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, 2011 |
Item 1. Reports to Stockholders
Fidelity®
Capital Appreciation
Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Capital Appreciation | .89% | | | |
Actual | | $ 1,000.00 | $ 1,138.20 | $ 4.72 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class K | .73% | | | |
Actual | | $ 1,000.00 | $ 1,139.00 | $ 3.87 |
HypotheticalA | | $ 1,000.00 | $ 1,021.17 | $ 3.66 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Continental Holdings, Inc. | 4.9 | 8.1 |
Virgin Media, Inc. | 4.1 | 3.9 |
Apple, Inc. | 3.9 | 4.0 |
Chevron Corp. | 3.2 | 1.6 |
Royal Dutch Shell PLC Class A sponsored ADR | 2.3 | 1.5 |
General Electric Co. | 2.2 | 0.0 |
Occidental Petroleum Corp. | 2.1 | 1.5 |
TJX Companies, Inc. | 2.0 | 1.3 |
Alcatel-Lucent SA sponsored ADR | 1.9 | 0.0 |
Biogen Idec, Inc. | 1.8 | 1.3 |
| 28.4 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 27.8 | 27.6 |
Industrials | 22.5 | 26.1 |
Energy | 13.8 | 6.8 |
Information Technology | 11.9 | 11.4 |
Consumer Staples | 5.6 | 4.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
 | Stocks 96.9% | | | Stocks 96.1% | |
 | Short-Term
Investments and
Net Other Assets 3.1% | | | Short-Term
Investments and
Net Other Assets 3.9% | |
* Foreign investments | 16.1% | | ** Foreign investments | 7.5% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 27.8% |
Automobiles - 0.6% |
Harley-Davidson, Inc. | 920,558 | | $ 34,300 |
Diversified Consumer Services - 2.4% |
Career Education Corp. (a)(d) | 1,428,377 | | 31,153 |
DeVry, Inc. | 1,043,087 | | 55,179 |
ITT Educational Services, Inc. (a)(d) | 789,137 | | 56,605 |
| | 142,937 |
Hotels, Restaurants & Leisure - 4.4% |
Arcos Dorados Holdings, Inc. | 626,830 | | 13,809 |
Chipotle Mexican Grill, Inc. (a) | 118,780 | | 31,689 |
Las Vegas Sands Corp. (a) | 1,623,447 | | 76,318 |
McDonald's Corp. | 692,868 | | 54,258 |
Paddy Power PLC (Ireland) | 1,240,558 | | 60,638 |
Starbucks Corp. | 692,768 | | 25,071 |
| | 261,783 |
Household Durables - 0.1% |
Newell Rubbermaid, Inc. | 198,000 | | 3,774 |
Internet & Catalog Retail - 0.2% |
Blue Nile, Inc. (a)(d) | 162,843 | | 9,282 |
Media - 10.3% |
CBS Corp. Class B | 940,398 | | 23,717 |
DreamWorks Animation SKG, Inc. Class A (a) | 494,909 | | 13,110 |
Interpublic Group of Companies, Inc. | 4,346,148 | | 51,067 |
JC Decaux SA (a) | 455,329 | | 15,910 |
Kabel Deutschland Holding AG (a) | 1,285,857 | | 80,365 |
The Walt Disney Co. | 2,343,400 | | 101,001 |
Time Warner, Inc. | 890,904 | | 33,730 |
Viacom, Inc. Class B (non-vtg.) | 841,413 | | 43,047 |
Virgin Media, Inc. (d) | 7,959,435 | | 240,853 |
| | 602,800 |
Multiline Retail - 1.1% |
PPR SA | 247,500 | | 44,267 |
Retail Ventures, Inc. (a) | 1,035,657 | | 21,262 |
| | 65,529 |
Specialty Retail - 4.8% |
Bed Bath & Beyond, Inc. (a) | 1,237,366 | | 69,441 |
DSW, Inc. Class A (a)(d) | 711,921 | | 33,802 |
Tiffany & Co., Inc. | 663,229 | | 46,055 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
TJX Companies, Inc. | 2,177,729 | | $ 116,770 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 327,859 | | 17,439 |
| | 283,507 |
Textiles, Apparel & Luxury Goods - 3.9% |
Coach, Inc. | 752,264 | | 44,993 |
Oxford Industries, Inc. | 798,060 | | 27,413 |
Phillips-Van Heusen Corp. | 859,100 | | 60,489 |
Polo Ralph Lauren Corp. Class A | 197,900 | | 25,879 |
Timberland Co. Class A (a) | 874,030 | | 39,497 |
VF Corp. | 331,266 | | 33,312 |
| | 231,583 |
TOTAL CONSUMER DISCRETIONARY | | 1,635,495 |
CONSUMER STAPLES - 5.6% |
Beverages - 0.5% |
Anheuser-Busch InBev SA NV (d) | 445,371 | | 28,424 |
Food & Staples Retailing - 1.1% |
Walgreen Co. | 1,237,335 | | 52,859 |
Whole Foods Market, Inc. | 198,031 | | 12,428 |
| | 65,287 |
Food Products - 0.4% |
Green Mountain Coffee Roasters, Inc. (a) | 316,779 | | 21,212 |
Household Products - 0.2% |
Colgate-Palmolive Co. | 148,500 | | 12,526 |
Personal Products - 0.6% |
Elizabeth Arden, Inc. (a) | 19,800 | | 595 |
Estee Lauder Companies, Inc. Class A | 297,001 | | 28,809 |
Nu Skin Enterprises, Inc. Class A | 121,955 | | 3,914 |
| | 33,318 |
Tobacco - 2.8% |
Altria Group, Inc. | 3,761,573 | | 100,961 |
Lorillard, Inc. | 415,718 | | 44,274 |
Reynolds American, Inc. | 593,957 | | 22,042 |
| | 167,277 |
TOTAL CONSUMER STAPLES | | 328,044 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 13.8% |
Energy Equipment & Services - 4.2% |
Aker Drilling ASA (a) | 413,600 | | $ 1,419 |
Atwood Oceanics, Inc. (a) | 147,840 | | 6,642 |
Baker Hughes, Inc. | 643,398 | | 49,805 |
Compagnie Generale de Geophysique SA (a) | 841,446 | | 29,643 |
Dresser-Rand Group, Inc. (a) | 593,870 | | 31,202 |
National Oilwell Varco, Inc. | 910,731 | | 69,844 |
Oceaneering International, Inc. (a) | 40,333 | | 3,526 |
Oil States International, Inc. (a) | 48,162 | | 3,998 |
Transocean Ltd. (a) | 661,497 | | 48,124 |
| | 244,203 |
Oil, Gas & Consumable Fuels - 9.6% |
Chesapeake Energy Corp. | 890,840 | | 29,995 |
Chevron Corp. | 1,732,341 | | 189,587 |
Comstock Resources, Inc. (a)(d) | 593,900 | | 19,040 |
Gulfport Energy Corp. (a) | 334,300 | | 11,380 |
Occidental Petroleum Corp. | 1,070,406 | | 122,337 |
Repsol YPF SA | 791,793 | | 28,276 |
Royal Dutch Shell PLC Class A sponsored ADR | 1,781,546 | | 138,034 |
Stone Energy Corp. (a) | 593,915 | | 21,001 |
Whiting Petroleum Corp. (a) | 99,000 | | 6,881 |
| | 566,531 |
TOTAL ENERGY | | 810,734 |
FINANCIALS - 5.3% |
Capital Markets - 0.8% |
Janus Capital Group, Inc. | 1,977,543 | | 24,067 |
TD Ameritrade Holding Corp. | 1,039,700 | | 22,395 |
| | 46,462 |
Commercial Banks - 2.5% |
Comerica, Inc. | 1,672,303 | | 63,430 |
SVB Financial Group (a) | 590,894 | | 35,714 |
U.S. Bancorp, Delaware | 1,831,235 | | 47,282 |
| | 146,426 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Management & Development - 2.0% |
CB Richard Ellis Group, Inc. Class A (a) | 3,630,573 | | $ 96,973 |
Jones Lang LaSalle, Inc. | 202,900 | | 20,773 |
| | 117,746 |
TOTAL FINANCIALS | | 310,634 |
HEALTH CARE - 4.9% |
Biotechnology - 2.3% |
Alexion Pharmaceuticals, Inc. (a) | 302,685 | | 29,327 |
Biogen Idec, Inc. (a) | 1,088,143 | | 105,931 |
| | 135,258 |
Health Care Equipment & Supplies - 1.4% |
C. R. Bard, Inc. | 188,100 | | 20,080 |
Edwards Lifesciences Corp. (a) | 712,600 | | 61,533 |
| | 81,613 |
Pharmaceuticals - 1.2% |
Novo Nordisk A/S Series B | 346,445 | | 43,859 |
Shire PLC | 989,900 | | 30,720 |
| | 74,579 |
TOTAL HEALTH CARE | | 291,450 |
INDUSTRIALS - 22.5% |
Aerospace & Defense - 2.6% |
Bombardier, Inc. Class B (sub. vtg.) | 2,969,500 | | 22,128 |
GeoEye, Inc. (a) | 415,416 | | 15,408 |
Textron, Inc. | 2,255,412 | | 58,866 |
United Technologies Corp. | 643,427 | | 57,638 |
| | 154,040 |
Air Freight & Logistics - 0.3% |
Air Transport Services Group, Inc. (a) | 1,976,893 | | 16,171 |
Airlines - 6.2% |
Ryanair Holdings PLC sponsored ADR | 517,206 | | 15,764 |
United Continental Holdings, Inc. (a)(d) | 12,569,652 | | 286,838 |
US Airways Group, Inc. (a)(d) | 7,086,883 | | 64,420 |
| | 367,022 |
Commercial Services & Supplies - 0.5% |
Stericycle, Inc. (a) | 306,839 | | 28,008 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 2.5% |
Fluor Corp. | 544,418 | | $ 38,077 |
Foster Wheeler AG (a) | 1,066,572 | | 37,938 |
Jacobs Engineering Group, Inc. (a) | 593,977 | | 29,467 |
Shaw Group, Inc. (a) | 1,050,712 | | 40,873 |
| | 146,355 |
Electrical Equipment - 1.7% |
Emerson Electric Co. | 989,892 | | 60,146 |
Rockwell Automation, Inc. | 459,500 | | 40,036 |
| | 100,182 |
Industrial Conglomerates - 2.2% |
General Electric Co. | 6,334,997 | | 129,551 |
Machinery - 3.7% |
3D Systems Corp. (a)(d) | 346,400 | | 14,452 |
Chart Industries, Inc. (a) | 442,572 | | 21,513 |
Danaher Corp. | 742,388 | | 41,010 |
Greenbrier Companies, Inc. (a) | 395,038 | | 10,694 |
