,186 | | 140,718 |
The Coca-Cola Co. | 2,618,705 | | 136,670 |
| | 358,170 |
Food & Staples Retailing - 2.3% |
Costco Wholesale Corp. | 588,034 | | 31,501 |
CVS Corp. | 2,002,425 | | 72,568 |
Kroger Co. | 920,390 | | 27,161 |
Safeway, Inc. | 572,675 | | 20,788 |
SUPERVALU, Inc. | 270,165 | | 12,401 |
Sysco Corp. | 802,117 | | 26,261 |
Wal-Mart Stores, Inc. | 3,197,013 | | 153,201 |
Walgreen Co. | 1,301,133 | | 57,120 |
Whole Foods Market, Inc. (d) | 182,762 | | 8,551 |
| | 409,552 |
Food Products - 1.5% |
Archer-Daniels-Midland Co. | 848,585 | | 32,840 |
Campbell Soup Co. | 283,932 | | 11,102 |
ConAgra Foods, Inc. | 656,744 | | 16,143 |
Dean Foods Co. | 167,641 | | 6,107 |
General Mills, Inc. | 448,714 | | 26,878 |
H.J. Heinz Co. | 422,322 | | 19,896 |
Hershey Co. | 224,999 | | 12,366 |
Kellogg Co. | 325,951 | | 17,246 |
Kraft Foods, Inc. Class A | 2,131,914 | | 71,355 |
McCormick & Co., Inc. (non-vtg.) | 169,250 | | 6,283 |
Sara Lee Corp. | 953,555 | | 15,648 |
Tyson Foods, Inc. Class A | 327,959 | | 6,874 |
Wm. Wrigley Jr. Co. | 283,606 | | 16,699 |
| | 259,437 |
Household Products - 2.1% |
Clorox Co. | 196,640 | | 13,191 |
Colgate-Palmolive Co. | 667,467 | | 45,214 |
Kimberly-Clark Corp. | 593,411 | | 42,233 |
Procter & Gamble Co. | 4,102,176 | | 263,811 |
| | 364,449 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Personal Products - 0.2% |
Avon Products, Inc. | 573,430 | | $ 22,823 |
Estee Lauder Companies, Inc. Class A | 151,167 | | 7,773 |
| | 30,596 |
Tobacco - 1.2% |
Altria Group, Inc. | 2,728,287 | | 188,034 |
Reynolds American, Inc. (d) | 222,912 | | 14,324 |
UST, Inc. (d) | 208,818 | | 11,836 |
| | 214,194 |
TOTAL CONSUMER STAPLES | | 1,636,398 |
ENERGY - 10.0% |
Energy Equipment & Services - 1.9% |
Baker Hughes, Inc. | 416,331 | | 33,469 |
BJ Services Co. | 381,222 | | 10,926 |
ENSCO International, Inc. | 196,159 | | 11,059 |
Halliburton Co. (d) | 1,188,144 | | 37,747 |
Nabors Industries Ltd. (a) | 362,045 | | 11,629 |
National Oilwell Varco, Inc. (a) | 228,555 | | 19,393 |
Noble Corp. | 174,860 | | 14,725 |
Rowan Companies, Inc. | 143,656 | | 5,264 |
Schlumberger Ltd. (NY Shares) | 1,532,174 | | 113,120 |
Smith International, Inc. | 259,210 | | 13,593 |
Transocean, Inc. (a) | 380,875 | | 32,831 |
Weatherford International Ltd. (a) | 439,626 | | 23,076 |
| | 326,832 |
Oil, Gas & Consumable Fuels - 8.1% |
Anadarko Petroleum Corp. | 602,053 | | 28,092 |
Apache Corp. | 430,264 | | 31,194 |
Chesapeake Energy Corp. | 532,322 | | 17,966 |
Chevron Corp. | 2,805,236 | | 218,219 |
ConocoPhillips | 2,137,422 | | 148,230 |
CONSOL Energy, Inc. | 237,288 | | 9,935 |
Devon Energy Corp. | 577,824 | | 42,106 |
El Paso Corp. | 907,873 | | 13,618 |
EOG Resources, Inc. | 317,211 | | 23,296 |
Exxon Mobil Corp. | 7,401,738 | | 587,544 |
Hess Corp. | 351,247 | | 19,933 |
Kinder Morgan, Inc. | 139,563 | | 14,872 |
Marathon Oil Corp. | 449,642 | | 45,661 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Murphy Oil Corp. | 243,938 | | $ 13,524 |
Occidental Petroleum Corp. | 1,089,577 | | 55,242 |
Peabody Energy Corp. | 344,107 | | 16,510 |
Spectra Energy Corp. | 816,257 | | 21,304 |
Sunoco, Inc. | 157,748 | | 11,915 |
Valero Energy Corp. | 785,382 | | 55,157 |
Williams Companies, Inc. | 777,254 | | 22,929 |
XTO Energy, Inc. | 478,364 | | 25,961 |
| | 1,423,208 |
TOTAL ENERGY | | 1,750,040 |
FINANCIALS - 21.2% |
Capital Markets - 3.7% |
Ameriprise Financial, Inc. | 310,981 | | 18,494 |
Bank of New York Co., Inc. | 982,794 | | 39,784 |
Bear Stearns Companies, Inc. | 155,709 | | 24,244 |
Charles Schwab Corp. | 1,335,250 | | 25,530 |
E*TRADE Financial Corp. | 555,338 | | 12,262 |
Federated Investors, Inc. Class B (non-vtg.) | 115,786 | | 4,418 |
Franklin Resources, Inc. | 217,647 | | 28,579 |
Goldman Sachs Group, Inc. | 534,791 | | 116,911 |
Janus Capital Group, Inc. | 246,662 | | 6,171 |
Legg Mason, Inc. | 170,969 | | 16,958 |
Lehman Brothers Holdings, Inc. | 683,944 | | 51,487 |
Mellon Financial Corp. | 540,787 | | 23,216 |
Merrill Lynch & Co., Inc. (d) | 1,149,686 | | 103,736 |
Morgan Stanley | 1,383,997 | | 116,270 |
Northern Trust Corp. | 245,167 | | 15,433 |
State Street Corp. | 434,017 | | 29,891 |
T. Rowe Price Group, Inc. | 344,913 | | 17,135 |
| | 650,519 |
Commercial Banks - 3.9% |
BB&T Corp. (d) | 704,612 | | 29,326 |
Comerica, Inc. | 204,959 | | 12,689 |
Commerce Bancorp, Inc. | 243,809 | | 8,153 |
Compass Bancshares, Inc. | 169,444 | | 11,553 |
Fifth Third Bancorp | 723,160 | | 29,353 |
First Horizon National Corp. (d) | 162,936 | | 6,389 |
Huntington Bancshares, Inc. | 306,171 | | 6,791 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Commercial Banks - continued |
KeyCorp | 514,686 | | $ 18,364 |
M&T Bank Corp. | 99,875 | | 11,120 |
Marshall & Ilsley Corp. | 332,450 | | 15,964 |
