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: | September 30 |
| |
Date of reporting period: | March 31, 2012 |
Item 1. Reports to Stockholders
Fidelity®
Stock Selector All Cap Fund
Semiannual Report
March 31, 2012
(Fidelity Cover Art)
Contents
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/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
The Fund invests in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Fund, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Fund presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Fund also indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Fund's annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.
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 (October 1, 2011 to March 31, 2012).
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.
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.
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
October 1, 2011 | Ending
Account Value
March 31, 2012 | Expenses Paid
During Period*
October 1, 2011
to March 31, 2012 |
Stock Selector All Cap | .76% | | | |
Actual | | $ 1,000.00 | $ 1,260.30 | $ 4.29 |
HypotheticalA | | $ 1,000.00 | $ 1,021.20 | $ 3.84 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 1,261.00 | $ 3.56 |
HypotheticalA | | $ 1,000.00 | $ 1,021.85 | $ 3.18 |
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 183/366 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying Fidelity Central Funds as of their most recent fiscal half year ranged from less than .01% to .01%.
Semiannual Report
Investment Changes (Unaudited)
The information in the following tables is based on the Fund's pro-rata share of investments of Fidelity's Equity Central Funds. |
Top Ten Stocks as of March 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 3.5 | 2.2 |
Procter & Gamble Co. | 1.8 | 2.0 |
Chevron Corp. | 1.7 | 1.5 |
British American Tobacco PLC sponsored ADR | 1.4 | 1.1 |
The Coca-Cola Co. | 1.3 | 1.4 |
Microsoft Corp. | 1.2 | 0.5 |
General Electric Co. | 1.1 | 1.4 |
CVS Caremark Corp. | 0.9 | 0.8 |
Citigroup, Inc. | 0.8 | 0.8 |
Amgen, Inc. | 0.8 | 0.8 |
| 14.5 | |
Top Five Market Sectors as of March 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 19.3 | 16.9 |
Financials | 13.7 | 14.2 |
Health Care | 11.4 | 11.3 |
Energy | 11.3 | 11.3 |
Industrials | 10.6 | 10.0 |
At period end, investments in foreign securities, including the Fund's pro-rata share of the underlying Central Funds, was 16.6% of net assets. |
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in the underlying non-money market Fidelity Central Funds, is available at fidelity.com. |
Semiannual Report
Investments March 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Equity Central Funds - 100.1% |
| Shares | | Value (000s) |
Fidelity Consumer Discretionary Central Fund (b) | 1,649,328 | | $ 244,464 |
Fidelity Consumer Staples Central Fund (b) | 1,743,129 | | 267,222 |
Fidelity Energy Central Fund (b) | 2,262,723 | | 281,053 |
Fidelity Financials Central Fund (b) | 6,859,384 | | 408,888 |
Fidelity Health Care Central Fund (b) | 1,949,314 | | 292,046 |
Fidelity Industrials Central Fund (b) | 1,721,480 | | 266,106 |
Fidelity Information Technology Central Fund (b) | 2,530,921 | | 487,987 |
Fidelity Materials Central Fund (b) | 487,459 | | 85,364 |
Fidelity Telecom Services Central Fund (b) | 553,313 | | 69,136 |
Fidelity Utilities Central Fund (b) | 827,391 | | 90,922 |
TOTAL EQUITY CENTRAL FUNDS (Cost $2,187,915) |
2,493,188
|
Money Market Central Funds - 0.0% |
| | | |
Fidelity Cash Central Fund, 0.14% (a)
(Cost $83) | 83,497 | |
83
|
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $2,187,998) | 2,493,271 |
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (1,380) |
NET ASSETS - 100% | $ 2,491,891 |
Legend |
(a) 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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request. |
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 | $ -* |
Fidelity Consumer Discretionary Central Fund | 1,494 |
Fidelity Consumer Staples Central Fund | 3,094 |
Fidelity Energy Central Fund | 1,733 |
Fidelity Financials Central Fund | 1,270 |
Fidelity Health Care Central Fund | 1,037 |
Fidelity Industrials Central Fund | 1,642 |
Fidelity Information Technology Central Fund | 781 |
Fidelity Materials Central Fund | 536 |
Fidelity Telecom Services Central Fund | 806 |
Fidelity Utilities Central Fund | 1,143 |
Total | $ 13,536 |
*Amount represents less than one thousand dollars. | | |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Value,
end of
period | % ownership, end of
period |
Fidelity Consumer Discretionary Central Fund | $ 119,523 | $ 94,452 | $ 18,558 | $ 244,464 | 27.2% |
Fidelity Consumer Staples Central Fund | 152,354 | 115,231 | 33,737 | 267,222 | 31.4% |
Fidelity Energy Central Fund | 151,688 | 122,426 | 37,841 | 281,053 | 30.2% |
Fidelity Financials Central Fund | 196,425 | 151,106 | 31,894 | 408,888 | 27.9% |
