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 811-1400
Fidelity Contrafund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, 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: | December 31 |
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Date of reporting period: | December 31, 2009 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
New Insights
Fund - Class A, Class T, Class B
and Class C
Annual Report
December 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
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Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
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To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the 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 can be tax advantages and cost benefits to consider as well. 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 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 "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 by 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, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total 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 December 31, 2009 | Past 1 | Past 5 | Life of |
Class A (incl. 5.75% sales charge) | 21.69% | 3.73% | 8.48% |
Class T (incl. 3.50% sales charge) | 24.30% | 3.97% | 8.63% |
Class B (incl. contingent deferred sales charge)B | 23.03% | 3.77% | 8.60% |
Class C (incl. contingent deferred sales charge)C | 27.10% | 4.18% | 8.67% |
A From July 31, 2003.
B Class B shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.
C Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
See accompanying notes which are an integral part of the financial statements.
Annual Report
$10,000 Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Advisor New Insights Fund - Class A on July 31, 2003, when the fund started, and the current 5.75% sales charge was paid. 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
Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.
Comments from William Danoff, Portfolio Manager of Fidelity® Advisor New Insights Fund: It was a relatively good year for the fund, whose Class A, Class T, Class B and Class C shares rose 29.12%, 28.81%, 28.03%, 28.10%, respectively (excluding sales charges), solidly beating the S&P 500. Relative performance was driven by good stock selection and an overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed. Foreign holdings also did well, bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.
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 sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) 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 (July 1, 2009 to December 31, 2009).
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. 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. 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
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.16% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,219.90 | $ 6.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Class T | 1.41% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,217.40 | $ 7.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,214.30 | $ 11.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 1.91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,214.20 | $ 10.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Institutional Class | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,220.70 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.52 | $ 4.74 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A | 5.7 | 4.6 |
Apple, Inc. | 5.2 | 4.1 |
Wells Fargo & Co. | 3.1 | 3.3 |
Berkshire Hathaway, Inc. Class A | 2.8 | 3.4 |
Visa, Inc. Class A | 2.6 | 2.1 |
The Coca-Cola Co. | 2.3 | 2.3 |
McDonald's Corp. | 2.1 | 2.3 |
Gilead Sciences, Inc. | 1.6 | 2.1 |
The Walt Disney Co. | 1.6 | 1.3 |
Noble Energy, Inc. | 1.4 | 1.5 |
| 28.4 | |
Top Five Market Sectors as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 30.3 | 26.4 |
Consumer Discretionary | 14.8 | 12.6 |
Health Care | 13.0 | 15.3 |
Financials | 12.1 | 12.0 |
Consumer Staples | 7.7 | 8.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2009* | As of June 30, 2009** | ||||||
![]() | Stocks 93.8% |
| ![]() | Stocks 90.8% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 21.6% |
| ** Foreign investments | 18.4% |
|
Annual Report
Investments December 31, 2009
Showing Percentage of Net Assets
Common Stocks - 93.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 14.8% | |||
Auto Components - 0.1% | |||
Autoliv, Inc. | 27,800 | $ 1,205 | |
Gentex Corp. | 65,500 | 1,169 | |
Johnson Controls, Inc. | 94,800 | 2,582 | |
TRW Automotive Holdings Corp. (a) | 166,000 | 3,964 | |
| 8,920 | ||
Automobiles - 0.5% | |||
Dongfeng Motor Group Co. Ltd. (H Shares) | 5,534,000 | 7,902 | |
Geely Automobile Holdings Ltd. (c) | 48,420,000 | 26,426 | |
Honda Motor Co. Ltd. sponsored ADR (c) | 392,000 | 13,289 | |
Toyota Motor Corp. | 314,100 | 13,249 | |
| 60,866 | ||
Diversified Consumer Services - 0.2% | |||
Brinks Home Security Holdings, Inc. (a) | 27,900 | 911 | |
MegaStudy Co. Ltd. | 5,835 | 1,196 | |
Strayer Education, Inc. | 85,180 | 18,100 | |
| 20,207 | ||
Hotels, Restaurants & Leisure - 3.4% | |||
7 Days Group Holdings Ltd. ADR | 82,700 | 1,032 | |
Buffalo Wild Wings, Inc. (a) | 15,800 | 636 | |
Cafe de Coral Holdings Ltd. | 1,478,000 | 3,375 | |
Chipotle Mexican Grill, Inc. Class A (a) | 253,128 | 22,316 | |
Ctrip.com International Ltd. sponsored ADR (a) | 15,600 | 1,121 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 160,900 | 5,688 | |
Las Vegas Sands Corp. (a) | 131,000 | 1,957 | |
Little Sheep Group Ltd. | 3,309,000 | 1,832 | |
Marriott International, Inc. Class A | 219,990 | 5,995 | |
McDonald's Corp. | 4,048,027 | 252,759 | |
Panera Bread Co. Class A (a)(c) | 91,500 | 6,128 | |
Sands China Ltd. | 3,750,000 | 4,525 | |
Sodexo SA | 86,100 | 4,914 | |
Starbucks Corp. (a) | 1,671,400 | 38,542 | |
Starwood Hotels & Resorts Worldwide, Inc. | 29,200 | 1,068 | |
Tim Hortons, Inc. | 1,804,400 | 55,052 | |
WMS Industries, Inc. (a) | 253,500 | 10,140 | |
Wyndham Worldwide Corp. | 142,294 | 2,870 | |
| 419,950 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - 0.0% | |||
Gafisa SA sponsored ADR (c) | 182,500 | $ 5,906 | |
iRobot Corp. (a) | 93,300 | 1,642 | |
| 7,548 | ||
Internet & Catalog Retail - 1.9% | |||
Amazon.com, Inc. (a) | 1,262,200 | 169,791 | |
Expedia, Inc. (a) | 276,600 | 7,111 | |
Liberty Media Corp. Interactive Series A (a) | 1,004,800 | 10,892 | |
Netflix, Inc. (a) | 105,736 | 5,830 | |
Priceline.com, Inc. (a) | 200,300 | 43,766 | |
| 237,390 | ||
Leisure Equipment & Products - 0.0% | |||
Sport Supply Group, Inc. | 117,500 | 1,479 | |
Media - 3.5% | |||
CKX, Inc. (a) | 285,693 | 1,506 | |
Comcast Corp. Class A | 436,500 | 7,359 | |
DIRECTV (a) | 2,502,535 | 83,460 | |
Discovery Communications, Inc. (a) | 2,081,000 | 63,824 | |
DreamWorks Animation SKG, Inc. Class A (a) | 237,924 | 9,505 | |
Jupiter Telecommunications Co. | 2,935 | 2,906 | |
Liberty Media Corp.: | |||
Capital Series A (a) | 52,300 | 1,249 | |
Starz Series A (a) | 163,190 | 7,531 | |
Marvel Entertainment, Inc. (a) | 263,400 | 14,245 | |
Naspers Ltd. Class N | 401,500 | 16,255 | |
Net Servicos de Comunicacao SA sponsored ADR | 86,600 | 1,172 | |
Pearson PLC | 93,300 | 1,344 | |
Scripps Networks Interactive, Inc. Class A | 646,400 | 26,826 | |
The Walt Disney Co. | 5,966,900 | 192,433 | |
The Weinstein Co. III Holdings, LLC Class A-1 (a)(h) | 2,267 | 850 | |
| 430,465 | ||
Multiline Retail - 0.6% | |||
99 Cents Only Stores (a) | 218,900 | 2,861 | |
Big Lots, Inc. (a) | 84,100 | 2,437 | |
Dollar General Corp. | 114,100 | 2,559 | |
Dollar Tree, Inc. (a) | 731,500 | 35,331 | |
Dollarama, Inc. | 168,000 | 3,574 | |
Dollarama, Inc. (a)(e) | 71,000 | 1,510 | |
Golden Eagle Retail Group Ltd. (H Shares) | 843,000 | 1,710 | |
Mothercare PLC | 79,633 | 878 | |
Next PLC | 230,000 | 7,743 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Multiline Retail - continued | |||
Parkson Retail Group Ltd. | 5,148,500 | $ 9,060 | |
PCD Stores Group Ltd. | 7,260,000 | 2,787 | |
| 70,450 | ||
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 386,300 | 15,637 | |
Aeropostale, Inc. (a) | 307,100 | 10,457 | |
Bed Bath & Beyond, Inc. (a) | 186,000 | 7,185 | |
Belle International Holdings Ltd. | 4,460,000 | 5,167 | |
Best Buy Co., Inc. | 322,600 | 12,730 | |
Chico's FAS, Inc. (a) | 80,400 | 1,130 | |
Fourlis Holdings SA | 527,400 | 6,939 | |
Gymboree Corp. (a) | 119,500 | 5,197 | |
Hengdeli Holdings Ltd. | 3,096,000 | 1,169 | |
Inditex SA | 217,722 | 13,525 | |
J. Crew Group, Inc. (a) | 1,166,615 | 52,194 | |
Lumber Liquidators, Inc. (a)(c) | 218,700 | 5,861 | |
O'Reilly Automotive, Inc. (a) | 122,000 | 4,651 | |
RadioShack Corp. | 295,300 | 5,758 | |
Ross Stores, Inc. | 643,373 | 27,478 | |
Rue21, Inc. | 20,400 | 573 | |
Staples, Inc. | 512,100 | 12,593 | |
TJX Companies, Inc. | 3,625,400 | 132,508 | |
Urban Outfitters, Inc. (a) | 658,100 | 23,027 | |
Vitamin Shoppe, Inc. | 41,100 | 914 | |
| 344,693 | ||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Burberry Group PLC | 663,800 | 6,426 | |
China Dongxiang Group Co. Ltd. | 4,722,000 | 3,643 | |
China Hongxing Sports Ltd. | 6,000,000 | 811 | |
Coach, Inc. | 617,600 | 22,561 | |
Li Ning Co. Ltd. | 1,874,500 | 7,107 | |
NIKE, Inc. Class B | 2,387,300 | 157,729 | |
Phillips-Van Heusen Corp. | 26,100 | 1,062 | |
Polo Ralph Lauren Corp. Class A | 201,300 | 16,301 | |
Shenzhou International Group Holdings Ltd. | 547,000 | 712 | |
| 216,352 | ||
TOTAL CONSUMER DISCRETIONARY | 1,818,320 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 7.7% | |||
Beverages - 2.7% | |||
Anheuser-Busch InBev SA NV | 239,570 | $ 12,483 | |
C&C Group PLC | 373,392 | 1,609 | |
Coca-Cola FEMSA SAB de CV sponsored ADR | 36,500 | 2,399 | |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 31,100 | 3,144 | |
Diageo PLC sponsored ADR | 203,000 | 14,090 | |
Dr Pepper Snapple Group, Inc. | 43,700 | 1,237 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 51,300 | 2,456 | |
The Coca-Cola Co. | 4,906,300 | 279,659 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 1,896,000 | 10,487 | |
| 327,564 | ||
Food & Staples Retailing - 0.7% | |||
Costco Wholesale Corp. | 390,000 | 23,076 | |
Susser Holdings Corp. (a) | 64,402 | 553 | |
Tesco PLC | 7,647,027 | 52,895 | |
Wal-Mart Stores, Inc. | 167,400 | 8,948 | |
Wm Morrison Supermarkets PLC | 1,062,566 | 4,764 | |
| 90,236 | ||
Food Products - 1.6% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 2,145,000 | 1,759 | |
Brasil Foods SA sponsored ADR (c) | 45,900 | 2,404 | |
Cadbury PLC | 839,200 | 10,816 | |
Campbell Soup Co. | 54,400 | 1,839 | |
Danone | 131,541 | 8,066 | |
General Mills, Inc. | 636,000 | 45,035 | |
Kellogg Co. | 460,500 | 24,499 | |
Nestle SA (Reg.) | 752,945 | 36,504 | |
Ralcorp Holdings, Inc. (a) | 288,600 | 17,232 | |
Tingyi (Cayman Island) Holding Corp. | 4,294,000 | 10,625 | |
TreeHouse Foods, Inc. (a) | 525,593 | 20,425 | |
Want Want China Holdings Ltd. | 21,124,000 | 14,751 | |
| 193,955 | ||
Household Products - 2.6% | |||
Colgate-Palmolive Co. | 1,822,800 | 149,743 | |
Hypermarcas SA (a) | 221,300 | 4,996 | |
Mcbride PLC | 369,800 | 1,265 | |
Procter & Gamble Co. | 2,595,567 | 157,369 | |
| 313,373 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.1% | |||
BaWang International (Group) Holding Ltd. | 9,533,000 | $ 6,601 | |
Estee Lauder Companies, Inc. Class A | 50,800 | 2,457 | |
Hengan International Group Co. Ltd. | 948,000 | 7,019 | |
Mead Johnson Nutrition Co. Class A | 10,207 | 446 | |
NBTY, Inc. (a) | 55,100 | 2,399 | |
| 18,922 | ||
Tobacco - 0.0% | |||
Philip Morris International, Inc. | 36,500 | 1,759 | |
TOTAL CONSUMER STAPLES | 945,809 | ||
ENERGY - 7.4% | |||
Energy Equipment & Services - 1.0% | |||
National Oilwell Varco, Inc. | 24,800 | 1,093 | |
Schlumberger Ltd. | 1,805,800 | 117,540 | |
Seadrill Ltd. (c) | 97,400 | 2,487 | |
| 121,120 | ||
Oil, Gas & Consumable Fuels - 6.4% | |||
Anadarko Petroleum Corp. | 802,900 | 50,117 | |
Apache Corp. | 112,600 | 11,617 | |
Arena Resources, Inc. (a) | 82,300 | 3,549 | |
BG Group PLC | 313,664 | 5,688 | |
Birchcliff Energy Ltd. (a) | 1,487,700 | 13,381 | |
BP PLC sponsored ADR | 19,300 | 1,119 | |
Canadian Natural Resources Ltd. | 639,100 | 46,230 | |
Cenovus Energy, Inc. | 1,192,300 | 30,073 | |
Chesapeake Energy Corp. | 62,499 | 1,617 | |
Clean Energy Fuels Corp. (a)(c) | 268,200 | 4,133 | |
CNPC (Hong Kong) Ltd. | 4,430,000 | 5,842 | |
Concho Resources, Inc. (a) | 413,500 | 18,566 | |
Crescent Point Energy Corp. (c) | 377,500 | 14,189 | |
EnCana Corp. | 1,192,300 | 38,709 | |
EOG Resources, Inc. | 567,800 | 55,247 | |
EXCO Resources, Inc. | 61,700 | 1,310 | |
Exxon Mobil Corp. | 737,702 | 50,304 | |
Govi High Power Exploration, Inc. (a)(h) | 2,750,000 | 5,500 | |
GoviEx IP Holdings, Inc. (a)(h) | 2,750,000 | 0* | |
InterOil Corp. (a) | 41,400 | 3,180 | |
Ivanhoe Energy, Inc. (a)(c) | 2,114,400 | 5,957 | |
Newfield Exploration Co. (a) | 25,400 | 1,225 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Niko Resources Ltd. | 27,100 | $ 2,538 | |
Noble Energy, Inc. | 2,446,700 | 174,254 | |
Northern Oil & Gas, Inc. (a)(c) | 906,475 | 10,733 | |
Occidental Petroleum Corp. | 1,250,600 | 101,736 | |
Pacific Rubiales Energy Corp. (a)(c) | 83,700 | 1,231 | |
PetroBakken Energy Ltd. Class A | 337,489 | 10,385 | |
Petrobank Energy & Resources Ltd. (a) | 159,900 | 7,794 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 103,700 | 4,944 | |
Petroplus Holdings AG | 544,927 | 10,015 | |
Range Resources Corp. | 678,200 | 33,808 | |
Reliance Industries Ltd. | 327,616 | 7,698 | |
Sable Mining Africa Ltd. (a)(d) | 30,303,030 | 5,142 | |
Southwestern Energy Co. (a) | 794,900 | 38,314 | |
TransAtlantic Petroleum Ltd. (a)(e) | 1,234,400 | 4,230 | |
Ultra Petroleum Corp. (a) | 22,000 | 1,097 | |
Whiting Petroleum Corp. (a) | 36,400 | 2,601 | |
| 784,073 | ||
TOTAL ENERGY | 905,193 | ||
FINANCIALS - 12.0% | |||
Capital Markets - 1.3% | |||
BlackRock, Inc. Class A | 20,300 | 4,714 | |
Charles Schwab Corp. | 1,802,100 | 33,916 | |
Franklin Resources, Inc. | 260,400 | 27,433 | |
Goldman Sachs Group, Inc. | 336,100 | 56,747 | |
T. Rowe Price Group, Inc. | 705,200 | 37,552 | |
| 160,362 | ||
Commercial Banks - 4.2% | |||
Banco Bradesco SA (PN) sponsored ADR | 62,600 | 1,369 | |
Banco do Brasil SA | 703,900 | 11,833 | |
BOC Hong Kong Holdings Ltd. | 2,423,500 | 5,445 | |
Center Financial Corp. | 50,000 | 230 | |
China Citic Bank Corp. Ltd. Class H | 4,460,000 | 3,775 | |
China Merchants Bank Co. Ltd. (H Shares) | 461,000 | 1,199 | |
HDFC Bank Ltd. sponsored ADR (c) | 47,700 | 6,205 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 14,176,000 | 11,674 | |
Itau Unibanco Banco Multiplo SA ADR | 736,370 | 16,819 | |
M&T Bank Corp. (c) | 18,800 | 1,258 | |
PT Bank Central Asia Tbk | 2,333,500 | 1,201 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Standard Chartered PLC (United Kingdom) | 2,626,126 | $ 66,846 | |
State Bank of India | 115,430 | 5,643 | |
Union Bank of India | 11,346 | 65 | |
Wells Fargo & Co. | 14,233,785 | 384,170 | |
| 517,732 | ||
Consumer Finance - 0.3% | |||
American Express Co. | 876,400 | 35,512 | |
Diversified Financial Services - 1.9% | |||
BM&F BOVESPA SA | 323,200 | 2,286 | |
Citigroup, Inc. | 9,470,900 | 31,349 | |
CME Group, Inc. | 18,400 | 6,181 | |
Gimv NV | 18,400 | 962 | |
Hong Kong Exchanges and Clearing Ltd. | 1,040,900 | 18,519 | |
IntercontinentalExchange, Inc. (a) | 100,000 | 11,230 | |
JPMorgan Chase & Co. | 3,878,719 | 161,626 | |
MSCI, Inc. Class A (a) | 74,300 | 2,363 | |
| 234,516 | ||
Insurance - 4.0% | |||
ACE Ltd. | 310,900 | 15,669 | |
Admiral Group PLC | 837,500 | 16,093 | |
Berkshire Hathaway, Inc. Class A (a) | 3,493 | 346,506 | |
China Life Insurance Co. Ltd. ADR (c) | 14,300 | 1,049 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 48,300 | 18,848 | |
The Chubb Corp. | 1,165,600 | 57,324 | |
The Travelers Companies, Inc. | 668,900 | 33,351 | |
| 488,840 | ||
Real Estate Investment Trusts - 0.1% | |||
Corporate Office Properties Trust (SBI) | 30,700 | 1,125 | |
Simon Property Group, Inc. | 45,872 | 3,661 | |
Starwood Property Trust, Inc. | 145,300 | 2,745 | |
| 7,531 | ||
Real Estate Management & Development - 0.2% | |||
China Overseas Land & Investment Ltd. | 1,560,000 | 3,269 | |
Swire Pacific Ltd. (A Shares) | 282,000 | 3,410 | |
Wharf Holdings Ltd. | 2,381,000 | 13,664 | |
| 20,343 | ||
TOTAL FINANCIALS | 1,464,836 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 12.9% | |||
Biotechnology - 3.5% | |||
Actelion Ltd. (Reg.) (a) | 296,029 | $ 15,781 | |
Alexion Pharmaceuticals, Inc. (a) | 399,700 | 19,513 | |
Allos Therapeutics, Inc. (a)(c) | 372,600 | 2,448 | |
Amgen, Inc. (a) | 261,300 | 14,782 | |
Celgene Corp. (a) | 847,400 | 47,183 | |
Gilead Sciences, Inc. (a) | 4,479,200 | 193,860 | |
Human Genome Sciences, Inc. (a)(c) | 816,200 | 24,976 | |
ImmunoGen, Inc. (a) | 274,419 | 2,157 | |
MannKind Corp. (a)(c) | 828,333 | 7,256 | |
MannKind Corp. warrants 8/3/10 (a)(h) | 29,881 | 35 | |
Medivation, Inc. (a)(c) | 853,300 | 32,127 | |
Micromet, Inc. (a) | 467,100 | 3,111 | |
OREXIGEN Therapeutics, Inc. (a) | 121,500 | 904 | |
Regeneron Pharmaceuticals, Inc. (a) | 175,300 | 4,239 | |
RXi Pharmaceuticals Corp. (a)(c) | 571,429 | 2,617 | |
RXi Pharmaceuticals Corp. warrants 2/4/10 (a) | 228,571 | 775 | |
Seattle Genetics, Inc. (a) | 165,800 | 1,685 | |
Targacept, Inc. (a) | 1,105,800 | 23,133 | |
United Therapeutics Corp. (a) | 119,500 | 6,292 | |
Vertex Pharmaceuticals, Inc. (a) | 535,700 | 22,955 | |
Zymogenetics, Inc. (a)(c) | 193,400 | 1,236 | |
| 427,065 | ||
Health Care Equipment & Supplies - 2.0% | |||
Alcon, Inc. | 215,500 | 35,417 | |
Baxter International, Inc. | 288,700 | 16,941 | |
Becton, Dickinson & Co. | 271,500 | 21,410 | |
C. R. Bard, Inc. | 135,499 | 10,555 | |
Covidien PLC | 1,422,666 | 68,131 | |
DENTSPLY International, Inc. | 719,717 | 25,312 | |
Edwards Lifesciences Corp. (a) | 356,400 | 30,953 | |
ev3, Inc. (a) | 393,800 | 5,253 | |
ICU Medical, Inc. (a) | 27,900 | 1,017 | |
Inverness Medical Innovations, Inc. (a) | 166,300 | 6,903 | |
Mindray Medical International Ltd. sponsored ADR (c) | 34,100 | 1,157 | |
NuVasive, Inc. (a) | 199,400 | 6,377 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 2,284,000 | 7,612 | |
Thoratec Corp. (a) | 102,800 | 2,767 | |
| 239,805 | ||
Health Care Providers & Services - 1.6% | |||
Emergency Medical Services Corp. Class A (a) | 157,100 | 8,507 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Express Scripts, Inc. (a) | 589,100 | $ 50,928 | |
Henry Schein, Inc. (a) | 51,800 | 2,725 | |
HMS Holdings Corp. (a) | 80,400 | 3,915 | |
Medco Health Solutions, Inc. (a) | 2,070,500 | 132,326 | |
Sinopharm Group Co. Ltd. Class H | 438,000 | 1,539 | |
| 199,940 | ||
Health Care Technology - 0.4% | |||
Cerner Corp. (a) | 368,700 | 30,396 | |
Quality Systems, Inc. | 337,900 | 21,217 | |
| 51,613 | ||
Life Sciences Tools & Services - 1.2% | |||
Fluidigm Corp. warrants 9/10/10 (a) | 1 | 0 | |
Illumina, Inc. (a) | 72,300 | 2,216 | |
Life Technologies Corp. (a) | 516,400 | 26,972 | |
Mettler-Toledo International, Inc. (a) | 552,000 | 57,954 | |
QIAGEN NV (a) | 517,600 | 11,553 | |
Techne Corp. | 47,400 | 3,250 | |
Thermo Fisher Scientific, Inc. (a) | 64,600 | 3,081 | |
Waters Corp. (a) | 651,000 | 40,336 | |
| 145,362 | ||
Pharmaceuticals - 4.2% | |||
Abbott Laboratories | 3,134,500 | 169,232 | |
Allergan, Inc. | 173,400 | 10,926 | |
AstraZeneca PLC (United Kingdom) | 1,228,655 | 57,777 | |
Bristol-Myers Squibb Co. | 620,432 | 15,666 | |
Dr. Reddy's Laboratories Ltd. sponsored ADR (c) | 146,900 | 3,556 | |
Forest Laboratories, Inc. (a) | 964,400 | 30,967 | |
Johnson & Johnson | 1,603,700 | 103,294 | |
MAP Pharmaceuticals, Inc. (a) | 599,800 | 5,716 | |
Merck & Co., Inc. | 102,300 | 3,738 | |
Novo Nordisk AS Series B | 450,333 | 28,763 | |
Optimer Pharmaceuticals, Inc. (a) | 116,900 | 1,319 | |
Salix Pharmaceuticals Ltd. (a) | 238,100 | 6,048 | |
Shionogi & Co. Ltd. | 108,000 | 2,343 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,002,900 | 56,343 | |
Valeant Pharmaceuticals International (a)(c) | 530,700 | 16,871 | |
| 512,559 | ||
TOTAL HEALTH CARE | 1,576,344 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 2.9% | |||
Aerospace & Defense - 0.2% | |||
AeroVironment, Inc. (a) | 39,500 | $ 1,149 | |
DigitalGlobe, Inc. | 53,000 | 1,283 | |
GeoEye, Inc. (a) | 78,200 | 2,180 | |
Precision Castparts Corp. | 34,500 | 3,807 | |
Raytheon Co. | 21,100 | 1,087 | |
United Technologies Corp. | 182,100 | 12,640 | |
| 22,146 | ||
Air Freight & Logistics - 0.7% | |||
C.H. Robinson Worldwide, Inc. | 1,374,272 | 80,711 | |
Airlines - 0.0% | |||
Ryanair Holdings PLC sponsored ADR (a) | 42,500 | 1,140 | |
Southwest Airlines Co. | 345,200 | 3,946 | |
| 5,086 | ||
Building Products - 0.1% | |||
Armstrong World Industries, Inc. (a) | 175,800 | 6,844 | |
Commercial Services & Supplies - 0.2% | |||
APAC Customer Services, Inc. (a)(c)(d) | 2,732,044 | 16,283 | |
Stericycle, Inc. (a) | 191,900 | 10,587 | |
Waste Connections, Inc. (a) | 35,400 | 1,180 | |
| 28,050 | ||
Construction & Engineering - 0.2% | |||
Jacobs Engineering Group, Inc. (a) | 503,200 | 18,925 | |
Electrical Equipment - 0.3% | |||
A123 Systems, Inc. | 43,400 | 974 | |
American Superconductor Corp. (a)(c) | 349,100 | 14,278 | |
China High Speed Transmission Equipment Group Co. Ltd. | 2,709,000 | 6,577 | |
Cooper Industries PLC Class A | 332,645 | 14,184 | |
Nexxus Lighting, Inc. (a) | 109,400 | 372 | |
| 36,385 | ||
Industrial Conglomerates - 0.0% | |||
Beijing Enterprises Holdings Ltd. | 635,500 | 4,603 | |
Carlisle Companies, Inc. | 32,100 | 1,100 | |
| 5,703 | ||
Machinery - 0.8% | |||
China Automation Group Ltd. | 5,128,000 | 4,183 | |
Danaher Corp. | 740,177 | 55,661 | |
Duoyuan Global Water, Inc. ADR (c) | 90,300 | 3,232 | |
Oshkosh Co. | 61,700 | 2,285 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
PACCAR, Inc. | 502,723 | $ 18,234 | |
SmartHeat, Inc. (a)(c) | 630,800 | 9,159 | |
| 92,754 | ||
Marine - 0.0% | |||
Kuehne & Nagel International AG | 12,190 | 1,183 | |
Professional Services - 0.1% | |||
Robert Half International, Inc. | 243,700 | 6,514 | |
SEEK Ltd. | 1,000,000 | 6,198 | |
Verisk Analytics, Inc. | 200,800 | 6,080 | |
| 18,792 | ||
Road & Rail - 0.3% | |||
Canadian National Railway Co. | 514,400 | 28,074 | |
CSX Corp. | 73,600 | 3,569 | |
Dollar Thrifty Automotive Group, Inc. (a) | 64,400 | 1,649 | |
Knight Transportation, Inc. | 38,000 | 733 | |
Norfolk Southern Corp. | 23,300 | 1,221 | |
| 35,246 | ||
Trading Companies & Distributors - 0.0% | |||
Fastenal Co. (c) | 56,400 | 2,348 | |
W.W. Grainger, Inc. | 22,000 | 2,130 | |
| 4,478 | ||
TOTAL INDUSTRIALS | 356,303 | ||
INFORMATION TECHNOLOGY - 30.2% | |||
Communications Equipment - 2.1% | |||
Aruba Networks, Inc. (a) | 3,500 | 37 | |
BYD Electronic International Co. Ltd. (a) | 12,928,500 | 10,530 | |
Cisco Systems, Inc. (a) | 3,709,800 | 88,813 | |
F5 Networks, Inc. (a) | 343,000 | 18,172 | |
Motorola, Inc. | 501,500 | 3,892 | |
QUALCOMM, Inc. | 3,075,000 | 142,250 | |
ZTE Corp. (H Shares) | 34,400 | 211 | |
| 263,905 | ||
Computers & Peripherals - 6.9% | |||
Apple, Inc. (a) | 3,004,453 | 633,519 | |
Compellent Technologies, Inc. (a) | 171,400 | 3,887 | |
Dell, Inc. (a) | 461,000 | 6,620 | |
EMC Corp. (a) | 69,900 | 1,221 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Hewlett-Packard Co. | 3,184,100 | $ 164,013 | |
NetApp, Inc. (a) | 836,300 | 28,760 | |
Western Digital Corp. (a) | 176,100 | 7,775 | |
| 845,795 | ||
Electronic Equipment & Components - 1.1% | |||
Agilent Technologies, Inc. | 259,100 | 8,050 | |
Amphenol Corp. Class A (a) | 1,161,840 | 53,654 | |
BYD Co. Ltd. (H Shares) (a)(c) | 4,365,190 | 38,263 | |
Corning, Inc. | 139,000 | 2,684 | |
FLIR Systems, Inc. (a) | 911,700 | 29,831 | |
Itron, Inc. (a) | 18,500 | 1,250 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 89,500 | 2,356 | |
Samsung SDI Co. Ltd. | 9,106 | 1,160 | |
Tech Data Corp. (a) | 26,500 | 1,236 | |
Wasion Group Holdings Ltd. | 4,128,000 | 4,290 | |
| 142,774 | ||
Internet Software & Services - 7.5% | |||
AOL, Inc. (a) | 164,999 | 3,841 | |
Baidu.com, Inc. sponsored ADR (a) | 67,800 | 27,881 | |
Constant Contact, Inc. (a) | 199,000 | 3,184 | |
Google, Inc. Class A (a) | 1,119,871 | 694,297 | |
LogMeIn, Inc. | 106,500 | 2,125 | |
NetEase.com, Inc. sponsored ADR (a)(c) | 911,000 | 34,263 | |
NHN Corp. (a) | 6,949 | 1,144 | |
Open Text Corp. (a) | 49,400 | 2,008 | |
Rackspace Hosting, Inc. (a) | 117,800 | 2,456 | |
SkillSoft PLC sponsored ADR (a) | 111,800 | 1,172 | |
Sohu.com, Inc. (a)(c) | 282,100 | 16,159 | |
Tencent Holdings Ltd. | 4,614,700 | 99,802 | |
VistaPrint Ltd. (a) | 317,200 | 17,973 | |
WebMD Health Corp. (a) | 230,036 | 8,854 | |
| 915,159 | ||
IT Services - 4.2% | |||
Accenture PLC Class A | 1,747,400 | 72,517 | |
Cognizant Technology Solutions Corp. Class A (a) | 430,400 | 19,497 | |
Echo Global Logistics, Inc. | 28,600 | 363 | |
Fidelity National Information Services, Inc. | 1,120,300 | 26,260 | |
Fiserv, Inc. (a) | 46,700 | 2,264 | |
Global Payments, Inc. | 14,300 | 770 | |
Hewitt Associates, Inc. Class A (a) | 409,500 | 17,305 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Infosys Technologies Ltd. sponsored ADR | 16,300 | $ 901 | |
MasterCard, Inc. Class A | 179,469 | 45,940 | |
Redecard SA | 413,200 | 6,782 | |
The Western Union Co. | 46,600 | 878 | |
VeriFone Holdings, Inc. (a) | 4,800 | 79 | |
Visa, Inc. Class A | 3,653,800 | 319,561 | |
Wipro Ltd. sponsored ADR (c) | 58,100 | 1,294 | |
| 514,411 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Altera Corp. | 1,069,700 | 24,207 | |
Analog Devices, Inc. | 38,200 | 1,206 | |
ARM Holdings PLC sponsored ADR | 305,800 | 2,618 | |
ASML Holding NV (NY Shares) | 367,600 | 12,531 | |
Atheros Communications, Inc. (a) | 28,983 | 992 | |
Avago Technologies Ltd. | 270,800 | 4,953 | |
Broadcom Corp. Class A (a) | 892,000 | 28,053 | |
Cree, Inc. (a) | 729,000 | 41,094 | |
Cymer, Inc. (a) | 131,000 | 5,028 | |
Intel Corp. | 441,000 | 8,996 | |
KLA-Tencor Corp. | 241,100 | 8,718 | |
Marvell Technology Group Ltd. (a) | 3,684,700 | 76,458 | |
MediaTek, Inc. | 65,000 | 1,134 | |
NVIDIA Corp. (a) | 2,965,600 | 55,397 | |
ON Semiconductor Corp. (a) | 488,000 | 4,299 | |
Samsung Electronics Co. Ltd. | 154,257 | 105,698 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 2,921,346 | 33,420 | |
| 414,802 | ||
Software - 5.0% | |||
Activision Blizzard, Inc. (a) | 3,834,600 | 42,602 | |
Adobe Systems, Inc. (a) | 971,806 | 35,743 | |
ANSYS, Inc. (a) | 173,700 | 7,549 | |
ArcSight, Inc. (a) | 314,239 | 8,038 | |
Ariba, Inc. (a) | 109,800 | 1,375 | |
AsiaInfo Holdings, Inc. (a) | 576,000 | 17,551 | |
BMC Software, Inc. (a) | 1,083,400 | 43,444 | |