National City Corp. | 770,259 | | 28,153 |
PNC Financial Services Group, Inc. | 450,033 | | 33,347 |
Regions Financial Corp. | 951,305 | | 33,381 |
SunTrust Banks, Inc. | 461,865 | | 38,991 |
Synovus Financial Corp. | 424,608 | | 13,401 |
U.S. Bancorp, Delaware | 2,302,676 | | 79,097 |
Wachovia Corp. | 2,477,572 | | 137,604 |
Wells Fargo & Co. | 4,392,394 | | 157,643 |
Zions Bancorp | 143,003 | | 11,698 |
| | 683,017 |
Consumer Finance - 0.9% |
American Express Co. | 1,550,109 | | 94,045 |
Capital One Financial Corp. | 533,795 | | 39,640 |
SLM Corp. | 533,644 | | 28,726 |
| | 162,411 |
Diversified Financial Services - 5.3% |
Bank of America Corp. | 5,814,261 | | 295,946 |
Chicago Mercantile Exchange Holdings, Inc. Class A | 45,306 | | 23,412 |
CIT Group, Inc. | 251,558 | | 15,005 |
Citigroup, Inc. | 6,373,529 | | 341,749 |
JPMorgan Chase & Co. | 4,515,550 | | 235,260 |
Moody's Corp. | 304,135 | | 20,109 |
| | 931,481 |
Insurance - 4.7% |
ACE Ltd. | 424,763 | | 25,256 |
AFLAC, Inc. | 639,467 | | 32,830 |
Allstate Corp. | 804,394 | | 50,130 |
AMBAC Financial Group, Inc. (d) | 133,072 | | 12,216 |
American International Group, Inc. | 3,382,205 | | 236,450 |
Aon Corp. | 387,906 | | 15,031 |
Assurant, Inc. | 130,432 | | 7,504 |
Cincinnati Financial Corp. | 224,697 | | 10,165 |
Genworth Financial, Inc. Class A (non-vtg.) | 573,048 | | 20,911 |
Hartford Financial Services Group, Inc. | 416,301 | | 42,130 |
Lincoln National Corp. | 359,867 | | 25,605 |
Loews Corp. | 586,421 | | 27,749 |
Marsh & McLennan Companies, Inc. | 718,640 | | 22,824 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
MBIA, Inc. | 175,170 | | $ 12,185 |
MetLife, Inc. | 978,512 | | 64,288 |
Principal Financial Group, Inc. | 348,257 | | 22,111 |
Progressive Corp. | 967,863 | | 22,329 |
Prudential Financial, Inc. | 609,726 | | 57,924 |
SAFECO Corp. | 137,244 | | 9,160 |
The Chubb Corp. | 531,189 | | 28,594 |
The Travelers Companies, Inc. | 878,314 | | 47,517 |
Torchmark Corp. | 127,387 | | 8,701 |
UnumProvident Corp. | 445,473 | | 11,083 |
XL Capital Ltd. Class A | 235,376 | | 18,355 |
| | 831,048 |
Real Estate Investment Trusts - 1.2% |
Apartment Investment & Management Co. Class A | 126,856 | | 7,015 |
Archstone-Smith Trust | 286,506 | | 14,930 |
AvalonBay Communities, Inc. | 103,153 | | 12,611 |
Boston Properties, Inc. | 154,634 | | 18,179 |
Developers Diversified Realty Corp. | 164,821 | | 10,730 |
Equity Residential (SBI) | 382,238 | | 17,747 |
Host Hotels & Resorts, Inc. | 677,059 | | 17,360 |
Kimco Realty Corp. | 293,873 | | 14,126 |
Plum Creek Timber Co., Inc. | 230,508 | | 9,151 |
ProLogis Trust | 333,122 | | 21,586 |
Public Storage, Inc. | 159,490 | | 14,884 |
Simon Property Group, Inc. | 288,077 | | 33,210 |
Vornado Realty Trust | 169,498 | | 20,108 |
| | 211,637 |
Real Estate Management & Development - 0.1% |
CB Richard Ellis Group, Inc. Class A (a) | 242,840 | | 8,220 |
Thrifts & Mortgage Finance - 1.4% |
Countrywide Financial Corp. | 766,797 | | 28,433 |
Fannie Mae | 1,258,330 | | 74,141 |
Freddie Mac | 900,939 | | 58,363 |
Hudson City Bancorp, Inc. | 643,415 | | 8,570 |
MGIC Investment Corp. (d) | 107,956 | | 6,651 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - continued |
Sovereign Bancorp, Inc. | 469,460 | | $ 11,394 |
Washington Mutual, Inc. | 1,155,796 | | 48,520 |
| | 236,072 |
TOTAL FINANCIALS | | 3,714,405 |
HEALTH CARE - 12.0% |
Biotechnology - 1.4% |
Amgen, Inc. (a) | 1,517,763 | | 97,349 |
Biogen Idec, Inc. (a) | 445,187 | | 21,017 |
Celgene Corp. (a) | 490,840 | | 30,020 |
Genzyme Corp. (a) | 342,504 | | 22,369 |
Gilead Sciences, Inc. (a)(d) | 604,090 | | 49,366 |
MedImmune, Inc. (a) | 309,085 | | 17,519 |
| | 237,640 |
Health Care Equipment & Supplies - 1.7% |
Bausch & Lomb, Inc. | 70,643 | | 4,156 |
Baxter International, Inc. | 844,793 | | 47,841 |
Becton, Dickinson & Co. | 317,982 | | 25,022 |
Biomet, Inc. | 318,409 | | 13,755 |
Boston Scientific Corp. (a) | 1,539,621 | | 23,772 |
C.R. Bard, Inc. | 134,257 | | 11,161 |
Hospira, Inc. (a) | 202,749 | | 8,221 |
Medtronic, Inc. | 1,497,098 | | 79,241 |
St. Jude Medical, Inc. (a) | 447,532 | | 19,150 |
Stryker Corp. | 387,636 | | 25,173 |
Varian Medical Systems, Inc. (a) | 166,988 | | 7,049 |
Zimmer Holdings, Inc. (a) | 308,325 | | 27,897 |
| | 292,438 |
Health Care Providers & Services - 2.2% |
Aetna, Inc. | 671,349 | | 31,473 |
AmerisourceBergen Corp. | 246,314 | | 12,313 |
Cardinal Health, Inc. | 520,406 | | 36,402 |
CIGNA Corp. | 126,719 | | 19,716 |
Coventry Health Care, Inc. (a) | 207,326 | | 11,990 |
Express Scripts, Inc. (a) | 176,335 | | 16,849 |
Humana, Inc. (a) | 216,747 | | 13,707 |
Laboratory Corp. of America Holdings (a) | 159,127 | | 12,561 |
Manor Care, Inc. | 94,742 | | 6,148 |
