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 811-2841
Fidelity Capital Trust
(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: | October 31 |
| |
Date of reporting period: | April 30, 2009 |
Item 1. Reports to Stockholders
Fidelity®
Capital Appreciation
Fund
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Capital Appreciation | .72% | | | |
Actual | | $ 1,000.00 | $ 977.00 | $ 3.53 |
HypotheticalA | | $ 1,000.00 | $ 1,021.22 | $ 3.61 |
Class K | .47% | | | |
Actual | | $ 1,000.00 | $ 978.60 | $ 2.31 |
HypotheticalA | | $ 1,000.00 | $ 1,022.46 | $ 2.36 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
The Walt Disney Co. | 6.0 | 8.6 |
Biogen Idec, Inc. | 5.0 | 4.7 |
CME Group, Inc. | 4.5 | 4.1 |
Qwest Communications International, Inc. | 2.9 | 2.0 |
AMR Corp. | 2.6 | 3.6 |
Morgan Stanley | 2.4 | 0.0 |
Applied Materials, Inc. | 2.3 | 2.4 |
Continental Airlines, Inc. Class B | 2.2 | 2.5 |
Pfizer, Inc. | 2.0 | 1.5 |
Sprint Nextel Corp. | 1.9 | 0.0 |
| 31.8 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 22.9 | 13.9 |
Information Technology | 15.6 | 11.6 |
Health Care | 15.5 | 23.6 |
Financials | 13.0 | 7.8 |
Industrials | 11.3 | 16.9 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009* | As of October 31, 2008** |
 | Stocks 95.9% | | | Stocks 89.5% | |
 | Short-Term
Investments and
Net Other Assets 4.1% | | | Short-Term
Investments and
Net Other Assets 10.5% | |
* Foreign investments | 8.7% | | ** Foreign investments | 5.4% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 22.9% |
Auto Components - 0.5% |
Johnson Controls, Inc. | 1,063,200 | | $ 20,211 |
Diversified Consumer Services - 0.4% |
ITT Educational Services, Inc. (a) | 170,370 | | 17,168 |
Hotels, Restaurants & Leisure - 1.7% |
Orient Express Hotels Ltd. Class A | 886,000 | | 5,732 |
Paddy Power PLC (Ireland) | 1,453,300 | | 26,758 |
The Cheesecake Factory, Inc. (a) | 674,258 | | 11,712 |
Wendy's/Arby's Group, Inc. | 5,925,800 | | 29,629 |
| | 73,831 |
Media - 13.2% |
CBS Corp. Class B | 4,853,300 | | 34,167 |
Comcast Corp. Class A (special) (non-vtg.) | 4,090,816 | | 60,053 |
Gannett Co., Inc. (d) | 2,656,100 | | 10,385 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 487,100 | | 7,540 |
Interpublic Group of Companies, Inc. (a) | 10,129,450 | | 63,410 |
Lamar Advertising Co. Class A (a)(d) | 753,119 | | 12,728 |
Mediacom Communications Corp. Class A (a) | 2,909,723 | | 16,556 |
Scripps Networks Interactive, Inc. Class A | 88,255 | | 2,422 |
The DIRECTV Group, Inc. (a) | 2,126,933 | | 52,599 |
The Walt Disney Co. | 12,088,279 | | 264,740 |
Virgin Media, Inc. | 8,109,661 | | 62,607 |
| | 587,207 |
Multiline Retail - 0.3% |
Macy's, Inc. | 1,018,900 | | 13,939 |
Specialty Retail - 6.8% |
Abercrombie & Fitch Co. Class A | 885,300 | | 23,956 |
Aeropostale, Inc. (a) | 619,609 | | 21,048 |
American Eagle Outfitters, Inc. | 1,328,496 | | 19,688 |
AnnTaylor Stores Corp. (a) | 953,500 | | 7,046 |
AutoNation, Inc. (a)(d) | 1,328,500 | | 23,528 |
bebe Stores, Inc. | 531,100 | | 4,886 |
Brown Shoe Co., Inc. | 460,000 | | 2,958 |
CarMax, Inc. (a)(d) | 1,335,903 | | 17,046 |
Charlotte Russe Holding, Inc. (a) | 457,874 | | 5,746 |
Chico's FAS, Inc. (a) | 796,649 | | 6,086 |
Dress Barn, Inc. (a) | 531,000 | | 8,039 |
Finish Line, Inc. Class A | 531,175 | | 4,515 |
Foot Locker, Inc. | 531,133 | | 6,315 |
Gap, Inc. | 797,124 | | 12,387 |
Genesco, Inc. (a) | 530,921 | | 12,094 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
Guess?, Inc. | 265,447 | | $ 6,912 |
Gymboree Corp. (a) | 530,974 | | 18,266 |
Hot Topic, Inc. (a) | 619,700 | | 7,585 |
New York & Co., Inc. (a) | 1,151,000 | | 6,676 |
Ross Stores, Inc. | 353,900 | | 13,427 |
Stage Stores, Inc. | 619,700 | | 7,591 |
The Buckle, Inc. (d) | 531,361 | | 19,857 |
The Children's Place Retail Stores, Inc. (a) | 530,936 | | 15,100 |
The Men's Wearhouse, Inc. | 309,995 | | 5,778 |
TJX Companies, Inc. | 442,440 | | 12,375 |
Urban Outfitters, Inc. (a) | 664,300 | | 12,947 |
| | 301,852 |
TOTAL CONSUMER DISCRETIONARY | | 1,014,208 |
CONSUMER STAPLES - 0.4% |
Tobacco - 0.4% |
Lorillard, Inc. | 310,009 | | 19,571 |
ENERGY - 6.5% |
Energy Equipment & Services - 0.9% |
Pride International, Inc. (a) | 708,500 | | 16,083 |
Schlumberger Ltd. (NY Shares) | 354,400 | | 17,362 |
Willbros Group, Inc. (a)(d) | 719,099 | | 8,241 |
| | 41,686 |
Oil, Gas & Consumable Fuels - 5.6% |
Arch Coal, Inc. | 885,752 | | 12,374 |
EXCO Resources, Inc. (a) | 1,749,000 | | 20,603 |
James River Coal Co. (a)(e) | 1,635,828 | | 23,294 |
Marathon Oil Corp. | 443,000 | | 13,157 |
Petrohawk Energy Corp. (a) | 797,700 | | 18,826 |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 1,816,300 | | 60,973 |
Range Resources Corp. | 575,000 | | 22,983 |
Southwestern Energy Co. (a) | 707,936 | | 25,387 |
XTO Energy, Inc. | 1,415,900 | | 49,075 |
| | 246,672 |
TOTAL ENERGY | | 288,358 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - 13.0% |
Capital Markets - 3.9% |
Goldman Sachs Group, Inc. | 354,300 | | $ 45,528 |
Janus Capital Group, Inc. | 2,034,957 | | 20,411 |
Morgan Stanley | 4,472,773 | | 105,736 |
| | 171,675 |
Commercial Banks - 1.2% |
PNC Financial Services Group, Inc. | 708,800 | | 28,139 |
TCF Financial Corp. | 531,400 | | 7,392 |
Wells Fargo & Co. | 886,000 | | 17,729 |
| | 53,260 |
Consumer Finance - 0.7% |
American Express Co. | 708,300 | | 17,863 |
Capital One Financial Corp. | 797,400 | | 13,348 |
| | 31,211 |
Diversified Financial Services - 5.8% |
Bank of America Corp. | 3,987,000 | | 35,604 |
Citigroup, Inc. (d) | 7,088,000 | | 21,618 |
CME Group, Inc. | 896,023 | | 198,335 |
| | 255,557 |
Real Estate Management & Development - 1.4% |
CB Richard Ellis Group, Inc. Class A (a) | 8,319,016 | | 62,393 |
TOTAL FINANCIALS | | 574,096 |
HEALTH CARE - 15.5% |
Biotechnology - 5.1% |
Biogen Idec, Inc. (a) | 4,597,875 | | 222,261 |
Dendreon Corp. (a) | 177,200 | | 3,757 |
| | 226,018 |
Health Care Equipment & Supplies - 0.1% |
Wright Medical Group, Inc. (a) | 325,075 | | 4,470 |
Health Care Providers & Services - 1.8% |
VCA Antech, Inc. (a) | 3,265,138 | | 81,694 |
Life Sciences Tools & Services - 0.1% |
Techne Corp. | 85,721 | | 4,905 |
Pharmaceuticals - 8.4% |
Allergan, Inc. | 1,334,533 | | 62,269 |
Bristol-Myers Squibb Co. | 1,898,855 | | 36,458 |
Elan Corp. PLC sponsored ADR (a) | 9,017,555 | | 53,294 |
Merck & Co., Inc. | 664,273 | | 16,102 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Pfizer, Inc. | 6,642,770 | | $ 88,747 |
Questcor Pharmaceuticals, Inc. (a)(d) | 983,839 | | 4,427 |
Schering-Plough Corp. | 2,528,900 | | 58,215 |
Wyeth | 1,240,000 | | 52,576 |
| | 372,088 |
TOTAL HEALTH CARE | | 689,175 |
INDUSTRIALS - 11.3% |
Airlines - 7.5% |
AMR Corp. (a)(e) | 24,576,575 | | 116,984 |
Continental Airlines, Inc. Class B (a)(d)(e) | 9,011,973 | | 94,806 |
Delta Air Lines, Inc. (a) | 9,403,793 | | 58,021 |
UAL Corp. (a)(d) | 6,440,091 | | 31,685 |
US Airways Group, Inc. (a)(e) | 8,217,895 | | 31,146 |
| | 332,642 |
Electrical Equipment - 1.6% |
Alstom SA | 960,546 | | 59,862 |
Rockwell Automation, Inc. | 354,200 | | 11,189 |
| | 71,051 |
Industrial Conglomerates - 0.8% |
General Electric Co. | 2,834,200 | | 35,853 |
Machinery - 1.3% |
Bucyrus International, Inc. Class A | 239,100 | | 5,191 |
Caterpillar, Inc. | 354,100 | | 12,599 |
Deere & Co. | 560,739 | | 23,136 |
Eaton Corp. | 265,700 | | 11,638 |
Joy Global, Inc. | 177,100 | | 4,516 |
| | 57,080 |
Trading Companies & Distributors - 0.1% |
Beacon Roofing Supply, Inc. (a) | 243,300 | | 3,868 |
TOTAL INDUSTRIALS | | 500,494 |
INFORMATION TECHNOLOGY - 15.6% |
Communications Equipment - 2.1% |
Adtran, Inc. | 265,715 | | 5,620 |
Cisco Systems, Inc. (a) | 1,694,700 | | 32,742 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (d) | 5,927,500 | | $ 50,562 |
Tellabs, Inc. (a) | 797,400 | | 4,178 |
| | 93,102 |
Computers & Peripherals - 2.5% |
Apple, Inc. (a) | 575,700 | | 72,440 |
NetApp, Inc. (a) | 1,672,571 | | 30,608 |
Seagate Technology | 873,600 | | 7,129 |
| | 110,177 |
Internet Software & Services - 1.9% |
DealerTrack Holdings, Inc. (a) | 863,391 | | 13,106 |
Equinix, Inc. (a) | 620,166 | | 43,554 |
NetEase.com, Inc. sponsored ADR (a) | 708,800 | | 21,392 |
Omniture, Inc. (a) | 486,400 | | 5,992 |
| | 84,044 |
IT Services - 0.4% |
Alliance Data Systems Corp. (a) | 184,950 | | 7,744 |
Fidelity National Information Services, Inc. | 531,400 | | 9,485 |
| | 17,229 |
Semiconductors & Semiconductor Equipment - 7.9% |
Applied Materials, Inc. | 8,253,483 | | 100,775 |
ASML Holding NV (NY Shares) | 1,282,400 | | 27,123 |
Broadcom Corp. Class A (a) | 1,150,800 | | 26,687 |
Intersil Corp. Class A | 1,012,800 | | 11,748 |
KLA-Tencor Corp. | 1,461,900 | | 40,553 |
Kulicke & Soffa Industries, Inc. (a) | 2,242,476 | | 8,970 |
Lam Research Corp. (a) | 1,417,802 | | 39,528 |
Marvell Technology Group Ltd. (a) | 354,100 | | 3,888 |
Microchip Technology, Inc. (d) | 398,571 | | 9,167 |
National Semiconductor Corp. | 754,400 | | 9,332 |
Novellus Systems, Inc. (a) | 706,300 | | 12,756 |
NVIDIA Corp. (a) | 1,151,800 | | 13,223 |
RF Micro Devices, Inc. (a) | 442,800 | | 934 |
Semtech Corp. (a) | 531,200 | | 7,660 |
Silicon Laboratories, Inc. (a) | 418,166 | | 13,908 |
Skyworks Solutions, Inc. (a) | 354,300 | | 3,132 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,682,200 | | 17,781 |
Tessera Technologies, Inc. (a) | 404,728 | | 5,682 |
| | 352,847 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - 0.8% |
Microsoft Corp. | 1,683,400 | | $ 34,106 |
TOTAL INFORMATION TECHNOLOGY | | 691,505 |
MATERIALS - 3.3% |
Chemicals - 3.0% |
Ashland, Inc. | 1,077,830 | | 23,669 |
Dow Chemical Co. | 265,800 | | 4,253 |
Eastman Chemical Co. | 265,800 | | 10,547 |
FMC Corp. | 985,821 | | 48,039 |
Monsanto Co. | 301,223 | | 25,571 |
Terra Industries, Inc. | 797,100 | | 21,123 |
| | 133,202 |
Paper & Forest Products - 0.3% |
International Paper Co. | 708,800 | | 8,973 |
Louisiana-Pacific Corp. | 1,329,000 | | 5,409 |
| | 14,382 |
TOTAL MATERIALS | | 147,584 |
TELECOMMUNICATION SERVICES - 7.4% |
Diversified Telecommunication Services - 3.8% |
Cbeyond, Inc. (a)(e) | 1,995,147 | | 40,661 |
Qwest Communications International, Inc. (d) | 33,368,800 | | 129,805 |
| | 170,466 |
Wireless Telecommunication Services - 3.6% |
Crown Castle International Corp. (a) | 160,013 | | 3,924 |
Leap Wireless International, Inc. (a) | 1,302,601 | | 46,985 |
Millicom International Cellular SA | 431,081 | | 20,890 |
Sprint Nextel Corp. (a) | 19,708,272 | | 85,928 |
| | 157,727 |
TOTAL TELECOMMUNICATION SERVICES | | 328,193 |
TOTAL COMMON STOCKS (Cost $5,217,519) | 4,253,184 |
Money Market Funds - 11.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 342,225,271 | | $ 342,225 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 155,763,025 | | 155,763 |
TOTAL MONEY MARKET FUNDS (Cost $497,988) | 497,988 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.15%, dated 4/30/09 due 5/1/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $3,008) | $ 3,008 | | 3,008 |
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $5,718,515) | | 4,754,180 |
NET OTHER ASSETS - (7.2)% | | (318,441) |
NET ASSETS - 100% | $ 4,435,739 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(Amounts in thousands) |
$3,008,000 due 5/01/09 at 0.15% |
BNP Paribas Securities Corp. | $ 1,556 |
Banc of America Securities LLC | 275 |
Barclays Capital, Inc. | 828 |
Deutsche Bank Securities, Inc. | 349 |
| $ 3,008 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 1,714 |
Fidelity Securities Lending Cash Central Fund | 1,085 |
Total | $ 2,799 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
AMR Corp. | $ 172,130 | $ 44,836 | $ 16,648 | $ - | $ 116,984 |
Cbeyond, Inc. | 25,029 | - | 1,001 | - | 40,661 |
Continental Airlines, Inc. Class B | 121,456 | 31,675 | 2,735 | - | 94,806 |
James River Coal Co. | - | 31,816 | 11,840 | - | 23,294 |
US Airways Group, Inc. | 78,795 | 3,510 | - | - | 31,146 |
Total | $ 397,410 | $ 111,837 | $ 32,224 | $ - | $ 306,891 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 4,754,180 | $ 4,664,552 | $ 89,628 | $ - |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities
(Amounts in thousands) |
Beginning Balance | $ 1,013 |
Total Realized Gain (Loss) | (993) |
Total Unrealized Gain (Loss) | 1,356 |
Cost of Purchases | - |
Proceeds of Sales | (1,375) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ - |
The information used in the above reconciliation represents fiscal year to date activity for an Investment 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. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $851,480,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $149,404 and repurchase agreements of $3,008) - See accompanying schedule: Unaffiliated issuers (cost $4,378,287) | $ 3,949,301 | |
Fidelity Central Funds (cost $497,988) | 497,988 | |
Other affiliated issuers (cost $842,240) | 306,891 | |
Total Investments (cost $5,718,515) | | $ 4,754,180 |
Cash | | 1 |
Receivable for fund shares sold | | 3,643 |
Dividends receivable | | 5,206 |
Distributions receivable from Fidelity Central Funds | | 316 |
Prepaid expenses | | 38 |
Other receivables | | 69 |
Total assets | | 4,763,453 |
| | |
Liabilities | | |
Payable for investments purchased | $ 162,292 | |
Payable for fund shares redeemed | 6,986 | |
Accrued management fee | 1,408 | |
Other affiliated payables | 1,152 | |
Other payables and accrued expenses | 113 | |
Collateral on securities loaned, at value | 155,763 | |
Total liabilities | | 327,714 |
| | |
Net Assets | | $ 4,435,739 |
Net Assets consist of: | | |
Paid in capital | | $ 6,674,421 |
Distributions in excess of net investment income | | (10,552) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,263,823) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (964,307) |
Net Assets | | $ 4,435,739 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Capital Appreciation:
Net Asset Value, offering price and redemption price per share ($4,204,612 ÷ 261,191 shares) | | $ 16.10 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($231,127 ÷ 14,359 shares) | | $ 16.10 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 21,648 |
Income from Fidelity Central Funds | | 2,799 |
Total income | | 24,447 |
| | |
Expenses | | |
Management fee
Basic fee | $ 11,979 | |
Performance adjustment | (4,055) | |
Transfer agent fees | 6,345 | |
Accounting and security lending fees | 567 | |
Custodian fees and expenses | 45 | |
Independent trustees' compensation | 16 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 50 | |
Audit | 37 | |
Legal | 12 | |
Miscellaneous | 45 | |
Total expenses before reductions | 15,040 | |
Expense reductions | (20) | 15,020 |
Net investment income (loss) | | 9,427 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (359,984) | |
Other affiliated issuers | (18,645) | |
Foreign currency transactions | (380) | |
Total net realized gain (loss) | | (379,009) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 216,330 | |
Assets and liabilities in foreign currencies | 15 | |
Total change in net unrealized appreciation (depreciation) | | 216,345 |
Net gain (loss) | | (162,664) |
Net increase (decrease) in net assets resulting from operations | | $ (153,237) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,427 | $ 51,617 |
Net realized gain (loss) | (379,009) | (879,245) |
Change in net unrealized appreciation (depreciation) | 216,345 | (3,329,781) |
Net increase (decrease) in net assets resulting from operations | (153,237) | (4,157,409) |
Distributions to shareholders from net investment income | (53,246) | (37,706) |
Distributions to shareholders from net realized gain | - | (697,557) |
Total distributions | (53,246) | (735,263) |
Share transactions - net increase (decrease) | (244,546) | (359,868) |
Total increase (decrease) in net assets | (451,029) | (5,252,540) |
| | |
Net Assets | | |
Beginning of period | 4,886,768 | 10,139,308 |
End of period (including distributions in excess of net investment income of $10,552 and undistributed net investment income of $33,456, respectively) | $ 4,435,739 | $ 4,886,768 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Capital Appreciation
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 | $ 25.05 | $ 23.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .16 | .11 | .10 | (.01) H | (.03) |
Net realized and unrealized gain (loss) | (.43) | (13.27) | 6.06 | 3.55 | 2.40 | 1.58 |
Total from investment operations | (.40) | (13.11) | 6.17 | 3.65 | 2.39 | 1.55 |
Distributions from net investment income | (.18) | (.12) | (.11) | - | (.01) | (.01) |
Distributions from net realized gain | - | (2.22) | (1.34) | (2.46) | (1.21) | (.02) |
Total distributions | (.18) | (2.34) | (1.45) | (2.46) | (1.22) | (.03) |
Net asset value, end of period | $ 16.10 | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 | $ 25.05 |
Total Return B, C, D | (2.30)% | (43.80)% | 23.51% | 14.70% | 9.66% | 6.60% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | .72% A | .82% | .83% | .91% | .94% | .94% |
Expenses net of fee waivers, if any | .72% A | .82% | .83% | .91% | .94% | .94% |
Expenses net of all reductions | .72% A | .82% | .82% | .87% | .90% | .91% |
Net investment income (loss) | .44% A | .67% | .36% | .36% | (.05)%H | (.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,205 | $ 4,794 | $ 10,139 | $ 8,353 | $ 6,970 | $ 5,861 |
Portfolio turnover rate G | 268% A | 157% | 135% | 198% | 109% | 72% |
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 Total returns do not include the effect of the former contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 16.69 | $ 25.11 |
Income from Investment Operations | | |
Net investment income (loss) D | .05 | .03 |
Net realized and unrealized gain (loss) | (.42) | (8.45) |
Total from investment operations | (.37) | (8.42) |
Distributions from net investment income | (.22) | - |
Net asset value, end of period | $ 16.10 | $ 16.69 |
Total Return B, C | (2.14)% | (33.53)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .47% A | .66% A |
Expenses net of fee waivers, if any | .47% A | .66% A |
Expenses net of all reductions | .47% A | .65% A |
Net investment income (loss) | .69% A | .41% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 231 | $ 93 |
Portfolio turnover rate F | 268% A | 157% |
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 s hare 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 October 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 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Capital Appreciation Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Capital Appreciation 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 Capital Appreciation and Class K to eligible shareholders of Capital Appreciation. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended October 30, 2008, dividend income has been reduced $15,065,483 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
return of the Fund. 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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 385,690 |
Unrealized depreciation | (1,393,281) |
Net unrealized appreciation (depreciation) | $ (1,007,591) |
Cost for federal income tax purposes | $ 5,761,771 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities other short-term securities, aggregated $5,298,114 and $5,228,833, 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 .27% 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 retail class of the Fund, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .38% 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 Capital Appreciation. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Capital Appreciation | $ 6,299 | .31 |
Class K | 46 | .06 |
| $ 6,345 | |
* Annualized
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 $133 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 $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual 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 $1,085.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Capital Appreciation's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
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 $16 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008A |
From net investment income | | |
Capital Appreciation | $ 51,797 | $ 37,706 |
Class K | 1,450 | - |
Total | $ 53,246 | $ 37,706 |
From net realized gain | | |
Capital Appreciation | $ - | $ 697,557 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2009 | Year ended
October 31,
2008A | Six months ended April 30,
2009 | Year ended
October 31,
2008A |
Capital Appreciation | | | | |
Shares sold | 27,286 | 47,342 | $ 406,573 | $ 1,138,810 |
Conversion to Class K | (8,524) | (5,674) | (127,930) | (112,685) |
Reinvestment of
distributions | 3,319 | 24,939 | 49,955 | 706,511 |
Shares redeemed | (48,345) | (94,744) | (705,229) | (2,202,870) |
Net increase (decrease) | (26,264) | (28,137) | $ (376,631) | $ (470,234) |
Class K | | | | |
Shares sold | 1,514 | 115 | $ 21,904 | $ 1,993 |
Conversion from Capital Appreciation | 8,530 | 5,669 | 127,928 | 112,685 |
Reinvestment of
distributions | 96 | - | 1,450 | - |
Shares redeemed | (1,325) | (240) | (19,188) | (4,312) |
Net increase (decrease) | 8,815 | 5,544 | $ 132,085 | $ 110,366 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
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.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
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(U.K.) Inc.
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(Japan) Inc.
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The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
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and Account Assistance 1-800-544-6666
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Automated line for quickest service
CAF-USAN-0609
1.784911.106
Fidelity®
Capital Appreciation
Fund -
Class K
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Capital Appreciation | .72% | | | |
Actual | | $ 1,000.00 | $ 977.00 | $ 3.53 |
HypotheticalA | | $ 1,000.00 | $ 1,021.22 | $ 3.61 |
Class K | .47% | | | |
Actual | | $ 1,000.00 | $ 978.60 | $ 2.31 |
HypotheticalA | | $ 1,000.00 | $ 1,022.46 | $ 2.36 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
The Walt Disney Co. | 6.0 | 8.6 |
Biogen Idec, Inc. | 5.0 | 4.7 |
CME Group, Inc. | 4.5 | 4.1 |
Qwest Communications International, Inc. | 2.9 | 2.0 |
AMR Corp. | 2.6 | 3.6 |
Morgan Stanley | 2.4 | 0.0 |
Applied Materials, Inc. | 2.3 | 2.4 |
Continental Airlines, Inc. Class B | 2.2 | 2.5 |
Pfizer, Inc. | 2.0 | 1.5 |
Sprint Nextel Corp. | 1.9 | 0.0 |
| 31.8 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 22.9 | 13.9 |
Information Technology | 15.6 | 11.6 |
Health Care | 15.5 | 23.6 |
Financials | 13.0 | 7.8 |
Industrials | 11.3 | 16.9 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009* | As of October 31, 2008** |
| Stocks 95.9% | | | Stocks 89.5% | |
| Short-Term
Investments and
Net Other Assets 4.1% | | | Short-Term
Investments and
Net Other Assets 10.5% | |
* Foreign investments | 8.7% | | ** Foreign investments | 5.4% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 22.9% |
Auto Components - 0.5% |
Johnson Controls, Inc. | 1,063,200 | | $ 20,211 |
Diversified Consumer Services - 0.4% |
ITT Educational Services, Inc. (a) | 170,370 | | 17,168 |
Hotels, Restaurants & Leisure - 1.7% |
Orient Express Hotels Ltd. Class A | 886,000 | | 5,732 |
Paddy Power PLC (Ireland) | 1,453,300 | | 26,758 |
The Cheesecake Factory, Inc. (a) | 674,258 | | 11,712 |
Wendy's/Arby's Group, Inc. | 5,925,800 | | 29,629 |
| | 73,831 |
Media - 13.2% |
CBS Corp. Class B | 4,853,300 | | 34,167 |
Comcast Corp. Class A (special) (non-vtg.) | 4,090,816 | | 60,053 |
Gannett Co., Inc. (d) | 2,656,100 | | 10,385 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 487,100 | | 7,540 |
Interpublic Group of Companies, Inc. (a) | 10,129,450 | | 63,410 |
Lamar Advertising Co. Class A (a)(d) | 753,119 | | 12,728 |
Mediacom Communications Corp. Class A (a) | 2,909,723 | | 16,556 |
Scripps Networks Interactive, Inc. Class A | 88,255 | | 2,422 |
The DIRECTV Group, Inc. (a) | 2,126,933 | | 52,599 |
The Walt Disney Co. | 12,088,279 | | 264,740 |
Virgin Media, Inc. | 8,109,661 | | 62,607 |
| | 587,207 |
Multiline Retail - 0.3% |
Macy's, Inc. | 1,018,900 | | 13,939 |
Specialty Retail - 6.8% |
Abercrombie & Fitch Co. Class A | 885,300 | | 23,956 |
Aeropostale, Inc. (a) | 619,609 | | 21,048 |
American Eagle Outfitters, Inc. | 1,328,496 | | 19,688 |
AnnTaylor Stores Corp. (a) | 953,500 | | 7,046 |
AutoNation, Inc. (a)(d) | 1,328,500 | | 23,528 |
bebe Stores, Inc. | 531,100 | | 4,886 |
Brown Shoe Co., Inc. | 460,000 | | 2,958 |
CarMax, Inc. (a)(d) | 1,335,903 | | 17,046 |
Charlotte Russe Holding, Inc. (a) | 457,874 | | 5,746 |
Chico's FAS, Inc. (a) | 796,649 | | 6,086 |
Dress Barn, Inc. (a) | 531,000 | | 8,039 |
Finish Line, Inc. Class A | 531,175 | | 4,515 |
Foot Locker, Inc. | 531,133 | | 6,315 |
Gap, Inc. | 797,124 | | 12,387 |
Genesco, Inc. (a) | 530,921 | | 12,094 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
Guess?, Inc. | 265,447 | | $ 6,912 |
Gymboree Corp. (a) | 530,974 | | 18,266 |
Hot Topic, Inc. (a) | 619,700 | | 7,585 |
New York & Co., Inc. (a) | 1,151,000 | | 6,676 |
Ross Stores, Inc. | 353,900 | | 13,427 |
Stage Stores, Inc. | 619,700 | | 7,591 |
The Buckle, Inc. (d) | 531,361 | | 19,857 |
The Children's Place Retail Stores, Inc. (a) | 530,936 | | 15,100 |
The Men's Wearhouse, Inc. | 309,995 | | 5,778 |
TJX Companies, Inc. | 442,440 | | 12,375 |
Urban Outfitters, Inc. (a) | 664,300 | | 12,947 |
| | 301,852 |
TOTAL CONSUMER DISCRETIONARY | | 1,014,208 |
CONSUMER STAPLES - 0.4% |
Tobacco - 0.4% |
Lorillard, Inc. | 310,009 | | 19,571 |
ENERGY - 6.5% |
Energy Equipment & Services - 0.9% |
Pride International, Inc. (a) | 708,500 | | 16,083 |
Schlumberger Ltd. (NY Shares) | 354,400 | | 17,362 |
Willbros Group, Inc. (a)(d) | 719,099 | | 8,241 |
| | 41,686 |
Oil, Gas & Consumable Fuels - 5.6% |
Arch Coal, Inc. | 885,752 | | 12,374 |
EXCO Resources, Inc. (a) | 1,749,000 | | 20,603 |
James River Coal Co. (a)(e) | 1,635,828 | | 23,294 |
Marathon Oil Corp. | 443,000 | | 13,157 |
Petrohawk Energy Corp. (a) | 797,700 | | 18,826 |
Petroleo Brasileiro SA - Petrobras sponsored ADR | 1,816,300 | | 60,973 |
Range Resources Corp. | 575,000 | | 22,983 |
Southwestern Energy Co. (a) | 707,936 | | 25,387 |
XTO Energy, Inc. | 1,415,900 | | 49,075 |
| | 246,672 |
TOTAL ENERGY | | 288,358 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - 13.0% |
Capital Markets - 3.9% |
Goldman Sachs Group, Inc. | 354,300 | | $ 45,528 |
Janus Capital Group, Inc. | 2,034,957 | | 20,411 |
Morgan Stanley | 4,472,773 | | 105,736 |
| | 171,675 |
Commercial Banks - 1.2% |
PNC Financial Services Group, Inc. | 708,800 | | 28,139 |
TCF Financial Corp. | 531,400 | | 7,392 |
Wells Fargo & Co. | 886,000 | | 17,729 |
| | 53,260 |
Consumer Finance - 0.7% |
American Express Co. | 708,300 | | 17,863 |
Capital One Financial Corp. | 797,400 | | 13,348 |
| | 31,211 |
Diversified Financial Services - 5.8% |
Bank of America Corp. | 3,987,000 | | 35,604 |
Citigroup, Inc. (d) | 7,088,000 | | 21,618 |
CME Group, Inc. | 896,023 | | 198,335 |
| | 255,557 |
Real Estate Management & Development - 1.4% |
CB Richard Ellis Group, Inc. Class A (a) | 8,319,016 | | 62,393 |
TOTAL FINANCIALS | | 574,096 |
HEALTH CARE - 15.5% |
Biotechnology - 5.1% |
Biogen Idec, Inc. (a) | 4,597,875 | | 222,261 |
Dendreon Corp. (a) | 177,200 | | 3,757 |
| | 226,018 |
Health Care Equipment & Supplies - 0.1% |
Wright Medical Group, Inc. (a) | 325,075 | | 4,470 |
Health Care Providers & Services - 1.8% |
VCA Antech, Inc. (a) | 3,265,138 | | 81,694 |
Life Sciences Tools & Services - 0.1% |
Techne Corp. | 85,721 | | 4,905 |
Pharmaceuticals - 8.4% |
Allergan, Inc. | 1,334,533 | | 62,269 |
Bristol-Myers Squibb Co. | 1,898,855 | | 36,458 |
Elan Corp. PLC sponsored ADR (a) | 9,017,555 | | 53,294 |
Merck & Co., Inc. | 664,273 | | 16,102 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Pfizer, Inc. | 6,642,770 | | $ 88,747 |
Questcor Pharmaceuticals, Inc. (a)(d) | 983,839 | | 4,427 |
Schering-Plough Corp. | 2,528,900 | | 58,215 |
Wyeth | 1,240,000 | | 52,576 |
| | 372,088 |
TOTAL HEALTH CARE | | 689,175 |
INDUSTRIALS - 11.3% |
Airlines - 7.5% |
AMR Corp. (a)(e) | 24,576,575 | | 116,984 |
Continental Airlines, Inc. Class B (a)(d)(e) | 9,011,973 | | 94,806 |
Delta Air Lines, Inc. (a) | 9,403,793 | | 58,021 |
UAL Corp. (a)(d) | 6,440,091 | | 31,685 |
US Airways Group, Inc. (a)(e) | 8,217,895 | | 31,146 |
| | 332,642 |
Electrical Equipment - 1.6% |
Alstom SA | 960,546 | | 59,862 |
Rockwell Automation, Inc. | 354,200 | | 11,189 |
| | 71,051 |
Industrial Conglomerates - 0.8% |
General Electric Co. | 2,834,200 | | 35,853 |
Machinery - 1.3% |
Bucyrus International, Inc. Class A | 239,100 | | 5,191 |
Caterpillar, Inc. | 354,100 | | 12,599 |
Deere & Co. | 560,739 | | 23,136 |
Eaton Corp. | 265,700 | | 11,638 |
Joy Global, Inc. | 177,100 | | 4,516 |
| | 57,080 |
Trading Companies & Distributors - 0.1% |
Beacon Roofing Supply, Inc. (a) | 243,300 | | 3,868 |
TOTAL INDUSTRIALS | | 500,494 |
INFORMATION TECHNOLOGY - 15.6% |
Communications Equipment - 2.1% |
Adtran, Inc. | 265,715 | | 5,620 |
Cisco Systems, Inc. (a) | 1,694,700 | | 32,742 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (d) | 5,927,500 | | $ 50,562 |
Tellabs, Inc. (a) | 797,400 | | 4,178 |
| | 93,102 |
Computers & Peripherals - 2.5% |
Apple, Inc. (a) | 575,700 | | 72,440 |
NetApp, Inc. (a) | 1,672,571 | | 30,608 |
Seagate Technology | 873,600 | | 7,129 |
| | 110,177 |
Internet Software & Services - 1.9% |
DealerTrack Holdings, Inc. (a) | 863,391 | | 13,106 |
Equinix, Inc. (a) | 620,166 | | 43,554 |
NetEase.com, Inc. sponsored ADR (a) | 708,800 | | 21,392 |
Omniture, Inc. (a) | 486,400 | | 5,992 |
| | 84,044 |
IT Services - 0.4% |
Alliance Data Systems Corp. (a) | 184,950 | | 7,744 |
Fidelity National Information Services, Inc. | 531,400 | | 9,485 |
| | 17,229 |
Semiconductors & Semiconductor Equipment - 7.9% |
Applied Materials, Inc. | 8,253,483 | | 100,775 |
ASML Holding NV (NY Shares) | 1,282,400 | | 27,123 |
Broadcom Corp. Class A (a) | 1,150,800 | | 26,687 |
Intersil Corp. Class A | 1,012,800 | | 11,748 |
KLA-Tencor Corp. | 1,461,900 | | 40,553 |
Kulicke & Soffa Industries, Inc. (a) | 2,242,476 | | 8,970 |
Lam Research Corp. (a) | 1,417,802 | | 39,528 |
Marvell Technology Group Ltd. (a) | 354,100 | | 3,888 |
Microchip Technology, Inc. (d) | 398,571 | | 9,167 |
National Semiconductor Corp. | 754,400 | | 9,332 |
Novellus Systems, Inc. (a) | 706,300 | | 12,756 |
NVIDIA Corp. (a) | 1,151,800 | | 13,223 |
RF Micro Devices, Inc. (a) | 442,800 | | 934 |
Semtech Corp. (a) | 531,200 | | 7,660 |
Silicon Laboratories, Inc. (a) | 418,166 | | 13,908 |
Skyworks Solutions, Inc. (a) | 354,300 | | 3,132 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,682,200 | | 17,781 |
Tessera Technologies, Inc. (a) | 404,728 | | 5,682 |
| | 352,847 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - 0.8% |
Microsoft Corp. | 1,683,400 | | $ 34,106 |
TOTAL INFORMATION TECHNOLOGY | | 691,505 |
MATERIALS - 3.3% |
Chemicals - 3.0% |
Ashland, Inc. | 1,077,830 | | 23,669 |
Dow Chemical Co. | 265,800 | | 4,253 |
Eastman Chemical Co. | 265,800 | | 10,547 |
FMC Corp. | 985,821 | | 48,039 |
Monsanto Co. | 301,223 | | 25,571 |
Terra Industries, Inc. | 797,100 | | 21,123 |
| | 133,202 |
Paper & Forest Products - 0.3% |
International Paper Co. | 708,800 | | 8,973 |
Louisiana-Pacific Corp. | 1,329,000 | | 5,409 |
| | 14,382 |
TOTAL MATERIALS | | 147,584 |
TELECOMMUNICATION SERVICES - 7.4% |
Diversified Telecommunication Services - 3.8% |
Cbeyond, Inc. (a)(e) | 1,995,147 | | 40,661 |
Qwest Communications International, Inc. (d) | 33,368,800 | | 129,805 |
| | 170,466 |
Wireless Telecommunication Services - 3.6% |
Crown Castle International Corp. (a) | 160,013 | | 3,924 |
Leap Wireless International, Inc. (a) | 1,302,601 | | 46,985 |
Millicom International Cellular SA | 431,081 | | 20,890 |
Sprint Nextel Corp. (a) | 19,708,272 | | 85,928 |
| | 157,727 |
TOTAL TELECOMMUNICATION SERVICES | | 328,193 |
TOTAL COMMON STOCKS (Cost $5,217,519) | 4,253,184 |
Money Market Funds - 11.2% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 342,225,271 | | $ 342,225 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 155,763,025 | | 155,763 |
TOTAL MONEY MARKET FUNDS (Cost $497,988) | 497,988 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.15%, dated 4/30/09 due 5/1/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $3,008) | $ 3,008 | | 3,008 |
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $5,718,515) | | 4,754,180 |
NET OTHER ASSETS - (7.2)% | | (318,441) |
NET ASSETS - 100% | $ 4,435,739 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(Amounts in thousands) |
$3,008,000 due 5/01/09 at 0.15% |
BNP Paribas Securities Corp. | $ 1,556 |
Banc of America Securities LLC | 275 |
Barclays Capital, Inc. | 828 |
Deutsche Bank Securities, Inc. | 349 |
| $ 3,008 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 1,714 |
Fidelity Securities Lending Cash Central Fund | 1,085 |
Total | $ 2,799 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
AMR Corp. | $ 172,130 | $ 44,836 | $ 16,648 | $ - | $ 116,984 |
Cbeyond, Inc. | 25,029 | - | 1,001 | - | 40,661 |
Continental Airlines, Inc. Class B | 121,456 | 31,675 | 2,735 | - | 94,806 |
James River Coal Co. | - | 31,816 | 11,840 | - | 23,294 |
US Airways Group, Inc. | 78,795 | 3,510 | - | - | 31,146 |
Total | $ 397,410 | $ 111,837 | $ 32,224 | $ - | $ 306,891 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 4,754,180 | $ 4,664,552 | $ 89,628 | $ - |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities
(Amounts in thousands) |
Beginning Balance | $ 1,013 |
Total Realized Gain (Loss) | (993) |
Total Unrealized Gain (Loss) | 1,356 |
Cost of Purchases | - |
Proceeds of Sales | (1,375) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ - |
The information used in the above reconciliation represents fiscal year to date activity for an Investment 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. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $851,480,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $149,404 and repurchase agreements of $3,008) - See accompanying schedule: Unaffiliated issuers (cost $4,378,287) | $ 3,949,301 | |
Fidelity Central Funds (cost $497,988) | 497,988 | |
Other affiliated issuers (cost $842,240) | 306,891 | |
Total Investments (cost $5,718,515) | �� | $ 4,754,180 |
Cash | | 1 |
Receivable for fund shares sold | | 3,643 |
Dividends receivable | | 5,206 |
Distributions receivable from Fidelity Central Funds | | 316 |
Prepaid expenses | | 38 |
Other receivables | | 69 |
Total assets | | 4,763,453 |
| | |
Liabilities | | |
Payable for investments purchased | $ 162,292 | |
Payable for fund shares redeemed | 6,986 | |
Accrued management fee | 1,408 | |
Other affiliated payables | 1,152 | |
Other payables and accrued expenses | 113 | |
Collateral on securities loaned, at value | 155,763 | |
Total liabilities | | 327,714 |
| | |
Net Assets | | $ 4,435,739 |
Net Assets consist of: | | |
Paid in capital | | $ 6,674,421 |
Distributions in excess of net investment income | | (10,552) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,263,823) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (964,307) |
Net Assets | | $ 4,435,739 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Capital Appreciation:
Net Asset Value, offering price and redemption price per share ($4,204,612 ÷ 261,191 shares) | | $ 16.10 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($231,127 ÷ 14,359 shares) | | $ 16.10 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 21,648 |
Income from Fidelity Central Funds | | 2,799 |
Total income | | 24,447 |
| | |
Expenses | | |
Management fee
Basic fee | $ 11,979 | |
Performance adjustment | (4,055) | |
Transfer agent fees | 6,345 | |
Accounting and security lending fees | 567 | |
Custodian fees and expenses | 45 | |
Independent trustees' compensation | 16 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 50 | |
Audit | 37 | |
Legal | 12 | |
Miscellaneous | 45 | |
Total expenses before reductions | 15,040 | |
Expense reductions | (20) | 15,020 |
Net investment income (loss) | | 9,427 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (359,984) | |
Other affiliated issuers | (18,645) | |
Foreign currency transactions | (380) | |
Total net realized gain (loss) | | (379,009) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 216,330 | |
Assets and liabilities in foreign currencies | 15 | |
Total change in net unrealized appreciation (depreciation) | | 216,345 |
Net gain (loss) | | (162,664) |
Net increase (decrease) in net assets resulting from operations | | $ (153,237) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,427 | $ 51,617 |
Net realized gain (loss) | (379,009) | (879,245) |
Change in net unrealized appreciation (depreciation) | 216,345 | (3,329,781) |
Net increase (decrease) in net assets resulting from operations | (153,237) | (4,157,409) |
Distributions to shareholders from net investment income | (53,246) | (37,706) |
Distributions to shareholders from net realized gain | - | (697,557) |
Total distributions | (53,246) | (735,263) |
Share transactions - net increase (decrease) | (244,546) | (359,868) |
Total increase (decrease) in net assets | (451,029) | (5,252,540) |
| | |
Net Assets | | |
Beginning of period | 4,886,768 | 10,139,308 |
End of period (including distributions in excess of net investment income of $10,552 and undistributed net investment income of $33,456, respectively) | $ 4,435,739 | $ 4,886,768 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Capital Appreciation
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 | $ 25.05 | $ 23.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .16 | .11 | .10 | (.01) H | (.03) |
Net realized and unrealized gain (loss) | (.43) | (13.27) | 6.06 | 3.55 | 2.40 | 1.58 |
Total from investment operations | (.40) | (13.11) | 6.17 | 3.65 | 2.39 | 1.55 |
Distributions from net investment income | (.18) | (.12) | (.11) | - | (.01) | (.01) |
Distributions from net realized gain | - | (2.22) | (1.34) | (2.46) | (1.21) | (.02) |
Total distributions | (.18) | (2.34) | (1.45) | (2.46) | (1.22) | (.03) |
Net asset value, end of period | $ 16.10 | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 | $ 25.05 |
Total Return B, C, D | (2.30)% | (43.80)% | 23.51% | 14.70% | 9.66% | 6.60% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before reductions | .72% A | .82% | .83% | .91% | .94% | .94% |
Expenses net of fee waivers, if any | .72% A | .82% | .83% | .91% | .94% | .94% |
Expenses net of all reductions | .72% A | .82% | .82% | .87% | .90% | .91% |
Net investment income (loss) | .44% A | .67% | .36% | .36% | (.05)%H | (.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,205 | $ 4,794 | $ 10,139 | $ 8,353 | $ 6,970 | $ 5,861 |
Portfolio turnover rate G | 268% A | 157% | 135% | 198% | 109% | 72% |
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 Total returns do not include the effect of the former contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.19)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 16.69 | $ 25.11 |
Income from Investment Operations | | |
Net investment income (loss) D | .05 | .03 |
Net realized and unrealized gain (loss) | (.42) | (8.45) |
Total from investment operations | (.37) | (8.42) |
Distributions from net investment income | (.22) | - |
Net asset value, end of period | $ 16.10 | $ 16.69 |
Total Return B, C | (2.14)% | (33.53)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .47% A | .66% A |
Expenses net of fee waivers, if any | .47% A | .66% A |
Expenses net of all reductions | .47% A | .65% A |
Net investment income (loss) | .69% A | .41% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 231 | $ 93 |
Portfolio turnover rate F | 268% A | 157% |