Check Point Software Technologies Ltd. (a) | 1,045,300 | 35,415 | |
Citrix Systems, Inc. (a) | 626,800 | 26,081 | |
CommVault Systems, Inc. (a) | 98,800 | 2,341 | |
Fortinet, Inc. | 204,700 | 3,597 | |
Informatica Corp. (a) | 574,409 | 14,854 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Intuit, Inc. (a) | 38,500 | $ 1,182 | |
Longtop Financial Technologies Ltd. ADR (a) | 204,600 | 7,574 | |
McAfee, Inc. (a) | 1,983,400 | 80,467 | |
Oracle Corp. | 5,625,150 | 138,041 | |
Pegasystems, Inc. | 197,100 | 6,701 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 99,100 | 3,909 | |
Red Hat, Inc. (a) | 490,800 | 15,166 | |
Rovi Corp. (a) | 194,000 | 6,183 | |
Salesforce.com, Inc. (a) | 523,700 | 38,633 | |
Shanda Interactive Entertainment Ltd. sponsored ADR (a) | 381,600 | 20,076 | |
SolarWinds, Inc. (c) | 328,800 | 7,566 | |
Solera Holdings, Inc. | 32,900 | 1,185 | |
Sourcefire, Inc. (a) | 967,340 | 25,876 | |
SuccessFactors, Inc. (a) | 163,900 | 2,717 | |
Sybase, Inc. (a) | 55,600 | 2,413 | |
TIBCO Software, Inc. (a) | 592,300 | 5,704 | |
VanceInfo Technologies, Inc. ADR (a) | 237,700 | 4,566 | |
VMware, Inc. Class A (a) | 54,500 | 2,310 | |
| 608,859 | ||
TOTAL INFORMATION TECHNOLOGY | 3,705,705 | ||
MATERIALS - 5.3% | |||
Chemicals - 0.5% | |||
Ecolab, Inc. | 835,300 | 37,238 | |
Huabao International Holdings Ltd. | 15,641,000 | 16,818 | |
Lubrizol Corp. | 61,100 | 4,457 | |
Valspar Corp. | 30,300 | 822 | |
| 59,335 | ||
Containers & Packaging - 0.1% | |||
Owens-Illinois, Inc. (a) | 28,300 | 930 | |
Rock-Tenn Co. Class A | 112,000 | 5,646 | |
Temple-Inland, Inc. | 313,100 | 6,610 | |
| 13,186 | ||
Metals & Mining - 4.7% | |||
Alamos Gold, Inc. (a) | 104,100 | 1,244 | |
AngloGold Ashanti Ltd. sponsored ADR | 568,800 | 22,854 | |
B2Gold Corp. (a) | 1,404,000 | 1,617 | |
B2Gold Corp. (a)(e) | 500,000 | 576 | |
BHP Billiton Ltd. sponsored ADR | 158,900 | 12,169 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Eldorado Gold Corp. (a) | 4,402,803 | $ 62,523 | |
First Quantum Minerals Ltd. | 51,900 | 3,965 | |
Franco-Nevada Corp. | 1,402,200 | 37,502 | |
Franco-Nevada Corp. (e) | 126,300 | 3,378 | |
Franco-Nevada Corp. warrants 6/16/17 (a)(e) | 63,150 | 397 | |
Goldcorp, Inc. | 2,693,301 | 105,999 | |
Ivanhoe Mines Ltd. (a) | 4,017,100 | 59,302 | |
Kinross Gold Corp. | 4,055,076 | 74,760 | |
Newcrest Mining Ltd. | 2,507,164 | 79,565 | |
Randgold Resources Ltd. sponsored ADR | 880,722 | 69,683 | |
Red Back Mining, Inc. (a) | 1,854,804 | 26,481 | |
Red Back Mining, Inc. (a)(e) | 98,900 | 1,412 | |
Vale SA sponsored ADR | 240,900 | 6,993 | |
Ventana Gold Corp. (a) | 164,400 | 1,261 | |
| 571,681 | ||
TOTAL MATERIALS | 644,202 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
AboveNet, Inc. (a) | 89,000 | 5,789 | |
Clearwire Corp.: | |||
rights 6/21/10 (a) | 357,050 | 143 | |
Class A (a) | 357,050 | 2,414 | |
Iliad Group SA | 10,223 | 1,222 | |
Nippon Telegraph & Telephone Corp. | 138,400 | 5,470 | |
Telmex Internacional SAB de CV Series L ADR (c) | 155,400 | 2,758 | |
| 17,796 | ||
Wireless Telecommunication Services - 0.4% | |||
American Tower Corp. Class A (a) | 287,900 | 12,440 | |
MTN Group Ltd. | 293,200 | 4,665 | |
NTT DoCoMo, Inc. | 2,849 | 3,978 | |
Sprint Nextel Corp. (a) | 647,700 | 2,371 | |
Vivo Participacoes SA sponsored ADR | 614,700 | 19,056 | |
| 42,510 | ||
TOTAL TELECOMMUNICATION SERVICES | 60,306 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
YTL Corp. Bhd | 3,794,910 | $ 8,091 | |
Water Utilities - 0.0% | |||
YTL Power International Bhd | 3,555 | 2 | |
TOTAL UTILITIES | 8,093 | ||
TOTAL COMMON STOCKS (Cost $9,315,008) | 11,485,111 | ||
Preferred Stocks - 0.2% | |||
|
|
|
|
Convertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Ning, Inc. Series D 8.00% (a)(h) | 541,260 | 3,191 | |
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Light Sciences Oncology, Inc. (a)(h) | 463,700 | 1,855 | |
Light Sciences Oncology, Inc. Series B (a)(h) | 1,792,115 | 7,168 | |
| 9,023 | ||
Health Care Equipment & Supplies - 0.0% | |||
superDimension Ltd. (a)(h) | 91,600 | 1,053 | |
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 143,925 | 1,007 | |
TOTAL HEALTH CARE | 11,083 | ||
INFORMATION TECHNOLOGY - 0.1% | |||
Internet Software & Services - 0.0% | |||
Digg, Inc. Series C, 8.00% (a)(h) | 64,821 | 486 | |
Software - 0.1% | |||
Trion World Network, Inc. 8.00% (h) | 602,295 | 3,307 | |
TOTAL INFORMATION TECHNOLOGY | 3,793 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 18,067 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.0% | |||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Slide, Inc. Series D (a)(h) | 809,262 | $ 1,003 | |
TOTAL PREFERRED STOCKS (Cost $34,367) | 19,070 |
Nonconvertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co.: | ||||
6.375% 2/1/29 | $ 700 | 515 | ||
6.625% 10/1/28 | 1,490 | 1,118 | ||
7.45% 7/16/31 | 2,235 | 1,975 | ||
| 3,608 | |||
FINANCIALS - 0.1% | ||||
Diversified Financial Services - 0.1% | ||||
Ford Holdings LLC 9.3% 3/1/30 | 6,415 | 5,902 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $4,295) | 9,510 | |||
Floating Rate Loans - 0.0% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co. term loan 3.2871% 12/15/13 (f) (Cost $5,910) | 6,666 | 6,183 |
Money Market Funds - 7.4% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.16% (g) | 771,494,181 | $ 771,494 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g) | 139,250,900 | 139,251 | |
TOTAL MONEY MARKET FUNDS (Cost $910,745) | 910,745 | ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $10,270,325) | 12,430,619 | ||
NET OTHER ASSETS - (1.5)% | (183,763) | ||
NET ASSETS - 100% | $ 12,246,856 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(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 $13,859,000 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) 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. |
(h) 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 $24,448,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition |
Digg, Inc. Series C, 8.00% | 9/23/08 | $ 683 |
Govi High Power Exploration, Inc. | 9/28/07 | $ 5,500 |
GoviEx IP Holdings, Inc. | 7/28/08 | $ 0* |
Light Sciences Oncology, Inc. | 7/9/08 | $ 3,881 |
Light Sciences Oncology, Inc. Series B | 4/4/07 | $ 15,000 |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 1 |
Ning, Inc. Series D 8.00% | 3/19/08 | $ 3,870 |
Slide, Inc. Series D | 1/14/08 | $ 3,693 |
superDimension Ltd. | 2/27/08 - 5/22/08 | $ 1,963 |
The Weinstein Co. III Holdings, LLC Class A-1 | 10/19/05 | $ 2,267 |
Trion World Network, Inc. 8.00% | 8/22/08 | $ 3,307 |
* Amount represents less than $1,000. |
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 | $ 3,733 |
Fidelity Securities Lending Cash Central Fund | 1,772 |
Total | $ 5,505 |
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: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
APAC Customer Services, Inc. | $ - | $ 14,329 | $ - | $ - | $ 16,283 |
Sable Mining Africa Ltd. | - | 4,932 | - | - | 5,142 |
Total | $ - | $ 19,261 | $ - | $ - | $ 21,425 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,818,320 | $ 1,725,900 | $ 91,570 | $ 850 |
Consumer Staples | 945,809 | 894,567 | 51,242 | - |
Energy | 905,193 | 893,851 | 5,842 | 5,500 |
Financials | 1,468,027 | 1,403,881 | 60,955 | 3,191 |
Health Care | 1,587,427 | 1,506,263 | 70,081 | 11,083 |
Industrials | 356,303 | 340,940 | 15,363 | - |
Information Technology | 3,709,498 | 3,552,609 | 153,096 | 3,793 |
Materials | 644,202 | 627,384 | 16,818 | - |
Telecommunication Services | 61,309 | 50,858 | 9,448 | 1,003 |
Utilities | 8,093 | 8,093 | - | - |
Corporate Bonds | 9,510 | - | 9,510 | - |
Floating Rate Loans | 6,183 | - | 6,183 | - |
Money Market Funds | 910,745 | 910,745 | - | - |
Total Investments in Securities: | $ 12,430,619 | $ 11,915,091 | $ 490,108 | $ 25,420 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: |
|
Beginning Balance | $ 67,974 |
Total Realized Gain (Loss) | (16,265) |
Total Unrealized Gain (Loss) | (9,129) |
Cost of Purchases | 45 |
Proceeds of Sales | (11,735) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (5,470) |
Ending Balance | $ 25,420 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009 | $ (5,859) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 78.4% |
Canada | 5.6% |
China | 2.4% |
United Kingdom | 2.1% |
Ireland | 1.3% |
Bermuda | 1.0% |
Netherlands Antilles | 1.0% |
Others (individually less than 1%) | 8.2% |
| 100.0% |
Income Tax Information |
At December 31, 2009, the fund had a capital loss carryforward of approximately $1,550,171,000 of which $726,035,000 and $824,136,000 will expire on December 31, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending December 31, 2010 approximately $84,647,000 of losses recognized during the period November 1, 2009 to December 31, 2009. |
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) | December 31, 2009 | |
Assets | ||
Investment in securities, at value (including securities loaned of $134,730) - See accompanying schedule: Unaffiliated issuers (cost $9,340,319) | $ 11,498,449 |
|
Fidelity Central Funds (cost $910,745) | 910,745 |
|
Other affiliated issuers (cost $19,261) | 21,425 |
|
Total Investments (cost $10,270,325) |
| $ 12,430,619 |
Cash | 305 | |
Receivable for investments sold | 2,585 | |
Receivable for fund shares sold | 25,058 | |
Dividends receivable | 7,162 | |
Interest receivable | 333 | |
Distributions receivable from Fidelity Central Funds | 257 | |
Prepaid expenses | 48 | |
Other receivables | 303 | |
Total assets | 12,466,670 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 45,577 | |
Payable for fund shares redeemed | 22,422 | |
Accrued management fee | 6,427 | |
Distribution fees payable | 3,311 | |
Other affiliated payables | 2,402 | |
Other payables and accrued expenses | 424 | |
Collateral on securities loaned, at value | 139,251 | |
Total liabilities | 219,814 | |
|
|
|
Net Assets | $ 12,246,856 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,832,430 | |
Accumulated net investment loss | (45) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,745,839) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,160,310 | |
Net Assets | $ 12,246,856 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2009 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.24 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.24) | $ 18.29 | |
Class T: | $ 17.08 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.08) | $ 17.70 | |
Class B: | $ 16.49 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Institutional Class: | $ 17.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2009 | |
Investment Income |
|
|
Dividends |
| $ 108,289 |
Interest |
| 656 |
Income from Fidelity Central Funds |
| 5,505 |
Total income |
| 114,450 |
Expenses | ||
Management fee | $ 54,209 | |
Performance adjustment | 8,928 | |
Transfer agent fees | 25,498 | |
Distribution fees | 33,054 | |
Accounting and security lending fees | 1,440 | |
Custodian fees and expenses | 608 | |
Independent trustees' compensation | 65 | |
Registration fees | 771 | |
Audit | 93 | |
Legal | 49 | |
Miscellaneous | 183 | |
Total expenses before reductions | 124,898 | |
Expense reductions | (865) | 124,033 |
Net investment income (loss) | (9,583) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (358,609) | |
Foreign currency transactions | (184) | |
Capital gain distributions from Fidelity Central Funds | 9 | |
Total net realized gain (loss) |
| (358,784) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,979,201 | |
Assets and liabilities in foreign currencies | 5 | |
Total change in net unrealized appreciation (depreciation) |
| 2,979,206 |
Net gain (loss) | 2,620,422 | |
Net increase (decrease) in net assets resulting from operations | $ 2,610,839 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (9,583) | $ 11,706 |
Net realized gain (loss) | (358,784) | (1,357,004) |
Change in net unrealized appreciation (depreciation) | 2,979,206 | (3,202,536) |
Net increase (decrease) in net assets resulting | 2,610,839 | (4,547,834) |
Distributions to shareholders from net investment income | (3,220) | (4,517) |
Distributions to shareholders from net realized gain | (12,352) | (56,382) |
Total distributions | (15,572) | (60,899) |
Share transactions - net increase (decrease) | 1,323,677 | 3,443,380 |
Total increase (decrease) in net assets | 3,918,944 | (1,165,353) |
|
|
|
Net Assets | ||
Beginning of period | 8,327,912 | 9,493,265 |
End of period (including accumulated net investment loss of $45 and undistributed net investment income of $2,772, respectively) | $ 12,246,856 | $ 8,327,912 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.36 | $ 21.65 | $ 18.37 | $ 16.65 | $ 13.99 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | - G | .05 | .08 | .06 | .02 |
Net realized and unrealized gain (loss) | 3.89 | (8.22) | 3.65 | 1.78 | 2.64 |
Total from investment operations | 3.89 | (8.17) | 3.73 | 1.84 | 2.66 |
Distributions from net investment income | - | - G | (.06) | (.03) | - |
Distributions from net realized gain | (.01) | (.12) | (.39) | (.08) | - |
Total distributions | (.01) | (.12) | (.45) | (.12) H | - |
Net asset value, end of period | $ 17.24 | $ 13.36 | $ 21.65 | $ 18.37 | $ 16.65 |
Total Return A, B | 29.12% | (37.92)% | 20.26% | 11.06% | 19.01% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 1.19% | 1.10% | 1.09% | 1.12% | 1.17% |
Expenses net of fee waivers, if any | 1.19% | 1.10% | 1.09% | 1.12% | 1.17% |
Expenses net of all reductions | 1.18% | 1.10% | 1.08% | 1.11% | 1.13% |
Net investment income (loss) | -% I | .26% | .42% | .37% | .13% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,265 | $ 2,614 | $ 2,630 | $ 1,823 | $ 1,019 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
H Total distributions of $.12 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.083 per share.
I Amount represents less than .01%
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.26 | $ 21.56 | $ 18.29 | $ 16.57 | $ 13.96 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.04) | - G | .04 | .03 | (.01) |
Net realized and unrealized gain (loss) | 3.86 | (8.18) | 3.62 | 1.77 | 2.62 |
Total from investment operations | 3.82 | (8.18) | 3.66 | 1.80 | 2.61 |
Distributions from net realized gain | - | (.12) | (.39) | (.08) | - |
Net asset value, end of period | $ 17.08 | $ 13.26 | $ 21.56 | $ 18.29 | $ 16.57 |
Total Return A, B | 28.81% | (38.13)% | 20.00% | 10.90% | 18.70% |
Ratios to Average Net D, F |
|
|
|
|
|
Expenses before reductions | 1.45% | 1.34% | 1.31% | 1.32% | 1.38% |
Expenses net of fee waivers, if any | 1.45% | 1.34% | 1.31% | 1.32% | 1.38% |
Expenses net of all reductions | 1.44% | 1.34% | 1.31% | 1.31% | 1.34% |
Net investment income (loss) | (.25)% | .02% | .19% | .17% | (.08)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,557 | $ 1,254 | $ 2,185 | $ 2,165 | $ 1,393 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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 - Class B
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.88 | $ 21.04 | $ 17.97 | $ 16.35 | $ 13.85 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.11) | (.10) | (.08) | (.07) | (.10) |
Net realized and unrealized gain (loss) | 3.72 | (7.94) | 3.54 | 1.74 | 2.60 |
Total from investment operations | 3.61 | (8.04) | 3.46 | 1.67 | 2.50 |
Distributions from net realized gain | - | (.12) | (.39) | (.05) | - |
Net asset value, end of period | $ 16.49 | $ 12.88 | $ 21.04 | $ 17.97 | $ 16.35 |
Total Return A, B | 28.03% | (38.41)% | 19.24% | 10.23% | 18.05% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 2.01% | 1.91% | 1.89% | 1.93% | 1.98% |
Expenses net of fee waivers, if any | 2.00% | 1.91% | 1.89% | 1.93% | 1.98% |
Expenses net of all reductions | 1.99% | 1.91% | 1.89% | 1.92% | 1.94% |
Net investment income (loss) | (.81)% | (.55)% | (.39)% | (.44)% | (.68)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 401 | $ 313 | $ 489 | $ 452 | $ 339 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.92 | $ 21.10 | $ 18.00 | $ 16.37 | $ 13.86 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.11) | (.09) | (.06) | (.06) | (.09) |
Net realized and unrealized gain (loss) | 3.74 | (7.97) | 3.55 | 1.74 | 2.60 |
Total from investment operations | 3.63 | (8.06) | 3.49 | 1.68 | 2.51 |
Distributions from net realized gain | - | (.12) | (.39) | (.05) | - |
Net asset value, end of period | $ 16.55 | $ 12.92 | $ 21.10 | $ 18.00 | $ 16.37 |
Total Return A, B | 28.10% | (38.39)% | 19.37% | 10.28% | 18.11% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 1.95% | 1.85% | 1.82% | 1.85% | 1.89% |
Expenses net of fee waivers, if any | 1.95% | 1.85% | 1.82% | 1.85% | 1.89% |
Expenses net of all reductions | 1.94% | 1.85% | 1.82% | 1.83% | 1.85% |
Net investment income (loss) | (.76)% | (.49)% | (.32)% | (.35)% | (.59)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,799 | $ 1,355 | $ 1,879 | $ 1,596 | $ 1,006 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.49 | $ 21.84 | $ 18.52 | $ 16.78 | $ 14.05 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .03 | .09 | .14 | .12 | .07 |
Net realized and unrealized gain (loss) | 3.93 | (8.30) | 3.67 | 1.79 | 2.66 |
Total from investment operations | 3.96 | (8.21) | 3.81 | 1.91 | 2.73 |
Distributions from net investment income | (.02) | (.02) | (.10) | (.09) | - |
Distributions from net realized gain | (.04) | (.12) | (.39) | (.08) | - |
Total distributions | (.06) | (.14) | (.49) | (.17) F | - |
Net asset value, end of period | $ 17.39 | $ 13.49 | $ 21.84 | $ 18.52 | $ 16.78 |
Total Return A | 29.37% | (37.76)% | 20.57% | 11.40% | 19.43% |
Ratios to Average Net Assets C, E |
|
|
|
|
|
Expenses before reductions | .96% | .86% | .81% | .83% | .84% |
Expenses net of fee waivers, if any | .96% | .86% | .81% | .83% | .84% |
Expenses net of all reductions | .95% | .85% | .81% | .82% | .79% |
Net investment income (loss) | .24% | .50% | .69% | .66% | .47% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,225 | $ 2,793 | $ 2,309 | $ 1,540 | $ 498 |
Portfolio turnover rate D | 58% | 74% | 57% | 79% | 65% |
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 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 reductions from 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.
F Total distributions of $.17 per share is comprised of distributions from net investment income of $.086 and distributions from net realized gain of $.083 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (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 Class A, Class T, Class B, Class C, and Institutional 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 16, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise,
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. 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 and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. 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. 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 substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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 claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 short-term gain distributions from Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 2,289,678 |
|
Gross unrealized depreciation | (258,870) |
|
Net unrealized appreciation (depreciation) | $ 2,030,808 |
|
|
|
|
Tax Cost | $ 10,399,811 |
|
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $ 18,489 |
|
Capital loss carryforward | $ (1,550,171) |
|
Net unrealized appreciation (depreciation) | $ 2,030,823 |
|
The tax character of distributions paid was as follows:
| December 31, 2009 | December 31, 2008 |
Ordinary Income | $ 15,572 | $ 7,041 |
Long-term Capital Gains | - | 53,858 |
Total | $ 15,572 | $ 60,899 |
4. Operating Policies.
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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,501,020 and $5,170,633, 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 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 relative investment performance of the Institutional Class of the Fund, as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The performance adjustment took effect in September 2008. For the period, the total annual management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 8,153 | $ 444 |
Class T | .25% | .25% | 6,610 | 28 |
Class B | .75% | .25% | 3,378 | 2,544 |
Class C | .75% | .25% | 14,913 | 3,539 |
|
|
| $ 33,054 | $ 6,555 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,102 |
Class T | 196 |
Class B* | 784 |
Class C* | 252 |
| $ 2,334 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 8,318 | .25 |
Class T | 3,435 | .26 |
Class B | 1,109 | .33 |
Class C | 3,933 | .26 |
Institutional Class | 8,703 | .27 |
| $ 25,498 |
|
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 $65 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $46 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
Annual Report
8. Security Lending - continued
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 $1,772.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class B | 2.00% | $ 50 |
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 $813 for the period. In addition, through arrangements with the Fund's custodian, 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 expenses by $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2009 | 2008 |
From net investment income |
|
|
Class A | $ - | $ 5 |
Institutional Class | 3,220 | 4,512 |
Total | $ 3,220 | $ 4,517 |
From net realized gain |
|
|
Class A | $ 2,465 | $ 15,552 |
Class T | - | 11,399 |
Class B | - | 2,709 |
Class C | - | 10,794 |
Institutional Class | 9,887 | 15,928 |
Total | $ 12,352 | $ 56,382 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Years ended December 31, | 2009 | 2008 | 2009 | 2008 |
Class A |
|
|
|
|
Shares sold | 104,375 | 119,010 | $ 1,494,493 | $ 2,140,557 |
Reinvestment of distributions | 270 | 733 | 4,650 | 14,197 |
Shares redeemed | (52,894) | (45,547) | (757,053) | (756,171) |
Net increase (decrease) | 51,751 | 74,196 | $ 742,090 | $ 1,398,583 |
Class T |
|
|
|
|
Shares sold | 21,310 | 23,040 | $ 301,368 | $ 407,661 |
Reinvestment of distributions | - | 555 | - | 10,694 |
Shares redeemed | (24,666) | (30,471) | (343,847) | (526,856) |
Net increase (decrease) | (3,356) | (6,876) | $ (42,479) | $ (108,501) |
Class B |
|
|
|
|
Shares sold | 5,587 | 6,574 | $ 75,985 | $ 114,734 |
Reinvestment of distributions | - | 121 | - | 2,270 |
Shares redeemed | (5,591) | (5,630) | (75,502) | (93,597) |
Net increase (decrease) | (4) | 1,065 | $ 483 | $ 23,407 |
Class C |
|
|
|
|
Shares sold | 26,780 | 39,154 | $ 366,996 | $ 680,481 |
Reinvestment of distributions | - | 427 | - | 8,052 |
Shares redeemed | (22,967) | (23,763) | (310,754) | (381,933) |
Net increase (decrease) | 3,813 | 15,818 | $ 56,242 | $ 306,600 |
Institutional Class |
|
|
|
|
Shares sold | 125,440 | 157,886 | $ 1,816,051 | $ 2,763,287 |
Reinvestment of distributions | 1,257 | 834 | 20,220 | 14,720 |
Shares redeemed | (90,870) | (57,341) | (1,268,930) | (954,716) |
Net increase (decrease) | 35,827 | 101,379 | $ 567,341 | $ 1,823,291 |
12. 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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Advisor New Insights Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor New Insights Fund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor New Insights Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 16, 2010
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 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 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 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (79) | |
| Year of Election or Appointment: 1984 Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; 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 and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (74) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* 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 (61) | |
| 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). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (56) | |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) | |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). 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 Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (65) | |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (65) | |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (70) | |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (60) | |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (59) | |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (65) | |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (40) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (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). |
Bruce T. Herring (44) | |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Brian B. Hogan (45) | |
| Year of Election or Appointment: 2009 Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager. |
Scott C. Goebel (41) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
William C. Coffey (40) | |
| Year of Election or Appointment: 2009 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments. |
Holly C. Laurent (55) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (62) | |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), 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), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc.(2005-present). |
Jeffrey S. Christian (48) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) | |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
John R. Hebble (51) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments. |
Paul M. Murphy (62) | |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (51) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor New Insights 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:
| Pay Date | Record Date | Capital Gains |
Class A | 02/08/10 | 02/05/10 | $.03 |
Class T | 02/08/10 | 02/05/10 | $.03 |
Class B | 02/08/10 | 02/05/10 | $.03 |
Class C | 02/08/10 | 02/05/10 | $.03 |
Class A designates 100% of the dividends distributed in December 2009 as qualifying for the dividends-received deduction for corporate shareholders.
Class A 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 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Advisor New Insights Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Institutional Class (Class I) and Class B of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Institutional Class (Class I) and Class B show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Advisor New Insights Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Institutional Class (Class I) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.