Fidelity Health Care Central Fund | 156,759 | 113,339 | 23,210 | 292,046 | 29.0% |
Fidelity Industrials Central Fund | 129,408 | 99,327 | 16,450 | 266,106 | 28.3% |
Fidelity Information Technology Central Fund | 243,800 | 209,962 | 72,504 | 487,987 | 29.1% |
Fidelity Materials Central Fund | 40,801 | 33,874 | 5,316 | 85,364 | 26.7% |
Fidelity Telecom Services Central Fund | 40,139 | 29,499 | 7,329 | 69,136 | 30.7% |
Fidelity Utilities Central Fund | 51,163 | 37,996 | 2,002 | 90,922 | 29.0% |
Total | $ 1,282,060 | $ 1,007,212 | $ 248,841 | $ 2,493,188 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the pro-rata share of the investments of Fidelity's Equity Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 83.4% |
United Kingdom | 3.6% |
Switzerland | 1.8% |
Brazil | 1.3% |
Netherlands | 1.2% |
France | 1.2% |
Canada | 1.1% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 5.3% |
| 100.0% |
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) | March 31, 2012 (Unaudited) |
| | |
Assets | | |
Investments in Fidelity Central Funds (cost $2,187,998) | | $ 2,493,271 |
Cash | | 34 |
Receivable for investments sold | | 371 |
Receivable for fund shares sold | | 196 |
Dividends receivable | | 23 |
Prepaid expenses | | 3 |
Other receivables | | 96 |
Total assets | | 2,493,994 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 567 | |
Accrued management fee | 1,042 | |
Transfer agent fee payable | 329 | |
Other affiliated payables | 62 | |
Other payables and accrued expenses | 103 | |
Total liabilities | | 2,103 |
| | |
Net Assets | | $ 2,491,891 |
Net Assets consist of: | | |
Paid in capital | | $ 2,324,028 |
Undistributed net investment income | | 3,265 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (140,678) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 305,276 |
Net Assets | | $ 2,491,891 |
| | |
Stock Selector All Cap: Net Asset Value, offering price and redemption price
per share ($2,440,563 ÷ 87,730 shares) | | $ 27.82 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($51,328 ÷ 1,845 shares) | | $ 27.82 |
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 March 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Income from Fidelity Central Funds | | $ 13,536 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,338 | |
Performance adjustment | (272) | |
Transfer agent fees | 1,725 | |
Accounting fees and expenses | 291 | |
Independent trustees' compensation | 5 | |
Registration fees | 141 | |
Audit | 19 | |
Legal | 6 | |
Miscellaneous | 10 | |
Total expenses before reductions | 7,263 | |
Expense reductions | (170) | 7,093 |
Net investment income (loss) | | 6,443 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 193 | |
Fidelity Central Funds | 44,666 | |
Total net realized gain (loss) | | 44,859 |
Change in net unrealized appreciation (depreciation) on: Investment securities | | 408,090 |
Net gain (loss) | | 452,949 |
Net increase (decrease) in net assets resulting from operations | | $ 459,392 |
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 March 31, 2012 (Unaudited) | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | | |
Operations | | | |
Net investment income (loss) | $ 6,443 | $ 6,324 | $ 5,097 |
Net realized gain (loss) | 44,859 | 16,947 | 86,830 |
Change in net unrealized appreciation (depreciation) | 408,090 | (167,518) | 23,283 |
Net increase (decrease) in net assets resulting
from operations | 459,392 | (144,247) | 115,210 |
Distributions to shareholders from net investment income | (7,628) | (4,605) | (4,230) |
Distributions to shareholders from net realized gain | (830) | - | - |
Total distributions | (8,458) | (4,605) | (4,230) |
Share transactions - net increase (decrease) | 759,732 | 664,405 | 80,564 |
Total increase (decrease) in net assets | 1,210,666 | 515,553 | 191,544 |
| | | |
Net Assets | | | |
Beginning of period | 1,281,225 | 765,672 | 574,128 |
End of period (including undistributed net investment income of $3,265, undistributed net investment income of $4,450 and undistributed net investment income of $2,732, respectively) | $ 2,491,891 | $ 1,281,225 | $ 765,672 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector All Cap
| Six months ended March 31, 2012 | Years ended September 30, |
| (Unaudited) | 2011 G | 2010 I | 2009 I | 2008 I | 2007 I | 2006 I |
Selected Per-Share Data | | | | | | | |
Net asset value, beginning of period | $ 22.21 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 |
Income from Investment Operations | | | | | | | |
Net investment income (loss) D | .09 | .15 | .16 | .14 | .20 | .19 | .16 |
Net realized and unrealized gain (loss) | 5.67 | (1.48) | 3.69 | 1.27 | (12.14) | 5.10 | 3.46 |
Total from investment operations | 5.76 | (1.33) | 3.85 | 1.41 | (11.94) | 5.29 | 3.62 |
Distributions from net investment income | (.14) | (.14) | (.15) | (.22) | (.16) | (.13) | (.12) |
Distributions from net realized gain | (.02) | - | - | - | (1.48) | (.03) | - |