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 s hare 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 October 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 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Capital Appreciation Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Capital Appreciation 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 Capital Appreciation and Class K to eligible shareholders of Capital Appreciation. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended October 30, 2008, dividend income has been reduced $15,065,483 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
return of the Fund. 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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 385,690 |
Unrealized depreciation | (1,393,281) |
Net unrealized appreciation (depreciation) | $ (1,007,591) |
Cost for federal income tax purposes | $ 5,761,771 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities other short-term securities, aggregated $5,298,114 and $5,228,833, 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 .27% 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 retail class of the Fund, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .38% 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 Capital Appreciation. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Capital Appreciation | $ 6,299 | .31 |
Class K | 46 | .06 |
| $ 6,345 | |
* Annualized
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 $133 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 $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual 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 $1,085.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Capital Appreciation's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
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 $16 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008A |
From net investment income | | |
Capital Appreciation | $ 51,797 | $ 37,706 |
Class K | 1,450 | - |
Total | $ 53,246 | $ 37,706 |
From net realized gain | | |
Capital Appreciation | $ - | $ 697,557 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2009 | Year ended
October 31,
2008A | Six months ended April 30,
2009 | Year ended
October 31,
2008A |
Capital Appreciation | | | | |
Shares sold | 27,286 | 47,342 | $ 406,573 | $ 1,138,810 |
Conversion to Class K | (8,524) | (5,674) | (127,930) | (112,685) |
Reinvestment of
distributions | 3,319 | 24,939 | 49,955 | 706,511 |
Shares redeemed | (48,345) | (94,744) | (705,229) | (2,202,870) |
Net increase (decrease) | (26,264) | (28,137) | $ (376,631) | $ (470,234) |
Class K | | | | |
Shares sold | 1,514 | 115 | $ 21,904 | $ 1,993 |
Conversion from Capital Appreciation | 8,530 | 5,669 | 127,928 | 112,685 |
Reinvestment of
distributions | 96 | - | 1,450 | - |
Shares redeemed | (1,325) | (240) | (19,188) | (4,312) |
Net increase (decrease) | 8,815 | 5,544 | $ 132,085 | $ 110,366 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity 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
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
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Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
CAF-K-USAN-0609
1.863092.100
Fidelity®
Disciplined Equity
Fund
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Disciplined Equity | .89% | | | |
Actual | | $ 1,000.00 | $ 897.70 | $ 4.19 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 899.10 | $ 2.97 |
HypotheticalA | | $ 1,000.00 | $ 1,021.67 | $ 3.16 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Hewlett-Packard Co. | 4.1 | 4.1 |
Pfizer, Inc. | 4.0 | 3.1 |
Exxon Mobil Corp. | 3.4 | 1.0 |
JPMorgan Chase & Co. | 3.1 | 4.7 |
Northrop Grumman Corp. | 3.1 | 3.1 |
Altria Group, Inc. | 3.0 | 3.3 |
ConocoPhillips | 2.9 | 4.0 |
Amgen, Inc. | 2.8 | 1.0 |
McDonald's Corp. | 2.2 | 3.6 |
Cisco Systems, Inc. | 2.1 | 0.0 |
| 30.7 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.5 | 15.7 |
Health Care | 12.0 | 13.7 |
Financials | 11.7 | 15.4 |
Energy | 11.7 | 13.1 |
Consumer Staples | 11.6 | 12.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009* | As of October 31, 2008** |
| Stocks and
Equity Futures 99.2% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 0.8% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 9.1% | | ** Foreign investments | 8.3% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 8.8% |
Diversified Consumer Services - 1.1% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 1,600,000 | | $ 100,720 |
Hotels, Restaurants & Leisure - 2.5% |
Darden Restaurants, Inc. | 700,000 | | 25,879 |
McDonald's Corp. | 3,700,000 | | 197,173 |
WMS Industries, Inc. (a) | 160,200 | | 5,144 |
| | 228,196 |
Household Durables - 0.5% |
Leggett & Platt, Inc. | 901,800 | | 12,950 |
Whirlpool Corp. | 600,000 | | 27,096 |
| | 40,046 |
Leisure Equipment & Products - 0.3% |
Hasbro, Inc. | 1,000,000 | | 26,660 |
Media - 1.8% |
Comcast Corp. Class A (special) (non-vtg.) | 6,500,000 | | 95,420 |
The Walt Disney Co. | 1,000,000 | | 21,900 |
Virgin Media, Inc. | 5,900,000 | | 45,548 |
| | 162,868 |
Specialty Retail - 1.9% |
AutoZone, Inc. (a) | 600,000 | | 99,834 |
Best Buy Co., Inc. | 1,200,000 | | 46,056 |
Home Depot, Inc. | 900,000 | | 23,688 |
| | 169,578 |
Textiles, Apparel & Luxury Goods - 0.7% |
Polo Ralph Lauren Corp. Class A | 600,000 | | 32,304 |
VF Corp. | 500,000 | | 29,635 |
| | 61,939 |
TOTAL CONSUMER DISCRETIONARY | | 790,007 |
CONSUMER STAPLES - 11.6% |
Beverages - 1.8% |
Anheuser-Busch InBev NV (d) | 3,547,300 | | 108,562 |
Coca-Cola Enterprises, Inc. | 1,155,924 | | 19,720 |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 3,100,000 | | 35,929 |
| | 164,211 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 3.5% |
Kroger Co. | 7,700,000 | | $ 166,474 |
Wal-Mart Stores, Inc. | 2,900,000 | | 146,160 |
| | 312,634 |
Food Products - 0.8% |
Archer Daniels Midland Co. | 2,800,000 | | 68,936 |
Household Products - 2.2% |
Energizer Holdings, Inc. (a) | 400,000 | | 22,920 |
Procter & Gamble Co. | 3,500,000 | | 173,040 |
| | 195,960 |
Tobacco - 3.3% |
Altria Group, Inc. | 16,250,000 | | 265,363 |
Lorillard, Inc. | 500,000 | | 31,565 |
| | 296,928 |
TOTAL CONSUMER STAPLES | | 1,038,669 |
ENERGY - 11.7% |
Energy Equipment & Services - 0.6% |
Noble Corp. | 1,900,000 | | 51,927 |
Oil, Gas & Consumable Fuels - 11.1% |
Chevron Corp. | 2,300,000 | | 152,030 |
ConocoPhillips | 6,347,268 | | 260,238 |
Exxon Mobil Corp. | 4,550,000 | | 303,349 |
Holly Corp. | 400,000 | | 8,384 |
Marathon Oil Corp. | 2,800,000 | | 83,160 |
Sunoco, Inc. | 1,100,000 | | 29,161 |
Tesoro Corp. | 3,100,000 | | 47,275 |
Valero Energy Corp. | 5,900,000 | | 117,056 |
| | 1,000,653 |
TOTAL ENERGY | | 1,052,580 |
FINANCIALS - 11.7% |
Capital Markets - 0.3% |
Morgan Stanley | 1,000,000 | | 23,640 |
Commercial Banks - 1.7% |
BB&T Corp. (d) | 2,115,177 | | 49,368 |
Wells Fargo & Co. | 5,394,150 | | 107,937 |
| | 157,305 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 4.4% |
Bank of America Corp. | 9,000,000 | | $ 80,370 |
IntercontinentalExchange, Inc. (a) | 300,000 | | 26,280 |
JPMorgan Chase & Co. | 8,500,000 | | 280,500 |
KKR Financial Holdings LLC | 6,173,412 | | 8,334 |
| | 395,484 |
Insurance - 5.0% |
ACE Ltd. | 1,900,000 | | 88,008 |
Aspen Insurance Holdings Ltd. | 243,900 | | 5,751 |
Berkshire Hathaway, Inc. Class B (a) | 48,330 | | 148,131 |
Everest Re Group Ltd. | 200,000 | | 14,928 |
PartnerRe Ltd. | 200,000 | | 13,638 |
Platinum Underwriters Holdings Ltd. | 600,000 | | 17,262 |
RenaissanceRe Holdings Ltd. | 200,000 | | 9,732 |
The Travelers Companies, Inc. | 3,100,000 | | 127,534 |
Unum Group | 1,800,000 | | 29,412 |
| | 454,396 |
Real Estate Investment Trusts - 0.3% |
General Growth Properties, Inc. (d)(e) | 17,644,857 | | 11,116 |
ProLogis Trust | 1,500,000 | | 13,665 |
| | 24,781 |
TOTAL FINANCIALS | | 1,055,606 |
HEALTH CARE - 12.0% |
Biotechnology - 3.3% |
Amgen, Inc. (a) | 5,200,000 | | 252,044 |
Cephalon, Inc. (a) | 600,000 | | 39,366 |
| | 291,410 |
Health Care Equipment & Supplies - 0.4% |
Hospira, Inc. (a) | 800,000 | | 26,296 |
Inverness Medical Innovations, Inc. (a) | 300,000 | | 9,687 |
| | 35,983 |
Health Care Providers & Services - 0.4% |
AmerisourceBergen Corp. | 700,000 | | 23,548 |
Humana, Inc. (a) | 500,000 | | 14,390 |
| | 37,938 |
Pharmaceuticals - 7.9% |
AstraZeneca PLC sponsored ADR | 2,300,000 | | 80,431 |
Johnson & Johnson | 3,400,000 | | 178,024 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Mylan, Inc. (a) | 2,000,000 | | $ 26,500 |
Pfizer, Inc. | 27,000,000 | | 360,720 |
Schering-Plough Corp. | 1,000,000 | | 23,020 |
Watson Pharmaceuticals, Inc. (a) | 1,300,000 | | 40,222 |
| | 708,917 |
TOTAL HEALTH CARE | | 1,074,248 |
INDUSTRIALS - 10.5% |
Aerospace & Defense - 6.7% |
Alliant Techsystems, Inc. (a) | 300,000 | | 23,895 |
BAE Systems PLC | 17,500,000 | | 92,020 |
Goodrich Corp. | 500,000 | | 22,140 |
Honeywell International, Inc. | 1,100,000 | | 34,331 |
Lockheed Martin Corp. | 500,000 | | 39,265 |
Northrop Grumman Corp. | 5,750,000 | | 278,013 |
United Technologies Corp. | 2,300,000 | | 112,332 |
| | 601,996 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 3,576,459 | | 22,067 |
Electrical Equipment - 0.2% |
Cooper Industries Ltd. Class A | 400,000 | | 13,116 |
Industrial Conglomerates - 2.5% |
General Electric Co. | 10,500,000 | | 132,825 |
Tyco International Ltd. | 3,842,483 | | 91,297 |
| | 224,122 |
Machinery - 0.9% |
Navistar International Corp. (a) | 2,123,700 | | 80,276 |
TOTAL INDUSTRIALS | | 941,577 |
INFORMATION TECHNOLOGY - 18.5% |
Communications Equipment - 2.6% |
Cisco Systems, Inc. (a) | 10,000,000 | | 193,200 |
Tellabs, Inc. (a) | 7,000,000 | | 36,680 |
ViaSat, Inc. (a) | 400,000 | | 9,196 |
| | 239,076 |
Computers & Peripherals - 7.9% |
Apple, Inc. (a) | 500,000 | | 62,915 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
Hewlett-Packard Co. | 10,200,000 | | $ 366,994 |
International Business Machines Corp. | 1,200,000 | | 123,852 |
NCR Corp. (a) | 754,957 | | 7,663 |
Western Digital Corp. (a) | 6,300,000 | | 148,176 |
| | 709,600 |
IT Services - 2.4% |
Accenture Ltd. Class A | 1,495,940 | | 44,026 |
Affiliated Computer Services, Inc. Class A (a) | 1,600,000 | | 77,408 |
Computer Sciences Corp. (a) | 800,000 | | 29,568 |
Fidelity National Information Services, Inc. | 3,000,000 | | 53,550 |
SAIC, Inc. (a) | 500,000 | | 9,050 |
| | 213,602 |
Semiconductors & Semiconductor Equipment - 0.6% |
Intel Corp. | 3,500,000 | | 55,230 |
Software - 5.0% |
Microsoft Corp. | 7,900,000 | | 160,054 |
Sybase, Inc. (a)(e) | 5,200,000 | | 176,592 |
Symantec Corp. (a) | 5,900,000 | | 101,775 |
Synopsys, Inc. (a) | 400,000 | | 8,712 |
| | 447,133 |
TOTAL INFORMATION TECHNOLOGY | | 1,664,641 |
MATERIALS - 3.3% |
Chemicals - 0.4% |
Terra Industries, Inc. | 1,255,000 | | 33,258 |
Containers & Packaging - 0.5% |
Pactiv Corp. (a) | 1,000,000 | | 21,860 |
Rock-Tenn Co. Class A | 747,055 | | 28,209 |
| | 50,069 |
Metals & Mining - 2.4% |
ArcelorMittal SA (NY Shares) Class A (d) | 5,700,000 | | 134,406 |
Newmont Mining Corp. | 2,000,000 | | 80,480 |
| | 214,886 |
TOTAL MATERIALS | | 298,213 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 3.6% |
Diversified Telecommunication Services - 2.9% |
AT&T, Inc. | 3,100,000 | | $ 79,422 |
CenturyTel, Inc. | 800,000 | | 21,720 |
Embarq Corp. | 1,600,000 | | 58,496 |
Level 3 Communications, Inc. (a) | 11,000,000 | | 12,320 |
Qwest Communications International, Inc. | 6,800,000 | | 26,452 |
Verizon Communications, Inc. | 2,080,900 | | 63,135 |
| | 261,545 |
Wireless Telecommunication Services - 0.7% |
Centennial Communications Corp. Class A (a) | 2,000,000 | | 16,540 |
Vodafone Group PLC sponsored ADR | 2,500,000 | | 45,875 |
| | 62,415 |
TOTAL TELECOMMUNICATION SERVICES | | 323,960 |
UTILITIES - 4.1% |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 8,700,000 | | 61,509 |
NRG Energy, Inc. (a) | 6,250,000 | | 112,375 |
| | 173,884 |
Multi-Utilities - 2.2% |
CMS Energy Corp. | 5,800,000 | | 69,716 |
PG&E Corp. | 2,250,000 | | 83,520 |
Sempra Energy | 800,000 | | 36,816 |
Wisconsin Energy Corp. | 200,000 | | 7,992 |
| | 198,044 |
TOTAL UTILITIES | | 371,928 |
TOTAL COMMON STOCKS (Cost $9,130,697) | 8,611,429 |
U.S. Treasury Obligations - 0.6% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.15% to 0.22% 5/14/09 to 5/28/09 (f)
(Cost $50,295) | $ 50,300 | | 50,299 |
Money Market Funds - 5.5% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 248,707,129 | | $ 248,707 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 246,469,250 | | 246,469 |
TOTAL MONEY MARKET FUNDS (Cost $495,176) | 495,176 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $9,676,168) | | 9,156,904 |
NET OTHER ASSETS - (1.9)% | | (172,172) |
NET ASSETS - 100% | $ 8,984,732 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
7,033 CME E-mini S&P 500 Index Contracts | June 2009 | | $ 305,936 | | $ 10,059 |
The face value of futures purchased as a percentage of net assets - 3.4% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $29,550,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 616 |
Fidelity Securities Lending Cash Central Fund | 595 |
Total | $ 1,211 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
General Growth Properties, Inc. | $ - | $ 25,227 | $ 5,819 | $ - | $ 11,116 |
Sybase, Inc. | 106,520 | 35,182 | - | - | 176,592 |
Western Digital Corp. | 202,950 | 19,008 | 111,321 | - | - |
Total | $ 309,470 | $ 79,417 | $ 117,140 | $ - | $ 187,708 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 9,156,904 | $ 8,906,023 | $ 250,881 | $ - |
Other Financial Instruments* | $ 10,059 | $ 10,059 | $ - | $ - |
*Other financial instruments include Futures Contracts. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $1,901,584,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $238,892) - See accompanying schedule: Unaffiliated issuers (cost $9,008,786) | $ 8,474,020 | |
Fidelity Central Funds (cost $495,176) | 495,176 | |
Other affiliated issuers (cost $172,206) | 187,708 | |
Total Investments (cost $9,676,168) | | $ 9,156,904 |
Receivable for investments sold | | 235,170 |
Receivable for fund shares sold | | 3,480 |
Dividends receivable | | 9,411 |
Distributions receivable from Fidelity Central Funds | | 278 |
Receivable for daily variation on futures contracts | | 220 |
Prepaid expenses | | 75 |
Other receivables | | 131 |
Total assets | | 9,405,669 |
| | |
Liabilities | | |
Payable for investments purchased | $ 161,098 | |
Payable for fund shares redeemed | 2,632 | |
Accrued management fee | 3,773 | |
Other affiliated payables | 2,352 | |
Other payables and accrued expenses | 4,613 | |
Collateral on securities loaned, at value | 246,469 | |
Total liabilities | | 420,937 |
| | |
Net Assets | | $ 8,984,732 |
Net Assets consist of: | | |
Paid in capital | | $ 13,972,856 |
Undistributed net investment income | | 38,942 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,513,434) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (513,632) |
Net Assets | | $ 8,984,732 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Disciplined Equity:
Net Asset Value, offering price and redemption price per share ($8,811,189 ÷ 530,649.3 shares) | | $ 16.60 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($173,543 ÷ 10,451.4 shares) | | $ 16.60 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 107,764 |
Interest | | 35 |
Income from Fidelity Central Funds | | 1,211 |
Total income | | 109,010 |
| | |
Expenses | | |
Management fee
Basic fee | $ 24,595 | |
Performance adjustment | (912) | |
Transfer agent fees | 13,395 | |
Accounting and security lending fees | 682 | |
Custodian fees and expenses | 100 | |
Independent trustees' compensation | 34 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 64 | |
Audit | 49 | |
Legal | 22 | |
Miscellaneous | 82 | |
Total expenses before reductions | 38,110 | |
Expense reductions | (69) | 38,041 |
Net investment income (loss) | | 70,969 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (2,407,977) | |
Other affiliated issuers | (102,417) | |
Foreign currency transactions | 708 | |
Futures contracts | 14,533 | |
Total net realized gain (loss) | | (2,495,153) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,440,368 | |
Assets and liabilities in foreign currencies | 26 | |
Futures contracts | 10,059 | |
Total change in net unrealized appreciation (depreciation) | | 1,450,453 |
Net gain (loss) | | (1,044,700) |
Net increase (decrease) in net assets resulting from operations | | $ (973,731) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 70,969 | $ 131,895 |
Net realized gain (loss) | (2,495,153) | (1,999,016) |
Change in net unrealized appreciation (depreciation) | 1,450,453 | (3,637,959) |
Net increase (decrease) in net assets resulting from operations | (973,731) | (5,505,080) |
Distributions to shareholders from net investment income | (134,965) | (93,304) |
Distributions to shareholders from net realized gain | - | (872,035) |
Total distributions | (134,965) | (965,339) |
Share transactions - net increase (decrease) | 240,455 | 4,841,711 |
Total increase (decrease) in net assets | (868,241) | (1,628,708) |
| | |
Net Assets | | |
Beginning of period | 9,852,973 | 11,481,681 |
End of period (including undistributed net investment income of $38,942 and undistributed net investment income of $102,938, respectively) | $ 8,984,732 | $ 9,852,973 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Disciplined Equity
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 | $ 23.41 | $ 21.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .13 | .29 | .27 | .22 | .20 G | .12 |
Net realized and unrealized gain (loss) | (2.05) | (12.19) | 4.95 | 4.08 | 3.28 | 1.62 |
Total from investment operations | (1.92) | (11.90) | 5.22 | 4.30 | 3.48 | 1.74 |
Distributions from net investment income | (.26) | (.26) | (.19) | (.18) | (.18) | (.11) |
Distributions from net realized gain | - | (2.43) | (2.49) | - | - | - |
Total distributions | (.26) | (2.69) | (2.68) | (.18) | (.18) | (.11) |
Net asset value, end of period | $ 16.60 | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 | $ 23.41 |
Total Return B, C | (10.23)% | (38.68)% | 18.42% | 16.16% | 14.92% | 8.03% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .89% A | .87% | .91% | .92% | .89% | .89% |
Expenses net of fee waivers, if any | .89% A | .87% | .91% | .92% | .89% | .89% |
Expenses net of all reductions | .88% A | .87% | .90% | .91% | .87% | .88% |
Net investment income (loss) | 1.64% A | 1.10% | .88% | .76% | .79%G | .51% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 8,811 | $ 9,804 | $ 11,482 | $ 7,694 | $ 5,845 | $ 4,467 |
Portfolio turnover rate F | 192% A | 186% | 152% | 98% | 80% | 42% |
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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 18.79 | $ 27.38 |
Income from Investment Operations | | |
Net investment income (loss) D | .15 | .12 |
Net realized and unrealized gain (loss) | (2.05) | (8.71) |
Total from investment operations | (1.90) | (8.59) |
Distributions from net investment income | (.29) | - |
Net asset value, end of period | $ 16.60 | $ 18.79 |
Total Return B, C | (10.09)% | (31.37)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .63% A | .71% A |
Expenses net of fee waivers, if any | .63% A | .71% A |
Expenses net of all reductions | .63% A | .71% A |
Net investment income (loss) | 1.89% A | 1.30% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 174 | $ 49 |
Portfolio turnover rate F | 192% A | 186% |
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 October 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 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Disciplined Equity Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Disciplined Equity 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 Disciplined Equity and Class K to eligible shareholders of Disciplined Equity. 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. On January 15, 2009, the Board of Trustees of Fidelity Disciplined Equity Fund approved the creation of an additional class of shares. The Fund will commence sale of shares of Class F on or about June 26, 2009.
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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 554,590 |
Unrealized depreciation | (1,210,600) |
Net unrealized appreciation (depreciation) | $ (656,010) |
Cost for federal income tax purposes | $ 9,812,914 |
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Futures Contracts - continued
contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,283,229 and $8,399,801, 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 .27% 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 retail class of the Fund, Disciplined Equity, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .55% 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 Disciplined Equity. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Disciplined Equity | $ 13,350 | .31 |
Class K | 45 | .06 |
| $ 13,395 | |
* Annualized
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 $323 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 $27 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $595.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Disciplined Equity's operating expenses. During this period, this reimbursement reduced the class' expenses by $4.
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 $55 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $10.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Disciplined Equity | $ 132,354 | $ 93,304 |
Class K | 2,611 | - |
Total | $ 134,965 | $ 93,304 |
From net realized gain | | |
Disciplined Equity | $ - | $ 872,035 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 A | Six months ended
April 30,
2009 | Year ended
October 31,
2008 A |
Disciplined Equity | | | | |
Shares sold | 47,755 | 194,792 | $ 753,421 | $ 5,037,304 |
Conversion to Class K | (7,119) | (2,555) | (126,430) | (60,355) |
Reinvestment of distributions | 7,952 | 31,848 | 131,216 | 955,761 |
Shares redeemed | (40,072) | (45,999) | (655,635) | (1,152,480) |
Net increase (decrease) | 8,516 | 178,086 | $ 102,572 | $ 4,780,230 |
Class K | | | | |
Shares sold | 1,681 | 127 | $ 27,159 | $ 2,643 |
Conversion from Disciplined Equity | 7,115 | 2,553 | 126,430 | 60,355 |
Reinvestment of distributions | 158 | - | 2,611 | - |
Shares redeemed | (1,108) | (75) | (18,317) | (1,517) |
Net increase (decrease) | 7,846 | 2,605 | $ 137,883 | $ 61,481 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
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.
At the end of the period, Fidelity Freedom 2020 and Fidelity Freedom 2030 were the owners of record of approximately 17% and 14%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 70% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
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Fidelity Investments
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Merrimack, NH 03054-0500
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Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
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Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
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FDE-USAN-0609
1.784913.106
Fidelity®
Disciplined Equity
Fund -
Class K
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Disciplined Equity | .89% | | | |
Actual | | $ 1,000.00 | $ 897.70 | $ 4.19 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 899.10 | $ 2.97 |
HypotheticalA | | $ 1,000.00 | $ 1,021.67 | $ 3.16 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Hewlett-Packard Co. | 4.1 | 4.1 |
Pfizer, Inc. | 4.0 | 3.1 |
Exxon Mobil Corp. | 3.4 | 1.0 |
JPMorgan Chase & Co. | 3.1 | 4.7 |
Northrop Grumman Corp. | 3.1 | 3.1 |
Altria Group, Inc. | 3.0 | 3.3 |
ConocoPhillips | 2.9 | 4.0 |
Amgen, Inc. | 2.8 | 1.0 |
McDonald's Corp. | 2.2 | 3.6 |
Cisco Systems, Inc. | 2.1 | 0.0 |
| 30.7 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.5 | 15.7 |
Health Care | 12.0 | 13.7 |
Financials | 11.7 | 15.4 |
Energy | 11.7 | 13.1 |
Consumer Staples | 11.6 | 12.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009* | As of October 31, 2008** |
| Stocks and
Equity Futures 99.2% | | | Stocks 99.5% | |
| Short-Term
Investments and
Net Other Assets 0.8% | | | Short-Term
Investments and
Net Other Assets 0.5% | |
* Foreign investments | 9.1% | | ** Foreign investments | 8.3% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 8.8% |
Diversified Consumer Services - 1.1% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 1,600,000 | | $ 100,720 |
Hotels, Restaurants & Leisure - 2.5% |
Darden Restaurants, Inc. | 700,000 | | 25,879 |
McDonald's Corp. | 3,700,000 | | 197,173 |
WMS Industries, Inc. (a) | 160,200 | | 5,144 |
| | 228,196 |
Household Durables - 0.5% |
Leggett & Platt, Inc. | 901,800 | | 12,950 |
Whirlpool Corp. | 600,000 | | 27,096 |
| | 40,046 |
Leisure Equipment & Products - 0.3% |
Hasbro, Inc. | 1,000,000 | | 26,660 |
Media - 1.8% |
Comcast Corp. Class A (special) (non-vtg.) | 6,500,000 | | 95,420 |
The Walt Disney Co. | 1,000,000 | | 21,900 |
Virgin Media, Inc. | 5,900,000 | | 45,548 |
| | 162,868 |
Specialty Retail - 1.9% |
AutoZone, Inc. (a) | 600,000 | | 99,834 |
Best Buy Co., Inc. | 1,200,000 | | 46,056 |
Home Depot, Inc. | 900,000 | | 23,688 |
| | 169,578 |
Textiles, Apparel & Luxury Goods - 0.7% |
Polo Ralph Lauren Corp. Class A | 600,000 | | 32,304 |
VF Corp. | 500,000 | | 29,635 |
| | 61,939 |
TOTAL CONSUMER DISCRETIONARY | | 790,007 |
CONSUMER STAPLES - 11.6% |
Beverages - 1.8% |
Anheuser-Busch InBev NV (d) | 3,547,300 | | 108,562 |
Coca-Cola Enterprises, Inc. | 1,155,924 | | 19,720 |
Constellation Brands, Inc. Class A (sub. vtg.) (a) | 3,100,000 | | 35,929 |
| | 164,211 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food & Staples Retailing - 3.5% |
Kroger Co. | 7,700,000 | | $ 166,474 |
Wal-Mart Stores, Inc. | 2,900,000 | | 146,160 |
| | 312,634 |
Food Products - 0.8% |
Archer Daniels Midland Co. | 2,800,000 | | 68,936 |
Household Products - 2.2% |
Energizer Holdings, Inc. (a) | 400,000 | | 22,920 |
Procter & Gamble Co. | 3,500,000 | | 173,040 |
| | 195,960 |
Tobacco - 3.3% |
Altria Group, Inc. | 16,250,000 | | 265,363 |
Lorillard, Inc. | 500,000 | | 31,565 |
| | 296,928 |
TOTAL CONSUMER STAPLES | | 1,038,669 |
ENERGY - 11.7% |
Energy Equipment & Services - 0.6% |
Noble Corp. | 1,900,000 | | 51,927 |
Oil, Gas & Consumable Fuels - 11.1% |
Chevron Corp. | 2,300,000 | | 152,030 |
ConocoPhillips | 6,347,268 | | 260,238 |
Exxon Mobil Corp. | 4,550,000 | | 303,349 |
Holly Corp. | 400,000 | | 8,384 |
Marathon Oil Corp. | 2,800,000 | | 83,160 |
Sunoco, Inc. | 1,100,000 | | 29,161 |
Tesoro Corp. | 3,100,000 | | 47,275 |
Valero Energy Corp. | 5,900,000 | | 117,056 |
| | 1,000,653 |
TOTAL ENERGY | | 1,052,580 |
FINANCIALS - 11.7% |
Capital Markets - 0.3% |
Morgan Stanley | 1,000,000 | | 23,640 |
Commercial Banks - 1.7% |
BB&T Corp. (d) | 2,115,177 | | 49,368 |
Wells Fargo & Co. | 5,394,150 | | 107,937 |
| | 157,305 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 4.4% |
Bank of America Corp. | 9,000,000 | | $ 80,370 |
IntercontinentalExchange, Inc. (a) | 300,000 | | 26,280 |
JPMorgan Chase & Co. | 8,500,000 | | 280,500 |
KKR Financial Holdings LLC | 6,173,412 | | 8,334 |
| | 395,484 |
Insurance - 5.0% |
ACE Ltd. | 1,900,000 | | 88,008 |
Aspen Insurance Holdings Ltd. | 243,900 | | 5,751 |
Berkshire Hathaway, Inc. Class B (a) | 48,330 | | 148,131 |
Everest Re Group Ltd. | 200,000 | | 14,928 |
PartnerRe Ltd. | 200,000 | | 13,638 |
Platinum Underwriters Holdings Ltd. | 600,000 | | 17,262 |
RenaissanceRe Holdings Ltd. | 200,000 | | 9,732 |
The Travelers Companies, Inc. | 3,100,000 | | 127,534 |
Unum Group | 1,800,000 | | 29,412 |
| | 454,396 |
Real Estate Investment Trusts - 0.3% |
General Growth Properties, Inc. (d)(e) | 17,644,857 | | 11,116 |
ProLogis Trust | 1,500,000 | | 13,665 |
| | 24,781 |
TOTAL FINANCIALS | | 1,055,606 |
HEALTH CARE - 12.0% |
Biotechnology - 3.3% |
Amgen, Inc. (a) | 5,200,000 | | 252,044 |
Cephalon, Inc. (a) | 600,000 | | 39,366 |
| | 291,410 |
Health Care Equipment & Supplies - 0.4% |
Hospira, Inc. (a) | 800,000 | | 26,296 |
Inverness Medical Innovations, Inc. (a) | 300,000 | | 9,687 |
| | 35,983 |
Health Care Providers & Services - 0.4% |
AmerisourceBergen Corp. | 700,000 | | 23,548 |
Humana, Inc. (a) | 500,000 | | 14,390 |
| | 37,938 |
Pharmaceuticals - 7.9% |
AstraZeneca PLC sponsored ADR | 2,300,000 | | 80,431 |
Johnson & Johnson | 3,400,000 | | 178,024 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Mylan, Inc. (a) | 2,000,000 | | $ 26,500 |
Pfizer, Inc. | 27,000,000 | | 360,720 |
Schering-Plough Corp. | 1,000,000 | | 23,020 |
Watson Pharmaceuticals, Inc. (a) | 1,300,000 | | 40,222 |
| | 708,917 |
TOTAL HEALTH CARE | | 1,074,248 |
INDUSTRIALS - 10.5% |
Aerospace & Defense - 6.7% |
Alliant Techsystems, Inc. (a) | 300,000 | | 23,895 |
BAE Systems PLC | 17,500,000 | | 92,020 |
Goodrich Corp. | 500,000 | | 22,140 |
Honeywell International, Inc. | 1,100,000 | | 34,331 |
Lockheed Martin Corp. | 500,000 | | 39,265 |
Northrop Grumman Corp. | 5,750,000 | | 278,013 |
United Technologies Corp. | 2,300,000 | | 112,332 |
| | 601,996 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 3,576,459 | | 22,067 |
Electrical Equipment - 0.2% |
Cooper Industries Ltd. Class A | 400,000 | | 13,116 |
Industrial Conglomerates - 2.5% |
General Electric Co. | 10,500,000 | | 132,825 |
Tyco International Ltd. | 3,842,483 | | 91,297 |
| | 224,122 |
Machinery - 0.9% |
Navistar International Corp. (a) | 2,123,700 | | 80,276 |
TOTAL INDUSTRIALS | | 941,577 |
INFORMATION TECHNOLOGY - 18.5% |
Communications Equipment - 2.6% |
Cisco Systems, Inc. (a) | 10,000,000 | | 193,200 |
Tellabs, Inc. (a) | 7,000,000 | | 36,680 |
ViaSat, Inc. (a) | 400,000 | | 9,196 |
| | 239,076 |
Computers & Peripherals - 7.9% |
Apple, Inc. (a) | 500,000 | | 62,915 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - continued |
Hewlett-Packard Co. | 10,200,000 | | $ 366,994 |
International Business Machines Corp. | 1,200,000 | | 123,852 |
NCR Corp. (a) | 754,957 | | 7,663 |
Western Digital Corp. (a) | 6,300,000 | | 148,176 |
| | 709,600 |
IT Services - 2.4% |
Accenture Ltd. Class A | 1,495,940 | | 44,026 |
Affiliated Computer Services, Inc. Class A (a) | 1,600,000 | | 77,408 |
Computer Sciences Corp. (a) | 800,000 | | 29,568 |
Fidelity National Information Services, Inc. | 3,000,000 | | 53,550 |
SAIC, Inc. (a) | 500,000 | | 9,050 |
| | 213,602 |
Semiconductors & Semiconductor Equipment - 0.6% |
Intel Corp. | 3,500,000 | | 55,230 |
Software - 5.0% |
Microsoft Corp. | 7,900,000 | | 160,054 |
Sybase, Inc. (a)(e) | 5,200,000 | | 176,592 |
Symantec Corp. (a) | 5,900,000 | | 101,775 |
Synopsys, Inc. (a) | 400,000 | | 8,712 |
| | 447,133 |
TOTAL INFORMATION TECHNOLOGY | | 1,664,641 |
MATERIALS - 3.3% |
Chemicals - 0.4% |
Terra Industries, Inc. | 1,255,000 | | 33,258 |
Containers & Packaging - 0.5% |
Pactiv Corp. (a) | 1,000,000 | | 21,860 |
Rock-Tenn Co. Class A | 747,055 | | 28,209 |
| | 50,069 |
Metals & Mining - 2.4% |
ArcelorMittal SA (NY Shares) Class A (d) | 5,700,000 | | 134,406 |
Newmont Mining Corp. | 2,000,000 | | 80,480 |
| | 214,886 |
TOTAL MATERIALS | | 298,213 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 3.6% |
Diversified Telecommunication Services - 2.9% |
AT&T, Inc. | 3,100,000 | | $ 79,422 |
CenturyTel, Inc. | 800,000 | | 21,720 |
Embarq Corp. | 1,600,000 | | 58,496 |
Level 3 Communications, Inc. (a) | 11,000,000 | | 12,320 |
Qwest Communications International, Inc. | 6,800,000 | | 26,452 |
Verizon Communications, Inc. | 2,080,900 | | 63,135 |
| | 261,545 |
Wireless Telecommunication Services - 0.7% |
Centennial Communications Corp. Class A (a) | 2,000,000 | | 16,540 |
Vodafone Group PLC sponsored ADR | 2,500,000 | | 45,875 |
| | 62,415 |
TOTAL TELECOMMUNICATION SERVICES | | 323,960 |
UTILITIES - 4.1% |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 8,700,000 | | 61,509 |
NRG Energy, Inc. (a) | 6,250,000 | | 112,375 |
| | 173,884 |
Multi-Utilities - 2.2% |
CMS Energy Corp. | 5,800,000 | | 69,716 |
PG&E Corp. | 2,250,000 | | 83,520 |
Sempra Energy | 800,000 | | 36,816 |
Wisconsin Energy Corp. | 200,000 | | 7,992 |
| | 198,044 |
TOTAL UTILITIES | | 371,928 |
TOTAL COMMON STOCKS (Cost $9,130,697) | 8,611,429 |
U.S. Treasury Obligations - 0.6% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.15% to 0.22% 5/14/09 to 5/28/09 (f)
(Cost $50,295) | $ 50,300 | | 50,299 |
Money Market Funds - 5.5% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 248,707,129 | | $ 248,707 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 246,469,250 | | 246,469 |
TOTAL MONEY MARKET FUNDS (Cost $495,176) | 495,176 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $9,676,168) | | 9,156,904 |
NET OTHER ASSETS - (1.9)% | | (172,172) |
NET ASSETS - 100% | $ 8,984,732 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
7,033 CME E-mini S&P 500 Index Contracts | June 2009 | | $ 305,936 | | $ 10,059 |
The face value of futures purchased as a percentage of net assets - 3.4% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $29,550,000. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 616 |
Fidelity Securities Lending Cash Central Fund | 595 |
Total | $ 1,211 |
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
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
General Growth Properties, Inc. | $ - | $ 25,227 | $ 5,819 | $ - | $ 11,116 |
Sybase, Inc. | 106,520 | 35,182 | - | - | 176,592 |
Western Digital Corp. | 202,950 | 19,008 | 111,321 | - | - |
Total | $ 309,470 | $ 79,417 | $ 117,140 | $ - | $ 187,708 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 9,156,904 | $ 8,906,023 | $ 250,881 | $ - |
Other Financial Instruments* | $ 10,059 | $ 10,059 | $ - | $ - |
*Other financial instruments include Futures Contracts. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $1,901,584,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $238,892) - See accompanying schedule: Unaffiliated issuers (cost $9,008,786) | $ 8,474,020 | |
Fidelity Central Funds (cost $495,176) | 495,176 | |
Other affiliated issuers (cost $172,206) | 187,708 | |
Total Investments (cost $9,676,168) | | $ 9,156,904 |
Receivable for investments sold | | 235,170 |
Receivable for fund shares sold | | 3,480 |
Dividends receivable | | 9,411 |
Distributions receivable from Fidelity Central Funds | | 278 |
Receivable for daily variation on futures contracts | | 220 |
Prepaid expenses | | 75 |
Other receivables | | 131 |
Total assets | | 9,405,669 |
| | |
Liabilities | | |
Payable for investments purchased | $ 161,098 | |
Payable for fund shares redeemed | 2,632 | |
Accrued management fee | 3,773 | |
Other affiliated payables | 2,352 | |
Other payables and accrued expenses | 4,613 | |
Collateral on securities loaned, at value | 246,469 | |
Total liabilities | | 420,937 |
| | |
Net Assets | | $ 8,984,732 |
Net Assets consist of: | | |
Paid in capital | | $ 13,972,856 |
Undistributed net investment income | | 38,942 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,513,434) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (513,632) |
Net Assets | | $ 8,984,732 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Disciplined Equity:
Net Asset Value, offering price and redemption price per share ($8,811,189 ÷ 530,649.3 shares) | | $ 16.60 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($173,543 ÷ 10,451.4 shares) | | $ 16.60 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 107,764 |
Interest | | 35 |
Income from Fidelity Central Funds | | 1,211 |
Total income | | 109,010 |
| | |
Expenses | | |
Management fee
Basic fee | $ 24,595 | |
Performance adjustment | (912) | |
Transfer agent fees | 13,395 | |
Accounting and security lending fees | 682 | |
Custodian fees and expenses | 100 | |
Independent trustees' compensation | 34 | |
Depreciation in deferred trustee compensation account | (1) | |
Registration fees | 64 | |
Audit | 49 | |
Legal | 22 | |
Miscellaneous | 82 | |
Total expenses before reductions | 38,110 | |
Expense reductions | (69) | 38,041 |
Net investment income (loss) | | 70,969 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (2,407,977) | |
Other affiliated issuers | (102,417) | |
Foreign currency transactions | 708 | |
Futures contracts | 14,533 | |
Total net realized gain (loss) | | (2,495,153) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,440,368 | |
Assets and liabilities in foreign currencies | 26 | |
Futures contracts | 10,059 | |
Total change in net unrealized appreciation (depreciation) | | 1,450,453 |
Net gain (loss) | | (1,044,700) |
Net increase (decrease) in net assets resulting from operations | | $ (973,731) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 70,969 | $ 131,895 |
Net realized gain (loss) | (2,495,153) | (1,999,016) |
Change in net unrealized appreciation (depreciation) | 1,450,453 | (3,637,959) |
Net increase (decrease) in net assets resulting from operations | (973,731) | (5,505,080) |
Distributions to shareholders from net investment income | (134,965) | (93,304) |
Distributions to shareholders from net realized gain | - | (872,035) |
Total distributions | (134,965) | (965,339) |
Share transactions - net increase (decrease) | 240,455 | 4,841,711 |
Total increase (decrease) in net assets | (868,241) | (1,628,708) |
| | |
Net Assets | | |
Beginning of period | 9,852,973 | 11,481,681 |
End of period (including undistributed net investment income of $38,942 and undistributed net investment income of $102,938, respectively) | $ 8,984,732 | $ 9,852,973 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Disciplined Equity
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 | $ 23.41 | $ 21.78 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .13 | .29 | .27 | .22 | .20 G | .12 |
Net realized and unrealized gain (loss) | (2.05) | (12.19) | 4.95 | 4.08 | 3.28 | 1.62 |
Total from investment operations | (1.92) | (11.90) | 5.22 | 4.30 | 3.48 | 1.74 |
Distributions from net investment income | (.26) | (.26) | (.19) | (.18) | (.18) | (.11) |
Distributions from net realized gain | - | (2.43) | (2.49) | - | - | - |
Total distributions | (.26) | (2.69) | (2.68) | (.18) | (.18) | (.11) |
Net asset value, end of period | $ 16.60 | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 | $ 23.41 |
Total Return B, C | (10.23)% | (38.68)% | 18.42% | 16.16% | 14.92% | 8.03% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .89% A | .87% | .91% | .92% | .89% | .89% |
Expenses net of fee waivers, if any | .89% A | .87% | .91% | .92% | .89% | .89% |
Expenses net of all reductions | .88% A | .87% | .90% | .91% | .87% | .88% |
Net investment income (loss) | 1.64% A | 1.10% | .88% | .76% | .79%G | .51% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 8,811 | $ 9,804 | $ 11,482 | $ 7,694 | $ 5,845 | $ 4,467 |
Portfolio turnover rate F | 192% A | 186% | 152% | 98% | 80% | 42% |
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 Investment income per share reflects a special dividend which amounted to $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 18.79 | $ 27.38 |
Income from Investment Operations | | |
Net investment income (loss) D | .15 | .12 |
Net realized and unrealized gain (loss) | (2.05) | (8.71) |
Total from investment operations | (1.90) | (8.59) |
Distributions from net investment income | (.29) | - |
Net asset value, end of period | $ 16.60 | $ 18.79 |
Total Return B, C | (10.09)% | (31.37)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .63% A | .71% A |
Expenses net of fee waivers, if any | .63% A | .71% A |
Expenses net of all reductions | .63% A | .71% A |
Net investment income (loss) | 1.89% A | 1.30% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 174 | $ 49 |
Portfolio turnover rate F | 192% A | 186% |
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 October 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 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Disciplined Equity Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Disciplined Equity 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 Disciplined Equity and Class K to eligible shareholders of Disciplined Equity. 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. On January 15, 2009, the Board of Trustees of Fidelity Disciplined Equity Fund approved the creation of an additional class of shares. The Fund will commence sale of shares of Class F on or about June 26, 2009.