Trinity Industries, Inc. | 784,949 | | 28,415 |
WABCO Holdings, Inc. (a) | 836,356 | | 61,765 |
Wabtec Corp. | 536,700 | | 38,310 |
| | 216,159 |
Professional Services - 0.9% |
IHS, Inc. Class A (a) | 564,313 | | 49,795 |
Road & Rail - 1.6% |
Union Pacific Corp. | 926,745 | | 95,890 |
Trading Companies & Distributors - 0.3% |
W.W. Grainger, Inc. | 126,440 | | 19,168 |
TOTAL INDUSTRIALS | | 1,322,341 |
INFORMATION TECHNOLOGY - 11.9% |
Communications Equipment - 2.2% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 16,828,400 | | 110,058 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 1,187,900 | | 18,056 |
| | 128,114 |
Computers & Peripherals - 3.9% |
Apple, Inc. (a) | 663,233 | | 230,958 |
Electronic Equipment & Components - 0.3% |
Amphenol Corp. Class A | 247,500 | | 13,838 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - 0.6% |
VeriSign, Inc. | 940,401 | | $ 34,757 |
IT Services - 1.4% |
Accenture PLC Class A | 525,205 | | 30,005 |
Cognizant Technology Solutions Corp. Class A (a) | 425,656 | | 35,287 |
Paychex, Inc. | 544,488 | | 17,810 |
| | 83,102 |
Software - 3.5% |
Ariba, Inc. (a) | 2,733,669 | | 95,050 |
FactSet Research Systems, Inc. | 185,478 | | 20,293 |
Intuit, Inc. (a) | 307,751 | | 17,099 |
Oracle Corp. | 1,484,723 | | 53,524 |
Rovi Corp. (a) | 445,425 | | 21,630 |
| | 207,596 |
TOTAL INFORMATION TECHNOLOGY | | 698,365 |
MATERIALS - 1.9% |
Containers & Packaging - 0.4% |
Silgan Holdings, Inc. | 494,892 | | 22,696 |
Metals & Mining - 1.5% |
United States Steel Corp. (d) | 1,831,378 | | 87,375 |
TOTAL MATERIALS | | 110,071 |
TELECOMMUNICATION SERVICES - 3.2% |
Diversified Telecommunication Services - 1.6% |
Iliad Group SA | 388,963 | | 50,002 |
Telenet Group Holding NV (d) | 873,707 | | 43,438 |
| | 93,440 |
Wireless Telecommunication Services - 1.6% |
Clearwire Corp. Class A (a)(d) | 4,783,479 | | 23,248 |
Millicom International Cellular SA | 298,500 | | 32,339 |
Vodafone Group PLC sponsored ADR | 1,385,855 | | 40,356 |
| | 95,943 |
TOTAL TELECOMMUNICATION SERVICES | | 189,383 |
TOTAL COMMON STOCKS (Cost $5,050,829) | 5,696,517 |
Money Market Funds - 9.7% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 245,156,385 | | $ 245,156 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 326,068,329 | | 326,068 |
TOTAL MONEY MARKET FUNDS (Cost $571,224) | 571,224 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.03%, dated 4/29/11 due 5/2/11 (Collateralized by U.S. Treasury Obligations) #
(Cost $2,262) | $ 2,262 | | 2,262 |
TOTAL INVESTMENT PORTFOLIO - 106.7% (Cost $5,624,315) | | 6,270,003 |
NET OTHER ASSETS (LIABILITIES) - (6.7)% | | (391,208) |
NET ASSETS - 100% | $ 5,878,795 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000s) |
$2,262,000 due 5/02/11 at 0.03% |
BNP Paribas Securities Corp. | $ 1,135 |
Barclays Capital, Inc. | 604 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 523 |
| $ 2,262 |
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 | $ 264 |
Fidelity Securities Lending Cash Central Fund | 808 |
Total | $ 1,072 |
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 |
Transcend Services, Inc. | $ 10,894 | $ - | $ 11,679 | $ - | $ - |
US Airways Group, Inc. | 117,710 | 4,992 | 32,393 | - | - |
Total | $ 128,604 | $ 4,992 | $ 44,072 | $ - | $ - |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,635,495 | $ 1,635,495 | $ - | $ - |
Consumer Staples | 328,044 | 299,620 | 28,424 | - |
Energy | 810,734 | 781,091 | 29,643 | - |
Financials | 310,634 | 310,634 | - | - |
Health Care | 291,450 | 216,871 | 74,579 | - |
Industrials | 1,322,341 | 1,322,341 | - | - |
Information Technology | 698,365 | 698,365 | - | - |
Materials | 110,071 | 110,071 | - | - |
Telecommunication Services | 189,383 | 189,383 | - | - |
Money Market Funds | 571,224 | 571,224 | - | - |
Cash Equivalents | 2,262 | - | 2,262 | - |
Total Investments in Securities: | $ 6,270,003 | $ 6,135,095 | $ 134,908 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.9% |
France | 4.3% |
United Kingdom | 3.0% |
Ireland | 1.7% |
Switzerland | 1.4% |
Germany | 1.4% |
Belgium | 1.2% |
Others (Individually Less Than 1%) | 3.1% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $642,471,000 all of which will expire in fiscal 2016. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $319,881 and repurchase agreements of $2,262) - See accompanying schedule: Unaffiliated issuers (cost $5,053,091) | $ 5,698,779 | |
Fidelity Central Funds (cost $571,224) | 571,224 | |
Total Investments (cost $5,624,315) | | $ 6,270,003 |
Cash | | 1 |
Receivable for investments sold | | 82,553 |
Receivable for fund shares sold | | 3,702 |
Dividends receivable | | 2,128 |
Distributions receivable from Fidelity Central Funds | | 102 |
Prepaid expenses | | 5 |
Other receivables | | 486 |
Total assets | | 6,358,980 |
| | |
Liabilities | | |
Payable for investments purchased | $ 142,564 | |
Payable for fund shares redeemed | 7,154 | |
Accrued management fee | 3,248 | |
Other affiliated payables | 984 | |
Other payables and accrued expenses | 167 | |
Collateral on securities loaned, at value | 326,068 | |
Total liabilities | | 480,185 |
| | |
Net Assets | | $ 5,878,795 |
Net Assets consist of: | | |
Paid in capital | | $ 5,362,364 |
Distributions in excess of net investment income | | (3,359) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (125,950) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 645,740 |
Net Assets | | $ 5,878,795 |
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, 2011 (Unaudited) |
| | |
Capital Appreciation:
Net Asset Value, offering price and redemption price per share ($5,034,256 ÷ 184,204 shares) | | $ 27.33 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($844,539 ÷ 30,852 shares) | | $ 27.37 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 25,626 |
Interest | | 1 |
Income from Fidelity Central Funds | | 1,072 |
Total income | | 26,699 |
| | |
Expenses | | |
Management fee
Basic fee | $ 15,791 | |
Performance adjustment | 2,698 | |
Transfer agent fees | 5,387 | |
Accounting and security lending fees | 590 | |
Custodian fees and expenses | 87 | |
Independent trustees' compensation | 15 | |
Registration fees | 64 | |
Audit | 35 | |
Legal | 10 | |
Miscellaneous | 28 | |
Total expenses before reductions | 24,705 | |
Expense reductions | (456) | 24,249 |
Net investment income (loss) | | 2,450 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 522,262 | |
Other affiliated issuers | 8,311 | |
Foreign currency transactions | (25) | |
Total net realized gain (loss) | | 530,548 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,086 | |
Assets and liabilities in foreign currencies | 67 | |
Total change in net unrealized appreciation (depreciation) | | 199,153 |
Net gain (loss) | | 729,701 |
Net increase (decrease) in net assets resulting from operations | | $ 732,151 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,450 | $ 9,579 |
Net realized gain (loss) | 530,548 | 44,743 |
Change in net unrealized appreciation (depreciation) | 199,153 | 1,258,883 |
Net increase (decrease) in net assets resulting
from operations | 732,151 | 1,313,205 |
Distributions to shareholders from net investment income | (5,716) | (5,772) |
Share transactions - net increase (decrease) | (230,714) | (834,386) |
Total increase (decrease) in net assets | 495,721 | 473,047 |
| | |
Net Assets | | |
Beginning of period | 5,383,074 | 4,910,027 |
End of period (including distributions in excess of net investment income of $3,359 and distributions in excess of net investment income of $93, respectively) | $ 5,878,795 | $ 5,383,074 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Capital Appreciation
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 24.03 | $ 18.71 | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .04 | .04 | .16 | .11 | .10 |