Total distributions | (.15) K | (.14) | (.15) | (.22) | (1.64) | (.16) | (.12) |
Net asset value, end of period | $ 27.82 | $ 22.21 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 |
Total Return B,C | 26.03% | (5.68)% | 19.35% | 7.77% | (38.78)% | 19.52% | 15.29% |
Ratios to Average Net Assets E,H | | | | | | | |
Expenses before reductions | .76% A | .80% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of fee waivers, if any | .76% A | .80% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of all reductions | .75% A | .78% A | .86% | .87% | .93% | .87% | .87% |
Net investment income (loss) | .67% A | .64% A | .72% | .82% | .77% | .64% | .61% |
Supplemental Data | | | | | | | |
Net assets, end of period (in millions) | $ 2,441 | $ 1,247 | $ 730 | $ 552 | $ 698 | $ 1,005 | $ 853 |
Portfolio turnover rate F | 26% A | 9% A | 147% J | 109% | 121% | 91% | 109% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .01%. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the eleven month period ended September 30. The Fund changed its fiscal year from October 31 to September 30, effective September 30, 2011. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I For the period ended October 31. J Portfolio turnover rate excludes securities received or delivered in-kind. K Total distributions of $.15 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $.136 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended March 31, 2012 | Years ended September 30, |
| (Unaudited) | 2011 G | 2010 J | 2009 J | 2008 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.23 | $ 23.70 | $ 20.00 | $ 18.81 | $ 27.80 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .10 | .19 | .20 | .18 | .06 |
Net realized and unrealized gain (loss) | 5.68 | (1.47) | 3.69 | 1.27 | (9.05) |
Total from investment operations | 5.78 | (1.28) | 3.89 | 1.45 | (8.99) |
Distributions from net investment income | (.17) | (.19) | (.19) | (.26) | - |
Distributions from net realized gain | (.02) | - | - | - | - |
Total distributions | (.19) | (.19) | (.19) | (.26) | - |
Net asset value, end of period | $ 27.82 | $ 22.23 | $ 23.70 | $ 20.00 | $ 18.81 |
Total Return B,C | 26.10% | (5.50)% | 19.54% | 8.00% | (32.34)% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | .63% A | .62% A | .68% | .65% | .79% A |
Expenses net of fee waivers, if any | .63% A | .62% A | .68% | .65% | .79% A |
Expenses net of all reductions | .61% A | .60% A | .66% | .65% | .78% A |
Net investment income (loss) | .80% A | .81% A | .91% | 1.04% | .63% A |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 51 | $ 34 | $ 36 | $ 22 | $ 35 |
Portfolio turnover rate F | 26% A | 9% A | 147% K | 109% | 121% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .01%. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the eleven month period ended September 30. The Fund changed its fiscal year from October 31 to September 30, effective September 30, 2011. H For the period May 9, 2008 (commencement of sale of shares) to October 31, 2008. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J For the period ended October 31. K Portfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended March 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Stock Selector All Cap (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 All Cap 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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by 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.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. 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. The following summarizes the Fund's investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment
Manager | Investment
Objective | Investment
Practices | Expense
Ratio* |
Fidelity Equity Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Repurchase Agreements Restricted Securities | Less than .01% to .01% |
* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
Semiannual Report
2. Investments in Fidelity Central Funds - continued
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. 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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the Fidelity Central Funds. Although not included in the Fund's expenses, the Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's NAV. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .01%.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships (including allocation from Fidelity Central Funds), deferred trustees compensation, certain capital loss carryforwards and certain foreign taxes.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 318,875 |
Gross unrealized depreciation | (13,602) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 305,273 |
| |
Tax cost | $ 2,187,998 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At September 30, 2011, capital loss carryforwards were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Fiscal year of expiration | |