McKesson Corp. | 384,032 | | 22,593 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Medco Health Solutions, Inc. (a) | 374,485 | | $ 29,217 |
Patterson Companies, Inc. (a) | 180,884 | | 6,523 |
Quest Diagnostics, Inc. | 206,410 | | 10,091 |
Tenet Healthcare Corp. (a) | 613,113 | | 4,549 |
UnitedHealth Group, Inc. | 1,760,692 | | 93,422 |
WellPoint, Inc. (a) | 796,191 | | 62,875 |
| | 390,429 |
Health Care Technology - 0.0% |
IMS Health, Inc. | 253,700 | | 7,441 |
Life Sciences Tools & Services - 0.3% |
Applera Corp. - Applied Biosystems Group | 238,628 | | 7,455 |
Millipore Corp. (a) | 70,113 | | 5,176 |
PerkinElmer, Inc. | 158,386 | | 3,833 |
Thermo Fisher Scientific, Inc. (a) | 546,064 | | 28,428 |
Waters Corp. (a) | 131,997 | | 7,845 |
| | 52,737 |
Pharmaceuticals - 6.4% |
Abbott Laboratories | 2,006,082 | | 113,584 |
Allergan, Inc. | 199,891 | | 24,227 |
Barr Pharmaceuticals, Inc. (a) | 138,650 | | 6,705 |
Bristol-Myers Squibb Co. | 2,625,438 | | 75,770 |
Eli Lilly & Co. | 1,282,648 | | 75,843 |
Forest Laboratories, Inc. (a) | 413,234 | | 21,988 |
Johnson & Johnson | 3,762,470 | | 241,626 |
King Pharmaceuticals, Inc. (a) | 316,174 | | 6,466 |
Merck & Co., Inc. | 2,816,549 | | 144,883 |
Mylan Laboratories, Inc. | 318,201 | | 6,978 |
Pfizer, Inc. | 9,213,389 | | 243,786 |
Schering-Plough Corp. | 1,934,151 | | 61,371 |
Watson Pharmaceuticals, Inc. (a) | 133,256 | | 3,638 |
Wyeth | 1,750,097 | | 97,130 |
| | 1,123,995 |
TOTAL HEALTH CARE | | 2,104,680 |
INDUSTRIALS - 10.8% |
Aerospace & Defense - 2.4% |
General Dynamics Corp. | 527,469 | | 41,406 |
Goodrich Corp. | 162,995 | | 9,265 |
Honeywell International, Inc. | 1,039,951 | | 56,345 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Aerospace & Defense - continued |
L-3 Communications Holdings, Inc. | 161,880 | | $ 14,558 |
Lockheed Martin Corp. | 461,371 | | 44,356 |
Northrop Grumman Corp. | 455,360 | | 33,533 |
Raytheon Co. | 580,076 | | 31,057 |
Rockwell Collins, Inc. | 218,710 | | 14,363 |
The Boeing Co. | 1,026,089 | | 95,426 |
United Technologies Corp. | 1,294,577 | | 86,905 |
| | 427,214 |
Air Freight & Logistics - 0.9% |
C.H. Robinson Worldwide, Inc. | 225,035 | | 12,030 |
FedEx Corp. | 399,271 | | 42,099 |
United Parcel Service, Inc. Class B | 1,386,454 | | 97,648 |
| | 151,777 |
Airlines - 0.1% |
Southwest Airlines Co. (d) | 1,025,006 | | 14,709 |
Building Products - 0.2% |
American Standard Companies, Inc. | 227,126 | | 12,506 |
Masco Corp. | 509,102 | | 13,853 |
| | 26,359 |
Commercial Services & Supplies - 0.5% |
Allied Waste Industries, Inc. | 331,508 | | 4,432 |
Avery Dennison Corp. | 119,127 | | 7,410 |
Cintas Corp. | 176,485 | | 6,613 |
Equifax, Inc. | 162,324 | | 6,460 |
Monster Worldwide, Inc. (a) | 167,038 | | 7,024 |
Pitney Bowes, Inc. | 286,397 | | 13,747 |
R.R. Donnelley & Sons Co. | 283,931 | | 11,414 |
Robert Half International, Inc. | 218,373 | | 7,272 |
Waste Management, Inc. | 693,030 | | 25,926 |
| | 90,298 |
Construction & Engineering - 0.1% |
Fluor Corp. | 114,322 | | 10,931 |
Electrical Equipment - 0.4% |
Cooper Industries Ltd. Class A | 237,245 | | 11,805 |
Emerson Electric Co. | 1,037,306 | | 48,743 |
Rockwell Automation, Inc. | 215,378 | | 12,824 |
| | 73,372 |
Industrial Conglomerates - 3.8% |
3M Co. | 954,093 | | 78,970 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - continued |
General Electric Co. | 13,368,646 | | $ 492,768 |
Textron, Inc. | 162,874 | | 16,559 |
Tyco International Ltd. | 2,570,508 | | 83,876 |
| | 672,173 |
Machinery - 1.6% |
Caterpillar, Inc. | 839,587 | | 60,971 |
Cummins, Inc. | 135,467 | | 12,485 |
Danaher Corp. | 309,423 | | 22,028 |
Deere & Co. | 294,923 | | 32,265 |
Dover Corp. | 266,126 | | 12,806 |
Eaton Corp. | 190,068 | | 16,956 |
Illinois Tool Works, Inc. | 537,611 | | 27,585 |
Ingersoll-Rand Co. Ltd. Class A | 400,159 | | 17,867 |
ITT Corp. | 236,343 | | 15,081 |
PACCAR, Inc. | 322,756 | | 27,105 |
Pall Corp. | 159,911 | | 6,708 |
Parker Hannifin Corp. | 150,508 | | 13,868 |
Terex Corp. (a) | 133,386 | | 10,384 |
| | 276,109 |
Road & Rail - 0.8% |
Burlington Northern Santa Fe Corp. | 466,667 | | 40,852 |
CSX Corp. | 567,856 | | 24,514 |
Norfolk Southern Corp. | 516,104 | | 27,477 |
Ryder System, Inc. | 78,938 | | 4,155 |
Union Pacific Corp. | 351,993 | | 40,215 |
| | 137,213 |
Trading Companies & Distributors - 0.0% |
W.W. Grainger, Inc. | 93,100 | | 7,692 |
TOTAL INDUSTRIALS | | 1,887,847 |
INFORMATION TECHNOLOGY - 14.7% |
Communications Equipment - 2.6% |
ADC Telecommunications, Inc. (a) | 152,458 | | 2,805 |
Avaya, Inc. (a) | 589,363 | | 7,615 |
Ciena Corp. (a)(d) | 110,655 | | 3,227 |
Cisco Systems, Inc. (a) | 7,852,384 | | 209,973 |
Corning, Inc. (a) | 2,040,694 | | 48,405 |
JDS Uniphase Corp. (a) | 274,558 | | 4,525 |