The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.
The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Class A through May 31, 2009 and stated that it exceeded the fund's benchmark.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Annual Report
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Advisor New Insights Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for 2008 represents calculations for performance periods that differ from the periods shown in the performance charts above.
Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Annual Report
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
ANIF-UANN-0210 1.796408.106
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
New Insights
Fund - Institutional Class
Annual Report
December 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the 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 can be tax advantages and cost benefits to consider as well. 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 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 "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 by 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, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total 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 December 31, 2009 | Past 1 | Past 5 | Life of |
Institutional Class | 29.37% | 5.25% | 9.80% |
A From July 31, 2003.
$10,000 Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Advisor New Insights Fund - Institutional Class on July 31, 2003, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Management's Discussion of Fund Performance
Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.
Comments from William Danoff, Portfolio Manager of Fidelity® Advisor New Insights Fund: It was a relatively good year for the fund, whose Institutional Class shares returned 29.37%, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed. Foreign holdings also did well, bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.
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 sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) 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 (July 1, 2009 to December 31, 2009).
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. 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. 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
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Class A | 1.16% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,219.90 | $ 6.49 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Class T | 1.41% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,217.40 | $ 7.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,214.30 | $ 11.16 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 1.91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,214.20 | $ 10.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Institutional Class | .93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,220.70 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.52 | $ 4.74 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A | 5.7 | 4.6 |
Apple, Inc. | 5.2 | 4.1 |
Wells Fargo & Co. | 3.1 | 3.3 |
Berkshire Hathaway, Inc. Class A | 2.8 | 3.4 |
Visa, Inc. Class A | 2.6 | 2.1 |
The Coca-Cola Co. | 2.3 | 2.3 |
McDonald's Corp. | 2.1 | 2.3 |
Gilead Sciences, Inc. | 1.6 | 2.1 |
The Walt Disney Co. | 1.6 | 1.3 |
Noble Energy, Inc. | 1.4 | 1.5 |
| 28.4 | |
Top Five Market Sectors as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 30.3 | 26.4 |
Consumer Discretionary | 14.8 | 12.6 |
Health Care | 13.0 | 15.3 |
Financials | 12.1 | 12.0 |
Consumer Staples | 7.7 | 8.9 |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2009* | As of June 30, 2009** | ||||||
![]() | Stocks 93.8% |
| ![]() | Stocks 90.8% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 21.6% |
| ** Foreign investments | 18.4% |
|
Annual Report
Investments December 31, 2009
Showing Percentage of Net Assets
Common Stocks - 93.8% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 14.8% | |||
Auto Components - 0.1% | |||
Autoliv, Inc. | 27,800 | $ 1,205 | |
Gentex Corp. | 65,500 | 1,169 | |
Johnson Controls, Inc. | 94,800 | 2,582 | |
TRW Automotive Holdings Corp. (a) | 166,000 | 3,964 | |
| 8,920 | ||
Automobiles - 0.5% | |||
Dongfeng Motor Group Co. Ltd. (H Shares) | 5,534,000 | 7,902 | |
Geely Automobile Holdings Ltd. (c) | 48,420,000 | 26,426 | |
Honda Motor Co. Ltd. sponsored ADR (c) | 392,000 | 13,289 | |
Toyota Motor Corp. | 314,100 | 13,249 | |
| 60,866 | ||
Diversified Consumer Services - 0.2% | |||
Brinks Home Security Holdings, Inc. (a) | 27,900 | 911 | |
MegaStudy Co. Ltd. | 5,835 | 1,196 | |
Strayer Education, Inc. | 85,180 | 18,100 | |
| 20,207 | ||
Hotels, Restaurants & Leisure - 3.4% | |||
7 Days Group Holdings Ltd. ADR | 82,700 | 1,032 | |
Buffalo Wild Wings, Inc. (a) | 15,800 | 636 | |
Cafe de Coral Holdings Ltd. | 1,478,000 | 3,375 | |
Chipotle Mexican Grill, Inc. Class A (a) | 253,128 | 22,316 | |
Ctrip.com International Ltd. sponsored ADR (a) | 15,600 | 1,121 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 160,900 | 5,688 | |
Las Vegas Sands Corp. (a) | 131,000 | 1,957 | |
Little Sheep Group Ltd. | 3,309,000 | 1,832 | |
Marriott International, Inc. Class A | 219,990 | 5,995 | |
McDonald's Corp. | 4,048,027 | 252,759 | |
Panera Bread Co. Class A (a)(c) | 91,500 | 6,128 | |
Sands China Ltd. | 3,750,000 | 4,525 | |
Sodexo SA | 86,100 | 4,914 | |
Starbucks Corp. (a) | 1,671,400 | 38,542 | |
Starwood Hotels & Resorts Worldwide, Inc. | 29,200 | 1,068 | |
Tim Hortons, Inc. | 1,804,400 | 55,052 | |
WMS Industries, Inc. (a) | 253,500 | 10,140 | |
Wyndham Worldwide Corp. | 142,294 | 2,870 | |
| 419,950 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - 0.0% | |||
Gafisa SA sponsored ADR (c) | 182,500 | $ 5,906 | |
iRobot Corp. (a) | 93,300 | 1,642 | |
| 7,548 | ||
Internet & Catalog Retail - 1.9% | |||
Amazon.com, Inc. (a) | 1,262,200 | 169,791 | |
Expedia, Inc. (a) | 276,600 | 7,111 | |
Liberty Media Corp. Interactive Series A (a) | 1,004,800 | 10,892 | |
Netflix, Inc. (a) | 105,736 | 5,830 | |
Priceline.com, Inc. (a) | 200,300 | 43,766 | |
| 237,390 | ||
Leisure Equipment & Products - 0.0% | |||
Sport Supply Group, Inc. | 117,500 | 1,479 | |
Media - 3.5% | |||
CKX, Inc. (a) | 285,693 | 1,506 | |
Comcast Corp. Class A | 436,500 | 7,359 | |
DIRECTV (a) | 2,502,535 | 83,460 | |
Discovery Communications, Inc. (a) | 2,081,000 | 63,824 | |
DreamWorks Animation SKG, Inc. Class A (a) | 237,924 | 9,505 | |
Jupiter Telecommunications Co. | 2,935 | 2,906 | |
Liberty Media Corp.: | |||
Capital Series A (a) | 52,300 | 1,249 | |
Starz Series A (a) | 163,190 | 7,531 | |
Marvel Entertainment, Inc. (a) | 263,400 | 14,245 | |
Naspers Ltd. Class N | 401,500 | 16,255 | |
Net Servicos de Comunicacao SA sponsored ADR | 86,600 | 1,172 | |
Pearson PLC | 93,300 | 1,344 | |
Scripps Networks Interactive, Inc. Class A | 646,400 | 26,826 | |
The Walt Disney Co. | 5,966,900 | 192,433 | |
The Weinstein Co. III Holdings, LLC Class A-1 (a)(h) | 2,267 | 850 | |
| 430,465 | ||
Multiline Retail - 0.6% | |||
99 Cents Only Stores (a) | 218,900 | 2,861 | |
Big Lots, Inc. (a) | 84,100 | 2,437 | |
Dollar General Corp. | 114,100 | 2,559 | |
Dollar Tree, Inc. (a) | 731,500 | 35,331 | |
Dollarama, Inc. | 168,000 | 3,574 | |
Dollarama, Inc. (a)(e) | 71,000 | 1,510 | |
Golden Eagle Retail Group Ltd. (H Shares) | 843,000 | 1,710 | |
Mothercare PLC | 79,633 | 878 | |
Next PLC | 230,000 | 7,743 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Multiline Retail - continued | |||
Parkson Retail Group Ltd. | 5,148,500 | $ 9,060 | |
PCD Stores Group Ltd. | 7,260,000 | 2,787 | |
| 70,450 | ||
Specialty Retail - 2.8% | |||
Advance Auto Parts, Inc. | 386,300 | 15,637 | |
Aeropostale, Inc. (a) | 307,100 | 10,457 | |
Bed Bath & Beyond, Inc. (a) | 186,000 | 7,185 | |
Belle International Holdings Ltd. | 4,460,000 | 5,167 | |
Best Buy Co., Inc. | 322,600 | 12,730 | |
Chico's FAS, Inc. (a) | 80,400 | 1,130 | |
Fourlis Holdings SA | 527,400 | 6,939 | |
Gymboree Corp. (a) | 119,500 | 5,197 | |
Hengdeli Holdings Ltd. | 3,096,000 | 1,169 | |
Inditex SA | 217,722 | 13,525 | |
J. Crew Group, Inc. (a) | 1,166,615 | 52,194 | |
Lumber Liquidators, Inc. (a)(c) | 218,700 | 5,861 | |
O'Reilly Automotive, Inc. (a) | 122,000 | 4,651 | |
RadioShack Corp. | 295,300 | 5,758 | |
Ross Stores, Inc. | 643,373 | 27,478 | |
Rue21, Inc. | 20,400 | 573 | |
Staples, Inc. | 512,100 | 12,593 | |
TJX Companies, Inc. | 3,625,400 | 132,508 | |
Urban Outfitters, Inc. (a) | 658,100 | 23,027 | |
Vitamin Shoppe, Inc. | 41,100 | 914 | |
| 344,693 | ||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Burberry Group PLC | 663,800 | 6,426 | |
China Dongxiang Group Co. Ltd. | 4,722,000 | 3,643 | |
China Hongxing Sports Ltd. | 6,000,000 | 811 | |
Coach, Inc. | 617,600 | 22,561 | |
Li Ning Co. Ltd. | 1,874,500 | 7,107 | |
NIKE, Inc. Class B | 2,387,300 | 157,729 | |
Phillips-Van Heusen Corp. | 26,100 | 1,062 | |
Polo Ralph Lauren Corp. Class A | 201,300 | 16,301 | |
Shenzhou International Group Holdings Ltd. | 547,000 | 712 | |
| 216,352 | ||
TOTAL CONSUMER DISCRETIONARY | 1,818,320 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - 7.7% | |||
Beverages - 2.7% | |||
Anheuser-Busch InBev SA NV | 239,570 | $ 12,483 | |
C&C Group PLC | 373,392 | 1,609 | |
Coca-Cola FEMSA SAB de CV sponsored ADR | 36,500 | 2,399 | |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 31,100 | 3,144 | |
Diageo PLC sponsored ADR | 203,000 | 14,090 | |
Dr Pepper Snapple Group, Inc. | 43,700 | 1,237 | |
Fomento Economico Mexicano SAB de CV sponsored ADR | 51,300 | 2,456 | |
The Coca-Cola Co. | 4,906,300 | 279,659 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 1,896,000 | 10,487 | |
| 327,564 | ||
Food & Staples Retailing - 0.7% | |||
Costco Wholesale Corp. | 390,000 | 23,076 | |
Susser Holdings Corp. (a) | 64,402 | 553 | |
Tesco PLC | 7,647,027 | 52,895 | |
Wal-Mart Stores, Inc. | 167,400 | 8,948 | |
Wm Morrison Supermarkets PLC | 1,062,566 | 4,764 | |
| 90,236 | ||
Food Products - 1.6% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 2,145,000 | 1,759 | |
Brasil Foods SA sponsored ADR (c) | 45,900 | 2,404 | |
Cadbury PLC | 839,200 | 10,816 | |
Campbell Soup Co. | 54,400 | 1,839 | |
Danone | 131,541 | 8,066 | |
General Mills, Inc. | 636,000 | 45,035 | |
Kellogg Co. | 460,500 | 24,499 | |
Nestle SA (Reg.) | 752,945 | 36,504 | |
Ralcorp Holdings, Inc. (a) | 288,600 | 17,232 | |
Tingyi (Cayman Island) Holding Corp. | 4,294,000 | 10,625 | |
TreeHouse Foods, Inc. (a) | 525,593 | 20,425 | |
Want Want China Holdings Ltd. | 21,124,000 | 14,751 | |
| 193,955 | ||
Household Products - 2.6% | |||
Colgate-Palmolive Co. | 1,822,800 | 149,743 | |
Hypermarcas SA (a) | 221,300 | 4,996 | |
Mcbride PLC | 369,800 | 1,265 | |
Procter & Gamble Co. | 2,595,567 | 157,369 | |
| 313,373 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Personal Products - 0.1% | |||
BaWang International (Group) Holding Ltd. | 9,533,000 | $ 6,601 | |
Estee Lauder Companies, Inc. Class A | 50,800 | 2,457 | |
Hengan International Group Co. Ltd. | 948,000 | 7,019 | |
Mead Johnson Nutrition Co. Class A | 10,207 | 446 | |
NBTY, Inc. (a) | 55,100 | 2,399 | |
| 18,922 | ||
Tobacco - 0.0% | |||
Philip Morris International, Inc. | 36,500 | 1,759 | |
TOTAL CONSUMER STAPLES | 945,809 | ||
ENERGY - 7.4% | |||
Energy Equipment & Services - 1.0% | |||
National Oilwell Varco, Inc. | 24,800 | 1,093 | |
Schlumberger Ltd. | 1,805,800 | 117,540 | |
Seadrill Ltd. (c) | 97,400 | 2,487 | |
| 121,120 | ||
Oil, Gas & Consumable Fuels - 6.4% | |||
Anadarko Petroleum Corp. | 802,900 | 50,117 | |
Apache Corp. | 112,600 | 11,617 | |
Arena Resources, Inc. (a) | 82,300 | 3,549 | |
BG Group PLC | 313,664 | 5,688 | |
Birchcliff Energy Ltd. (a) | 1,487,700 | 13,381 | |
BP PLC sponsored ADR | 19,300 | 1,119 | |
Canadian Natural Resources Ltd. | 639,100 | 46,230 | |
Cenovus Energy, Inc. | 1,192,300 | 30,073 | |
Chesapeake Energy Corp. | 62,499 | 1,617 | |
Clean Energy Fuels Corp. (a)(c) | 268,200 | 4,133 | |
CNPC (Hong Kong) Ltd. | 4,430,000 | 5,842 | |
Concho Resources, Inc. (a) | 413,500 | 18,566 | |
Crescent Point Energy Corp. (c) | 377,500 | 14,189 | |
EnCana Corp. | 1,192,300 | 38,709 | |
EOG Resources, Inc. | 567,800 | 55,247 | |
EXCO Resources, Inc. | 61,700 | 1,310 | |
Exxon Mobil Corp. | 737,702 | 50,304 | |
Govi High Power Exploration, Inc. (a)(h) | 2,750,000 | 5,500 | |
GoviEx IP Holdings, Inc. (a)(h) | 2,750,000 | 0* | |
InterOil Corp. (a) | 41,400 | 3,180 | |
Ivanhoe Energy, Inc. (a)(c) | 2,114,400 | 5,957 | |
Newfield Exploration Co. (a) | 25,400 | 1,225 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Niko Resources Ltd. | 27,100 | $ 2,538 | |
Noble Energy, Inc. | 2,446,700 | 174,254 | |
Northern Oil & Gas, Inc. (a)(c) | 906,475 | 10,733 | |
Occidental Petroleum Corp. | 1,250,600 | 101,736 | |
Pacific Rubiales Energy Corp. (a)(c) | 83,700 | 1,231 | |
PetroBakken Energy Ltd. Class A | 337,489 | 10,385 | |
Petrobank Energy & Resources Ltd. (a) | 159,900 | 7,794 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 103,700 | 4,944 | |
Petroplus Holdings AG | 544,927 | 10,015 | |
Range Resources Corp. | 678,200 | 33,808 | |
Reliance Industries Ltd. | 327,616 | 7,698 | |
Sable Mining Africa Ltd. (a)(d) | 30,303,030 | 5,142 | |
Southwestern Energy Co. (a) | 794,900 | 38,314 | |
TransAtlantic Petroleum Ltd. (a)(e) | 1,234,400 | 4,230 | |
Ultra Petroleum Corp. (a) | 22,000 | 1,097 | |
Whiting Petroleum Corp. (a) | 36,400 | 2,601 | |
| 784,073 | ||
TOTAL ENERGY | 905,193 | ||
FINANCIALS - 12.0% | |||
Capital Markets - 1.3% | |||
BlackRock, Inc. Class A | 20,300 | 4,714 | |
Charles Schwab Corp. | 1,802,100 | 33,916 | |
Franklin Resources, Inc. | 260,400 | 27,433 | |
Goldman Sachs Group, Inc. | 336,100 | 56,747 | |
T. Rowe Price Group, Inc. | 705,200 | 37,552 | |
| 160,362 | ||
Commercial Banks - 4.2% | |||
Banco Bradesco SA (PN) sponsored ADR | 62,600 | 1,369 | |
Banco do Brasil SA | 703,900 | 11,833 | |
BOC Hong Kong Holdings Ltd. | 2,423,500 | 5,445 | |
Center Financial Corp. | 50,000 | 230 | |
China Citic Bank Corp. Ltd. Class H | 4,460,000 | 3,775 | |
China Merchants Bank Co. Ltd. (H Shares) | 461,000 | 1,199 | |
HDFC Bank Ltd. sponsored ADR (c) | 47,700 | 6,205 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 14,176,000 | 11,674 | |
Itau Unibanco Banco Multiplo SA ADR | 736,370 | 16,819 | |
M&T Bank Corp. (c) | 18,800 | 1,258 | |
PT Bank Central Asia Tbk | 2,333,500 | 1,201 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Standard Chartered PLC (United Kingdom) | 2,626,126 | $ 66,846 | |
State Bank of India | 115,430 | 5,643 | |
Union Bank of India | 11,346 | 65 | |
Wells Fargo & Co. | 14,233,785 | 384,170 | |
| 517,732 | ||
Consumer Finance - 0.3% | |||
American Express Co. | 876,400 | 35,512 | |
Diversified Financial Services - 1.9% | |||
BM&F BOVESPA SA | 323,200 | 2,286 | |
Citigroup, Inc. | 9,470,900 | 31,349 | |
CME Group, Inc. | 18,400 | 6,181 | |
Gimv NV | 18,400 | 962 | |
Hong Kong Exchanges and Clearing Ltd. | 1,040,900 | 18,519 | |
IntercontinentalExchange, Inc. (a) | 100,000 | 11,230 | |
JPMorgan Chase & Co. | 3,878,719 | 161,626 | |
MSCI, Inc. Class A (a) | 74,300 | 2,363 | |
| 234,516 | ||
Insurance - 4.0% | |||
ACE Ltd. | 310,900 | 15,669 | |
Admiral Group PLC | 837,500 | 16,093 | |
Berkshire Hathaway, Inc. Class A (a) | 3,493 | 346,506 | |
China Life Insurance Co. Ltd. ADR (c) | 14,300 | 1,049 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 48,300 | 18,848 | |
The Chubb Corp. | 1,165,600 | 57,324 | |
The Travelers Companies, Inc. | 668,900 | 33,351 | |
| 488,840 | ||
Real Estate Investment Trusts - 0.1% | |||
Corporate Office Properties Trust (SBI) | 30,700 | 1,125 | |
Simon Property Group, Inc. | 45,872 | 3,661 | |
Starwood Property Trust, Inc. | 145,300 | 2,745 | |
| 7,531 | ||
Real Estate Management & Development - 0.2% | |||
China Overseas Land & Investment Ltd. | 1,560,000 | 3,269 | |
Swire Pacific Ltd. (A Shares) | 282,000 | 3,410 | |
Wharf Holdings Ltd. | 2,381,000 | 13,664 | |
| 20,343 | ||
TOTAL FINANCIALS | 1,464,836 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - 12.9% | |||
Biotechnology - 3.5% | |||
Actelion Ltd. (Reg.) (a) | 296,029 | $ 15,781 | |
Alexion Pharmaceuticals, Inc. (a) | 399,700 | 19,513 | |
Allos Therapeutics, Inc. (a)(c) | 372,600 | 2,448 | |
Amgen, Inc. (a) | 261,300 | 14,782 | |
Celgene Corp. (a) | 847,400 | 47,183 | |
Gilead Sciences, Inc. (a) | 4,479,200 | 193,860 | |
Human Genome Sciences, Inc. (a)(c) | 816,200 | 24,976 | |
ImmunoGen, Inc. (a) | 274,419 | 2,157 | |
MannKind Corp. (a)(c) | 828,333 | 7,256 | |
MannKind Corp. warrants 8/3/10 (a)(h) | 29,881 | 35 | |
Medivation, Inc. (a)(c) | 853,300 | 32,127 | |
Micromet, Inc. (a) | 467,100 | 3,111 | |
OREXIGEN Therapeutics, Inc. (a) | 121,500 | 904 | |
Regeneron Pharmaceuticals, Inc. (a) | 175,300 | 4,239 | |
RXi Pharmaceuticals Corp. (a)(c) | 571,429 | 2,617 | |
RXi Pharmaceuticals Corp. warrants 2/4/10 (a) | 228,571 | 775 | |
Seattle Genetics, Inc. (a) | 165,800 | 1,685 | |
Targacept, Inc. (a) | 1,105,800 | 23,133 | |
United Therapeutics Corp. (a) | 119,500 | 6,292 | |
Vertex Pharmaceuticals, Inc. (a) | 535,700 | 22,955 | |
Zymogenetics, Inc. (a)(c) | 193,400 | 1,236 | |
| 427,065 | ||
Health Care Equipment & Supplies - 2.0% | |||
Alcon, Inc. | 215,500 | 35,417 | |
Baxter International, Inc. | 288,700 | 16,941 | |
Becton, Dickinson & Co. | 271,500 | 21,410 | |
C. R. Bard, Inc. | 135,499 | 10,555 | |
Covidien PLC | 1,422,666 | 68,131 | |
DENTSPLY International, Inc. | 719,717 | 25,312 | |
Edwards Lifesciences Corp. (a) | 356,400 | 30,953 | |
ev3, Inc. (a) | 393,800 | 5,253 | |
ICU Medical, Inc. (a) | 27,900 | 1,017 | |
Inverness Medical Innovations, Inc. (a) | 166,300 | 6,903 | |
Mindray Medical International Ltd. sponsored ADR (c) | 34,100 | 1,157 | |
NuVasive, Inc. (a) | 199,400 | 6,377 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 2,284,000 | 7,612 | |
Thoratec Corp. (a) | 102,800 | 2,767 | |
| 239,805 | ||
Health Care Providers & Services - 1.6% | |||
Emergency Medical Services Corp. Class A (a) | 157,100 | 8,507 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Express Scripts, Inc. (a) | 589,100 | $ 50,928 | |
Henry Schein, Inc. (a) | 51,800 | 2,725 | |
HMS Holdings Corp. (a) | 80,400 | 3,915 | |
Medco Health Solutions, Inc. (a) | 2,070,500 | 132,326 | |
Sinopharm Group Co. Ltd. Class H | 438,000 | 1,539 | |
| 199,940 | ||
Health Care Technology - 0.4% | |||
Cerner Corp. (a) | 368,700 | 30,396 | |
Quality Systems, Inc. | 337,900 | 21,217 | |
| 51,613 | ||
Life Sciences Tools & Services - 1.2% | |||
Fluidigm Corp. warrants 9/10/10 (a) | 1 | 0 | |
Illumina, Inc. (a) | 72,300 | 2,216 | |
Life Technologies Corp. (a) | 516,400 | 26,972 | |
Mettler-Toledo International, Inc. (a) | 552,000 | 57,954 | |
QIAGEN NV (a) | 517,600 | 11,553 | |
Techne Corp. | 47,400 | 3,250 | |
Thermo Fisher Scientific, Inc. (a) | 64,600 | 3,081 | |
Waters Corp. (a) | 651,000 | 40,336 | |
| 145,362 | ||
Pharmaceuticals - 4.2% | |||
Abbott Laboratories | 3,134,500 | 169,232 | |
Allergan, Inc. | 173,400 | 10,926 | |
AstraZeneca PLC (United Kingdom) | 1,228,655 | 57,777 | |
Bristol-Myers Squibb Co. | 620,432 | 15,666 | |
Dr. Reddy's Laboratories Ltd. sponsored ADR (c) | 146,900 | 3,556 | |
Forest Laboratories, Inc. (a) | 964,400 | 30,967 | |
Johnson & Johnson | 1,603,700 | 103,294 | |
MAP Pharmaceuticals, Inc. (a) | 599,800 | 5,716 | |
Merck & Co., Inc. | 102,300 | 3,738 | |
Novo Nordisk AS Series B | 450,333 | 28,763 | |
Optimer Pharmaceuticals, Inc. (a) | 116,900 | 1,319 | |
Salix Pharmaceuticals Ltd. (a) | 238,100 | 6,048 | |
Shionogi & Co. Ltd. | 108,000 | 2,343 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,002,900 | 56,343 | |
Valeant Pharmaceuticals International (a)(c) | 530,700 | 16,871 | |
| 512,559 | ||
TOTAL HEALTH CARE | 1,576,344 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - 2.9% | |||
Aerospace & Defense - 0.2% | |||
AeroVironment, Inc. (a) | 39,500 | $ 1,149 | |
DigitalGlobe, Inc. | 53,000 | 1,283 | |
GeoEye, Inc. (a) | 78,200 | 2,180 | |
Precision Castparts Corp. | 34,500 | 3,807 | |
Raytheon Co. | 21,100 | 1,087 | |
United Technologies Corp. | 182,100 | 12,640 | |
| 22,146 | ||
Air Freight & Logistics - 0.7% | |||
C.H. Robinson Worldwide, Inc. | 1,374,272 | 80,711 | |
Airlines - 0.0% | |||
Ryanair Holdings PLC sponsored ADR (a) | 42,500 | 1,140 | |
Southwest Airlines Co. | 345,200 | 3,946 | |
| 5,086 | ||
Building Products - 0.1% | |||
Armstrong World Industries, Inc. (a) | 175,800 | 6,844 | |
Commercial Services & Supplies - 0.2% | |||
APAC Customer Services, Inc. (a)(c)(d) | 2,732,044 | 16,283 | |
Stericycle, Inc. (a) | 191,900 | 10,587 | |
Waste Connections, Inc. (a) | 35,400 | 1,180 | |
| 28,050 | ||
Construction & Engineering - 0.2% | |||
Jacobs Engineering Group, Inc. (a) | 503,200 | 18,925 | |
Electrical Equipment - 0.3% | |||
A123 Systems, Inc. | 43,400 | 974 | |
American Superconductor Corp. (a)(c) | 349,100 | 14,278 | |
China High Speed Transmission Equipment Group Co. Ltd. | 2,709,000 | 6,577 | |
Cooper Industries PLC Class A | 332,645 | 14,184 | |
Nexxus Lighting, Inc. (a) | 109,400 | 372 | |
| 36,385 | ||
Industrial Conglomerates - 0.0% | |||
Beijing Enterprises Holdings Ltd. | 635,500 | 4,603 | |
Carlisle Companies, Inc. | 32,100 | 1,100 | |
| 5,703 | ||
Machinery - 0.8% | |||
China Automation Group Ltd. | 5,128,000 | 4,183 | |
Danaher Corp. | 740,177 | 55,661 | |
Duoyuan Global Water, Inc. ADR (c) | 90,300 | 3,232 | |
Oshkosh Co. | 61,700 | 2,285 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
PACCAR, Inc. | 502,723 | $ 18,234 | |
SmartHeat, Inc. (a)(c) | 630,800 | 9,159 | |
| 92,754 | ||
Marine - 0.0% | |||
Kuehne & Nagel International AG | 12,190 | 1,183 | |
Professional Services - 0.1% | |||
Robert Half International, Inc. | 243,700 | 6,514 | |
SEEK Ltd. | 1,000,000 | 6,198 | |
Verisk Analytics, Inc. | 200,800 | 6,080 | |
| 18,792 | ||
Road & Rail - 0.3% | |||
Canadian National Railway Co. | 514,400 | 28,074 | |
CSX Corp. | 73,600 | 3,569 | |
Dollar Thrifty Automotive Group, Inc. (a) | 64,400 | 1,649 | |
Knight Transportation, Inc. | 38,000 | 733 | |
Norfolk Southern Corp. | 23,300 | 1,221 | |
| 35,246 | ||
Trading Companies & Distributors - 0.0% | |||
Fastenal Co. (c) | 56,400 | 2,348 | |
W.W. Grainger, Inc. | 22,000 | 2,130 | |
| 4,478 | ||
TOTAL INDUSTRIALS | 356,303 | ||
INFORMATION TECHNOLOGY - 30.2% | |||
Communications Equipment - 2.1% | |||
Aruba Networks, Inc. (a) | 3,500 | 37 | |
BYD Electronic International Co. Ltd. (a) | 12,928,500 | 10,530 | |
Cisco Systems, Inc. (a) | 3,709,800 | 88,813 | |
F5 Networks, Inc. (a) | 343,000 | 18,172 | |
Motorola, Inc. | 501,500 | 3,892 | |
QUALCOMM, Inc. | 3,075,000 | 142,250 | |
ZTE Corp. (H Shares) | 34,400 | 211 | |
| 263,905 | ||
Computers & Peripherals - 6.9% | |||
Apple, Inc. (a) | 3,004,453 | 633,519 | |
Compellent Technologies, Inc. (a) | 171,400 | 3,887 | |
Dell, Inc. (a) | 461,000 | 6,620 | |
EMC Corp. (a) | 69,900 | 1,221 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Hewlett-Packard Co. | 3,184,100 | $ 164,013 | |
NetApp, Inc. (a) | 836,300 | 28,760 | |
Western Digital Corp. (a) | 176,100 | 7,775 | |
| 845,795 | ||
Electronic Equipment & Components - 1.1% | |||
Agilent Technologies, Inc. | 259,100 | 8,050 | |
Amphenol Corp. Class A (a) | 1,161,840 | 53,654 | |
BYD Co. Ltd. (H Shares) (a)(c) | 4,365,190 | 38,263 | |
Corning, Inc. | 139,000 | 2,684 | |
FLIR Systems, Inc. (a) | 911,700 | 29,831 | |
Itron, Inc. (a) | 18,500 | 1,250 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 89,500 | 2,356 | |
Samsung SDI Co. Ltd. | 9,106 | 1,160 | |
Tech Data Corp. (a) | 26,500 | 1,236 | |
Wasion Group Holdings Ltd. | 4,128,000 | 4,290 | |
| 142,774 | ||
Internet Software & Services - 7.5% | |||
AOL, Inc. (a) | 164,999 | 3,841 | |
Baidu.com, Inc. sponsored ADR (a) | 67,800 | 27,881 | |
Constant Contact, Inc. (a) | 199,000 | 3,184 | |
Google, Inc. Class A (a) | 1,119,871 | 694,297 | |
LogMeIn, Inc. | 106,500 | 2,125 | |
NetEase.com, Inc. sponsored ADR (a)(c) | 911,000 | 34,263 | |
NHN Corp. (a) | 6,949 | 1,144 | |
Open Text Corp. (a) | 49,400 | 2,008 | |
Rackspace Hosting, Inc. (a) | 117,800 | 2,456 | |
SkillSoft PLC sponsored ADR (a) | 111,800 | 1,172 | |
Sohu.com, Inc. (a)(c) | 282,100 | 16,159 | |
Tencent Holdings Ltd. | 4,614,700 | 99,802 | |
VistaPrint Ltd. (a) | 317,200 | 17,973 | |
WebMD Health Corp. (a) | 230,036 | 8,854 | |
| 915,159 | ||
IT Services - 4.2% | |||
Accenture PLC Class A | 1,747,400 | 72,517 | |
Cognizant Technology Solutions Corp. Class A (a) | 430,400 | 19,497 | |
Echo Global Logistics, Inc. | 28,600 | 363 | |
Fidelity National Information Services, Inc. | 1,120,300 | 26,260 | |
Fiserv, Inc. (a) | 46,700 | 2,264 | |
Global Payments, Inc. | 14,300 | 770 | |
Hewitt Associates, Inc. Class A (a) | 409,500 | 17,305 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Infosys Technologies Ltd. sponsored ADR | 16,300 | $ 901 | |
MasterCard, Inc. Class A | 179,469 | 45,940 | |
Redecard SA | 413,200 | 6,782 | |
The Western Union Co. | 46,600 | 878 | |
VeriFone Holdings, Inc. (a) | 4,800 | 79 | |
Visa, Inc. Class A | 3,653,800 | 319,561 | |
Wipro Ltd. sponsored ADR (c) | 58,100 | 1,294 | |
| 514,411 | ||
Semiconductors & Semiconductor Equipment - 3.4% | |||
Altera Corp. | 1,069,700 | 24,207 | |
Analog Devices, Inc. | 38,200 | 1,206 | |
ARM Holdings PLC sponsored ADR | 305,800 | 2,618 | |
ASML Holding NV (NY Shares) | 367,600 | 12,531 | |
Atheros Communications, Inc. (a) | 28,983 | 992 | |
Avago Technologies Ltd. | 270,800 | 4,953 | |
Broadcom Corp. Class A (a) | 892,000 | 28,053 | |
Cree, Inc. (a) | 729,000 | 41,094 | |
Cymer, Inc. (a) | 131,000 | 5,028 | |
Intel Corp. | 441,000 | 8,996 | |
KLA-Tencor Corp. | 241,100 | 8,718 | |
Marvell Technology Group Ltd. (a) | 3,684,700 | 76,458 | |
MediaTek, Inc. | 65,000 | 1,134 | |
NVIDIA Corp. (a) | 2,965,600 | 55,397 | |
ON Semiconductor Corp. (a) | 488,000 | 4,299 | |
Samsung Electronics Co. Ltd. | 154,257 | 105,698 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 2,921,346 | 33,420 | |
| 414,802 | ||
Software - 5.0% | |||
Activision Blizzard, Inc. (a) | 3,834,600 | 42,602 | |
Adobe Systems, Inc. (a) | 971,806 | 35,743 | |
ANSYS, Inc. (a) | 173,700 | 7,549 | |
ArcSight, Inc. (a) | 314,239 | 8,038 | |
Ariba, Inc. (a) | 109,800 | 1,375 | |
AsiaInfo Holdings, Inc. (a) | 576,000 | 17,551 | |
BMC Software, Inc. (a) | 1,083,400 | 43,444 | |
Check Point Software Technologies Ltd. (a) | 1,045,300 | 35,415 | |
Citrix Systems, Inc. (a) | 626,800 | 26,081 | |
CommVault Systems, Inc. (a) | 98,800 | 2,341 | |
Fortinet, Inc. | 204,700 | 3,597 | |
Informatica Corp. (a) | 574,409 | 14,854 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Intuit, Inc. (a) | 38,500 | $ 1,182 | |