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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 554,590 |
Unrealized depreciation | (1,210,600) |
Net unrealized appreciation (depreciation) | $ (656,010) |
Cost for federal income tax purposes | $ 9,812,914 |
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Futures Contracts - continued
contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,283,229 and $8,399,801, 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 .27% 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 retail class of the Fund, Disciplined Equity, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .55% 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 Disciplined Equity. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Disciplined Equity | $ 13,350 | .31 |
Class K | 45 | .06 |
| $ 13,395 | |
* Annualized
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 $323 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 $27 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $595.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Disciplined Equity's operating expenses. During this period, this reimbursement reduced the class' expenses by $4.
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 $55 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $10.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Disciplined Equity | $ 132,354 | $ 93,304 |
Class K | 2,611 | - |
Total | $ 134,965 | $ 93,304 |
From net realized gain | | |
Disciplined Equity | $ - | $ 872,035 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 A | Six months ended
April 30,
2009 | Year ended
October 31,
2008 A |
Disciplined Equity | | | | |
Shares sold | 47,755 | 194,792 | $ 753,421 | $ 5,037,304 |
Conversion to Class K | (7,119) | (2,555) | (126,430) | (60,355) |
Reinvestment of distributions | 7,952 | 31,848 | 131,216 | 955,761 |
Shares redeemed | (40,072) | (45,999) | (655,635) | (1,152,480) |
Net increase (decrease) | 8,516 | 178,086 | $ 102,572 | $ 4,780,230 |
Class K | | | | |
Shares sold | 1,681 | 127 | $ 27,159 | $ 2,643 |
Conversion from Disciplined Equity | 7,115 | 2,553 | 126,430 | 60,355 |
Reinvestment of distributions | 158 | - | 2,611 | - |
Shares redeemed | (1,108) | (75) | (18,317) | (1,517) |
Net increase (decrease) | 7,846 | 2,605 | $ 137,883 | $ 61,481 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
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.
At the end of the period, Fidelity Freedom 2020 and Fidelity Freedom 2030 were the owners of record of approximately 17% and 14%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 70% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity 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. (FIIOC)
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
FDE-K-USAN-0609
1.863078.100
Fidelity®
Focused Stock
Fund
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 2009).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Actual | 1.00% | $ 1,000.00 | $ 895.10 | $ 4.70 |
Hypothetical (5% return per year before expenses) | | $ 1,000.00 | $ 1,019.84 | $ 5.01 |
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Union Pacific Corp. | 5.0 | 6.8 |
Google, Inc. Class A (sub. vtg.) | 4.9 | 4.3 |
QUALCOMM, Inc. | 4.4 | 2.3 |
Apple, Inc. | 4.4 | 4.0 |
JPMorgan Chase & Co. | 4.3 | 0.0 |
Gilead Sciences, Inc. | 4.1 | 1.5 |
Oracle Corp. | 4.0 | 3.7 |
Temple-Inland, Inc. | 3.6 | 0.0 |
Avnet, Inc. | 3.5 | 0.0 |
Express Scripts, Inc. | 3.1 | 0.0 |
| 41.3 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.4 | 17.4 |
Financials | 14.3 | 17.1 |
Health Care | 9.6 | 14.7 |
Energy | 9.6 | 5.6 |
Industrials | 9.5 | 11.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks 97.3% | | | Stocks 92.1% | |
 | Convertible
Securities 0.3% | |  | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 2.4% | | | Short-Term
Investments and
Net Other Assets 7.9% | |
* Foreign investments | 9.1% | | ** Foreign investments | 3.1% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.3% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.4% |
Auto Components - 2.3% |
BorgWarner, Inc. (d) | 123,300 | | $ 3,569,535 |
Hotels, Restaurants & Leisure - 0.7% |
McDonald's Corp. | 19,400 | | 1,033,826 |
Internet & Catalog Retail - 0.7% |
Amazon.com, Inc. (a) | 13,800 | | 1,111,176 |
Media - 1.7% |
The DIRECTV Group, Inc. (a) | 102,700 | | 2,539,771 |
Multiline Retail - 0.8% |
Kohl's Corp. (a) | 26,000 | | 1,179,100 |
Specialty Retail - 1.2% |
TJX Companies, Inc. | 64,000 | | 1,790,080 |
TOTAL CONSUMER DISCRETIONARY | | 11,223,488 |
CONSUMER STAPLES - 6.0% |
Beverages - 3.0% |
The Coca-Cola Co. | 104,100 | | 4,481,505 |
Food & Staples Retailing - 2.2% |
Wal-Mart Stores, Inc. | 47,400 | | 2,388,960 |
Walgreen Co. | 28,000 | | 880,040 |
| | 3,269,000 |
Tobacco - 0.8% |
Philip Morris International, Inc. | 34,700 | | 1,256,140 |
TOTAL CONSUMER STAPLES | | 9,006,645 |
ENERGY - 9.6% |
Energy Equipment & Services - 3.9% |
Noble Corp. | 82,000 | | 2,241,060 |
Schlumberger Ltd. (NY Shares) | 29,000 | | 1,420,710 |
Weatherford International Ltd. (a) | 130,000 | | 2,161,900 |
| | 5,823,670 |
Oil, Gas & Consumable Fuels - 5.7% |
Chevron Corp. | 31,200 | | 2,062,320 |
Southwestern Energy Co. (a) | 57,800 | | 2,072,708 |
Total SA sponsored ADR | 89,800 | | 4,464,856 |
| | 8,599,884 |
TOTAL ENERGY | | 14,423,554 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - 14.3% |
Capital Markets - 4.5% |
Deutsche Bank AG (NY Shares) | 51,000 | | $ 2,673,930 |
Morgan Stanley | 171,800 | | 4,061,352 |
| | 6,735,282 |
Commercial Banks - 3.7% |
Wells Fargo & Co. | 195,100 | | 3,903,951 |
Wilmington Trust Corp., Delaware | 122,000 | | 1,770,220 |
| | 5,674,171 |
Diversified Financial Services - 4.3% |
JPMorgan Chase & Co. | 196,300 | | 6,477,900 |
Insurance - 1.3% |
Fidelity National Financial, Inc. Class A | 107,000 | | 1,939,910 |
Real Estate Investment Trusts - 0.5% |
Simon Property Group, Inc. | 16,000 | | 825,600 |
TOTAL FINANCIALS | | 21,652,863 |
HEALTH CARE - 9.6% |
Biotechnology - 6.5% |
Biogen Idec, Inc. (a) | 24,900 | | 1,203,666 |
Cephalon, Inc. (a)(d) | 36,900 | | 2,421,009 |
Gilead Sciences, Inc. (a) | 133,000 | | 6,091,400 |
| | 9,716,075 |
Health Care Providers & Services - 3.1% |
Express Scripts, Inc. (a) | 74,000 | | 4,733,780 |
TOTAL HEALTH CARE | | 14,449,855 |
INDUSTRIALS - 9.4% |
Industrial Conglomerates - 1.4% |
General Electric Co. | 165,600 | | 2,094,840 |
Machinery - 3.0% |
Eaton Corp. | 60,000 | | 2,628,000 |
PACCAR, Inc. | 53,600 | | 1,899,584 |
| | 4,527,584 |
Road & Rail - 5.0% |
Union Pacific Corp. | 154,000 | | 7,567,560 |
TOTAL INDUSTRIALS | | 14,189,984 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - 30.4% |
Communications Equipment - 7.2% |
Cisco Systems, Inc. (a) | 216,700 | | $ 4,186,644 |
QUALCOMM, Inc. | 157,000 | | 6,644,240 |
| | 10,830,884 |
Computers & Peripherals - 5.8% |
Apple, Inc. (a) | 52,100 | | 6,555,743 |
International Business Machines Corp. | 20,900 | | 2,157,089 |
| | 8,712,832 |
Electronic Equipment & Components - 3.5% |
Avnet, Inc. (a) | 239,600 | | 5,244,844 |
Internet Software & Services - 4.9% |
Google, Inc. Class A (sub. vtg.) (a) | 18,750 | | 7,424,438 |
IT Services - 2.6% |
Hewitt Associates, Inc. Class A (a) | 38,000 | | 1,191,680 |
Visa, Inc. | 43,300 | | 2,812,768 |
| | 4,004,448 |
Semiconductors & Semiconductor Equipment - 2.0% |
Novellus Systems, Inc. (a) | 35,000 | | 632,100 |
Teradyne, Inc. (a) | 146,561 | | 870,572 |
Varian Semiconductor Equipment Associates, Inc. (a) | 58,000 | | 1,484,220 |
| | 2,986,892 |
Software - 4.4% |
Changyou.com Ltd. (A Shares) ADR | 18,400 | | 565,800 |
Oracle Corp. | 313,700 | | 6,066,958 |
| | 6,632,758 |
TOTAL INFORMATION TECHNOLOGY | | 45,837,096 |
MATERIALS - 8.4% |
Chemicals - 2.6% |
Celanese Corp. Class A | 61,150 | | 1,274,366 |
FMC Corp. | 53,500 | | 2,607,055 |
| | 3,881,421 |
Containers & Packaging - 4.2% |
Sealed Air Corp. | 48,000 | | 914,880 |
Temple-Inland, Inc. | 453,480 | | 5,414,551 |
| | 6,329,431 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - continued |
Metals & Mining - 1.6% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 56,400 | | $ 2,405,460 |
TOTAL MATERIALS | | 12,616,312 |
TELECOMMUNICATION SERVICES - 2.2% |
Wireless Telecommunication Services - 2.2% |
Sprint Nextel Corp. (a) | 778,100 | | 3,392,516 |
TOTAL COMMON STOCKS (Cost $134,936,340) | 146,792,313 |
Convertible Bonds - 0.3% |
| Principal Amount | | |
INDUSTRIALS - 0.1% |
Electrical Equipment - 0.1% |
Sunpower Corp. 4.75% 4/15/14 | | $ 100,000 | | 117,730 |
Industrial Conglomerates - 0.0% |
Textron, Inc. 4.5% 5/1/13 | | 60,000 | | 65,058 |
TOTAL INDUSTRIALS | | 182,788 |
MATERIALS - 0.2% |
Metals & Mining - 0.2% |
ArcelorMittal SA 5% 5/15/14 | | 80,000 | | 82,614 |
United States Steel Corp. 4% 5/15/14 | | 140,000 | | 149,450 |
| | 232,064 |
TOTAL CONVERTIBLE BONDS (Cost $380,000) | 414,852 |
Money Market Funds - 4.8% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.53% (b) | 5,100,914 | | $ 5,100,914 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 2,200,650 | | 2,200,650 |
TOTAL MONEY MARKET FUNDS (Cost $7,301,564) | 7,301,564 |
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $142,617,904) | | 154,508,729 |
NET OTHER ASSETS - (2.4)% | | (3,567,847) |
NET ASSETS - 100% | $ 150,940,882 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 56,546 |
Fidelity Securities Lending Cash Central Fund | 22,607 |
Total | $ 79,153 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 154,508,729 | $ 154,093,877 | $ 414,852 | $ - |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $15,579,109 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,172,249) - See accompanying schedule: Unaffiliated issuers (cost $135,316,340) | $ 147,207,165 | |
Fidelity Central Funds (cost $7,301,564) | 7,301,564 | |
Total Investments (cost $142,617,904) | | $ 154,508,729 |
Receivable for investments sold | | 12,219,306 |
Receivable for fund shares sold | | 199,830 |
Dividends receivable | | 77,822 |
Distributions receivable from Fidelity Central Funds | | 14,845 |
Prepaid expenses | | 716 |
Receivable from investment adviser for expense reductions | | 6,217 |
Total assets | | 167,027,465 |
| | |
Liabilities | | |
Payable for investments purchased | $ 13,550,512 | |
Payable for fund shares redeemed | 192,446 | |
Accrued management fee | 79,279 | |
Other affiliated payables | 41,696 | |
Other payables and accrued expenses | 22,000 | |
Collateral on securities loaned, at value | 2,200,650 | |
Total liabilities | | 16,086,583 |
| | |
Net Assets | | $ 150,940,882 |
Net Assets consist of: | | |
Paid in capital | | $ 185,276,847 |
Undistributed net investment income | | 324,002 |
Accumulated undistributed net realized gain (loss) on investments | | (46,550,791) |
Net unrealized appreciation (depreciation) on investments | | 11,890,824 |
Net Assets, for 17,301,898 shares outstanding | | $ 150,940,882 |
Net Asset Value, offering price and redemption price per share ($150,940,882 ÷ 17,301,898 shares) | | $ 8.72 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
| Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,177,079 |
Interest | | 753 |
Income from Fidelity Central Funds | | 79,153 |
Total income | | 1,256,985 |
| | |
Expenses | | |
Management fee
Basic fee | $ 348,436 | |
Performance adjustment | 57,628 | |
Transfer agent fees | 190,896 | |
Accounting and security lending fees | 24,294 | |
Custodian fees and expenses | 12,123 | |
Independent trustees' compensation | 428 | |
Registration fees | 22,545 | |
Audit | 24,954 | |
Legal | 609 | |
Miscellaneous | 875 | |
Total expenses before reductions | 682,788 | |
Expense reductions | (69,607) | 613,181 |
Net investment income (loss) | | 643,804 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (25,127,853) | |
Futures contracts | 191,494 | |
Total net realized gain (loss) | | (24,936,359) |
Change in net unrealized appreciation (depreciation) on investment securities | | 14,458,220 |
Net gain (loss) | | (10,478,139) |
Net increase (decrease) in net assets resulting from operations | | $ (9,834,335) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 643,804 | $ 609,241 |
Net realized gain (loss) | (24,936,359) | (21,255,088) |
Change in net unrealized appreciation (depreciation) | 14,458,220 | (15,569,157) |
Net increase (decrease) in net assets resulting from operations | (9,834,335) | (36,215,004) |
Distributions to shareholders from net investment income | (737,098) | (381,020) |
Distributions to shareholders from net realized gain | - | (8,191,933) |
Total distributions | (737,098) | (8,572,953) |
Share transactions
Proceeds from sales of shares | 102,162,514 | 86,028,487 |
Reinvestment of distributions | 708,416 | 8,220,938 |
Cost of shares redeemed | (38,228,947) | (49,979,322) |
Net increase (decrease) in net assets resulting from share transactions | 64,641,983 | 44,270,103 |
Total increase (decrease) in net assets | 54,070,550 | (517,854) |
| | |
Net Assets | | |
Beginning of period | 96,870,332 | 97,388,186 |
End of period (including undistributed net investment income of $324,002 and undistributed net investment income of $422,974, respectively) | $ 150,940,882 | $ 96,870,332 |
Other Information Shares | | |
Sold | 12,024,340 | 7,047,741 |
Issued in reinvestment of distributions | 80,593 | 613,503 |
Redeemed | (4,666,780) | (4,141,601) |
Net increase (decrease) | 7,438,153 | 3,519,643 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.82 | $ 15.35 | $ 12.32 | $ 11.37 | $ 9.14 | $ 8.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .09 | .06 | .01 G | .04 H | - K |
Net realized and unrealized gain (loss) | (1.07) | (4.27) | 2.98 | .98 | 2.22 | .87 |
Total from investment operations | (1.03) | (4.18) | 3.04 | .99 | 2.26 | .87 |
Distributions from net investment income | (.07) | (.06) | (.01) | (.04) | (.03) | (.02) |
Distributions from net realized gain | - | (1.29) | - | - | - | - |
Total distributions | (.07) | (1.35) | (.01) | (.04) | (.03) | (.02) |
Redemption fees added to paid in capital J | - | - | - | - D, K | - D, K | - D, K |
Net asset value, end of period | $ 8.72 | $ 9.82 | $ 15.35 | $ 12.32 | $ 11.37 | $ 9.14 |
Total Return B, C | (10.49)% | (29.58)% | 24.70% | 8.72% | 24.78% | 10.51% |
Ratios to Average Net Assets E, I | | | | | |
Expenses before reductions | 1.11% A | 1.20% | 1.20% | 1.08% | 1.01% | 1.07% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | 1.00% | 1.00% | 1.01% | 1.07% |
Expenses net of all reductions | 1.00% A | .99% | .99% | .98% | .98% | 1.02% |
Net investment income (loss) | 1.05% A | .70% | .47% | .12%G | .40%H | .01% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 150,941 | $ 96,870 | $ 97,388 | $ 88,908 | $ 110,255 | $ 38,873 |
Portfolio turnover rate F | 386% A | 491% | 343% | 202% | 158% | 201% |
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 Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .01%.
H Investment income per share reflects an in-kind dividend received in a corporate reorganization which amounted to $.02 per share. Excluding the in-kind dividend, the ratio of net investment income (loss) to average net assets would have been ..24%.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J The redemption fee was eliminated during the year ended October 31, 2006.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
1. Organization.
Fidelity Focused Stock Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Semiannual Report
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.
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 12,623,954 |
Unrealized depreciation | (8,456,204) |
Net unrealized appreciation (depreciation) | $ 4,167,750 |
Cost for federal income tax purposes | $ 150,340,979 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond and equity markets and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $286,394,239 and $217,592,071, 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 .27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± 20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .66% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .31% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $19,611 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit - continued
pay commitment fees on its pro-rata portion of the line of credit, which amounted to $346 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $22,607.
9. Expense Reductions.
FMR voluntarily agreed to reimburse the Fund to the extent annual operating expenses exceeded 1.00% of average net assets. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $69,607.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management &
Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors
(U.K.)
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc. (FIIOC)
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
TQG-USAN-0609
1.784914.106
Fidelity®
Small Cap Independence
Fund
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual 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, redemption fees, 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 (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Class A | .89% | | | |
Actual | | $ 1,000.00 | $ 959.10 | $ 4.32 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class T | 1.17% | | | |
Actual | | $ 1,000.00 | $ 959.40 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,018.99 | $ 5.86 |
Class B | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Small Cap Independence | .65% | | | |
Actual | | $ 1,000.00 | $ 961.50 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.57 | $ 3.26 |
Institutional Class | .54% | | | |
Actual | | $ 1,000.00 | $ 961.60 | $ 2.63 |
HypotheticalA | | $ 1,000.00 | $ 1,022.12 | $ 2.71 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
AirTran Holdings, Inc. | 2.1 | 1.1 |
Conceptus, Inc. | 1.7 | 1.4 |
Sunpower Corp. Class B | 1.6 | 0.0 |
Alaska Air Group, Inc. | 1.6 | 1.5 |
Wyndham Worldwide Corp. | 1.5 | 0.0 |
Rush Enterprises, Inc. Class A | 1.5 | 0.4 |
Life Technologies Corp. | 1.4 | 0.0 |
Janus Capital Group, Inc. | 1.2 | 0.8 |
Fourlis Holdings SA | 1.2 | 1.1 |
KLA-Tencor Corp. | 1.2 | 0.3 |
| 15.0 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 26.7 | 14.8 |
Industrials | 18.3 | 19.6 |
Financials | 15.4 | 17.4 |
Information Technology | 13.2 | 15.6 |
Health Care | 11.2 | 12.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Investment
Companies 99.6% | | | Stocks and
Investment
Companies 98.2% | |
| Short-Term
Investments and
Net Other Assets 0.4% | | | Short-Term
Investments and
Net Other Assets 1.8% | |
* Foreign investments | 12.8% | | ** Foreign investments | 13.7% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 26.7% |
Auto Components - 3.1% |
Autoliv, Inc. | 220,800 | | $ 5,447 |
BorgWarner, Inc. (d) | 310,300 | | 8,983 |
Federal-Mogul Corp. Class A (a) | 596,575 | | 6,622 |
Gentex Corp. | 844,100 | | 11,286 |
The Goodyear Tire & Rubber Co. (a) | 476,830 | | 5,240 |
| | 37,578 |
Diversified Consumer Services - 1.1% |
Coinstar, Inc. (a) | 369,588 | | 13,154 |
Hotels, Restaurants & Leisure - 6.6% |
Bally Technologies, Inc. (a) | 223,400 | | 5,849 |
Domino's Pizza, Inc. (a) | 738,100 | | 6,968 |
InterContinental Hotel Group PLC ADR (d) | 642,700 | | 6,086 |
Landry's Restaurants, Inc. (d) | 425,721 | | 3,891 |
Morgans Hotel Group Co. (a) | 891,064 | | 3,823 |
Morton's Restaurant Group, Inc. (a) | 613,849 | | 2,848 |
Penn National Gaming, Inc. (a) | 264,300 | | 8,991 |
Ruth's Chris Steak House, Inc. (a)(e) | 1,769,806 | | 6,407 |
Starwood Hotels & Resorts Worldwide, Inc. | 546,600 | | 11,402 |
Vail Resorts, Inc. (a) | 86,700 | | 2,532 |
WMS Industries, Inc. (a) | 133,658 | | 4,292 |
Wyndham Worldwide Corp. | 1,567,715 | | 18,311 |
| | 81,400 |
Household Durables - 3.7% |
Hooker Furniture Corp. | 128,564 | | 1,507 |
Lennar Corp. Class A | 61,100 | | 595 |
M.D.C. Holdings, Inc. | 168,900 | | 5,773 |
Meritage Homes Corp. (a) | 477,200 | | 9,931 |
Mohawk Industries, Inc. (a) | 222,900 | | 10,545 |
Pulte Homes, Inc. (d) | 1,105,200 | | 12,721 |
Ryland Group, Inc. | 226,600 | | 4,693 |
| | 45,765 |
Leisure Equipment & Products - 0.7% |
Brunswick Corp. | 1,401,800 | | 8,383 |
Media - 1.7% |
Discovery Communications, Inc. (a) | 402,900 | | 7,651 |
Global Sources Ltd. | 23,232 | | 103 |
Harte-Hanks, Inc. | 307,000 | | 2,536 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Lamar Advertising Co. Class A (a)(d) | 603,800 | | $ 10,204 |
Valassis Communications, Inc. (a) | 163,700 | | 846 |
| | 21,340 |
Specialty Retail - 8.6% |
American Eagle Outfitters, Inc. | 470,700 | | 6,976 |
AnnTaylor Stores Corp. (a) | 1,498,000 | | 11,070 |
AutoNation, Inc. (a) | 256,200 | | 4,537 |
Citi Trends, Inc. (a) | 239,400 | | 5,880 |
Fourlis Holdings SA | 1,283,430 | | 15,320 |
Gymboree Corp. (a) | 280,100 | | 9,635 |
Pacific Sunwear of California, Inc. (a) | 2,225,522 | | 9,013 |
Penske Auto Group, Inc. | 854,100 | | 11,317 |
SAZABY, Inc. | 78,100 | | 835 |
Shoe Carnival, Inc. (a) | 509,200 | | 5,937 |
Signet Jewelers Ltd. | 271,700 | | 4,312 |
The Men's Wearhouse, Inc. | 363,500 | | 6,776 |
Williams-Sonoma, Inc. | 843,700 | | 11,812 |
Zale Corp. (a)(d) | 555,204 | | 2,065 |
| | 105,485 |
Textiles, Apparel & Luxury Goods - 1.2% |
G-III Apparel Group Ltd. (a) | 463,400 | | 3,716 |
Liz Claiborne, Inc. | 1,422,500 | | 6,743 |
Ted Baker PLC | 727,900 | | 3,973 |
| | 14,432 |
TOTAL CONSUMER DISCRETIONARY | | 327,537 |
CONSUMER STAPLES - 0.8% |
Food & Staples Retailing - 0.1% |
Diedrich Coffee, Inc. (a) | 32,705 | | 318 |
Food Products - 0.7% |
Green Mountain Coffee Roasters, Inc. (a)(d) | 121,334 | | 8,774 |
TOTAL CONSUMER STAPLES | | 9,092 |
ENERGY - 7.1% |
Energy Equipment & Services - 1.3% |
Atwood Oceanics, Inc. (a) | 228,152 | | 5,092 |
Nabors Industries Ltd. (a) | 162,800 | | 2,476 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Energy Equipment & Services - continued |
Oil States International, Inc. (a) | 220,300 | | $ 4,164 |
Superior Energy Services, Inc. (a) | 219,500 | | 4,217 |
| | 15,949 |
Oil, Gas & Consumable Fuels - 5.8% |
Alpha Natural Resources, Inc. (a) | 212,000 | | 4,342 |
Cabot Oil & Gas Corp. | 364,600 | | 11,007 |
Encore Acquisition Co. (a) | 338,150 | | 9,871 |
EXCO Resources, Inc. (a) | 966,000 | | 11,379 |
Forest Oil Corp. (a) | 76,800 | | 1,229 |
Foundation Coal Holdings, Inc. | 483,800 | | 7,857 |
Goodrich Petroleum Corp. (a)(d) | 172,500 | | 3,955 |
Petrohawk Energy Corp. (a) | 250,000 | | 5,900 |
Plains Exploration & Production Co. (a) | 182,900 | | 3,451 |
Range Resources Corp. | 111,600 | | 4,461 |
Southwestern Energy Co. (a) | 155,700 | | 5,583 |
USEC, Inc. (a) | 440,100 | | 2,724 |
| | 71,759 |
TOTAL ENERGY | | 87,708 |
FINANCIALS - 15.4% |
Capital Markets - 3.8% |
Affiliated Managers Group, Inc. (a) | 190,900 | | 10,853 |
GLG Partners, Inc. warrants 12/28/11 (a) | 99,912 | | 7 |
Janus Capital Group, Inc. | 1,569,700 | | 15,744 |
optionsXpress Holdings, Inc. | 439,600 | | 7,236 |
Waddell & Reed Financial, Inc. Class A | 605,800 | | 13,576 |
| | 47,416 |
Commercial Banks - 4.4% |
Associated Banc-Corp. | 442,023 | | 6,838 |
Bank of Hawaii Corp. | 104,100 | | 3,658 |
Bank of the Ozarks, Inc. (d) | 275,500 | | 6,841 |
Boston Private Financial Holdings, Inc. | 1,237,900 | | 5,707 |
First Horizon National Corp. | 654,666 | | 7,535 |
First Midwest Bancorp, Inc., Delaware | 268,951 | | 2,383 |
KeyCorp | 911,500 | | 5,606 |
PacWest Bancorp | 383,900 | | 5,593 |
Prosperity Bancshares, Inc. | 166,211 | | 4,616 |
UMB Financial Corp. | 106,600 | | 4,879 |
| | 53,656 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.3% |
Gimv NV | 68,250 | | $ 3,404 |
India Hospitality Corp. (a) | 833,320 | | 103 |
| | 3,507 |
Insurance - 3.2% |
Allied World Assurance Co. Holdings Ltd. | 132,200 | | 4,910 |
Argo Group International Holdings, Ltd. (a) | 157,400 | | 4,406 |
Endurance Specialty Holdings Ltd. | 188,400 | | 4,929 |
Montpelier Re Holdings Ltd. | 325,424 | | 4,055 |
Platinum Underwriters Holdings Ltd. | 207,100 | | 5,958 |
W.R. Berkley Corp. | 183,600 | | 4,390 |
Willis Group Holdings Ltd. | 132,200 | | 3,637 |
XL Capital Ltd. Class A | 704,600 | | 6,701 |
| | 38,986 |
Real Estate Investment Trusts - 2.7% |
Corporate Office Properties Trust (SBI) | 242,000 | | 7,396 |
Host Hotels & Resorts, Inc. | 604,000 | | 4,645 |
Segro PLC | 22,779,900 | | 7,986 |
Simon Property Group, Inc. | 204,200 | | 10,537 |
SL Green Realty Corp. | 174,100 | | 3,075 |
| | 33,639 |
Real Estate Management & Development - 0.7% |
Jones Lang LaSalle, Inc. | 224,700 | | 7,251 |
Orchid Developments Group Ltd. (a) | 2,219,000 | | 1,427 |
| | 8,678 |
Thrifts & Mortgage Finance - 0.3% |
New York Community Bancorp, Inc. (d) | 318,900 | | 3,607 |
TOTAL FINANCIALS | | 189,489 |
HEALTH CARE - 11.2% |
Biotechnology - 1.4% |
Alnylam Pharmaceuticals, Inc. (a) | 32,300 | | 593 |
Cougar Biotechnology, Inc. (a) | 44,000 | | 1,536 |
Dendreon Corp. (a) | 122,600 | | 2,599 |
Myriad Genetics, Inc. (a) | 154,600 | | 5,997 |
Theravance, Inc. (a) | 463,800 | | 6,646 |
| | 17,371 |
Health Care Equipment & Supplies - 1.7% |
Conceptus, Inc. (a)(d)(e) | 1,556,553 | | 21,076 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - 2.6% |
Capital Senior Living Corp. (a) | 796,509 | | $ 3,146 |
CardioNet, Inc. (a) | 102,500 | | 2,127 |
Emeritus Corp. (a)(d) | 501,700 | | 4,535 |
Genoptix, Inc. (a) | 263,900 | | 7,674 |
Hanger Orthopedic Group, Inc. (a) | 621,800 | | 8,649 |
IPC The Hospitalist Co., Inc. (a) | 192,100 | | 3,521 |
Sun Healthcare Group, Inc. (a) | 194,642 | | 1,649 |
| | 31,301 |
Life Sciences Tools & Services - 4.3% |
Bruker BioSciences Corp. (a) | 1,763,800 | | 11,606 |
Illumina, Inc. (a) | 212,300 | | 7,929 |
Life Technologies Corp. (a) | 446,500 | | 16,654 |
QIAGEN NV (a) | 369,900 | | 6,096 |
Techne Corp. | 149,600 | | 8,560 |
Varian, Inc. (a) | 75,000 | | 2,477 |
| | 53,322 |
Pharmaceuticals - 1.2% |
Cadence Pharmaceuticals, Inc. (a) | 689,400 | | 6,977 |
Optimer Pharmaceuticals, Inc. (a) | 307,100 | | 4,290 |
Vivus, Inc. (a) | 885,500 | | 3,551 |
| | 14,818 |
TOTAL HEALTH CARE | | 137,888 |
INDUSTRIALS - 18.3% |
Aerospace & Defense - 0.4% |
Argon ST, Inc. (a) | 214,100 | | 4,365 |
Stanley, Inc. (a) | 42,326 | | 1,091 |
| | 5,456 |
Airlines - 4.3% |
AirTran Holdings, Inc. (a) | 3,676,500 | | 25,544 |
Alaska Air Group, Inc. (a) | 1,177,200 | | 19,753 |
JetBlue Airways Corp. (a) | 1,598,900 | | 7,883 |
| | 53,180 |
Construction & Engineering - 1.5% |
MYR Group, Inc. (a) | 502,300 | | 7,489 |
Quanta Services, Inc. (a) | 275,148 | | 6,254 |
URS Corp. (a) | 92,573 | | 4,079 |
| | 17,822 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Electrical Equipment - 5.5% |
Ceres Power Holdings PLC (a)(d) | 1,131,800 | | $ 2,020 |
Energy Conversion Devices, Inc. (a) | 238,300 | | 4,380 |
First Solar, Inc. (a) | 59,700 | | 11,181 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 1,981,100 | | 6,954 |
Regal-Beloit Corp. | 132,000 | | 5,363 |
Sunpower Corp.: | | | |
Class A (a) | 250,000 | | 6,845 |
Class B (a) | 782,400 | | 19,842 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 715,500 | | 10,682 |
| | 67,267 |
Marine - 1.3% |
Eagle Bulk Shipping, Inc. | 464,700 | | 3,030 |
Genco Shipping & Trading Ltd. | 695,400 | | 13,282 |
| | 16,312 |
Professional Services - 0.8% |
ICF International, Inc. (a) | 214,100 | | 5,890 |
Monster Worldwide, Inc. (a) | 296,560 | | 4,093 |
| | 9,983 |
Road & Rail - 2.1% |
Celadon Group, Inc. (a) | 486,700 | | 3,329 |
Con-way, Inc. | 234,500 | | 5,811 |
J.B. Hunt Transport Services, Inc. | 140,200 | | 3,942 |
Old Dominion Freight Lines, Inc. (a) | 438,500 | | 12,344 |
| | 25,426 |
Trading Companies & Distributors - 2.4% |
Beacon Roofing Supply, Inc. (a) | 169,250 | | 2,691 |
Interline Brands, Inc. (a) | 190,766 | | 2,472 |
Rush Enterprises, Inc. Class A (a) | 1,350,650 | | 17,775 |
WESCO International, Inc. (a) | 249,100 | | 6,477 |
| | 29,415 |
TOTAL INDUSTRIALS | | 224,861 |
INFORMATION TECHNOLOGY - 13.2% |
Communications Equipment - 0.6% |
Comtech Telecommunications Corp. (a) | 159,100 | | 5,325 |
EMS Technologies, Inc. (a) | 93,200 | | 1,775 |
| | 7,100 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 1.2% |
SanDisk Corp. (a) | 544,100 | | $ 8,553 |
STEC, Inc. (a)(d) | 588,200 | | 5,647 |
| | 14,200 |
Electronic Equipment & Components - 1.1% |
Avnet, Inc. (a) | 436,800 | | 9,562 |
SYNNEX Corp. (a) | 205,000 | | 4,414 |
| | 13,976 |
Internet Software & Services - 2.4% |
Art Technology Group, Inc. (a) | 3,056,400 | | 9,597 |
Dice Holdings, Inc. (a) | 181,256 | | 714 |
j2 Global Communications, Inc. (a) | 298,700 | | 7,166 |
Omniture, Inc. (a) | 103,937 | | 1,281 |
Open Text Corp. (a) | 160,900 | | 5,299 |
WebMD Health Corp. Class A (a)(d) | 197,900 | | 5,108 |
| | 29,165 |
Semiconductors & Semiconductor Equipment - 5.4% |
Advanced Energy Industries, Inc. (a) | 857,841 | | 7,232 |
Atmel Corp. (a) | 1,503,400 | | 5,773 |
Intersil Corp. Class A | 357,800 | | 4,150 |
KLA-Tencor Corp. | 530,300 | | 14,711 |
Kulicke & Soffa Industries, Inc. (a) | 267,000 | | 1,068 |
Micron Technology, Inc. (a) | 1,140 | | 6 |
MKS Instruments, Inc. (a) | 494,200 | | 7,734 |
O2Micro International Ltd. sponsored ADR (a) | 915,300 | | 4,000 |
Skyworks Solutions, Inc. (a) | 507,500 | | 4,486 |
Standard Microsystems Corp. (a) | 148,490 | | 2,355 |
Verigy Ltd. (a) | 914,900 | | 10,064 |
Zoran Corp. (a) | 609,400 | | 5,448 |
| | 67,027 |
Software - 2.5% |
Ansys, Inc. (a) | 272,470 | | 7,526 |
ArcSight, Inc. (a) | 196,900 | | 2,973 |
Autonomy Corp. PLC (a) | 231,900 | | 4,863 |
Phoenix Technologies Ltd. (a) | 1,051,102 | | 2,996 |
Playtech Ltd. | 572,900 | | 3,856 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Rosetta Stone, Inc. | 188,300 | | $ 5,640 |
TeleCommunication Systems, Inc. Class A (a) | 323,500 | | 3,174 |
| | 31,028 |
TOTAL INFORMATION TECHNOLOGY | | 162,496 |
MATERIALS - 5.1% |
Chemicals - 2.4% |
Calgon Carbon Corp. (a) | 488,588 | | 8,296 |
FMC Corp. | 166,400 | | 8,109 |
Rockwood Holdings, Inc. (a) | 250,300 | | 3,079 |
Solutia, Inc. (a) | 1,129,290 | | 4,246 |
Tokyo Ohka Kogyo Co. Ltd. | 311,000 | | 5,263 |
| | 28,993 |
Containers & Packaging - 0.5% |
Rock-Tenn Co. Class A | 152,400 | | 5,755 |
Metals & Mining - 1.3% |
Eldorado Gold Corp. (a) | 373,800 | | 2,970 |
Lihir Gold Ltd. sponsored ADR (a) | 192,100 | | 4,111 |
Shore Gold, Inc. (a) | 1,550,000 | | 559 |
Steel Dynamics, Inc. | 521,600 | | 6,494 |
Yamana Gold, Inc. | 302,200 | | 2,370 |
| | 16,504 |
Paper & Forest Products - 0.9% |
Louisiana-Pacific Corp. | 2,342,200 | | 9,533 |
Norbord, Inc. | 2,000,000 | | 2,179 |
| | 11,712 |
TOTAL MATERIALS | | 62,964 |
TOTAL COMMON STOCKS (Cost $1,231,333) | 1,202,035 |
Investment Companies - 1.8% |
| | | |
iShares Dow Jones U.S. Real Estate Index ETF | 298,700 | | 9,863 |
KBW Regional Banking ETF (d) | 586,300 | | 12,224 |
TOTAL INVESTMENT COMPANIES (Cost $32,389) | 22,087 |
Money Market Funds - 5.9% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 21,290,874 | | $ 21,291 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 52,038,860 | | 52,039 |
TOTAL MONEY MARKET FUNDS (Cost $73,330) | 73,330 |
Cash Equivalents - 0.4% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.15%, dated 4/30/09 due 5/1/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $4,522) | $ 4,522 | | 4,522 |
TOTAL INVESTMENT PORTFOLIO - 105.9% (Cost $1,341,574) | | 1,301,974 |
NET OTHER ASSETS - (5.9)% | | (72,793) |
NET ASSETS - 100% | $ 1,229,181 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000s) |
$4,522,000 due 5/01/09 at 0.15% |
BNP Paribas Securities Corp. | $ 2,340 |
Banc of America Securities LLC | 413 |
Barclays Capital, Inc. | 1,245 |
Deutsche Bank Securities, Inc. | 524 |
| $ 4,522 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 206 |
Fidelity Securities Lending Cash Central Fund | 1,147 |
Total | $ 1,353 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Capital Senior Living Corp. | $ 7,686 | $ - | $ 2,342 | $ - | $ - |
Carluccio's PLC | 3,480 | - | 2,296 | 63 | - |
Conceptus, Inc. | - | 7,485 | - | - | 21,076 |
Corin Group PLC | 5,002 | - | 1,707 | - | - |
McCormick & Schmick's Seafood Restaurants | 3,810 | - | 2,562 | - | - |
Pacific Premier Bancorp, Inc. | 1,326 | - | 1,136 | - | - |
Ruth's Chris Steak House, Inc. | - | 5,182 | - | - | 6,407 |
Total | $ 21,304 | $ 12,667 | $ 10,043 | $ 63 | $ 27,483 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 1,301,974 | $ 1,248,402 | $ 53,572 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
Bermuda | 2.6% |
United Kingdom | 2.0% |
Cayman Islands | 1.9% |
Marshall Islands | 1.3% |
Greece | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 2.7% |
| 100.0% |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $461,432,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $52,639 and repurchase agreements of $4,522) - See accompanying schedule: Unaffiliated issuers (cost $1,238,946) | $ 1,201,161 | |
Fidelity Central Funds (cost $73,330) | 73,330 | |
Other affiliated issuers (cost $29,298) | 27,483 | |
Total Investments (cost $1,341,574) | | $ 1,301,974 |
Receivable for investments sold | | 87,212 |
Receivable for fund shares sold | | 1,453 |
Dividends receivable | | 498 |
Distributions receivable from Fidelity Central Funds | | 86 |
Prepaid expenses | | 10 |
Other receivables | | 73 |
Total assets | | 1,391,306 |
| | |
Liabilities | | |
Payable to custodian bank | $ 915 | |
Payable for investments purchased | 107,942 | |
Payable for fund shares redeemed | 589 | |
Accrued management fee | 290 | |
Distribution fees payable | 1 | |
Other affiliated payables | 316 | |
Other payables and accrued expenses | 33 | |
Collateral on securities loaned, at value | 52,039 | |
Total liabilities | | 162,125 |
| | |
Net Assets | | $ 1,229,181 |
Net Assets consist of: | | |
Paid in capital | | $ 2,133,129 |
Undistributed net investment income | | 453 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (864,784) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (39,617) |
Net Assets | | $ 1,229,181 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share
($2,232.2 ÷ 207.289 shares) | | $ 10.77 |
| | |
Maximum offering price per share (100/94.25 of $10.77) | | $ 11.43 |
Class T:
Net Asset Value and redemption price per share
($431.9 ÷ 40.297 shares) | | $ 10.72 |
| | |
Maximum offering price per share (100/96.50 of $10.72) | | $ 11.11 |
Class B:
Net Asset Value and offering price per share
($173.1 ÷ 16.235 shares)A | | $ 10.66 |
| | |
Class C:
Net Asset Value and offering price per share
($250.3 ÷ 23.547 shares)A | | $ 10.63 |
| | |
Small Cap Independence:
Net Asset Value, offering price and redemption price per share ($1,225,694.0 ÷ 113,235.820 shares) | | $ 10.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($399.0 ÷ 36.834 shares) | | $ 10.83 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $63 earned from other affiliated issuers) | | $ 5,227 |
Income from Fidelity Central Funds (including $1,147 from security lending) | | 1,353 |
Total income | | 6,580 |
| | |
Expenses | | |
Management fee
Basic fee | $ 3,406 | |
Performance adjustment | (1,835) | |
Transfer agent fees | 1,626 | |
Distribution fees | 5 | |
Accounting and security lending fees | 202 | |
Custodian fees and expenses | 52 | |
Independent trustees' compensation | 4 | |
Registration fees | 60 | |
Audit | 28 | |
Legal | 4 | |
Miscellaneous | 13 | |
Total expenses before reductions | 3,565 | |
Expense reductions | (77) | 3,488 |
Net investment income (loss) | | 3,092 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (318,859) | |
Other affiliated issuers | (60,379) | |
Foreign currency transactions | (501) | |
Total net realized gain (loss) | | (379,739) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $26) | 325,633 | |
Assets and liabilities in foreign currencies | 491 | |
Total change in net unrealized appreciation (depreciation) | | 326,124 |
Net gain (loss) | | (53,615) |
Net increase (decrease) in net assets resulting from operations | | $ (50,523) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,092 | $ 953 |
Net realized gain (loss) | (379,739) | (484,448) |
Change in net unrealized appreciation (depreciation) | 326,124 | (738,909) |
Net increase (decrease) in net assets resulting from operations | (50,523) | (1,222,404) |
Distributions to shareholders from net investment income | (2,638) | - |
Distributions to shareholders from net realized gain | - | (284,425) |
Total distributions | (2,638) | (284,425) |
Share transactions - net increase (decrease) | (13,518) | 198,096 |
Redemption fees | 73 | 286 |
Total increase (decrease) in net assets | (66,606) | (1,308,447) |
| | |
Net Assets | | |
Beginning of period | 1,295,787 | 2,604,234 |
End of period (including undistributed net investment income of $453 and accumulated net investment loss of $1, respectively) | $ 1,229,181 | $ 1,295,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | .02 | (.04) | (.07) H |
Net realized and unrealized gain (loss) | (.47) | (10.77) | 1.66 |
Total from investment operations | (.45) | (10.81) | 1.59 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.74) | - |
Total distributions | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.77 | $ 11.24 | $ 24.79 |
Total Return B, C, D | (4.09)% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | .89% A | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | .89% A | 1.24% | 1.27% A |
Expenses net of all reductions | .88% A | 1.23% | 1.26% A |
Net investment income (loss) | .31% A | (.24)% | (.57)% A, H |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 1 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | - | (.08) | (.10) H |
Net realized and unrealized gain (loss) | (.46) | (10.76) | 1.64 |
Total from investment operations | (.46) | (10.84) | 1.54 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.71) | - |
Total distributions | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.72 | $ 11.19 | $ 24.74 |
Total Return B, C, D | (4.06)% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.17% A | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.17% A | 1.50% | 1.53% A |
Expenses net of all reductions | 1.15% A | 1.49% | 1.52% A |
Net investment income (loss) | .04% A | (.50)% | (.83)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 432 | $ 409 | $ 420 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.92)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15)H |
Net realized and unrealized gain (loss) | (.46) | (10.73) | 1.64 |
Total from investment operations | (.48) | (10.90) | 1.49 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.64) | - |
Total distributions | (.01) | (2.64) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.66 | $ 11.15 | $ 24.69 |
Total Return B, C, D | (4.34)% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.63% A | 1.99% | 2.05% A |
Expenses net of all reductions | 1.62% A | 1.99% | 2.04% A |
Net investment income (loss) | (.42)% A | (1.00)% | (1.32)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 173 | $ 199 | $ 419 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15) H |
Net realized and unrealized gain (loss) | (.46) | (10.72) | 1.66 |
Total from investment operations | (.48) | (10.89) | 1.51 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.70) | - |
Total distributions | (.01) | (2.70) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.63 | $ 11.12 | $ 24.71 |
Total Return B, C, D | (4.34)% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.63% A | 2.00% | 1.98% A |
Expenses net of all reductions | 1.62% A | 1.99% | 1.97% A |
Net investment income (loss) | (.42)% A | (1.01)% | (1.27)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 250 | $ 183 | $ 294 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Independence
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 | $ 16.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .01 | (.04) G | .07 H | .10 I | (.09) |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 5.01 | 2.75 | 3.31 | 1.52 |
Total from investment operations | (.44) | (10.81) | 4.97 | 2.82 | 3.41 | 1.43 |
Distributions from net investment income | (.02) | - | (.05) | (.07) | - | - |
Distributions from net realized gain | - | (2.72) | (2.34) | (1.34) | (.89) | - |
Total distributions | (.02) | (2.72) | (2.39) | (1.41) | (.89) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value,
end of period | $ 10.82 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 |
Total Return B, C | (3.85)% | (48.42)% | 24.42% | 14.08% | 19.05% | 8.48% |
Ratios to Average Net Assets E, J | | | | | |
Expenses before reductions | .65% A | .95% | 1.01% | .86% | .78% | .95% |
Expenses net of fee waivers, if any | .65% A | .95% | 1.00% | .86% | .78% | .95% |
Expenses net of all reductions | .63% A | .94% | .99% | .81% | .75% | .91% |
Net investment income (loss) | .56% A | .05% | (.20)% G | .32% H | .49% I | (.49)% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 1,226 | $ 1,292 | $ 2,602 | $ 2,623 | $ 1,609 | $ 945 |
Portfolio turnover rate F | 161% A | 101% | 84% | 126% | 61% | 95% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%.