2016 | $ (52,633) |
2017 | (134,971) |
Total capital loss carryforward | $ (187,604) |
4. Purchases and Sales of Investments.
Purchases and sales of securities (including the Equity Central Funds), other than short-term securities, aggregated $1,007,212 and $248,841, respectively.
5. 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Stock Selector All Cap share class as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .53% of the Fund's average net assets.
FMR pays a portion of the management fees received from the Fund to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
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 All Cap. 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, transfer agent fees for each class were as follows:
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Stock Selector All Cap | $ 1,714 | .18 |
Class K | 11 | .05 |
| $ 1,725 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc.(FSC),an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund and the Equity Central Funds provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $170 for the period.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | | |
Stock Selector All Cap | $ 7,362 | $ 4,320 | $ 4,028 |
Class K | 266 | 285 | 202 |
Total | $ 7,628 | $ 4,605 | $ 4,230 |
From net realized gain | | | |
Stock Selector All Cap | $ 807 | $ - | $ - |
Class K | 23 | - | - |
Total | $ 830 | $ - | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| | Shares | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | |
Shares sold | 43,321 | 31,044 | 9,171 |
Reinvestment of distributions | 326 | 164 | 181 |
Shares redeemed | (12,044) | (5,904) | (6,135) |
Net increase (decrease) | 31,603 | 25,304 | 3,217 |
Class K | | | |
Shares sold | 442 | 335 | 739 |
Reinvestment of distributions | 12 | 11 | 10 |
Shares redeemed | (157) | (308) | (363) |
Net increase (decrease) | 297 | 38 | 386 |
| | Dollars | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | |
Shares sold | $ 1,053,047 | $ 811,772 | $ 203,020 |
Reinvestment of distributions | 7,992 | 4,146 | 3,844 |
Shares redeemed | (309,027) | (152,600) | (134,933) |
Net increase (decrease) | $ 752,012 | $ 663,318 | $ 71,931 |
Class K | | | |
Shares sold | $ 11,380 | $ 8,704 | $ 16,419 |
Reinvestment of distributions | 289 | 285 | 202 |
Shares redeemed | (3,949) | (7,902) | (7,988) |
Net increase (decrease) | $ 7,720 | $ 1,087 | $ 8,633 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, a single shareholder of record owned approximately 47% of the total outstanding shares of Stock Selector All Cap.
Semiannual Report
11. Proposed Reorganization.
The Board of Trustees of the Fund has approved an Agreement and Plan of Reorganization between the Fund and Fidelity Advisor® Stock Selector All Cap Fund. The agreement provides for the transfer of all the assets and the assumption of all the liabilities of Fidelity Advisor Stock Selector All Cap Fund in exchange solely for the number of equivalent shares of the Fund having the same aggregate net asset value as the outstanding shares of Fidelity Advisor Stock Selector All Cap Fund on the day the reorganization is effective.
A meeting of shareholders of Fidelity Advisor Stock Selector All Cap Fund is expected to be held during the third quarter of 2012 to vote on the reorganization. If approved by shareholders, the reorganization is expected to become effective on or about October 26, 2012. The reorganization is expected to qualify as a tax-free transaction with no gain or loss recognized by the funds or their shareholders.
New share classes will be created for the purpose of the reorganization with Fidelity Advisor Stock Selector All Cap Fund. The new share classes will not commence operations until approximately the date of the reorganization.
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.
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
JPMorgan Chase Bank, 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
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
FSS-USAN-0512
1.784916.109
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Stock Selector All Cap Fund -
Class K
Semiannual Report
March 31, 2012
(Fidelity Cover Art)
Contents
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/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Shareholder Expense Example
The Fund invests in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Fund, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Fund presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Fund also indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Fund's annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.
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 (October 1, 2011 to March 31, 2012).
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.
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.