Net realized and unrealized gain (loss) | 3.31 | 5.30 | 2.17 | (13.27) | 6.06 | 3.55 |
Total from investment operations | 3.32 | 5.34 | 2.21 | (13.11) | 6.17 | 3.65 |
Distributions from net investment income | (.02) | (.02) | (.18) | (.12) | (.11) | - |
Distributions from net realized gain | - | - | - | (2.22) | (1.34) | (2.46) |
Total distributions | (.02) | (.02) | (.18) | (2.34) | (1.45) | (2.46) |
Net asset value, end of period | $ 27.33 | $ 24.03 | $ 18.71 | $ 16.68 | $ 32.13 | $ 27.41 |
Total Return B,C | 13.82% | 28.57% | 13.54% | (43.80)% | 23.51% | 14.70% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .89% A | .88% | .79% | .82% | .83% | .91% |
Expenses net of fee waivers, if any | .89% A | .88% | .79% | .82% | .83% | .91% |
Expenses net of all reductions | .88% A | .86% | .78% | .82% | .82% | .87% |
Net investment income (loss) | .06% A | .16% | .25% | .67% | .36% | .36% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 5,034 | $ 4,672 | $ 4,627 | $ 4,794 | $ 10,139 | $ 8,353 |
Portfolio turnover rate F | 209% A | 186% | 243% | 157% | 135% | 198% |
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.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 24.09 | $ 18.73 | $ 16.69 | $ 25.11 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .03 | .08 | .08 | .03 |
Net realized and unrealized gain (loss) | 3.31 | 5.31 | 2.18 | (8.45) |
Total from investment operations | 3.34 | 5.39 | 2.26 | (8.42) |
Distributions from net investment income | (.06) | (.03) | (.22) | - |
Net asset value, end of period | $ 27.37 | $ 24.09 | $ 18.73 | $ 16.69 |
Total Return B,C | 13.90% | 28.80% | 13.85% | (33.53)% |
Ratios to Average Net Assets E,H | | | | |
Expenses before reductions | .73% A | .70% | .55% | .66% A |
Expenses net of fee waivers, if any | .73% A | .70% | .55% | .66% A |
Expenses net of all reductions | .72% A | .68% | .54% | .65% A |
Net investment income (loss) | .22% A | .34% | .49% | .41% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 845 | $ 712 | $ 283 | $ 93 |
Portfolio turnover rate F | 209% A | 186% | 243% | 157% |
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.
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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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. 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
3. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 936,905 |
Gross unrealized depreciation | (299,808) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 637,097 |
| |
Tax cost | $ 5,632,906 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from 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 $5,614,094 and $5,819,747, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Capital Appreciation as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Capital Appreciation | $ 5,184 | .21 |
Class K | 203 | .05 |
| $ 5,387 | |
* 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 $339 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $10 and is reflected in Miscellaneous expenses 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
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $808, including $48 from securities loaned to FCM.
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 $456 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Capital Appreciation | $ 3,855 | $ 5,336 |
Class K | 1,861 | 436 |
Total | $ 5,716 | $ 5,772 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Capital Appreciation | | | | |
Shares sold | 11,924 | 24,608 | $ 306,887 | $ 544,840 |
Reinvestment of distributions | 148 | 250 | 3,700 | 5,154 |
Shares redeemed | (22,310) | (77,678) | (575,273) | (1,707,314) |
Net increase (decrease) | (10,238) | (52,820) | $ (264,686) | $ (1,157,320) |
Class K | | | | |
Shares sold | 4,182 | 22,592 | $ 107,946 | $ 500,526 |
Reinvestment of distributions | 74 | 21 | 1,860 | 436 |
Shares redeemed | (2,944) | (8,191) | (75,834) | (178,028) |
Net increase (decrease) | 1,312 | 14,422 | $ 33,972 | $ 322,934 |
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 distributions, 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
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
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
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
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CAF-USAN-0611
1.784911.108
Fidelity®
Capital Appreciation
Fund -
Class K
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Capital Appreciation | .89% | | | |
Actual | | $ 1,000.00 | $ 1,138.20 | $ 4.72 |
HypotheticalA | | $ 1,000.00 | $ 1,020.38 | $ 4.46 |
Class K | .73% | | | |
Actual | | $ 1,000.00 | $ 1,139.00 | $ 3.87 |
HypotheticalA | | $ 1,000.00 | $ 1,021.17 | $ 3.66 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Continental Holdings, Inc. | 4.9 | 8.1 |
Virgin Media, Inc. | 4.1 | 3.9 |
Apple, Inc. | 3.9 | 4.0 |
Chevron Corp. | 3.2 | 1.6 |
Royal Dutch Shell PLC Class A sponsored ADR | 2.3 | 1.5 |
General Electric Co. | 2.2 | 0.0 |
Occidental Petroleum Corp. | 2.1 | 1.5 |
TJX Companies, Inc. | 2.0 | 1.3 |
Alcatel-Lucent SA sponsored ADR | 1.9 | 0.0 |
Biogen Idec, Inc. | 1.8 | 1.3 |
| 28.4 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 27.8 | 27.6 |
Industrials | 22.5 | 26.1 |
Energy | 13.8 | 6.8 |
Information Technology | 11.9 | 11.4 |
Consumer Staples | 5.6 | 4.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks 96.9% | | | Stocks 96.1% | |
| Short-Term
Investments and
Net Other Assets 3.1% | | | Short-Term
Investments and
Net Other Assets 3.9% | |
* Foreign investments | 16.1% | | ** Foreign investments | 7.5% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 27.8% |
Automobiles - 0.6% |
Harley-Davidson, Inc. | 920,558 | | $ 34,300 |
Diversified Consumer Services - 2.4% |
Career Education Corp. (a)(d) | 1,428,377 | | 31,153 |
DeVry, Inc. | 1,043,087 | | 55,179 |
ITT Educational Services, Inc. (a)(d) | 789,137 | | 56,605 |
| | 142,937 |
Hotels, Restaurants & Leisure - 4.4% |
Arcos Dorados Holdings, Inc. | 626,830 | | 13,809 |
Chipotle Mexican Grill, Inc. (a) | 118,780 | | 31,689 |
Las Vegas Sands Corp. (a) | 1,623,447 | | 76,318 |
McDonald's Corp. | 692,868 | | 54,258 |
Paddy Power PLC (Ireland) | 1,240,558 | | 60,638 |
Starbucks Corp. | 692,768 | | 25,071 |
| | 261,783 |
Household Durables - 0.1% |
Newell Rubbermaid, Inc. | 198,000 | | 3,774 |
Internet & Catalog Retail - 0.2% |
Blue Nile, Inc. (a)(d) | 162,843 | | 9,282 |
Media - 10.3% |
CBS Corp. Class B | 940,398 | | 23,717 |
DreamWorks Animation SKG, Inc. Class A (a) | 494,909 | | 13,110 |
Interpublic Group of Companies, Inc. | 4,346,148 | | 51,067 |
JC Decaux SA (a) | 455,329 | | 15,910 |
Kabel Deutschland Holding AG (a) | 1,285,857 | | 80,365 |
The Walt Disney Co. | 2,343,400 | | 101,001 |
Time Warner, Inc. | 890,904 | | 33,730 |
Viacom, Inc. Class B (non-vtg.) | 841,413 | | 43,047 |
Virgin Media, Inc. (d) | 7,959,435 | | 240,853 |
| | 602,800 |
Multiline Retail - 1.1% |
PPR SA | 247,500 | | 44,267 |
Retail Ventures, Inc. (a) | 1,035,657 | | 21,262 |
| | 65,529 |
Specialty Retail - 4.8% |
Bed Bath & Beyond, Inc. (a) | 1,237,366 | | 69,441 |
DSW, Inc. Class A (a)(d) | 711,921 | | 33,802 |
Tiffany & Co., Inc. | 663,229 | | 46,055 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
TJX Companies, Inc. | 2,177,729 | | $ 116,770 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 327,859 | | 17,439 |
| | 283,507 |
Textiles, Apparel & Luxury Goods - 3.9% |
Coach, Inc. | 752,264 | | 44,993 |
Oxford Industries, Inc. | 798,060 | | 27,413 |
Phillips-Van Heusen Corp. | 859,100 | | 60,489 |
Polo Ralph Lauren Corp. Class A | 197,900 | | 25,879 |
Timberland Co. Class A (a) | 874,030 | | 39,497 |
VF Corp. | 331,266 | | 33,312 |
| | 231,583 |
TOTAL CONSUMER DISCRETIONARY | | 1,635,495 |