Longtop Financial Technologies Ltd. ADR (a) | 204,600 | 7,574 | |
McAfee, Inc. (a) | 1,983,400 | 80,467 | |
Oracle Corp. | 5,625,150 | 138,041 | |
Pegasystems, Inc. | 197,100 | 6,701 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 99,100 | 3,909 | |
Red Hat, Inc. (a) | 490,800 | 15,166 | |
Rovi Corp. (a) | 194,000 | 6,183 | |
Salesforce.com, Inc. (a) | 523,700 | 38,633 | |
Shanda Interactive Entertainment Ltd. sponsored ADR (a) | 381,600 | 20,076 | |
SolarWinds, Inc. (c) | 328,800 | 7,566 | |
Solera Holdings, Inc. | 32,900 | 1,185 | |
Sourcefire, Inc. (a) | 967,340 | 25,876 | |
SuccessFactors, Inc. (a) | 163,900 | 2,717 | |
Sybase, Inc. (a) | 55,600 | 2,413 | |
TIBCO Software, Inc. (a) | 592,300 | 5,704 | |
VanceInfo Technologies, Inc. ADR (a) | 237,700 | 4,566 | |
VMware, Inc. Class A (a) | 54,500 | 2,310 | |
| 608,859 | ||
TOTAL INFORMATION TECHNOLOGY | 3,705,705 | ||
MATERIALS - 5.3% | |||
Chemicals - 0.5% | |||
Ecolab, Inc. | 835,300 | 37,238 | |
Huabao International Holdings Ltd. | 15,641,000 | 16,818 | |
Lubrizol Corp. | 61,100 | 4,457 | |
Valspar Corp. | 30,300 | 822 | |
| 59,335 | ||
Containers & Packaging - 0.1% | |||
Owens-Illinois, Inc. (a) | 28,300 | 930 | |
Rock-Tenn Co. Class A | 112,000 | 5,646 | |
Temple-Inland, Inc. | 313,100 | 6,610 | |
| 13,186 | ||
Metals & Mining - 4.7% | |||
Alamos Gold, Inc. (a) | 104,100 | 1,244 | |
AngloGold Ashanti Ltd. sponsored ADR | 568,800 | 22,854 | |
B2Gold Corp. (a) | 1,404,000 | 1,617 | |
B2Gold Corp. (a)(e) | 500,000 | 576 | |
BHP Billiton Ltd. sponsored ADR | 158,900 | 12,169 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Eldorado Gold Corp. (a) | 4,402,803 | $ 62,523 | |
First Quantum Minerals Ltd. | 51,900 | 3,965 | |
Franco-Nevada Corp. | 1,402,200 | 37,502 | |
Franco-Nevada Corp. (e) | 126,300 | 3,378 | |
Franco-Nevada Corp. warrants 6/16/17 (a)(e) | 63,150 | 397 | |
Goldcorp, Inc. | 2,693,301 | 105,999 | |
Ivanhoe Mines Ltd. (a) | 4,017,100 | 59,302 | |
Kinross Gold Corp. | 4,055,076 | 74,760 | |
Newcrest Mining Ltd. | 2,507,164 | 79,565 | |
Randgold Resources Ltd. sponsored ADR | 880,722 | 69,683 | |
Red Back Mining, Inc. (a) | 1,854,804 | 26,481 | |
Red Back Mining, Inc. (a)(e) | 98,900 | 1,412 | |
Vale SA sponsored ADR | 240,900 | 6,993 | |
Ventana Gold Corp. (a) | 164,400 | 1,261 | |
| 571,681 | ||
TOTAL MATERIALS | 644,202 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
AboveNet, Inc. (a) | 89,000 | 5,789 | |
Clearwire Corp.: | |||
rights 6/21/10 (a) | 357,050 | 143 | |
Class A (a) | 357,050 | 2,414 | |
Iliad Group SA | 10,223 | 1,222 | |
Nippon Telegraph & Telephone Corp. | 138,400 | 5,470 | |
Telmex Internacional SAB de CV Series L ADR (c) | 155,400 | 2,758 | |
| 17,796 | ||
Wireless Telecommunication Services - 0.4% | |||
American Tower Corp. Class A (a) | 287,900 | 12,440 | |
MTN Group Ltd. | 293,200 | 4,665 | |
NTT DoCoMo, Inc. | 2,849 | 3,978 | |
Sprint Nextel Corp. (a) | 647,700 | 2,371 | |
Vivo Participacoes SA sponsored ADR | 614,700 | 19,056 | |
| 42,510 | ||
TOTAL TELECOMMUNICATION SERVICES | 60,306 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
YTL Corp. Bhd | 3,794,910 | $ 8,091 | |
Water Utilities - 0.0% | |||
YTL Power International Bhd | 3,555 | 2 | |
TOTAL UTILITIES | 8,093 | ||
TOTAL COMMON STOCKS (Cost $9,315,008) | 11,485,111 | ||
Preferred Stocks - 0.2% | |||
|
|
|
|
Convertible Preferred Stocks - 0.2% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Ning, Inc. Series D 8.00% (a)(h) | 541,260 | 3,191 | |
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Light Sciences Oncology, Inc. (a)(h) | 463,700 | 1,855 | |
Light Sciences Oncology, Inc. Series B (a)(h) | 1,792,115 | 7,168 | |
| 9,023 | ||
Health Care Equipment & Supplies - 0.0% | |||
superDimension Ltd. (a)(h) | 91,600 | 1,053 | |
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 143,925 | 1,007 | |
TOTAL HEALTH CARE | 11,083 | ||
INFORMATION TECHNOLOGY - 0.1% | |||
Internet Software & Services - 0.0% | |||
Digg, Inc. Series C, 8.00% (a)(h) | 64,821 | 486 | |
Software - 0.1% | |||
Trion World Network, Inc. 8.00% (h) | 602,295 | 3,307 | |
TOTAL INFORMATION TECHNOLOGY | 3,793 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 18,067 | ||
Preferred Stocks - continued | |||
Shares | Value (000s) | ||
Nonconvertible Preferred Stocks - 0.0% | |||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Slide, Inc. Series D (a)(h) | 809,262 | $ 1,003 | |
TOTAL PREFERRED STOCKS (Cost $34,367) | 19,070 |
Nonconvertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co.: | ||||
6.375% 2/1/29 | $ 700 | 515 | ||
6.625% 10/1/28 | 1,490 | 1,118 | ||
7.45% 7/16/31 | 2,235 | 1,975 | ||
| 3,608 | |||
FINANCIALS - 0.1% | ||||
Diversified Financial Services - 0.1% | ||||
Ford Holdings LLC 9.3% 3/1/30 | 6,415 | 5,902 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $4,295) | 9,510 | |||
Floating Rate Loans - 0.0% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co. term loan 3.2871% 12/15/13 (f) (Cost $5,910) | 6,666 | 6,183 |
Money Market Funds - 7.4% | |||
Shares | Value (000s) | ||
Fidelity Cash Central Fund, 0.16% (g) | 771,494,181 | $ 771,494 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g) | 139,250,900 | 139,251 | |
TOTAL MONEY MARKET FUNDS (Cost $910,745) | 910,745 | ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $10,270,325) | 12,430,619 | ||
NET OTHER ASSETS - (1.5)% | (183,763) | ||
NET ASSETS - 100% | $ 12,246,856 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(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 $13,859,000 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) 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. |
(h) 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 $24,448,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition |
Digg, Inc. Series C, 8.00% | 9/23/08 | $ 683 |
Govi High Power Exploration, Inc. | 9/28/07 | $ 5,500 |
GoviEx IP Holdings, Inc. | 7/28/08 | $ 0* |
Light Sciences Oncology, Inc. | 7/9/08 | $ 3,881 |
Light Sciences Oncology, Inc. Series B | 4/4/07 | $ 15,000 |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 1 |
Ning, Inc. Series D 8.00% | 3/19/08 | $ 3,870 |
Slide, Inc. Series D | 1/14/08 | $ 3,693 |
superDimension Ltd. | 2/27/08 - 5/22/08 | $ 1,963 |
The Weinstein Co. III Holdings, LLC Class A-1 | 10/19/05 | $ 2,267 |
Trion World Network, Inc. 8.00% | 8/22/08 | $ 3,307 |
* Amount represents less than $1,000. |
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 | $ 3,733 |
Fidelity Securities Lending Cash Central Fund | 1,772 |
Total | $ 5,505 |
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: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
APAC Customer Services, Inc. | $ - | $ 14,329 | $ - | $ - | $ 16,283 |
Sable Mining Africa Ltd. | - | 4,932 | - | - | 5,142 |
Total | $ - | $ 19,261 | $ - | $ - | $ 21,425 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 1,818,320 | $ 1,725,900 | $ 91,570 | $ 850 |
Consumer Staples | 945,809 | 894,567 | 51,242 | - |
Energy | 905,193 | 893,851 | 5,842 | 5,500 |
Financials | 1,468,027 | 1,403,881 | 60,955 | 3,191 |
Health Care | 1,587,427 | 1,506,263 | 70,081 | 11,083 |
Industrials | 356,303 | 340,940 | 15,363 | - |
Information Technology | 3,709,498 | 3,552,609 | 153,096 | 3,793 |
Materials | 644,202 | 627,384 | 16,818 | - |
Telecommunication Services | 61,309 | 50,858 | 9,448 | 1,003 |
Utilities | 8,093 | 8,093 | - | - |
Corporate Bonds | 9,510 | - | 9,510 | - |
Floating Rate Loans | 6,183 | - | 6,183 | - |
Money Market Funds | 910,745 | 910,745 | - | - |
Total Investments in Securities: | $ 12,430,619 | $ 11,915,091 | $ 490,108 | $ 25,420 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: |
|
Beginning Balance | $ 67,974 |
Total Realized Gain (Loss) | (16,265) |
Total Unrealized Gain (Loss) | (9,129) |
Cost of Purchases | 45 |
Proceeds of Sales | (11,735) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (5,470) |
Ending Balance | $ 25,420 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009 | $ (5,859) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 78.4% |
Canada | 5.6% |
China | 2.4% |
United Kingdom | 2.1% |
Ireland | 1.3% |
Bermuda | 1.0% |
Netherlands Antilles | 1.0% |
Others (individually less than 1%) | 8.2% |
| 100.0% |
Income Tax Information |
At December 31, 2009, the fund had a capital loss carryforward of approximately $1,550,171,000 of which $726,035,000 and $824,136,000 will expire on December 31, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending December 31, 2010 approximately $84,647,000 of losses recognized during the period November 1, 2009 to December 31, 2009. |
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) | December 31, 2009 | |
Assets | ||
Investment in securities, at value (including securities loaned of $134,730) - See accompanying schedule: Unaffiliated issuers (cost $9,340,319) | $ 11,498,449 |
|
Fidelity Central Funds (cost $910,745) | 910,745 |
|
Other affiliated issuers (cost $19,261) | 21,425 |
|
Total Investments (cost $10,270,325) |
| $ 12,430,619 |
Cash | 305 | |
Receivable for investments sold | 2,585 | |
Receivable for fund shares sold | 25,058 | |
Dividends receivable | 7,162 | |
Interest receivable | 333 | |
Distributions receivable from Fidelity Central Funds | 257 | |
Prepaid expenses | 48 | |
Other receivables | 303 | |
Total assets | 12,466,670 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 45,577 | |
Payable for fund shares redeemed | 22,422 | |
Accrued management fee | 6,427 | |
Distribution fees payable | 3,311 | |
Other affiliated payables | 2,402 | |
Other payables and accrued expenses | 424 | |
Collateral on securities loaned, at value | 139,251 | |
Total liabilities | 219,814 | |
|
|
|
Net Assets | $ 12,246,856 | |
Net Assets consist of: |
| |
Paid in capital | $ 11,832,430 | |
Accumulated net investment loss | (45) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,745,839) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,160,310 | |
Net Assets | $ 12,246,856 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2009 | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.24 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.24) | $ 18.29 | |
Class T: | $ 17.08 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.08) | $ 17.70 | |
Class B: | $ 16.49 | |
|
|
|
Class C: | $ 16.55 | |
|
|
|
Institutional Class: | $ 17.39 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2009 | |
Investment Income |
|
|
Dividends |
| $ 108,289 |
Interest |
| 656 |
Income from Fidelity Central Funds |
| 5,505 |
Total income |
| 114,450 |
Expenses | ||
Management fee | $ 54,209 | |
Performance adjustment | 8,928 | |
Transfer agent fees | 25,498 | |
Distribution fees | 33,054 | |
Accounting and security lending fees | 1,440 | |
Custodian fees and expenses | 608 | |
Independent trustees' compensation | 65 | |
Registration fees | 771 | |
Audit | 93 | |
Legal | 49 | |
Miscellaneous | 183 | |
Total expenses before reductions | 124,898 | |
Expense reductions | (865) | 124,033 |
Net investment income (loss) | (9,583) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (358,609) | |
Foreign currency transactions | (184) | |
Capital gain distributions from Fidelity Central Funds | 9 | |
Total net realized gain (loss) |
| (358,784) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,979,201 | |
Assets and liabilities in foreign currencies | 5 | |
Total change in net unrealized appreciation (depreciation) |
| 2,979,206 |
Net gain (loss) | 2,620,422 | |
Net increase (decrease) in net assets resulting from operations | $ 2,610,839 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (9,583) | $ 11,706 |
Net realized gain (loss) | (358,784) | (1,357,004) |
Change in net unrealized appreciation (depreciation) | 2,979,206 | (3,202,536) |
Net increase (decrease) in net assets resulting | 2,610,839 | (4,547,834) |
Distributions to shareholders from net investment income | (3,220) | (4,517) |
Distributions to shareholders from net realized gain | (12,352) | (56,382) |
Total distributions | (15,572) | (60,899) |
Share transactions - net increase (decrease) | 1,323,677 | 3,443,380 |
Total increase (decrease) in net assets | 3,918,944 | (1,165,353) |
|
|
|
Net Assets | ||
Beginning of period | 8,327,912 | 9,493,265 |
End of period (including accumulated net investment loss of $45 and undistributed net investment income of $2,772, respectively) | $ 12,246,856 | $ 8,327,912 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.36 | $ 21.65 | $ 18.37 | $ 16.65 | $ 13.99 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | - G | .05 | .08 | .06 | .02 |
Net realized and unrealized gain (loss) | 3.89 | (8.22) | 3.65 | 1.78 | 2.64 |
Total from investment operations | 3.89 | (8.17) | 3.73 | 1.84 | 2.66 |
Distributions from net investment income | - | - G | (.06) | (.03) | - |
Distributions from net realized gain | (.01) | (.12) | (.39) | (.08) | - |
Total distributions | (.01) | (.12) | (.45) | (.12) H | - |
Net asset value, end of period | $ 17.24 | $ 13.36 | $ 21.65 | $ 18.37 | $ 16.65 |
Total Return A, B | 29.12% | �� (37.92)% | 20.26% | 11.06% | 19.01% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 1.19% | 1.10% | 1.09% | 1.12% | 1.17% |
Expenses net of fee waivers, if any | 1.19% | 1.10% | 1.09% | 1.12% | 1.17% |
Expenses net of all reductions | 1.18% | 1.10% | 1.08% | 1.11% | 1.13% |
Net investment income (loss) | -% I | .26% | .42% | .37% | .13% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,265 | $ 2,614 | $ 2,630 | $ 1,823 | $ 1,019 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
H Total distributions of $.12 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.083 per share.
I Amount represents less than .01%
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.26 | $ 21.56 | $ 18.29 | $ 16.57 | $ 13.96 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.04) | - G | .04 | .03 | (.01) |
Net realized and unrealized gain (loss) | 3.86 | (8.18) | 3.62 | 1.77 | 2.62 |
Total from investment operations | 3.82 | (8.18) | 3.66 | 1.80 | 2.61 |
Distributions from net realized gain | - | (.12) | (.39) | (.08) | - |
Net asset value, end of period | $ 17.08 | $ 13.26 | $ 21.56 | $ 18.29 | $ 16.57 |
Total Return A, B | 28.81% | (38.13)% | 20.00% | 10.90% | 18.70% |
Ratios to Average Net D, F |
|
|
|
|
|
Expenses before reductions | 1.45% | 1.34% | 1.31% | 1.32% | 1.38% |
Expenses net of fee waivers, if any | 1.45% | 1.34% | 1.31% | 1.32% | 1.38% |
Expenses net of all reductions | 1.44% | 1.34% | 1.31% | 1.31% | 1.34% |
Net investment income (loss) | (.25)% | .02% | .19% | .17% | (.08)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,557 | $ 1,254 | $ 2,185 | $ 2,165 | $ 1,393 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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 - Class B
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.88 | $ 21.04 | $ 17.97 | $ 16.35 | $ 13.85 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.11) | (.10) | (.08) | (.07) | (.10) |
Net realized and unrealized gain (loss) | 3.72 | (7.94) | 3.54 | 1.74 | 2.60 |
Total from investment operations | 3.61 | (8.04) | 3.46 | 1.67 | 2.50 |
Distributions from net realized gain | - | (.12) | (.39) | (.05) | - |
Net asset value, end of period | $ 16.49 | $ 12.88 | $ 21.04 | $ 17.97 | $ 16.35 |
Total Return A, B | 28.03% | (38.41)% | 19.24% | 10.23% | 18.05% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 2.01% | 1.91% | 1.89% | 1.93% | 1.98% |
Expenses net of fee waivers, if any | 2.00% | 1.91% | 1.89% | 1.93% | 1.98% |
Expenses net of all reductions | 1.99% | 1.91% | 1.89% | 1.92% | 1.94% |
Net investment income (loss) | (.81)% | (.55)% | (.39)% | (.44)% | (.68)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 401 | $ 313 | $ 489 | $ 452 | $ 339 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.92 | $ 21.10 | $ 18.00 | $ 16.37 | $ 13.86 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | (.11) | (.09) | (.06) | (.06) | (.09) |
Net realized and unrealized gain (loss) | 3.74 | (7.97) | 3.55 | 1.74 | 2.60 |
Total from investment operations | 3.63 | (8.06) | 3.49 | 1.68 | 2.51 |
Distributions from net realized gain | - | (.12) | (.39) | (.05) | - |
Net asset value, end of period | $ 16.55 | $ 12.92 | $ 21.10 | $ 18.00 | $ 16.37 |
Total Return A, B | 28.10% | (38.39)% | 19.37% | 10.28% | 18.11% |
Ratios to Average Net Assets D, F |
|
|
|
|
|
Expenses before reductions | 1.95% | 1.85% | 1.82% | 1.85% | 1.89% |
Expenses net of fee waivers, if any | 1.95% | 1.85% | 1.82% | 1.85% | 1.89% |
Expenses net of all reductions | 1.94% | 1.85% | 1.82% | 1.83% | 1.85% |
Net investment income (loss) | (.76)% | (.49)% | (.32)% | (.35)% | (.59)% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 1,799 | $ 1,355 | $ 1,879 | $ 1,596 | $ 1,006 |
Portfolio turnover rate E | 58% | 74% | 57% | 79% | 65% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 13.49 | $ 21.84 | $ 18.52 | $ 16.78 | $ 14.05 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .03 | .09 | .14 | .12 | .07 |
Net realized and unrealized gain (loss) | 3.93 | (8.30) | 3.67 | 1.79 | 2.66 |
Total from investment operations | 3.96 | (8.21) | 3.81 | 1.91 | 2.73 |
Distributions from net investment income | (.02) | (.02) | (.10) | (.09) | - |
Distributions from net realized gain | (.04) | (.12) | (.39) | (.08) | - |
Total distributions | (.06) | (.14) | (.49) | (.17) F | - |
Net asset value, end of period | $ 17.39 | $ 13.49 | $ 21.84 | $ 18.52 | $ 16.78 |
Total Return A | 29.37% | (37.76)% | 20.57% | 11.40% | 19.43% |
Ratios to Average Net Assets C, E |
|
|
|
|
|
Expenses before reductions | .96% | .86% | .81% | .83% | .84% |
Expenses net of fee waivers, if any | .96% | .86% | .81% | .83% | .84% |
Expenses net of all reductions | .95% | .85% | .81% | .82% | .79% |
Net investment income (loss) | .24% | .50% | .69% | .66% | .47% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 4,225 | $ 2,793 | $ 2,309 | $ 1,540 | $ 498 |
Portfolio turnover rate D | 58% | 74% | 57% | 79% | 65% |
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 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 reductions from 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.
F Total distributions of $.17 per share is comprised of distributions from net investment income of $.086 and distributions from net realized gain of $.083 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (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 Class A, Class T, Class B, Class C, and Institutional 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. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. 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 and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 16, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise,
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. 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 and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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. 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. 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 substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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 claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 short-term gain distributions from Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 2,289,678 |
|
Gross unrealized depreciation | (258,870) |
|
Net unrealized appreciation (depreciation) | $ 2,030,808 |
|
|
|
|
Tax Cost | $ 10,399,811 |
|
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $ 18,489 |
|
Capital loss carryforward | $ (1,550,171) |
|
Net unrealized appreciation (depreciation) | $ 2,030,823 |
|
The tax character of distributions paid was as follows:
| December 31, 2009 | December 31, 2008 |
Ordinary Income | $ 15,572 | $ 7,041 |
Long-term Capital Gains | - | 53,858 |
Total | $ 15,572 | $ 60,899 |
4. Operating Policies.
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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,501,020 and $5,170,633, 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 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 relative investment performance of the Institutional Class of the Fund, as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The performance adjustment took effect in September 2008. For the period, the total annual management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution | Service | Paid to | Retained |
Class A | -% | .25% | $ 8,153 | $ 444 |
Class T | .25% | .25% | 6,610 | 28 |
Class B | .75% | .25% | 3,378 | 2,544 |
Class C | .75% | .25% | 14,913 | 3,539 |
|
|
| $ 33,054 | $ 6,555 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,102 |
Class T | 196 |
Class B* | 784 |
Class C* | 252 |
| $ 2,334 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of |
Class A | $ 8,318 | .25 |
Class T | 3,435 | .26 |
Class B | 1,109 | .33 |
Class C | 3,933 | .26 |
Institutional Class | 8,703 | .27 |
| $ 25,498 |
|
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 $65 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $46 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
Annual Report
8. Security Lending - continued
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 $1,772.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class B | 2.00% | $ 50 |
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 $813 for the period. In addition, through arrangements with the Fund's custodian, 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 expenses by $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2009 | 2008 |
From net investment income |
|
|
Class A | $ - | $ 5 |
Institutional Class | 3,220 | 4,512 |
Total | $ 3,220 | $ 4,517 |
From net realized gain |
|
|
Class A | $ 2,465 | $ 15,552 |
Class T | - | 11,399 |
Class B | - | 2,709 |
Class C | - | 10,794 |
Institutional Class | 9,887 | 15,928 |
Total | $ 12,352 | $ 56,382 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Years ended December 31, | 2009 | 2008 | 2009 | 2008 |
Class A |
|
|
|
|
Shares sold | 104,375 | 119,010 | $ 1,494,493 | $ 2,140,557 |
Reinvestment of distributions | 270 | 733 | 4,650 | 14,197 |
Shares redeemed | (52,894) | (45,547) | (757,053) | (756,171) |
Net increase (decrease) | 51,751 | 74,196 | $ 742,090 | $ 1,398,583 |
Class T |
|
|
|
|
Shares sold | 21,310 | 23,040 | $ 301,368 | $ 407,661 |
Reinvestment of distributions | - | 555 | - | 10,694 |
Shares redeemed | (24,666) | (30,471) | (343,847) | (526,856) |
Net increase (decrease) | (3,356) | (6,876) | $ (42,479) | $ (108,501) |
Class B |
|
|
|
|
Shares sold | 5,587 | 6,574 | $ 75,985 | $ 114,734 |
Reinvestment of distributions | - | 121 | - | 2,270 |
Shares redeemed | (5,591) | (5,630) | (75,502) | (93,597) |
Net increase (decrease) | (4) | 1,065 | $ 483 | $ 23,407 |
Class C |
|
|
|
|
Shares sold | 26,780 | 39,154 | $ 366,996 | $ 680,481 |
Reinvestment of distributions | - | 427 | - | 8,052 |
Shares redeemed | (22,967) | (23,763) | (310,754) | (381,933) |
Net increase (decrease) | 3,813 | 15,818 | $ 56,242 | $ 306,600 |
Institutional Class |
|
|
|
|
Shares sold | 125,440 | 157,886 | $ 1,816,051 | $ 2,763,287 |
Reinvestment of distributions | 1,257 | 834 | 20,220 | 14,720 |
Shares redeemed | (90,870) | (57,341) | (1,268,930) | (954,716) |
Net increase (decrease) | 35,827 | 101,379 | $ 567,341 | $ 1,823,291 |
12. 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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Advisor New Insights Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor New Insights Fund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor New Insights Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 16, 2010
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 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 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 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (79) | |
| Year of Election or Appointment: 1984 Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; 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 and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (74) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* 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 (61) | |
| 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). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (56) | |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) | |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). 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 Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (65) | |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (65) | |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (70) | |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (60) | |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (59) | |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (65) | |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (40) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (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). |
Bruce T. Herring (44) | |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Brian B. Hogan (45) | |
| Year of Election or Appointment: 2009 Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager. |
Scott C. Goebel (41) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
William C. Coffey (40) | |
| Year of Election or Appointment: 2009 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments. |
Holly C. Laurent (55) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (62) | |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), 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), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc.(2005-present). |
Jeffrey S. Christian (48) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) | |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
John R. Hebble (51) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments. |
Paul M. Murphy (62) | |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (51) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor New Insights 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:
| Pay Date | Record Date | Capital Gains |
Institutional Class | 02/08/10 | 02/05/10 | $.03 |
The Institutional Class designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The Institutional 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 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Advisor New Insights Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Institutional Class (Class I) and Class B of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Institutional Class (Class I) and Class B show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Advisor New Insights Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Institutional Class (Class I) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.