Juniper Networks, Inc. (a)(d) | 740,036 | | 16,547 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Motorola, Inc. | 3,107,663 | | $ 53,856 |
QUALCOMM, Inc. | 2,153,566 | | 94,326 |
Tellabs, Inc. (a) | 568,542 | | 6,038 |
| | 447,317 |
Computers & Peripherals - 3.7% |
Apple, Inc. (a) | 1,120,486 | | 111,825 |
Dell, Inc. (a) | 2,953,226 | | 74,451 |
EMC Corp. (a) | 2,740,676 | | 41,603 |
Hewlett-Packard Co. | 3,479,532 | | 146,627 |
International Business Machines Corp. | 1,957,272 | | 200,053 |
Lexmark International, Inc. Class A (a)(d) | 124,816 | | 6,802 |
NCR Corp. (a) | 232,710 | | 11,729 |
Network Appliance, Inc. (a) | 482,398 | | 17,950 |
QLogic Corp. (a) | 206,780 | | 3,697 |
SanDisk Corp. (a) | 295,585 | | 12,843 |
Sun Microsystems, Inc. (a) | 4,681,181 | | 24,436 |
| | 652,016 |
Electronic Equipment & Instruments - 0.2% |
Agilent Technologies, Inc. (a) | 524,773 | | 18,036 |
Jabil Circuit, Inc. | 240,109 | | 5,595 |
Molex, Inc. | 184,317 | | 5,507 |
Sanmina-SCI Corp. (a) | 689,105 | | 2,377 |
Solectron Corp. (a) | 1,175,304 | | 3,937 |
Tektronix, Inc. | 106,237 | | 3,122 |
| | 38,574 |
Internet Software & Services - 1.4% |
eBay, Inc. (a) | 1,477,187 | | 50,136 |
Google, Inc. Class A (sub. vtg.) (a) | 282,983 | | 133,393 |
VeriSign, Inc. (a) | 318,694 | | 8,716 |
Yahoo!, Inc. (a) | 1,587,221 | | 44,506 |
| | 236,751 |
IT Services - 1.1% |
Affiliated Computer Services, Inc. Class A (a) | 128,594 | | 7,704 |
Automatic Data Processing, Inc. | 715,406 | | 32,022 |
Cognizant Technology Solutions Corp. Class A (a) | 185,498 | | 16,584 |
Computer Sciences Corp. (a) | 225,191 | | 12,507 |
Convergys Corp. (a) | 177,663 | | 4,488 |
Electronic Data Systems Corp. | 668,796 | | 19,556 |
Fidelity National Information Services, Inc. | 211,626 | | 10,693 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
First Data Corp. | 978,932 | | $ 31,717 |
Fiserv, Inc. (a) | 221,775 | | 11,792 |
Paychex, Inc. | 440,959 | | 16,360 |
The Western Union Co. | 1,003,596 | | 21,126 |
Unisys Corp. (a) | 448,849 | | 3,519 |
| | 188,068 |
Office Electronics - 0.1% |
Xerox Corp. (a)(d) | 1,233,718 | | 22,824 |
Semiconductors & Semiconductor Equipment - 2.4% |
Advanced Micro Devices, Inc. (a)(d) | 721,438 | | 9,970 |
Altera Corp. | 463,519 | | 10,448 |
Analog Devices, Inc. | 433,854 | | 16,755 |
Applied Materials, Inc. | 1,816,015 | | 34,904 |
Broadcom Corp. Class A (a)(d) | 613,026 | | 19,954 |
Intel Corp. | 7,497,424 | | 161,195 |
KLA-Tencor Corp. | 259,655 | | 14,424 |
Linear Technology Corp. (d) | 389,107 | | 14,560 |
LSI Logic Corp. (a)(d) | 1,001,163 | | 8,510 |
Maxim Integrated Products, Inc. | 416,915 | | 13,225 |
Micron Technology, Inc. (a)(d) | 981,277 | | 11,255 |
National Semiconductor Corp. | 368,724 | | 9,697 |
Novellus Systems, Inc. (a)(d) | 163,483 | | 5,292 |
NVIDIA Corp. (a) | 462,229 | | 15,203 |
PMC-Sierra, Inc. (a)(d) | 276,121 | | 2,134 |
Teradyne, Inc. (a) | 246,702 | | 4,305 |
Texas Instruments, Inc. | 1,876,537 | | 64,497 |
Xilinx, Inc. | 431,442 | | 12,719 |
| | 429,047 |
Software - 3.2% |
Adobe Systems, Inc. (a) | 765,026 | | 31,794 |
Autodesk, Inc. (a) | 301,223 | | 12,431 |
BMC Software, Inc. (a) | 265,166 | | 8,583 |
CA, Inc. | 534,765 | | 14,578 |
Citrix Systems, Inc. (a) | 234,771 | | 7,654 |
Compuware Corp. (a) | 421,533 | | 4,161 |
Electronic Arts, Inc. (a) | 403,073 | | 20,319 |
Intuit, Inc. (a) | 445,358 | | 12,670 |
Microsoft Corp. | 11,202,892 | | 335,415 |
Novell, Inc. (a) | 440,733 | | 3,217 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Oracle Corp. (a) | 5,187,598 | | $ 97,527 |
Symantec Corp. (a) | 1,202,001 | | 21,155 |
| | 569,504 |
TOTAL INFORMATION TECHNOLOGY | | 2,584,101 |
MATERIALS - 3.0% |
Chemicals - 1.5% |
Air Products & Chemicals, Inc. | 281,395 | | 21,527 |
Ashland, Inc. | 72,474 | | 4,345 |
Dow Chemical Co. | 1,246,972 | | 55,627 |
E.I. du Pont de Nemours & Co. | 1,201,415 | | 59,074 |
Eastman Chemical Co. | 108,734 | | 7,361 |
Ecolab, Inc. | 231,345 | | 9,946 |
Hercules, Inc. (a) | 151,350 | | 2,851 |
International Flavors & Fragrances, Inc. | 101,537 | | 4,942 |
Monsanto Co. | 706,589 | | 41,682 |
PPG Industries, Inc. | 213,179 | | 15,686 |
Praxair, Inc. | 416,499 | | 26,885 |
Rohm & Haas Co. | 185,038 | | 9,468 |
Sigma Aldrich Corp. | 171,693 | | 7,225 |
| | 266,619 |
Construction Materials - 0.1% |
Vulcan Materials Co. (d) | 123,519 | | 15,276 |
Containers & Packaging - 0.2% |
Ball Corp. | 134,020 | | 6,793 |
Bemis Co., Inc. | 135,974 | | 4,517 |
Pactiv Corp. (a) | 172,754 | | 5,974 |
Sealed Air Corp. | 209,759 | | 6,901 |
Temple-Inland, Inc. | 136,703 | | 8,098 |
| | 32,283 |
Metals & Mining - 0.9% |
Alcoa, Inc. | 1,130,447 | | 40,120 |
Allegheny Technologies, Inc. | 132,585 | | 14,529 |
Freeport-McMoRan Copper & Gold, Inc. Class B (d) | 487,302 | | 32,727 |