H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
I Investment income per share reflects a special dividend which amounted to $.12 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .02 | (.03) G |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 1.65 |
Total from investment operations | (.44) | (10.80) | 1.62 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.73) | - |
Total distributions | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, J | - | - | - |
Net asset value, end of period | $ 10.83 | $ 11.29 | $ 24.82 |
Total Return B, C | (3.84)% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, I | | | |
Expenses before reductions | .54% A | .84% | .94% A |
Expenses net of fee waivers, if any | .54% A | .84% | .94% A |
Expenses net of all reductions | .53% A | .84% | .93% A |
Net investment income (loss) | .66% A | .15% | (.24)% A, G |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 399 | $ 376 | $ 162 |
Portfolio turnover rate F | 161% A | 101% | 84% |
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 Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.33)%.
H For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Independence Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Independence, 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. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 regular trading hours on the NASDAQ exchange, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 171,540,309 |
Unrealized depreciation | (226,148,537) |
Net unrealized appreciation (depreciation) | $ (54,608,228) |
Cost for federal income tax purposes | $ 1,356,582,179 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $897,635,217 and $892,163,627 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 .35% of the Fund's average net assets and a group fee rate that averaged .27% 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 retail class of the Fund, Small Cap Independence as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .29% 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, except for the Institutional Class. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 2,529 | $ 675 |
Class T | .25% | .25% | 924 | - |
Class B | .75% | .25% | 803 | 603 |
Class C | .75% | .25% | 870 | 401 |
| | | $ 5,126 | $ 1,679 |
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
by FDC |
Class A | $ 588 |
Class T | 52 |
Class B* | 409 |
Class C* | 46 |
| $ 1,095 |
* 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 2,957 | .29 |
Class T | 589 | .32 |
Class B | 226 | .28 |
Class C | 252 | .29 |
Small Cap Independence | 1,621,682 | .30 |
Institutional Class | 333 | .19 |
| $ 1,626,039 | |
* Annualized
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 $38,433 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 $3,500 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $69,597 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 $7,020.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Class A | $ 4,025 | $ - |
Class T | 517 | - |
Class B | 104 | - |
Class C | 117 | - |
Small Cap Independence | 2,632,884 | - |
Institutional Class | 822 | - |
Total | $ 2,638,469 | $ - |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 217,079 |
Class T | - | 52,010 |
Class B | - | 45,676 |
Class C | - | 50,515 |
Small Cap Independence | - | 284,040,327 |
Institutional Class | - | 19,160 |
Total | $ - | $ 284,424,767 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Class A | | | | |
Shares sold | 36,221 | 205,468 | $ 349,823 | $ 3,725,058 |
Reinvestment of distributions | 387 | 10,625 | 3,793 | 214,517 |
Shares redeemed | (40,050) | (44,958) | (370,251) | (737,158) |
Net increase (decrease) | (3,442) | 171,135 | $ (16,635) | $ 3,202,417 |
Class T | | | | |
Shares sold | 6,683 | 34,295 | $ 64,637 | $ 579,208 |
Reinvestment of distributions | 52 | 2,571 | 513 | 51,838 |
Shares redeemed | (2,981) | (17,302) | (27,310) | (267,078) |
Net increase (decrease) | 3,754 | 19,564 | $ 37,840 | $ 363,968 |
Class B | | | | |
Shares sold | 3,045 | 9,865 | $ 28,677 | $ 161,442 |
Reinvestment of distributions | 10 | 2,222 | 101 | 44,826 |
Shares redeemed | (4,668) | (11,195) | (43,241) | (163,410) |
Net increase (decrease) | (1,613) | 892 | $ (14,463) | $ 42,858 |
Class C | | | | |
Shares sold | 9,880 | 29,487 | $ 88,612 | $ 552,689 |
Reinvestment of distributions | 11 | 2,368 | 107 | 47,635 |
Shares redeemed | (2,826) | (27,273) | (26,121) | (434,448) |
Net increase (decrease) | 7,065 | 4,582 | $ 62,598 | $ 165,876 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Small Cap Independence | | | | |
Shares sold | 12,265,733 | 25,453,153 | $ 115,700,280 | $ 420,759,999 |
Reinvestment of distributions | 263,408 | 13,819,450 | 2,594,575 | 279,429,276 |
Shares redeemed | (13,806,603) | (29,641,990) | (131,917,055) | (506,376,535) |
Net increase (decrease) | (1,277,462) | 9,630,613 | $ (13,622,200) | $ 193,812,740 |
Institutional Class | | | | |
Shares sold | 3,652 | 35,465 | $ 35,269 | $ 642,989 |
Reinvestment of distributions | 9 | 948 | 87 | 19,160 |
Shares redeemed | (103) | (9,660) | (999) | (154,150) |
Net increase (decrease) | 3,558 | 26,753 | $ 34,357 | $ 507,999 |
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.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
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Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
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Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity 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
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
SCS-USAN-0609
1.784915.106
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Independence
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2009
Class A, Class T, Class B,
and Class C are classes of
Fidelity® Small Cap Independence Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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.
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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual 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, redemption fees, 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 (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Class A | .89% | | | |
Actual | | $ 1,000.00 | $ 959.10 | $ 4.32 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class T | 1.17% | | | |
Actual | | $ 1,000.00 | $ 959.40 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,018.99 | $ 5.86 |
Class B | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Small Cap Independence | .65% | | | |
Actual | | $ 1,000.00 | $ 961.50 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.57 | $ 3.26 |
Institutional Class | .54% | | | |
Actual | | $ 1,000.00 | $ 961.60 | $ 2.63 |
HypotheticalA | | $ 1,000.00 | $ 1,022.12 | $ 2.71 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
AirTran Holdings, Inc. | 2.1 | 1.1 |
Conceptus, Inc. | 1.7 | 1.4 |
Sunpower Corp. Class B | 1.6 | 0.0 |
Alaska Air Group, Inc. | 1.6 | 1.5 |
Wyndham Worldwide Corp. | 1.5 | 0.0 |
Rush Enterprises, Inc. Class A | 1.5 | 0.4 |
Life Technologies Corp. | 1.4 | 0.0 |
Janus Capital Group, Inc. | 1.2 | 0.8 |
Fourlis Holdings SA | 1.2 | 1.1 |
KLA-Tencor Corp. | 1.2 | 0.3 |
| 15.0 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 26.7 | 14.8 |
Industrials | 18.3 | 19.6 |
Financials | 15.4 | 17.4 |
Information Technology | 13.2 | 15.6 |
Health Care | 11.2 | 12.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Investment
Companies 99.6% | | | Stocks and
Investment
Companies 98.2% | |
| Short-Term
Investments and
Net Other Assets 0.4% | | | Short-Term
Investments and
Net Other Assets 1.8% | |
* Foreign investments | 12.8% | | ** Foreign investments | 13.7% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 26.7% |
Auto Components - 3.1% |
Autoliv, Inc. | 220,800 | | $ 5,447 |
BorgWarner, Inc. (d) | 310,300 | | 8,983 |
Federal-Mogul Corp. Class A (a) | 596,575 | | 6,622 |
Gentex Corp. | 844,100 | | 11,286 |
The Goodyear Tire & Rubber Co. (a) | 476,830 | | 5,240 |
| | 37,578 |
Diversified Consumer Services - 1.1% |
Coinstar, Inc. (a) | 369,588 | | 13,154 |
Hotels, Restaurants & Leisure - 6.6% |
Bally Technologies, Inc. (a) | 223,400 | | 5,849 |
Domino's Pizza, Inc. (a) | 738,100 | | 6,968 |
InterContinental Hotel Group PLC ADR (d) | 642,700 | | 6,086 |
Landry's Restaurants, Inc. (d) | 425,721 | | 3,891 |
Morgans Hotel Group Co. (a) | 891,064 | | 3,823 |
Morton's Restaurant Group, Inc. (a) | 613,849 | | 2,848 |
Penn National Gaming, Inc. (a) | 264,300 | | 8,991 |
Ruth's Chris Steak House, Inc. (a)(e) | 1,769,806 | | 6,407 |
Starwood Hotels & Resorts Worldwide, Inc. | 546,600 | | 11,402 |
Vail Resorts, Inc. (a) | 86,700 | | 2,532 |
WMS Industries, Inc. (a) | 133,658 | | 4,292 |
Wyndham Worldwide Corp. | 1,567,715 | | 18,311 |
| | 81,400 |
Household Durables - 3.7% |
Hooker Furniture Corp. | 128,564 | | 1,507 |
Lennar Corp. Class A | 61,100 | | 595 |
M.D.C. Holdings, Inc. | 168,900 | | 5,773 |
Meritage Homes Corp. (a) | 477,200 | | 9,931 |
Mohawk Industries, Inc. (a) | 222,900 | | 10,545 |
Pulte Homes, Inc. (d) | 1,105,200 | | 12,721 |
Ryland Group, Inc. | 226,600 | | 4,693 |
| | 45,765 |
Leisure Equipment & Products - 0.7% |
Brunswick Corp. | 1,401,800 | | 8,383 |
Media - 1.7% |
Discovery Communications, Inc. (a) | 402,900 | | 7,651 |
Global Sources Ltd. | 23,232 | | 103 |
Harte-Hanks, Inc. | 307,000 | | 2,536 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Lamar Advertising Co. Class A (a)(d) | 603,800 | | $ 10,204 |
Valassis Communications, Inc. (a) | 163,700 | | 846 |
| | 21,340 |
Specialty Retail - 8.6% |
American Eagle Outfitters, Inc. | 470,700 | | 6,976 |
AnnTaylor Stores Corp. (a) | 1,498,000 | | 11,070 |
AutoNation, Inc. (a) | 256,200 | | 4,537 |
Citi Trends, Inc. (a) | 239,400 | | 5,880 |
Fourlis Holdings SA | 1,283,430 | | 15,320 |
Gymboree Corp. (a) | 280,100 | | 9,635 |
Pacific Sunwear of California, Inc. (a) | 2,225,522 | | 9,013 |
Penske Auto Group, Inc. | 854,100 | | 11,317 |
SAZABY, Inc. | 78,100 | | 835 |
Shoe Carnival, Inc. (a) | 509,200 | | 5,937 |
Signet Jewelers Ltd. | 271,700 | | 4,312 |
The Men's Wearhouse, Inc. | 363,500 | | 6,776 |
Williams-Sonoma, Inc. | 843,700 | | 11,812 |
Zale Corp. (a)(d) | 555,204 | | 2,065 |
| | 105,485 |
Textiles, Apparel & Luxury Goods - 1.2% |
G-III Apparel Group Ltd. (a) | 463,400 | | 3,716 |
Liz Claiborne, Inc. | 1,422,500 | | 6,743 |
Ted Baker PLC | 727,900 | | 3,973 |
| | 14,432 |
TOTAL CONSUMER DISCRETIONARY | | 327,537 |
CONSUMER STAPLES - 0.8% |
Food & Staples Retailing - 0.1% |
Diedrich Coffee, Inc. (a) | 32,705 | | 318 |
Food Products - 0.7% |
Green Mountain Coffee Roasters, Inc. (a)(d) | 121,334 | | 8,774 |
TOTAL CONSUMER STAPLES | | 9,092 |
ENERGY - 7.1% |
Energy Equipment & Services - 1.3% |
Atwood Oceanics, Inc. (a) | 228,152 | | 5,092 |
Nabors Industries Ltd. (a) | 162,800 | | 2,476 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Energy Equipment & Services - continued |
Oil States International, Inc. (a) | 220,300 | | $ 4,164 |
Superior Energy Services, Inc. (a) | 219,500 | | 4,217 |
| | 15,949 |
Oil, Gas & Consumable Fuels - 5.8% |
Alpha Natural Resources, Inc. (a) | 212,000 | | 4,342 |
Cabot Oil & Gas Corp. | 364,600 | | 11,007 |
Encore Acquisition Co. (a) | 338,150 | | 9,871 |
EXCO Resources, Inc. (a) | 966,000 | | 11,379 |
Forest Oil Corp. (a) | 76,800 | | 1,229 |
Foundation Coal Holdings, Inc. | 483,800 | | 7,857 |
Goodrich Petroleum Corp. (a)(d) | 172,500 | | 3,955 |
Petrohawk Energy Corp. (a) | 250,000 | | 5,900 |
Plains Exploration & Production Co. (a) | 182,900 | | 3,451 |
Range Resources Corp. | 111,600 | | 4,461 |
Southwestern Energy Co. (a) | 155,700 | | 5,583 |
USEC, Inc. (a) | 440,100 | | 2,724 |
| | 71,759 |
TOTAL ENERGY | | 87,708 |
FINANCIALS - 15.4% |
Capital Markets - 3.8% |
Affiliated Managers Group, Inc. (a) | 190,900 | | 10,853 |
GLG Partners, Inc. warrants 12/28/11 (a) | 99,912 | | 7 |
Janus Capital Group, Inc. | 1,569,700 | | 15,744 |
optionsXpress Holdings, Inc. | 439,600 | | 7,236 |
Waddell & Reed Financial, Inc. Class A | 605,800 | | 13,576 |
| | 47,416 |
Commercial Banks - 4.4% |
Associated Banc-Corp. | 442,023 | | 6,838 |
Bank of Hawaii Corp. | 104,100 | | 3,658 |
Bank of the Ozarks, Inc. (d) | 275,500 | | 6,841 |
Boston Private Financial Holdings, Inc. | 1,237,900 | | 5,707 |
First Horizon National Corp. | 654,666 | | 7,535 |
First Midwest Bancorp, Inc., Delaware | 268,951 | | 2,383 |
KeyCorp | 911,500 | | 5,606 |
PacWest Bancorp | 383,900 | | 5,593 |
Prosperity Bancshares, Inc. | 166,211 | | 4,616 |
UMB Financial Corp. | 106,600 | | 4,879 |
| | 53,656 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.3% |
Gimv NV | 68,250 | | $ 3,404 |
India Hospitality Corp. (a) | 833,320 | | 103 |
| | 3,507 |
Insurance - 3.2% |
Allied World Assurance Co. Holdings Ltd. | 132,200 | | 4,910 |
Argo Group International Holdings, Ltd. (a) | 157,400 | | 4,406 |
Endurance Specialty Holdings Ltd. | 188,400 | | 4,929 |
Montpelier Re Holdings Ltd. | 325,424 | | 4,055 |
Platinum Underwriters Holdings Ltd. | 207,100 | | 5,958 |
W.R. Berkley Corp. | 183,600 | | 4,390 |
Willis Group Holdings Ltd. | 132,200 | | 3,637 |
XL Capital Ltd. Class A | 704,600 | | 6,701 |
| | 38,986 |
Real Estate Investment Trusts - 2.7% |
Corporate Office Properties Trust (SBI) | 242,000 | | 7,396 |
Host Hotels & Resorts, Inc. | 604,000 | | 4,645 |
Segro PLC | 22,779,900 | | 7,986 |
Simon Property Group, Inc. | 204,200 | | 10,537 |
SL Green Realty Corp. | 174,100 | | 3,075 |
| | 33,639 |
Real Estate Management & Development - 0.7% |
Jones Lang LaSalle, Inc. | 224,700 | | 7,251 |
Orchid Developments Group Ltd. (a) | 2,219,000 | | 1,427 |
| | 8,678 |
Thrifts & Mortgage Finance - 0.3% |
New York Community Bancorp, Inc. (d) | 318,900 | | 3,607 |
TOTAL FINANCIALS | | 189,489 |
HEALTH CARE - 11.2% |
Biotechnology - 1.4% |
Alnylam Pharmaceuticals, Inc. (a) | 32,300 | | 593 |
Cougar Biotechnology, Inc. (a) | 44,000 | | 1,536 |
Dendreon Corp. (a) | 122,600 | | 2,599 |
Myriad Genetics, Inc. (a) | 154,600 | | 5,997 |
Theravance, Inc. (a) | 463,800 | | 6,646 |
| | 17,371 |
Health Care Equipment & Supplies - 1.7% |
Conceptus, Inc. (a)(d)(e) | 1,556,553 | | 21,076 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - 2.6% |
Capital Senior Living Corp. (a) | 796,509 | | $ 3,146 |
CardioNet, Inc. (a) | 102,500 | | 2,127 |
Emeritus Corp. (a)(d) | 501,700 | | 4,535 |
Genoptix, Inc. (a) | 263,900 | | 7,674 |
Hanger Orthopedic Group, Inc. (a) | 621,800 | | 8,649 |
IPC The Hospitalist Co., Inc. (a) | 192,100 | | 3,521 |
Sun Healthcare Group, Inc. (a) | 194,642 | | 1,649 |
| | 31,301 |
Life Sciences Tools & Services - 4.3% |
Bruker BioSciences Corp. (a) | 1,763,800 | | 11,606 |
Illumina, Inc. (a) | 212,300 | | 7,929 |
Life Technologies Corp. (a) | 446,500 | | 16,654 |
QIAGEN NV (a) | 369,900 | | 6,096 |
Techne Corp. | 149,600 | | 8,560 |
Varian, Inc. (a) | 75,000 | | 2,477 |
| | 53,322 |
Pharmaceuticals - 1.2% |
Cadence Pharmaceuticals, Inc. (a) | 689,400 | | 6,977 |
Optimer Pharmaceuticals, Inc. (a) | 307,100 | | 4,290 |
Vivus, Inc. (a) | 885,500 | | 3,551 |
| | 14,818 |
TOTAL HEALTH CARE | | 137,888 |
INDUSTRIALS - 18.3% |
Aerospace & Defense - 0.4% |
Argon ST, Inc. (a) | 214,100 | | 4,365 |
Stanley, Inc. (a) | 42,326 | | 1,091 |
| | 5,456 |
Airlines - 4.3% |
AirTran Holdings, Inc. (a) | 3,676,500 | | 25,544 |
Alaska Air Group, Inc. (a) | 1,177,200 | | 19,753 |
JetBlue Airways Corp. (a) | 1,598,900 | | 7,883 |
| | 53,180 |
Construction & Engineering - 1.5% |
MYR Group, Inc. (a) | 502,300 | | 7,489 |
Quanta Services, Inc. (a) | 275,148 | | 6,254 |
URS Corp. (a) | 92,573 | | 4,079 |
| | 17,822 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Electrical Equipment - 5.5% |
Ceres Power Holdings PLC (a)(d) | 1,131,800 | | $ 2,020 |
Energy Conversion Devices, Inc. (a) | 238,300 | | 4,380 |
First Solar, Inc. (a) | 59,700 | | 11,181 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 1,981,100 | | 6,954 |
Regal-Beloit Corp. | 132,000 | | 5,363 |
Sunpower Corp.: | | | |
Class A (a) | 250,000 | | 6,845 |
Class B (a) | 782,400 | | 19,842 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 715,500 | | 10,682 |
| | 67,267 |
Marine - 1.3% |
Eagle Bulk Shipping, Inc. | 464,700 | | 3,030 |
Genco Shipping & Trading Ltd. | 695,400 | | 13,282 |
| | 16,312 |
Professional Services - 0.8% |
ICF International, Inc. (a) | 214,100 | | 5,890 |
Monster Worldwide, Inc. (a) | 296,560 | | 4,093 |
| | 9,983 |
Road & Rail - 2.1% |
Celadon Group, Inc. (a) | 486,700 | | 3,329 |
Con-way, Inc. | 234,500 | | 5,811 |
J.B. Hunt Transport Services, Inc. | 140,200 | | 3,942 |
Old Dominion Freight Lines, Inc. (a) | 438,500 | | 12,344 |
| | 25,426 |
Trading Companies & Distributors - 2.4% |
Beacon Roofing Supply, Inc. (a) | 169,250 | | 2,691 |
Interline Brands, Inc. (a) | 190,766 | | 2,472 |
Rush Enterprises, Inc. Class A (a) | 1,350,650 | | 17,775 |
WESCO International, Inc. (a) | 249,100 | | 6,477 |
| | 29,415 |
TOTAL INDUSTRIALS | | 224,861 |
INFORMATION TECHNOLOGY - 13.2% |
Communications Equipment - 0.6% |
Comtech Telecommunications Corp. (a) | 159,100 | | 5,325 |
EMS Technologies, Inc. (a) | 93,200 | | 1,775 |
| | 7,100 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 1.2% |
SanDisk Corp. (a) | 544,100 | | $ 8,553 |
STEC, Inc. (a)(d) | 588,200 | | 5,647 |
| | 14,200 |
Electronic Equipment & Components - 1.1% |
Avnet, Inc. (a) | 436,800 | | 9,562 |
SYNNEX Corp. (a) | 205,000 | | 4,414 |
| | 13,976 |
Internet Software & Services - 2.4% |
Art Technology Group, Inc. (a) | 3,056,400 | | 9,597 |
Dice Holdings, Inc. (a) | 181,256 | | 714 |
j2 Global Communications, Inc. (a) | 298,700 | | 7,166 |
Omniture, Inc. (a) | 103,937 | | 1,281 |
Open Text Corp. (a) | 160,900 | | 5,299 |
WebMD Health Corp. Class A (a)(d) | 197,900 | | 5,108 |
| | 29,165 |
Semiconductors & Semiconductor Equipment - 5.4% |
Advanced Energy Industries, Inc. (a) | 857,841 | | 7,232 |
Atmel Corp. (a) | 1,503,400 | | 5,773 |
Intersil Corp. Class A | 357,800 | | 4,150 |
KLA-Tencor Corp. | 530,300 | | 14,711 |
Kulicke & Soffa Industries, Inc. (a) | 267,000 | | 1,068 |
Micron Technology, Inc. (a) | 1,140 | | 6 |
MKS Instruments, Inc. (a) | 494,200 | | 7,734 |
O2Micro International Ltd. sponsored ADR (a) | 915,300 | | 4,000 |
Skyworks Solutions, Inc. (a) | 507,500 | | 4,486 |
Standard Microsystems Corp. (a) | 148,490 | | 2,355 |
Verigy Ltd. (a) | 914,900 | | 10,064 |
Zoran Corp. (a) | 609,400 | | 5,448 |
| | 67,027 |
Software - 2.5% |
Ansys, Inc. (a) | 272,470 | | 7,526 |
ArcSight, Inc. (a) | 196,900 | | 2,973 |
Autonomy Corp. PLC (a) | 231,900 | | 4,863 |
Phoenix Technologies Ltd. (a) | 1,051,102 | | 2,996 |
Playtech Ltd. | 572,900 | | 3,856 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Rosetta Stone, Inc. | 188,300 | | $ 5,640 |
TeleCommunication Systems, Inc. Class A (a) | 323,500 | | 3,174 |
| | 31,028 |
TOTAL INFORMATION TECHNOLOGY | | 162,496 |
MATERIALS - 5.1% |
Chemicals - 2.4% |
Calgon Carbon Corp. (a) | 488,588 | | 8,296 |
FMC Corp. | 166,400 | | 8,109 |
Rockwood Holdings, Inc. (a) | 250,300 | | 3,079 |
Solutia, Inc. (a) | 1,129,290 | | 4,246 |
Tokyo Ohka Kogyo Co. Ltd. | 311,000 | | 5,263 |
| | 28,993 |
Containers & Packaging - 0.5% |
Rock-Tenn Co. Class A | 152,400 | | 5,755 |
Metals & Mining - 1.3% |
Eldorado Gold Corp. (a) | 373,800 | | 2,970 |
Lihir Gold Ltd. sponsored ADR (a) | 192,100 | | 4,111 |
Shore Gold, Inc. (a) | 1,550,000 | | 559 |
Steel Dynamics, Inc. | 521,600 | | 6,494 |
Yamana Gold, Inc. | 302,200 | | 2,370 |
| | 16,504 |
Paper & Forest Products - 0.9% |
Louisiana-Pacific Corp. | 2,342,200 | | 9,533 |
Norbord, Inc. | 2,000,000 | | 2,179 |
| | 11,712 |
TOTAL MATERIALS | | 62,964 |
TOTAL COMMON STOCKS (Cost $1,231,333) | 1,202,035 |
Investment Companies - 1.8% |
| | | |
iShares Dow Jones U.S. Real Estate Index ETF | 298,700 | | 9,863 |
KBW Regional Banking ETF (d) | 586,300 | | 12,224 |
TOTAL INVESTMENT COMPANIES (Cost $32,389) | 22,087 |
Money Market Funds - 5.9% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 21,290,874 | | $ 21,291 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 52,038,860 | | 52,039 |
TOTAL MONEY MARKET FUNDS (Cost $73,330) | 73,330 |
Cash Equivalents - 0.4% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.15%, dated 4/30/09 due 5/1/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $4,522) | $ 4,522 | | 4,522 |
TOTAL INVESTMENT PORTFOLIO - 105.9% (Cost $1,341,574) | | 1,301,974 |
NET OTHER ASSETS - (5.9)% | | (72,793) |
NET ASSETS - 100% | $ 1,229,181 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000s) |
$4,522,000 due 5/01/09 at 0.15% |
BNP Paribas Securities Corp. | $ 2,340 |
Banc of America Securities LLC | 413 |
Barclays Capital, Inc. | 1,245 |
Deutsche Bank Securities, Inc. | 524 |
| $ 4,522 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 206 |
Fidelity Securities Lending Cash Central Fund | 1,147 |
Total | $ 1,353 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Capital Senior Living Corp. | $ 7,686 | $ - | $ 2,342 | $ - | $ - |
Carluccio's PLC | 3,480 | - | 2,296 | 63 | - |
Conceptus, Inc. | - | 7,485 | - | - | 21,076 |
Corin Group PLC | 5,002 | - | 1,707 | - | - |
McCormick & Schmick's Seafood Restaurants | 3,810 | - | 2,562 | - | - |
Pacific Premier Bancorp, Inc. | 1,326 | - | 1,136 | - | - |
Ruth's Chris Steak House, Inc. | - | 5,182 | - | - | 6,407 |
Total | $ 21,304 | $ 12,667 | $ 10,043 | $ 63 | $ 27,483 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 1,301,974 | $ 1,248,402 | $ 53,572 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
Bermuda | 2.6% |
United Kingdom | 2.0% |
Cayman Islands | 1.9% |
Marshall Islands | 1.3% |
Greece | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 2.7% |
| 100.0% |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $461,432,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $52,639 and repurchase agreements of $4,522) - See accompanying schedule: Unaffiliated issuers (cost $1,238,946) | $ 1,201,161 | |
Fidelity Central Funds (cost $73,330) | 73,330 | |
Other affiliated issuers (cost $29,298) | 27,483 | |
Total Investments (cost $1,341,574) | | $ 1,301,974 |
Receivable for investments sold | | 87,212 |
Receivable for fund shares sold | | 1,453 |
Dividends receivable | | 498 |
Distributions receivable from Fidelity Central Funds | | 86 |
Prepaid expenses | | 10 |
Other receivables | | 73 |
Total assets | | 1,391,306 |
| | |
Liabilities | | |
Payable to custodian bank | $ 915 | |
Payable for investments purchased | 107,942 | |
Payable for fund shares redeemed | 589 | |
Accrued management fee | 290 | |
Distribution fees payable | 1 | |
Other affiliated payables | 316 | |
Other payables and accrued expenses | 33 | |
Collateral on securities loaned, at value | 52,039 | |
Total liabilities | | 162,125 |
| | |
Net Assets | | $ 1,229,181 |
Net Assets consist of: | | |
Paid in capital | | $ 2,133,129 |
Undistributed net investment income | | 453 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (864,784) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (39,617) |
Net Assets | | $ 1,229,181 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share
($2,232.2 ÷ 207.289 shares) | | $ 10.77 |
| | |
Maximum offering price per share (100/94.25 of $10.77) | | $ 11.43 |
Class T:
Net Asset Value and redemption price per share
($431.9 ÷ 40.297 shares) | | $ 10.72 |
| | |
Maximum offering price per share (100/96.50 of $10.72) | | $ 11.11 |
Class B:
Net Asset Value and offering price per share
($173.1 ÷ 16.235 shares)A | | $ 10.66 |
| | |
Class C:
Net Asset Value and offering price per share
($250.3 ÷ 23.547 shares)A | | $ 10.63 |
| | |
Small Cap Independence:
Net Asset Value, offering price and redemption price per share ($1,225,694.0 ÷ 113,235.820 shares) | | $ 10.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($399.0 ÷ 36.834 shares) | | $ 10.83 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $63 earned from other affiliated issuers) | | $ 5,227 |
Income from Fidelity Central Funds (including $1,147 from security lending) | | 1,353 |
Total income | | 6,580 |
| | |
Expenses | | |
Management fee
Basic fee | $ 3,406 | |
Performance adjustment | (1,835) | |
Transfer agent fees | 1,626 | |
Distribution fees | 5 | |
Accounting and security lending fees | 202 | |
Custodian fees and expenses | 52 | |
Independent trustees' compensation | 4 | |
Registration fees | 60 | |
Audit | 28 | |
Legal | 4 | |
Miscellaneous | 13 | |
Total expenses before reductions | 3,565 | |
Expense reductions | (77) | 3,488 |
Net investment income (loss) | | 3,092 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (318,859) | |
Other affiliated issuers | (60,379) | |
Foreign currency transactions | (501) | |
Total net realized gain (loss) | | (379,739) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $26) | 325,633 | |
Assets and liabilities in foreign currencies | 491 | |
Total change in net unrealized appreciation (depreciation) | | 326,124 |
Net gain (loss) | | (53,615) |
Net increase (decrease) in net assets resulting from operations | | $ (50,523) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,092 | $ 953 |
Net realized gain (loss) | (379,739) | (484,448) |
Change in net unrealized appreciation (depreciation) | 326,124 | (738,909) |
Net increase (decrease) in net assets resulting from operations | (50,523) | (1,222,404) |
Distributions to shareholders from net investment income | (2,638) | - |
Distributions to shareholders from net realized gain | - | (284,425) |
Total distributions | (2,638) | (284,425) |
Share transactions - net increase (decrease) | (13,518) | 198,096 |
Redemption fees | 73 | 286 |
Total increase (decrease) in net assets | (66,606) | (1,308,447) |
| | |
Net Assets | | |
Beginning of period | 1,295,787 | 2,604,234 |
End of period (including undistributed net investment income of $453 and accumulated net investment loss of $1, respectively) | $ 1,229,181 | $ 1,295,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | .02 | (.04) | (.07) H |
Net realized and unrealized gain (loss) | (.47) | (10.77) | 1.66 |
Total from investment operations | (.45) | (10.81) | 1.59 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.74) | - |
Total distributions | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.77 | $ 11.24 | $ 24.79 |
Total Return B, C, D | (4.09)% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | .89% A | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | .89% A | 1.24% | 1.27% A |
Expenses net of all reductions | .88% A | 1.23% | 1.26% A |
Net investment income (loss) | .31% A | (.24)% | (.57)% A, H |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 1 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | - | (.08) | (.10) H |
Net realized and unrealized gain (loss) | (.46) | (10.76) | 1.64 |
Total from investment operations | (.46) | (10.84) | 1.54 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.71) | - |
Total distributions | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.72 | $ 11.19 | $ 24.74 |
Total Return B, C, D | (4.06)% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.17% A | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.17% A | 1.50% | 1.53% A |
Expenses net of all reductions | 1.15% A | 1.49% | 1.52% A |
Net investment income (loss) | .04% A | (.50)% | (.83)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 432 | $ 409 | $ 420 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.92)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15)H |
Net realized and unrealized gain (loss) | (.46) | (10.73) | 1.64 |
Total from investment operations | (.48) | (10.90) | 1.49 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.64) | - |
Total distributions | (.01) | (2.64) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.66 | $ 11.15 | $ 24.69 |
Total Return B, C, D | (4.34)% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.63% A | 1.99% | 2.05% A |
Expenses net of all reductions | 1.62% A | 1.99% | 2.04% A |
Net investment income (loss) | (.42)% A | (1.00)% | (1.32)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 173 | $ 199 | $ 419 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15) H |
Net realized and unrealized gain (loss) | (.46) | (10.72) | 1.66 |
Total from investment operations | (.48) | (10.89) | 1.51 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.70) | - |
Total distributions | (.01) | (2.70) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.63 | $ 11.12 | $ 24.71 |
Total Return B, C, D | (4.34)% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.63% A | 2.00% | 1.98% A |
Expenses net of all reductions | 1.62% A | 1.99% | 1.97% A |
Net investment income (loss) | (.42)% A | (1.01)% | (1.27)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 250 | $ 183 | $ 294 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Independence
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 | $ 16.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .01 | (.04) G | .07 H | .10 I | (.09) |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 5.01 | 2.75 | 3.31 | 1.52 |
Total from investment operations | (.44) | (10.81) | 4.97 | 2.82 | 3.41 | 1.43 |
Distributions from net investment income | (.02) | - | (.05) | (.07) | - | - |
Distributions from net realized gain | - | (2.72) | (2.34) | (1.34) | (.89) | - |
Total distributions | (.02) | (2.72) | (2.39) | (1.41) | (.89) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value,
end of period | $ 10.82 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 |
Total Return B, C | (3.85)% | (48.42)% | 24.42% | 14.08% | 19.05% | 8.48% |
Ratios to Average Net Assets E, J | | | | | |
Expenses before reductions | .65% A | .95% | 1.01% | .86% | .78% | .95% |
Expenses net of fee waivers, if any | .65% A | .95% | 1.00% | .86% | .78% | .95% |
Expenses net of all reductions | .63% A | .94% | .99% | .81% | .75% | .91% |
Net investment income (loss) | .56% A | .05% | (.20)% G | .32% H | .49% I | (.49)% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 1,226 | $ 1,292 | $ 2,602 | $ 2,623 | $ 1,609 | $ 945 |
Portfolio turnover rate F | 161% A | 101% | 84% | 126% | 61% | 95% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%.
H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
I Investment income per share reflects a special dividend which amounted to $.12 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .02 | (.03) G |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 1.65 |
Total from investment operations | (.44) | (10.80) | 1.62 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.73) | - |
Total distributions | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, J | - | - | - |
Net asset value, end of period | $ 10.83 | $ 11.29 | $ 24.82 |
Total Return B, C | (3.84)% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, I | | | |
Expenses before reductions | .54% A | .84% | .94% A |
Expenses net of fee waivers, if any | .54% A | .84% | .94% A |
Expenses net of all reductions | .53% A | .84% | .93% A |
Net investment income (loss) | .66% A | .15% | (.24)% A, G |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 399 | $ 376 | $ 162 |
Portfolio turnover rate F | 161% A | 101% | 84% |
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 Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.33)%.
H For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Independence Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Independence, 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. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 regular trading hours on the NASDAQ exchange, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 171,540,309 |
Unrealized depreciation | (226,148,537) |
Net unrealized appreciation (depreciation) | $ (54,608,228) |
Cost for federal income tax purposes | $ 1,356,582,179 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $897,635,217 and $892,163,627 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 .35% of the Fund's average net assets and a group fee rate that averaged .27% 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 retail class of the Fund, Small Cap Independence as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .29% 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, except for the Institutional Class. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 2,529 | $ 675 |
Class T | .25% | .25% | 924 | - |
Class B | .75% | .25% | 803 | 603 |
Class C | .75% | .25% | 870 | 401 |
| | | $ 5,126 | $ 1,679 |
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
by FDC |
Class A | $ 588 |
Class T | 52 |
Class B* | 409 |
Class C* | 46 |
| $ 1,095 |
* 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 2,957 | .29 |
Class T | 589 | .32 |
Class B | 226 | .28 |
Class C | 252 | .29 |
Small Cap Independence | 1,621,682 | .30 |
Institutional Class | 333 | .19 |
| $ 1,626,039 | |
* Annualized
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 $38,433 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 $3,500 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $69,597 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 $7,020.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Class A | $ 4,025 | $ - |
Class T | 517 | - |
Class B | 104 | - |
Class C | 117 | - |
Small Cap Independence | 2,632,884 | - |
Institutional Class | 822 | - |
Total | $ 2,638,469 | $ - |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 217,079 |
Class T | - | 52,010 |
Class B | - | 45,676 |
Class C | - | 50,515 |
Small Cap Independence | - | 284,040,327 |
Institutional Class | - | 19,160 |
Total | $ - | $ 284,424,767 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Class A | | | | |
Shares sold | 36,221 | 205,468 | $ 349,823 | $ 3,725,058 |
Reinvestment of distributions | 387 | 10,625 | 3,793 | 214,517 |
Shares redeemed | (40,050) | (44,958) | (370,251) | (737,158) |
Net increase (decrease) | (3,442) | 171,135 | $ (16,635) | $ 3,202,417 |
Class T | | | | |
Shares sold | 6,683 | 34,295 | $ 64,637 | $ 579,208 |
Reinvestment of distributions | 52 | 2,571 | 513 | 51,838 |
Shares redeemed | (2,981) | (17,302) | (27,310) | (267,078) |
Net increase (decrease) | 3,754 | 19,564 | $ 37,840 | $ 363,968 |
Class B | | | | |
Shares sold | 3,045 | 9,865 | $ 28,677 | $ 161,442 |
Reinvestment of distributions | 10 | 2,222 | 101 | 44,826 |
Shares redeemed | (4,668) | (11,195) | (43,241) | (163,410) |
Net increase (decrease) | (1,613) | 892 | $ (14,463) | $ 42,858 |
Class C | | | | |
Shares sold | 9,880 | 29,487 | $ 88,612 | $ 552,689 |
Reinvestment of distributions | 11 | 2,368 | 107 | 47,635 |
Shares redeemed | (2,826) | (27,273) | (26,121) | (434,448) |
Net increase (decrease) | 7,065 | 4,582 | $ 62,598 | $ 165,876 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Small Cap Independence | | | | |
Shares sold | 12,265,733 | 25,453,153 | $ 115,700,280 | $ 420,759,999 |
Reinvestment of distributions | 263,408 | 13,819,450 | 2,594,575 | 279,429,276 |
Shares redeemed | (13,806,603) | (29,641,990) | (131,917,055) | (506,376,535) |
Net increase (decrease) | (1,277,462) | 9,630,613 | $ (13,622,200) | $ 193,812,740 |
Institutional Class | | | | |
Shares sold | 3,652 | 35,465 | $ 35,269 | $ 642,989 |
Reinvestment of distributions | 9 | 948 | 87 | 19,160 |
Shares redeemed | (103) | (9,660) | (999) | (154,150) |
Net increase (decrease) | 3,558 | 26,753 | $ 34,357 | $ 507,999 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity 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
ASCS-USAN-0609
1.843153.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Small Cap Independence
Fund - Institutional Class
Semiannual Report
April 30, 2009
Institutional Class is a
class of Fidelity® Small Cap
Independence Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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.