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
October 1, 2011 | Ending
Account Value
March 31, 2012 | Expenses Paid
During Period*
October 1, 2011
to March 31, 2012 |
Stock Selector All Cap | .76% | | | |
Actual | | $ 1,000.00 | $ 1,260.30 | $ 4.29 |
HypotheticalA | | $ 1,000.00 | $ 1,021.20 | $ 3.84 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 1,261.00 | $ 3.56 |
HypotheticalA | | $ 1,000.00 | $ 1,021.85 | $ 3.18 |
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 183/366 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying Fidelity Central Funds as of their most recent fiscal half year ranged from less than .01% to .01%.
Semiannual Report
Investment Changes (Unaudited)
The information in the following tables is based on the Fund's pro-rata share of investments of Fidelity's Equity Central Funds. |
Top Ten Stocks as of March 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Apple, Inc. | 3.5 | 2.2 |
Procter & Gamble Co. | 1.8 | 2.0 |
Chevron Corp. | 1.7 | 1.5 |
British American Tobacco PLC sponsored ADR | 1.4 | 1.1 |
The Coca-Cola Co. | 1.3 | 1.4 |
Microsoft Corp. | 1.2 | 0.5 |
General Electric Co. | 1.1 | 1.4 |
CVS Caremark Corp. | 0.9 | 0.8 |
Citigroup, Inc. | 0.8 | 0.8 |
Amgen, Inc. | 0.8 | 0.8 |
| 14.5 | |
Top Five Market Sectors as of March 31, 2012 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 19.3 | 16.9 |
Financials | 13.7 | 14.2 |
Health Care | 11.4 | 11.3 |
Energy | 11.3 | 11.3 |
Industrials | 10.6 | 10.0 |
At period end, investments in foreign securities, including the Fund's pro-rata share of the underlying Central Funds, was 16.6% of net assets. |
A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in the underlying non-money market Fidelity Central Funds, is available at fidelity.com. |
Semiannual Report
Investments March 31, 2012 (Unaudited)
Showing Percentage of Net Assets
Equity Central Funds - 100.1% |
| Shares | | Value (000s) |
Fidelity Consumer Discretionary Central Fund (b) | 1,649,328 | | $ 244,464 |
Fidelity Consumer Staples Central Fund (b) | 1,743,129 | | 267,222 |
Fidelity Energy Central Fund (b) | 2,262,723 | | 281,053 |
Fidelity Financials Central Fund (b) | 6,859,384 | | 408,888 |
Fidelity Health Care Central Fund (b) | 1,949,314 | | 292,046 |
Fidelity Industrials Central Fund (b) | 1,721,480 | | 266,106 |
Fidelity Information Technology Central Fund (b) | 2,530,921 | | 487,987 |
Fidelity Materials Central Fund (b) | 487,459 | | 85,364 |
Fidelity Telecom Services Central Fund (b) | 553,313 | | 69,136 |
Fidelity Utilities Central Fund (b) | 827,391 | | 90,922 |
TOTAL EQUITY CENTRAL FUNDS (Cost $2,187,915) |
2,493,188
|
Money Market Central Funds - 0.0% |
| | | |
Fidelity Cash Central Fund, 0.14% (a)
(Cost $83) | 83,497 | |
83
|
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $2,187,998) | 2,493,271 |
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (1,380) |
NET ASSETS - 100% | $ 2,491,891 |
Legend |
(a) 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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request. |
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 | $ -* |
Fidelity Consumer Discretionary Central Fund | 1,494 |
Fidelity Consumer Staples Central Fund | 3,094 |
Fidelity Energy Central Fund | 1,733 |
Fidelity Financials Central Fund | 1,270 |
Fidelity Health Care Central Fund | 1,037 |
Fidelity Industrials Central Fund | 1,642 |
Fidelity Information Technology Central Fund | 781 |
Fidelity Materials Central Fund | 536 |
Fidelity Telecom Services Central Fund | 806 |
Fidelity Utilities Central Fund | 1,143 |
Total | $ 13,536 |
*Amount represents less than one thousand dollars. | | |
Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows: |
Fund
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Value,
end of
period | % ownership, end of
period |
Fidelity Consumer Discretionary Central Fund | $ 119,523 | $ 94,452 | $ 18,558 | $ 244,464 | 27.2% |
Fidelity Consumer Staples Central Fund | 152,354 | 115,231 | 33,737 | 267,222 | 31.4% |
Fidelity Energy Central Fund | 151,688 | 122,426 | 37,841 | 281,053 | 30.2% |
Fidelity Financials Central Fund | 196,425 | 151,106 | 31,894 | 408,888 | 27.9% |
Fidelity Health Care Central Fund | 156,759 | 113,339 | 23,210 | 292,046 | 29.0% |
Fidelity Industrials Central Fund | 129,408 | 99,327 | 16,450 | 266,106 | 28.3% |