CONSUMER STAPLES - 5.6% |
Beverages - 0.5% |
Anheuser-Busch InBev SA NV (d) | 445,371 | | 28,424 |
Food & Staples Retailing - 1.1% |
Walgreen Co. | 1,237,335 | | 52,859 |
Whole Foods Market, Inc. | 198,031 | | 12,428 |
| | 65,287 |
Food Products - 0.4% |
Green Mountain Coffee Roasters, Inc. (a) | 316,779 | | 21,212 |
Household Products - 0.2% |
Colgate-Palmolive Co. | 148,500 | | 12,526 |
Personal Products - 0.6% |
Elizabeth Arden, Inc. (a) | 19,800 | | 595 |
Estee Lauder Companies, Inc. Class A | 297,001 | | 28,809 |
Nu Skin Enterprises, Inc. Class A | 121,955 | | 3,914 |
| | 33,318 |
Tobacco - 2.8% |
Altria Group, Inc. | 3,761,573 | | 100,961 |
Lorillard, Inc. | 415,718 | | 44,274 |
Reynolds American, Inc. | 593,957 | | 22,042 |
| | 167,277 |
TOTAL CONSUMER STAPLES | | 328,044 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - 13.8% |
Energy Equipment & Services - 4.2% |
Aker Drilling ASA (a) | 413,600 | | $ 1,419 |
Atwood Oceanics, Inc. (a) | 147,840 | | 6,642 |
Baker Hughes, Inc. | 643,398 | | 49,805 |
Compagnie Generale de Geophysique SA (a) | 841,446 | | 29,643 |
Dresser-Rand Group, Inc. (a) | 593,870 | | 31,202 |
National Oilwell Varco, Inc. | 910,731 | | 69,844 |
Oceaneering International, Inc. (a) | 40,333 | | 3,526 |
Oil States International, Inc. (a) | 48,162 | | 3,998 |
Transocean Ltd. (a) | 661,497 | | 48,124 |
| | 244,203 |
Oil, Gas & Consumable Fuels - 9.6% |
Chesapeake Energy Corp. | 890,840 | | 29,995 |
Chevron Corp. | 1,732,341 | | 189,587 |
Comstock Resources, Inc. (a)(d) | 593,900 | | 19,040 |
Gulfport Energy Corp. (a) | 334,300 | | 11,380 |
Occidental Petroleum Corp. | 1,070,406 | | 122,337 |
Repsol YPF SA | 791,793 | | 28,276 |
Royal Dutch Shell PLC Class A sponsored ADR | 1,781,546 | | 138,034 |
Stone Energy Corp. (a) | 593,915 | | 21,001 |
Whiting Petroleum Corp. (a) | 99,000 | | 6,881 |
| | 566,531 |
TOTAL ENERGY | | 810,734 |
FINANCIALS - 5.3% |
Capital Markets - 0.8% |
Janus Capital Group, Inc. | 1,977,543 | | 24,067 |
TD Ameritrade Holding Corp. | 1,039,700 | | 22,395 |
| | 46,462 |
Commercial Banks - 2.5% |
Comerica, Inc. | 1,672,303 | | 63,430 |
SVB Financial Group (a) | 590,894 | | 35,714 |
U.S. Bancorp, Delaware | 1,831,235 | | 47,282 |
| | 146,426 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Real Estate Management & Development - 2.0% |
CB Richard Ellis Group, Inc. Class A (a) | 3,630,573 | | $ 96,973 |
Jones Lang LaSalle, Inc. | 202,900 | | 20,773 |
| | 117,746 |
TOTAL FINANCIALS | | 310,634 |
HEALTH CARE - 4.9% |
Biotechnology - 2.3% |
Alexion Pharmaceuticals, Inc. (a) | 302,685 | | 29,327 |
Biogen Idec, Inc. (a) | 1,088,143 | | 105,931 |
| | 135,258 |
Health Care Equipment & Supplies - 1.4% |
C. R. Bard, Inc. | 188,100 | | 20,080 |
Edwards Lifesciences Corp. (a) | 712,600 | | 61,533 |
| | 81,613 |
Pharmaceuticals - 1.2% |
Novo Nordisk A/S Series B | 346,445 | | 43,859 |
Shire PLC | 989,900 | | 30,720 |
| | 74,579 |
TOTAL HEALTH CARE | | 291,450 |
INDUSTRIALS - 22.5% |
Aerospace & Defense - 2.6% |
Bombardier, Inc. Class B (sub. vtg.) | 2,969,500 | | 22,128 |
GeoEye, Inc. (a) | 415,416 | | 15,408 |
Textron, Inc. | 2,255,412 | | 58,866 |
United Technologies Corp. | 643,427 | | 57,638 |
| | 154,040 |
Air Freight & Logistics - 0.3% |
Air Transport Services Group, Inc. (a) | 1,976,893 | | 16,171 |
Airlines - 6.2% |
Ryanair Holdings PLC sponsored ADR | 517,206 | | 15,764 |
United Continental Holdings, Inc. (a)(d) | 12,569,652 | | 286,838 |
US Airways Group, Inc. (a)(d) | 7,086,883 | | 64,420 |
| | 367,022 |
Commercial Services & Supplies - 0.5% |
Stericycle, Inc. (a) | 306,839 | | 28,008 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 2.5% |
Fluor Corp. | 544,418 | | $ 38,077 |
Foster Wheeler AG (a) | 1,066,572 | | 37,938 |
Jacobs Engineering Group, Inc. (a) | 593,977 | | 29,467 |
Shaw Group, Inc. (a) | 1,050,712 | | 40,873 |
| | 146,355 |
Electrical Equipment - 1.7% |
Emerson Electric Co. | 989,892 | | 60,146 |
Rockwell Automation, Inc. | 459,500 | | 40,036 |
| | 100,182 |
Industrial Conglomerates - 2.2% |
General Electric Co. | 6,334,997 | | 129,551 |
Machinery - 3.7% |
3D Systems Corp. (a)(d) | 346,400 | | 14,452 |
Chart Industries, Inc. (a) | 442,572 | | 21,513 |
Danaher Corp. | 742,388 | | 41,010 |
Greenbrier Companies, Inc. (a) | 395,038 | | 10,694 |
Trinity Industries, Inc. | 784,949 | | 28,415 |
WABCO Holdings, Inc. (a) | 836,356 | | 61,765 |
Wabtec Corp. | 536,700 | | 38,310 |
| | 216,159 |
Professional Services - 0.9% |
IHS, Inc. Class A (a) | 564,313 | | 49,795 |
Road & Rail - 1.6% |
Union Pacific Corp. | 926,745 | | 95,890 |
Trading Companies & Distributors - 0.3% |
W.W. Grainger, Inc. | 126,440 | | 19,168 |
TOTAL INDUSTRIALS | | 1,322,341 |
INFORMATION TECHNOLOGY - 11.9% |
Communications Equipment - 2.2% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 16,828,400 | | 110,058 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 1,187,900 | | 18,056 |
| | 128,114 |
Computers & Peripherals - 3.9% |
Apple, Inc. (a) | 663,233 | | 230,958 |
Electronic Equipment & Components - 0.3% |
Amphenol Corp. Class A | 247,500 | | 13,838 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - 0.6% |
VeriSign, Inc. | 940,401 | | $ 34,757 |
IT Services - 1.4% |
Accenture PLC Class A | 525,205 | | 30,005 |
Cognizant Technology Solutions Corp. Class A (a) | 425,656 | | 35,287 |
Paychex, Inc. | 544,488 | | 17,810 |
| | 83,102 |
Software - 3.5% |
Ariba, Inc. (a) | 2,733,669 | | 95,050 |
FactSet Research Systems, Inc. | 185,478 | | 20,293 |
Intuit, Inc. (a) | 307,751 | | 17,099 |
Oracle Corp. | 1,484,723 | | 53,524 |
Rovi Corp. (a) | 445,425 | | 21,630 |
| | 207,596 |
TOTAL INFORMATION TECHNOLOGY | | 698,365 |
MATERIALS - 1.9% |
Containers & Packaging - 0.4% |
Silgan Holdings, Inc. | 494,892 | | 22,696 |
Metals & Mining - 1.5% |
United States Steel Corp. (d) | 1,831,378 | | 87,375 |
TOTAL MATERIALS | | 110,071 |
TELECOMMUNICATION SERVICES - 3.2% |
Diversified Telecommunication Services - 1.6% |
Iliad Group SA | 388,963 | | 50,002 |
Telenet Group Holding NV (d) | 873,707 | | 43,438 |
| | 93,440 |
Wireless Telecommunication Services - 1.6% |
Clearwire Corp. Class A (a)(d) | 4,783,479 | | 23,248 |
Millicom International Cellular SA | 298,500 | | 32,339 |
Vodafone Group PLC sponsored ADR | 1,385,855 | | 40,356 |
| | 95,943 |
TOTAL TELECOMMUNICATION SERVICES | | 189,383 |
TOTAL COMMON STOCKS (Cost $5,050,829) | 5,696,517 |
Money Market Funds - 9.7% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 245,156,385 | | $ 245,156 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 326,068,329 | | 326,068 |
TOTAL MONEY MARKET FUNDS (Cost $571,224) | 571,224 |
Cash Equivalents - 0.1% |
| Maturity Amount (000s) | | |
Investments in repurchase agreements in a joint trading account at 0.03%, dated 4/29/11 due 5/2/11 (Collateralized by U.S. Treasury Obligations) #
(Cost $2,262) | $ 2,262 | | 2,262 |
TOTAL INVESTMENT PORTFOLIO - 106.7% (Cost $5,624,315) | | 6,270,003 |
NET OTHER ASSETS (LIABILITIES) - (6.7)% | | (391,208) |
NET ASSETS - 100% | $ 5,878,795 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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. |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value
(000s) |
$2,262,000 due 5/02/11 at 0.03% |
BNP Paribas Securities Corp. | $ 1,135 |
Barclays Capital, Inc. | 604 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 523 |
| $ 2,262 |
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 | $ 264 |
Fidelity Securities Lending Cash Central Fund | 808 |
Total | $ 1,072 |
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 |
Transcend Services, Inc. | $ 10,894 | $ - | $ 11,679 | $ - | $ - |
US Airways Group, Inc. | 117,710 | 4,992 | 32,393 | - | - |