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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual 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, redemption fees, 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 (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Class A | .89% | | | |
Actual | | $ 1,000.00 | $ 959.10 | $ 4.32 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class T | 1.17% | | | |
Actual | | $ 1,000.00 | $ 959.40 | $ 5.68 |
HypotheticalA | | $ 1,000.00 | $ 1,018.99 | $ 5.86 |
Class B | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Class C | 1.63% | | | |
Actual | | $ 1,000.00 | $ 956.60 | $ 7.91 |
HypotheticalA | | $ 1,000.00 | $ 1,016.71 | $ 8.15 |
Small Cap Independence | .65% | | | |
Actual | | $ 1,000.00 | $ 961.50 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.57 | $ 3.26 |
Institutional Class | .54% | | | |
Actual | | $ 1,000.00 | $ 961.60 | $ 2.63 |
HypotheticalA | | $ 1,000.00 | $ 1,022.12 | $ 2.71 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
AirTran Holdings, Inc. | 2.1 | 1.1 |
Conceptus, Inc. | 1.7 | 1.4 |
Sunpower Corp. Class B | 1.6 | 0.0 |
Alaska Air Group, Inc. | 1.6 | 1.5 |
Wyndham Worldwide Corp. | 1.5 | 0.0 |
Rush Enterprises, Inc. Class A | 1.5 | 0.4 |
Life Technologies Corp. | 1.4 | 0.0 |
Janus Capital Group, Inc. | 1.2 | 0.8 |
Fourlis Holdings SA | 1.2 | 1.1 |
KLA-Tencor Corp. | 1.2 | 0.3 |
| 15.0 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 26.7 | 14.8 |
Industrials | 18.3 | 19.6 |
Financials | 15.4 | 17.4 |
Information Technology | 13.2 | 15.6 |
Health Care | 11.2 | 12.3 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Investment
Companies 99.6% | | | Stocks and
Investment
Companies 98.2% | |
| Short-Term
Investments and
Net Other Assets 0.4% | | | Short-Term
Investments and
Net Other Assets 1.8% | |
* Foreign investments | 12.8% | | ** Foreign investments | 13.7% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 26.7% |
Auto Components - 3.1% |
Autoliv, Inc. | 220,800 | | $ 5,447 |
BorgWarner, Inc. (d) | 310,300 | | 8,983 |
Federal-Mogul Corp. Class A (a) | 596,575 | | 6,622 |
Gentex Corp. | 844,100 | | 11,286 |
The Goodyear Tire & Rubber Co. (a) | 476,830 | | 5,240 |
| | 37,578 |
Diversified Consumer Services - 1.1% |
Coinstar, Inc. (a) | 369,588 | | 13,154 |
Hotels, Restaurants & Leisure - 6.6% |
Bally Technologies, Inc. (a) | 223,400 | | 5,849 |
Domino's Pizza, Inc. (a) | 738,100 | | 6,968 |
InterContinental Hotel Group PLC ADR (d) | 642,700 | | 6,086 |
Landry's Restaurants, Inc. (d) | 425,721 | | 3,891 |
Morgans Hotel Group Co. (a) | 891,064 | | 3,823 |
Morton's Restaurant Group, Inc. (a) | 613,849 | | 2,848 |
Penn National Gaming, Inc. (a) | 264,300 | | 8,991 |
Ruth's Chris Steak House, Inc. (a)(e) | 1,769,806 | | 6,407 |
Starwood Hotels & Resorts Worldwide, Inc. | 546,600 | | 11,402 |
Vail Resorts, Inc. (a) | 86,700 | | 2,532 |
WMS Industries, Inc. (a) | 133,658 | | 4,292 |
Wyndham Worldwide Corp. | 1,567,715 | | 18,311 |
| | 81,400 |
Household Durables - 3.7% |
Hooker Furniture Corp. | 128,564 | | 1,507 |
Lennar Corp. Class A | 61,100 | | 595 |
M.D.C. Holdings, Inc. | 168,900 | | 5,773 |
Meritage Homes Corp. (a) | 477,200 | | 9,931 |
Mohawk Industries, Inc. (a) | 222,900 | | 10,545 |
Pulte Homes, Inc. (d) | 1,105,200 | | 12,721 |
Ryland Group, Inc. | 226,600 | | 4,693 |
| | 45,765 |
Leisure Equipment & Products - 0.7% |
Brunswick Corp. | 1,401,800 | | 8,383 |
Media - 1.7% |
Discovery Communications, Inc. (a) | 402,900 | | 7,651 |
Global Sources Ltd. | 23,232 | | 103 |
Harte-Hanks, Inc. | 307,000 | | 2,536 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Lamar Advertising Co. Class A (a)(d) | 603,800 | | $ 10,204 |
Valassis Communications, Inc. (a) | 163,700 | | 846 |
| | 21,340 |
Specialty Retail - 8.6% |
American Eagle Outfitters, Inc. | 470,700 | | 6,976 |
AnnTaylor Stores Corp. (a) | 1,498,000 | | 11,070 |
AutoNation, Inc. (a) | 256,200 | | 4,537 |
Citi Trends, Inc. (a) | 239,400 | | 5,880 |
Fourlis Holdings SA | 1,283,430 | | 15,320 |
Gymboree Corp. (a) | 280,100 | | 9,635 |
Pacific Sunwear of California, Inc. (a) | 2,225,522 | | 9,013 |
Penske Auto Group, Inc. | 854,100 | | 11,317 |
SAZABY, Inc. | 78,100 | | 835 |
Shoe Carnival, Inc. (a) | 509,200 | | 5,937 |
Signet Jewelers Ltd. | 271,700 | | 4,312 |
The Men's Wearhouse, Inc. | 363,500 | | 6,776 |
Williams-Sonoma, Inc. | 843,700 | | 11,812 |
Zale Corp. (a)(d) | 555,204 | | 2,065 |
| | 105,485 |
Textiles, Apparel & Luxury Goods - 1.2% |
G-III Apparel Group Ltd. (a) | 463,400 | | 3,716 |
Liz Claiborne, Inc. | 1,422,500 | | 6,743 |
Ted Baker PLC | 727,900 | | 3,973 |
| | 14,432 |
TOTAL CONSUMER DISCRETIONARY | | 327,537 |
CONSUMER STAPLES - 0.8% |
Food & Staples Retailing - 0.1% |
Diedrich Coffee, Inc. (a) | 32,705 | | 318 |
Food Products - 0.7% |
Green Mountain Coffee Roasters, Inc. (a)(d) | 121,334 | | 8,774 |
TOTAL CONSUMER STAPLES | | 9,092 |
ENERGY - 7.1% |
Energy Equipment & Services - 1.3% |
Atwood Oceanics, Inc. (a) | 228,152 | | 5,092 |
Nabors Industries Ltd. (a) | 162,800 | | 2,476 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Energy Equipment & Services - continued |
Oil States International, Inc. (a) | 220,300 | | $ 4,164 |
Superior Energy Services, Inc. (a) | 219,500 | | 4,217 |
| | 15,949 |
Oil, Gas & Consumable Fuels - 5.8% |
Alpha Natural Resources, Inc. (a) | 212,000 | | 4,342 |
Cabot Oil & Gas Corp. | 364,600 | | 11,007 |
Encore Acquisition Co. (a) | 338,150 | | 9,871 |
EXCO Resources, Inc. (a) | 966,000 | | 11,379 |
Forest Oil Corp. (a) | 76,800 | | 1,229 |
Foundation Coal Holdings, Inc. | 483,800 | | 7,857 |
Goodrich Petroleum Corp. (a)(d) | 172,500 | | 3,955 |
Petrohawk Energy Corp. (a) | 250,000 | | 5,900 |
Plains Exploration & Production Co. (a) | 182,900 | | 3,451 |
Range Resources Corp. | 111,600 | | 4,461 |
Southwestern Energy Co. (a) | 155,700 | | 5,583 |
USEC, Inc. (a) | 440,100 | | 2,724 |
| | 71,759 |
TOTAL ENERGY | | 87,708 |
FINANCIALS - 15.4% |
Capital Markets - 3.8% |
Affiliated Managers Group, Inc. (a) | 190,900 | | 10,853 |
GLG Partners, Inc. warrants 12/28/11 (a) | 99,912 | | 7 |
Janus Capital Group, Inc. | 1,569,700 | | 15,744 |
optionsXpress Holdings, Inc. | 439,600 | | 7,236 |
Waddell & Reed Financial, Inc. Class A | 605,800 | | 13,576 |
| | 47,416 |
Commercial Banks - 4.4% |
Associated Banc-Corp. | 442,023 | | 6,838 |
Bank of Hawaii Corp. | 104,100 | | 3,658 |
Bank of the Ozarks, Inc. (d) | 275,500 | | 6,841 |
Boston Private Financial Holdings, Inc. | 1,237,900 | | 5,707 |
First Horizon National Corp. | 654,666 | | 7,535 |
First Midwest Bancorp, Inc., Delaware | 268,951 | | 2,383 |
KeyCorp | 911,500 | | 5,606 |
PacWest Bancorp | 383,900 | | 5,593 |
Prosperity Bancshares, Inc. | 166,211 | | 4,616 |
UMB Financial Corp. | 106,600 | | 4,879 |
| | 53,656 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - 0.3% |
Gimv NV | 68,250 | | $ 3,404 |
India Hospitality Corp. (a) | 833,320 | | 103 |
| | 3,507 |
Insurance - 3.2% |
Allied World Assurance Co. Holdings Ltd. | 132,200 | | 4,910 |
Argo Group International Holdings, Ltd. (a) | 157,400 | | 4,406 |
Endurance Specialty Holdings Ltd. | 188,400 | | 4,929 |
Montpelier Re Holdings Ltd. | 325,424 | | 4,055 |
Platinum Underwriters Holdings Ltd. | 207,100 | | 5,958 |
W.R. Berkley Corp. | 183,600 | | 4,390 |
Willis Group Holdings Ltd. | 132,200 | | 3,637 |
XL Capital Ltd. Class A | 704,600 | | 6,701 |
| | 38,986 |
Real Estate Investment Trusts - 2.7% |
Corporate Office Properties Trust (SBI) | 242,000 | | 7,396 |
Host Hotels & Resorts, Inc. | 604,000 | | 4,645 |
Segro PLC | 22,779,900 | | 7,986 |
Simon Property Group, Inc. | 204,200 | | 10,537 |
SL Green Realty Corp. | 174,100 | | 3,075 |
| | 33,639 |
Real Estate Management & Development - 0.7% |
Jones Lang LaSalle, Inc. | 224,700 | | 7,251 |
Orchid Developments Group Ltd. (a) | 2,219,000 | | 1,427 |
| | 8,678 |
Thrifts & Mortgage Finance - 0.3% |
New York Community Bancorp, Inc. (d) | 318,900 | | 3,607 |
TOTAL FINANCIALS | | 189,489 |
HEALTH CARE - 11.2% |
Biotechnology - 1.4% |
Alnylam Pharmaceuticals, Inc. (a) | 32,300 | | 593 |
Cougar Biotechnology, Inc. (a) | 44,000 | | 1,536 |
Dendreon Corp. (a) | 122,600 | | 2,599 |
Myriad Genetics, Inc. (a) | 154,600 | | 5,997 |
Theravance, Inc. (a) | 463,800 | | 6,646 |
| | 17,371 |
Health Care Equipment & Supplies - 1.7% |
Conceptus, Inc. (a)(d)(e) | 1,556,553 | | 21,076 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - 2.6% |
Capital Senior Living Corp. (a) | 796,509 | | $ 3,146 |
CardioNet, Inc. (a) | 102,500 | | 2,127 |
Emeritus Corp. (a)(d) | 501,700 | | 4,535 |
Genoptix, Inc. (a) | 263,900 | | 7,674 |
Hanger Orthopedic Group, Inc. (a) | 621,800 | | 8,649 |
IPC The Hospitalist Co., Inc. (a) | 192,100 | | 3,521 |
Sun Healthcare Group, Inc. (a) | 194,642 | | 1,649 |
| | 31,301 |
Life Sciences Tools & Services - 4.3% |
Bruker BioSciences Corp. (a) | 1,763,800 | | 11,606 |
Illumina, Inc. (a) | 212,300 | | 7,929 |
Life Technologies Corp. (a) | 446,500 | | 16,654 |
QIAGEN NV (a) | 369,900 | | 6,096 |
Techne Corp. | 149,600 | | 8,560 |
Varian, Inc. (a) | 75,000 | | 2,477 |
| | 53,322 |
Pharmaceuticals - 1.2% |
Cadence Pharmaceuticals, Inc. (a) | 689,400 | | 6,977 |
Optimer Pharmaceuticals, Inc. (a) | 307,100 | | 4,290 |
Vivus, Inc. (a) | 885,500 | | 3,551 |
| | 14,818 |
TOTAL HEALTH CARE | | 137,888 |
INDUSTRIALS - 18.3% |
Aerospace & Defense - 0.4% |
Argon ST, Inc. (a) | 214,100 | | 4,365 |
Stanley, Inc. (a) | 42,326 | | 1,091 |
| | 5,456 |
Airlines - 4.3% |
AirTran Holdings, Inc. (a) | 3,676,500 | | 25,544 |
Alaska Air Group, Inc. (a) | 1,177,200 | | 19,753 |
JetBlue Airways Corp. (a) | 1,598,900 | | 7,883 |
| | 53,180 |
Construction & Engineering - 1.5% |
MYR Group, Inc. (a) | 502,300 | | 7,489 |
Quanta Services, Inc. (a) | 275,148 | | 6,254 |
URS Corp. (a) | 92,573 | | 4,079 |
| | 17,822 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Electrical Equipment - 5.5% |
Ceres Power Holdings PLC (a)(d) | 1,131,800 | | $ 2,020 |
Energy Conversion Devices, Inc. (a) | 238,300 | | 4,380 |
First Solar, Inc. (a) | 59,700 | | 11,181 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 1,981,100 | | 6,954 |
Regal-Beloit Corp. | 132,000 | | 5,363 |
Sunpower Corp.: | | | |
Class A (a) | 250,000 | | 6,845 |
Class B (a) | 782,400 | | 19,842 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 715,500 | | 10,682 |
| | 67,267 |
Marine - 1.3% |
Eagle Bulk Shipping, Inc. | 464,700 | | 3,030 |
Genco Shipping & Trading Ltd. | 695,400 | | 13,282 |
| | 16,312 |
Professional Services - 0.8% |
ICF International, Inc. (a) | 214,100 | | 5,890 |
Monster Worldwide, Inc. (a) | 296,560 | | 4,093 |
| | 9,983 |
Road & Rail - 2.1% |
Celadon Group, Inc. (a) | 486,700 | | 3,329 |
Con-way, Inc. | 234,500 | | 5,811 |
J.B. Hunt Transport Services, Inc. | 140,200 | | 3,942 |
Old Dominion Freight Lines, Inc. (a) | 438,500 | | 12,344 |
| | 25,426 |
Trading Companies & Distributors - 2.4% |
Beacon Roofing Supply, Inc. (a) | 169,250 | | 2,691 |
Interline Brands, Inc. (a) | 190,766 | | 2,472 |
Rush Enterprises, Inc. Class A (a) | 1,350,650 | | 17,775 |
WESCO International, Inc. (a) | 249,100 | | 6,477 |
| | 29,415 |
TOTAL INDUSTRIALS | | 224,861 |
INFORMATION TECHNOLOGY - 13.2% |
Communications Equipment - 0.6% |
Comtech Telecommunications Corp. (a) | 159,100 | | 5,325 |
EMS Technologies, Inc. (a) | 93,200 | | 1,775 |
| | 7,100 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 1.2% |
SanDisk Corp. (a) | 544,100 | | $ 8,553 |
STEC, Inc. (a)(d) | 588,200 | | 5,647 |
| | 14,200 |
Electronic Equipment & Components - 1.1% |
Avnet, Inc. (a) | 436,800 | | 9,562 |
SYNNEX Corp. (a) | 205,000 | | 4,414 |
| | 13,976 |
Internet Software & Services - 2.4% |
Art Technology Group, Inc. (a) | 3,056,400 | | 9,597 |
Dice Holdings, Inc. (a) | 181,256 | | 714 |
j2 Global Communications, Inc. (a) | 298,700 | | 7,166 |
Omniture, Inc. (a) | 103,937 | | 1,281 |
Open Text Corp. (a) | 160,900 | | 5,299 |
WebMD Health Corp. Class A (a)(d) | 197,900 | | 5,108 |
| | 29,165 |
Semiconductors & Semiconductor Equipment - 5.4% |
Advanced Energy Industries, Inc. (a) | 857,841 | | 7,232 |
Atmel Corp. (a) | 1,503,400 | | 5,773 |
Intersil Corp. Class A | 357,800 | | 4,150 |
KLA-Tencor Corp. | 530,300 | | 14,711 |
Kulicke & Soffa Industries, Inc. (a) | 267,000 | | 1,068 |
Micron Technology, Inc. (a) | 1,140 | | 6 |
MKS Instruments, Inc. (a) | 494,200 | | 7,734 |
O2Micro International Ltd. sponsored ADR (a) | 915,300 | | 4,000 |
Skyworks Solutions, Inc. (a) | 507,500 | | 4,486 |
Standard Microsystems Corp. (a) | 148,490 | | 2,355 |
Verigy Ltd. (a) | 914,900 | | 10,064 |
Zoran Corp. (a) | 609,400 | | 5,448 |
| | 67,027 |
Software - 2.5% |
Ansys, Inc. (a) | 272,470 | | 7,526 |
ArcSight, Inc. (a) | 196,900 | | 2,973 |
Autonomy Corp. PLC (a) | 231,900 | | 4,863 |
Phoenix Technologies Ltd. (a) | 1,051,102 | | 2,996 |
Playtech Ltd. | 572,900 | | 3,856 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Rosetta Stone, Inc. | 188,300 | | $ 5,640 |
TeleCommunication Systems, Inc. Class A (a) | 323,500 | | 3,174 |
| | 31,028 |
TOTAL INFORMATION TECHNOLOGY | | 162,496 |
MATERIALS - 5.1% |
Chemicals - 2.4% |
Calgon Carbon Corp. (a) | 488,588 | | 8,296 |
FMC Corp. | 166,400 | | 8,109 |
Rockwood Holdings, Inc. (a) | 250,300 | | 3,079 |
Solutia, Inc. (a) | 1,129,290 | | 4,246 |
Tokyo Ohka Kogyo Co. Ltd. | 311,000 | | 5,263 |
| | 28,993 |
Containers & Packaging - 0.5% |
Rock-Tenn Co. Class A | 152,400 | | 5,755 |
Metals & Mining - 1.3% |
Eldorado Gold Corp. (a) | 373,800 | | 2,970 |
Lihir Gold Ltd. sponsored ADR (a) | 192,100 | | 4,111 |
Shore Gold, Inc. (a) | 1,550,000 | | 559 |
Steel Dynamics, Inc. | 521,600 | | 6,494 |
Yamana Gold, Inc. | 302,200 | | 2,370 |
| | 16,504 |
Paper & Forest Products - 0.9% |
Louisiana-Pacific Corp. | 2,342,200 | | 9,533 |
Norbord, Inc. | 2,000,000 | | 2,179 |
| | 11,712 |
TOTAL MATERIALS | | 62,964 |
TOTAL COMMON STOCKS (Cost $1,231,333) | 1,202,035 |
Investment Companies - 1.8% |
| | | |
iShares Dow Jones U.S. Real Estate Index ETF | 298,700 | | 9,863 |
KBW Regional Banking ETF (d) | 586,300 | | 12,224 |
TOTAL INVESTMENT COMPANIES (Cost $32,389) | 22,087 |
Money Market Funds - 5.9% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.53% (b) | 21,290,874 | | $ 21,291 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 52,038,860 | | 52,039 |
TOTAL MONEY MARKET FUNDS (Cost $73,330) | 73,330 |
Cash Equivalents - 0.4% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.15%, dated 4/30/09 due 5/1/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $4,522) | $ 4,522 | | 4,522 |
TOTAL INVESTMENT PORTFOLIO - 105.9% (Cost $1,341,574) | | 1,301,974 |
NET OTHER ASSETS - (5.9)% | | (72,793) |
NET ASSETS - 100% | $ 1,229,181 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000s) |
$4,522,000 due 5/01/09 at 0.15% |
BNP Paribas Securities Corp. | $ 2,340 |
Banc of America Securities LLC | 413 |
Barclays Capital, Inc. | 1,245 |
Deutsche Bank Securities, Inc. | 524 |
| $ 4,522 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 206 |
Fidelity Securities Lending Cash Central Fund | 1,147 |
Total | $ 1,353 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Capital Senior Living Corp. | $ 7,686 | $ - | $ 2,342 | $ - | $ - |
Carluccio's PLC | 3,480 | - | 2,296 | 63 | - |
Conceptus, Inc. | - | 7,485 | - | - | 21,076 |
Corin Group PLC | 5,002 | - | 1,707 | - | - |
McCormick & Schmick's Seafood Restaurants | 3,810 | - | 2,562 | - | - |
Pacific Premier Bancorp, Inc. | 1,326 | - | 1,136 | - | - |
Ruth's Chris Steak House, Inc. | - | 5,182 | - | - | 6,407 |
Total | $ 21,304 | $ 12,667 | $ 10,043 | $ 63 | $ 27,483 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 1,301,974 | $ 1,248,402 | $ 53,572 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.2% |
Bermuda | 2.6% |
United Kingdom | 2.0% |
Cayman Islands | 1.9% |
Marshall Islands | 1.3% |
Greece | 1.2% |
Canada | 1.1% |
Others (individually less than 1%) | 2.7% |
| 100.0% |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $461,432,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $52,639 and repurchase agreements of $4,522) - See accompanying schedule: Unaffiliated issuers (cost $1,238,946) | $ 1,201,161 | |
Fidelity Central Funds (cost $73,330) | 73,330 | |
Other affiliated issuers (cost $29,298) | 27,483 | |
Total Investments (cost $1,341,574) | | $ 1,301,974 |
Receivable for investments sold | | 87,212 |
Receivable for fund shares sold | | 1,453 |
Dividends receivable | | 498 |
Distributions receivable from Fidelity Central Funds | | 86 |
Prepaid expenses | | 10 |
Other receivables | | 73 |
Total assets | | 1,391,306 |
| | |
Liabilities | | |
Payable to custodian bank | $ 915 | |
Payable for investments purchased | 107,942 | |
Payable for fund shares redeemed | 589 | |
Accrued management fee | 290 | |
Distribution fees payable | 1 | |
Other affiliated payables | 316 | |
Other payables and accrued expenses | 33 | |
Collateral on securities loaned, at value | 52,039 | |
Total liabilities | | 162,125 |
| | |
Net Assets | | $ 1,229,181 |
Net Assets consist of: | | |
Paid in capital | | $ 2,133,129 |
Undistributed net investment income | | 453 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (864,784) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (39,617) |
Net Assets | | $ 1,229,181 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share
($2,232.2 ÷ 207.289 shares) | | $ 10.77 |
| | |
Maximum offering price per share (100/94.25 of $10.77) | | $ 11.43 |
Class T:
Net Asset Value and redemption price per share
($431.9 ÷ 40.297 shares) | | $ 10.72 |
| | |
Maximum offering price per share (100/96.50 of $10.72) | | $ 11.11 |
Class B:
Net Asset Value and offering price per share
($173.1 ÷ 16.235 shares)A | | $ 10.66 |
| | |
Class C:
Net Asset Value and offering price per share
($250.3 ÷ 23.547 shares)A | | $ 10.63 |
| | |
Small Cap Independence:
Net Asset Value, offering price and redemption price per share ($1,225,694.0 ÷ 113,235.820 shares) | | $ 10.82 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($399.0 ÷ 36.834 shares) | | $ 10.83 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $63 earned from other affiliated issuers) | | $ 5,227 |
Income from Fidelity Central Funds (including $1,147 from security lending) | | 1,353 |
Total income | | 6,580 |
| | |
Expenses | | |
Management fee
Basic fee | $ 3,406 | |
Performance adjustment | (1,835) | |
Transfer agent fees | 1,626 | |
Distribution fees | 5 | |
Accounting and security lending fees | 202 | |
Custodian fees and expenses | 52 | |
Independent trustees' compensation | 4 | |
Registration fees | 60 | |
Audit | 28 | |
Legal | 4 | |
Miscellaneous | 13 | |
Total expenses before reductions | 3,565 | |
Expense reductions | (77) | 3,488 |
Net investment income (loss) | | 3,092 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (318,859) | |
Other affiliated issuers | (60,379) | |
Foreign currency transactions | (501) | |
Total net realized gain (loss) | | (379,739) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $26) | 325,633 | |
Assets and liabilities in foreign currencies | 491 | |
Total change in net unrealized appreciation (depreciation) | | 326,124 |
Net gain (loss) | | (53,615) |
Net increase (decrease) in net assets resulting from operations | | $ (50,523) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,092 | $ 953 |
Net realized gain (loss) | (379,739) | (484,448) |
Change in net unrealized appreciation (depreciation) | 326,124 | (738,909) |
Net increase (decrease) in net assets resulting from operations | (50,523) | (1,222,404) |
Distributions to shareholders from net investment income | (2,638) | - |
Distributions to shareholders from net realized gain | - | (284,425) |
Total distributions | (2,638) | (284,425) |
Share transactions - net increase (decrease) | (13,518) | 198,096 |
Redemption fees | 73 | 286 |
Total increase (decrease) in net assets | (66,606) | (1,308,447) |
| | |
Net Assets | | |
Beginning of period | 1,295,787 | 2,604,234 |
End of period (including undistributed net investment income of $453 and accumulated net investment loss of $1, respectively) | $ 1,229,181 | $ 1,295,787 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | .02 | (.04) | (.07) H |
Net realized and unrealized gain (loss) | (.47) | (10.77) | 1.66 |
Total from investment operations | (.45) | (10.81) | 1.59 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.74) | - |
Total distributions | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.77 | $ 11.24 | $ 24.79 |
Total Return B, C, D | (4.09)% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | .89% A | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | .89% A | 1.24% | 1.27% A |
Expenses net of all reductions | .88% A | 1.23% | 1.26% A |
Net investment income (loss) | .31% A | (.24)% | (.57)% A, H |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2 | $ 2 | $ 1 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | - | (.08) | (.10) H |
Net realized and unrealized gain (loss) | (.46) | (10.76) | 1.64 |
Total from investment operations | (.46) | (10.84) | 1.54 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.71) | - |
Total distributions | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.72 | $ 11.19 | $ 24.74 |
Total Return B, C, D | (4.06)% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.17% A | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.17% A | 1.50% | 1.53% A |
Expenses net of all reductions | 1.15% A | 1.49% | 1.52% A |
Net investment income (loss) | .04% A | (.50)% | (.83)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 432 | $ 409 | $ 420 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.92)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15)H |
Net realized and unrealized gain (loss) | (.46) | (10.73) | 1.64 |
Total from investment operations | (.48) | (10.90) | 1.49 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.64) | - |
Total distributions | (.01) | (2.64) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.66 | $ 11.15 | $ 24.69 |
Total Return B, C, D | (4.34)% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.63% A | 1.99% | 2.05% A |
Expenses net of all reductions | 1.62% A | 1.99% | 2.04% A |
Net investment income (loss) | (.42)% A | (1.00)% | (1.32)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 173 | $ 199 | $ 419 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.41)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 I |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) E | (.02) | (.17) | (.15) H |
Net realized and unrealized gain (loss) | (.46) | (10.72) | 1.66 |
Total from investment operations | (.48) | (10.89) | 1.51 |
Distributions from net investment income | (.01) | - | - |
Distributions from net realized gain | - | (2.70) | - |
Total distributions | (.01) | (2.70) | - |
Redemption fees added to paid in capital E, K | - | - | - |
Net asset value, end of period | $ 10.63 | $ 11.12 | $ 24.71 |
Total Return B, C, D | (4.34)% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, J | | | |
Expenses before reductions | 1.63% A | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.63% A | 2.00% | 1.98% A |
Expenses net of all reductions | 1.62% A | 1.99% | 1.97% A |
Net investment income (loss) | (.42)% A | (1.01)% | (1.27)% A, H |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 250 | $ 183 | $ 294 |
Portfolio turnover rate G | 161% A | 101% | 84% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.36)%.
I For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Small Cap Independence
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 | $ 16.87 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .03 | .01 | (.04) G | .07 H | .10 I | (.09) |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 5.01 | 2.75 | 3.31 | 1.52 |
Total from investment operations | (.44) | (10.81) | 4.97 | 2.82 | 3.41 | 1.43 |
Distributions from net investment income | (.02) | - | (.05) | (.07) | - | - |
Distributions from net realized gain | - | (2.72) | (2.34) | (1.34) | (.89) | - |
Total distributions | (.02) | (2.72) | (2.39) | (1.41) | (.89) | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value,
end of period | $ 10.82 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 | $ 18.30 |
Total Return B, C | (3.85)% | (48.42)% | 24.42% | 14.08% | 19.05% | 8.48% |
Ratios to Average Net Assets E, J | | | | | |
Expenses before reductions | .65% A | .95% | 1.01% | .86% | .78% | .95% |
Expenses net of fee waivers, if any | .65% A | .95% | 1.00% | .86% | .78% | .95% |
Expenses net of all reductions | .63% A | .94% | .99% | .81% | .75% | .91% |
Net investment income (loss) | .56% A | .05% | (.20)% G | .32% H | .49% I | (.49)% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 1,226 | $ 1,292 | $ 2,602 | $ 2,623 | $ 1,609 | $ 945 |
Portfolio turnover rate F | 161% A | 101% | 84% | 126% | 61% | 95% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%.
H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
I Investment income per share reflects a special dividend which amounted to $.12 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.10)%.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 H |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | |
Net investment income (loss) D | .03 | .02 | (.03) G |
Net realized and unrealized gain (loss) | (.47) | (10.82) | 1.65 |
Total from investment operations | (.44) | (10.80) | 1.62 |
Distributions from net investment income | (.02) | - | - |
Distributions from net realized gain | - | (2.73) | - |
Total distributions | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, J | - | - | - |
Net asset value, end of period | $ 10.83 | $ 11.29 | $ 24.82 |
Total Return B, C | (3.84)% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, I | | | |
Expenses before reductions | .54% A | .84% | .94% A |
Expenses net of fee waivers, if any | .54% A | .84% | .94% A |
Expenses net of all reductions | .53% A | .84% | .93% A |
Net investment income (loss) | .66% A | .15% | (.24)% A, G |
Supplemental Data | | | |
Net assets, end of period (000 omitted) | $ 399 | $ 376 | $ 162 |
Portfolio turnover rate F | 161% A | 101% | 84% |
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 Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.33)%.
H For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
1. Organization.
Fidelity Small Cap Independence Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, Small Cap Independence, 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. In order to disclose class level financial information dollar amounts presented in the notes are unrounded. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 regular trading hours on the NASDAQ exchange, 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 171,540,309 |
Unrealized depreciation | (226,148,537) |
Net unrealized appreciation (depreciation) | $ (54,608,228) |
Cost for federal income tax purposes | $ 1,356,582,179 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $897,635,217 and $892,163,627 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 .35% of the Fund's average net assets and a group fee rate that averaged .27% 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 retail class of the Fund, Small Cap Independence as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .29% 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, except for the Institutional Class. 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 2,529 | $ 675 |
Class T | .25% | .25% | 924 | - |
Class B | .75% | .25% | 803 | 603 |
Class C | .75% | .25% | 870 | 401 |
| | | $ 5,126 | $ 1,679 |
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
by FDC |
Class A | $ 588 |
Class T | 52 |
Class B* | 409 |
Class C* | 46 |
| $ 1,095 |
* 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 2,957 | .29 |
Class T | 589 | .32 |
Class B | 226 | .28 |
Class C | 252 | .29 |
Small Cap Independence | 1,621,682 | .30 |
Institutional Class | 333 | .19 |
| $ 1,626,039 | |
* Annualized
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 $38,433 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 $3,500 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $69,597 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 $7,020.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Class A | $ 4,025 | $ - |
Class T | 517 | - |
Class B | 104 | - |
Class C | 117 | - |
Small Cap Independence | 2,632,884 | - |
Institutional Class | 822 | - |
Total | $ 2,638,469 | $ - |
Semiannual Report
10. Distributions to Shareholders - continued
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 217,079 |
Class T | - | 52,010 |
Class B | - | 45,676 |
Class C | - | 50,515 |
Small Cap Independence | - | 284,040,327 |
Institutional Class | - | 19,160 |
Total | $ - | $ 284,424,767 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Class A | | | | |
Shares sold | 36,221 | 205,468 | $ 349,823 | $ 3,725,058 |
Reinvestment of distributions | 387 | 10,625 | 3,793 | 214,517 |
Shares redeemed | (40,050) | (44,958) | (370,251) | (737,158) |
Net increase (decrease) | (3,442) | 171,135 | $ (16,635) | $ 3,202,417 |
Class T | | | | |
Shares sold | 6,683 | 34,295 | $ 64,637 | $ 579,208 |
Reinvestment of distributions | 52 | 2,571 | 513 | 51,838 |
Shares redeemed | (2,981) | (17,302) | (27,310) | (267,078) |
Net increase (decrease) | 3,754 | 19,564 | $ 37,840 | $ 363,968 |
Class B | | | | |
Shares sold | 3,045 | 9,865 | $ 28,677 | $ 161,442 |
Reinvestment of distributions | 10 | 2,222 | 101 | 44,826 |
Shares redeemed | (4,668) | (11,195) | (43,241) | (163,410) |
Net increase (decrease) | (1,613) | 892 | $ (14,463) | $ 42,858 |
Class C | | | | |
Shares sold | 9,880 | 29,487 | $ 88,612 | $ 552,689 |
Reinvestment of distributions | 11 | 2,368 | 107 | 47,635 |
Shares redeemed | (2,826) | (27,273) | (26,121) | (434,448) |
Net increase (decrease) | 7,065 | 4,582 | $ 62,598 | $ 165,876 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30, 2009 | Year ended
October 31, 2008 | Six months ended April 30, 2009 | Year ended
October 31, 2008 |
Small Cap Independence | | | | |
Shares sold | 12,265,733 | 25,453,153 | $ 115,700,280 | $ 420,759,999 |
Reinvestment of distributions | 263,408 | 13,819,450 | 2,594,575 | 279,429,276 |
Shares redeemed | (13,806,603) | (29,641,990) | (131,917,055) | (506,376,535) |
Net increase (decrease) | (1,277,462) | 9,630,613 | $ (13,622,200) | $ 193,812,740 |
Institutional Class | | | | |
Shares sold | 3,652 | 35,465 | $ 35,269 | $ 642,989 |
Reinvestment of distributions | 9 | 948 | 87 | 19,160 |
Shares redeemed | (103) | (9,660) | (999) | (154,150) |
Net increase (decrease) | 3,558 | 26,753 | $ 34,357 | $ 507,999 |
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Research & Analysis Company
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity 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
ASCSI-USAN-0609
1.843146.101
Fidelity®
Stock Selector
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Stock Selector | .88% | | | |
Actual | | $ 1,000.00 | $ 923.40 | $ 4.20 |
Hypothetical A | | $ 1,000.00 | $ 1,020.43 | $ 4.41 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 924.40 | $ 3.01 |
Hypothetical A | | $ 1,000.00 | $ 1,021.67 | $ 3.16 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 3.3 | 3.3 |
Wal-Mart Stores, Inc. | 2.6 | 2.6 |
Applied Materials, Inc. | 2.5 | 1.8 |
Microsoft Corp. | 2.4 | 2.7 |
Google, Inc. Class A (sub. vtg.) | 2.0 | 1.3 |
JPMorgan Chase & Co. | 2.0 | 1.2 |
Lowe's Companies, Inc. | 1.8 | 1.4 |
Apple, Inc. | 1.8 | 1.4 |
Wells Fargo & Co. | 1.6 | 0.8 |
Cisco Systems, Inc. | 1.6 | 2.0 |
| 21.6 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 23.7 | 19.1 |
Financials | 14.5 | 15.7 |
Health Care | 13.2 | 15.7 |
Consumer Discretionary | 12.1 | 8.9 |
Energy | 10.3 | 11.2 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Equity Futures 96.5% | | | Stocks and
Equity Futures 96.7% | |
 | Convertible
Securities 0.0% | | | Convertible
Securities 0.1% | |
| Short-Term
Investments and
Net Other Assets 3.5% | | | Short-Term
Investments and
Net Other Assets 3.2% | |
* Foreign investments | 8.9% | | ** Foreign investments | 8.5% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 12.1% |
Auto Components - 0.8% |
Johnson Controls, Inc. | 109,191 | | $ 2,076 |
The Goodyear Tire & Rubber Co. (a) | 173,200 | | 1,903 |
| | 3,979 |
Automobiles - 0.6% |
Ford Motor Co. (a) | 296,000 | | 1,770 |
Toyota Motor Corp. sponsored ADR | 19,700 | | 1,559 |
| | 3,329 |
Hotels, Restaurants & Leisure - 1.3% |
Buffalo Wild Wings, Inc. (a) | 38,489 | | 1,503 |
Burger King Holdings, Inc. | 89,700 | | 1,466 |
Carnival Corp. unit | 18,900 | | 508 |
Darden Restaurants, Inc. | 52,200 | | 1,930 |
Marriott International, Inc. Class A | 21,000 | | 495 |
Sonic Corp. (a) | 32,600 | | 356 |
Starbucks Corp. (a) | 51,350 | | 743 |
| | 7,001 |
Household Durables - 1.8% |
D.R. Horton, Inc. | 96,100 | | 1,254 |
Ethan Allen Interiors, Inc. | 25,900 | | 348 |
Mohawk Industries, Inc. (a) | 24,200 | | 1,145 |
Newell Rubbermaid, Inc. | 81,900 | | 856 |
Pulte Homes, Inc. | 51,100 | | 588 |
Toll Brothers, Inc. (a) | 205,000 | | 4,153 |
Whirlpool Corp. | 28,100 | | 1,269 |
| | 9,613 |
Internet & Catalog Retail - 0.1% |
Amazon.com, Inc. (a) | 7,400 | | 596 |
Media - 2.1% |
Comcast Corp. Class A (special) (non-vtg.) | 183,600 | | 2,695 |
Lamar Advertising Co. Class A (a)(d) | 58,694 | | 992 |
Scripps Networks Interactive, Inc. Class A | 14,840 | | 407 |
The DIRECTV Group, Inc. (a) | 70,800 | | 1,751 |
The Walt Disney Co. | 84,100 | | 1,842 |
Time Warner, Inc. | 99,186 | | 2,165 |
Viacom, Inc. Class B (non-vtg.) (a) | 57,800 | | 1,112 |
| | 10,964 |
Multiline Retail - 0.7% |
Kohl's Corp. (a) | 38,500 | | 1,746 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - continued |
Macy's, Inc. | 68,300 | | $ 934 |
Target Corp. | 24,720 | | 1,020 |
| | 3,700 |
Specialty Retail - 4.4% |
Best Buy Co., Inc. | 69,100 | | 2,652 |
Lowe's Companies, Inc. | 431,800 | | 9,284 |
PetSmart, Inc. | 8,100 | | 185 |
Sherwin-Williams Co. | 39,000 | | 2,209 |
Staples, Inc. | 235,682 | | 4,860 |
Tiffany & Co., Inc. | 40,600 | | 1,175 |
TJX Companies, Inc. | 71,800 | | 2,008 |
Williams-Sonoma, Inc. | 46,700 | | 654 |
| | 23,027 |
Textiles, Apparel & Luxury Goods - 0.3% |
NIKE, Inc. Class B | 1,000 | | 52 |
Polo Ralph Lauren Corp. Class A | 23,545 | | 1,268 |
| | 1,320 |
TOTAL CONSUMER DISCRETIONARY | | 63,529 |
CONSUMER STAPLES - 7.1% |
Beverages - 1.1% |
Coca-Cola Enterprises, Inc. | 31,500 | | 537 |
Molson Coors Brewing Co. Class B | 10,900 | | 417 |
PepsiCo, Inc. | 11,000 | | 547 |
The Coca-Cola Co. | 98,400 | | 4,236 |
| | 5,737 |
Food & Staples Retailing - 3.7% |
CVS Caremark Corp. | 179,800 | | 5,714 |
Wal-Mart Stores, Inc. | 274,500 | | 13,835 |
| | 19,549 |
Food Products - 0.7% |
Corn Products International, Inc. | 9,500 | | 227 |
Nestle SA: | | | |
(Reg.) | 22,149 | | 722 |
sponsored ADR (d) | 80,000 | | 2,596 |
| | 3,545 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Household Products - 1.0% |
Colgate-Palmolive Co. | 58,050 | | $ 3,425 |
Procter & Gamble Co. | 33,205 | | 1,642 |
| | 5,067 |
Personal Products - 0.0% |
Mead Johnson Nutrition Co. Class A | 8,700 | | 246 |
Tobacco - 0.6% |
Philip Morris International, Inc. | 90,800 | | 3,287 |
TOTAL CONSUMER STAPLES | | 37,431 |
ENERGY - 10.3% |
Energy Equipment & Services - 2.4% |
BJ Services Co. | 300 | | 4 |
Cameron International Corp. (a) | 128,700 | | 3,292 |
Halliburton Co. | 68,007 | | 1,375 |
Helmerich & Payne, Inc. | 18,543 | | 571 |
Nabors Industries Ltd. (a) | 48,200 | | 733 |
Schlumberger Ltd. (NY Shares) | 95,985 | | 4,702 |
Smith International, Inc. | 30,600 | | 791 |
Weatherford International Ltd. (a) | 80,900 | | 1,345 |
| | 12,813 |
Oil, Gas & Consumable Fuels - 7.9% |
Apache Corp. | 34,600 | | 2,521 |
Chesapeake Energy Corp. | 56,925 | | 1,122 |
EOG Resources, Inc. | 42,482 | | 2,697 |
Exxon Mobil Corp. | 258,475 | | 17,231 |
Hess Corp. | 48,000 | | 2,630 |
Occidental Petroleum Corp. | 63,100 | | 3,552 |
Peabody Energy Corp. | 53,400 | | 1,409 |
Petrohawk Energy Corp. (a) | 44,100 | | 1,041 |
Plains Exploration & Production Co. (a) | 48,100 | | 908 |
Range Resources Corp. | 62,800 | | 2,510 |
Southwestern Energy Co. (a) | 77,600 | | 2,783 |
Ultra Petroleum Corp. (a) | 59,210 | | 2,534 |
Williams Companies, Inc. | 21,800 | | 307 |
| | 41,245 |
TOTAL ENERGY | | 54,058 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - 14.5% |
Capital Markets - 4.7% |
Ameriprise Financial, Inc. | 43,720 | | $ 1,152 |
Bank of New York Mellon Corp. | 48,400 | | 1,233 |
Charles Schwab Corp. | 157,267 | | 2,906 |
Deutsche Bank AG (NY Shares) | 28,300 | | 1,484 |
Goldman Sachs Group, Inc. | 60,166 | | 7,731 |
Janus Capital Group, Inc. | 200,300 | | 2,009 |
Morgan Stanley | 26,398 | | 624 |
State Street Corp. | 222,446 | | 7,592 |
| | 24,731 |
Commercial Banks - 2.1% |
KeyCorp | 48,700 | | 300 |
PNC Financial Services Group, Inc. | 37,200 | | 1,477 |
U.S. Bancorp, Delaware | 57,100 | | 1,040 |
Wells Fargo & Co. | 417,651 | | 8,357 |
| | 11,174 |
Consumer Finance - 0.3% |
American Express Co. | 15,900 | | 401 |
Capital One Financial Corp. | 500 | | 8 |
Discover Financial Services | 46,100 | | 375 |
SLM Corp. (a) | 164,500 | | 795 |
| | 1,579 |
Diversified Financial Services - 2.8% |
Bank of America Corp. | 327,873 | | 2,928 |
Citigroup, Inc. (d) | 348,600 | | 1,063 |
JPMorgan Chase & Co. | 313,900 | | 10,359 |
| | 14,350 |
Insurance - 4.1% |
ACE Ltd. | 140,900 | | 6,526 |
AFLAC, Inc. | 5,400 | | 156 |
Berkshire Hathaway, Inc. Class A (a) | 45 | | 4,230 |
Everest Re Group Ltd. | 35,811 | | 2,673 |
Hartford Financial Services Group, Inc. | 96,558 | | 1,108 |
MBIA, Inc. (a) | 59,200 | | 280 |
MetLife, Inc. | 106,600 | | 3,171 |
PartnerRe Ltd. | 25,300 | | 1,725 |
The Travelers Companies, Inc. | 43,400 | | 1,785 |
| | 21,654 |
Real Estate Investment Trusts - 0.4% |
Simon Property Group, Inc. | 37,800 | | 1,950 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Management & Development - 0.1% |
CB Richard Ellis Group, Inc. Class A (a) | 72,600 | | $ 545 |
TOTAL FINANCIALS | | 75,983 |
HEALTH CARE - 13.2% |
Biotechnology - 3.3% |
Amgen, Inc. (a) | 89,637 | | 4,345 |
Biogen Idec, Inc. (a) | 12,970 | | 627 |
Celgene Corp. (a) | 36,042 | | 1,540 |
Cephalon, Inc. (a) | 37,300 | | 2,447 |
Dendreon Corp. (a) | 23,100 | | 490 |
Gilead Sciences, Inc. (a) | 44,848 | | 2,054 |
MannKind Corp. (a) | 27,000 | | 110 |
Myriad Genetics, Inc. (a) | 36,400 | | 1,412 |
OSI Pharmaceuticals, Inc. (a) | 33,856 | | 1,137 |
PDL BioPharma, Inc. | 181,991 | | 1,301 |
Vertex Pharmaceuticals, Inc. (a) | 52,000 | | 1,603 |
| | 17,066 |
Health Care Equipment & Supplies - 2.4% |
Baxter International, Inc. | 109,300 | | 5,301 |
C.R. Bard, Inc. | 29,965 | | 2,146 |
China Medical Technologies, Inc. sponsored ADR | 28,400 | | 555 |
Covidien Ltd. | 103,344 | | 3,408 |
St. Jude Medical, Inc. (a) | 14,100 | | 473 |
Wright Medical Group, Inc. (a) | 38,000 | | 523 |
| | 12,406 |
Health Care Providers & Services - 2.1% |
Henry Schein, Inc. (a) | 92,800 | | 3,809 |
Medco Health Solutions, Inc. (a) | 99,000 | | 4,311 |
UnitedHealth Group, Inc. | 132,248 | | 3,110 |
| | 11,230 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 37,800 | | 1,412 |
Pharmaceuticals - 5.1% |
Abbott Laboratories | 129,400 | | 5,415 |
Allergan, Inc. | 25,300 | | 1,180 |
Bristol-Myers Squibb Co. | 36,345 | | 698 |
Johnson & Johnson | 92,550 | | 4,846 |
Merck & Co., Inc. | 87,494 | | 2,121 |
Pfizer, Inc. | 545,800 | | 7,292 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Schering-Plough Corp. | 104,200 | | $ 2,399 |
Wyeth | 70,850 | | 3,004 |
| | 26,955 |
TOTAL HEALTH CARE | | 69,069 |
INDUSTRIALS - 7.6% |
Aerospace & Defense - 1.5% |
Honeywell International, Inc. | 17,060 | | 532 |