Fidelity Information Technology Central Fund | 243,800 | 209,962 | 72,504 | 487,987 | 29.1% |
Fidelity Materials Central Fund | 40,801 | 33,874 | 5,316 | 85,364 | 26.7% |
Fidelity Telecom Services Central Fund | 40,139 | 29,499 | 7,329 | 69,136 | 30.7% |
Fidelity Utilities Central Fund | 51,163 | 37,996 | 2,002 | 90,922 | 29.0% |
Total | $ 1,282,060 | $ 1,007,212 | $ 248,841 | $ 2,493,188 | |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
The information in the following table is based on the pro-rata share of the investments of Fidelity's Equity Central Funds. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows. (Unaudited) |
United States of America | 83.4% |
United Kingdom | 3.6% |
Switzerland | 1.8% |
Brazil | 1.3% |
Netherlands | 1.2% |
France | 1.2% |
Canada | 1.1% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 5.3% |
| 100.0% |
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) | March 31, 2012 (Unaudited) |
| | |
Assets | | |
Investments in Fidelity Central Funds (cost $2,187,998) | | $ 2,493,271 |
Cash | | 34 |
Receivable for investments sold | | 371 |
Receivable for fund shares sold | | 196 |
Dividends receivable | | 23 |
Prepaid expenses | | 3 |
Other receivables | | 96 |
Total assets | | 2,493,994 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 567 | |
Accrued management fee | 1,042 | |
Transfer agent fee payable | 329 | |
Other affiliated payables | 62 | |
Other payables and accrued expenses | 103 | |
Total liabilities | | 2,103 |
| | |
Net Assets | | $ 2,491,891 |
Net Assets consist of: | | |
Paid in capital | | $ 2,324,028 |
Undistributed net investment income | | 3,265 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (140,678) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 305,276 |
Net Assets | | $ 2,491,891 |
| | |
Stock Selector All Cap: Net Asset Value, offering price and redemption price
per share ($2,440,563 ÷ 87,730 shares) | | $ 27.82 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($51,328 ÷ 1,845 shares) | | $ 27.82 |
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 March 31, 2012 (Unaudited) |
| | |
Investment Income | | |
Income from Fidelity Central Funds | | $ 13,536 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,338 | |
Performance adjustment | (272) | |
Transfer agent fees | 1,725 | |
Accounting fees and expenses | 291 | |
Independent trustees' compensation | 5 | |
Registration fees | 141 | |
Audit | 19 | |
Legal | 6 | |
Miscellaneous | 10 | |
Total expenses before reductions | 7,263 | |
Expense reductions | (170) | 7,093 |
Net investment income (loss) | | 6,443 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 193 | |
Fidelity Central Funds | 44,666 | |
Total net realized gain (loss) | | 44,859 |
Change in net unrealized appreciation (depreciation) on: Investment securities | | 408,090 |
Net gain (loss) | | 452,949 |
Net increase (decrease) in net assets resulting from operations | | $ 459,392 |
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 March 31, 2012 (Unaudited) | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | | |
Operations | | | |
Net investment income (loss) | $ 6,443 | $ 6,324 | $ 5,097 |
Net realized gain (loss) | 44,859 | 16,947 | 86,830 |
Change in net unrealized appreciation (depreciation) | 408,090 | (167,518) | 23,283 |
Net increase (decrease) in net assets resulting
from operations | 459,392 | (144,247) | 115,210 |
Distributions to shareholders from net investment income | (7,628) | (4,605) | (4,230) |
Distributions to shareholders from net realized gain | (830) | - | - |
Total distributions | (8,458) | (4,605) | (4,230) |
Share transactions - net increase (decrease) | 759,732 | 664,405 | 80,564 |
Total increase (decrease) in net assets | 1,210,666 | 515,553 | 191,544 |
| | | |
Net Assets | | | |
Beginning of period | 1,281,225 | 765,672 | 574,128 |
End of period (including undistributed net investment income of $3,265, undistributed net investment income of $4,450 and undistributed net investment income of $2,732, respectively) | $ 2,491,891 | $ 1,281,225 | $ 765,672 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector All Cap
| Six months ended March 31, 2012 | Years ended September 30, |
| (Unaudited) | 2011 G | 2010 I | 2009 I | 2008 I | 2007 I | 2006 I |
Selected Per-Share Data | | | | | | | |