Total | $ 128,604 | $ 4,992 | $ 44,072 | $ - | $ - |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,635,495 | $ 1,635,495 | $ - | $ - |
Consumer Staples | 328,044 | 299,620 | 28,424 | - |
Energy | 810,734 | 781,091 | 29,643 | - |
Financials | 310,634 | 310,634 | - | - |
Health Care | 291,450 | 216,871 | 74,579 | - |
Industrials | 1,322,341 | 1,322,341 | - | - |
Information Technology | 698,365 | 698,365 | - | - |
Materials | 110,071 | 110,071 | - | - |
Telecommunication Services | 189,383 | 189,383 | - | - |
Money Market Funds | 571,224 | 571,224 | - | - |
Cash Equivalents | 2,262 | - | 2,262 | - |
Total Investments in Securities: | $ 6,270,003 | $ 6,135,095 | $ 134,908 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.9% |
France | 4.3% |
United Kingdom | 3.0% |
Ireland | 1.7% |
Switzerland | 1.4% |
Germany | 1.4% |
Belgium | 1.2% |
Others (Individually Less Than 1%) | 3.1% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $642,471,000 all of which will expire in fiscal 2016. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $319,881 and repurchase agreements of $2,262) - See accompanying schedule: Unaffiliated issuers (cost $5,053,091) | $ 5,698,779 | |
Fidelity Central Funds (cost $571,224) | 571,224 | |
Total Investments (cost $5,624,315) | | $ 6,270,003 |
Cash | | 1 |
Receivable for investments sold | | 82,553 |
Receivable for fund shares sold | | 3,702 |
Dividends receivable | | 2,128 |
Distributions receivable from Fidelity Central Funds | | 102 |
Prepaid expenses | | 5 |
Other receivables | | 486 |
Total assets | | 6,358,980 |
| | |
Liabilities | | |
Payable for investments purchased | $ 142,564 | |
Payable for fund shares redeemed | 7,154 | |
Accrued management fee | 3,248 | |
Other affiliated payables | 984 | |
Other payables and accrued expenses | 167 | |
Collateral on securities loaned, at value | 326,068 | |
Total liabilities | | 480,185 |
| | |
Net Assets | | $ 5,878,795 |
Net Assets consist of: | | |
Paid in capital | | $ 5,362,364 |
Distributions in excess of net investment income | | (3,359) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (125,950) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 645,740 |
Net Assets | | $ 5,878,795 |
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, 2011 (Unaudited) |
| | |
Capital Appreciation:
Net Asset Value, offering price and redemption price per share ($5,034,256 ÷ 184,204 shares) | | $ 27.33 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($844,539 ÷ 30,852 shares) | | $ 27.37 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 25,626 |
Interest | | 1 |
Income from Fidelity Central Funds | | 1,072 |
Total income | | 26,699 |
| | |
Expenses | | |
Management fee
Basic fee | $ 15,791 | |
Performance adjustment | 2,698 | |
Transfer agent fees | 5,387 | |
Accounting and security lending fees | 590 | |
Custodian fees and expenses | 87 | |
Independent trustees' compensation | 15 | |
Registration fees | 64 | |
Audit | 35 | |
Legal | 10 | |
Miscellaneous | 28 | |
Total expenses before reductions | 24,705 | |
Expense reductions | (456) | 24,249 |
Net investment income (loss) | | 2,450 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 522,262 | |
Other affiliated issuers | 8,311 | |
Foreign currency transactions | (25) | |
Total net realized gain (loss) | | 530,548 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 199,086 | |
Assets and liabilities in foreign currencies | 67 | |
Total change in net unrealized appreciation (depreciation) | | 199,153 |
Net gain (loss) | | 729,701 |
Net increase (decrease) in net assets resulting from operations | | $ 732,151 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,450 | $ 9,579 |
Net realized gain (loss) | 530,548 | 44,743 |
Change in net unrealized appreciation (depreciation) | 199,153 | 1,258,883 |
Net increase (decrease) in net assets resulting
from operations | 732,151 | 1,313,205 |
Distributions to shareholders from net investment income | (5,716) | (5,772) |
Share transactions - net increase (decrease) | (230,714) | (834,386) |
Total increase (decrease) in net assets | 495,721 | 473,047 |
| | |
Net Assets | | |
Beginning of period | 5,383,074 | 4,910,027 |
End of period (including distributions in excess of net investment income of $3,359 and distributions in excess of net investment income of $93, respectively) | $ 5,878,795 | $ 5,383,074 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Capital Appreciation
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 24.03 | $ 18.71 | $ 16.68 | $ 32.13 | $ 27.41 | $ 26.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | .04 | .04 | .16 | .11 | .10 |
Net realized and unrealized gain (loss) | 3.31 | 5.30 | 2.17 | (13.27) | 6.06 | 3.55 |
Total from investment operations | 3.32 | 5.34 | 2.21 | (13.11) | 6.17 | 3.65 |
Distributions from net investment income | (.02) | (.02) | (.18) | (.12) | (.11) | - |
Distributions from net realized gain | - | - | - | (2.22) | (1.34) | (2.46) |
Total distributions | (.02) | (.02) | (.18) | (2.34) | (1.45) | (2.46) |
Net asset value, end of period | $ 27.33 | $ 24.03 | $ 18.71 | $ 16.68 | $ 32.13 | $ 27.41 |
Total Return B,C | 13.82% | 28.57% | 13.54% | (43.80)% | 23.51% | 14.70% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | .89% A | .88% | .79% | .82% | .83% | .91% |
Expenses net of fee waivers, if any | .89% A | .88% | .79% | .82% | .83% | .91% |
Expenses net of all reductions | .88% A | .86% | .78% | .82% | .82% | .87% |
Net investment income (loss) | .06% A | .16% | .25% | .67% | .36% | .36% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 5,034 | $ 4,672 | $ 4,627 | $ 4,794 | $ 10,139 | $ 8,353 |
Portfolio turnover rate F | 209% A | 186% | 243% | 157% | 135% | 198% |
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.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 24.09 | $ 18.73 | $ 16.69 | $ 25.11 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .03 | .08 | .08 | .03 |
Net realized and unrealized gain (loss) | 3.31 | 5.31 | 2.18 | (8.45) |
Total from investment operations | 3.34 | 5.39 | 2.26 | (8.42) |
Distributions from net investment income | (.06) | (.03) | (.22) | - |
Net asset value, end of period | $ 27.37 | $ 24.09 | $ 18.73 | $ 16.69 |
Total Return B,C | 13.90% | 28.80% | 13.85% | (33.53)% |
Ratios to Average Net Assets E,H | | | | |
Expenses before reductions | .73% A | .70% | .55% | .66% A |
Expenses net of fee waivers, if any | .73% A | .70% | .55% | .66% A |
Expenses net of all reductions | .72% A | .68% | .54% | .65% A |
Net investment income (loss) | .22% A | .34% | .49% | .41% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 845 | $ 712 | $ 283 | $ 93 |
Portfolio turnover rate F | 209% A | 186% | 243% | 157% |
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.
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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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. 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
3. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 936,905 |
Gross unrealized depreciation | (299,808) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 637,097 |
| |
Tax cost | $ 5,632,906 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from 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 $5,614,094 and $5,819,747, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Capital Appreciation as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Capital Appreciation | $ 5,184 | .21 |
Class K | 203 | .05 |
| $ 5,387 | |
* 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 $339 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $10 and is reflected in Miscellaneous expenses 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
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $808, including $48 from securities loaned to FCM.