Lockheed Martin Corp. | 29,668 | | 2,330 |
United Technologies Corp. | 103,620 | | 5,061 |
| | 7,923 |
Air Freight & Logistics - 0.4% |
C.H. Robinson Worldwide, Inc. | 23,100 | | 1,228 |
FedEx Corp. | 12,200 | | 683 |
| | 1,911 |
Airlines - 0.3% |
Alaska Air Group, Inc. (a) | 34,900 | | 586 |
Delta Air Lines, Inc. (a) | 49,125 | | 303 |
UAL Corp. (a) | 147,900 | | 728 |
| | 1,617 |
Building Products - 0.1% |
Masco Corp. | 52,600 | | 466 |
Electrical Equipment - 1.2% |
Alstom SA | 800 | | 50 |
Evergreen Solar, Inc. (a) | 54,387 | | 132 |
First Solar, Inc. (a) | 5,300 | | 993 |
Renewable Energy Corp. AS (a)(d) | 26,400 | | 238 |
Rockwell Automation, Inc. | 37,800 | | 1,194 |
Sunpower Corp. Class B (a) | 40,242 | | 1,021 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 58,100 | | 867 |
Vestas Wind Systems AS (a) | 26,600 | | 1,727 |
Vestas Wind Systems AS (a)(f) | 2,100 | | 139 |
| | 6,361 |
Industrial Conglomerates - 1.4% |
3M Co. | 58,800 | | 3,387 |
General Electric Co. | 163,245 | | 2,065 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - continued |
McDermott International, Inc. (a) | 93,000 | | $ 1,501 |
Textron, Inc. | 56,700 | | 608 |
| | 7,561 |
Machinery - 1.4% |
Caterpillar, Inc. | 22,000 | | 783 |
Danaher Corp. | 43,100 | | 2,519 |
Eaton Corp. | 11,100 | | 486 |
Ingersoll-Rand Co. Ltd. Class A | 67,200 | | 1,463 |
Navistar International Corp. (a) | 50,400 | | 1,905 |
| | 7,156 |
Professional Services - 0.1% |
Manpower, Inc. | 16,100 | | 694 |
Road & Rail - 1.1% |
Landstar System, Inc. | 66,645 | | 2,373 |
Union Pacific Corp. | 68,100 | | 3,346 |
| | 5,719 |
Trading Companies & Distributors - 0.1% |
Fastenal Co. | 13,700 | | 526 |
TOTAL INDUSTRIALS | | 39,934 |
INFORMATION TECHNOLOGY - 23.7% |
Communications Equipment - 4.3% |
Cisco Systems, Inc. (a) | 417,140 | | 8,059 |
Comverse Technology, Inc. (a) | 175,200 | | 1,253 |
Corning, Inc. | 283,060 | | 4,138 |
Infinera Corp. (a) | 19,700 | | 166 |
Juniper Networks, Inc. (a) | 100,380 | | 2,173 |
QUALCOMM, Inc. | 139,580 | | 5,907 |
Research In Motion Ltd. (a) | 10,052 | | 699 |
| | 22,395 |
Computers & Peripherals - 4.6% |
Apple, Inc. (a) | 72,800 | | 9,160 |
Dell, Inc. (a) | 174,000 | | 2,022 |
Hewlett-Packard Co. | 220,195 | | 7,923 |
International Business Machines Corp. | 42,200 | | 4,355 |
SanDisk Corp. (a) | 38,400 | | 604 |
| | 24,064 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - 2.6% |
eBay, Inc. (a) | 53,053 | | $ 874 |
Google, Inc. Class A (sub. vtg.) (a) | 26,905 | | 10,654 |
Move, Inc. (a) | 514,046 | | 1,054 |
Yahoo!, Inc. (a) | 78,010 | | 1,115 |
| | 13,697 |
IT Services - 1.0% |
Paychex, Inc. | 58,080 | | 1,569 |
The Western Union Co. | 51,100 | | 856 |
Visa, Inc. | 42,900 | | 2,787 |
| | 5,212 |
Semiconductors & Semiconductor Equipment - 6.3% |
Applied Materials, Inc. | 1,095,400 | | 13,375 |
ARM Holdings PLC sponsored ADR | 249,900 | | 1,327 |
ASML Holding NV (NY Shares) | 61,700 | | 1,305 |
Broadcom Corp. Class A (a) | 31,000 | | 719 |
Intel Corp. | 308,000 | | 4,860 |
KLA-Tencor Corp. | 23,100 | | 641 |
Lam Research Corp. (a) | 127,200 | | 3,546 |
MEMC Electronic Materials, Inc. (a) | 101,300 | | 1,641 |
Micron Technology, Inc. (a) | 168,300 | | 821 |
NVIDIA Corp. (a) | 51,800 | | 595 |
Samsung Electronics Co. Ltd. | 640 | | 296 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 195,300 | | 2,064 |
Texas Instruments, Inc. | 107,300 | | 1,938 |
| | 33,128 |
Software - 4.9% |
Adobe Systems, Inc. (a) | 53,300 | | 1,458 |
Autonomy Corp. PLC (a) | 26,400 | | 554 |
BMC Software, Inc. (a) | 19,000 | | 659 |
Microsoft Corp. | 639,960 | | 12,966 |
Oracle Corp. | 400,250 | | 7,741 |
Quest Software, Inc. (a) | 144,441 | | 2,099 |
Ubisoft Entertainment SA (a) | 25,200 | | 492 |
| | 25,969 |
TOTAL INFORMATION TECHNOLOGY | | 124,465 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - 3.7% |
Chemicals - 2.5% |
Airgas, Inc. | 41,000 | | $ 1,768 |
Albemarle Corp. | 61,630 | | 1,653 |
Ashland, Inc. | 39,900 | | 876 |
Dow Chemical Co. | 31,500 | | 504 |
E.I. du Pont de Nemours & Co. | 78,500 | | 2,190 |
Ecolab, Inc. | 39,646 | | 1,528 |
FMC Corp. | 10,576 | | 515 |
Monsanto Co. | 35,300 | | 2,997 |
Praxair, Inc. | 1,200 | | 90 |
Rockwood Holdings, Inc. (a) | 33,700 | | 415 |
The Mosaic Co. | 12,100 | | 489 |
| | 13,025 |
Containers & Packaging - 0.1% |
Crown Holdings, Inc. (a) | 32,900 | | 725 |
Metals & Mining - 1.1% |
ArcelorMittal SA (NY Shares) Class A | 22,900 | | 540 |
Barrick Gold Corp. | 74,400 | | 2,154 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 40,100 | | 1,710 |
Nucor Corp. | 34,900 | | 1,420 |
| | 5,824 |
TOTAL MATERIALS | | 19,574 |
TELECOMMUNICATION SERVICES - 2.1% |
Diversified Telecommunication Services - 1.3% |
AT&T, Inc. | 38,268 | | 980 |
Verizon Communications, Inc. | 203,900 | | 6,186 |
| | 7,166 |
Wireless Telecommunication Services - 0.8% |
American Tower Corp. Class A (a) | 75,214 | | 2,389 |
Sprint Nextel Corp. (a) | 377,000 | | 1,644 |
| | 4,033 |
TOTAL TELECOMMUNICATION SERVICES | | 11,199 |
UTILITIES - 0.9% |
Electric Utilities - 0.9% |
Exelon Corp. | 85,800 | | 3,958 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Electric Utilities - continued |
FirstEnergy Corp. | 8,600 | | $ 352 |
Northeast Utilities | 23,300 | | 490 |
| | 4,800 |
TOTAL COMMON STOCKS (Cost $517,583) | 500,042 |
Convertible Preferred Stocks - 0.0% |
| | | |
FINANCIALS - 0.0% |
Commercial Banks - 0.0% |
East West Bancorp, Inc. Series A, 8.00% (Cost $800) | 800 | | 355 |
U.S. Treasury Obligations - 0.2% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.18% to 0.21% 5/21/09 to 5/28/09 (e)
(Cost $1,100) | | $ 1,100 | | 1,100 |
Money Market Funds - 5.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.53% (b) | 28,026,876 | | 28,027 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 2,441,599 | | 2,442 |
TOTAL MONEY MARKET FUNDS (Cost $30,469) | 30,469 |
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $549,952) | | 531,966 |
NET OTHER ASSETS - (1.2)% | | (6,566) |
NET ASSETS - 100% | $ 525,400 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
157 CME E-mini S&P 500 Index Contracts | June 2009 | | $ 6,830 | | $ 906 |
|
The face value of futures purchased as a percentage of net assets - 1.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,100,000. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $139,000 or 0.0% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 98 |
Fidelity Securities Lending Cash Central Fund | 123 |
Total | $ 221 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 531,966 | $ 526,728 | $ 5,238 | $ - |
Other Financial Instruments* | $ 906 | $ 906 | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $127,420,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,372) - See accompanying schedule: Unaffiliated issuers (cost $519,483) | $ 501,497 | |
Fidelity Central Funds (cost $30,469) | 30,469 | |
Total Investments (cost $549,952) | | $ 531,966 |
Cash | | 279 |
Receivable for investments sold | | 8,640 |
Receivable for fund shares sold | | 157 |
Dividends receivable | | 601 |
Distributions receivable from Fidelity Central Funds | | 84 |
Receivable for daily variation on futures contracts | | 15 |
Prepaid expenses | | 6 |
Other receivables | | 2 |
Total assets | | 541,750 |
| | |
Liabilities | | |
Payable for investments purchased | $ 13,260 | |
Payable for fund shares redeemed | 247 | |
Accrued management fee | 227 | |
Other affiliated payables | 142 | |
Other payables and accrued expenses | 32 | |
Collateral on securities loaned, at value | 2,442 | |
Total liabilities | | 16,350 |
| | |
Net Assets | | $ 525,400 |
Net Assets consist of: | | |
Paid in capital | | $ 857,310 |
Undistributed net investment income | | 1,779 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (316,608) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (17,081) |
Net Assets | | $ 525,400 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Stock Selector:
Net Asset Value, offering price and redemption price per share ($501,981 ÷ 29,318 shares) | | $ 17.12 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($23,419 ÷ 1,368 shares) | | $ 17.12 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,122 |
Interest | | 5 |
Income from Fidelity Central Funds | | 221 |
Total income | | 5,348 |
| | |
Expenses | | |
Management fee
Basic fee | $ 1,498 | |
Performance adjustment | (184) | |
Transfer agent fees | 770 | |
Accounting and security lending fees | 101 | |
Custodian fees and expenses | 25 | |
Independent trustees' compensation | 2 | |
Registration fees | 33 | |
Audit | 31 | |
Legal | 2 | |
Miscellaneous | 6 | |
Total expenses before reductions | 2,284 | |
Expense reductions | (6) | 2,278 |
Net investment income (loss) | | 3,070 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (156,352) | |
Foreign currency transactions | 1 | |
Futures contracts | (3,290) | |
Total net realized gain (loss) | | (159,641) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 94,914 | |
Futures contracts | 2,082 | |
Total change in net unrealized appreciation (depreciation) | | 96,996 |
Net gain (loss) | | (62,645) |
Net increase (decrease) in net assets resulting from operations | | $ (59,575) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,070 | $ 7,648 |
Net realized gain (loss) | (159,641) | (152,364) |
Change in net unrealized appreciation (depreciation) | 96,996 | (302,068) |
Net increase (decrease) in net assets resulting from operations | (59,575) | (446,784) |
Distributions to shareholders from net investment income | (7,570) | (4,996) |
Distributions to shareholders from net realized gain | - | (46,217) |
Total distributions | (7,570) | (51,213) |
Share transactions - net increase (decrease) | (141,180) | 226,652 |
Total increase (decrease) in net assets | (208,325) | (271,345) |
| | |
Net Assets | | |
Beginning of period | 733,725 | 1,005,070 |
End of period (including undistributed net investment income of $1,779 and undistributed net investment income of $6,281, respectively) | $ 525,400 | $ 733,725 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 | $ 21.41 | $ 19.96 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .09 | .20 | .19 | .16 | .25 G | .10 |
Net realized and unrealized gain (loss) | (1.54) | (12.14) | 5.10 | 3.46 | 2.33 | 1.47 |
Total from investment operations | (1.45) | (11.94) | 5.29 | 3.62 | 2.58 | 1.57 |
Distributions from net investment income | (.22) | (.16) | (.13) | (.12) | (.25) | (.12) |
Distributions from net realized gain | - | (1.48) | (.03) | - | - | - |
Total distributions | (.22) | (1.64) | (.16) | (.12) | (.25) | (.12) |
Net asset value, end of period | $ 17.12 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 | $ 21.41 |
Total Return B, C | (7.66)% | (38.78)% | 19.52% | 15.29% | 12.12% | 7.91% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .88% A | .93% | .87% | .88% | .84% | .85% |
Expenses net of fee waivers, if any | .88% A | .93% | .87% | .88% | .84% | .85% |
Expenses net of all reductions | .88% A | .93% | .87% | .87% | .79% | .81% |
Net investment income (loss) | 1.15% A | .77% | .64% | .61% | 1.11% G | .46% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 502 | $ 698 | $ 1,005 | $ 853 | $ 770 | $ 777 |
Portfolio turnover rate F | 137% A | 121% | 91% | 109% | 136% | 134% |
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 Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been .49%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
Semiannual Report
Financial Highlights - Class K
| Six months ended
April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 18.81 | $ 27.80 |
Income from Investment Operations | | |
Net investment income (loss) D | .11 | .06 |
Net realized and unrealized gain (loss) | (1.54) | (9.05) |
Total from investment operations | (1.43) | (8.99) |
Distributions from net investment income | (.26) | - |
Net asset value, end of period | $ 17.12 | $ 18.81 |
Total Return B, C | (7.56)% | (32.34)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .63% A | .79% A |
Expenses net of fee waivers, if any | .63% A | .79% A |
Expenses net of all reductions | .63% A | .78% A |
Net investment income (loss) | 1.40% A | .63% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 23 | $ 35 |
Portfolio turnover rate F | 137% A | 121% |
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 October 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Stock Selector (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Stock Selector 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 Stock Selector and Class K to eligible shareholders of Stock Selector. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discounts, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,849 |
Unrealized depreciation | (88,359) |
Net unrealized appreciation (depreciation) | $ (51,510) |
Cost for federal income tax purposes | $ 583,476 |
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $356,921 and $489,542, 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 .27% 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 retail class of the Fund, Stock Selector as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .50% 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 Stock Selector. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Stock Selector | $ 762 | .31 |
Class K | 8 | .06 |
| $ 770 | |
* Annualized
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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $14 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $123.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Stock Selector's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Expense Reductions - continued
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 $1 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 $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Stock Selector | $ 7,152 | $ 4,996 |
Class K | 418 | - |
Total | $ 7,570 | $ 4,996 |
From net realized gain | | |
Stock Selector | $ - | $ 46,217 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2009 | Year ended
October 31, 2008 A | Six months ended
April 30, 2009 | Year ended
October 31, 2008 A |
Stock Selector | | | | |
Shares sold | 1,760 | 14,653 | $ 28,557 | $ 387,105 |
Conversion to Class K | (155) | (1,889) | (2,474) | (46,383) |
Reinvestment of distributions | 414 | 1,639 | 6,843 | 49,243 |
Shares redeemed | (9,864) | (8,287) | (166,578) | (209,646) |
Net increase (decrease) | (7,845) | 6,116 | $ (133,652) | $ 180,319 |
Class K | | | | |
Shares sold | 384 | 68 | $ 6,213 | $ 1,398 |
Conversion from Stock Selector | 155 | 1,888 | 2,474 | 46,383 |
Reinvestment of distributions | 25 | - | 418 | - |
Shares redeemed | (1,080) | (72) | (16,633) | (1,448) |
Net increase (decrease) | (516) | 1,884 | $ (7,528) | $ 46,333 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
Semiannual Report
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.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
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Semiannual Report
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Semiannual Report
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Semiannual Report
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Semiannual Report
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FSS-USAN-0609
1.784916.106
Fidelity®
Stock Selector -
Class K
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Stock Selector | .88% | | | |
Actual | | $ 1,000.00 | $ 923.40 | $ 4.20 |
Hypothetical A | | $ 1,000.00 | $ 1,020.43 | $ 4.41 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 924.40 | $ 3.01 |
Hypothetical A | | $ 1,000.00 | $ 1,021.67 | $ 3.16 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 3.3 | 3.3 |
Wal-Mart Stores, Inc. | 2.6 | 2.6 |
Applied Materials, Inc. | 2.5 | 1.8 |
Microsoft Corp. | 2.4 | 2.7 |
Google, Inc. Class A (sub. vtg.) | 2.0 | 1.3 |
JPMorgan Chase & Co. | 2.0 | 1.2 |
Lowe's Companies, Inc. | 1.8 | 1.4 |
Apple, Inc. | 1.8 | 1.4 |
Wells Fargo & Co. | 1.6 | 0.8 |
Cisco Systems, Inc. | 1.6 | 2.0 |
| 21.6 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 23.7 | 19.1 |
Financials | 14.5 | 15.7 |
Health Care | 13.2 | 15.7 |
Consumer Discretionary | 12.1 | 8.9 |
Energy | 10.3 | 11.2 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Equity Futures 96.5% | | | Stocks and
Equity Futures 96.7% | |
| Convertible
Securities 0.0% | | | Convertible
Securities 0.1% | |
| Short-Term
Investments and
Net Other Assets 3.5% | | | Short-Term
Investments and
Net Other Assets 3.2% | |
* Foreign investments | 8.9% | | ** Foreign investments | 8.5% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.2% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 12.1% |
Auto Components - 0.8% |
Johnson Controls, Inc. | 109,191 | | $ 2,076 |
The Goodyear Tire & Rubber Co. (a) | 173,200 | | 1,903 |
| | 3,979 |
Automobiles - 0.6% |
Ford Motor Co. (a) | 296,000 | | 1,770 |
Toyota Motor Corp. sponsored ADR | 19,700 | | 1,559 |
| | 3,329 |
Hotels, Restaurants & Leisure - 1.3% |
Buffalo Wild Wings, Inc. (a) | 38,489 | | 1,503 |
Burger King Holdings, Inc. | 89,700 | | 1,466 |
Carnival Corp. unit | 18,900 | | 508 |
Darden Restaurants, Inc. | 52,200 | | 1,930 |
Marriott International, Inc. Class A | 21,000 | | 495 |
Sonic Corp. (a) | 32,600 | | 356 |
Starbucks Corp. (a) | 51,350 | | 743 |
| | 7,001 |
Household Durables - 1.8% |
D.R. Horton, Inc. | 96,100 | | 1,254 |
Ethan Allen Interiors, Inc. | 25,900 | | 348 |
Mohawk Industries, Inc. (a) | 24,200 | | 1,145 |
Newell Rubbermaid, Inc. | 81,900 | | 856 |
Pulte Homes, Inc. | 51,100 | | 588 |
Toll Brothers, Inc. (a) | 205,000 | | 4,153 |
Whirlpool Corp. | 28,100 | | 1,269 |
| | 9,613 |
Internet & Catalog Retail - 0.1% |
Amazon.com, Inc. (a) | 7,400 | | 596 |
Media - 2.1% |
Comcast Corp. Class A (special) (non-vtg.) | 183,600 | | 2,695 |
Lamar Advertising Co. Class A (a)(d) | 58,694 | | 992 |
Scripps Networks Interactive, Inc. Class A | 14,840 | | 407 |
The DIRECTV Group, Inc. (a) | 70,800 | | 1,751 |
The Walt Disney Co. | 84,100 | | 1,842 |
Time Warner, Inc. | 99,186 | | 2,165 |
Viacom, Inc. Class B (non-vtg.) (a) | 57,800 | | 1,112 |
| | 10,964 |
Multiline Retail - 0.7% |
Kohl's Corp. (a) | 38,500 | | 1,746 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - continued |
Macy's, Inc. | 68,300 | | $ 934 |
Target Corp. | 24,720 | | 1,020 |
| | 3,700 |
Specialty Retail - 4.4% |
Best Buy Co., Inc. | 69,100 | | 2,652 |
Lowe's Companies, Inc. | 431,800 | | 9,284 |
PetSmart, Inc. | 8,100 | | 185 |
Sherwin-Williams Co. | 39,000 | | 2,209 |
Staples, Inc. | 235,682 | | 4,860 |
Tiffany & Co., Inc. | 40,600 | | 1,175 |
TJX Companies, Inc. | 71,800 | | 2,008 |
Williams-Sonoma, Inc. | 46,700 | | 654 |
| | 23,027 |
Textiles, Apparel & Luxury Goods - 0.3% |
NIKE, Inc. Class B | 1,000 | | 52 |
Polo Ralph Lauren Corp. Class A | 23,545 | | 1,268 |
| | 1,320 |
TOTAL CONSUMER DISCRETIONARY | | 63,529 |
CONSUMER STAPLES - 7.1% |
Beverages - 1.1% |
Coca-Cola Enterprises, Inc. | 31,500 | | 537 |
Molson Coors Brewing Co. Class B | 10,900 | | 417 |
PepsiCo, Inc. | 11,000 | | 547 |
The Coca-Cola Co. | 98,400 | | 4,236 |
| | 5,737 |
Food & Staples Retailing - 3.7% |
CVS Caremark Corp. | 179,800 | | 5,714 |
Wal-Mart Stores, Inc. | 274,500 | | 13,835 |
| | 19,549 |
Food Products - 0.7% |
Corn Products International, Inc. | 9,500 | | 227 |
Nestle SA: | | | |
(Reg.) | 22,149 | | 722 |
sponsored ADR (d) | 80,000 | | 2,596 |
| | 3,545 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Household Products - 1.0% |
Colgate-Palmolive Co. | 58,050 | | $ 3,425 |
Procter & Gamble Co. | 33,205 | | 1,642 |
| | 5,067 |
Personal Products - 0.0% |
Mead Johnson Nutrition Co. Class A | 8,700 | | 246 |
Tobacco - 0.6% |
Philip Morris International, Inc. | 90,800 | | 3,287 |
TOTAL CONSUMER STAPLES | | 37,431 |
ENERGY - 10.3% |
Energy Equipment & Services - 2.4% |
BJ Services Co. | 300 | | 4 |
Cameron International Corp. (a) | 128,700 | | 3,292 |
Halliburton Co. | 68,007 | | 1,375 |
Helmerich & Payne, Inc. | 18,543 | | 571 |
Nabors Industries Ltd. (a) | 48,200 | | 733 |
Schlumberger Ltd. (NY Shares) | 95,985 | | 4,702 |
Smith International, Inc. | 30,600 | | 791 |
Weatherford International Ltd. (a) | 80,900 | | 1,345 |
| | 12,813 |
Oil, Gas & Consumable Fuels - 7.9% |
Apache Corp. | 34,600 | | 2,521 |
Chesapeake Energy Corp. | 56,925 | | 1,122 |
EOG Resources, Inc. | 42,482 | | 2,697 |
Exxon Mobil Corp. | 258,475 | | 17,231 |
Hess Corp. | 48,000 | | 2,630 |
Occidental Petroleum Corp. | 63,100 | | 3,552 |
Peabody Energy Corp. | 53,400 | | 1,409 |
Petrohawk Energy Corp. (a) | 44,100 | | 1,041 |
Plains Exploration & Production Co. (a) | 48,100 | | 908 |
Range Resources Corp. | 62,800 | | 2,510 |
Southwestern Energy Co. (a) | 77,600 | | 2,783 |
Ultra Petroleum Corp. (a) | 59,210 | | 2,534 |
Williams Companies, Inc. | 21,800 | | 307 |
| | 41,245 |
TOTAL ENERGY | | 54,058 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - 14.5% |
Capital Markets - 4.7% |
Ameriprise Financial, Inc. | 43,720 | | $ 1,152 |
Bank of New York Mellon Corp. | 48,400 | | 1,233 |
Charles Schwab Corp. | 157,267 | | 2,906 |
Deutsche Bank AG (NY Shares) | 28,300 | | 1,484 |
Goldman Sachs Group, Inc. | 60,166 | | 7,731 |
Janus Capital Group, Inc. | 200,300 | | 2,009 |
Morgan Stanley | 26,398 | | 624 |
State Street Corp. | 222,446 | | 7,592 |
| | 24,731 |
Commercial Banks - 2.1% |
KeyCorp | 48,700 | | 300 |
PNC Financial Services Group, Inc. | 37,200 | | 1,477 |
U.S. Bancorp, Delaware | 57,100 | | 1,040 |
Wells Fargo & Co. | 417,651 | | 8,357 |
| | 11,174 |
Consumer Finance - 0.3% |
American Express Co. | 15,900 | | 401 |
Capital One Financial Corp. | 500 | | 8 |
Discover Financial Services | 46,100 | | 375 |
SLM Corp. (a) | 164,500 | | 795 |
| | 1,579 |
Diversified Financial Services - 2.8% |
Bank of America Corp. | 327,873 | | 2,928 |
Citigroup, Inc. (d) | 348,600 | | 1,063 |
JPMorgan Chase & Co. | 313,900 | | 10,359 |
| | 14,350 |
Insurance - 4.1% |
ACE Ltd. | 140,900 | | 6,526 |
AFLAC, Inc. | 5,400 | | 156 |
Berkshire Hathaway, Inc. Class A (a) | 45 | | 4,230 |
Everest Re Group Ltd. | 35,811 | | 2,673 |
Hartford Financial Services Group, Inc. | 96,558 | | 1,108 |
MBIA, Inc. (a) | 59,200 | | 280 |
MetLife, Inc. | 106,600 | | 3,171 |
PartnerRe Ltd. | 25,300 | | 1,725 |
The Travelers Companies, Inc. | 43,400 | | 1,785 |
| | 21,654 |
Real Estate Investment Trusts - 0.4% |
Simon Property Group, Inc. | 37,800 | | 1,950 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Management & Development - 0.1% |
CB Richard Ellis Group, Inc. Class A (a) | 72,600 | | $ 545 |
TOTAL FINANCIALS | | 75,983 |
HEALTH CARE - 13.2% |
Biotechnology - 3.3% |
Amgen, Inc. (a) | 89,637 | | 4,345 |
Biogen Idec, Inc. (a) | 12,970 | | 627 |
Celgene Corp. (a) | 36,042 | | 1,540 |
Cephalon, Inc. (a) | 37,300 | | 2,447 |
Dendreon Corp. (a) | 23,100 | | 490 |
Gilead Sciences, Inc. (a) | 44,848 | | 2,054 |
MannKind Corp. (a) | 27,000 | | 110 |
Myriad Genetics, Inc. (a) | 36,400 | | 1,412 |
OSI Pharmaceuticals, Inc. (a) | 33,856 | | 1,137 |
PDL BioPharma, Inc. | 181,991 | | 1,301 |
Vertex Pharmaceuticals, Inc. (a) | 52,000 | | 1,603 |
| | 17,066 |
Health Care Equipment & Supplies - 2.4% |
Baxter International, Inc. | 109,300 | | 5,301 |
C.R. Bard, Inc. | 29,965 | | 2,146 |
China Medical Technologies, Inc. sponsored ADR | 28,400 | | 555 |
Covidien Ltd. | 103,344 | | 3,408 |
St. Jude Medical, Inc. (a) | 14,100 | | 473 |
Wright Medical Group, Inc. (a) | 38,000 | | 523 |
| | 12,406 |
Health Care Providers & Services - 2.1% |
Henry Schein, Inc. (a) | 92,800 | | 3,809 |
Medco Health Solutions, Inc. (a) | 99,000 | | 4,311 |
UnitedHealth Group, Inc. | 132,248 | | 3,110 |
| | 11,230 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 37,800 | | 1,412 |
Pharmaceuticals - 5.1% |
Abbott Laboratories | 129,400 | | 5,415 |
Allergan, Inc. | 25,300 | | 1,180 |
Bristol-Myers Squibb Co. | 36,345 | | 698 |
Johnson & Johnson | 92,550 | | 4,846 |
Merck & Co., Inc. | 87,494 | | 2,121 |
Pfizer, Inc. | 545,800 | | 7,292 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Schering-Plough Corp. | 104,200 | | $ 2,399 |
Wyeth | 70,850 | | 3,004 |
| | 26,955 |
TOTAL HEALTH CARE | | 69,069 |
INDUSTRIALS - 7.6% |
Aerospace & Defense - 1.5% |
Honeywell International, Inc. | 17,060 | | 532 |
Lockheed Martin Corp. | 29,668 | | 2,330 |
United Technologies Corp. | 103,620 | | 5,061 |
| | 7,923 |
Air Freight & Logistics - 0.4% |
C.H. Robinson Worldwide, Inc. | 23,100 | | 1,228 |
FedEx Corp. | 12,200 | | 683 |
| | 1,911 |
Airlines - 0.3% |
Alaska Air Group, Inc. (a) | 34,900 | | 586 |
Delta Air Lines, Inc. (a) | 49,125 | | 303 |
UAL Corp. (a) | 147,900 | | 728 |
| | 1,617 |
Building Products - 0.1% |
Masco Corp. | 52,600 | | 466 |
Electrical Equipment - 1.2% |
Alstom SA | 800 | | 50 |
Evergreen Solar, Inc. (a) | 54,387 | | 132 |
First Solar, Inc. (a) | 5,300 | | 993 |
Renewable Energy Corp. AS (a)(d) | 26,400 | | 238 |
Rockwell Automation, Inc. | 37,800 | | 1,194 |
Sunpower Corp. Class B (a) | 40,242 | | 1,021 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 58,100 | | 867 |
Vestas Wind Systems AS (a) | 26,600 | | 1,727 |
Vestas Wind Systems AS (a)(f) | 2,100 | | 139 |
| | 6,361 |
Industrial Conglomerates - 1.4% |
3M Co. | 58,800 | | 3,387 |
General Electric Co. | 163,245 | | 2,065 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - continued |
McDermott International, Inc. (a) | 93,000 | | $ 1,501 |
Textron, Inc. | 56,700 | | 608 |
| | 7,561 |
Machinery - 1.4% |
Caterpillar, Inc. | 22,000 | | 783 |
Danaher Corp. | 43,100 | | 2,519 |
Eaton Corp. | 11,100 | | 486 |
Ingersoll-Rand Co. Ltd. Class A | 67,200 | | 1,463 |
Navistar International Corp. (a) | 50,400 | | 1,905 |
| | 7,156 |
Professional Services - 0.1% |
Manpower, Inc. | 16,100 | | 694 |
Road & Rail - 1.1% |
Landstar System, Inc. | 66,645 | | 2,373 |
Union Pacific Corp. | 68,100 | | 3,346 |
| | 5,719 |
Trading Companies & Distributors - 0.1% |
Fastenal Co. | 13,700 | | 526 |
TOTAL INDUSTRIALS | | 39,934 |
INFORMATION TECHNOLOGY - 23.7% |
Communications Equipment - 4.3% |
Cisco Systems, Inc. (a) | 417,140 | | 8,059 |
Comverse Technology, Inc. (a) | 175,200 | | 1,253 |
Corning, Inc. | 283,060 | | 4,138 |
Infinera Corp. (a) | 19,700 | | 166 |
Juniper Networks, Inc. (a) | 100,380 | | 2,173 |
QUALCOMM, Inc. | 139,580 | | 5,907 |
Research In Motion Ltd. (a) | 10,052 | | 699 |
| | 22,395 |
Computers & Peripherals - 4.6% |
Apple, Inc. (a) | 72,800 | | 9,160 |
Dell, Inc. (a) | 174,000 | | 2,022 |
Hewlett-Packard Co. | 220,195 | | 7,923 |
International Business Machines Corp. | 42,200 | | 4,355 |
SanDisk Corp. (a) | 38,400 | | 604 |
| | 24,064 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - 2.6% |
eBay, Inc. (a) | 53,053 | | $ 874 |
Google, Inc. Class A (sub. vtg.) (a) | 26,905 | | 10,654 |
Move, Inc. (a) | 514,046 | | 1,054 |
Yahoo!, Inc. (a) | 78,010 | | 1,115 |
| | 13,697 |
IT Services - 1.0% |
Paychex, Inc. | 58,080 | | 1,569 |
The Western Union Co. | 51,100 | | 856 |
Visa, Inc. | 42,900 | | 2,787 |
| | 5,212 |
Semiconductors & Semiconductor Equipment - 6.3% |
Applied Materials, Inc. | 1,095,400 | | 13,375 |
ARM Holdings PLC sponsored ADR | 249,900 | | 1,327 |
ASML Holding NV (NY Shares) | 61,700 | | 1,305 |
Broadcom Corp. Class A (a) | 31,000 | | 719 |
Intel Corp. | 308,000 | | 4,860 |
KLA-Tencor Corp. | 23,100 | | 641 |
Lam Research Corp. (a) | 127,200 | | 3,546 |
MEMC Electronic Materials, Inc. (a) | 101,300 | | 1,641 |
Micron Technology, Inc. (a) | 168,300 | | 821 |
NVIDIA Corp. (a) | 51,800 | | 595 |
Samsung Electronics Co. Ltd. | 640 | | 296 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 195,300 | | 2,064 |
Texas Instruments, Inc. | 107,300 | | 1,938 |
| | 33,128 |
Software - 4.9% |
Adobe Systems, Inc. (a) | 53,300 | | 1,458 |
Autonomy Corp. PLC (a) | 26,400 | | 554 |
BMC Software, Inc. (a) | 19,000 | | 659 |
Microsoft Corp. | 639,960 | | 12,966 |
Oracle Corp. | 400,250 | | 7,741 |
Quest Software, Inc. (a) | 144,441 | | 2,099 |
Ubisoft Entertainment SA (a) | 25,200 | | 492 |
| | 25,969 |
TOTAL INFORMATION TECHNOLOGY | | 124,465 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - 3.7% |
Chemicals - 2.5% |
Airgas, Inc. | 41,000 | | $ 1,768 |
Albemarle Corp. | 61,630 | | 1,653 |
Ashland, Inc. | 39,900 | | 876 |
Dow Chemical Co. | 31,500 | | 504 |
E.I. du Pont de Nemours & Co. | 78,500 | | 2,190 |
Ecolab, Inc. | 39,646 | | 1,528 |
FMC Corp. | 10,576 | | 515 |
Monsanto Co. | 35,300 | | 2,997 |
Praxair, Inc. | 1,200 | | 90 |
Rockwood Holdings, Inc. (a) | 33,700 | | 415 |
The Mosaic Co. | 12,100 | | 489 |
| | 13,025 |
Containers & Packaging - 0.1% |
Crown Holdings, Inc. (a) | 32,900 | | 725 |
Metals & Mining - 1.1% |
ArcelorMittal SA (NY Shares) Class A | 22,900 | | 540 |
Barrick Gold Corp. | 74,400 | | 2,154 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 40,100 | | 1,710 |
Nucor Corp. | 34,900 | | 1,420 |
| | 5,824 |
TOTAL MATERIALS | | 19,574 |
TELECOMMUNICATION SERVICES - 2.1% |
Diversified Telecommunication Services - 1.3% |
AT&T, Inc. | 38,268 | | 980 |
Verizon Communications, Inc. | 203,900 | | 6,186 |
| | 7,166 |
Wireless Telecommunication Services - 0.8% |
American Tower Corp. Class A (a) | 75,214 | | 2,389 |
Sprint Nextel Corp. (a) | 377,000 | | 1,644 |
| | 4,033 |
TOTAL TELECOMMUNICATION SERVICES | | 11,199 |
UTILITIES - 0.9% |
Electric Utilities - 0.9% |
Exelon Corp. | 85,800 | | 3,958 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Electric Utilities - continued |
FirstEnergy Corp. | 8,600 | | $ 352 |
Northeast Utilities | 23,300 | | 490 |
| | 4,800 |
TOTAL COMMON STOCKS (Cost $517,583) | 500,042 |
Convertible Preferred Stocks - 0.0% |
| | | |
FINANCIALS - 0.0% |
Commercial Banks - 0.0% |
East West Bancorp, Inc. Series A, 8.00% (Cost $800) | 800 | | 355 |
U.S. Treasury Obligations - 0.2% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.18% to 0.21% 5/21/09 to 5/28/09 (e)
(Cost $1,100) | | $ 1,100 | | 1,100 |
Money Market Funds - 5.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.53% (b) | 28,026,876 | | 28,027 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 2,441,599 | | 2,442 |
TOTAL MONEY MARKET FUNDS (Cost $30,469) | 30,469 |
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $549,952) | | 531,966 |
NET OTHER ASSETS - (1.2)% | | (6,566) |
NET ASSETS - 100% | $ 525,400 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
157 CME E-mini S&P 500 Index Contracts | June 2009 | | $ 6,830 | | $ 906 |
|
The face value of futures purchased as a percentage of net assets - 1.3% |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,100,000. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $139,000 or 0.0% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 98 |
Fidelity Securities Lending Cash Central Fund | 123 |
Total | $ 221 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 531,966 | $ 526,728 | $ 5,238 | $ - |
Other Financial Instruments* | $ 906 | $ 906 | $ - | $ - |
* Other financial instruments include Futures Contracts. |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $127,420,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,372) - See accompanying schedule: Unaffiliated issuers (cost $519,483) | $ 501,497 | |
Fidelity Central Funds (cost $30,469) | 30,469 | |
Total Investments (cost $549,952) | | $ 531,966 |
Cash | | 279 |
Receivable for investments sold | | 8,640 |
Receivable for fund shares sold | | 157 |
Dividends receivable | | 601 |
Distributions receivable from Fidelity Central Funds | | 84 |
Receivable for daily variation on futures contracts | | 15 |
Prepaid expenses | | 6 |
Other receivables | | 2 |
Total assets | | 541,750 |
| | |
Liabilities | | |
Payable for investments purchased | $ 13,260 | |
Payable for fund shares redeemed | 247 | |
Accrued management fee | 227 | |
Other affiliated payables | 142 | |
Other payables and accrued expenses | 32 | |
Collateral on securities loaned, at value | 2,442 | |
Total liabilities | | 16,350 |
| | |
Net Assets | | $ 525,400 |
Net Assets consist of: | | |
Paid in capital | | $ 857,310 |
Undistributed net investment income | | 1,779 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (316,608) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (17,081) |
Net Assets | | $ 525,400 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Stock Selector:
Net Asset Value, offering price and redemption price per share ($501,981 ÷ 29,318 shares) | | $ 17.12 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($23,419 ÷ 1,368 shares) | | $ 17.12 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,122 |
Interest | | 5 |
Income from Fidelity Central Funds | | 221 |
Total income | | 5,348 |
| | |
Expenses | | |
Management fee
Basic fee | $ 1,498 | |
Performance adjustment | (184) | |
Transfer agent fees | 770 | |
Accounting and security lending fees | 101 | |
Custodian fees and expenses | 25 | |
Independent trustees' compensation | 2 | |
Registration fees | 33 | |
Audit | 31 | |
Legal | 2 | |
Miscellaneous | 6 | |
Total expenses before reductions | 2,284 | |
Expense reductions | (6) | 2,278 |
Net investment income (loss) | | 3,070 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (156,352) | |
Foreign currency transactions | 1 | |
Futures contracts | (3,290) | |
Total net realized gain (loss) | | (159,641) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 94,914 | |
Futures contracts | 2,082 | |
Total change in net unrealized appreciation (depreciation) | | 96,996 |
Net gain (loss) | | (62,645) |
Net increase (decrease) in net assets resulting from operations | | $ (59,575) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009
(Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,070 | $ 7,648 |
Net realized gain (loss) | (159,641) | (152,364) |
Change in net unrealized appreciation (depreciation) | 96,996 | (302,068) |
Net increase (decrease) in net assets resulting from operations | (59,575) | (446,784) |
Distributions to shareholders from net investment income | (7,570) | (4,996) |
Distributions to shareholders from net realized gain | - | (46,217) |
Total distributions | (7,570) | (51,213) |
Share transactions - net increase (decrease) | (141,180) | 226,652 |
Total increase (decrease) in net assets | (208,325) | (271,345) |
| | |
Net Assets | | |
Beginning of period | 733,725 | 1,005,070 |
End of period (including undistributed net investment income of $1,779 and undistributed net investment income of $6,281, respectively) | $ 525,400 | $ 733,725 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 | $ 21.41 | $ 19.96 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .09 | .20 | .19 | .16 | .25 G | .10 |
Net realized and unrealized gain (loss) | (1.54) | (12.14) | 5.10 | 3.46 | 2.33 | 1.47 |
Total from investment operations | (1.45) | (11.94) | 5.29 | 3.62 | 2.58 | 1.57 |
Distributions from net investment income | (.22) | (.16) | (.13) | (.12) | (.25) | (.12) |
Distributions from net realized gain | - | (1.48) | (.03) | - | - | - |
Total distributions | (.22) | (1.64) | (.16) | (.12) | (.25) | (.12) |
Net asset value, end of period | $ 17.12 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 | $ 21.41 |
Total Return B, C | (7.66)% | (38.78)% | 19.52% | 15.29% | 12.12% | 7.91% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .88% A | .93% | .87% | .88% | .84% | .85% |
Expenses net of fee waivers, if any | .88% A | .93% | .87% | .88% | .84% | .85% |
Expenses net of all reductions | .88% A | .93% | .87% | .87% | .79% | .81% |
Net investment income (loss) | 1.15% A | .77% | .64% | .61% | 1.11% G | .46% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 502 | $ 698 | $ 1,005 | $ 853 | $ 770 | $ 777 |
Portfolio turnover rate F | 137% A | 121% | 91% | 109% | 136% | 134% |
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 Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been .49%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
Semiannual Report
Financial Highlights - Class K
| Six months ended
April 30, 2009 | Year ended
October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 18.81 | $ 27.80 |
Income from Investment Operations | | |
Net investment income (loss) D | .11 | .06 |
Net realized and unrealized gain (loss) | (1.54) | (9.05) |
Total from investment operations | (1.43) | (8.99) |
Distributions from net investment income | (.26) | - |
Net asset value, end of period | $ 17.12 | $ 18.81 |
Total Return B, C | (7.56)% | (32.34)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .63% A | .79% A |
Expenses net of fee waivers, if any | .63% A | .79% A |
Expenses net of all reductions | .63% A | .78% A |
Net investment income (loss) | 1.40% A | .63% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 23 | $ 35 |
Portfolio turnover rate F | 137% A | 121% |
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 October 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Stock Selector (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Stock Selector 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 Stock Selector and Class K to eligible shareholders of Stock Selector. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, market discounts, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,849 |
Unrealized depreciation | (88,359) |
Net unrealized appreciation (depreciation) | $ (51,510) |
Cost for federal income tax purposes | $ 583,476 |
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $356,921 and $489,542, 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 .27% 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 retail class of the Fund, Stock Selector as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .50% 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 Stock Selector. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Stock Selector | $ 762 | .31 |
Class K | 8 | .06 |
| $ 770 | |
* Annualized
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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $14 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $123.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Stock Selector's operating expenses. During the period, this reimbursement reduced the class' expenses by $4.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Expense Reductions - continued
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 $1 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 $1.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Stock Selector | $ 7,152 | $ 4,996 |
Class K | 418 | - |
Total | $ 7,570 | $ 4,996 |
From net realized gain | | |
Stock Selector | $ - | $ 46,217 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2009 | Year ended
October 31, 2008 A | Six months ended
April 30, 2009 | Year ended
October 31, 2008 A |
Stock Selector | | | | |
Shares sold | 1,760 | 14,653 | $ 28,557 | $ 387,105 |
Conversion to Class K | (155) | (1,889) | (2,474) | (46,383) |
Reinvestment of distributions | 414 | 1,639 | 6,843 | 49,243 |
Shares redeemed | (9,864) | (8,287) | (166,578) | (209,646) |
Net increase (decrease) | (7,845) | 6,116 | $ (133,652) | $ 180,319 |
Class K | | | | |
Shares sold | 384 | 68 | $ 6,213 | $ 1,398 |
Conversion from Stock Selector | 155 | 1,888 | 2,474 | 46,383 |
Reinvestment of distributions | 25 | - | 418 | - |
Shares redeemed | (1,080) | (72) | (16,633) | (1,448) |
Net increase (decrease) | (516) | 1,884 | $ (7,528) | $ 46,333 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
Semiannual Report
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.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
2000 Avenue of the Stars
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16656 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
398 West El Camino Real
Sunnyvale, CA
111 South Westlake Blvd
Thousand Oaks, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6326 Canoga Avenue