The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.
The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Class A through May 31, 2009 and stated that it exceeded the fund's benchmark.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Annual Report
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Advisor New Insights Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for 2008 represents calculations for performance periods that differ from the periods shown in the performance charts above.
Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Annual Report
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
ANIFI-UANN-0210 1.796411.106
Fidelity®
Contrafund®
Annual Report
December 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the 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 can be tax advantages and cost benefits to consider as well. 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 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 "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 by 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, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total 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 December 31, 2009 | Past 1 | Past 5 | Past 10 |
Contrafund® | 29.23% | 4.75% | 3.17% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Contrafund®, a class of the fund, on December 31, 1999. 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
Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.
Comments from William Danoff, Portfolio Manager of Fidelity® Contrafund®: It was a relatively good year for the fund, whose Retail Class shares returned 29.23% for the 12-month period ending December 31, 2009, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed, as did our foreign holdings, which were bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.
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 (July 1, 2009 to December 31, 2009).
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. 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 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. 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
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Contrafund | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,222.90 | $ 5.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
Class K | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,223.50 | $ 4.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A | 6.3 | 5.0 |
Apple, Inc. | 5.1 | 3.9 |
Wells Fargo & Co. | 3.2 | 3.4 |
Berkshire Hathaway, Inc. Class A | 3.2 | 3.6 |
The Coca-Cola Co. | 2.4 | 2.4 |
McDonald's Corp. | 2.2 | 2.3 |
Visa, Inc. Class A | 2.2 | 1.7 |
The Walt Disney Co. | 1.7 | 1.5 |
Gilead Sciences, Inc. | 1.6 | 2.1 |
Noble Energy, Inc. | 1.5 | 1.5 |
| 29.4 | |
Top Five Market Sectors as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 30.3 | 26.2 |
Consumer Discretionary | 15.3 | 13.2 |
Health Care | 12.9 | 15.2 |
Financials | 12.4 | 12.3 |
Consumer Staples | 8.3 | 9.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2009* | As of June 30, 2009** | ||||||
![]() | Stocks 95.6% |
| ![]() | Stocks 92.7% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 0.1% |
| ![]() | Other Investments 0.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.3% |
| ** Foreign investments | 19.4% |
|
Annual Report
Investments December 31, 2009
Showing Percentage of Net Assets
Common Stocks - 95.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.2% | |||
Auto Components - 0.0% | |||
Autoliv, Inc. | 150,000 | $ 6,504 | |
Gentex Corp. | 336,100 | 5,999 | |
Johnson Controls, Inc. | 385,800 | 10,509 | |
| 23,012 | ||
Automobiles - 0.5% | |||
Dongfeng Motor Group Co. Ltd. (H Shares) | 31,332,000 | 44,739 | |
Geely Automobile Holdings Ltd. (c) | 261,045,000 | 142,471 | |
Honda Motor Co. Ltd. sponsored ADR | 1,704,244 | 57,774 | |
Toyota Motor Corp. | 1,741,600 | 73,463 | |
| 318,447 | ||
Diversified Consumer Services - 0.2% | |||
Brinks Home Security Holdings, Inc. (a) | 190,100 | 6,205 | |
MegaStudy Co. Ltd. | 30,000 | 6,149 | |
Strayer Education, Inc. (c) | 490,338 | 104,192 | |
| 116,546 | ||
Hotels, Restaurants & Leisure - 3.8% | |||
7 Days Group Holdings Ltd. ADR | 437,900 | 5,465 | |
Buffalo Wild Wings, Inc. (a) | 89,919 | 3,621 | |
Cafe de Coral Holdings Ltd. | 10,176,000 | 23,240 | |
Chipotle Mexican Grill, Inc. Class A (a) | 2,520,212 | 222,182 | |
Ctrip.com International Ltd. sponsored ADR (a) | 79,000 | 5,677 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 847,000 | 29,941 | |
Las Vegas Sands Corp. (a) | 678,000 | 10,129 | |
Little Sheep Group Ltd. | 18,723,000 | 10,366 | |
Marriott International, Inc. Class A | 1,090,900 | 29,727 | |
McDonald's Corp. | 22,200,670 | 1,386,210 | |
Panera Bread Co. Class A (a) | 463,800 | 31,061 | |
Sands China Ltd. | 20,000,000 | 24,133 | |
Sodexo SA | 779,544 | 44,491 | |
Starbucks Corp. (a) | 8,756,900 | 201,934 | |
Starwood Hotels & Resorts Worldwide, Inc. | 129,500 | 4,736 | |
Tim Hortons, Inc. (d) | 11,116,232 | 339,156 | |
WMS Industries, Inc. (a) | 1,312,128 | 52,485 | |
| 2,424,554 | ||
Household Durables - 0.1% | |||
Gafisa SA sponsored ADR (c) | 922,700 | 29,859 | |
iRobot Corp. (a) | 477,616 | 8,406 | |
| 38,265 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - 1.9% | |||
Amazon.com, Inc. (a) | 6,452,108 | $ 867,938 | |
Expedia, Inc. (a) | 1,548,500 | 39,812 | |
Liberty Media Corp. Interactive Series A (a) | 5,534,755 | 59,997 | |
NetFlix, Inc. (a) | 665,439 | 36,692 | |
Priceline.com, Inc. (a) | 878,200 | 191,887 | |
| 1,196,326 | ||
Media - 3.8% | |||
CKX, Inc. (a) | 1,781,993 | 9,391 | |
Comcast Corp. Class A | 2,351,200 | 39,641 | |
DIRECTV (a) | 13,897,109 | 463,469 | |
Discovery Communications, Inc. (a)(d) | 10,945,005 | 335,683 | |
DreamWorks Animation SKG, Inc. Class A (a) | 1,173,818 | 46,894 | |
Jupiter Telecommunications Co. | 9,394 | 9,300 | |
Liberty Media Corp.: | |||
Capital Series A (a) | 266,400 | 6,362 | |
Starz Series A (a) | 887,411 | 40,954 | |
Marvel Entertainment, Inc. (a) | 1,522,697 | 82,347 | |
Naspers Ltd. Class N | 1,919,700 | 77,721 | |
Net Servicos de Comunicacao SA sponsored ADR | 450,000 | 6,089 | |
Pearson PLC | 611,200 | 8,801 | |
Scripps Networks Interactive, Inc. Class A | 4,554,952 | 189,031 | |
The Walt Disney Co. | 34,258,406 | 1,104,834 | |
The Weinstein Co. Holdings, LLC Class A-1 (a)(h) | 41,234 | 15,463 | |
| 2,435,980 | ||
Multiline Retail - 0.6% | |||
99 Cents Only Stores (a) | 1,116,100 | 14,587 | |
Big Lots, Inc. (a) | 433,100 | 12,551 | |
Dollar General Corp. | 606,100 | 13,595 | |
Dollar Tree, Inc. (a) | 3,910,500 | 188,877 | |
Dollarama, Inc. | 896,150 | 19,063 | |
Dollarama, Inc. (a)(e) | 381,500 | 8,115 | |
Golden Eagle Retail Group Ltd. (H Shares) | 4,500,000 | 9,127 | |
Mothercare PLC | 472,679 | 5,210 | |
Next PLC | 1,323,300 | 44,548 | |
Parkson Retail Group Ltd. | 25,208,500 | 44,358 | |
PCD Stores Group Ltd. | 38,178,000 | 14,658 | |
| 374,689 | ||
Specialty Retail - 2.6% | |||
Advance Auto Parts, Inc. | 1,811,900 | 73,346 | |
Aeropostale, Inc. (a) | 1,632,100 | 55,573 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Bed Bath & Beyond, Inc. (a) | 857,100 | $ 33,110 | |
Belle International Holdings Ltd. | 23,500,000 | 27,223 | |
Best Buy Co., Inc. | 1,861,300 | 73,447 | |
Chico's FAS, Inc. (a) | 413,200 | 5,805 | |
Gymboree Corp. (a) | 579,900 | 25,220 | |
Hengdeli Holdings Ltd. | 15,816,000 | 5,972 | |
Inditex SA | 1,069,880 | 66,460 | |
J. Crew Group, Inc. (a)(c)(d) | 6,324,653 | 282,965 | |
Lumber Liquidators, Inc. (a)(c) | 1,066,248 | 28,575 | |
O'Reilly Automotive, Inc. (a) | 681,400 | 25,975 | |
RadioShack Corp. | 1,664,300 | 32,454 | |
Ross Stores, Inc. | 3,067,333 | 131,006 | |
Rue21, Inc. | 108,700 | 3,053 | |
Staples, Inc. | 2,543,000 | 62,532 | |
TJX Companies, Inc. | 17,665,462 | 645,673 | |
Urban Outfitters, Inc. (a) | 3,359,100 | 117,535 | |
Vitamin Shoppe, Inc. | 220,200 | 4,897 | |
| 1,700,821 | ||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Burberry Group PLC | 2,239,800 | 21,683 | |
China Dongxiang Group Co. Ltd. | 26,855,000 | 20,720 | |
Coach, Inc. | 2,947,351 | 107,667 | |
Li Ning Co. Ltd. | 10,295,500 | 39,037 | |
NIKE, Inc. Class B | 12,738,600 | 841,639 | |
Phillips-Van Heusen Corp. | 135,000 | 5,492 | |
Polo Ralph Lauren Corp. Class A | 1,016,900 | 82,349 | |
Shenzhou International Group Holdings Ltd. | 3,008,000 | 3,917 | |
| 1,122,504 | ||
TOTAL CONSUMER DISCRETIONARY | 9,751,144 | ||
CONSUMER STAPLES - 8.3% | |||
Beverages - 2.7% | |||
Anheuser-Busch InBev SA NV | 1,056,648 | 55,057 | |
C&C Group PLC | 1,901,079 | 8,192 | |
Coca-Cola FEMSA SAB de CV sponsored ADR | 187,300 | 12,309 | |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 170,000 | 17,185 | |
Diageo PLC sponsored ADR | 427,867 | 29,698 | |
Dr Pepper Snapple Group, Inc. | 224,300 | 6,348 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
Fomento Economico Mexicano SAB de CV sponsored ADR | 275,000 | $ 13,167 | |
The Coca-Cola Co. | 26,733,591 | 1,523,815 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 10,990,000 | 60,788 | |
| 1,726,559 | ||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 2,162,823 | 127,974 | |
Susser Holdings Corp. (a) | 505,262 | 4,340 | |
Tesco PLC | 41,279,876 | 285,538 | |
Wal-Mart Stores, Inc. | 1,045,400 | 55,877 | |
Wm Morrison Supermarkets PLC | 6,649,801 | 29,812 | |
| 503,541 | ||
Food Products - 1.8% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 10,656,000 | 8,740 | |
Brasil Foods SA sponsored ADR (c) | 235,000 | 12,307 | |
Cadbury PLC | 5,942,500 | 76,592 | |
Campbell Soup Co. | 351,200 | 11,871 | |
Danone | 943,247 | 57,838 | |
General Mills, Inc. | 3,706,700 | 262,471 | |
Kellogg Co. | 3,128,134 | 166,417 | |
Kraft Foods, Inc. Class A | 87,700 | 2,384 | |
Nestle SA (Reg.) | 5,259,404 | 254,983 | |
Ralcorp Holdings, Inc. (a) | 1,418,700 | 84,711 | |
Tingyi (Cayman Island) Holding Corp. | 18,320,000 | 45,331 | |
TreeHouse Foods, Inc. (a)(d) | 3,158,796 | 122,751 | |
Want Want China Holdings Ltd. | 106,423,000 | 74,316 | |
| 1,180,712 | ||
Household Products - 2.8% | |||
Colgate-Palmolive Co. | 10,436,811 | 857,384 | |
Hypermarcas SA (a) | 1,422,800 | 32,121 | |
Mcbride PLC | 1,845,500 | 6,311 | |
Procter & Gamble Co. | 14,237,519 | 863,221 | |
| 1,759,037 | ||
Personal Products - 0.2% | |||
BaWang International (Group) Holding Ltd. | 48,540,000 | 33,611 | |
Estee Lauder Companies, Inc. Class A | 274,500 | 13,275 | |
Hengan International Group Co. Ltd. | 5,115,000 | 37,871 | |
Mead Johnson Nutrition Co. Class A | 10,207 | 446 | |
NBTY, Inc. (a) | 289,500 | 12,605 | |
| 97,808 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.0% | |||
Philip Morris International, Inc. | 526,000 | $ 25,348 | |
TOTAL CONSUMER STAPLES | 5,293,005 | ||
ENERGY - 7.5% | |||
Energy Equipment & Services - 1.0% | |||
National Oilwell Varco, Inc. | 121,700 | 5,366 | |
Schlumberger Ltd. | 10,085,700 | 656,478 | |
Seadrill Ltd. (c) | 486,200 | 12,415 | |
| 674,259 | ||
Oil, Gas & Consumable Fuels - 6.5% | |||
Anadarko Petroleum Corp. | 4,051,500 | 252,895 | |
Apache Corp. | 590,700 | 60,943 | |
Arena Resources, Inc. (a) | 440,000 | 18,973 | |
BG Group PLC | 1,655,629 | 30,022 | |
Birchcliff Energy Ltd. (a)(d) | 9,341,900 | 84,025 | |
BP PLC sponsored ADR | 104,300 | 6,046 | |
Canadian Natural Resources Ltd. | 3,382,806 | 244,699 | |
Cenovus Energy, Inc. | 6,936,648 | 174,959 | |
Chesapeake Energy Corp. | 657,483 | 17,016 | |
Clean Energy Fuels Corp. (a) | 1,351,700 | 20,830 | |
CNPC (Hong Kong) Ltd. | 24,700,000 | 32,572 | |
Concho Resources, Inc. (a) | 2,315,939 | 103,986 | |
Crescent Point Energy Corp. (c) | 1,981,700 | 74,485 | |
EnCana Corp. | 6,936,648 | 225,203 | |
EOG Resources, Inc. | 2,856,557 | 277,943 | |
EXCO Resources, Inc. | 325,000 | 6,900 | |
Exxon Mobil Corp. | 4,538,737 | 309,496 | |
InterOil Corp. (a) | 213,600 | 16,407 | |
Ivanhoe Energy, Inc. (a)(c) | 12,036,400 | 33,910 | |
Newfield Exploration Co. (a) | 120,000 | 5,788 | |
Niko Resources Ltd. | 148,000 | 13,861 | |
Noble Energy, Inc. (d) | 13,433,836 | 956,758 | |
Northern Oil & Gas, Inc. (a)(d) | 3,786,862 | 44,836 | |
Occidental Petroleum Corp. | 6,462,541 | 525,728 | |
Pacific Rubiales Energy Corp. (a)(c) | 430,100 | 6,325 | |
PetroBakken Energy Ltd. Class A | 1,809,967 | 55,695 | |
Petrobank Energy & Resources Ltd. (a) | 833,300 | 40,616 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 309,100 | 14,738 | |
Petroplus Holdings AG | 3,252,600 | 59,778 | |
Range Resources Corp. | 3,548,500 | 176,893 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Reliance Industries Ltd. | 1,116,672 | $ 26,240 | |
Southwestern Energy Co. (a) | 3,678,467 | 177,302 | |
TransAtlantic Petroleum Ltd. (a)(e) | 6,578,651 | 22,541 | |
Ultra Petroleum Corp. (a) | 173,200 | 8,636 | |
Whiting Petroleum Corp. (a) | 183,700 | 13,125 | |
| 4,140,170 | ||
TOTAL ENERGY | 4,814,429 | ||
FINANCIALS - 12.3% | |||
Capital Markets - 1.2% | |||
AllianceBernstein Holding LP | 41,602 | 1,169 | |
BlackRock, Inc. Class A | 107,800 | 25,031 | |
Charles Schwab Corp. | 8,756,975 | 164,806 | |
Franklin Resources, Inc. | 1,208,100 | 127,273 | |
Goldman Sachs Group, Inc. | 1,560,209 | 263,426 | |
T. Rowe Price Group, Inc. | 3,201,400 | 170,475 | |
| 752,180 | ||
Commercial Banks - 4.4% | |||
Banco Bradesco SA (PN) sponsored ADR | 725,000 | 15,856 | |
Banco do Brasil SA | 3,604,400 | 60,590 | |
BOC Hong Kong Holdings Ltd. | 13,003,500 | 29,213 | |
China Citic Bank Corp. Ltd. Class H | 23,073,000 | 19,530 | |
China Merchants Bank Co. Ltd. (H Shares) | 2,500,000 | 6,505 | |
HDFC Bank Ltd. sponsored ADR (c) | 251,200 | 32,676 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 76,242,000 | 62,788 | |
Itau Unibanco Banco Multiplo SA ADR | 3,686,670 | 84,204 | |
M&T Bank Corp. (c) | 94,200 | 6,301 | |
Metro Bank PLC Class A (a)(d)(h)(i) | 1,089,000 | 13,200 | |
PT Bank Central Asia Tbk | 12,500,000 | 6,432 | |
Standard Chartered PLC (United Kingdom) | 13,617,375 | 346,622 | |
State Bank of India | 618,545 | 30,241 | |
Union Bank of India | 60,797 | 346 | |
Wells Fargo & Co. | 76,837,315 | 2,073,839 | |
| 2,788,343 | ||
Consumer Finance - 0.3% | |||
American Express Co. | 4,296,933 | 174,112 | |
Diversified Financial Services - 1.9% | |||
BM&F BOVESPA SA | 1,789,700 | 12,660 | |
Citigroup, Inc. | 49,684,000 | 164,454 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
CME Group, Inc. | 76,900 | $ 25,835 | |
Gimv NV | 100,000 | 5,230 | |
Hong Kong Exchange and Clearing Ltd. | 4,986,400 | 88,717 | |
IntercontinentalExchange, Inc. (a) | 553,500 | 62,158 | |
JPMorgan Chase & Co. | 20,876,029 | 869,904 | |
MSCI, Inc. Class A (a) | 380,800 | 12,109 | |
| 1,241,067 | ||
Insurance - 4.4% | |||
ACE Ltd. | 1,426,878 | 71,915 | |
Admiral Group PLC | 4,881,222 | 93,798 | |
Axis Capital Holdings Ltd. | 771,335 | 21,914 | |
Berkshire Hathaway, Inc. Class A (a) | 20,497 | 2,033,302 | |
China Life Insurance Co. Ltd. ADR (c) | 72,700 | 5,333 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 261,922 | 102,211 | |
The Chubb Corp. | 6,224,000 | 306,096 | |
The Travelers Companies, Inc. | 3,321,815 | 165,626 | |
| 2,800,195 | ||
Real Estate Investment Trusts - 0.0% | |||
Corporate Office Properties Trust (SBI) | 150,000 | 5,495 | |
Simon Property Group, Inc. | 180,520 | 14,405 | |
Starwood Property Trust, Inc. | 870,000 | 16,434 | |
| 36,334 | ||
Real Estate Management & Development - 0.1% | |||
China Overseas Land & Investment Ltd. | 4,770,000 | 9,994 | |
Swire Pacific Ltd. (A Shares) | 1,516,000 | 18,333 | |
Wharf Holdings Ltd. | 11,160,000 | 64,045 | |
| 92,372 | ||
TOTAL FINANCIALS | 7,884,603 | ||
HEALTH CARE - 12.9% | |||
Biotechnology - 3.1% | |||
Actelion Ltd. (Reg.) (a) | 1,641,314 | 87,499 | |
Alexion Pharmaceuticals, Inc. (a) | 907,396 | 44,299 | |
Allos Therapeutics, Inc. (a)(c) | 1,793,800 | 11,785 | |
Amgen, Inc. (a) | 538,000 | 30,435 | |
Celgene Corp. (a) | 4,594,904 | 255,844 | |
Gilead Sciences, Inc. (a) | 24,240,194 | 1,049,116 | |
Human Genome Sciences, Inc. (a) | 3,113,852 | 95,284 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
ImmunoGen, Inc. (a) | 1,444,803 | $ 11,356 | |
MannKind Corp. (a)(c)(d) | 6,093,322 | 53,378 | |
MannKind Corp. (a)(d) | 1,521,689 | 13,330 | |
MannKind Corp. warrants 8/3/10 (a)(h) | 304,338 | 360 | |
Medivation, Inc. (a)(d) | 3,180,235 | 119,736 | |
Micromet, Inc. (a) | 2,554,800 | 17,015 | |
OREXIGEN Therapeutics, Inc. (a) | 574,700 | 4,276 | |
Regeneron Pharmaceuticals, Inc. (a) | 895,131 | 21,644 | |
Seattle Genetics, Inc. (a) | 1,099,376 | 11,170 | |
Targacept, Inc. (a)(d) | 1,516,869 | 31,733 | |
United Therapeutics Corp. (a) | 611,920 | 32,218 | |
Vertex Pharmaceuticals, Inc. (a) | 2,541,900 | 108,920 | |
Zymogenetics, Inc. (a)(c) | 1,000,000 | 6,390 | |
| 2,005,788 | ||
Health Care Equipment & Supplies - 2.3% | |||
Alcon, Inc. | 1,576,200 | 259,048 | |
Baxter International, Inc. | 1,833,000 | 107,560 | |
Becton, Dickinson & Co. | 1,763,448 | 139,066 | |
C. R. Bard, Inc. | 1,028,740 | 80,139 | |
Covidien PLC | 8,757,908 | 419,416 | |
DENTSPLY International, Inc. | 3,602,285 | 126,692 | |
Edwards Lifesciences Corp. (a) | 1,961,807 | 170,383 | |
ev3, Inc. (a) | 1,928,500 | 25,726 | |
ICU Medical, Inc. (a) | 190,773 | 6,952 | |
Inverness Medical Innovations, Inc. (a) | 898,300 | 37,288 | |
Mindray Medical International Ltd. sponsored ADR (c) | 168,700 | 5,722 | |
NuVasive, Inc. (a)(c) | 1,705,093 | 54,529 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 12,424,000 | 41,404 | |
Thoratec Corp. (a) | 502,620 | 13,531 | |
| 1,487,456 | ||
Health Care Providers & Services - 1.5% | |||
Emergency Medical Services Corp. Class A (a) | 850,800 | 46,071 | |
Express Scripts, Inc. (a) | 2,517,600 | 217,647 | |
Henry Schein, Inc. (a) | 175,300 | 9,221 | |
HMS Holdings Corp. (a) | 430,400 | 20,956 | |
Medco Health Solutions, Inc. (a) | 10,661,487 | 681,376 | |
Sinopharm Group Co. Ltd. Class H | 2,357,200 | 8,283 | |
| 983,554 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 1,946,702 | $ 160,486 | |
Quality Systems, Inc. (c)(d) | 1,964,985 | 123,381 | |
| 283,867 | ||
Life Sciences Tools & Services - 1.2% | |||
Fluidigm Corp. warrants 9/10/10 (a) | 1 | 0 | |
Illumina, Inc. (a) | 374,956 | 11,492 | |
Life Technologies Corp. (a) | 2,603,500 | 135,981 | |
Mettler-Toledo International, Inc. (a)(d) | 3,010,300 | 316,051 | |
QIAGEN NV (a) | 2,732,100 | 60,980 | |
Techne Corp. | 434,080 | 29,761 | |
Thermo Fisher Scientific, Inc. (a) | 170,800 | 8,145 | |
Waters Corp. (a) | 2,949,081 | 182,725 | |
| 745,135 | ||
Pharmaceuticals - 4.3% | |||
Abbott Laboratories | 17,249,783 | 931,316 | |
Allergan, Inc. | 952,600 | 60,023 | |
AstraZeneca PLC (United Kingdom) | 6,796,672 | 319,613 | |
Bristol-Myers Squibb Co. (c) | 3,420,732 | 86,373 | |
Dr. Reddy's Laboratories Ltd. sponsored ADR (c) | 772,900 | 18,712 | |
Forest Laboratories, Inc. (a) | 4,849,500 | 155,717 | |
Johnson & Johnson | 9,475,200 | 610,298 | |
MAP Pharmaceuticals, Inc. (a) | 361,874 | 3,449 | |
Merck & Co., Inc. | 657,150 | 24,012 | |
Novo Nordisk AS Series B | 2,461,736 | 157,231 | |
Optimer Pharmaceuticals, Inc. (a) | 659,976 | 7,445 | |
Salix Pharmaceuticals Ltd. (a) | 1,261,900 | 32,052 | |
Shionogi & Co. Ltd. | 640,000 | 13,883 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 4,545,700 | 255,377 | |
Valeant Pharmaceuticals International (a)(c) | 2,409,574 | 76,600 | |
| 2,752,101 | ||
TOTAL HEALTH CARE | 8,257,901 | ||
INDUSTRIALS - 3.1% | |||
Aerospace & Defense - 0.2% | |||
AeroVironment, Inc. (a) | 298,879 | 8,691 | |
DigitalGlobe, Inc. | 279,505 | 6,764 | |
GeoEye, Inc. (a) | 509,635 | 14,209 | |
Precision Castparts Corp. | 145,500 | 16,056 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Raytheon Co. | 105,800 | $ 5,451 | |
United Technologies Corp. | 1,008,500 | 70,000 | |
| 121,171 | ||
Air Freight & Logistics - 0.7% | |||
C.H. Robinson Worldwide, Inc. | 7,673,925 | 450,690 | |
Airlines - 0.1% | |||
Ryanair Holdings PLC sponsored ADR (a) | 401,966 | 10,781 | |
Southwest Airlines Co. | 1,748,000 | 19,980 | |
| 30,761 | ||
Building Products - 0.0% | |||
Armstrong World Industries, Inc. (a) | 650,900 | 25,340 | |
Commercial Services & Supplies - 0.1% | |||
Stericycle, Inc. (a) | 1,034,999 | 57,101 | |
Waste Connections, Inc. (a) | 189,000 | 6,301 | |
| 63,402 | ||
Construction & Engineering - 0.2% | |||
Jacobs Engineering Group, Inc. (a) | 2,663,172 | 100,162 | |
Electrical Equipment - 0.4% | |||
A123 Systems, Inc. | 234,200 | 5,255 | |
American Superconductor Corp. (a)(c) | 1,811,013 | 74,070 | |
China High Speed Transmission Equipment Group Co. Ltd. | 15,146,000 | 36,773 | |
Cooper Industries PLC Class A | 3,753,841 | 160,064 | |
Nexxus Lighting, Inc. (a) | 574,100 | 1,952 | |
| 278,114 | ||
Industrial Conglomerates - 0.1% | |||
Beijing Enterprises Holdings Ltd. | 3,563,500 | 25,809 | |
Carlisle Companies, Inc. | 163,000 | 5,584 | |
| 31,393 | ||
Machinery - 0.9% | |||
China Automation Group Ltd. | 29,036,000 | 23,686 | |
Danaher Corp. | 5,018,809 | 377,414 | |
Duoyuan Global Water, Inc. ADR (c) | 459,300 | 16,438 | |
Oshkosh Co. | 320,600 | 11,872 | |
PACCAR, Inc. | 2,668,441 | 96,784 | |
SmartHeat, Inc. (a)(c)(d) | 3,221,689 | 46,779 | |
| 572,973 | ||
Marine - 0.0% | |||
Kuehne & Nagel International AG | 65,000 | 6,309 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - 0.1% | |||
Robert Half International, Inc. | 1,325,900 | $ 35,441 | |
Verisk Analytics, Inc. | 1,082,900 | 32,790 | |
| 68,231 | ||
Road & Rail - 0.3% | |||
Canadian National Railway Co. | 2,639,100 | 144,031 | |
CSX Corp. | 386,400 | 18,737 | |
Dollar Thrifty Automotive Group, Inc. (a) | 329,932 | 8,450 | |
Knight Transportation, Inc. | 237,600 | 4,583 | |
Norfolk Southern Corp. | 125,000 | 6,553 | |
| 182,354 | ||
Trading Companies & Distributors - 0.0% | |||
Fastenal Co. (c) | 285,300 | 11,880 | |
W.W. Grainger, Inc. | 111,300 | 10,777 | |
| 22,657 | ||
TOTAL INDUSTRIALS | 1,953,557 | ||
INFORMATION TECHNOLOGY - 30.2% | |||
Communications Equipment - 2.2% | |||
Aruba Networks, Inc. (a) | 39,500 | 421 | |
BYD Electronic International Co. Ltd. (a) | 83,929,500 | 68,357 | |
Cisco Systems, Inc. (a) | 18,033,200 | 431,715 | |
F5 Networks, Inc. (a) | 1,650,479 | 87,442 | |
Juniper Networks, Inc. (a) | 821,600 | 21,912 | |
Motorola, Inc. | 2,691,900 | 20,889 | |
QUALCOMM, Inc. | 16,130,138 | 746,180 | |
ZTE Corp. (H Shares) | 184,400 | 1,134 | |
| 1,378,050 | ||
Computers & Peripherals - 6.8% | |||
Apple, Inc. (a) | 15,383,747 | 3,243,817 | |
Compellent Technologies, Inc. (a) | 896,200 | 20,326 | |
Dell, Inc. (a) | 1,280,500 | 18,388 | |
EMC Corp. (a) | 355,000 | 6,202 | |
Hewlett-Packard Co. | 16,853,649 | 868,131 | |
NetApp, Inc. (a) | 4,469,600 | 153,710 | |
Western Digital Corp. (a) | 838,200 | 37,007 | |
| 4,347,581 | ||
Electronic Equipment & Components - 1.4% | |||
Agilent Technologies, Inc. | 737,600 | 22,917 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Amphenol Corp. Class A (d) | 8,831,812 | $ 407,853 | |
BYD Co. Ltd. (H Shares) (a)(c) | 22,855,000 | 200,334 | |
Corning, Inc. | 894,900 | 17,281 | |
FLIR Systems, Inc. (a) | 5,574,108 | 182,385 | |
Itron, Inc. (a) | 100,000 | 6,757 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 471,100 | 12,402 | |
Samsung SDI Co. Ltd. | 50,000 | 6,368 | |
Tech Data Corp. (a) | 134,900 | 6,294 | |
Wasion Group Holdings Ltd. | 26,424,000 | 27,464 | |
| 890,055 | ||
Internet Software & Services - 8.1% | |||
AOL, Inc. (a) | 722,098 | 16,810 | |
Baidu.com, Inc. sponsored ADR (a) | 345,400 | 142,039 | |
Constant Contact, Inc. (a)(c)(d) | 1,477,546 | 23,641 | |
Google, Inc. Class A (a) | 6,450,176 | 3,998,969 | |
LogMeIn, Inc. | 531,200 | 10,597 | |
NetEase.com, Inc. sponsored ADR (a) | 4,754,700 | 178,824 | |
NHN Corp. (a) | 96,701 | 15,922 | |
Open Text Corp. (a) | 333,700 | 13,565 | |
Rackspace Hosting, Inc. (a) | 592,200 | 12,347 | |
SkillSoft PLC sponsored ADR (a) | 574,700 | 6,023 | |
Sohu.com, Inc. (a)(c) | 1,523,500 | 87,266 | |
Tencent Holdings Ltd. | 24,832,200 | 537,043 | |
VistaPrint Ltd. (a) | 1,682,312 | 95,320 | |
WebMD Health Corp. Class A (a) | 1,230,204 | 47,351 | |
| 5,185,717 | ||
IT Services - 3.8% | |||
Accenture PLC Class A | 10,235,100 | 424,757 | |
Cognizant Technology Solutions Corp. Class A (a) | 2,280,200 | 103,293 | |
Echo Global Logistics, Inc. | 154,300 | 1,958 | |
Fidelity National Information Services, Inc. | 6,053,175 | 141,886 | |
Fiserv, Inc. (a) | 270,000 | 13,090 | |
Global Payments, Inc. | 193,600 | 10,427 | |
Hewitt Associates, Inc. Class A (a) | 2,049,000 | 86,591 | |
Infosys Technologies Ltd. sponsored ADR | 85,490 | 4,725 | |
MasterCard, Inc. Class A | 927,438 | 237,406 | |
Redecard SA | 2,248,300 | 36,904 | |
The Western Union Co. | 725,768 | 13,681 | |
VeriFone Holdings, Inc. (a) | 57,500 | 942 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Visa, Inc. Class A | 15,810,793 | $ 1,382,812 | |
Wipro Ltd. sponsored ADR (c) | 294,100 | 6,550 | |
| 2,465,022 | ||
Semiconductors & Semiconductor Equipment - 3.1% | |||
Altera Corp. | 5,167,500 | 116,941 | |
Analog Devices, Inc. | 200,000 | 6,316 | |
ARM Holdings PLC sponsored ADR | 1,478,000 | 12,652 | |
ASML Holding NV (NY Shares) | 1,516,400 | 51,694 | |
Avago Technologies Ltd. | 1,402,277 | 25,648 | |
Broadcom Corp. Class A (a) | 4,987,100 | 156,844 | |
Cree, Inc. (a) | 2,889,500 | 162,881 | |
Intel Corp. | 3,854,750 | 78,637 | |
KLA-Tencor Corp. | 1,106,400 | 40,007 | |
Marvell Technology Group Ltd. (a) | 17,010,623 | 352,970 | |
MediaTek, Inc. | 302,000 | 5,268 | |
NVIDIA Corp. (a) | 13,919,856 | 260,023 | |
Samsung Electronics Co. Ltd. | 806,665 | 552,731 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 15,171,680 | 173,564 | |
| 1,996,176 | ||
Software - 4.8% | |||
Activision Blizzard, Inc. (a) | 20,222,064 | 224,667 | |
Adobe Systems, Inc. (a) | 4,965,508 | 182,631 | |
ANSYS, Inc. (a) | 878,133 | 38,164 | |
ArcSight, Inc. (a) | 465,000 | 11,895 | |
Ariba, Inc. (a) | 551,000 | 6,899 | |
AsiaInfo Holdings, Inc. (a)(d) | 2,703,000 | 82,360 | |
BMC Software, Inc. (a) | 5,434,747 | 217,933 | |
Check Point Software Technologies Ltd. (a) | 5,259,200 | 178,182 | |
Citrix Systems, Inc. (a) | 3,405,300 | 141,695 | |
CommVault Systems, Inc. (a) | 518,781 | 12,290 | |
Fortinet, Inc. | 1,077,960 | 18,940 | |
Informatica Corp. (a) | 2,914,600 | 75,372 | |
Intuit, Inc. (a) | 201,800 | 6,197 | |
Kingdee International Software Group Co. Ltd. | 30,000,000 | 6,680 | |
Longtop Financial Technologies Ltd. ADR (a) | 875,000 | 32,393 | |
McAfee, Inc. (a)(d) | 10,149,935 | 411,783 | |
Oracle Corp. | 29,503,200 | 724,009 | |
Pegasystems, Inc. | 1,022,352 | 34,760 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 497,000 | 19,602 | |