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 $456 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Capital Appreciation | $ 3,855 | $ 5,336 |
Class K | 1,861 | 436 |
Total | $ 5,716 | $ 5,772 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 | Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
Capital Appreciation | | | | |
Shares sold | 11,924 | 24,608 | $ 306,887 | $ 544,840 |
Reinvestment of distributions | 148 | 250 | 3,700 | 5,154 |
Shares redeemed | (22,310) | (77,678) | (575,273) | (1,707,314) |
Net increase (decrease) | (10,238) | (52,820) | $ (264,686) | $ (1,157,320) |
Class K | | | | |
Shares sold | 4,182 | 22,592 | $ 107,946 | $ 500,526 |
Reinvestment of distributions | 74 | 21 | 1,860 | 436 |
Shares redeemed | (2,944) | (8,191) | (75,834) | (178,028) |
Net increase (decrease) | 1,312 | 14,422 | $ 33,972 | $ 322,934 |
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 workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. 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 Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.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 distributions, 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)
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
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
Citibank, N.A.
New York, NY
CAF-K-USAN-0611
1.863092.102
Fidelity®
Disciplined Equity
Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Disciplined Equity | .59% | | | |
Actual | | $ 1,000.00 | $ 1,162.80 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.87 | $ 2.96 |
Class K | .43% | | | |
Actual | | $ 1,000.00 | $ 1,164.10 | $ 2.31 |
HypotheticalA | | $ 1,000.00 | $ 1,022.66 | $ 2.16 |
Class F | .38% | | | |
Actual | | $ 1,000.00 | $ 1,164.00 | $ 2.04 |
HypotheticalA | | $ 1,000.00 | $ 1,022.91 | $ 1.91 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Chevron Corp. | 4.6 | 4.4 |
JPMorgan Chase & Co. | 4.5 | 3.4 |
Exxon Mobil Corp. | 4.0 | 2.6 |
Hewlett-Packard Co. | 3.6 | 4.1 |
International Business Machines Corp. | 2.9 | 2.1 |
General Electric Co. | 2.8 | 2.3 |
Vodafone Group PLC sponsored ADR | 2.8 | 2.4 |
Goldman Sachs Group, Inc. | 2.7 | 3.0 |
Anheuser-Busch InBev SA NV | 2.6 | 3.0 |
Microsoft Corp. | 2.5 | 4.9 |
| 33.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 17.3 | 19.7 |
Financials | 14.9 | 14.4 |
Energy | 13.0 | 11.1 |
Consumer Discretionary | 11.4 | 10.6 |
Health Care | 11.3 | 11.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks 98.0% | | | Stocks 98.6% | |
| Short-Term
Investments and
Net Other Assets 2.0% | | | Short-Term
Investments and
Net Other Assets 1.4% | |
* Foreign investments | 16.3% | | ** Foreign investments | 13.6% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.3% |
Auto Components - 1.2% |
TRW Automotive Holdings Corp. (a) | 2,450,356 | | $ 139,817 |
Automobiles - 0.7% |
Bayerische Motoren Werke AG (BMW) | 900,000 | | 84,877 |
Hotels, Restaurants & Leisure - 1.4% |
Las Vegas Sands Corp. (a) | 3,500,000 | | 164,535 |
Internet & Catalog Retail - 1.0% |
Priceline.com, Inc. (a) | 220,000 | | 120,342 |
Media - 1.4% |
CBS Corp. Class B | 2,300,000 | | 58,006 |
Comcast Corp. Class A (special) (non-vtg.) | 2,900,000 | | 71,195 |
Interpublic Group of Companies, Inc. | 2,500,000 | | 29,375 |
| | 158,576 |
Multiline Retail - 1.0% |
Macy's, Inc. | 4,700,000 | | 112,377 |
Specialty Retail - 1.8% |
Best Buy Co., Inc. (d) | 5,600,000 | | 174,832 |
Limited Brands, Inc. | 900,000 | | 37,044 |
| | 211,876 |
Textiles, Apparel & Luxury Goods - 1.8% |
Phillips-Van Heusen Corp. | 1,520,000 | | 107,023 |
VF Corp. | 600,000 | | 60,336 |
Warnaco Group, Inc. (a) | 600,000 | | 38,616 |
| | 205,975 |
TOTAL CONSUMER DISCRETIONARY | | 1,198,375 |
CONSUMER STAPLES - 10.0% |
Beverages - 3.1% |
Anheuser-Busch InBev SA NV (d) | 4,738,240 | | 302,395 |
Dr Pepper Snapple Group, Inc. | 1,700,000 | | 66,640 |
| | 369,035 |
Food & Staples Retailing - 0.6% |
Wal-Mart Stores, Inc. | 1,200,000 | | 65,976 |
Household Products - 2.1% |
Procter & Gamble Co. | 3,800,000 | | 246,620 |
Personal Products - 0.3% |
Nu Skin Enterprises, Inc. Class A | 1,000,000 | | 32,090 |
Tobacco - 3.9% |
British American Tobacco PLC sponsored ADR (d) | 1,700,000 | | 149,940 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - continued |
Imperial Tobacco Group PLC | 900,000 | | $ 31,676 |
Philip Morris International, Inc. | 3,900,000 | | 270,816 |
| | 452,432 |
TOTAL CONSUMER STAPLES | | 1,166,153 |
ENERGY - 13.0% |
Energy Equipment & Services - 2.2% |
Halliburton Co. | 200,000 | | 10,096 |
National Oilwell Varco, Inc. | 1,846,100 | | 141,577 |
Rowan Companies, Inc. (a) | 700,000 | | 29,190 |
Transocean Ltd. (a) | 1,100,000 | | 80,025 |
| | 260,888 |
Oil, Gas & Consumable Fuels - 10.8% |
Chevron Corp. | 4,967,400 | | 543,634 |
Exxon Mobil Corp. | 5,256,880 | | 462,605 |
Marathon Oil Corp. | 2,100,000 | | 113,484 |
Tesoro Corp. (a) | 5,150,000 | | 139,668 |
| | 1,259,391 |
TOTAL ENERGY | | 1,520,279 |
FINANCIALS - 14.9% |
Capital Markets - 2.7% |
Goldman Sachs Group, Inc. | 2,050,000 | | 309,571 |
Commercial Banks - 2.4% |
Barclays PLC | 10,000,000 | | 47,542 |
HSBC Holdings PLC sponsored ADR | 2,300,000 | | 125,281 |
Wells Fargo & Co. | 3,500,000 | | 101,885 |
| | 274,708 |
Consumer Finance - 3.0% |
Capital One Financial Corp. | 4,300,000 | | 235,339 |
Discover Financial Services | 3,294,730 | | 81,841 |
SLM Corp. | 1,900,000 | | 31,521 |
| | 348,701 |
Diversified Financial Services - 6.4% |
Citigroup, Inc. (a) | 49,478,700 | | 227,107 |
JPMorgan Chase & Co. | 11,400,000 | | 520,182 |
| | 747,289 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.2% |
Lincoln National Corp. | 924,143 | | $ 28,861 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 1,100,000 | | 29,381 |
TOTAL FINANCIALS | | 1,738,511 |
HEALTH CARE - 11.3% |
Biotechnology - 3.0% |
Amgen, Inc. (a) | 2,874,000 | | 163,387 |
Biogen Idec, Inc. (a) | 1,000,000 | | 97,350 |
Cephalon, Inc. (a) | 1,098,000 | | 84,326 |
| | 345,063 |
Health Care Equipment & Supplies - 1.4% |
Boston Scientific Corp. (a) | 4,000,000 | | 29,960 |
Cooper Companies, Inc. | 600,000 | | 44,940 |
Covidien PLC | 1,600,000 | | 89,104 |
| | 164,004 |
Health Care Providers & Services - 2.3% |
Humana, Inc. | 3,500,000 | | 266,420 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 431,021 | | 30,594 |
Pharmaceuticals - 4.3% |
AstraZeneca PLC sponsored ADR (d) | 2,400,000 | | 119,592 |
Eli Lilly & Co. | 1,000,000 | | 37,010 |
Endo Pharmaceuticals Holdings, Inc. (a) | 740,561 | | 29,000 |
Johnson & Johnson | 2,200,000 | | 144,584 |
Pfizer, Inc. | 8,400,000 | | 176,064 |
| | 506,250 |
TOTAL HEALTH CARE | | 1,312,331 |
INDUSTRIALS - 10.9% |
Aerospace & Defense - 1.2% |
AerCap Holdings NV (a) | 900,000 | | 12,888 |
United Technologies Corp. | 1,400,000 | | 125,412 |
| | 138,300 |
Commercial Services & Supplies - 0.2% |
Schawk, Inc. Class A | 1,108,557 | | 20,907 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.4% |
KBR, Inc. | 3,400,000 | | $ 130,458 |
MasTec, Inc. (a) | 1,300,000 | | 29,484 |
| | 159,942 |
Electrical Equipment - 0.2% |
EnerSys (a) | 800,000 | | 30,312 |
Industrial Conglomerates - 2.8% |
General Electric Co. | 16,200,000 | | 331,290 |
Machinery - 2.6% |
Navistar International Corp. (a) | 200,000 | | 13,904 |
Pall Corp. | 2,900,000 | | 169,476 |
Timken Co. | 2,200,000 | | 124,058 |
| | 307,438 |
Road & Rail - 2.5% |
CSX Corp. | 3,652,400 | | 287,407 |
TOTAL INDUSTRIALS | | 1,275,596 |
INFORMATION TECHNOLOGY - 17.3% |
Communications Equipment - 0.8% |
HTC Corp. | 2,078,000 | | 94,175 |
Computers & Peripherals - 4.7% |
Hewlett-Packard Co. | 10,200,000 | | 411,774 |
Western Digital Corp. (a) | 3,300,000 | | 131,340 |
| | 543,114 |
Electronic Equipment & Components - 0.5% |
Arrow Electronics, Inc. (a) | 700,000 | | 31,913 |
Jabil Circuit, Inc. | 1,500,000 | | 29,760 |
| | 61,673 |
Internet Software & Services - 0.1% |
Facebook, Inc. Class B (a)(e) | 422,164 | | 10,554 |
IT Services - 3.7% |
Accenture PLC Class A | 500,000 | | 28,565 |
Alliance Data Systems Corp. (a)(d) | 600,000 | | 57,000 |
International Business Machines Corp. | 2,000,000 | | 341,160 |
Unisys Corp. (a) | 249,607 | | 7,408 |
| | 434,133 |
Semiconductors & Semiconductor Equipment - 3.9% |
Micron Technology, Inc. (a) | 20,905,400 | | 236,022 |
RF Micro Devices, Inc. (a) | 4,400,000 | | 29,304 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Samsung Electronics Co. Ltd. | 182,977 | | $ 152,923 |
Teradyne, Inc. (a) | 2,000,000 | | 32,200 |
| | 450,449 |
Software - 3.6% |
Microsoft Corp. | 11,100,000 | | 288,822 |
Oracle Corp. | 3,700,000 | | 133,385 |
| | 422,207 |
TOTAL INFORMATION TECHNOLOGY | | 2,016,305 |