Woodland Hills, CA
Colorado
281 East Flatiron Circle
Broomfield, CO
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
175 East Altamonte Drive
Altamonte Springs, FL
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
8880 Tamiami Trail, North
Naples, FL
230 Royal Palm Way
Palm Beach, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
401 North Michigan Avenue
Chicago, IL
One Skokie Valley Road
Highland Park, IL
1415 West 22nd Street
Oak Brook, IL
15105 S LaGrange Road
Orland Park, IL
1572 East Golf Road
Schaumburg, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
8480 Keystone Crossing
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
610 York Road
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
200 Endicott Street
Danvers, MA
Semiannual Report
405 Cochituate Road
Framingham, MA
551 Boston Turnpike
Shrewsbury, MA
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
30200 Northwestern Hwy.
Farmington Hills, MI
43420 Grand River Avenue
Novi, MI
Minnesota
7740 France Avenue South
Edina, MN
8342 3rd Street North
Oakdale, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
501 Route 73 South
Marlton, NJ
150 Essex Street
Millburn, NJ
35 Morris Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New Mexico
2261 Q Street NE
Albuquerque, NM
New York
1130 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
1800 Crocker Road
Westlake, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
10 Memorial Boulevard
Providence, RI
Tennessee
3018 Peoples Street
Johnson City, TN
7628 West Farmington Blvd.
Germantown, TN
2035 Mallory Lane
Franklin, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
1701 Lake Robbins Drive
The Woodlands, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
10500 NE 8th Street
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
16020 West Bluemound Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity 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
FSS-K-USAN-0609
1.863294.100
Fidelity®
Value
Fund
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Value | .55% | | | |
Actual | | $ 1,000.00 | $ 961.60 | $ 2.68 |
Hypothetical A | | $ 1,000.00 | $ 1,022.07 | $ 2.76 |
Class K | .29% | | | |
Actual | | $ 1,000.00 | $ 962.80 | $ 1.41 |
Hypothetical A | | $ 1,000.00 | $ 1,023.36 | $ 1.45 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Avnet, Inc. | 1.4 | 1.0 |
Arrow Electronics, Inc. | 1.3 | 0.9 |
The Stanley Works | 1.2 | 0.9 |
JPMorgan Chase & Co. | 1.1 | 1.3 |
National Semiconductor Corp. | 1.0 | 1.0 |
The Goodyear Tire & Rubber Co. | 1.0 | 0.5 |
Williams-Sonoma, Inc. | 1.0 | 0.5 |
The Western Union Co. | 1.0 | 0.8 |
Xerox Corp. | 0.9 | 1.1 |
Brinker International, Inc. | 0.9 | 0.4 |
| 10.8 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 24.7 | 21.1 |
Information Technology | 17.7 | 15.6 |
Financials | 16.9 | 20.0 |
Industrials | 13.4 | 12.5 |
Materials | 6.7 | 3.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Investment
Companies 96.8% | | | Stocks and
Investment
Companies 97.8% | |
| Convertible
Securities 2.4% | | | Convertible
Securities 1.1% | |
| Short-Term
Investments and
Net Other Assets 0.8% | | | Short-Term
Investments and
Net Other Assets 1.1% | |
* Foreign investments | 11.1% | | ** Foreign investments | 9.0% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.6% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 23.5% |
Auto Components - 1.4% |
Gentex Corp. | 803,160 | | $ 10,738 |
Johnson Controls, Inc. | 813,677 | | 15,468 |
The Goodyear Tire & Rubber Co. (a) | 6,262,009 | | 68,819 |
| | 95,025 |
Automobiles - 0.8% |
Bayerische Motoren Werke AG (BMW) | 104,781 | | 3,595 |
Fiat SpA | 473,400 | | 4,627 |
Harley-Davidson, Inc. (e) | 162,278 | | 3,596 |
Renault SA | 377,745 | | 12,109 |
Thor Industries, Inc. | 401,767 | | 9,237 |
Winnebago Industries, Inc. (f) | 2,571,751 | | 22,657 |
| | 55,821 |
Diversified Consumer Services - 1.2% |
Brinks Home Security Holdings, Inc. (a) | 35,817 | | 952 |
DeVry, Inc. | 88,400 | | 3,762 |
H&R Block, Inc. | 3,439,100 | | 52,068 |
Regis Corp. | 756,800 | | 14,485 |
Service Corp. International | 1,374,200 | | 6,225 |
| | 77,492 |
Hotels, Restaurants & Leisure - 4.5% |
Brinker International, Inc. | 3,440,500 | | 60,966 |
Burger King Holdings, Inc. | 1,023,410 | | 16,723 |
Carnival Corp. unit | 1,978,100 | | 53,171 |
Penn National Gaming, Inc. (a) | 1,534,158 | | 52,192 |
Royal Caribbean Cruises Ltd. (e) | 3,045,020 | | 44,853 |
Starwood Hotels & Resorts Worldwide, Inc. | 914,036 | | 19,067 |
Vail Resorts, Inc. (a)(e) | 378,100 | | 11,041 |
WMS Industries, Inc. (a) | 966,993 | | 31,050 |
Wyndham Worldwide Corp. | 1,284,604 | | 15,004 |
| | 304,067 |
Household Durables - 6.4% |
Black & Decker Corp. | 1,303,936 | | 52,549 |
Centex Corp. | 3,613,400 | | 39,531 |
Ethan Allen Interiors, Inc. (e)(f) | 2,820,354 | | 37,934 |
Jarden Corp. (a) | 1,512,160 | | 30,394 |
KB Home | 773,900 | | 13,984 |
La-Z-Boy, Inc. | 1,080,700 | | 2,875 |
Leggett & Platt, Inc. | 3,390,850 | | 48,693 |
Newell Rubbermaid, Inc. | 1,940,269 | | 20,276 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Pulte Homes, Inc. | 2,167,800 | | $ 24,951 |
Sealy Corp., Inc. (a) | 2,422,444 | | 8,575 |
Tempur-Pedic International, Inc. | 1,528,900 | | 19,662 |
The Stanley Works | 2,045,900 | | 77,806 |
Whirlpool Corp. | 1,153,600 | | 52,097 |
| | 429,327 |
Leisure Equipment & Products - 0.6% |
Brunswick Corp. | 3,662,208 | | 21,900 |
Eastman Kodak Co. (e) | 4,555,000 | | 13,893 |
Pool Corp. (e) | 448,698 | | 8,014 |
| | 43,807 |
Media - 2.5% |
Cinemark Holdings, Inc. | 44,382 | | 395 |
Comcast Corp. Class A (special) (non-vtg.) | 891,000 | | 13,080 |
Discovery Communications, Inc. Class C (a) | 1,719,786 | | 30,131 |
Interpublic Group of Companies, Inc. (a) | 215,200 | | 1,347 |
Lamar Advertising Co. Class A (a)(e) | 920,801 | | 15,562 |
Live Nation, Inc. (a) | 1,202,862 | | 4,703 |
Omnicom Group, Inc. | 569,334 | | 17,917 |
Regal Entertainment Group Class A | 1,387,132 | | 18,116 |
Scripps Networks Interactive, Inc. Class A | 893,766 | | 24,525 |
Virgin Media, Inc. | 3,781,458 | | 29,193 |
WPP PLC | 1,569,200 | | 10,732 |
| | 165,701 |
Multiline Retail - 0.6% |
Macy's, Inc. | 1,533,280 | | 20,975 |
Nordstrom, Inc. (e) | 831,013 | | 18,806 |
| | 39,781 |
Specialty Retail - 4.9% |
Advance Auto Parts, Inc. | 613,100 | | 26,823 |
AnnTaylor Stores Corp. (a) | 1,712,740 | | 12,657 |
Asbury Automotive Group, Inc. | 1,540,833 | | 14,900 |
AutoNation, Inc. (a) | 323,900 | | 5,736 |
AutoZone, Inc. (a) | 27,697 | | 4,609 |
Best Buy Co., Inc. | 177,500 | | 6,812 |
Collective Brands, Inc. (a) | 215,200 | | 3,125 |
Gap, Inc. | 670,200 | | 10,415 |
Group 1 Automotive, Inc. (e)(f) | 1,549,900 | | 33,013 |
Limited Brands, Inc. | 1,042,919 | | 11,910 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
OfficeMax, Inc. (f) | 4,518,960 | | $ 33,666 |
PetSmart, Inc. | 1,539,033 | | 35,213 |
Sherwin-Williams Co. | 269,200 | | 15,247 |
Staples, Inc. | 2,280,933 | | 47,033 |
Talbots, Inc. (e) | 923,849 | | 2,180 |
Williams-Sonoma, Inc. (e) | 4,762,449 | | 66,674 |
| | 330,013 |
Textiles, Apparel & Luxury Goods - 0.6% |
Liz Claiborne, Inc. | 4,072,400 | | 19,303 |
VF Corp. | 324,700 | | 19,245 |
| | 38,548 |
TOTAL CONSUMER DISCRETIONARY | | 1,579,582 |
CONSUMER STAPLES - 4.2% |
Beverages - 0.9% |
Anheuser-Busch InBev NV | 763,020 | | 23,352 |
Carlsberg AS: | | | |
Series A | 178,400 | | 8,571 |
Series B | 165,300 | | 7,947 |
Coca-Cola Enterprises, Inc. | 1,208,500 | | 20,617 |
| | 60,487 |
Food & Staples Retailing - 1.5% |
Safeway, Inc. | 413,700 | | 8,171 |
SUPERVALU, Inc. | 1,589,600 | | 25,990 |
Sysco Corp. | 2,346,800 | | 54,751 |
Winn-Dixie Stores, Inc. (a) | 878,456 | | 10,067 |
| | 98,979 |
Food Products - 0.6% |
Cermaq ASA | 854,500 | | 5,150 |
Marine Harvest ASA (a) | 36,992,000 | | 16,666 |
Tyson Foods, Inc. Class A | 1,938,274 | | 20,429 |
| | 42,245 |
Household Products - 0.3% |
Energizer Holdings, Inc. (a) | 383,826 | | 21,993 |
Personal Products - 0.8% |
Avon Products, Inc. | 2,163,600 | | 49,244 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - 0.1% |
Lorillard, Inc. | 118,300 | | $ 7,468 |
TOTAL CONSUMER STAPLES | | 280,416 |
ENERGY - 6.6% |
Energy Equipment & Services - 2.3% |
BJ Services Co. | 1,375,287 | | 19,103 |
ENSCO International, Inc. | 204,900 | | 5,795 |
Nabors Industries Ltd. (a) | 970,440 | | 14,760 |
National Oilwell Varco, Inc. (a) | 953,339 | | 28,867 |
Noble Corp. | 194,613 | | 5,319 |
Patterson-UTI Energy, Inc. | 1,413,700 | | 17,968 |
Pride International, Inc. (a) | 469,500 | | 10,658 |
Smith International, Inc. | 775,200 | | 20,039 |
Weatherford International Ltd. (a) | 1,812,796 | | 30,147 |
| | 152,656 |
Oil, Gas & Consumable Fuels - 4.3% |
Cabot Oil & Gas Corp. | 960,900 | | 29,010 |
Canadian Natural Resources Ltd. | 506,100 | | 23,332 |
Chesapeake Energy Corp. | 570,700 | | 11,248 |
Cimarex Energy Co. | 161,400 | | 4,342 |
EOG Resources, Inc. | 569,900 | | 36,177 |
EXCO Resources, Inc. (a) | 1,545,000 | | 18,200 |
Hess Corp. | 538,700 | | 29,515 |
Marathon Oil Corp. | 150,600 | | 4,473 |
Petrohawk Energy Corp. (a) | 1,219,900 | | 28,790 |
Plains Exploration & Production Co. (a) | 290,100 | | 5,474 |
Range Resources Corp. | 316,800 | | 12,662 |
Southwestern Energy Co. (a) | 643,200 | | 23,065 |
Suncor Energy, Inc. | 1,162,100 | | 29,246 |
Ultra Petroleum Corp. (a) | 874,155 | | 37,414 |
| | 292,948 |
TOTAL ENERGY | | 445,604 |
FINANCIALS - 16.0% |
Capital Markets - 1.5% |
Ameriprise Financial, Inc. | 525,858 | | 13,856 |
Bank of New York Mellon Corp. | 1,798,627 | | 45,829 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
T. Rowe Price Group, Inc. | 303,000 | | $ 11,672 |
TD Ameritrade Holding Corp. (a) | 1,738,750 | | 27,664 |
| | 99,021 |
Commercial Banks - 3.6% |
Associated Banc-Corp. | 1,056,358 | | 16,342 |
Boston Private Financial Holdings, Inc. | 885,626 | | 4,083 |
CapitalSource, Inc. | 2,786,347 | | 8,610 |
Comerica, Inc. | 979,100 | | 20,542 |
KeyCorp | 4,386,468 | | 26,977 |
M&T Bank Corp. (e) | 150,405 | | 7,889 |
PNC Financial Services Group, Inc. | 1,133,804 | | 45,012 |
Susquehanna Bancshares, Inc., Pennsylvania | 291,388 | | 2,349 |
TCF Financial Corp. (e) | 1,228,100 | | 17,083 |
U.S. Bancorp, Delaware | 1,313,900 | | 23,939 |
Wells Fargo & Co. | 2,056,531 | | 41,151 |
Zions Bancorp (e) | 2,308,960 | | 25,237 |
| | 239,214 |
Consumer Finance - 1.3% |
American Express Co. | 1,149,400 | | 28,988 |
Capital One Financial Corp. | 2,336,900 | | 39,120 |
Discover Financial Services | 2,449,203 | | 19,912 |
| | 88,020 |
Diversified Financial Services - 1.6% |
Bank of America Corp. | 3,434,160 | | 30,667 |
Gimv NV | 10,800 | | 539 |
JPMorgan Chase & Co. | 2,283,600 | | 75,359 |
| | 106,565 |
Insurance - 3.0% |
Everest Re Group Ltd. | 241,545 | | 18,029 |
Lincoln National Corp. | 733,600 | | 8,246 |
Loews Corp. | 1,346,154 | | 33,506 |
Marsh & McLennan Companies, Inc. | 2,643,051 | | 55,742 |
MetLife, Inc. | 381,300 | | 11,344 |
PartnerRe Ltd. | 330,800 | | 22,557 |
Transatlantic Holdings, Inc. | 115,500 | | 4,381 |
Unum Group | 1,191,713 | | 19,473 |
Willis Group Holdings Ltd. | 1,038,100 | | 28,558 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
XL Capital Ltd. Class A | 215,200 | | $ 2,047 |
Zenith National Insurance Corp. | 8,000 | | 182 |
| | 204,065 |
Real Estate Investment Trusts - 4.0% |
Alexandria Real Estate Equities, Inc. (e) | 531,800 | | 19,400 |
Camden Property Trust (SBI) | 648,047 | | 17,582 |
Digital Realty Trust, Inc. (e) | 597,092 | | 21,501 |
Duke Realty LP | 894,500 | | 8,739 |
HCP, Inc. | 1,581,400 | | 34,712 |
Highwoods Properties, Inc. (SBI) | 1,035,100 | | 24,832 |
Host Hotels & Resorts, Inc. | 1,405,000 | | 10,804 |
Kimco Realty Corp. | 230,140 | | 2,766 |
ProLogis Trust | 3,610,883 | | 32,895 |
SL Green Realty Corp. | 342,400 | | 6,047 |
Tanger Factory Outlet Centers, Inc. | 397,090 | | 13,231 |
The Macerich Co. (e) | 1,403,000 | | 24,595 |
Vornado Realty Trust | 970,252 | | 47,436 |
Weingarten Realty Investors (SBI) (e) | 391,200 | | 6,079 |
| | 270,619 |
Real Estate Management & Development - 0.6% |
Brookfield Properties Corp. | 1,648,400 | | 12,314 |
CB Richard Ellis Group, Inc. Class A (a) | 3,984,923 | | 29,887 |
| | 42,201 |
Thrifts & Mortgage Finance - 0.4% |
New York Community Bancorp, Inc. (e) | 2,596,700 | | 29,369 |
TOTAL FINANCIALS | | 1,079,074 |
HEALTH CARE - 3.2% |
Health Care Equipment & Supplies - 0.2% |
Cooper Companies, Inc. | 343,448 | | 9,874 |
Orthofix International NV (a) | 156,308 | | 2,665 |
| | 12,539 |
Health Care Providers & Services - 2.1% |
Brookdale Senior Living, Inc. | 1,615,648 | | 16,657 |
Community Health Systems, Inc. (a) | 394,825 | | 9,018 |
Emeritus Corp. (a) | 683,926 | | 6,183 |
HealthSouth Corp. (a)(e) | 1,140,611 | | 10,688 |
Henry Schein, Inc. (a) | 680,056 | | 27,909 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
McKesson Corp. | 500,100 | | $ 18,504 |
Universal Health Services, Inc. Class B | 698,168 | | 35,188 |
VCA Antech, Inc. (a) | 632,700 | | 15,830 |
| | 139,977 |
Health Care Technology - 0.4% |
IMS Health, Inc. | 2,335,531 | | 29,334 |
Pharmaceuticals - 0.5% |
Cadence Pharmaceuticals, Inc. (a) | 430,359 | | 4,355 |
King Pharmaceuticals, Inc. (a) | 2,044,300 | | 16,109 |
Sepracor, Inc. (a) | 467,900 | | 6,649 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 125,822 | | 5,522 |
| | 32,635 |
TOTAL HEALTH CARE | | 214,485 |
INDUSTRIALS - 13.3% |
Aerospace & Defense - 0.6% |
Heico Corp. Class A | 719,872 | | 17,961 |
Honeywell International, Inc. | 700,200 | | 21,853 |
| | 39,814 |
Air Freight & Logistics - 0.8% |
United Parcel Service, Inc. Class B | 1,006,800 | | 52,696 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 1,833,600 | | 11,313 |
Building Products - 1.4% |
Masco Corp. | 5,462,100 | | 48,394 |
Owens Corning (a) | 2,442,985 | | 43,729 |
| | 92,123 |
Commercial Services & Supplies - 1.9% |
ACCO Brands Corp. (a)(f) | 2,968,856 | | 6,205 |
Cintas Corp. | 518,400 | | 13,302 |
Clean Harbors, Inc. (a) | 160,758 | | 8,054 |
Consolidated Graphics, Inc. (a)(f) | 808,914 | | 15,709 |
R.R. Donnelley & Sons Co. | 2,958,234 | | 34,463 |
Republic Services, Inc. | 2,521,007 | | 52,941 |
| | 130,674 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 0.4% |
Dycom Industries, Inc. (a)(f) | 2,696,000 | | $ 22,700 |
URS Corp. (a) | 184,307 | | 8,121 |
| | 30,821 |
Electrical Equipment - 0.7% |
Acuity Brands, Inc. | 301,200 | | 8,656 |
Cooper Industries Ltd. Class A | 590,699 | | 19,369 |
Regal-Beloit Corp. | 204,953 | | 8,327 |
Sunpower Corp. Class B (a) | 510,000 | | 12,934 |
| | 49,286 |
Machinery - 3.7% |
Albany International Corp. Class A | 1,246,085 | | 11,564 |
Briggs & Stratton Corp. (e) | 1,250,305 | | 18,605 |
Crane Co. | 40,100 | | 926 |
Cummins, Inc. | 968,485 | | 32,928 |
Deere & Co. | 530,300 | | 21,880 |
Eaton Corp. | 512,450 | | 22,445 |
Harsco Corp. | 64,200 | | 1,769 |
Illinois Tool Works, Inc. | 1,546,100 | | 50,712 |
Ingersoll-Rand Co. Ltd. Class A | 712,400 | | 15,509 |
Navistar International Corp. (a) | 796,600 | | 30,111 |
Oshkosh Co. | 160,550 | | 1,541 |
Pentair, Inc. | 1,461,900 | | 38,945 |
| | 246,935 |
Marine - 0.0% |
Alexander & Baldwin, Inc. | 114,100 | | 3,040 |
Professional Services - 1.4% |
Experian PLC | 1,510,228 | | 9,941 |
IHS, Inc. Class A (a) | 639,400 | | 26,446 |
Manpower, Inc. | 744,872 | | 32,097 |
Monster Worldwide, Inc. (a) | 1,706,419 | | 23,549 |
| | 92,033 |
Road & Rail - 1.7% |
Canadian National Railway Co. | 600,200 | | 24,265 |
Con-way, Inc. (f) | 2,415,600 | | 59,859 |
Ryder System, Inc. | 1,126,188 | | 31,184 |
| | 115,308 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Trading Companies & Distributors - 0.4% |
W.W. Grainger, Inc. | 253,400 | | $ 21,255 |
WESCO International, Inc. (a) | 278,800 | | 7,249 |
| | 28,504 |
Transportation Infrastructure - 0.1% |
Macquarie Infrastructure Co. LLC | 1,623,694 | | 4,027 |
TOTAL INDUSTRIALS | | 896,574 |
INFORMATION TECHNOLOGY - 17.7% |
Communications Equipment - 0.8% |
Corning, Inc. | 1,816,800 | | 26,562 |
Motorola, Inc. | 5,345,200 | | 29,559 |
| | 56,121 |
Computers & Peripherals - 1.4% |
Gemalto NV (a) | 295,400 | | 9,299 |
NCR Corp. (a) | 2,955,920 | | 30,003 |
NetApp, Inc. (a) | 2,380,615 | | 43,565 |
Seagate Technology | 914,100 | | 7,459 |
| | 90,326 |
Electronic Equipment & Components - 5.2% |
Agilent Technologies, Inc. (a) | 3,257,251 | | 59,477 |
Arrow Electronics, Inc. (a) | 3,857,860 | | 87,728 |
Avnet, Inc. (a) | 4,250,404 | | 93,035 |
Flextronics International Ltd. (a) | 10,787,600 | | 41,856 |
Itron, Inc. (a) | 341,897 | | 15,727 |
Tyco Electronics Ltd. | 2,899,167 | | 50,561 |
| | 348,384 |
Internet Software & Services - 1.1% |
eBay, Inc. (a) | 321,141 | | 5,289 |
VeriSign, Inc. (a) | 1,709,361 | | 35,179 |
Yahoo!, Inc. (a) | 2,258,400 | | 32,273 |
| | 72,741 |
IT Services - 2.2% |
Accenture Ltd. Class A | 843,100 | | 24,812 |
Lender Processing Services, Inc. | 1,168,555 | | 33,491 |
The Western Union Co. | 3,876,000 | | 64,923 |
Visa, Inc. | 261,600 | | 16,994 |
Wright Express Corp. (a) | 241,099 | | 5,516 |
| | 145,736 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Office Electronics - 0.9% |
Xerox Corp. | 10,037,110 | | $ 61,327 |
Semiconductors & Semiconductor Equipment - 5.1% |
Applied Materials, Inc. | 4,255,000 | | 51,954 |
ASML Holding NV (NY Shares) | 2,475,766 | | 52,362 |
Fairchild Semiconductor International, Inc. (a)(f) | 8,509,669 | | 52,420 |
International Rectifier Corp. (a) | 98,200 | | 1,658 |
KLA-Tencor Corp. | 322,800 | | 8,954 |
Lam Research Corp. (a) | 241,700 | | 6,739 |
Maxim Integrated Products, Inc. | 1,853,700 | | 25,118 |
Micron Technology, Inc. (a) | 4,219,183 | | 20,590 |
MKS Instruments, Inc. (a) | 1,117,970 | | 17,496 |
National Semiconductor Corp. | 5,565,200 | | 68,842 |
Standard Microsystems Corp. (a) | 887,232 | | 14,071 |
Varian Semiconductor Equipment Associates, Inc. (a) | 960,630 | | 24,583 |
| | 344,787 |
Software - 1.0% |
BMC Software, Inc. (a) | 107,600 | | 3,730 |
CA, Inc. | 1,476,579 | | 25,471 |
Electronic Arts, Inc. (a) | 1,632,506 | | 33,221 |
Misys PLC | 3,778,318 | | 7,709 |
| | 70,131 |
TOTAL INFORMATION TECHNOLOGY | | 1,189,553 |
MATERIALS - 6.5% |
Chemicals - 2.8% |
Albemarle Corp. | 1,723,751 | | 46,231 |
Arkema sponsored ADR | 608,007 | | 14,075 |
Ashland, Inc. | 506,000 | | 11,112 |
Celanese Corp. Class A | 746,500 | | 15,557 |
Cytec Industries, Inc. | 410,800 | | 8,158 |
FMC Corp. | 453,152 | | 22,082 |
H.B. Fuller Co. | 1,289,172 | | 22,767 |
Lubrizol Corp. | 644,000 | | 27,834 |
Solutia, Inc. (a) | 1,519,669 | | 5,714 |
W.R. Grace & Co. (a) | 1,305,345 | | 11,526 |
| | 185,056 |
Construction Materials - 0.2% |
Vulcan Materials Co. (e) | 287,380 | | 13,665 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Containers & Packaging - 1.7% |
Ball Corp. | 992,090 | | $ 37,422 |
Owens-Illinois, Inc. (a) | 2,140,054 | | 52,196 |
Rock-Tenn Co. Class A | 653,811 | | 24,688 |
| | 114,306 |
Metals & Mining - 1.7% |
Alcoa, Inc. | 1,655,140 | | 15,012 |
Barrick Gold Corp. | 457,700 | | 13,252 |
Commercial Metals Co. | 1,350,342 | | 20,093 |
Eldorado Gold Corp. (a) | 557,000 | | 4,425 |
Goldcorp, Inc. | 128,400 | | 3,510 |
Lihir Gold Ltd. (a) | 4,060,167 | | 8,856 |
Newcrest Mining Ltd. | 627,876 | | 13,668 |
Newmont Mining Corp. | 478,186 | | 19,242 |
Randgold Resources Ltd. sponsored ADR | 357,866 | | 17,321 |
| | 115,379 |
Paper & Forest Products - 0.1% |
Weyerhaeuser Co. | 236,700 | | 8,346 |
TOTAL MATERIALS | | 436,752 |
TELECOMMUNICATION SERVICES - 1.1% |
Diversified Telecommunication Services - 0.8% |
Qwest Communications International, Inc. (e) | 12,341,484 | | 48,008 |
Telefonica SA | 105,500 | | 1,998 |
| | 50,006 |
Wireless Telecommunication Services - 0.3% |
Sprint Nextel Corp. (a) | 4,966,800 | | 21,655 |
TOTAL TELECOMMUNICATION SERVICES | | 71,661 |
UTILITIES - 4.5% |
Electric Utilities - 3.2% |
Allegheny Energy, Inc. | 1,635,787 | | 42,400 |
American Electric Power Co., Inc. | 557,449 | | 14,706 |
Edison International | 370,400 | | 10,560 |
Entergy Corp. | 816,960 | | 52,914 |
Exelon Corp. | 901,250 | | 41,575 |
FirstEnergy Corp. | 769,000 | | 31,452 |
PPL Corp. | 676,532 | | 20,235 |
| | 213,842 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Independent Power Producers & Energy Traders - 0.8% |
AES Corp. (a) | 4,044,900 | | $ 28,597 |
Dynegy, Inc. Class A (a) | 2,474,113 | | 4,404 |
NRG Energy, Inc. (a) | 959,466 | | 17,251 |
| | 50,252 |
Multi-Utilities - 0.5% |
Sempra Energy | 797,927 | | 36,721 |
TOTAL UTILITIES | | 300,815 |
TOTAL COMMON STOCKS (Cost $10,922,531) | 6,494,516 |
Preferred Stocks - 1.0% |
| | | |
Convertible Preferred Stocks - 0.9% |
CONSUMER DISCRETIONARY - 0.1% |
Auto Components - 0.1% |
Johnson Controls, Inc. 11.50% | 73,100 | | 7,039 |
FINANCIALS - 0.7% |
Capital Markets - 0.1% |
Legg Mason, Inc. 7.00% | 293,600 | | 6,399 |
Commercial Banks - 0.4% |
Fifth Third Bancorp 8.50% | 122,100 | | 7,040 |
Huntington Bancshares, Inc. 8.50% | 32,900 | | 16,779 |
KeyCorp Series A, 7.75% | 30,500 | | 1,998 |
UCBH Holdings, Inc. Series B, 8.50% | 5,400 | | 1,632 |
| | 27,449 |
Diversified Financial Services - 0.2% |
CIT Group, Inc. Series C, 8.75% | 615,800 | | 9,373 |
TOTAL FINANCIALS | | 43,221 |
HEALTH CARE - 0.1% |
Pharmaceuticals - 0.1% |
Mylan, Inc. 6.50% | 11,100 | | 9,366 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 59,626 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Fiat SpA | 783,751 | | $ 4,494 |
TOTAL PREFERRED STOCKS (Cost $116,020) | 64,120 |
Investment Companies - 0.1% |
| | | |
Ares Capital Corp.
(Cost $26,094) | 1,436,898 | | 8,435 |
Convertible Bonds - 1.5% |
| Principal Amount (000s) | | |
CONSUMER DISCRETIONARY - 1.0% |
Auto Components - 0.3% |
BorgWarner, Inc. 3.5% 4/15/12 | | $ 3,300 | | 3,792 |
Johnson Controls, Inc. 6.5% 9/30/12 | | 7,310 | | 13,152 |
| | 16,944 |
Automobiles - 0.7% |
Ford Motor Co. 4.25% 12/15/36 | | 55,760 | | 43,448 |
Diversified Consumer Services - 0.0% |
Ingersoll-Rand Global Holding Co. Ltd. 4.5% 4/15/12 | | 1,600 | | 2,227 |
Household Durables - 0.0% |
Newell Rubbermaid, Inc. 5.5% 3/15/14 | | 1,810 | | 2,639 |
TOTAL CONSUMER DISCRETIONARY | | 65,258 |
FINANCIALS - 0.2% |
Real Estate Investment Trusts - 0.1% |
Digital Realty Trust LP 5.5% 4/15/29 (g) | | 4,890 | | 4,780 |
Thrifts & Mortgage Finance - 0.1% |
MGIC Investment Corp. 9% 4/1/63 (d)(g) | | 19,609 | | 4,853 |
TOTAL FINANCIALS | | 9,633 |
INDUSTRIALS - 0.1% |
Electrical Equipment - 0.1% |
Sunpower Corp. 4.75% 4/15/14 | | 4,210 | | 4,956 |
Convertible Bonds - continued |
| Principal Amount (000s) | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - 0.0% |
Textron, Inc. 4.5% 5/1/13 | | $ 2,650 | | $ 2,873 |
TOTAL INDUSTRIALS | | 7,829 |
INFORMATION TECHNOLOGY - 0.0% |
Semiconductors & Semiconductor Equipment - 0.0% |
Micron Technology, Inc. 4.25% 10/15/13 | | 2,420 | | 2,819 |
MATERIALS - 0.2% |
Metals & Mining - 0.2% |
Alcoa, Inc. 5.25% 3/15/14 | | 4,020 | | 6,342 |
Newmont Mining Corp. 3% 2/15/12 | | 3,650 | | 4,339 |
United States Steel Corp. 4% 5/15/14 | | 4,890 | | 5,220 |
| | 15,901 |
TOTAL CONVERTIBLE BONDS (Cost $83,941) | 101,440 |
Money Market Funds - 2.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.53% (b) | 37,833,368 | | 37,833 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 155,004,197 | | 155,004 |
TOTAL MONEY MARKET FUNDS (Cost $192,837) | 192,837 |
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $11,341,423) | | 6,861,348 |
NET OTHER ASSETS - (2.1)% | | (140,519) |
NET ASSETS - 100% | $ 6,720,829 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Issuer is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) 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 $9,633,000 or 0.1% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 204 |
Fidelity Securities Lending Cash Central Fund | 3,000 |
Total | $ 3,204 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 12,722 | $ - | $ 2,536 | $ - | $ 6,205 |
Arrow Electronics, Inc. | 104,931 | - | 39,921 | - | - |
Asbury Automotive Group, Inc. | 6,738 | - | 3,088 | - | - |
Briggs & Stratton Corp. | 41,034 | - | 21,883 | 941 | - |
Brunswick Corp. | 19,311 | - | 7,584 | 278 | - |
Con-way, Inc. | 92,865 | - | 7,778 | 514 | 59,859 |
Consolidated Graphics, Inc. | 10,524 | - | - | - | 15,709 |
Dycom Industries, Inc. | 36,380 | - | 9,780 | - | 22,700 |
Ethan Allen Interiors, Inc. | 50,456 | - | - | 987 | 37,934 |
Fairchild Semiconductor International, Inc. | 73,451 | - | 18,296 | - | 52,420 |
Group 1 Automotive, Inc. | 15,576 | - | - | 78 | 33,013 |
Liz Claiborne, Inc. | 50,436 | - | 6,467 | 348 | - |
Macquarie Infrastructure Co. LLC | 25,044 | - | 2,036 | 11 | - |
OfficeMax, Inc. | 36,378 | - | - | - | 33,666 |
Pier 1 Imports, Inc. | 7,356 | - | 1,589 | - | - |
Standard Microsystems Corp. | 24,282 | - | 8,235 | - | - |
Williams-Sonoma, Inc. | 59,923 | - | 26,685 | 1,341 | - |
Winnebago Industries, Inc. | 17,252 | - | 1,920 | - | 22,657 |
Total | $ 684,659 | $ - | $ 157,798 | $ 4,498 | $ 284,163 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 6,861,348 | $ 6,592,330 | $ 269,018 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.9% |
Bermuda | 2.7% |
Canada | 2.1% |
Others (individually less than 1%) | 6.3% |
| 100.0% |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $155,175,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $151,509) - See accompanying schedule: Unaffiliated issuers (cost $10,348,898) | $ 6,384,349 | |
Fidelity Central Funds (cost $192,837) | 192,837 | |
Other affiliated issuers (cost $799,688) | 284,162 | |
Total Investments (cost $11,341,423) | | $ 6,861,348 |
Cash | | 40 |
Receivable for investments sold | | 43,442 |
Receivable for fund shares sold | | 8,274 |
Dividends receivable | | 5,207 |
Interest receivable | | 1,026 |
Distributions receivable from Fidelity Central Funds | | 270 |
Prepaid expenses | | 92 |
Other receivables | | 174 |
Total assets | | 6,919,873 |
| | |
Liabilities | | |
Payable for investments purchased | $ 33,248 | |
Payable for fund shares redeemed | 7,141 | |
Accrued management fee | 1,420 | |
Other affiliated payables | 2,008 | |
Other payables and accrued expenses | 223 | |
Collateral on securities loaned, at value | 155,004 | |
Total liabilities | | 199,044 |
| | |
Net Assets | | $ 6,720,829 |
Net Assets consist of: | | |
Paid in capital | | $ 14,546,018 |
Undistributed net investment income | | 19,957 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,365,047) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (4,480,099) |
Net Assets | | $ 6,720,829 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Value:
Net Asset Value, offering price and redemption price per share ($6,426,148 ÷ 153,628 shares) | | $ 41.83 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($294,681 ÷ 7,033 shares) | | $ 41.90 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $4,498 earned from other affiliated issuers) | | $ 96,336 |
Interest | | 1,385 |
Income from Fidelity Central Funds | | 3,204 |
Total income | | 100,925 |
| | |
Expenses | | |
Management fee
Basic fee | $ 22,598 | |
Performance adjustment | (14,435) | |
Transfer agent fees | 12,250 | |
Accounting and security lending fees | 667 | |
Custodian fees and expenses | 78 | |
Independent trustees' compensation | 33 | |
Depreciation in deferred trustee compensation account | (2) | |
Registration fees | 63 | |
Audit | 49 | |
Legal | 28 | |
Interest | 6 | |
Miscellaneous | 101 | |
Total expenses before reductions | 21,436 | |
Expense reductions | (13) | 21,423 |
Net investment income (loss) | | 79,502 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,302,246) | |
Other affiliated issuers | (35,938) | |
Redemption in-kind with affiliated entities | (1,863,062) | |
Foreign currency transactions | 649 | |
Total net realized gain (loss) | | (3,200,597) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,204,704 | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) | | 2,204,708 |
Net gain (loss) | | (995,889) |
Net increase (decrease) in net assets resulting from operations | | $ (916,387) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 79,502 | $ 197,739 |
Net realized gain (loss) | (3,200,597) | (178,109) |
Change in net unrealized appreciation (depreciation) | 2,204,708 | (10,166,976) |
Net increase (decrease) in net assets resulting from operations | (916,387) | (10,147,346) |
Distributions to shareholders from net investment income | (59,373) | (140,083) |
Distributions to shareholders from net realized gain | - | (1,773,556) |
Total distributions | (59,373) | (1,913,639) |
Share transactions - net increase (decrease) | (3,546,605) | 746,104 |
Total increase (decrease) in net assets | (4,522,365) | (11,314,881) |
| | |
Net Assets | | |
Beginning of period | 11,243,194 | 22,558,075 |
End of period (including undistributed net investment income of $19,957 and undistributed net investment income of $168,944, respectively) | $ 6,720,829 | $ 11,243,194 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Value
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 | $ 68.71 | $ 57.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .37 | .75 | .64 | .61 | .43 | .24 |
Net realized and unrealized gain (loss) | (2.08) | (38.92) | 11.79 | 13.17 | 10.34 | 10.84 |
Total from investment operations | (1.71) | (38.17) | 12.43 | 13.78 | 10.77 | 11.08 |
Distributions from net investment income | (.24) | (.56) | (.56) | (.43) | (.16) | (.23) |
Distributions from net realized gain | - | (7.09) | (6.09) | (5.14) | (3.71) | (.05) |
Total distributions | (.24) | (7.65) | (6.65) | (5.57) | (3.87) | (.28) |
Net asset value, end of period | $ 41.83 | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 | $ 68.71 |
Total Return B, C | (3.84)% | (46.34)% | 15.82% | 19.01% | 16.13% | 19.21% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .55% A | .76% | .70% | .67% | .73% | .95% |
Expenses net of fee waivers, if any | .55% A | .76% | .70% | .67% | .73% | .95% |
Expenses net of all reductions | .55% A | .76% | .69% | .66% | .72% | .93% |
Net investment income (loss) | 2.00% A | 1.10% | .74% | .76% | .58% | .37% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6,426 | $ 11,066 | $ 22,558 | $ 17,153 | $ 13,040 | $ 8,902 |
Portfolio turnover rate F | 42% A | 50% | 44% | 36% | 29% | 40% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 43.82 | $ 72.61 |
Income from Investment Operations | | |
Net investment income (loss) D | .41 | .25 |
Net realized and unrealized gain (loss) | (2.08) | (29.04) |
Total from investment operations | (1.67) | (28.79) |
Distributions from net investment income | (.25) | - |
Net asset value, end of period | $ 41.90 | $ 43.82 |
Total Return B, C | (3.72)% | (39.65)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .29% A | .60% A |
Expenses net of fee waivers, if any | .29% A | .60% A |
Expenses net of all reductions | .29% A | .60% A |
Net investment income (loss) | 2.26% A | 1.17% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 295 | $ 177 |
Portfolio turnover rate F | 42% A | 50% |
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 October 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Value Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Value 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 Value and Class K to eligible shareholders of Value. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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 estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 317,111 |
Unrealized depreciation | (4,820,650) |
Net unrealized appreciation (depreciation) | $ (4,503,539) |
Cost for federal income tax purposes | $ 11,364,887 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $1,742,657 and $5,170,604, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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 .27% 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 retail class of the Fund, Value, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .21% 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 Value. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Value | $ 12,188 | .32 |
Class K | 62 | .06 |
| $ 12,250 | |
* Annualized
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 $87 for the period.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 15,335 | .42% | $ 6 |
Redemption in-kind. During the period, 76,773 shares held by affiliated entities were redeemed in kind for cash and securities with a value of $2,880,935. The realized gain (loss) of $(1,863,062) on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations and is not taxable to the Fund.