Newmont Mining Corp. | 586,263 | | 24,447 |
Nucor Corp. | 391,487 | | 24,844 |
United States Steel Corp. | 154,041 | | 15,641 |
| | 152,308 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Paper & Forest Products - 0.3% |
International Paper Co. | 588,390 | | $ 22,194 |
MeadWestvaco Corp. | 237,213 | | 7,913 |
Weyerhaeuser Co. | 274,584 | | 21,753 |
| | 51,860 |
TOTAL MATERIALS | | 518,346 |
TELECOMMUNICATION SERVICES - 3.5% |
Diversified Telecommunication Services - 2.9% |
AT&T, Inc. | 8,117,736 | | 314,319 |
CenturyTel, Inc. | 144,792 | | 6,668 |
Citizens Communications Co. | 440,387 | | 6,857 |
Embarq Corp. | 195,702 | | 11,750 |
Qwest Communications International, Inc. (a)(d) | 2,039,186 | | 18,108 |
Verizon Communications, Inc. | 3,783,026 | | 144,436 |
Windstream Corp. | 619,785 | | 9,061 |
| | 511,199 |
Wireless Telecommunication Services - 0.6% |
ALLTEL Corp. | 468,329 | | 29,360 |
Sprint Nextel Corp. | 3,773,437 | | 75,582 |
| | 104,942 |
TOTAL TELECOMMUNICATION SERVICES | | 616,141 |
UTILITIES - 3.7% |
Electric Utilities - 1.9% |
Allegheny Energy, Inc. (a) | 213,788 | | 11,429 |
American Electric Power Co., Inc. | 515,700 | | 25,898 |
Duke Energy Corp. | 1,634,321 | | 33,536 |
Edison International | 423,573 | | 22,174 |
Entergy Corp. | 257,814 | | 29,169 |
Exelon Corp. | 871,242 | | 65,700 |
FirstEnergy Corp. | 414,986 | | 28,402 |
FPL Group, Inc. | 527,289 | | 33,942 |
Pinnacle West Capital Corp. | 130,021 | | 6,279 |
PPL Corp. | 500,644 | | 21,833 |
Progress Energy, Inc. | 334,256 | | 16,897 |
Southern Co. | 973,214 | | 36,778 |
| | 332,037 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Gas Utilities - 0.1% |
Nicor, Inc. | 58,388 | | $ 2,992 |
Questar Corp. | 111,734 | | 10,853 |
| | 13,845 |
Independent Power Producers & Energy Traders - 0.5% |
AES Corp. (a) | 863,482 | | 18,988 |
Constellation Energy Group, Inc. | 234,894 | | 20,934 |
Dynegy, Inc. (a) | 522,994 | | 4,921 |
TXU Corp. | 597,039 | | 39,154 |
| | 83,997 |
Multi-Utilities - 1.2% |
Ameren Corp. | 268,592 | | 14,120 |
CenterPoint Energy, Inc. (d) | 416,121 | | 7,836 |
CMS Energy Corp. | 290,245 | | 5,375 |
Consolidated Edison, Inc. | 334,956 | | 17,170 |
Dominion Resources, Inc. | 453,682 | | 41,376 |
DTE Energy Co. | 230,271 | | 11,649 |
Integrys Energy Group, Inc. | 97,711 | | 5,482 |
KeySpan Corp. | 228,274 | | 9,453 |
NiSource, Inc. | 356,023 | | 8,755 |
PG&E Corp. | 456,081 | | 23,078 |
Public Service Enterprise Group, Inc. | 328,617 | | 28,409 |
Sempra Energy | 341,810 | | 21,698 |
TECO Energy, Inc. | 272,478 | | 4,891 |
Xcel Energy, Inc. | 530,101 | | 12,770 |
| | 212,062 |
TOTAL UTILITIES | | 641,941 |
TOTAL COMMON STOCKS (Cost $12,104,407) | 17,226,284 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 4.97% 6/21/07 (e)
(Cost $16,383) | | $ 16,500 | | 16,389 |
Money Market Funds - 3.7% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 5.29% (b) | 272,880,620 | | $ 272,881 |
Fidelity Securities Lending Cash Central Fund, 5.31% (b)(c) | 369,479,690 | | 369,480 |
TOTAL MONEY MARKET FUNDS (Cost $642,361) | 642,361 |
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $12,763,151) | | 17,885,034 |
NET OTHER ASSETS - (2.1)% | | (362,083) |
NET ASSETS - 100% | $ 17,522,951 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
801 S&P 500 Index Contracts | June 2007 | | $ 298,052 | | $ 15,266 |
|
The face value of futures purchased as a percentage of net assets - 1.7% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $13,369,000. |
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
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 14,818 |
Fidelity Securities Lending Cash Central Fund | 759 |
Total | $ 15,577 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2007 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $357,282) - See accompanying schedule: Unaffiliated issuers (cost $12,120,790) | $ 17,242,673 | |
Fidelity Central Funds (cost $642,361) | 642,361 | |
Total Investments (cost $12,763,151) | | $ 17,885,034 |
Receivable for fund shares sold | | 15,001 |
Dividends receivable | | 14,146 |
Distributions receivable from Fidelity Central Funds | | 1,219 |
Other receivables | | 203 |
Total assets | | 17,915,603 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 19,067 | |
Accrued management fee | 1,010 | |
Payable for daily variation on futures contracts | 2,745 | |
Other affiliated payables | 211 | |
Other payables and accrued expenses | 139 | |
Collateral on securities loaned, at value | 369,480 | |
Total liabilities | | 392,652 |
| | |
Net Assets | | $ 17,522,951 |
Net Assets consist of: | | |
Paid in capital | | $ 12,369,052 |
Undistributed net investment income | | 106,422 |
Accumulated undistributed net realized gain (loss) on investments | | (89,672) |