MATERIALS - 3.9% |
Chemicals - 3.3% |
Ashland, Inc. | 1,700,000 | | 105,536 |
CF Industries Holdings, Inc. | 707,700 | | 100,175 |
Kraton Performance Polymers, Inc. (a) | 2,464,600 | | 113,766 |
LyondellBasell Industries NV Class A | 1,300,000 | | 57,850 |
| | 377,327 |
Metals & Mining - 0.6% |
Anglo American PLC (United Kingdom) | 1,400,000 | | 72,975 |
TOTAL MATERIALS | | 450,302 |
TELECOMMUNICATION SERVICES - 3.0% |
Wireless Telecommunication Services - 3.0% |
MetroPCS Communications, Inc. (a) | 1,528,600 | | 25,726 |
Vodafone Group PLC sponsored ADR | 11,132,300 | | 324,173 |
| | 349,899 |
UTILITIES - 2.3% |
Gas Utilities - 0.1% |
ONEOK, Inc. | 90,509 | | 6,330 |
Independent Power Producers & Energy Traders - 1.3% |
AES Corp. (a) | 11,674,600 | | 154,572 |
Multi-Utilities - 0.9% |
PG&E Corp. | 2,400,000 | | 110,592 |
TOTAL UTILITIES | | 271,494 |
TOTAL COMMON STOCKS (Cost $9,948,019) | 11,299,245 |
Nonconvertible Preferred Stocks - 1.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 1.1% |
Automobiles - 1.1% |
Volkswagen AG (d) | 622,900 | | $ 122,711 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $102,827) | 122,711 |
Money Market Funds - 6.0% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 131,756,659 | | 131,757 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 568,570,750 | | 568,571 |
TOTAL MONEY MARKET FUNDS (Cost $700,328) | 700,328 |
TOTAL INVESTMENT PORTFOLIO - 104.0% (Cost $10,751,174) | 12,122,284 |
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (462,487) |
NET ASSETS - 100% | $ 11,659,797 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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) 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 $10,554,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 10,554 |
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 | $ 114 |
Fidelity Securities Lending Cash Central Fund | 631 |
Total | $ 745 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,321,086 | $ 1,321,086 | $ - | $ - |
Consumer Staples | 1,166,153 | 863,758 | 302,395 | - |
Energy | 1,520,279 | 1,520,279 | - | - |
Financials | 1,738,511 | 1,690,969 | 47,542 | - |
Health Care | 1,312,331 | 1,312,331 | - | - |
Industrials | 1,275,596 | 1,275,596 | - | - |
Information Technology | 2,016,305 | 2,005,751 | - | 10,554 |
Materials | 450,302 | 450,302 | - | - |
Telecommunication Services | 349,899 | 349,899 | - | - |
Utilities | 271,494 | 271,494 | - | - |
Money Market Funds | 700,328 | 700,328 | - | - |
Total Investments in Securities: | $ 12,122,284 | $ 11,761,793 | $ 349,937 | $ 10,554 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 10,554 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,554 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.7% |
United Kingdom | 7.5% |
Belgium | 2.6% |
Germany | 1.8% |
Korea (South) | 1.3% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $2,872,513,000 of which $874,329,000 and $1,998,184,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $547,586) - See accompanying schedule: Unaffiliated issuers (cost $10,050,846) | $ 11,421,956 | |
Fidelity Central Funds (cost $700,328) | 700,328 | |
Total Investments (cost $10,751,174) | | $ 12,122,284 |
Foreign currency held at value (cost $568) | | 570 |
Receivable for investments sold | | 194,790 |
Receivable for fund shares sold | | 9,711 |
Dividends receivable | | 14,482 |
Distributions receivable from Fidelity Central Funds | | 590 |
Prepaid expenses | | 11 |
Other receivables | | 631 |
Total assets | | 12,343,069 |
| | |
Liabilities | | |
Payable for investments purchased | $ 106,919 | |
Payable for fund shares redeemed | 2,330 | |
Accrued management fee | 3,492 | |
Other affiliated payables | 1,654 | |
Other payables and accrued expenses | 306 | |
Collateral on securities loaned, at value | 568,571 | |
Total liabilities | | 683,272 |
| | |
Net Assets | | $ 11,659,797 |
Net Assets consist of: | | |
Paid in capital | | $ 12,341,941 |
Undistributed net investment income | | 24,945 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,078,257) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,371,168 |
Net Assets | | $ 11,659,797 |
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, 2011 (Unaudited) |
| | |
Disciplined Equity:
Net Asset Value, offering price and redemption price
per share ($9,265,957 ÷ 371,178 shares) | | $ 24.96 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($163,627 ÷ 6,554 shares) | | $ 24.97 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($2,230,213 ÷ 89,376 shares) | | $ 24.95 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 83,720 |
Interest | | 2 |
Income from Fidelity Central Funds | | 745 |
Total income | | 84,467 |
| | |
Expenses | | |
Management fee
Basic fee | $ 30,828 | |
Performance adjustment | (10,703) | |
Transfer agent fees | 9,609 | |
Accounting and security lending fees | 673 | |
Custodian fees and expenses | 192 | |
Independent trustees' compensation | 28 | |
Registration fees | 31 | |
Audit | 43 | |
Legal | 21 | |
Miscellaneous | 55 | |
Total expenses before reductions | 30,777 | |
Expense reductions | (766) | 30,011 |
Net investment income (loss) | | 54,456 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 854,060 | |
Foreign currency transactions | 50 | |
Total net realized gain (loss) | | 854,110 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 772,447 | |
Assets and liabilities in foreign currencies | 58 | |
Total change in net unrealized appreciation (depreciation) | | 772,505 |
Net gain (loss) | | 1,626,615 |
Net increase (decrease) in net assets resulting from operations | | $ 1,681,071 |
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, 2011 (Unaudited) | Year ended October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 54,456 | $ 93,970 |
Net realized gain (loss) | 854,110 | 1,049,236 |
Change in net unrealized appreciation (depreciation) | 772,505 | 1,045 |
Net increase (decrease) in net assets resulting
from operations | 1,681,071 | 1,144,251 |
Distributions to shareholders from net investment income | (105,872) | (121,330) |
Share transactions - net increase (decrease) | (357,845) | (1,369,605) |
Total increase (decrease) in net assets | 1,217,354 | (346,684) |
| | |
Net Assets | | |
Beginning of period | 10,442,443 | 10,789,127 |
End of period (including undistributed net investment income of $24,945 and undistributed net investment income of $76,361, respectively) | $ 11,659,797 | $ 10,442,443 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Disciplined Equity
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .18 | .24 | .29 | .27 | .22 |
Net realized and unrealized gain (loss) | 3.39 | 1.99 | .96 | (12.19) | 4.95 | 4.08 |
Total from investment operations | 3.50 | 2.17 | 1.20 | (11.90) | 5.22 | 4.30 |
Distributions from net investment income | (.21) | (.22) | (.26) | (.26) | (.19) | (.18) |
Distributions from net realized gain | - | - | - | (2.43) | (2.49) | - |
Total distributions | (.21) | (.22) | (.26) | (2.69) | (2.68) | (.18) |
Net asset value, end of period | $ 24.96 | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 |
Total Return B, C | 16.28% | 11.05% | 6.64% | (38.68)% | 18.42% | 16.16% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of fee waivers, if any | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of all reductions | .58% A | .68% | .83% | .87% | .90% | .91% |
Net investment income (loss) | .95% A | .85% | 1.37% | 1.10% | .88% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 9,266 | $ 8,943 | $ 10,530 | $ 9,804 | $ 11,482 | $ 7,694 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% | 152% | 98% |
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.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 18.79 | $ 27.38 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .13 | .22 | .28 | .12 |
Net realized and unrealized gain (loss) | 3.40 | 1.99 | .96 | (8.71) |
Total from investment operations | 3.53 | 2.21 | 1.24 | (8.59) |
Distributions from net investment income | (.25) | (.26) | (.29) | - |
Net asset value, end of period | $ 24.97 | $ 21.69 | $ 19.74 | $ 18.79 |
Total Return B, C | 16.41% | 11.25% | 6.92% | (31.37)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .43% A | .52% | .61% | .71% A |
Expenses net of fee waivers, if any | .43% A | .52% | .61% | .71% A |
Expenses net of all reductions | .42% A | .51% | .60% | .71% A |
Net investment income (loss) | 1.11% A | 1.03% | 1.59% | 1.30% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 164 | $ 141 | $ 184 | $ 49 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% |
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.