Net asset value, beginning of period | $ 22.21 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 |
Income from Investment Operations | | | | | | | |
Net investment income (loss) D | .09 | .15 | .16 | .14 | .20 | .19 | .16 |
Net realized and unrealized gain (loss) | 5.67 | (1.48) | 3.69 | 1.27 | (12.14) | 5.10 | 3.46 |
Total from investment operations | 5.76 | (1.33) | 3.85 | 1.41 | (11.94) | 5.29 | 3.62 |
Distributions from net investment income | (.14) | (.14) | (.15) | (.22) | (.16) | (.13) | (.12) |
Distributions from net realized gain | (.02) | - | - | - | (1.48) | (.03) | - |
Total distributions | (.15) K | (.14) | (.15) | (.22) | (1.64) | (.16) | (.12) |
Net asset value, end of period | $ 27.82 | $ 22.21 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 |
Total Return B,C | 26.03% | (5.68)% | 19.35% | 7.77% | (38.78)% | 19.52% | 15.29% |
Ratios to Average Net Assets E,H | | | | | | | |
Expenses before reductions | .76% A | .80% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of fee waivers, if any | .76% A | .80% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of all reductions | .75% A | .78% A | .86% | .87% | .93% | .87% | .87% |
Net investment income (loss) | .67% A | .64% A | .72% | .82% | .77% | .64% | .61% |
Supplemental Data | | | | | | | |
Net assets, end of period (in millions) | $ 2,441 | $ 1,247 | $ 730 | $ 552 | $ 698 | $ 1,005 | $ 853 |
Portfolio turnover rate F | 26% A | 9% A | 147% J | 109% | 121% | 91% | 109% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .01%. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the eleven month period ended September 30. The Fund changed its fiscal year from October 31 to September 30, effective September 30, 2011. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I For the period ended October 31. J Portfolio turnover rate excludes securities received or delivered in-kind. K Total distributions of $.15 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $.136 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended March 31, 2012 | Years ended September 30, |
| (Unaudited) | 2011 G | 2010 J | 2009 J | 2008 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 22.23 | $ 23.70 | $ 20.00 | $ 18.81 | $ 27.80 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .10 | .19 | .20 | .18 | .06 |
Net realized and unrealized gain (loss) | 5.68 | (1.47) | 3.69 | 1.27 | (9.05) |
Total from investment operations | 5.78 | (1.28) | 3.89 | 1.45 | (8.99) |
Distributions from net investment income | (.17) | (.19) | (.19) | (.26) | - |
Distributions from net realized gain | (.02) | - | - | - | - |
Total distributions | (.19) | (.19) | (.19) | (.26) | - |
Net asset value, end of period | $ 27.82 | $ 22.23 | $ 23.70 | $ 20.00 | $ 18.81 |
Total Return B,C | 26.10% | (5.50)% | 19.54% | 8.00% | (32.34)% |
Ratios to Average Net Assets E,I | | | | | |
Expenses before reductions | .63% A | .62% A | .68% | .65% | .79% A |
Expenses net of fee waivers, if any | .63% A | .62% A | .68% | .65% | .79% A |
Expenses net of all reductions | .61% A | .60% A | .66% | .65% | .78% A |
Net investment income (loss) | .80% A | .81% A | .91% | 1.04% | .63% A |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 51 | $ 34 | $ 36 | $ 22 | $ 35 |
Portfolio turnover rate F | 26% A | 9% A | 147% K | 109% | 121% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses ranged from less than .01% to .01%. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the eleven month period ended September 30. The Fund changed its fiscal year from October 31 to September 30, effective September 30, 2011. H For the period May 9, 2008 (commencement of sale of shares) to October 31, 2008. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J For the period ended October 31. K Portfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended March 31, 2012 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Stock Selector All Cap (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 All Cap 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. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by 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.
Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. 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. The following summarizes the Fund's investment in each Fidelity Central Fund.