Net unrealized appreciation (depreciation) on investments | | 5,137,149 |
Net Assets | | $ 17,522,951 |
| | |
Investor Class: Net Asset Value, offering price and redemption price per share ($8,370,411 ÷ 81,314 shares) | | $ 102.94 |
| | |
Fidelity Advantage Class: Net Asset Value, offering price and redemption price per share ($9,152,540 ÷ 88,903 shares) | | $ 102.95 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended April 30, 2007 |
| | |
Investment Income | | |
Dividends | | $ 281,208 |
Interest | | 808 |
Income from Fidelity Central Funds | | 15,577 |
Total income | | 297,593 |
| | |
Expenses | | |
Management fee | $ 10,672 | |
Transfer agent fees | 2,251 | |
Independent trustees' compensation | 50 | |
Depreciation in deferred trustee compensation account | (1) | |
Miscellaneous | 38 | |
Total expenses before reductions | 13,010 | |
Expense reductions | (116) | 12,894 |
Net investment income (loss) | | 284,699 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 56,950 | |
Futures contracts | 23,955 | |
Total net realized gain (loss) | | 80,905 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,843,649 | |
Futures contracts | 15,150 | |
Total change in net unrealized appreciation (depreciation) | | 1,858,799 |
Net gain (loss) | | 1,939,704 |
Net increase (decrease) in net assets resulting from operations | | $ 2,224,403 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
April 30,
2007 | Year ended
April 30,
2006 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 284,699 | $ 235,233 |
Net realized gain (loss) | 80,905 | 364,657 |
Change in net unrealized appreciation (depreciation) | 1,858,799 | 1,264,489 |
Net increase (decrease) in net assets resulting
from operations | 2,224,403 | 1,864,379 |
Distributions to shareholders from net investment income | (244,810) | (210,865) |
Share transactions - net increase (decrease) | 1,532,946 | 324,647 |
Redemption fees | 93 | 354 |
Total increase (decrease) in net assets | 3,512,632 | 1,978,515 |
| | |
Net Assets | | |
Beginning of period | 14,010,319 | 12,031,804 |
End of period (including undistributed net investment income of $106,422 and undistributed net investment income of $91,024, respectively) | $ 17,522,951 | $ 14,010,319 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Investor Class
Years ended April 30, | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value,
beginning of period | $ 90.83 | $ 80.02 | $ 76.63 | $ 63.37 | $ 74.28 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | 1.75 | 1.51 | 1.54 E | 1.10 | 1.02 |
Net realized and unrealized gain (loss) | 11.87 | 10.68 | 3.26 | 13.18 | (10.95) |
Total from investment operations | 13.62 | 12.19 | 4.80 | 14.28 | (9.93) |
Distributions from net investment income | (1.51) | (1.38) | (1.41) | (1.02) | (.99) |
Redemption fees added to paid in capital B | - G | - G | - G | - G | .01 |
Net asset value, end of period | $ 102.94 | $ 90.83 | $ 80.02 | $ 76.63 | $ 63.37 |
Total Return A | 15.14% | 15.34% | 6.25% | 22.65% | (13.38)% |
Ratios to Average Net Assets C, F | | | | | |
Expenses before reductions | .10% | .10% | .32% | .39% | .41% |
Expenses net of fee waivers,
if any | .10% | .10% | .13% | .19% | .19% |
Expenses net of all reductions | .10% | .10% | .13% | .19% | .19% |
Net investment income (loss) | 1.86% | 1.77% | 1.94% E | 1.51% | 1.62% |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 8,370 | $ 7,247 | $ 12,032 | $ 10,194 | $ 7,270 |
Portfolio turnover rate D | 5% | 7% | 4% | 4% | 9% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.23 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.64%.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Fidelity Advantage Class
Years ended April 30, | 2007 | 2006 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 90.84 | $ 82.30 |
Income from Investment Operations | | |
Net investment income (loss) D | 1.78 | .87 |
Net realized and unrealized gain (loss) | 11.87 | 8.61 |
Total from investment operations | 13.65 | 9.48 |
Distributions from net investment income | (1.54) | (.94) |
Redemption fees added to paid in capital D, I | - | - |
Net asset value, end of period | $ 102.95 | $ 90.84 |
Total Return B, C | 15.18% | 11.56% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .07% | .07% A |
Expenses net of fee waivers, if any | .07% | .07% A |
Expenses net of all reductions | .07% | .07% A |
Net investment income (loss) | 1.89% | 1.81% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 9,153 | $ 6,763 |
Portfolio turnover rate F | 5% | 7% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period October 14, 2005 (commencement of sale of shares) to April 30, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended April 30, 2007
(Amounts in thousands except ratios)