Red Hat, Inc. (a) | 2,525,625 | 78,042 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Rovi Corp. (a) | 983,000 | $ 31,328 | |
Salesforce.com, Inc. (a) | 4,050,382 | 298,797 | |
Shanda Interactive Entertainment Ltd. sponsored ADR (a)(c) | 1,898,574 | 99,884 | |
SolarWinds, Inc. (c) | 1,689,400 | 38,873 | |
Solera Holdings, Inc. | 180,000 | 6,482 | |
Sourcefire, Inc. (a) | 644,275 | 17,234 | |
SuccessFactors, Inc. (a) | 879,444 | 14,581 | |
Sybase, Inc. (a) | 425,000 | 18,445 | |
TIBCO Software, Inc. (a) | 2,912,900 | 28,051 | |
VMware, Inc. Class A (a) | 276,700 | 11,727 | |
| 3,069,896 | ||
TOTAL INFORMATION TECHNOLOGY | 19,332,497 | ||
MATERIALS - 5.5% | |||
Chemicals - 0.5% | |||
Ecolab, Inc. | 4,600,563 | 205,093 | |
Huabao International Holdings Ltd. | 87,275,000 | 93,844 | |
Lubrizol Corp. | 314,000 | 22,906 | |
Valspar Corp. | 211,100 | 5,729 | |
| 327,572 | ||
Containers & Packaging - 0.1% | |||
Owens-Illinois, Inc. (a) | 143,300 | 4,710 | |
Rock-Tenn Co. Class A | 692,400 | 34,904 | |
Temple-Inland, Inc. | 1,567,900 | 33,098 | |
| 72,712 | ||
Metals & Mining - 4.9% | |||
Alamos Gold, Inc. (a) | 528,700 | 6,320 | |
AngloGold Ashanti Ltd. sponsored ADR | 3,037,300 | 122,039 | |
B2Gold Corp. (a) | 7,685,137 | 8,851 | |
B2Gold Corp. (a)(e) | 5,000,000 | 5,758 | |
BHP Billiton Ltd. sponsored ADR (c) | 773,800 | 59,258 | |
Eldorado Gold Corp. (a) | 21,278,488 | 302,170 | |
First Quantum Minerals Ltd. | 273,500 | 20,893 | |
Franco-Nevada Corp. (d) | 7,617,200 | 203,725 | |
Franco-Nevada Corp. (d)(e) | 695,100 | 18,591 | |
Franco-Nevada Corp. warrants 6/16/17 (a)(e) | 347,550 | 2,183 | |
Goldcorp, Inc. | 14,950,983 | 588,420 | |
Ivanhoe Mines Ltd. (a)(d) | 23,010,600 | 339,689 | |
Kinross Gold Corp. | 21,611,879 | 398,441 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Newcrest Mining Ltd. | 13,050,620 | $ 414,164 | |
Randgold Resources Ltd. sponsored ADR | 4,559,746 | 360,767 | |
Red Back Mining, Inc. (a)(d) | 14,077,500 | 200,983 | |
Red Back Mining, Inc. (a)(d)(e) | 592,400 | 8,458 | |
Vale SA sponsored ADR | 1,207,700 | 35,060 | |
Ventana Gold Corp. (a) | 836,400 | 6,416 | |
| 3,102,186 | ||
TOTAL MATERIALS | 3,502,470 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.2% | |||
AboveNet, Inc. (a) | 463,857 | 30,169 | |
Clearwire Corp.: | |||
rights 6/21/10 (a) | 1,924,176 | 770 | |
Class A (a) | 1,924,176 | 13,007 | |
Iliad Group SA | 48,853 | 5,841 | |
Nippon Telegraph & Telephone Corp. | 900,000 | 35,570 | |
Telmex Internacional SAB de CV Series L ADR (c) | 793,700 | 14,088 | |
| 99,445 | ||
Wireless Telecommunication Services - 0.3% | |||
American Tower Corp. Class A (a) | 1,384,100 | 59,807 | |
MTN Group Ltd. | 1,512,700 | 24,068 | |
NTT DoCoMo, Inc. | 16,763 | 23,404 | |
Sprint Nextel Corp. (a) | 3,269,800 | 11,967 | |
Vivo Participacoes SA sponsored ADR | 2,984,900 | 92,532 | |
| 211,778 | ||
TOTAL TELECOMMUNICATION SERVICES | 311,223 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
YTL Corp. Bhd | 24,945,630 | 53,184 | |
Water Utilities - 0.0% | |||
YTL Power International Bhd | 34,795 | 23 | |
TOTAL UTILITIES | 53,207 | ||
TOTAL COMMON STOCKS (Cost $45,894,804) | 61,154,036 | ||
Preferred Stocks - 0.1% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.1% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Ning, Inc. Series D 8.00% (a)(h) | 4,021,166 | $ 23,705 | |
HEALTH CARE - 0.0% | |||
Health Care Equipment & Supplies - 0.0% | |||
superDimension Ltd. (a)(h) | 698,064 | 8,028 | |
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 1,313,082 | 9,192 | |
TOTAL HEALTH CARE | 17,220 | ||
INFORMATION TECHNOLOGY - 0.1% | |||
Internet Software & Services - 0.0% | |||
Digg, Inc. Series C, 8.00% (a)(h) | 410,013 | 3,075 | |
Software - 0.1% | |||
Trion World Network, Inc. 8.00% (h) | 3,950,196 | 21,691 | |
TOTAL INFORMATION TECHNOLOGY | 24,766 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 65,691 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Slide, Inc. Series D (a)(h) | 6,861,467 | 8,508 | |
TOTAL PREFERRED STOCKS (Cost $118,998) | 74,199 |
Nonconvertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co.: | ||||
6.375% 2/1/29 | $ 3,995 | 2,936 | ||
6.625% 10/1/28 | 8,510 | 6,383 | ||
7.45% 7/16/31 | 12,765 | 11,281 | ||
| 20,600 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
FINANCIALS - 0.1% | ||||
Diversified Financial Services - 0.1% | ||||
Ford Holdings LLC 9.3% 3/1/30 | $ 36,585 | $ 33,658 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $24,502) | 54,258 | |||
Floating Rate Loans - 0.1% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Automobiles - 0.1% | ||||
Ford Motor Co. term loan 3.2871% 12/15/13 (f) (Cost $31,102) | 35,077 | 32,534 |
Money Market Funds - 5.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (g) | 2,805,286,254 | 2,805,286 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g) | 549,248,427 | 549,248 | |
TOTAL MONEY MARKET FUNDS (Cost $3,354,534) | 3,354,534 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $49,423,940) | 64,669,561 | ||
NET OTHER ASSETS - (1.1)% | (695,891) | ||
NET ASSETS - 100% | $ 63,973,670 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(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 $78,048,000 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) 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. |
(h) 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 $94,029,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Digg, Inc. Series C, 8.00% | 9/23/08 | $ 4,317 |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 8 |
Metro Bank PLC Class A | 12/8/09 | $ 13,307 |
Ning, Inc. Series D 8.00% | 3/19/08 | $ 28,751 |
Slide, Inc. Series D | 1/14/08 | $ 31,308 |
superDimension Ltd. | 2/27/08 - 5/22/08 | $ 14,960 |
The Weinstein Co. Holdings, LLC Class A-1 | 10/19/05 | $ 41,234 |
Trion World Network, Inc. 8.00% | 8/22/08 | $ 21,691 |
(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
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 | $ 16,568 |
Fidelity Securities Lending Cash Central Fund | 16,646 |
Total | $ 33,214 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
AeroVironment, Inc. | $ 32,478 | $ 49,226 | $ 50,048 | $ - | $ - |
Amphenol Corp. Class A | 223,614 | 37,744 | 57,211 | 561 | 407,853 |
AsiaInfo Holdings, Inc. | - | 47,447 | - | - | 82,360 |
Birchcliff Energy Ltd. | 19,257 | 21,373 | - | - | 84,025 |
Concur Technologies, Inc. | 90,527 | 5,280 | 71,612 | - | - |
Constant Contact, Inc. | 17,152 | 3,513 | - | - | 23,641 |
Discovery Communications, Inc. | 69,840 | 131,231 | - | - | 335,683 |
Energy Conversion Devices, Inc. | 72,211 | 1,298 | 48,244 | - | - |
FLIR Systems, Inc. | 297,262 | 11,195 | 104,064 | - | - |
Franco-Nevada Corp. | 131,383 | 52,094 | 30,242 | 1,811 | 222,316 |
Genoptix, Inc. | 35,524 | - | 28,636 | - | - |
ICU Medical, Inc. | - | 49,404 | 36,866 | - | - |
Ivanhoe Mines Ltd. | 53,776 | 26,912 | 11,180 | - | 339,689 |
J. Crew Group, Inc. | 76,063 | 3,333 | - | - | 282,965 |
Jacobs Engineering Group, Inc. | 298,433 | 92,559 | 240,267 | - | - |
MannKind Corp. | 26,331 | 3,354 | 5,618 | - | 66,708 |
McAfee, Inc. | 247,564 | 138,551 | 16,368 | - | 411,783 |
Medivation, Inc. | 24,497 | 36,591 | 5,448 | - | 119,736 |
Metro Bank PLC Class A | - | 13,307 | - | - | 13,200 |
Mettler-Toledo International, Inc. | 168,581 | 56,195 | 37,733 | - | 316,051 |
Neutral Tandem, Inc. | - | 60,142 | 59,102 | - | - |
Noble Energy, Inc. | 481,290 | 210,016 | 4,751 | 8,785 | 956,758 |
Northern Oil & Gas, Inc. | - | 35,448 | - | - | 44,836 |
P.F. Chang's China Bistro, Inc. | - | 32,855 | 37,668 | - | - |
Petroplus Holdings AG | 80,124 | 33,645 | 47,744 | 1,837 | - |
Quality Systems, Inc. | 70,825 | 19,276 | 5,160 | 2,293 | 123,381 |
Red Back Mining, Inc. | 137,858 | 37,936 | 66,994 | - | 209,441 |
Royal Gold, Inc. | 54,954 | 53,902 | 89,932 | 201 | - |
SmartHeat, Inc. | - | 36,658 | - | - | 46,779 |
Sohu.com, Inc. | 114,317 | 48,760 | 109,445 | - | - |
Strayer Education, Inc. | 137,366 | 71,414 | 95,774 | 1,564 | - |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Susser Holdings Corp. | $ 19,162 | $ - | $ 9,328 | $ - | $ - |
Targacept, Inc. | - | 18,641 | - | - | 31,733 |
Tim Hortons, Inc. | 304,929 | 15,553 | - | 3,716 | 339,156 |
TreeHouse Foods, Inc. | 85,000 | 1,457 | - | - | 122,751 |
Vivus, Inc. | 22,128 | 2,423 | 24,978 | - | - |
Warnaco Group, Inc. | 42,314 | 8,698 | 70,413 | - | - |
Total | $ 3,434,760 | $ 1,467,431 | $ 1,364,826 | $ 20,768 | $ 4,580,845 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 9,751,144 | $ 9,242,957 | $ 492,724 | $ 15,463 |
Consumer Staples | 5,293,005 | 5,032,348 | 260,657 | - |
Energy | 4,814,429 | 4,781,857 | 32,572 | - |
Financials | 7,908,308 | 7,572,278 | 299,125 | 36,905 |
Health Care | 8,275,121 | 7,874,358 | 383,543 | 17,220 |
Industrials | 1,953,557 | 1,867,289 | 86,268 | - |
Information Technology | 19,357,263 | 18,491,485 | 841,012 | 24,766 |
Materials | 3,502,470 | 3,408,626 | 93,844 | - |
Telecommunication Services | 319,731 | 252,249 | 58,974 | 8,508 |
Utilities | 53,207 | 53,207 | - | - |
Corporate Bonds | 54,258 | - | 54,258 | - |
Floating Rate Loans | 32,534 | - | 32,534 | - |
Money Market Funds | 3,354,534 | 3,354,534 | - | - |
Total Investments in Securities: | $ 64,669,561 | $ 61,931,188 | $ 2,635,511 | $ 102,862 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 327,739 |
Total Realized Gain (Loss) | (99,781) |
Total Unrealized Gain (Loss) | (31,026) |
Cost of Purchases | 13,719 |
Proceeds of Sales | (72,219) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (35,570) |
Ending Balance | $ 102,862 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009 | $ (10,111) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.7% |
Canada | 5.8% |
China | 2.6% |
United Kingdom | 2.1% |
Ireland | 1.5% |
Switzerland | 1.1% |
Netherlands Antilles | 1.0% |
Others (individually less than 1%) | 8.2% |
| 100.0% |
Income Tax Information |
At December 31, 2009, the fund had a capital loss carryforward of approximately $5,732,817,000 of which $2,830,501,000 and $2,902,316,000 will expire on December 31, 2016 and 2017, respectively. |
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) | December 31, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $531,860) - See accompanying schedule: Unaffiliated issuers (cost $42,650,689) | $ 56,734,182 |
|
Fidelity Central Funds (cost $3,354,534) | 3,354,534 |
|
Other affiliated issuers (cost $3,418,717) | 4,580,845 |
|
Total Investments (cost $49,423,940) |
| $ 64,669,561 |
Cash | 2,845 | |
Receivable for investments sold | 13,129 | |
Receivable for fund shares sold | 187,974 | |
Dividends receivable | 41,823 | |
Interest receivable | 1,902 | |
Distributions receivable from Fidelity Central Funds | 1,572 | |
Prepaid expenses | 261 | |
Other receivables | 2,666 | |
Total assets | 64,921,733 | |
|
|
|
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $ 226,973 | |
Delayed delivery | 13,200 | |
Payable for fund shares redeemed | 107,284 | |
Accrued management fee | 40,013 | |
Other affiliated payables | 9,420 | |
Other payables and accrued expenses | 1,925 | |
Collateral on securities loaned, at value | 549,248 | |
Total liabilities | 948,063 | |
|
|
|
Net Assets | $ 63,973,670 | |
Net Assets consist of: |
| |
Paid in capital | $ 55,286,657 | |
Undistributed net investment income | 5,435 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,564,153) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,245,731 | |
Net Assets | $ 63,973,670 | |
Contrafund: | $ 58.28 | |
|
|
|
Class K: | $ 58.25 |
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 December 31, 2009 | |
|
|
|
Investment Income |
|
|
Dividends (including $20,768 earned from other affiliated issuers) |
| $ 615,513 |
Interest |
| 3,749 |
Income from Fidelity Central Funds |
| 33,214 |
Total income |
| 652,476 |
|
|
|
Expenses | ||
Management fee | $ 298,405 | |
Performance adjustment | 117,515 | |
Transfer agent fees | 109,244 | |
Accounting and security lending fees | 2,686 | |
Custodian fees and expenses | 2,383 | |
Independent trustees' compensation | 370 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 507 | |
Audit | 291 | |
Legal | 269 | |
Miscellaneous | 1,176 | |
Total expenses before reductions | 532,847 | |
Expense reductions | (3,629) | 529,218 |
Net investment income (loss) | 123,258 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (258,814) | |
Other affiliated issuers | (211,219) |
|
Foreign currency transactions | (1,102) | |
Cap gain distributions from Fidelity Central Funds | 46 | |
Total net realized gain (loss) |
| (471,089) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 14,688,794 | |
Assets and liabilities in foreign currencies | (57) | |
Total change in net unrealized appreciation (depreciation) |
| 14,688,737 |
Net gain (loss) | 14,217,648 | |
Net increase (decrease) in net assets resulting from operations | $ 14,340,906 |
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 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 123,258 | $ 252,242 |
Net realized gain (loss) | (471,089) | (5,913,986) |
Change in net unrealized appreciation (depreciation) | 14,688,737 | (24,064,404) |
Net increase (decrease) in net assets resulting | 14,340,906 | (29,726,148) |
Distributions to shareholders from net investment income | (132,704) | (228,923) |
Distributions to shareholders from net realized gain | (92,816) | (717,940) |
Total distributions | (225,520) | (946,863) |
Share transactions - net increase (decrease) | 1,408,294 | (2,020,966) |
Total increase (decrease) in net assets | 15,523,680 | (32,693,977) |
|
|
|
Net Assets | ||
Beginning of period | 48,449,990 | 81,143,967 |
End of period (including undistributed net investment income of $5,435 and undistributed net investment income of $15,798, respectively) | $ 63,973,670 | $ 48,449,990 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Contrafund
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 45.26 | $ 73.11 | $ 65.21 | $ 64.76 | $ 56.74 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss)B | .11 | .23 | .48 | .41 | .27 |
Net realized and unrealized gain (loss) | 13.11 | (27.22) | 12.34 | 6.92 | 8.95 |
Total from investment operations | 13.22 | (26.99) | 12.82 | 7.33 | 9.22 |
Distributions from net investment income | (.11) | (.21) | (.44) | (.39) | (.23) |
Distributions from net realized gain | (.09) | (.65) | (4.48) | (6.49) | (.97) |
Total distributions | (.20) | (.86) | (4.92) | (6.88) | (1.20) |
Net asset value, end of period | $ 58.28 | $ 45.26 | $ 73.11 | $ 65.21 | $ 64.76 |
Total ReturnA | 29.23% | (37.16) % | 19.78% | 11.54% | 16.23% |
Ratios to Average Net AssetsC,E |
|
|
|
|
|
Expenses before reductions | 1.02% | .95% | .89% | .90% | .91% |
Expenses net of fee waivers, if any | 1.02% | .95% | .89% | .90% | .91% |
Expenses net of all reductions | 1.01% | .94% | .89% | .89% | .88% |
Net investment income (loss) | .22% | .37% | .68% | .62% | .46% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period | $ 57,225 | $ 45,149 | $ 81,144 | $ 68,576 | $ 60,143 |
Portfolio turnover rateD | 58% | 78% | 56% | 76% | 60% |
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 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class K
Years ended December 31, | 2009 | 2008G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 45.23 | $ 68.59 |
Income from Investment Operations |
|
|
Net investment income (loss)D | .19 | .22 |
Net realized and unrealized gain (loss) | 13.11 | (23.30) |
Total from investment operations | 13.30 | (23.08) |
Distributions from net investment income | (.20) | (.28) |
Distributions from net realized gain | (.09) | - |
Total distributions | (.28)I | (.28) |
Net asset value, end of period | $ 58.25 | $ 45.23 |
Total ReturnB,C | 29.43% | (33.63)% |
Ratios to Average Net AssetsE,H |
|
|
Expenses before reductions | .86% | .82%A |
Expenses net of fee waivers, if any | .86% | .82%A |
Expenses net of all reductions | .85% | .82%A |
Net investment income (loss) | .38% | .75%A |
Supplemental Data |
|
|
Net assets, end of period (in millions) | $ 6,749 | $ 3,301 |
Portfolio turnover rateF | 58% | 78% |
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 May 9, 2008 (commencement of sale of shares) to December 31, 2008.
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 reductions from 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 Total distributions of $.281 per share is comprised of distributions from net investment income of $.196 and distributions from net realized gain of $.085 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Contrafund (the Fund) is a fund of Fidelity Contrafund (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 Contrafund and Class K 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. After the commencement of Class K, the Fund began offering conversion privileges between Contrafund and Class K to eligible shareholders of Contrafund. 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. Certain expense reductions also differ by class.
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 held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 18, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Annual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. 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 and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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 the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 15,672,900 |
Gross unrealized depreciation | (1,032,100) |
Net unrealized appreciation (depreciation) | $ 14,640,800 |
|
|
Tax Cost | $ 50,028,761 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $ 94,278 |
Capital loss carryforward | $ (5,732,817) |
Net unrealized appreciation (depreciation) | $ 14,640,910 |
The tax character of distributions paid was as follows:
| December 31, 2009 | December 31, 2008 |
Ordinary Income | $ 225,520 | $ 228,923 |
Long-term Capital Gains | - | 717,940 |
Total | $ 225,520 | $ 946,863 |
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of
Annual Report
4. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $30,015,866 and $28,570,822, 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 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
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
the management fee is based on the relative investment performance of the retail class of the Fund, Contrafund, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Contrafund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Contrafund | $ 106,283 | .22 |
Class K | 2,961 | .06 |
| $ 109,244 |
|
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 $312 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $261 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
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 $16,646.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Contrafund's operating expenses. During the period, this reimbursement reduced the class' expenses by $20.
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 $3,601 for the period. In addition, through arrangements with the Fund's custodian, 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 expenses by $8.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2009 | 2008A |
From net investment income |
|
|
Contrafund | $ 110,638 | $ 208,629 |
Class K | 22,066 | 20,294 |
Total | $ 132,704 | $ 228,923 |
From net realized gain |
|
|
Contrafund | $ 83,038 | $ 717,940 |
Class K | 9,778 | - |
Total | $ 92,816 | $ 717,940 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
2009B | 2008A | 2009B | 2008A | |
Contrafund |
|
|
|
|
Shares sold | 185,518 | 153,230 | $ 8,936,796 | $ 9,211,642 |
Conversion to Class K | (28,838) | (71,716) | (1,280,867) | (3,520,561) |
Reinvestment of distributions | 3,386 | 15,647 | 188,452 | 906,942 |
Shares redeemed | (175,665) | (209,487) | (8,469,845) | (12,197,066) |
Net increase (decrease) | (15,599) | (112,326) | $ (625,464) | $ (5,599,043) |
Class K |
|
|
|
|
Shares sold | 33,635 | 3,604 | $ 1,711,298 | $ 167,149 |
Conversion from Contrafund | 28,843 | 71,676 | 1,280,867 | 3,520,561 |
Reinvestment of distributions | 566 | 462 | 31,844 | 20,294 |
Shares redeemed | (20,158) | (2,773) | (990,251) | (129,927) |
Net increase (decrease) | 42,886 | 72,969 | $ 2,033,758 | $ 3,578,077 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.
B Conversion transactions for Class K and Contrafund are for the period January 1, 2009 through August 31, 2009.
12. 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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Contrafund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Contrafund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Contrafund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 18, 2010
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 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 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 (79) | |
| Year of Election or Appointment: 1984 Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; 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 and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (74) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* 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 (61) | |
| 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). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (56) | |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) | |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). 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 Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (65) | |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (65) | |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (70) | |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (60) | |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (59) | |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (65) | |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (40) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (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). |
Bruce T. Herring (44) | |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Brian B. Hogan (45) | |
| Year of Election or Appointment: 2009 Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager. |
Scott C. Goebel (41) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
William C. Coffey (40) | |
| Year of Election or Appointment: 2009 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments. |
Holly C. Laurent (55) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (62) | |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), 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), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present). |
Jeffrey S. Christian (48) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) | |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
John R. Hebble (51) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments. |
Paul M. Murphy (62) | |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (51) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Contrafund voted to pay 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 |
Contrafund | 02/08/10 | 02/05/10 | $.01 | $.08 |
Contrafund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Contrafund 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 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Contrafund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for Fidelity Contrafund (retail class), as well as the fund's relative investment performance for Fidelity Contrafund (retail class) measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Contrafund (retail class) of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. (Class K of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Contrafund (retail class) of the fund. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.
Annual Report
Fidelity Contrafund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Contrafund (retail class) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Fidelity Contrafund (retail class) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark.
The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.
The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Fidelity Contrafund (retail class) through May 31, 2009 and stated that it exceeded the fund's benchmark.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.
Annual Report
Fidelity Contrafund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for each year represents calculations for performance periods that differ from the periods shown in the performance charts above.
Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each class ranked below its competitive median for the period.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
Annual Report
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc. Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
CON-UANN-0210 1.787729.106
Fidelity®
Contrafund®-
Class K
Annual Report
December 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
Board Approval of Investment Advisory Contracts and Management Fees |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the 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 can be tax advantages and cost benefits to consider as well. 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 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 "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 by 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, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total 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 December 31, 2009 | Past 1 | Past 5 | Past 10 |
Class KA | 29.43% | 4.80% | 3.20% |
A The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are
those of Contrafund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Contrafund® - Class K on December 31, 1999. 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. The initial offering of Class K took place on May 9, 2008. See above for additional information regarding the performance of Class K.
Annual Report
Management's Discussion of Fund Performance
Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.
Comments from William Danoff, Portfolio Manager of Fidelity® Contrafund®: It was a relatively good year for the fund, whose Class K shares returned 29.43% for the 12-month period ending December 31, 2009, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed, as did our foreign holdings, which were bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.
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 (July 1, 2009 to December 31, 2009).