Fidelity Central Fund | Investment
Manager | Investment
Objective | Investment
Practices | Expense
Ratio* |
Fidelity Equity Central Funds | FMR Co., Inc. (FMRC) | Each fund seeks capital appreciation by investing primarily in common stocks, with a concentration in a particular industry. | Foreign Securities Repurchase Agreements Restricted Securities | Less than .01% to .01% |
* Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
Semiannual Report
2. Investments in Fidelity Central Funds - continued
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including security valuation policies) of those funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. 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. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the Fidelity Central Funds. Although not included in the Fund's expenses, the Fund indirectly bears its proportionate share of the Fidelity Central Funds' expenses through the impact of these expenses on each Fidelity Central Fund's NAV. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .01%.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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 GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, partnerships (including allocation from Fidelity Central Funds), deferred trustees compensation, certain capital loss carryforwards and certain foreign taxes.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 318,875 |
Gross unrealized depreciation | (13,602) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 305,273 |
| |
Tax cost | $ 2,187,998 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. At September 30, 2011, capital loss carryforwards were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Fiscal year of expiration | |
2016 | $ (52,633) |
2017 | (134,971) |
Total capital loss carryforward | $ (187,604) |
4. Purchases and Sales of Investments.
Purchases and sales of securities (including the Equity Central Funds), other than short-term securities, aggregated $1,007,212 and $248,841, respectively.
5. 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 an annualized group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Stock Selector All Cap share class as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .53% of the Fund's average net assets.
FMR pays a portion of the management fees received from the Fund to the Fidelity Central Funds' investment advisers, who are also affiliates, for managing the assets of the Fidelity Central Funds.
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 All Cap. 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, transfer agent fees for each class were as follows:
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Stock Selector All Cap | $ 1,714 | .18 |
Class K | 11 | .05 |
| $ 1,725 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc.(FSC),an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund and the Equity Central Funds provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $170 for the period.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | | |
Stock Selector All Cap | $ 7,362 | $ 4,320 | $ 4,028 |
Class K | 266 | 285 | 202 |
Total | $ 7,628 | $ 4,605 | $ 4,230 |
From net realized gain | | | |
Stock Selector All Cap | $ 807 | $ - | $ - |
Class K | 23 | - | - |
Total | $ 830 | $ - | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Share Transactions.
Transactions for each class of shares were as follows:
| | Shares | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | |
Shares sold | 43,321 | 31,044 | 9,171 |
Reinvestment of distributions | 326 | 164 | 181 |
Shares redeemed | (12,044) | (5,904) | (6,135) |
Net increase (decrease) | 31,603 | 25,304 | 3,217 |
Class K | | | |
Shares sold | 442 | 335 | 739 |
Reinvestment of distributions | 12 | 11 | 10 |
Shares redeemed | (157) | (308) | (363) |
Net increase (decrease) | 297 | 38 | 386 |
| | Dollars | |
| Six months ended March 31,
2012 | Eleven months ended September 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | |
Shares sold | $ 1,053,047 | $ 811,772 | $ 203,020 |
Reinvestment of distributions | 7,992 | 4,146 | 3,844 |
Shares redeemed | (309,027) | (152,600) | (134,933) |
Net increase (decrease) | $ 752,012 | $ 663,318 | $ 71,931 |
Class K | | | |
Shares sold | $ 11,380 | $ 8,704 | $ 16,419 |
Reinvestment of distributions | 289 | 285 | 202 |
Shares redeemed | (3,949) | (7,902) | (7,988) |
Net increase (decrease) | $ 7,720 | $ 1,087 | $ 8,633 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, a single shareholder of record owned approximately 47% of the total outstanding shares of Stock Selector All Cap.
Semiannual Report
11. Proposed Reorganization.
The Board of Trustees of the Fund has approved an Agreement and Plan of Reorganization between the Fund and Fidelity Advisor® Stock Selector All Cap Fund. The agreement provides for the transfer of all the assets and the assumption of all the liabilities of Fidelity Advisor Stock Selector All Cap Fund in exchange solely for the number of equivalent shares of the Fund having the same aggregate net asset value as the outstanding shares of Fidelity Advisor Stock Selector All Cap Fund on the day the reorganization is effective.
A meeting of shareholders of Fidelity Advisor Stock Selector All Cap Fund is expected to be held during the third quarter of 2012 to vote on the reorganization. If approved by shareholders, the reorganization is expected to become effective on or about October 26, 2012. The reorganization is expected to qualify as a tax-free transaction with no gain or loss recognized by the funds or their shareholders.
New share classes will be created for the purpose of the reorganization with Fidelity Advisor Stock Selector All Cap Fund. The new share classes will not commence operations until approximately the date of the reorganization.
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.
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
JPMorgan Chase Bank, N.A.
New York, NY
FSS-K-USAN-0512
1.863294.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
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: | May 23, 2012 |
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: | May 23, 2012 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | May 23, 2012 |