1. Organization.
Spartan 500 Index Fund (the Fund) is a fund of Fidelity Commonwealth Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The Fund offers Investor Class and Fidelity Advantage Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Fund offers conversion privileges between share classes to eligible shareholders. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred and certain class-level expense reductions.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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 for processing shareholder transactions 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 may 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
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. 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 recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to futures transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 5,899,765 | |
Unrealized depreciation | (855,551) | |
Net unrealized appreciation (depreciation) | 5,044,214 | |
Undistributed ordinary income | 93,553 | |
Undistributed long-term capital gain | 2,518 | |
| | |
Cost for federal income tax purposes | $ 12,840,820 | |
The tax character of distributions paid was as follows:
| April 30, 2007 | April 30, 2006 |
Ordinary Income | $ 244,810 | $ 210,865 |
Short-Term Trading (Redemption) Fees. During the period, shares held in the Fund less than 90 days were subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital. On July 20, 2006, the Board of Trustees approved the removal of the redemption fee beginning July 24, 2006 for shares redeemed from accounts held directly with Fidelity, and on or before September 1, 2006 for shares redeemed through intermediaries.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for
Annual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncements - continued
measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
4. Operating Policies.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, U.S. government securities, and in-kind transactions, aggregated $2,094,278 and $702,257, respectively.
Securities received and delivered on an in-kind basis aggregated $23,992 and $32,463, respectively. Realized gain (loss) of $21,508 on securities delivered through in-kind redemptions is included in the accompanying Statement of Operations as realized gain or loss on investment securities and is not taxable to the Fund.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is based on an annual rate of .07% of average net assets. Under the management contract, FMR pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. In addition, under the expense contract, FMR pays class-level expenses of Investor Class and Fidelity Advantage Class so that total expenses do not exceed .10% and .07% of the class's average net assets, respectively, with certain exceptions.
Sub-Adviser. Geode Capital Management, LLC (Geode), serves as sub-adviser for the Fund. Geode provides discretionary investment advisory services to the Fund and is paid by FMR for providing these services.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives asset-based fees of .06% and .03% of average net assets for the Investor Class and Fidelity Advantage Class, respectively. Under the expense contract, the Investor Class pays transfer agent fees at an annual rate of .03%, and the Fidelity Advantage Class pays no transfer agent fees. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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 $38 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could
Annual Report
8. Security Lending - continued
experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $759.
9. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's management fee by $43 and reduced transfer agent fee by $73.
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.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Years ended April 30, |
| 2007 | 2006 A |
From net investment income | | |
Investor Class | $ 119,726 | $ 144,378 |
Fidelity Advantage Class | 125,084 | 66,487 |
Total | $ 244,810 | $ 210,865 |
A Distributions for Fidelity Advantage Class are for the period October 14, 2005 (commencement of sale of shares) to April 30, 2006.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Years ended April 30, | Years ended April 30, |
| 2007 | 2006 A | 2007 | 2006 A |
Investor Class | | | | |
Shares sold | 19,535 | 20,789 | $ 1,872,112 | $ 1,770,157 |
Conversions to Fidelity
Advantage Class | - | (66,836) | - | (5,500,576) |
Reinvestment of distributions | 1,196 | 1,596 | 113,390 | 135,676 |
Shares redeemed | (19,201) | (26,132) | (1,827,866) | (2,247,074) |
Net increase (decrease) | 1,530 | (70,583) | $ 157,636 | $ (5,841,817) |
Fidelity Advantage Class | | | | |
Shares sold | 27,389 | 13,911 | $ 2,605,292 | $ 1,220,593 |
Conversions to Fidelity
Advantage Class | - | 66,836 | - | 5,500,576 |
Reinvestment of distributions | 1,180 | 689 | 112,087 | 60,215 |
Shares redeemed | (14,119) | (6,983) | (1,342,069) | (614,920) |
Net increase (decrease) | 14,450 | 74,453 | $ 1,375,310 | $ 6,166,464 |
A Share transactions for Fidelity Advantage Class are for the period October 14, 2005 (commencement of sale of shares) to April 30, 2006.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Commonwealth Trust and Shareholders of Spartan 500 Index Fund:
We have audited the accompanying statement of assets and liabilities of Spartan 500 Index Fund (the Fund), a fund of Fidelity Commonwealth Trust, including the schedule of investments as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2007, by correspondence with the custodians and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Spartan 500 Index Fund as of April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
June 12, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 353 funds advised by FMR or an affiliate. Mr. Curvey oversees 314 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (76) |
| Year of Election or Appointment: 1974 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). |
James C. Curvey (71) |
| Year of Election or Appointment: 2007 Mr. Curvey is Vice Chairman (2006-present) and Director of FMR Corp. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR Corp. (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (58) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-
present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). |
Albert R. Gamper, Jr. (65) |
| Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. |
George H. Heilmeier (70) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-
2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. |
James H. Keyes (66) |
| Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-
present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). |
Marie L. Knowles (60) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (63) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. |
Cornelia M. Small (62) |
| Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
William S. Stavropoulos (67) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. |
Kenneth L. Wolfe (68) |
| Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (63) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Commonwealth Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. |
Kimberley H. Monasterio (43) |
| Year of Election or Appointment: 2007 President and Treasurer of Spartan 500 Index. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). |
Dwight D. Churchill (53) |