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. 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 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. 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
| Annualized Expense Ratio | Beginning | Ending | Expenses Paid |
Contrafund | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,222.90 | $ 5.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
Class K | .85% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,223.50 | $ 4.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.92 | $ 4.33 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Google, Inc. Class A | 6.3 | 5.0 |
Apple, Inc. | 5.1 | 3.9 |
Wells Fargo & Co. | 3.2 | 3.4 |
Berkshire Hathaway, Inc. Class A | 3.2 | 3.6 |
The Coca-Cola Co. | 2.4 | 2.4 |
McDonald's Corp. | 2.2 | 2.3 |
Visa, Inc. Class A | 2.2 | 1.7 |
The Walt Disney Co. | 1.7 | 1.5 |
Gilead Sciences, Inc. | 1.6 | 2.1 |
Noble Energy, Inc. | 1.5 | 1.5 |
| 29.4 | |
Top Five Market Sectors as of December 31, 2009 | ||
| % of fund's | % of fund's net assets |
Information Technology | 30.3 | 26.2 |
Consumer Discretionary | 15.3 | 13.2 |
Health Care | 12.9 | 15.2 |
Financials | 12.4 | 12.3 |
Consumer Staples | 8.3 | 9.5 |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2009* | As of June 30, 2009** | ||||||
![]() | Stocks 95.6% |
| ![]() | Stocks 92.7% |
| ||
![]() | Bonds 0.1% |
| ![]() | Bonds 0.1% |
| ||
![]() | Convertible |
| ![]() | Convertible |
| ||
![]() | Other Investments 0.1% |
| ![]() | Other Investments 0.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
| ||
* Foreign investments | 22.3% |
| ** Foreign investments | 19.4% |
|
Annual Report
Investments December 31, 2009
Showing Percentage of Net Assets
Common Stocks - 95.6% | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - 15.2% | |||
Auto Components - 0.0% | |||
Autoliv, Inc. | 150,000 | $ 6,504 | |
Gentex Corp. | 336,100 | 5,999 | |
Johnson Controls, Inc. | 385,800 | 10,509 | |
| 23,012 | ||
Automobiles - 0.5% | |||
Dongfeng Motor Group Co. Ltd. (H Shares) | 31,332,000 | 44,739 | |
Geely Automobile Holdings Ltd. (c) | 261,045,000 | 142,471 | |
Honda Motor Co. Ltd. sponsored ADR | 1,704,244 | 57,774 | |
Toyota Motor Corp. | 1,741,600 | 73,463 | |
| 318,447 | ||
Diversified Consumer Services - 0.2% | |||
Brinks Home Security Holdings, Inc. (a) | 190,100 | 6,205 | |
MegaStudy Co. Ltd. | 30,000 | 6,149 | |
Strayer Education, Inc. (c) | 490,338 | 104,192 | |
| 116,546 | ||
Hotels, Restaurants & Leisure - 3.8% | |||
7 Days Group Holdings Ltd. ADR | 437,900 | 5,465 | |
Buffalo Wild Wings, Inc. (a) | 89,919 | 3,621 | |
Cafe de Coral Holdings Ltd. | 10,176,000 | 23,240 | |
Chipotle Mexican Grill, Inc. Class A (a) | 2,520,212 | 222,182 | |
Ctrip.com International Ltd. sponsored ADR (a) | 79,000 | 5,677 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 847,000 | 29,941 | |
Las Vegas Sands Corp. (a) | 678,000 | 10,129 | |
Little Sheep Group Ltd. | 18,723,000 | 10,366 | |
Marriott International, Inc. Class A | 1,090,900 | 29,727 | |
McDonald's Corp. | 22,200,670 | 1,386,210 | |
Panera Bread Co. Class A (a) | 463,800 | 31,061 | |
Sands China Ltd. | 20,000,000 | 24,133 | |
Sodexo SA | 779,544 | 44,491 | |
Starbucks Corp. (a) | 8,756,900 | 201,934 | |
Starwood Hotels & Resorts Worldwide, Inc. | 129,500 | 4,736 | |
Tim Hortons, Inc. (d) | 11,116,232 | 339,156 | |
WMS Industries, Inc. (a) | 1,312,128 | 52,485 | |
| 2,424,554 | ||
Household Durables - 0.1% | |||
Gafisa SA sponsored ADR (c) | 922,700 | 29,859 | |
iRobot Corp. (a) | 477,616 | 8,406 | |
| 38,265 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - 1.9% | |||
Amazon.com, Inc. (a) | 6,452,108 | $ 867,938 | |
Expedia, Inc. (a) | 1,548,500 | 39,812 | |
Liberty Media Corp. Interactive Series A (a) | 5,534,755 | 59,997 | |
NetFlix, Inc. (a) | 665,439 | 36,692 | |
Priceline.com, Inc. (a) | 878,200 | 191,887 | |
| 1,196,326 | ||
Media - 3.8% | |||
CKX, Inc. (a) | 1,781,993 | 9,391 | |
Comcast Corp. Class A | 2,351,200 | 39,641 | |
DIRECTV (a) | 13,897,109 | 463,469 | |
Discovery Communications, Inc. (a)(d) | 10,945,005 | 335,683 | |
DreamWorks Animation SKG, Inc. Class A (a) | 1,173,818 | 46,894 | |
Jupiter Telecommunications Co. | 9,394 | 9,300 | |
Liberty Media Corp.: | |||
Capital Series A (a) | 266,400 | 6,362 | |
Starz Series A (a) | 887,411 | 40,954 | |
Marvel Entertainment, Inc. (a) | 1,522,697 | 82,347 | |
Naspers Ltd. Class N | 1,919,700 | 77,721 | |
Net Servicos de Comunicacao SA sponsored ADR | 450,000 | 6,089 | |
Pearson PLC | 611,200 | 8,801 | |
Scripps Networks Interactive, Inc. Class A | 4,554,952 | 189,031 | |
The Walt Disney Co. | 34,258,406 | 1,104,834 | |
The Weinstein Co. Holdings, LLC Class A-1 (a)(h) | 41,234 | 15,463 | |
| 2,435,980 | ||
Multiline Retail - 0.6% | |||
99 Cents Only Stores (a) | 1,116,100 | 14,587 | |
Big Lots, Inc. (a) | 433,100 | 12,551 | |
Dollar General Corp. | 606,100 | 13,595 | |
Dollar Tree, Inc. (a) | 3,910,500 | 188,877 | |
Dollarama, Inc. | 896,150 | 19,063 | |
Dollarama, Inc. (a)(e) | 381,500 | 8,115 | |
Golden Eagle Retail Group Ltd. (H Shares) | 4,500,000 | 9,127 | |
Mothercare PLC | 472,679 | 5,210 | |
Next PLC | 1,323,300 | 44,548 | |
Parkson Retail Group Ltd. | 25,208,500 | 44,358 | |
PCD Stores Group Ltd. | 38,178,000 | 14,658 | |
| 374,689 | ||
Specialty Retail - 2.6% | |||
Advance Auto Parts, Inc. | 1,811,900 | 73,346 | |
Aeropostale, Inc. (a) | 1,632,100 | 55,573 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Bed Bath & Beyond, Inc. (a) | 857,100 | $ 33,110 | |
Belle International Holdings Ltd. | 23,500,000 | 27,223 | |
Best Buy Co., Inc. | 1,861,300 | 73,447 | |
Chico's FAS, Inc. (a) | 413,200 | 5,805 | |
Gymboree Corp. (a) | 579,900 | 25,220 | |
Hengdeli Holdings Ltd. | 15,816,000 | 5,972 | |
Inditex SA | 1,069,880 | 66,460 | |
J. Crew Group, Inc. (a)(c)(d) | 6,324,653 | 282,965 | |
Lumber Liquidators, Inc. (a)(c) | 1,066,248 | 28,575 | |
O'Reilly Automotive, Inc. (a) | 681,400 | 25,975 | |
RadioShack Corp. | 1,664,300 | 32,454 | |
Ross Stores, Inc. | 3,067,333 | 131,006 | |
Rue21, Inc. | 108,700 | 3,053 | |
Staples, Inc. | 2,543,000 | 62,532 | |
TJX Companies, Inc. | 17,665,462 | 645,673 | |
Urban Outfitters, Inc. (a) | 3,359,100 | 117,535 | |
Vitamin Shoppe, Inc. | 220,200 | 4,897 | |
| 1,700,821 | ||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Burberry Group PLC | 2,239,800 | 21,683 | |
China Dongxiang Group Co. Ltd. | 26,855,000 | 20,720 | |
Coach, Inc. | 2,947,351 | 107,667 | |
Li Ning Co. Ltd. | 10,295,500 | 39,037 | |
NIKE, Inc. Class B | 12,738,600 | 841,639 | |
Phillips-Van Heusen Corp. | 135,000 | 5,492 | |
Polo Ralph Lauren Corp. Class A | 1,016,900 | 82,349 | |
Shenzhou International Group Holdings Ltd. | 3,008,000 | 3,917 | |
| 1,122,504 | ||
TOTAL CONSUMER DISCRETIONARY | 9,751,144 | ||
CONSUMER STAPLES - 8.3% | |||
Beverages - 2.7% | |||
Anheuser-Busch InBev SA NV | 1,056,648 | 55,057 | |
C&C Group PLC | 1,901,079 | 8,192 | |
Coca-Cola FEMSA SAB de CV sponsored ADR | 187,300 | 12,309 | |
Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR | 170,000 | 17,185 | |
Diageo PLC sponsored ADR | 427,867 | 29,698 | |
Dr Pepper Snapple Group, Inc. | 224,300 | 6,348 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Beverages - continued | |||
Fomento Economico Mexicano SAB de CV sponsored ADR | 275,000 | $ 13,167 | |
The Coca-Cola Co. | 26,733,591 | 1,523,815 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 10,990,000 | 60,788 | |
| 1,726,559 | ||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 2,162,823 | 127,974 | |
Susser Holdings Corp. (a) | 505,262 | 4,340 | |
Tesco PLC | 41,279,876 | 285,538 | |
Wal-Mart Stores, Inc. | 1,045,400 | 55,877 | |
Wm Morrison Supermarkets PLC | 6,649,801 | 29,812 | |
| 503,541 | ||
Food Products - 1.8% | |||
Ausnutria Dairy Hunan Co. Ltd. Class H | 10,656,000 | 8,740 | |
Brasil Foods SA sponsored ADR (c) | 235,000 | 12,307 | |
Cadbury PLC | 5,942,500 | 76,592 | |
Campbell Soup Co. | 351,200 | 11,871 | |
Danone | 943,247 | 57,838 | |
General Mills, Inc. | 3,706,700 | 262,471 | |
Kellogg Co. | 3,128,134 | 166,417 | |
Kraft Foods, Inc. Class A | 87,700 | 2,384 | |
Nestle SA (Reg.) | 5,259,404 | 254,983 | |
Ralcorp Holdings, Inc. (a) | 1,418,700 | 84,711 | |
Tingyi (Cayman Island) Holding Corp. | 18,320,000 | 45,331 | |
TreeHouse Foods, Inc. (a)(d) | 3,158,796 | 122,751 | |
Want Want China Holdings Ltd. | 106,423,000 | 74,316 | |
| 1,180,712 | ||
Household Products - 2.8% | |||
Colgate-Palmolive Co. | 10,436,811 | 857,384 | |
Hypermarcas SA (a) | 1,422,800 | 32,121 | |
Mcbride PLC | 1,845,500 | 6,311 | |
Procter & Gamble Co. | 14,237,519 | 863,221 | |
| 1,759,037 | ||
Personal Products - 0.2% | |||
BaWang International (Group) Holding Ltd. | 48,540,000 | 33,611 | |
Estee Lauder Companies, Inc. Class A | 274,500 | 13,275 | |
Hengan International Group Co. Ltd. | 5,115,000 | 37,871 | |
Mead Johnson Nutrition Co. Class A | 10,207 | 446 | |
NBTY, Inc. (a) | 289,500 | 12,605 | |
| 97,808 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
CONSUMER STAPLES - continued | |||
Tobacco - 0.0% | |||
Philip Morris International, Inc. | 526,000 | $ 25,348 | |
TOTAL CONSUMER STAPLES | 5,293,005 | ||
ENERGY - 7.5% | |||
Energy Equipment & Services - 1.0% | |||
National Oilwell Varco, Inc. | 121,700 | 5,366 | |
Schlumberger Ltd. | 10,085,700 | 656,478 | |
Seadrill Ltd. (c) | 486,200 | 12,415 | |
| 674,259 | ||
Oil, Gas & Consumable Fuels - 6.5% | |||
Anadarko Petroleum Corp. | 4,051,500 | 252,895 | |
Apache Corp. | 590,700 | 60,943 | |
Arena Resources, Inc. (a) | 440,000 | 18,973 | |
BG Group PLC | 1,655,629 | 30,022 | |
Birchcliff Energy Ltd. (a)(d) | 9,341,900 | 84,025 | |
BP PLC sponsored ADR | 104,300 | 6,046 | |
Canadian Natural Resources Ltd. | 3,382,806 | 244,699 | |
Cenovus Energy, Inc. | 6,936,648 | 174,959 | |
Chesapeake Energy Corp. | 657,483 | 17,016 | |
Clean Energy Fuels Corp. (a) | 1,351,700 | 20,830 | |
CNPC (Hong Kong) Ltd. | 24,700,000 | 32,572 | |
Concho Resources, Inc. (a) | 2,315,939 | 103,986 | |
Crescent Point Energy Corp. (c) | 1,981,700 | 74,485 | |
EnCana Corp. | 6,936,648 | 225,203 | |
EOG Resources, Inc. | 2,856,557 | 277,943 | |
EXCO Resources, Inc. | 325,000 | 6,900 | |
Exxon Mobil Corp. | 4,538,737 | 309,496 | |
InterOil Corp. (a) | 213,600 | 16,407 | |
Ivanhoe Energy, Inc. (a)(c) | 12,036,400 | 33,910 | |
Newfield Exploration Co. (a) | 120,000 | 5,788 | |
Niko Resources Ltd. | 148,000 | 13,861 | |
Noble Energy, Inc. (d) | 13,433,836 | 956,758 | |
Northern Oil & Gas, Inc. (a)(d) | 3,786,862 | 44,836 | |
Occidental Petroleum Corp. | 6,462,541 | 525,728 | |
Pacific Rubiales Energy Corp. (a)(c) | 430,100 | 6,325 | |
PetroBakken Energy Ltd. Class A | 1,809,967 | 55,695 | |
Petrobank Energy & Resources Ltd. (a) | 833,300 | 40,616 | |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 309,100 | 14,738 | |
Petroplus Holdings AG | 3,252,600 | 59,778 | |
Range Resources Corp. | 3,548,500 | 176,893 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Reliance Industries Ltd. | 1,116,672 | $ 26,240 | |
Southwestern Energy Co. (a) | 3,678,467 | 177,302 | |
TransAtlantic Petroleum Ltd. (a)(e) | 6,578,651 | 22,541 | |
Ultra Petroleum Corp. (a) | 173,200 | 8,636 | |
Whiting Petroleum Corp. (a) | 183,700 | 13,125 | |
| 4,140,170 | ||
TOTAL ENERGY | 4,814,429 | ||
FINANCIALS - 12.3% | |||
Capital Markets - 1.2% | |||
AllianceBernstein Holding LP | 41,602 | 1,169 | |
BlackRock, Inc. Class A | 107,800 | 25,031 | |
Charles Schwab Corp. | 8,756,975 | 164,806 | |
Franklin Resources, Inc. | 1,208,100 | 127,273 | |
Goldman Sachs Group, Inc. | 1,560,209 | 263,426 | |
T. Rowe Price Group, Inc. | 3,201,400 | 170,475 | |
| 752,180 | ||
Commercial Banks - 4.4% | |||
Banco Bradesco SA (PN) sponsored ADR | 725,000 | 15,856 | |
Banco do Brasil SA | 3,604,400 | 60,590 | |
BOC Hong Kong Holdings Ltd. | 13,003,500 | 29,213 | |
China Citic Bank Corp. Ltd. Class H | 23,073,000 | 19,530 | |
China Merchants Bank Co. Ltd. (H Shares) | 2,500,000 | 6,505 | |
HDFC Bank Ltd. sponsored ADR (c) | 251,200 | 32,676 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 76,242,000 | 62,788 | |
Itau Unibanco Banco Multiplo SA ADR | 3,686,670 | 84,204 | |
M&T Bank Corp. (c) | 94,200 | 6,301 | |
Metro Bank PLC Class A (a)(d)(h)(i) | 1,089,000 | 13,200 | |
PT Bank Central Asia Tbk | 12,500,000 | 6,432 | |
Standard Chartered PLC (United Kingdom) | 13,617,375 | 346,622 | |
State Bank of India | 618,545 | 30,241 | |
Union Bank of India | 60,797 | 346 | |
Wells Fargo & Co. | 76,837,315 | 2,073,839 | |
| 2,788,343 | ||
Consumer Finance - 0.3% | |||
American Express Co. | 4,296,933 | 174,112 | |
Diversified Financial Services - 1.9% | |||
BM&F BOVESPA SA | 1,789,700 | 12,660 | |
Citigroup, Inc. | 49,684,000 | 164,454 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
FINANCIALS - continued | |||
Diversified Financial Services - continued | |||
CME Group, Inc. | 76,900 | $ 25,835 | |
Gimv NV | 100,000 | 5,230 | |
Hong Kong Exchange and Clearing Ltd. | 4,986,400 | 88,717 | |
IntercontinentalExchange, Inc. (a) | 553,500 | 62,158 | |
JPMorgan Chase & Co. | 20,876,029 | 869,904 | |
MSCI, Inc. Class A (a) | 380,800 | 12,109 | |
| 1,241,067 | ||
Insurance - 4.4% | |||
ACE Ltd. | 1,426,878 | 71,915 | |
Admiral Group PLC | 4,881,222 | 93,798 | |
Axis Capital Holdings Ltd. | 771,335 | 21,914 | |
Berkshire Hathaway, Inc. Class A (a) | 20,497 | 2,033,302 | |
China Life Insurance Co. Ltd. ADR (c) | 72,700 | 5,333 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 261,922 | 102,211 | |
The Chubb Corp. | 6,224,000 | 306,096 | |
The Travelers Companies, Inc. | 3,321,815 | 165,626 | |
| 2,800,195 | ||
Real Estate Investment Trusts - 0.0% | |||
Corporate Office Properties Trust (SBI) | 150,000 | 5,495 | |
Simon Property Group, Inc. | 180,520 | 14,405 | |
Starwood Property Trust, Inc. | 870,000 | 16,434 | |
| 36,334 | ||
Real Estate Management & Development - 0.1% | |||
China Overseas Land & Investment Ltd. | 4,770,000 | 9,994 | |
Swire Pacific Ltd. (A Shares) | 1,516,000 | 18,333 | |
Wharf Holdings Ltd. | 11,160,000 | 64,045 | |
| 92,372 | ||
TOTAL FINANCIALS | 7,884,603 | ||
HEALTH CARE - 12.9% | |||
Biotechnology - 3.1% | |||
Actelion Ltd. (Reg.) (a) | 1,641,314 | 87,499 | |
Alexion Pharmaceuticals, Inc. (a) | 907,396 | 44,299 | |
Allos Therapeutics, Inc. (a)(c) | 1,793,800 | 11,785 | |
Amgen, Inc. (a) | 538,000 | 30,435 | |
Celgene Corp. (a) | 4,594,904 | 255,844 | |
Gilead Sciences, Inc. (a) | 24,240,194 | 1,049,116 | |
Human Genome Sciences, Inc. (a) | 3,113,852 | 95,284 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
ImmunoGen, Inc. (a) | 1,444,803 | $ 11,356 | |
MannKind Corp. (a)(c)(d) | 6,093,322 | 53,378 | |
MannKind Corp. (a)(d) | 1,521,689 | 13,330 | |
MannKind Corp. warrants 8/3/10 (a)(h) | 304,338 | 360 | |
Medivation, Inc. (a)(d) | 3,180,235 | 119,736 | |
Micromet, Inc. (a) | 2,554,800 | 17,015 | |
OREXIGEN Therapeutics, Inc. (a) | 574,700 | 4,276 | |
Regeneron Pharmaceuticals, Inc. (a) | 895,131 | 21,644 | |
Seattle Genetics, Inc. (a) | 1,099,376 | 11,170 | |
Targacept, Inc. (a)(d) | 1,516,869 | 31,733 | |
United Therapeutics Corp. (a) | 611,920 | 32,218 | |
Vertex Pharmaceuticals, Inc. (a) | 2,541,900 | 108,920 | |
Zymogenetics, Inc. (a)(c) | 1,000,000 | 6,390 | |
| 2,005,788 | ||
Health Care Equipment & Supplies - 2.3% | |||
Alcon, Inc. | 1,576,200 | 259,048 | |
Baxter International, Inc. | 1,833,000 | 107,560 | |
Becton, Dickinson & Co. | 1,763,448 | 139,066 | |
C. R. Bard, Inc. | 1,028,740 | 80,139 | |
Covidien PLC | 8,757,908 | 419,416 | |
DENTSPLY International, Inc. | 3,602,285 | 126,692 | |
Edwards Lifesciences Corp. (a) | 1,961,807 | 170,383 | |
ev3, Inc. (a) | 1,928,500 | 25,726 | |
ICU Medical, Inc. (a) | 190,773 | 6,952 | |
Inverness Medical Innovations, Inc. (a) | 898,300 | 37,288 | |
Mindray Medical International Ltd. sponsored ADR (c) | 168,700 | 5,722 | |
NuVasive, Inc. (a)(c) | 1,705,093 | 54,529 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 12,424,000 | 41,404 | |
Thoratec Corp. (a) | 502,620 | 13,531 | |
| 1,487,456 | ||
Health Care Providers & Services - 1.5% | |||
Emergency Medical Services Corp. Class A (a) | 850,800 | 46,071 | |
Express Scripts, Inc. (a) | 2,517,600 | 217,647 | |
Henry Schein, Inc. (a) | 175,300 | 9,221 | |
HMS Holdings Corp. (a) | 430,400 | 20,956 | |
Medco Health Solutions, Inc. (a) | 10,661,487 | 681,376 | |
Sinopharm Group Co. Ltd. Class H | 2,357,200 | 8,283 | |
| 983,554 | ||
Common Stocks - continued | |||
Shares | Value (000s) | ||
HEALTH CARE - continued | |||
Health Care Technology - 0.5% | |||
Cerner Corp. (a) | 1,946,702 | $ 160,486 | |
Quality Systems, Inc. (c)(d) | 1,964,985 | 123,381 | |
| 283,867 | ||
Life Sciences Tools & Services - 1.2% | |||
Fluidigm Corp. warrants 9/10/10 (a) | 1 | 0 | |
Illumina, Inc. (a) | 374,956 | 11,492 | |
Life Technologies Corp. (a) | 2,603,500 | 135,981 | |
Mettler-Toledo International, Inc. (a)(d) | 3,010,300 | 316,051 | |
QIAGEN NV (a) | 2,732,100 | 60,980 | |
Techne Corp. | 434,080 | 29,761 | |
Thermo Fisher Scientific, Inc. (a) | 170,800 | 8,145 | |
Waters Corp. (a) | 2,949,081 | 182,725 | |
| 745,135 | ||
Pharmaceuticals - 4.3% | |||
Abbott Laboratories | 17,249,783 | 931,316 | |
Allergan, Inc. | 952,600 | 60,023 | |
AstraZeneca PLC (United Kingdom) | 6,796,672 | 319,613 | |
Bristol-Myers Squibb Co. (c) | 3,420,732 | 86,373 | |
Dr. Reddy's Laboratories Ltd. sponsored ADR (c) | 772,900 | 18,712 | |
Forest Laboratories, Inc. (a) | 4,849,500 | 155,717 | |
Johnson & Johnson | 9,475,200 | 610,298 | |
MAP Pharmaceuticals, Inc. (a) | 361,874 | 3,449 | |
Merck & Co., Inc. | 657,150 | 24,012 | |
Novo Nordisk AS Series B | 2,461,736 | 157,231 | |
Optimer Pharmaceuticals, Inc. (a) | 659,976 | 7,445 | |
Salix Pharmaceuticals Ltd. (a) | 1,261,900 | 32,052 | |
Shionogi & Co. Ltd. | 640,000 | 13,883 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 4,545,700 | 255,377 | |
Valeant Pharmaceuticals International (a)(c) | 2,409,574 | 76,600 | |
| 2,752,101 | ||
TOTAL HEALTH CARE | 8,257,901 | ||
INDUSTRIALS - 3.1% | |||
Aerospace & Defense - 0.2% | |||
AeroVironment, Inc. (a) | 298,879 | 8,691 | |
DigitalGlobe, Inc. | 279,505 | 6,764 | |
GeoEye, Inc. (a) | 509,635 | 14,209 | |
Precision Castparts Corp. | 145,500 | 16,056 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Aerospace & Defense - continued | |||
Raytheon Co. | 105,800 | $ 5,451 | |
United Technologies Corp. | 1,008,500 | 70,000 | |
| 121,171 | ||
Air Freight & Logistics - 0.7% | |||
C.H. Robinson Worldwide, Inc. | 7,673,925 | 450,690 | |
Airlines - 0.1% | |||
Ryanair Holdings PLC sponsored ADR (a) | 401,966 | 10,781 | |
Southwest Airlines Co. | 1,748,000 | 19,980 | |
| 30,761 | ||
Building Products - 0.0% | |||
Armstrong World Industries, Inc. (a) | 650,900 | 25,340 | |
Commercial Services & Supplies - 0.1% | |||
Stericycle, Inc. (a) | 1,034,999 | 57,101 | |
Waste Connections, Inc. (a) | 189,000 | 6,301 | |
| 63,402 | ||
Construction & Engineering - 0.2% | |||
Jacobs Engineering Group, Inc. (a) | 2,663,172 | 100,162 | |
Electrical Equipment - 0.4% | |||
A123 Systems, Inc. | 234,200 | 5,255 | |
American Superconductor Corp. (a)(c) | 1,811,013 | 74,070 | |
China High Speed Transmission Equipment Group Co. Ltd. | 15,146,000 | 36,773 | |
Cooper Industries PLC Class A | 3,753,841 | 160,064 | |
Nexxus Lighting, Inc. (a) | 574,100 | 1,952 | |
| 278,114 | ||
Industrial Conglomerates - 0.1% | |||
Beijing Enterprises Holdings Ltd. | 3,563,500 | 25,809 | |
Carlisle Companies, Inc. | 163,000 | 5,584 | |
| 31,393 | ||
Machinery - 0.9% | |||
China Automation Group Ltd. | 29,036,000 | 23,686 | |
Danaher Corp. | 5,018,809 | 377,414 | |
Duoyuan Global Water, Inc. ADR (c) | 459,300 | 16,438 | |
Oshkosh Co. | 320,600 | 11,872 | |
PACCAR, Inc. | 2,668,441 | 96,784 | |
SmartHeat, Inc. (a)(c)(d) | 3,221,689 | 46,779 | |
| 572,973 | ||
Marine - 0.0% | |||
Kuehne & Nagel International AG | 65,000 | 6,309 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INDUSTRIALS - continued | |||
Professional Services - 0.1% | |||
Robert Half International, Inc. | 1,325,900 | $ 35,441 | |
Verisk Analytics, Inc. | 1,082,900 | 32,790 | |
| 68,231 | ||
Road & Rail - 0.3% | |||
Canadian National Railway Co. | 2,639,100 | 144,031 | |
CSX Corp. | 386,400 | 18,737 | |
Dollar Thrifty Automotive Group, Inc. (a) | 329,932 | 8,450 | |
Knight Transportation, Inc. | 237,600 | 4,583 | |
Norfolk Southern Corp. | 125,000 | 6,553 | |
| 182,354 | ||
Trading Companies & Distributors - 0.0% | |||
Fastenal Co. (c) | 285,300 | 11,880 | |
W.W. Grainger, Inc. | 111,300 | 10,777 | |
| 22,657 | ||
TOTAL INDUSTRIALS | 1,953,557 | ||
INFORMATION TECHNOLOGY - 30.2% | |||
Communications Equipment - 2.2% | |||
Aruba Networks, Inc. (a) | 39,500 | 421 | |
BYD Electronic International Co. Ltd. (a) | 83,929,500 | 68,357 | |
Cisco Systems, Inc. (a) | 18,033,200 | 431,715 | |
F5 Networks, Inc. (a) | 1,650,479 | 87,442 | |
Juniper Networks, Inc. (a) | 821,600 | 21,912 | |
Motorola, Inc. | 2,691,900 | 20,889 | |
QUALCOMM, Inc. | 16,130,138 | 746,180 | |
ZTE Corp. (H Shares) | 184,400 | 1,134 | |
| 1,378,050 | ||
Computers & Peripherals - 6.8% | |||
Apple, Inc. (a) | 15,383,747 | 3,243,817 | |
Compellent Technologies, Inc. (a) | 896,200 | 20,326 | |
Dell, Inc. (a) | 1,280,500 | 18,388 | |
EMC Corp. (a) | 355,000 | 6,202 | |
Hewlett-Packard Co. | 16,853,649 | 868,131 | |
NetApp, Inc. (a) | 4,469,600 | 153,710 | |
Western Digital Corp. (a) | 838,200 | 37,007 | |
| 4,347,581 | ||
Electronic Equipment & Components - 1.4% | |||
Agilent Technologies, Inc. | 737,600 | 22,917 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Components - continued | |||
Amphenol Corp. Class A (d) | 8,831,812 | $ 407,853 | |
BYD Co. Ltd. (H Shares) (a)(c) | 22,855,000 | 200,334 | |
Corning, Inc. | 894,900 | 17,281 | |
FLIR Systems, Inc. (a) | 5,574,108 | 182,385 | |
Itron, Inc. (a) | 100,000 | 6,757 | |
Prime View International Co. Ltd. sponsored GDR (a)(e) | 471,100 | 12,402 | |
Samsung SDI Co. Ltd. | 50,000 | 6,368 | |
Tech Data Corp. (a) | 134,900 | 6,294 | |
Wasion Group Holdings Ltd. | 26,424,000 | 27,464 | |
| 890,055 | ||
Internet Software & Services - 8.1% | |||
AOL, Inc. (a) | 722,098 | 16,810 | |
Baidu.com, Inc. sponsored ADR (a) | 345,400 | 142,039 | |
Constant Contact, Inc. (a)(c)(d) | 1,477,546 | 23,641 | |
Google, Inc. Class A (a) | 6,450,176 | 3,998,969 | |
LogMeIn, Inc. | 531,200 | 10,597 | |
NetEase.com, Inc. sponsored ADR (a) | 4,754,700 | 178,824 | |
NHN Corp. (a) | 96,701 | 15,922 | |
Open Text Corp. (a) | 333,700 | 13,565 | |
Rackspace Hosting, Inc. (a) | 592,200 | 12,347 | |
SkillSoft PLC sponsored ADR (a) | 574,700 | 6,023 | |
Sohu.com, Inc. (a)(c) | 1,523,500 | 87,266 | |
Tencent Holdings Ltd. | 24,832,200 | 537,043 | |
VistaPrint Ltd. (a) | 1,682,312 | 95,320 | |
WebMD Health Corp. Class A (a) | 1,230,204 | 47,351 | |
| 5,185,717 | ||
IT Services - 3.8% | |||
Accenture PLC Class A | 10,235,100 | 424,757 | |
Cognizant Technology Solutions Corp. Class A (a) | 2,280,200 | 103,293 | |
Echo Global Logistics, Inc. | 154,300 | 1,958 | |
Fidelity National Information Services, Inc. | 6,053,175 | 141,886 | |
Fiserv, Inc. (a) | 270,000 | 13,090 | |
Global Payments, Inc. | 193,600 | 10,427 | |
Hewitt Associates, Inc. Class A (a) | 2,049,000 | 86,591 | |
Infosys Technologies Ltd. sponsored ADR | 85,490 | 4,725 | |
MasterCard, Inc. Class A | 927,438 | 237,406 | |
Redecard SA | 2,248,300 | 36,904 | |
The Western Union Co. | 725,768 | 13,681 | |
VeriFone Holdings, Inc. (a) | 57,500 | 942 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
IT Services - continued | |||
Visa, Inc. Class A | 15,810,793 | $ 1,382,812 | |
Wipro Ltd. sponsored ADR (c) | 294,100 | 6,550 | |
| 2,465,022 | ||
Semiconductors & Semiconductor Equipment - 3.1% | |||
Altera Corp. | 5,167,500 | 116,941 | |
Analog Devices, Inc. | 200,000 | 6,316 | |
ARM Holdings PLC sponsored ADR | 1,478,000 | 12,652 | |
ASML Holding NV (NY Shares) | 1,516,400 | 51,694 | |
Avago Technologies Ltd. | 1,402,277 | 25,648 | |
Broadcom Corp. Class A (a) | 4,987,100 | 156,844 | |
Cree, Inc. (a) | 2,889,500 | 162,881 | |
Intel Corp. | 3,854,750 | 78,637 | |
KLA-Tencor Corp. | 1,106,400 | 40,007 | |
Marvell Technology Group Ltd. (a) | 17,010,623 | 352,970 | |
MediaTek, Inc. | 302,000 | 5,268 | |
NVIDIA Corp. (a) | 13,919,856 | 260,023 | |
Samsung Electronics Co. Ltd. | 806,665 | 552,731 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 15,171,680 | 173,564 | |
| 1,996,176 | ||
Software - 4.8% | |||
Activision Blizzard, Inc. (a) | 20,222,064 | 224,667 | |
Adobe Systems, Inc. (a) | 4,965,508 | 182,631 | |
ANSYS, Inc. (a) | 878,133 | 38,164 | |
ArcSight, Inc. (a) | 465,000 | 11,895 | |
Ariba, Inc. (a) | 551,000 | 6,899 | |
AsiaInfo Holdings, Inc. (a)(d) | 2,703,000 | 82,360 | |
BMC Software, Inc. (a) | 5,434,747 | 217,933 | |
Check Point Software Technologies Ltd. (a) | 5,259,200 | 178,182 | |
Citrix Systems, Inc. (a) | 3,405,300 | 141,695 | |
CommVault Systems, Inc. (a) | 518,781 | 12,290 | |
Fortinet, Inc. | 1,077,960 | 18,940 | |
Informatica Corp. (a) | 2,914,600 | 75,372 | |
Intuit, Inc. (a) | 201,800 | 6,197 | |
Kingdee International Software Group Co. Ltd. | 30,000,000 | 6,680 | |
Longtop Financial Technologies Ltd. ADR (a) | 875,000 | 32,393 | |
McAfee, Inc. (a)(d) | 10,149,935 | 411,783 | |
Oracle Corp. | 29,503,200 | 724,009 | |
Pegasystems, Inc. | 1,022,352 | 34,760 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 497,000 | 19,602 | |
Red Hat, Inc. (a) | 2,525,625 | 78,042 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Rovi Corp. (a) | 983,000 | $ 31,328 | |
Salesforce.com, Inc. (a) | 4,050,382 | 298,797 | |
Shanda Interactive Entertainment Ltd. sponsored ADR (a)(c) | 1,898,574 | 99,884 | |
SolarWinds, Inc. (c) | 1,689,400 | 38,873 | |
Solera Holdings, Inc. | 180,000 | 6,482 | |
Sourcefire, Inc. (a) | 644,275 | 17,234 | |
SuccessFactors, Inc. (a) | 879,444 | 14,581 | |
Sybase, Inc. (a) | 425,000 | 18,445 | |
TIBCO Software, Inc. (a) | 2,912,900 | 28,051 | |
VMware, Inc. Class A (a) | 276,700 | 11,727 | |
| 3,069,896 | ||
TOTAL INFORMATION TECHNOLOGY | 19,332,497 | ||
MATERIALS - 5.5% | |||
Chemicals - 0.5% | |||
Ecolab, Inc. | 4,600,563 | 205,093 | |
Huabao International Holdings Ltd. | 87,275,000 | 93,844 | |
Lubrizol Corp. | 314,000 | 22,906 | |
Valspar Corp. | 211,100 | 5,729 | |
| 327,572 | ||
Containers & Packaging - 0.1% | |||
Owens-Illinois, Inc. (a) | 143,300 | 4,710 | |
Rock-Tenn Co. Class A | 692,400 | 34,904 | |
Temple-Inland, Inc. | 1,567,900 | 33,098 | |
| 72,712 | ||
Metals & Mining - 4.9% | |||
Alamos Gold, Inc. (a) | 528,700 | 6,320 | |
AngloGold Ashanti Ltd. sponsored ADR | 3,037,300 | 122,039 | |