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 $28 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
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 $3,000.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,667. The weighted average interest rate was .71%. The interest expense amounted to one hundred and thirty one dollars under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Value's operating expenses. During this period, this reimbursement reduced the class' expenses by $5.
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 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Value | $ 58,273 | $ 140,083 |
Class K | 1,100 | - |
Total | $ 59,373 | $ 140,083 |
From net realized gain | | |
Value | $ - | $ 1,773,556 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2009 | Year ended
October 31, 2008A | Six months ended
April 30, 2009 | Year ended
October 31, 2008A |
Value | | | | |
Shares sold | 14,603 | 55,280 | $ 531,772 | $ 3,772,797 |
Conversion to Class K | (3,014) | (4,127) | (107,618) | (218,559) |
Reinvestment of distributions | 1,539 | 23,834 | 56,603 | 1,855,500 |
Shares redeemed | (112,247) | (73,997) | (4,135,509) | (4,878,232) |
Net increase (decrease) | (99,119) | 990 | $ (3,654,752) | $ 531,506 |
Class K | | | | |
Shares sold | 837 | 77 | $ 30,301 | $ 3,716 |
Conversion from Value | 3,011 | 4,125 | 107,618 | 218,559 |
Reinvestment of distributions | 30 | - | 1,100 | - |
Shares redeemed | (884) | (163) | (30,872) | (7,677) |
Net increase (decrease) | 2,994 | 4,039 | $ 108,147 | $ 214,598 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
13. 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.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual 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
Fidelity 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
The Bank of New York Mellon
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) 1-800-544-5555
Automated line for quickest service
VAL-USAN-0609
1.784919.106
Fidelity®
Value
Fund -
Class K
Semiannual Report
April 30, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although there has been some encouraging news in the capital markets this spring, many economic uncertainties remain - including still-weak corporate earnings and sluggish consumer spending - which could call into question the sustainability and overall strength of the markets' recent forward momentum. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There 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
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008 to April 30, 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.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
November 1, 2008 | Ending
Account Value
April 30, 2009 | Expenses Paid
During Period*
November 1, 2008
to April 30, 2009 |
Value | .55% | | | |
Actual | | $ 1,000.00 | $ 961.60 | $ 2.68 |
Hypothetical A | | $ 1,000.00 | $ 1,022.07 | $ 2.76 |
Class K | .29% | | | |
Actual | | $ 1,000.00 | $ 962.80 | $ 1.41 |
Hypothetical A | | $ 1,000.00 | $ 1,023.36 | $ 1.45 |
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 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Avnet, Inc. | 1.4 | 1.0 |
Arrow Electronics, Inc. | 1.3 | 0.9 |
The Stanley Works | 1.2 | 0.9 |
JPMorgan Chase & Co. | 1.1 | 1.3 |
National Semiconductor Corp. | 1.0 | 1.0 |
The Goodyear Tire & Rubber Co. | 1.0 | 0.5 |
Williams-Sonoma, Inc. | 1.0 | 0.5 |
The Western Union Co. | 1.0 | 0.8 |
Xerox Corp. | 0.9 | 1.1 |
Brinker International, Inc. | 0.9 | 0.4 |
| 10.8 | |
Top Five Market Sectors as of April 30, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 24.7 | 21.1 |
Information Technology | 17.7 | 15.6 |
Financials | 16.9 | 20.0 |
Industrials | 13.4 | 12.5 |
Materials | 6.7 | 3.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2009 * | As of October 31, 2008 ** |
| Stocks and
Investment
Companies 96.8% | | | Stocks and
Investment
Companies 97.8% | |
| Convertible
Securities 2.4% | | | Convertible
Securities 1.1% | |
| Short-Term
Investments and
Net Other Assets 0.8% | | | Short-Term
Investments and
Net Other Assets 1.1% | |
* Foreign investments | 11.1% | | ** Foreign investments | 9.0% | |
Semiannual Report
Investments April 30, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.6% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 23.5% |
Auto Components - 1.4% |
Gentex Corp. | 803,160 | | $ 10,738 |
Johnson Controls, Inc. | 813,677 | | 15,468 |
The Goodyear Tire & Rubber Co. (a) | 6,262,009 | | 68,819 |
| | 95,025 |
Automobiles - 0.8% |
Bayerische Motoren Werke AG (BMW) | 104,781 | | 3,595 |
Fiat SpA | 473,400 | | 4,627 |
Harley-Davidson, Inc. (e) | 162,278 | | 3,596 |
Renault SA | 377,745 | | 12,109 |
Thor Industries, Inc. | 401,767 | | 9,237 |
Winnebago Industries, Inc. (f) | 2,571,751 | | 22,657 |
| | 55,821 |
Diversified Consumer Services - 1.2% |
Brinks Home Security Holdings, Inc. (a) | 35,817 | | 952 |
DeVry, Inc. | 88,400 | | 3,762 |
H&R Block, Inc. | 3,439,100 | | 52,068 |
Regis Corp. | 756,800 | | 14,485 |
Service Corp. International | 1,374,200 | | 6,225 |
| | 77,492 |
Hotels, Restaurants & Leisure - 4.5% |
Brinker International, Inc. | 3,440,500 | | 60,966 |
Burger King Holdings, Inc. | 1,023,410 | | 16,723 |
Carnival Corp. unit | 1,978,100 | | 53,171 |
Penn National Gaming, Inc. (a) | 1,534,158 | | 52,192 |
Royal Caribbean Cruises Ltd. (e) | 3,045,020 | | 44,853 |
Starwood Hotels & Resorts Worldwide, Inc. | 914,036 | | 19,067 |
Vail Resorts, Inc. (a)(e) | 378,100 | | 11,041 |
WMS Industries, Inc. (a) | 966,993 | | 31,050 |
Wyndham Worldwide Corp. | 1,284,604 | | 15,004 |
| | 304,067 |
Household Durables - 6.4% |
Black & Decker Corp. | 1,303,936 | | 52,549 |
Centex Corp. | 3,613,400 | | 39,531 |
Ethan Allen Interiors, Inc. (e)(f) | 2,820,354 | | 37,934 |
Jarden Corp. (a) | 1,512,160 | | 30,394 |
KB Home | 773,900 | | 13,984 |
La-Z-Boy, Inc. | 1,080,700 | | 2,875 |
Leggett & Platt, Inc. | 3,390,850 | | 48,693 |
Newell Rubbermaid, Inc. | 1,940,269 | | 20,276 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Household Durables - continued |
Pulte Homes, Inc. | 2,167,800 | | $ 24,951 |
Sealy Corp., Inc. (a) | 2,422,444 | | 8,575 |
Tempur-Pedic International, Inc. | 1,528,900 | | 19,662 |
The Stanley Works | 2,045,900 | | 77,806 |
Whirlpool Corp. | 1,153,600 | | 52,097 |
| | 429,327 |
Leisure Equipment & Products - 0.6% |
Brunswick Corp. | 3,662,208 | | 21,900 |
Eastman Kodak Co. (e) | 4,555,000 | | 13,893 |
Pool Corp. (e) | 448,698 | | 8,014 |
| | 43,807 |
Media - 2.5% |
Cinemark Holdings, Inc. | 44,382 | | 395 |
Comcast Corp. Class A (special) (non-vtg.) | 891,000 | | 13,080 |
Discovery Communications, Inc. Class C (a) | 1,719,786 | | 30,131 |
Interpublic Group of Companies, Inc. (a) | 215,200 | | 1,347 |
Lamar Advertising Co. Class A (a)(e) | 920,801 | | 15,562 |
Live Nation, Inc. (a) | 1,202,862 | | 4,703 |
Omnicom Group, Inc. | 569,334 | | 17,917 |
Regal Entertainment Group Class A | 1,387,132 | | 18,116 |
Scripps Networks Interactive, Inc. Class A | 893,766 | | 24,525 |
Virgin Media, Inc. | 3,781,458 | | 29,193 |
WPP PLC | 1,569,200 | | 10,732 |
| | 165,701 |
Multiline Retail - 0.6% |
Macy's, Inc. | 1,533,280 | | 20,975 |
Nordstrom, Inc. (e) | 831,013 | | 18,806 |
| | 39,781 |
Specialty Retail - 4.9% |
Advance Auto Parts, Inc. | 613,100 | | 26,823 |
AnnTaylor Stores Corp. (a) | 1,712,740 | | 12,657 |
Asbury Automotive Group, Inc. | 1,540,833 | | 14,900 |
AutoNation, Inc. (a) | 323,900 | | 5,736 |
AutoZone, Inc. (a) | 27,697 | | 4,609 |
Best Buy Co., Inc. | 177,500 | | 6,812 |
Collective Brands, Inc. (a) | 215,200 | | 3,125 |
Gap, Inc. | 670,200 | | 10,415 |
Group 1 Automotive, Inc. (e)(f) | 1,549,900 | | 33,013 |
Limited Brands, Inc. | 1,042,919 | | 11,910 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
OfficeMax, Inc. (f) | 4,518,960 | | $ 33,666 |
PetSmart, Inc. | 1,539,033 | | 35,213 |
Sherwin-Williams Co. | 269,200 | | 15,247 |
Staples, Inc. | 2,280,933 | | 47,033 |
Talbots, Inc. (e) | 923,849 | | 2,180 |
Williams-Sonoma, Inc. (e) | 4,762,449 | | 66,674 |
| | 330,013 |
Textiles, Apparel & Luxury Goods - 0.6% |
Liz Claiborne, Inc. | 4,072,400 | | 19,303 |
VF Corp. | 324,700 | | 19,245 |
| | 38,548 |
TOTAL CONSUMER DISCRETIONARY | | 1,579,582 |
CONSUMER STAPLES - 4.2% |
Beverages - 0.9% |
Anheuser-Busch InBev NV | 763,020 | | 23,352 |
Carlsberg AS: | | | |
Series A | 178,400 | | 8,571 |
Series B | 165,300 | | 7,947 |
Coca-Cola Enterprises, Inc. | 1,208,500 | | 20,617 |
| | 60,487 |
Food & Staples Retailing - 1.5% |
Safeway, Inc. | 413,700 | | 8,171 |
SUPERVALU, Inc. | 1,589,600 | | 25,990 |
Sysco Corp. | 2,346,800 | | 54,751 |
Winn-Dixie Stores, Inc. (a) | 878,456 | | 10,067 |
| | 98,979 |
Food Products - 0.6% |
Cermaq ASA | 854,500 | | 5,150 |
Marine Harvest ASA (a) | 36,992,000 | | 16,666 |
Tyson Foods, Inc. Class A | 1,938,274 | | 20,429 |
| | 42,245 |
Household Products - 0.3% |
Energizer Holdings, Inc. (a) | 383,826 | | 21,993 |
Personal Products - 0.8% |
Avon Products, Inc. | 2,163,600 | | 49,244 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - 0.1% |
Lorillard, Inc. | 118,300 | | $ 7,468 |
TOTAL CONSUMER STAPLES | | 280,416 |
ENERGY - 6.6% |
Energy Equipment & Services - 2.3% |
BJ Services Co. | 1,375,287 | | 19,103 |
ENSCO International, Inc. | 204,900 | | 5,795 |
Nabors Industries Ltd. (a) | 970,440 | | 14,760 |
National Oilwell Varco, Inc. (a) | 953,339 | | 28,867 |
Noble Corp. | 194,613 | | 5,319 |
Patterson-UTI Energy, Inc. | 1,413,700 | | 17,968 |
Pride International, Inc. (a) | 469,500 | | 10,658 |
Smith International, Inc. | 775,200 | | 20,039 |
Weatherford International Ltd. (a) | 1,812,796 | | 30,147 |
| | 152,656 |
Oil, Gas & Consumable Fuels - 4.3% |
Cabot Oil & Gas Corp. | 960,900 | | 29,010 |
Canadian Natural Resources Ltd. | 506,100 | | 23,332 |
Chesapeake Energy Corp. | 570,700 | | 11,248 |
Cimarex Energy Co. | 161,400 | | 4,342 |
EOG Resources, Inc. | 569,900 | | 36,177 |
EXCO Resources, Inc. (a) | 1,545,000 | | 18,200 |
Hess Corp. | 538,700 | | 29,515 |
Marathon Oil Corp. | 150,600 | | 4,473 |
Petrohawk Energy Corp. (a) | 1,219,900 | | 28,790 |
Plains Exploration & Production Co. (a) | 290,100 | | 5,474 |
Range Resources Corp. | 316,800 | | 12,662 |
Southwestern Energy Co. (a) | 643,200 | | 23,065 |
Suncor Energy, Inc. | 1,162,100 | | 29,246 |
Ultra Petroleum Corp. (a) | 874,155 | | 37,414 |
| | 292,948 |
TOTAL ENERGY | | 445,604 |
FINANCIALS - 16.0% |
Capital Markets - 1.5% |
Ameriprise Financial, Inc. | 525,858 | | 13,856 |
Bank of New York Mellon Corp. | 1,798,627 | | 45,829 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
T. Rowe Price Group, Inc. | 303,000 | | $ 11,672 |
TD Ameritrade Holding Corp. (a) | 1,738,750 | | 27,664 |
| | 99,021 |
Commercial Banks - 3.6% |
Associated Banc-Corp. | 1,056,358 | | 16,342 |
Boston Private Financial Holdings, Inc. | 885,626 | | 4,083 |
CapitalSource, Inc. | 2,786,347 | | 8,610 |
Comerica, Inc. | 979,100 | | 20,542 |
KeyCorp | 4,386,468 | | 26,977 |
M&T Bank Corp. (e) | 150,405 | | 7,889 |
PNC Financial Services Group, Inc. | 1,133,804 | | 45,012 |
Susquehanna Bancshares, Inc., Pennsylvania | 291,388 | | 2,349 |
TCF Financial Corp. (e) | 1,228,100 | | 17,083 |
U.S. Bancorp, Delaware | 1,313,900 | | 23,939 |
Wells Fargo & Co. | 2,056,531 | | 41,151 |
Zions Bancorp (e) | 2,308,960 | | 25,237 |
| | 239,214 |
Consumer Finance - 1.3% |
American Express Co. | 1,149,400 | | 28,988 |
Capital One Financial Corp. | 2,336,900 | | 39,120 |
Discover Financial Services | 2,449,203 | | 19,912 |
| | 88,020 |
Diversified Financial Services - 1.6% |
Bank of America Corp. | 3,434,160 | | 30,667 |
Gimv NV | 10,800 | | 539 |
JPMorgan Chase & Co. | 2,283,600 | | 75,359 |
| | 106,565 |
Insurance - 3.0% |
Everest Re Group Ltd. | 241,545 | | 18,029 |
Lincoln National Corp. | 733,600 | | 8,246 |
Loews Corp. | 1,346,154 | | 33,506 |
Marsh & McLennan Companies, Inc. | 2,643,051 | | 55,742 |
MetLife, Inc. | 381,300 | | 11,344 |
PartnerRe Ltd. | 330,800 | | 22,557 |
Transatlantic Holdings, Inc. | 115,500 | | 4,381 |
Unum Group | 1,191,713 | | 19,473 |
Willis Group Holdings Ltd. | 1,038,100 | | 28,558 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
XL Capital Ltd. Class A | 215,200 | | $ 2,047 |
Zenith National Insurance Corp. | 8,000 | | 182 |
| | 204,065 |
Real Estate Investment Trusts - 4.0% |
Alexandria Real Estate Equities, Inc. (e) | 531,800 | | 19,400 |
Camden Property Trust (SBI) | 648,047 | | 17,582 |
Digital Realty Trust, Inc. (e) | 597,092 | | 21,501 |
Duke Realty LP | 894,500 | | 8,739 |
HCP, Inc. | 1,581,400 | | 34,712 |
Highwoods Properties, Inc. (SBI) | 1,035,100 | | 24,832 |
Host Hotels & Resorts, Inc. | 1,405,000 | | 10,804 |
Kimco Realty Corp. | 230,140 | | 2,766 |
ProLogis Trust | 3,610,883 | | 32,895 |
SL Green Realty Corp. | 342,400 | | 6,047 |
Tanger Factory Outlet Centers, Inc. | 397,090 | | 13,231 |
The Macerich Co. (e) | 1,403,000 | | 24,595 |
Vornado Realty Trust | 970,252 | | 47,436 |
Weingarten Realty Investors (SBI) (e) | 391,200 | | 6,079 |
| | 270,619 |
Real Estate Management & Development - 0.6% |
Brookfield Properties Corp. | 1,648,400 | | 12,314 |
CB Richard Ellis Group, Inc. Class A (a) | 3,984,923 | | 29,887 |
| | 42,201 |
Thrifts & Mortgage Finance - 0.4% |
New York Community Bancorp, Inc. (e) | 2,596,700 | | 29,369 |
TOTAL FINANCIALS | | 1,079,074 |
HEALTH CARE - 3.2% |
Health Care Equipment & Supplies - 0.2% |
Cooper Companies, Inc. | 343,448 | | 9,874 |
Orthofix International NV (a) | 156,308 | | 2,665 |
| | 12,539 |
Health Care Providers & Services - 2.1% |
Brookdale Senior Living, Inc. | 1,615,648 | | 16,657 |
Community Health Systems, Inc. (a) | 394,825 | | 9,018 |
Emeritus Corp. (a) | 683,926 | | 6,183 |
HealthSouth Corp. (a)(e) | 1,140,611 | | 10,688 |
Henry Schein, Inc. (a) | 680,056 | | 27,909 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
McKesson Corp. | 500,100 | | $ 18,504 |
Universal Health Services, Inc. Class B | 698,168 | | 35,188 |
VCA Antech, Inc. (a) | 632,700 | | 15,830 |
| | 139,977 |
Health Care Technology - 0.4% |
IMS Health, Inc. | 2,335,531 | | 29,334 |
Pharmaceuticals - 0.5% |
Cadence Pharmaceuticals, Inc. (a) | 430,359 | | 4,355 |
King Pharmaceuticals, Inc. (a) | 2,044,300 | | 16,109 |
Sepracor, Inc. (a) | 467,900 | | 6,649 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 125,822 | | 5,522 |
| | 32,635 |
TOTAL HEALTH CARE | | 214,485 |
INDUSTRIALS - 13.3% |
Aerospace & Defense - 0.6% |
Heico Corp. Class A | 719,872 | | 17,961 |
Honeywell International, Inc. | 700,200 | | 21,853 |
| | 39,814 |
Air Freight & Logistics - 0.8% |
United Parcel Service, Inc. Class B | 1,006,800 | | 52,696 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 1,833,600 | | 11,313 |
Building Products - 1.4% |
Masco Corp. | 5,462,100 | | 48,394 |
Owens Corning (a) | 2,442,985 | | 43,729 |
| | 92,123 |
Commercial Services & Supplies - 1.9% |
ACCO Brands Corp. (a)(f) | 2,968,856 | | 6,205 |
Cintas Corp. | 518,400 | | 13,302 |
Clean Harbors, Inc. (a) | 160,758 | | 8,054 |
Consolidated Graphics, Inc. (a)(f) | 808,914 | | 15,709 |
R.R. Donnelley & Sons Co. | 2,958,234 | | 34,463 |
Republic Services, Inc. | 2,521,007 | | 52,941 |
| | 130,674 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 0.4% |
Dycom Industries, Inc. (a)(f) | 2,696,000 | | $ 22,700 |
URS Corp. (a) | 184,307 | | 8,121 |
| | 30,821 |
Electrical Equipment - 0.7% |
Acuity Brands, Inc. | 301,200 | | 8,656 |
Cooper Industries Ltd. Class A | 590,699 | | 19,369 |
Regal-Beloit Corp. | 204,953 | | 8,327 |
Sunpower Corp. Class B (a) | 510,000 | | 12,934 |
| | 49,286 |
Machinery - 3.7% |
Albany International Corp. Class A | 1,246,085 | | 11,564 |
Briggs & Stratton Corp. (e) | 1,250,305 | | 18,605 |
Crane Co. | 40,100 | | 926 |
Cummins, Inc. | 968,485 | | 32,928 |
Deere & Co. | 530,300 | | 21,880 |
Eaton Corp. | 512,450 | | 22,445 |
Harsco Corp. | 64,200 | | 1,769 |
Illinois Tool Works, Inc. | 1,546,100 | | 50,712 |
Ingersoll-Rand Co. Ltd. Class A | 712,400 | | 15,509 |
Navistar International Corp. (a) | 796,600 | | 30,111 |
Oshkosh Co. | 160,550 | | 1,541 |
Pentair, Inc. | 1,461,900 | | 38,945 |
| | 246,935 |
Marine - 0.0% |
Alexander & Baldwin, Inc. | 114,100 | | 3,040 |
Professional Services - 1.4% |
Experian PLC | 1,510,228 | | 9,941 |
IHS, Inc. Class A (a) | 639,400 | | 26,446 |
Manpower, Inc. | 744,872 | | 32,097 |
Monster Worldwide, Inc. (a) | 1,706,419 | | 23,549 |
| | 92,033 |
Road & Rail - 1.7% |
Canadian National Railway Co. | 600,200 | | 24,265 |
Con-way, Inc. (f) | 2,415,600 | | 59,859 |
Ryder System, Inc. | 1,126,188 | | 31,184 |
| | 115,308 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Trading Companies & Distributors - 0.4% |
W.W. Grainger, Inc. | 253,400 | | $ 21,255 |
WESCO International, Inc. (a) | 278,800 | | 7,249 |
| | 28,504 |
Transportation Infrastructure - 0.1% |
Macquarie Infrastructure Co. LLC | 1,623,694 | | 4,027 |
TOTAL INDUSTRIALS | | 896,574 |
INFORMATION TECHNOLOGY - 17.7% |
Communications Equipment - 0.8% |
Corning, Inc. | 1,816,800 | | 26,562 |
Motorola, Inc. | 5,345,200 | | 29,559 |
| | 56,121 |
Computers & Peripherals - 1.4% |
Gemalto NV (a) | 295,400 | | 9,299 |
NCR Corp. (a) | 2,955,920 | | 30,003 |
NetApp, Inc. (a) | 2,380,615 | | 43,565 |
Seagate Technology | 914,100 | | 7,459 |
| | 90,326 |
Electronic Equipment & Components - 5.2% |
Agilent Technologies, Inc. (a) | 3,257,251 | | 59,477 |
Arrow Electronics, Inc. (a) | 3,857,860 | | 87,728 |
Avnet, Inc. (a) | 4,250,404 | | 93,035 |
Flextronics International Ltd. (a) | 10,787,600 | | 41,856 |
Itron, Inc. (a) | 341,897 | | 15,727 |
Tyco Electronics Ltd. | 2,899,167 | | 50,561 |
| | 348,384 |
Internet Software & Services - 1.1% |
eBay, Inc. (a) | 321,141 | | 5,289 |
VeriSign, Inc. (a) | 1,709,361 | | 35,179 |
Yahoo!, Inc. (a) | 2,258,400 | | 32,273 |
| | 72,741 |
IT Services - 2.2% |
Accenture Ltd. Class A | 843,100 | | 24,812 |
Lender Processing Services, Inc. | 1,168,555 | | 33,491 |
The Western Union Co. | 3,876,000 | | 64,923 |
Visa, Inc. | 261,600 | | 16,994 |
Wright Express Corp. (a) | 241,099 | | 5,516 |
| | 145,736 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Office Electronics - 0.9% |
Xerox Corp. | 10,037,110 | | $ 61,327 |
Semiconductors & Semiconductor Equipment - 5.1% |
Applied Materials, Inc. | 4,255,000 | | 51,954 |
ASML Holding NV (NY Shares) | 2,475,766 | | 52,362 |
Fairchild Semiconductor International, Inc. (a)(f) | 8,509,669 | | 52,420 |
International Rectifier Corp. (a) | 98,200 | | 1,658 |
KLA-Tencor Corp. | 322,800 | | 8,954 |
Lam Research Corp. (a) | 241,700 | | 6,739 |
Maxim Integrated Products, Inc. | 1,853,700 | | 25,118 |
Micron Technology, Inc. (a) | 4,219,183 | | 20,590 |
MKS Instruments, Inc. (a) | 1,117,970 | | 17,496 |
National Semiconductor Corp. | 5,565,200 | | 68,842 |
Standard Microsystems Corp. (a) | 887,232 | | 14,071 |
Varian Semiconductor Equipment Associates, Inc. (a) | 960,630 | | 24,583 |
| | 344,787 |
Software - 1.0% |
BMC Software, Inc. (a) | 107,600 | | 3,730 |
CA, Inc. | 1,476,579 | | 25,471 |
Electronic Arts, Inc. (a) | 1,632,506 | | 33,221 |
Misys PLC | 3,778,318 | | 7,709 |
| | 70,131 |
TOTAL INFORMATION TECHNOLOGY | | 1,189,553 |
MATERIALS - 6.5% |
Chemicals - 2.8% |
Albemarle Corp. | 1,723,751 | | 46,231 |
Arkema sponsored ADR | 608,007 | | 14,075 |
Ashland, Inc. | 506,000 | | 11,112 |
Celanese Corp. Class A | 746,500 | | 15,557 |
Cytec Industries, Inc. | 410,800 | | 8,158 |
FMC Corp. | 453,152 | | 22,082 |
H.B. Fuller Co. | 1,289,172 | | 22,767 |
Lubrizol Corp. | 644,000 | | 27,834 |
Solutia, Inc. (a) | 1,519,669 | | 5,714 |
W.R. Grace & Co. (a) | 1,305,345 | | 11,526 |
| | 185,056 |
Construction Materials - 0.2% |
Vulcan Materials Co. (e) | 287,380 | | 13,665 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Containers & Packaging - 1.7% |
Ball Corp. | 992,090 | | $ 37,422 |
Owens-Illinois, Inc. (a) | 2,140,054 | | 52,196 |
Rock-Tenn Co. Class A | 653,811 | | 24,688 |
| | 114,306 |
Metals & Mining - 1.7% |
Alcoa, Inc. | 1,655,140 | | 15,012 |
Barrick Gold Corp. | 457,700 | | 13,252 |
Commercial Metals Co. | 1,350,342 | | 20,093 |
Eldorado Gold Corp. (a) | 557,000 | | 4,425 |
Goldcorp, Inc. | 128,400 | | 3,510 |
Lihir Gold Ltd. (a) | 4,060,167 | | 8,856 |
Newcrest Mining Ltd. | 627,876 | | 13,668 |
Newmont Mining Corp. | 478,186 | | 19,242 |
Randgold Resources Ltd. sponsored ADR | 357,866 | | 17,321 |
| | 115,379 |
Paper & Forest Products - 0.1% |
Weyerhaeuser Co. | 236,700 | | 8,346 |
TOTAL MATERIALS | | 436,752 |
TELECOMMUNICATION SERVICES - 1.1% |
Diversified Telecommunication Services - 0.8% |
Qwest Communications International, Inc. (e) | 12,341,484 | | 48,008 |
Telefonica SA | 105,500 | | 1,998 |
| | 50,006 |
Wireless Telecommunication Services - 0.3% |
Sprint Nextel Corp. (a) | 4,966,800 | | 21,655 |
TOTAL TELECOMMUNICATION SERVICES | | 71,661 |
UTILITIES - 4.5% |
Electric Utilities - 3.2% |
Allegheny Energy, Inc. | 1,635,787 | | 42,400 |
American Electric Power Co., Inc. | 557,449 | | 14,706 |
Edison International | 370,400 | | 10,560 |
Entergy Corp. | 816,960 | | 52,914 |
Exelon Corp. | 901,250 | | 41,575 |
FirstEnergy Corp. | 769,000 | | 31,452 |
PPL Corp. | 676,532 | | 20,235 |
| | 213,842 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Independent Power Producers & Energy Traders - 0.8% |
AES Corp. (a) | 4,044,900 | | $ 28,597 |
Dynegy, Inc. Class A (a) | 2,474,113 | | 4,404 |
NRG Energy, Inc. (a) | 959,466 | | 17,251 |
| | 50,252 |
Multi-Utilities - 0.5% |
Sempra Energy | 797,927 | | 36,721 |
TOTAL UTILITIES | | 300,815 |
TOTAL COMMON STOCKS (Cost $10,922,531) | 6,494,516 |
Preferred Stocks - 1.0% |
| | | |
Convertible Preferred Stocks - 0.9% |
CONSUMER DISCRETIONARY - 0.1% |
Auto Components - 0.1% |
Johnson Controls, Inc. 11.50% | 73,100 | | 7,039 |
FINANCIALS - 0.7% |
Capital Markets - 0.1% |
Legg Mason, Inc. 7.00% | 293,600 | | 6,399 |
Commercial Banks - 0.4% |
Fifth Third Bancorp 8.50% | 122,100 | | 7,040 |
Huntington Bancshares, Inc. 8.50% | 32,900 | | 16,779 |
KeyCorp Series A, 7.75% | 30,500 | | 1,998 |
UCBH Holdings, Inc. Series B, 8.50% | 5,400 | | 1,632 |
| | 27,449 |
Diversified Financial Services - 0.2% |
CIT Group, Inc. Series C, 8.75% | 615,800 | | 9,373 |
TOTAL FINANCIALS | | 43,221 |
HEALTH CARE - 0.1% |
Pharmaceuticals - 0.1% |
Mylan, Inc. 6.50% | 11,100 | | 9,366 |
TOTAL CONVERTIBLE PREFERRED STOCKS | | 59,626 |
Preferred Stocks - continued |
| Shares | | Value (000s) |
Nonconvertible Preferred Stocks - 0.1% |
CONSUMER DISCRETIONARY - 0.1% |
Automobiles - 0.1% |
Fiat SpA | 783,751 | | $ 4,494 |
TOTAL PREFERRED STOCKS (Cost $116,020) | 64,120 |
Investment Companies - 0.1% |
| | | |
Ares Capital Corp.
(Cost $26,094) | 1,436,898 | | 8,435 |
Convertible Bonds - 1.5% |
| Principal Amount (000s) | | |
CONSUMER DISCRETIONARY - 1.0% |
Auto Components - 0.3% |
BorgWarner, Inc. 3.5% 4/15/12 | | $ 3,300 | | 3,792 |
Johnson Controls, Inc. 6.5% 9/30/12 | | 7,310 | | 13,152 |
| | 16,944 |
Automobiles - 0.7% |
Ford Motor Co. 4.25% 12/15/36 | | 55,760 | | 43,448 |
Diversified Consumer Services - 0.0% |
Ingersoll-Rand Global Holding Co. Ltd. 4.5% 4/15/12 | | 1,600 | | 2,227 |
Household Durables - 0.0% |
Newell Rubbermaid, Inc. 5.5% 3/15/14 | | 1,810 | | 2,639 |
TOTAL CONSUMER DISCRETIONARY | | 65,258 |
FINANCIALS - 0.2% |
Real Estate Investment Trusts - 0.1% |
Digital Realty Trust LP 5.5% 4/15/29 (g) | | 4,890 | | 4,780 |
Thrifts & Mortgage Finance - 0.1% |
MGIC Investment Corp. 9% 4/1/63 (d)(g) | | 19,609 | | 4,853 |
TOTAL FINANCIALS | | 9,633 |
INDUSTRIALS - 0.1% |
Electrical Equipment - 0.1% |
Sunpower Corp. 4.75% 4/15/14 | | 4,210 | | 4,956 |
Convertible Bonds - continued |
| Principal Amount (000s) | | Value (000s) |
INDUSTRIALS - continued |
Industrial Conglomerates - 0.0% |
Textron, Inc. 4.5% 5/1/13 | | $ 2,650 | | $ 2,873 |
TOTAL INDUSTRIALS | | 7,829 |
INFORMATION TECHNOLOGY - 0.0% |
Semiconductors & Semiconductor Equipment - 0.0% |
Micron Technology, Inc. 4.25% 10/15/13 | | 2,420 | | 2,819 |
MATERIALS - 0.2% |
Metals & Mining - 0.2% |
Alcoa, Inc. 5.25% 3/15/14 | | 4,020 | | 6,342 |
Newmont Mining Corp. 3% 2/15/12 | | 3,650 | | 4,339 |
United States Steel Corp. 4% 5/15/14 | | 4,890 | | 5,220 |
| | 15,901 |
TOTAL CONVERTIBLE BONDS (Cost $83,941) | 101,440 |
Money Market Funds - 2.9% |
| Shares | | |
Fidelity Cash Central Fund, 0.53% (b) | 37,833,368 | | 37,833 |
Fidelity Securities Lending Cash Central Fund, 0.28% (b)(c) | 155,004,197 | | 155,004 |
TOTAL MONEY MARKET FUNDS (Cost $192,837) | 192,837 |
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $11,341,423) | | 6,861,348 |
NET OTHER ASSETS - (2.1)% | | (140,519) |
NET ASSETS - 100% | $ 6,720,829 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Non-income producing - Issuer is in default. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) 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 $9,633,000 or 0.1% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 204 |
Fidelity Securities Lending Cash Central Fund | 3,000 |
Total | $ 3,204 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
ACCO Brands Corp. | $ 12,722 | $ - | $ 2,536 | $ - | $ 6,205 |
Arrow Electronics, Inc. | 104,931 | - | 39,921 | - | - |
Asbury Automotive Group, Inc. | 6,738 | - | 3,088 | - | - |
Briggs & Stratton Corp. | 41,034 | - | 21,883 | 941 | - |
Brunswick Corp. | 19,311 | - | 7,584 | 278 | - |
Con-way, Inc. | 92,865 | - | 7,778 | 514 | 59,859 |
Consolidated Graphics, Inc. | 10,524 | - | - | - | 15,709 |
Dycom Industries, Inc. | 36,380 | - | 9,780 | - | 22,700 |
Ethan Allen Interiors, Inc. | 50,456 | - | - | 987 | 37,934 |
Fairchild Semiconductor International, Inc. | 73,451 | - | 18,296 | - | 52,420 |
Group 1 Automotive, Inc. | 15,576 | - | - | 78 | 33,013 |
Liz Claiborne, Inc. | 50,436 | - | 6,467 | 348 | - |
Macquarie Infrastructure Co. LLC | 25,044 | - | 2,036 | 11 | - |
OfficeMax, Inc. | 36,378 | - | - | - | 33,666 |
Pier 1 Imports, Inc. | 7,356 | - | 1,589 | - | - |
Standard Microsystems Corp. | 24,282 | - | 8,235 | - | - |
Williams-Sonoma, Inc. | 59,923 | - | 26,685 | 1,341 | - |
Winnebago Industries, Inc. | 17,252 | - | 1,920 | - | 22,657 |
Total | $ 684,659 | $ - | $ 157,798 | $ 4,498 | $ 284,163 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 6,861,348 | $ 6,592,330 | $ 269,018 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 88.9% |
Bermuda | 2.7% |
Canada | 2.1% |
Others (individually less than 1%) | 6.3% |
| 100.0% |
Income Tax Information |
At October 31, 2008, the fund had a capital loss carryforward of approximately $155,175,000 all of which will expire on October 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $151,509) - See accompanying schedule: Unaffiliated issuers (cost $10,348,898) | $ 6,384,349 | |
Fidelity Central Funds (cost $192,837) | 192,837 | |
Other affiliated issuers (cost $799,688) | 284,162 | |
Total Investments (cost $11,341,423) | | $ 6,861,348 |
Cash | | 40 |
Receivable for investments sold | | 43,442 |
Receivable for fund shares sold | | 8,274 |
Dividends receivable | | 5,207 |
Interest receivable | | 1,026 |
Distributions receivable from Fidelity Central Funds | | 270 |
Prepaid expenses | | 92 |
Other receivables | | 174 |
Total assets | | 6,919,873 |
| | |
Liabilities | | |
Payable for investments purchased | $ 33,248 | |
Payable for fund shares redeemed | 7,141 | |
Accrued management fee | 1,420 | |
Other affiliated payables | 2,008 | |
Other payables and accrued expenses | 223 | |
Collateral on securities loaned, at value | 155,004 | |
Total liabilities | | 199,044 |
| | |
Net Assets | | $ 6,720,829 |
Net Assets consist of: | | |
Paid in capital | | $ 14,546,018 |
Undistributed net investment income | | 19,957 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,365,047) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (4,480,099) |
Net Assets | | $ 6,720,829 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2009 (Unaudited) |
| | |
Value:
Net Asset Value, offering price and redemption price per share ($6,426,148 ÷ 153,628 shares) | | $ 41.83 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($294,681 ÷ 7,033 shares) | | $ 41.90 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $4,498 earned from other affiliated issuers) | | $ 96,336 |
Interest | | 1,385 |
Income from Fidelity Central Funds | | 3,204 |
Total income | | 100,925 |
| | |
Expenses | | |
Management fee
Basic fee | $ 22,598 | |
Performance adjustment | (14,435) | |
Transfer agent fees | 12,250 | |
Accounting and security lending fees | 667 | |
Custodian fees and expenses | 78 | |
Independent trustees' compensation | 33 | |
Depreciation in deferred trustee compensation account | (2) | |
Registration fees | 63 | |
Audit | 49 | |
Legal | 28 | |
Interest | 6 | |
Miscellaneous | 101 | |
Total expenses before reductions | 21,436 | |
Expense reductions | (13) | 21,423 |
Net investment income (loss) | | 79,502 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,302,246) | |
Other affiliated issuers | (35,938) | |
Redemption in-kind with affiliated entities | (1,863,062) | |
Foreign currency transactions | 649 | |
Total net realized gain (loss) | | (3,200,597) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,204,704 | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) | | 2,204,708 |
Net gain (loss) | | (995,889) |
Net increase (decrease) in net assets resulting from operations | | $ (916,387) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended April 30, 2009 (Unaudited) | Year ended
October 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 79,502 | $ 197,739 |
Net realized gain (loss) | (3,200,597) | (178,109) |
Change in net unrealized appreciation (depreciation) | 2,204,708 | (10,166,976) |
Net increase (decrease) in net assets resulting from operations | (916,387) | (10,147,346) |
Distributions to shareholders from net investment income | (59,373) | (140,083) |
Distributions to shareholders from net realized gain | - | (1,773,556) |
Total distributions | (59,373) | (1,913,639) |
Share transactions - net increase (decrease) | (3,546,605) | 746,104 |
Total increase (decrease) in net assets | (4,522,365) | (11,314,881) |
| | |
Net Assets | | |
Beginning of period | 11,243,194 | 22,558,075 |
End of period (including undistributed net investment income of $19,957 and undistributed net investment income of $168,944, respectively) | $ 6,720,829 | $ 11,243,194 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Value
| Six months ended
April 30, 2009 | Years ended October 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 | $ 68.71 | $ 57.91 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .37 | .75 | .64 | .61 | .43 | .24 |
Net realized and unrealized gain (loss) | (2.08) | (38.92) | 11.79 | 13.17 | 10.34 | 10.84 |
Total from investment operations | (1.71) | (38.17) | 12.43 | 13.78 | 10.77 | 11.08 |
Distributions from net investment income | (.24) | (.56) | (.56) | (.43) | (.16) | (.23) |
Distributions from net realized gain | - | (7.09) | (6.09) | (5.14) | (3.71) | (.05) |
Total distributions | (.24) | (7.65) | (6.65) | (5.57) | (3.87) | (.28) |
Net asset value, end of period | $ 41.83 | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 | $ 68.71 |
Total Return B, C | (3.84)% | (46.34)% | 15.82% | 19.01% | 16.13% | 19.21% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .55% A | .76% | .70% | .67% | .73% | .95% |
Expenses net of fee waivers, if any | .55% A | .76% | .70% | .67% | .73% | .95% |
Expenses net of all reductions | .55% A | .76% | .69% | .66% | .72% | .93% |
Net investment income (loss) | 2.00% A | 1.10% | .74% | .76% | .58% | .37% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 6,426 | $ 11,066 | $ 22,558 | $ 17,153 | $ 13,040 | $ 8,902 |
Portfolio turnover rate F | 42% A | 50% | 44% | 36% | 29% | 40% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2009 | Year ended October 31, |
| (Unaudited) | 2008 G |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 43.82 | $ 72.61 |
Income from Investment Operations | | |
Net investment income (loss) D | .41 | .25 |
Net realized and unrealized gain (loss) | (2.08) | (29.04) |
Total from investment operations | (1.67) | (28.79) |
Distributions from net investment income | (.25) | - |
Net asset value, end of period | $ 41.90 | $ 43.82 |
Total Return B, C | (3.72)% | (39.65)% |
Ratios to Average Net Assets E, H | | |
Expenses before reductions | .29% A | .60% A |
Expenses net of fee waivers, if any | .29% A | .60% A |
Expenses net of all reductions | .29% A | .60% A |
Net investment income (loss) | 2.26% A | 1.17% A |
Supplemental Data | | |
Net assets, end of period (in millions) | $ 295 | $ 177 |
Portfolio turnover rate F | 42% A | 50% |
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 October 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2009 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity Value Fund (the Fund) is a fund of Fidelity Capital Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Value 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 Value and Class K to eligible shareholders of Value. 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 SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's 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. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - 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.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of April 30, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
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 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 estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
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. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on 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.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 317,111 |
Unrealized depreciation | (4,820,650) |
Net unrealized appreciation (depreciation) | $ (4,503,539) |
Cost for federal income tax purposes | $ 11,364,887 |
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $1,742,657 and $5,170,604, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
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 .27% 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 retail class of the Fund, Value, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .21% 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 Value. 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 class were as follows:
| Amount | % of
Average
Net Assets* |
Value | $ 12,188 | .32 |
Class K | 62 | .06 |
| $ 12,250 | |
* Annualized
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 $87 for the period.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 15,335 | .42% | $ 6 |
Redemption in-kind. During the period, 76,773 shares held by affiliated entities were redeemed in kind for cash and securities with a value of $2,880,935. The realized gain (loss) of $(1,863,062) on securities delivered through the in-kind redemption is included in the accompanying Statement of Operations and is not taxable to the Fund.
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 $28 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Security Lending - continued
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 $3,000.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,667. The weighted average interest rate was .71%. The interest expense amounted to one hundred and thirty one dollars under the bank borrowing program. At period end, there were no bank borrowings outstanding.
10. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Value's operating expenses. During this period, this reimbursement reduced the class' expenses by $5.
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 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $5.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2009 | Year ended
October 31,
2008 |
From net investment income | | |
Value | $ 58,273 | $ 140,083 |
Class K | 1,100 | - |
Total | $ 59,373 | $ 140,083 |
From net realized gain | | |
Value | $ - | $ 1,773,556 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2009 | Year ended
October 31, 2008A | Six months ended
April 30, 2009 | Year ended
October 31, 2008A |
Value | | | | |
Shares sold | 14,603 | 55,280 | $ 531,772 | $ 3,772,797 |
Conversion to Class K | (3,014) | (4,127) | (107,618) | (218,559) |
Reinvestment of distributions | 1,539 | 23,834 | 56,603 | 1,855,500 |
Shares redeemed | (112,247) | (73,997) | (4,135,509) | (4,878,232) |
Net increase (decrease) | (99,119) | 990 | $ (3,654,752) | $ 531,506 |
Class K | | | | |
Shares sold | 837 | 77 | $ 30,301 | $ 3,716 |
Conversion from Value | 3,011 | 4,125 | 107,618 | 218,559 |
Reinvestment of distributions | 30 | - | 1,100 | - |
Shares redeemed | (884) | (163) | (30,872) | (7,677) |
Net increase (decrease) | 2,994 | 4,039 | $ 108,147 | $ 214,598 |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to October 31, 2008.
13. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity 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
The Bank of New York Mellon
New York, NY
VAL-K-USAN-0609
1.863250.100
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Capital 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 Fidelity Capital Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Capital Trust
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | June 19, 2009 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | June 19, 2009 |
By: | /s/ Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | June 19, 2009 |