| Year of Election or Appointment: 2005 Vice President of Spartan 500 Index. Mr. Churchill also serves as Vice President of certain Equity Funds (2005-present). Mr. Churchill is Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-
present). Previously, Mr. Churchill served as Senior Vice President of Fidelity Investments Money Management, Inc. (2005-2006), Head of Fidelity's Fixed-Income Division (2000-2005), Vice President of Fidelity's Money Market Funds (2000-2005), Vice President of Fidelity's Bond Funds, and Senior Vice President of FMR. |
Eric D. Roiter (58) |
| Year of Election or Appointment: 1998 Secretary of Spartan 500 Index. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). |
Scott C. Goebel (39) |
| Year of Election or Appointment: 2007 Assistant Secretary of Spartan 500 Index. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR. |
R. Stephen Ganis (41) |
| Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Spartan 500 Index. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). |
Joseph B. Hollis (59) |
| Year of Election or Appointment: 2006 Chief Financial Officer of Spartan 500 Index. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-
present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). |
Kenneth A. Rathgeber (59) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Spartan 500 Index. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-
present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). |
Bryan A. Mehrmann (46) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Spartan 500 Index. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). |
Kenneth B. Robins (37) |
| Year of Election or Appointment: 2005 Deputy Treasurer of Spartan 500 Index. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-
2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). |
Robert G. Byrnes (40) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Spartan 500 Index. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). |
Peter L. Lydecker (53) |
| Year of Election or Appointment: 2004 Assistant Treasurer of Spartan 500 Index. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. |
Gary W. Ryan (48) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Spartan 500 Index. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). |
Salvatore Schiavone (41) |
| Year of Election or Appointment: 2005 Assistant Treasurer of Spartan 500 Index. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of Spartan 500 Index Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains |
Investor Class | 06/04/07 | 06/01/07 | $ .55 | $.01 |
Fidelity Advantage Class | 06/04/07 | 06/01/07 | $ .5637 | $.01 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended April 30, 2007, $2,870,000, or, if subsequently determined to be different, the net capital gain of such year.
Investor Class and Fidelity Advantage Class designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Investor Class and Fidelity Advantage Class designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
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SMI-UANN-0607
1.784730.104
Item 2. Code of Ethics
As of the end of the period, April 30, 2007, Fidelity Commonwealth Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees.
For the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Audit Fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, "Deloitte Entities") for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for Fidelity Large Cap Stock Fund, Fidelity Mid-Cap Stock Fund, Fidelity Small Cap Retirement Fund, Fidelity Small Cap Stock Fund and Spartan 500 Index Fund (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.
Fund | 2007A | 2006A |
Fidelity Large Cap Stock Fund | $41,000 | $35,000 |
Fidelity Mid-Cap Stock Fund | $53,000 | $45,000 |
Fidelity Small Cap Retirement Fund | $42,000 | $37,000 |
Fidelity Small Cap Stock Fund | $48,000 | $42,000 |
Spartan 500 Index Fund | $58,000 | $52,000 |
All funds in the Fidelity Group of Funds audited by Deloitte Entities | $6,900,000 | $5,900,000 |
A | Aggregate amounts may reflect rounding. |
(b) Audit-Related Fees.
In each of the fiscal years ended April 30, 2007 and April 30, 2006 the aggregate Audit-Related Fees billed by Deloitte Entities for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Fund | 2007A | 2006A |
Fidelity Large Cap Stock Fund | $0 | $0 |
Fidelity Mid-Cap Stock Fund | $0 | $0 |
Fidelity Small Cap Retirement Fund | $0 | $0 |
Fidelity Small Cap Stock Fund | $0 | $0 |
Spartan 500 Index Fund | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Audit-Related Fees that were billed by Deloitte Entities that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Billed By | 2007A | 2006A |
Deloitte Entities | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(c) Tax Fees.
In each of the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Tax Fees billed by Deloitte Entities for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.
Fund | 2007A | 2006A |
Fidelity Large Cap Stock Fund | $4,200 | $4,000 |
Fidelity Mid-Cap Stock Fund | $4,200 | $4,000 |
Fidelity Small Cap Retirement Fund | $4,200 | $3,800 |
Fidelity Small Cap Stock Fund | $4,200 | $4,000 |
Spartan 500 Index Fund | $4,200 | $4,000 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Tax Fees billed by Deloitte Entities that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2007A | 2006A |
Deloitte Entities | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) All Other Fees.
In each of the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Other Fees billed by Deloitte Entities for all other non-audit services rendered to the funds is shown in the table below.
Fund | 2007A | 2006A |
Fidelity Large Cap Stock Fund | $0 | $0 |
Fidelity Mid-Cap Stock Fund | $0 | $0 |
Fidelity Small Cap Retirement Fund | $0 | $0 |
Fidelity Small Cap Stock Fund | $0 | $0 |
Spartan 500 Index Fund | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate Other Fees billed by Deloitte Entities that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2007A | 2006A |
Deloitte Entities | $275,000 | $160,000 |
A | Aggregate amounts may reflect rounding. |
Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.
(e) (1) | Audit Committee Pre-Approval Policies and Procedures: |
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.
All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.
(e) (2) | Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: |
Audit-Related Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
Tax Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended April 30, 2007 and April 30, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
(f) Not Applicable.
(g) For the fiscal years ended April 30, 2007 and April 30, 2006, the aggregate fees billed by Deloitte Entities of $720,000A and $530,000A for non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.
| 2007A | 2006A |
Covered Services | $295,000 | $180,000 |
Non-Covered Services | $425,000 | $350,000 |
A | Aggregate amounts may reflect rounding. |
(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the funds, taking into account representations from Deloitte Entities, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Commonwealth Trust
By: | /s/Kimberley Monasterio |
| Kimberley Monasterio |
| President and Treasurer |
| |
Date: | June 15, 2007 |
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/Kimberley Monasterio |
| Kimberley Monasterio |
| President and Treasurer |
| |
Date: | June 15, 2007 |
By: | /s/Joseph B. Hollis |
| Joseph B. Hollis |
| Chief Financial Officer |
| |
Date: | June 15, 2007 |