B2Gold Corp. (a) | 7,685,137 | 8,851 | |
B2Gold Corp. (a)(e) | 5,000,000 | 5,758 | |
BHP Billiton Ltd. sponsored ADR (c) | 773,800 | 59,258 | |
Eldorado Gold Corp. (a) | 21,278,488 | 302,170 | |
First Quantum Minerals Ltd. | 273,500 | 20,893 | |
Franco-Nevada Corp. (d) | 7,617,200 | 203,725 | |
Franco-Nevada Corp. (d)(e) | 695,100 | 18,591 | |
Franco-Nevada Corp. warrants 6/16/17 (a)(e) | 347,550 | 2,183 | |
Goldcorp, Inc. | 14,950,983 | 588,420 | |
Ivanhoe Mines Ltd. (a)(d) | 23,010,600 | 339,689 | |
Kinross Gold Corp. | 21,611,879 | 398,441 | |
Common Stocks - continued | |||
Shares | Value (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Newcrest Mining Ltd. | 13,050,620 | $ 414,164 | |
Randgold Resources Ltd. sponsored ADR | 4,559,746 | 360,767 | |
Red Back Mining, Inc. (a)(d) | 14,077,500 | 200,983 | |
Red Back Mining, Inc. (a)(d)(e) | 592,400 | 8,458 | |
Vale SA sponsored ADR | 1,207,700 | 35,060 | |
Ventana Gold Corp. (a) | 836,400 | 6,416 | |
| 3,102,186 | ||
TOTAL MATERIALS | 3,502,470 | ||
TELECOMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.2% | |||
AboveNet, Inc. (a) | 463,857 | 30,169 | |
Clearwire Corp.: | |||
rights 6/21/10 (a) | 1,924,176 | 770 | |
Class A (a) | 1,924,176 | 13,007 | |
Iliad Group SA | 48,853 | 5,841 | |
Nippon Telegraph & Telephone Corp. | 900,000 | 35,570 | |
Telmex Internacional SAB de CV Series L ADR (c) | 793,700 | 14,088 | |
| 99,445 | ||
Wireless Telecommunication Services - 0.3% | |||
American Tower Corp. Class A (a) | 1,384,100 | 59,807 | |
MTN Group Ltd. | 1,512,700 | 24,068 | |
NTT DoCoMo, Inc. | 16,763 | 23,404 | |
Sprint Nextel Corp. (a) | 3,269,800 | 11,967 | |
Vivo Participacoes SA sponsored ADR | 2,984,900 | 92,532 | |
| 211,778 | ||
TOTAL TELECOMMUNICATION SERVICES | 311,223 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
YTL Corp. Bhd | 24,945,630 | 53,184 | |
Water Utilities - 0.0% | |||
YTL Power International Bhd | 34,795 | 23 | |
TOTAL UTILITIES | 53,207 | ||
TOTAL COMMON STOCKS (Cost $45,894,804) | 61,154,036 | ||
Preferred Stocks - 0.1% | |||
Shares | Value (000s) | ||
Convertible Preferred Stocks - 0.1% | |||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Ning, Inc. Series D 8.00% (a)(h) | 4,021,166 | $ 23,705 | |
HEALTH CARE - 0.0% | |||
Health Care Equipment & Supplies - 0.0% | |||
superDimension Ltd. (a)(h) | 698,064 | 8,028 | |
Life Sciences Tools & Services - 0.0% | |||
Fluidigm Corp. (a) | 1,313,082 | 9,192 | |
TOTAL HEALTH CARE | 17,220 | ||
INFORMATION TECHNOLOGY - 0.1% | |||
Internet Software & Services - 0.0% | |||
Digg, Inc. Series C, 8.00% (a)(h) | 410,013 | 3,075 | |
Software - 0.1% | |||
Trion World Network, Inc. 8.00% (h) | 3,950,196 | 21,691 | |
TOTAL INFORMATION TECHNOLOGY | 24,766 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 65,691 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
TELECOMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Slide, Inc. Series D (a)(h) | 6,861,467 | 8,508 | |
TOTAL PREFERRED STOCKS (Cost $118,998) | 74,199 |
Nonconvertible Bonds - 0.1% | ||||
| Principal Amount (000s) |
| ||
CONSUMER DISCRETIONARY - 0.0% | ||||
Automobiles - 0.0% | ||||
Ford Motor Co.: | ||||
6.375% 2/1/29 | $ 3,995 | 2,936 | ||
6.625% 10/1/28 | 8,510 | 6,383 | ||
7.45% 7/16/31 | 12,765 | 11,281 | ||
| 20,600 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
FINANCIALS - 0.1% | ||||
Diversified Financial Services - 0.1% | ||||
Ford Holdings LLC 9.3% 3/1/30 | $ 36,585 | $ 33,658 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $24,502) | 54,258 | |||
Floating Rate Loans - 0.1% | ||||
| ||||
CONSUMER DISCRETIONARY - 0.1% | ||||
Automobiles - 0.1% | ||||
Ford Motor Co. term loan 3.2871% 12/15/13 (f) (Cost $31,102) | 35,077 | 32,534 |
Money Market Funds - 5.2% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.16% (g) | 2,805,286,254 | 2,805,286 | |
Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g) | 549,248,427 | 549,248 | |
TOTAL MONEY MARKET FUNDS (Cost $3,354,534) | 3,354,534 | ||
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $49,423,940) | 64,669,561 | ||
NET OTHER ASSETS - (1.1)% | (695,891) | ||
NET ASSETS - 100% | $ 63,973,670 |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Affiliated company |
(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 $78,048,000 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) 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. |
(h) 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 $94,029,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Digg, Inc. Series C, 8.00% | 9/23/08 | $ 4,317 |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 8 |
Metro Bank PLC Class A | 12/8/09 | $ 13,307 |
Ning, Inc. Series D 8.00% | 3/19/08 | $ 28,751 |
Slide, Inc. Series D | 1/14/08 | $ 31,308 |
superDimension Ltd. | 2/27/08 - 5/22/08 | $ 14,960 |
The Weinstein Co. Holdings, LLC Class A-1 | 10/19/05 | $ 41,234 |
Trion World Network, Inc. 8.00% | 8/22/08 | $ 21,691 |
(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
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 | $ 16,568 |
Fidelity Securities Lending Cash Central Fund | 16,646 |
Total | $ 33,214 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
AeroVironment, Inc. | $ 32,478 | $ 49,226 | $ 50,048 | $ - | $ - |
Amphenol Corp. Class A | 223,614 | 37,744 | 57,211 | 561 | 407,853 |
AsiaInfo Holdings, Inc. | - | 47,447 | - | - | 82,360 |
Birchcliff Energy Ltd. | 19,257 | 21,373 | - | - | 84,025 |
Concur Technologies, Inc. | 90,527 | 5,280 | 71,612 | - | - |
Constant Contact, Inc. | 17,152 | 3,513 | - | - | 23,641 |
Discovery Communications, Inc. | 69,840 | 131,231 | - | - | 335,683 |
Energy Conversion Devices, Inc. | 72,211 | 1,298 | 48,244 | - | - |
FLIR Systems, Inc. | 297,262 | 11,195 | 104,064 | - | - |
Franco-Nevada Corp. | 131,383 | 52,094 | 30,242 | 1,811 | 222,316 |
Genoptix, Inc. | 35,524 | - | 28,636 | - | - |
ICU Medical, Inc. | - | 49,404 | 36,866 | - | - |
Ivanhoe Mines Ltd. | 53,776 | 26,912 | 11,180 | - | 339,689 |
J. Crew Group, Inc. | 76,063 | 3,333 | - | - | 282,965 |
Jacobs Engineering Group, Inc. | 298,433 | 92,559 | 240,267 | - | - |
MannKind Corp. | 26,331 | 3,354 | 5,618 | - | 66,708 |
McAfee, Inc. | 247,564 | 138,551 | 16,368 | - | 411,783 |
Medivation, Inc. | 24,497 | 36,591 | 5,448 | - | 119,736 |
Metro Bank PLC Class A | - | 13,307 | - | - | 13,200 |
Mettler-Toledo International, Inc. | 168,581 | 56,195 | 37,733 | - | 316,051 |
Neutral Tandem, Inc. | - | 60,142 | 59,102 | - | - |
Noble Energy, Inc. | 481,290 | 210,016 | 4,751 | 8,785 | 956,758 |
Northern Oil & Gas, Inc. | - | 35,448 | - | - | 44,836 |
P.F. Chang's China Bistro, Inc. | - | 32,855 | 37,668 | - | - |
Petroplus Holdings AG | 80,124 | 33,645 | 47,744 | 1,837 | - |
Quality Systems, Inc. | 70,825 | 19,276 | 5,160 | 2,293 | 123,381 |
Red Back Mining, Inc. | 137,858 | 37,936 | 66,994 | - | 209,441 |
Royal Gold, Inc. | 54,954 | 53,902 | 89,932 | 201 | - |
SmartHeat, Inc. | - | 36,658 | - | - | 46,779 |
Sohu.com, Inc. | 114,317 | 48,760 | 109,445 | - | - |
Strayer Education, Inc. | 137,366 | 71,414 | 95,774 | 1,564 | - |
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, |
Susser Holdings Corp. | $ 19,162 | $ - | $ 9,328 | $ - | $ - |
Targacept, Inc. | - | 18,641 | - | - | 31,733 |
Tim Hortons, Inc. | 304,929 | 15,553 | - | 3,716 | 339,156 |
TreeHouse Foods, Inc. | 85,000 | 1,457 | - | - | 122,751 |
Vivus, Inc. | 22,128 | 2,423 | 24,978 | - | - |
Warnaco Group, Inc. | 42,314 | 8,698 | 70,413 | - | - |
Total | $ 3,434,760 | $ 1,467,431 | $ 1,364,826 | $ 20,768 | $ 4,580,845 |
Other Information |
The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $ 9,751,144 | $ 9,242,957 | $ 492,724 | $ 15,463 |
Consumer Staples | 5,293,005 | 5,032,348 | 260,657 | - |
Energy | 4,814,429 | 4,781,857 | 32,572 | - |
Financials | 7,908,308 | 7,572,278 | 299,125 | 36,905 |
Health Care | 8,275,121 | 7,874,358 | 383,543 | 17,220 |
Industrials | 1,953,557 | 1,867,289 | 86,268 | - |
Information Technology | 19,357,263 | 18,491,485 | 841,012 | 24,766 |
Materials | 3,502,470 | 3,408,626 | 93,844 | - |
Telecommunication Services | 319,731 | 252,249 | 58,974 | 8,508 |
Utilities | 53,207 | 53,207 | - | - |
Corporate Bonds | 54,258 | - | 54,258 | - |
Floating Rate Loans | 32,534 | - | 32,534 | - |
Money Market Funds | 3,354,534 | 3,354,534 | - | - |
Total Investments in Securities: | $ 64,669,561 | $ 61,931,188 | $ 2,635,511 | $ 102,862 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) |
|
Investments in Securities: | |
Beginning Balance | $ 327,739 |
Total Realized Gain (Loss) | (99,781) |
Total Unrealized Gain (Loss) | (31,026) |
Cost of Purchases | 13,719 |
Proceeds of Sales | (72,219) |
Amortization/Accretion | - |
Transfers in/out of Level 3 | (35,570) |
Ending Balance | $ 102,862 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009 | $ (10,111) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 77.7% |
Canada | 5.8% |
China | 2.6% |
United Kingdom | 2.1% |
Ireland | 1.5% |
Switzerland | 1.1% |
Netherlands Antilles | 1.0% |
Others (individually less than 1%) | 8.2% |
| 100.0% |
Income Tax Information |
At December 31, 2009, the fund had a capital loss carryforward of approximately $5,732,817,000 of which $2,830,501,000 and $2,902,316,000 will expire on December 31, 2016 and 2017, respectively. |
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) | December 31, 2009 | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $531,860) - See accompanying schedule: Unaffiliated issuers (cost $42,650,689) | $ 56,734,182 |
|
Fidelity Central Funds (cost $3,354,534) | 3,354,534 |
|
Other affiliated issuers (cost $3,418,717) | 4,580,845 |
|
Total Investments (cost $49,423,940) |
| $ 64,669,561 |
Cash | 2,845 | |
Receivable for investments sold | 13,129 | |
Receivable for fund shares sold | 187,974 | |
Dividends receivable | 41,823 | |
Interest receivable | 1,902 | |
Distributions receivable from Fidelity Central Funds | 1,572 | |
Prepaid expenses | 261 | |
Other receivables | 2,666 | |
Total assets | 64,921,733 | |
|
|
|
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $ 226,973 | |
Delayed delivery | 13,200 | |
Payable for fund shares redeemed | 107,284 | |
Accrued management fee | 40,013 | |
Other affiliated payables | 9,420 | |
Other payables and accrued expenses | 1,925 | |
Collateral on securities loaned, at value | 549,248 | |
Total liabilities | 948,063 | |
|
|
|
Net Assets | $ 63,973,670 | |
Net Assets consist of: |
| |
Paid in capital | $ 55,286,657 | |
Undistributed net investment income | 5,435 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,564,153) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,245,731 | |
Net Assets | $ 63,973,670 | |
Contrafund: | $ 58.28 | |
|
|
|
Class K: | $ 58.25 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2009 | |
|
|
|
Investment Income |
|
|
Dividends (including $20,768 earned from other affiliated issuers) |
| $ 615,513 |
Interest |
| 3,749 |
Income from Fidelity Central Funds |
| 33,214 |
Total income |
| 652,476 |
|
|
|
Expenses | ||
Management fee | $ 298,405 | |
Performance adjustment | 117,515 | |
Transfer agent fees | 109,244 | |
Accounting and security lending fees | 2,686 | |
Custodian fees and expenses | 2,383 | |
Independent trustees' compensation | 370 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 507 | |
Audit | 291 | |
Legal | 269 | |
Miscellaneous | 1,176 | |
Total expenses before reductions | 532,847 | |
Expense reductions | (3,629) | 529,218 |
Net investment income (loss) | 123,258 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (258,814) | |
Other affiliated issuers | (211,219) |
|
Foreign currency transactions | (1,102) | |
Cap gain distributions from Fidelity Central Funds | 46 | |
Total net realized gain (loss) |
| (471,089) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 14,688,794 | |
Assets and liabilities in foreign currencies | (57) | |
Total change in net unrealized appreciation (depreciation) |
| 14,688,737 |
Net gain (loss) | 14,217,648 | |
Net increase (decrease) in net assets resulting from operations | $ 14,340,906 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 123,258 | $ 252,242 |
Net realized gain (loss) | (471,089) | (5,913,986) |
Change in net unrealized appreciation (depreciation) | 14,688,737 | (24,064,404) |
Net increase (decrease) in net assets resulting | 14,340,906 | (29,726,148) |
Distributions to shareholders from net investment income | (132,704) | (228,923) |
Distributions to shareholders from net realized gain | (92,816) | (717,940) |
Total distributions | (225,520) | (946,863) |
Share transactions - net increase (decrease) | 1,408,294 | (2,020,966) |
Total increase (decrease) in net assets | 15,523,680 | (32,693,977) |
|
|
|
Net Assets | ||
Beginning of period | 48,449,990 | 81,143,967 |
End of period (including undistributed net investment income of $5,435 and undistributed net investment income of $15,798, respectively) | $ 63,973,670 | $ 48,449,990 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Contrafund
Years ended December 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 45.26 | $ 73.11 | $ 65.21 | $ 64.76 | $ 56.74 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss)B | .11 | .23 | .48 | .41 | .27 |
Net realized and unrealized gain (loss) | 13.11 | (27.22) | 12.34 | 6.92 | 8.95 |
Total from investment operations | 13.22 | (26.99) | 12.82 | 7.33 | 9.22 |
Distributions from net investment income | (.11) | (.21) | (.44) | (.39) | (.23) |
Distributions from net realized gain | (.09) | (.65) | (4.48) | (6.49) | (.97) |
Total distributions | (.20) | (.86) | (4.92) | (6.88) | (1.20) |
Net asset value, end of period | $ 58.28 | $ 45.26 | $ 73.11 | $ 65.21 | $ 64.76 |
Total ReturnA | 29.23% | (37.16) % | 19.78% | 11.54% | 16.23% |
Ratios to Average Net AssetsC,E |
|
|
|
|
|
Expenses before reductions | 1.02% | .95% | .89% | .90% | .91% |
Expenses net of fee waivers, if any | 1.02% | .95% | .89% | .90% | .91% |
Expenses net of all reductions | 1.01% | .94% | .89% | .89% | .88% |
Net investment income (loss) | .22% | .37% | .68% | .62% | .46% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period | $ 57,225 | $ 45,149 | $ 81,144 | $ 68,576 | $ 60,143 |
Portfolio turnover rateD | 58% | 78% | 56% | 76% | 60% |
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 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 reductions from 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.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class K
Years ended December 31, | 2009 | 2008G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 45.23 | $ 68.59 |
Income from Investment Operations |
|
|
Net investment income (loss)D | .19 | .22 |
Net realized and unrealized gain (loss) | 13.11 | (23.30) |
Total from investment operations | 13.30 | (23.08) |
Distributions from net investment income | (.20) | (.28) |
Distributions from net realized gain | (.09) | - |
Total distributions | (.28)I | (.28) |
Net asset value, end of period | $ 58.25 | $ 45.23 |
Total ReturnB,C | 29.43% | (33.63)% |
Ratios to Average Net AssetsE,H |
|
|
Expenses before reductions | .86% | .82%A |
Expenses net of fee waivers, if any | .86% | .82%A |
Expenses net of all reductions | .85% | .82%A |
Net investment income (loss) | .38% | .75%A |
Supplemental Data |
|
|
Net assets, end of period (in millions) | $ 6,749 | $ 3,301 |
Portfolio turnover rateF | 58% | 78% |
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 May 9, 2008 (commencement of sale of shares) to December 31, 2008.
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 reductions from 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 Total distributions of $.281 per share is comprised of distributions from net investment income of $.196 and distributions from net realized gain of $.085 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Contrafund (the Fund) is a fund of Fidelity Contrafund (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 Contrafund and Class K 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. After the commencement of Class K, the Fund began offering conversion privileges between Contrafund and Class K to eligible shareholders of Contrafund. 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. Certain expense reductions also differ by class.
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 held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 18, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Annual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. 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 and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and 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
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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 distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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 substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 15,672,900 |
Gross unrealized depreciation | (1,032,100) |
Net unrealized appreciation (depreciation) | $ 14,640,800 |
|
|
Tax Cost | $ 50,028,761 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $ 94,278 |
Capital loss carryforward | $ (5,732,817) |
Net unrealized appreciation (depreciation) | $ 14,640,910 |
The tax character of distributions paid was as follows:
| December 31, 2009 | December 31, 2008 |
Ordinary Income | $ 225,520 | $ 228,923 |
Long-term Capital Gains | - | 717,940 |
Total | $ 225,520 | $ 946,863 |
4. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $30,015,866 and $28,570,822, 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 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
Annual Report
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
the management fee is based on the relative investment performance of the retail class of the Fund, Contrafund, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Contrafund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:
| Amount | % of |
Contrafund | $ 106,283 | .22 |
Class K | 2,961 | .06 |
| $ 109,244 |
|
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 $312 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $261 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
(Amounts in thousands except ratios)
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 $16,646.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Contrafund's operating expenses. During the period, this reimbursement reduced the class' expenses by $20.
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 $3,601 for the period. In addition, through arrangements with the Fund's custodian, 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 expenses by $8.
Annual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2009 | 2008A |
From net investment income |
|
|
Contrafund | $ 110,638 | $ 208,629 |
Class K | 22,066 | 20,294 |
Total | $ 132,704 | $ 228,923 |
From net realized gain |
|
|
Contrafund | $ 83,038 | $ 717,940 |
Class K | 9,778 | - |
Total | $ 92,816 | $ 717,940 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
2009B | 2008A | 2009B | 2008A | |
Contrafund |
|
|
|
|
Shares sold | 185,518 | 153,230 | $ 8,936,796 | $ 9,211,642 |
Conversion to Class K | (28,838) | (71,716) | (1,280,867) | (3,520,561) |
Reinvestment of distributions | 3,386 | 15,647 | 188,452 | 906,942 |
Shares redeemed | (175,665) | (209,487) | (8,469,845) | (12,197,066) |
Net increase (decrease) | (15,599) | (112,326) | $ (625,464) | $ (5,599,043) |
Class K |
|
|
|
|
Shares sold | 33,635 | 3,604 | $ 1,711,298 | $ 167,149 |
Conversion from Contrafund | 28,843 | 71,676 | 1,280,867 | 3,520,561 |
Reinvestment of distributions | 566 | 462 | 31,844 | 20,294 |
Shares redeemed | (20,158) | (2,773) | (990,251) | (129,927) |
Net increase (decrease) | 42,886 | 72,969 | $ 2,033,758 | $ 3,578,077 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.
B Conversion transactions for Class K and Contrafund are for the period January 1, 2009 through August 31, 2009.
12. 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
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Contrafund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Contrafund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Contrafund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 18, 2010
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 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 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 1-800-835-5092.
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 (79) | |
| Year of Election or Appointment: 1984 Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; 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 and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (74) | |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* 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 (61) | |
| 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). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (56) | |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) | |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). 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 Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (65) | |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (65) | |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (70) | |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (60) | |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (59) | |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (65) | |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (40) | |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (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). |
Bruce T. Herring (44) | |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Brian B. Hogan (45) | |
| Year of Election or Appointment: 2009 Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager. |
Scott C. Goebel (41) | |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
William C. Coffey (40) | |
| Year of Election or Appointment: 2009 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments. |
Holly C. Laurent (55) | |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (51) | |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (62) | |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), 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), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present). |
Jeffrey S. Christian (48) | |
| Year of Election or Appointment: 2009 Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004). |
Bryan A. Mehrmann (48) | |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (42) | |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
John R. Hebble (51) | |
| Year of Election or Appointment: 2009 Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments. |
Paul M. Murphy (62) | |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (51) | |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Contrafund voted to pay 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 |
Class K | 02/08/10 | 02/05/10 | $.01 | $.08 |
Class K designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Class K 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 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Contrafund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.
At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Annual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for Fidelity Contrafund (retail class), as well as the fund's relative investment performance for Fidelity Contrafund (retail class) measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Contrafund (retail class) of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. (Class K of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Contrafund (retail class) of the fund. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Contrafund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Contrafund (retail class) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Fidelity Contrafund (retail class) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark.
The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.
The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Fidelity Contrafund (retail class) through May 31, 2009 and stated that it exceeded the fund's benchmark.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Annual Report
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Contrafund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for each year represents calculations for performance periods that differ from the periods shown in the performance charts above.
Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each class ranked below its competitive median for the period.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Annual Report
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Research & Analysis Company
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc. Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
CON-K-UANN-0210 1.863186.101
Item 2. Code of Ethics
As of the end of the period, December 31, 2009, Fidelity Contrafund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Advisor New Insights Fund and Fidelity Contrafund (the "Funds"):
Services Billed by PwC
December 31, 2009 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor New Insights Fund | $69,000 | $- | $4,100 | $8,700 |
Fidelity Contrafund | $232,000 | $- | $4,100 | $42,200 |
December 31, 2008 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor New Insights Fund | $63,000 | $- | $3,900 | $9,300 |
Fidelity Contrafund | $237,000 | $- | $4,700 | $56,300 |
A Amounts may reflect rounding.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by PwC
| December 31, 2009A | December 31, 2008A |
Audit-Related Fees | $2,655,000 | $2,530,000B |
Tax Fees | $- | $2,000 |
All Other Fees | $- | $-B |
A Amounts may reflect rounding.
B Reflects current period presentation.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for assurance services provided to the fund or Fund Service Provider that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | December 31, 2009 A | December 31, 2008 A,B |
PwC | $4,600,000 | $3,160,000 |
A Amounts may reflect rounding.
B Reflects current period presentation.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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 Contrafund
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | February 25, 2010 |
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/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | February 25, 2010 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | February 25, 2010 |