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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 17.52 |
Income from Investment Operations | | | |
Net investment income (loss) D | .13 | .22 | .02 |
Net realized and unrealized gain (loss) | 3.39 | 2.00 | 2.20 |
Total from investment operations | 3.52 | 2.22 | 2.22 |
Distributions from net investment income | (.26) | (.27) | - |
Net asset value, end of period | $ 24.95 | $ 21.69 | $ 19.74 |
Total Return B, C | 16.40% | 11.31% | 12.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .38% A | .47% | .50% A |
Expenses net of fee waivers, if any | .38% A | .47% | .50% A |
Expenses net of all reductions | .37% A | .45% | .49% A |
Net investment income (loss) | 1.16% A | 1.08% | .25% A |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2,230 | $ 1,359 | $ 75 |
Portfolio turnover rate F | 155% A | 146% | 200% |
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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to October 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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, Class K and Class F Shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. 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 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 FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value 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.
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
3. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,518,569 |
Gross unrealized depreciation | (187,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,330,588 |
Tax cost | $ 10,791,696 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,400,032 and $8,898,063, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Disciplined Equity as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .36% 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 receives no fees for providing transfer agency services to Class F. 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:
| Amount | % of
Average
Net Assets * |
Disciplined Equity | $ 9,567 | .21 |
Class K | 42 | .05 |
| $ 9,609 | |
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $338 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 16,382 | .43% | $ -* |
* Amount represents three hundred ninety dollars.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses 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
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $631, including thirty eight dollars from securities loaned to FCM. During the period, there were no securities loaned to FCM.
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 $766 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Disciplined Equity | $ 86,646 | $ 116,715 |
Class K | 1,698 | 2,464 |
Class F | 17,528 | 2,151 |
Total | $ 105,872 | $ 121,330 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Disciplined Equity | | | | |
Shares sold | 22,889 | 48,761 | $ 525,200 | $ 1,024,807 |
Reinvestment of distributions | 3,881 | 5,559 | 85,889 | 115,802 |
Shares redeemed | (68,335) | (175,504) | (1,576,218) | (3,680,202) |
Net increase (decrease) | (41,565) | (121,184) | $ (965,129) | $ (2,539,593) |
Class K | | | | |
Shares sold | 1,527 | 5,579 | $ 35,818 | $ 117,922 |
Reinvestment of distributions | 77 | 118 | 1,698 | 2,464 |
Shares redeemed | (1,552) | (8,493) | (37,538) | (175,735) |
Net increase (decrease) | 52 | (2,796) | $ (22) | $ (55,349) |
Class F | | | | |
Shares sold | 33,944 | 65,890 | $ 777,796 | $ 1,373,135 |
Reinvestment of distributions | 793 | 103 | 17,528 | 2,151 |
Shares redeemed | (8,025) | (7,147) | (188,018) | (149,949) |
Net increase (decrease) | 26,712 | 58,846 | $ 607,306 | $ 1,225,337 |
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 owners of record of approximately 16% and 14%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom and Freedom K Funds were owners of record, in aggregate, of approximately 76% 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 distributions, 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
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
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
State Street Bank and Trust Company
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FDE-USAN-0611
1.784913.108
Fidelity®
Disciplined Equity
Fund -
Class F
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
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
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Disciplined Equity | .59% | | | |
Actual | | $ 1,000.00 | $ 1,162.80 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.87 | $ 2.96 |
Class K | .43% | | | |
Actual | | $ 1,000.00 | $ 1,164.10 | $ 2.31 |
HypotheticalA | | $ 1,000.00 | $ 1,022.66 | $ 2.16 |
Class F | .38% | | | |
Actual | | $ 1,000.00 | $ 1,164.00 | $ 2.04 |
HypotheticalA | | $ 1,000.00 | $ 1,022.91 | $ 1.91 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Chevron Corp. | 4.6 | 4.4 |
JPMorgan Chase & Co. | 4.5 | 3.4 |
Exxon Mobil Corp. | 4.0 | 2.6 |
Hewlett-Packard Co. | 3.6 | 4.1 |
International Business Machines Corp. | 2.9 | 2.1 |
General Electric Co. | 2.8 | 2.3 |
Vodafone Group PLC sponsored ADR | 2.8 | 2.4 |
Goldman Sachs Group, Inc. | 2.7 | 3.0 |
Anheuser-Busch InBev SA NV | 2.6 | 3.0 |
Microsoft Corp. | 2.5 | 4.9 |
| 33.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 17.3 | 19.7 |
Financials | 14.9 | 14.4 |
Energy | 13.0 | 11.1 |
Consumer Discretionary | 11.4 | 10.6 |
Health Care | 11.3 | 11.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks 98.0% | | | Stocks 98.6% | |
| Short-Term
Investments and
Net Other Assets 2.0% | | | Short-Term
Investments and
Net Other Assets 1.4% | |
* Foreign investments | 16.3% | | ** Foreign investments | 13.6% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.3% |
Auto Components - 1.2% |
TRW Automotive Holdings Corp. (a) | 2,450,356 | | $ 139,817 |
Automobiles - 0.7% |
Bayerische Motoren Werke AG (BMW) | 900,000 | | 84,877 |
Hotels, Restaurants & Leisure - 1.4% |
Las Vegas Sands Corp. (a) | 3,500,000 | | 164,535 |
Internet & Catalog Retail - 1.0% |
Priceline.com, Inc. (a) | 220,000 | | 120,342 |
Media - 1.4% |
CBS Corp. Class B | 2,300,000 | | 58,006 |
Comcast Corp. Class A (special) (non-vtg.) | 2,900,000 | | 71,195 |
Interpublic Group of Companies, Inc. | 2,500,000 | | 29,375 |
| | 158,576 |
Multiline Retail - 1.0% |
Macy's, Inc. | 4,700,000 | | 112,377 |
Specialty Retail - 1.8% |
Best Buy Co., Inc. (d) | 5,600,000 | | 174,832 |
Limited Brands, Inc. | 900,000 | | 37,044 |
| | 211,876 |
Textiles, Apparel & Luxury Goods - 1.8% |
Phillips-Van Heusen Corp. | 1,520,000 | | 107,023 |
VF Corp. | 600,000 | | 60,336 |
Warnaco Group, Inc. (a) | 600,000 | | 38,616 |
| | 205,975 |
TOTAL CONSUMER DISCRETIONARY | | 1,198,375 |
CONSUMER STAPLES - 10.0% |
Beverages - 3.1% |
Anheuser-Busch InBev SA NV (d) | 4,738,240 | | 302,395 |
Dr Pepper Snapple Group, Inc. | 1,700,000 | | 66,640 |
| | 369,035 |
Food & Staples Retailing - 0.6% |
Wal-Mart Stores, Inc. | 1,200,000 | | 65,976 |
Household Products - 2.1% |
Procter & Gamble Co. | 3,800,000 | | 246,620 |
Personal Products - 0.3% |
Nu Skin Enterprises, Inc. Class A | 1,000,000 | | 32,090 |
Tobacco - 3.9% |
British American Tobacco PLC sponsored ADR (d) | 1,700,000 | | 149,940 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - continued |
Imperial Tobacco Group PLC | 900,000 | | $ 31,676 |
Philip Morris International, Inc. | 3,900,000 | | 270,816 |
| | 452,432 |
TOTAL CONSUMER STAPLES | | 1,166,153 |
ENERGY - 13.0% |
Energy Equipment & Services - 2.2% |
Halliburton Co. | 200,000 | | 10,096 |
National Oilwell Varco, Inc. | 1,846,100 | | 141,577 |
Rowan Companies, Inc. (a) | 700,000 | | 29,190 |
Transocean Ltd. (a) | 1,100,000 | | 80,025 |
| | 260,888 |
Oil, Gas & Consumable Fuels - 10.8% |
Chevron Corp. | 4,967,400 | | 543,634 |
Exxon Mobil Corp. | 5,256,880 | | 462,605 |
Marathon Oil Corp. | 2,100,000 | | 113,484 |
Tesoro Corp. (a) | 5,150,000 | | 139,668 |
| | 1,259,391 |
TOTAL ENERGY | | 1,520,279 |
FINANCIALS - 14.9% |
Capital Markets - 2.7% |
Goldman Sachs Group, Inc. | 2,050,000 | | 309,571 |
Commercial Banks - 2.4% |
Barclays PLC | 10,000,000 | | 47,542 |
HSBC Holdings PLC sponsored ADR | 2,300,000 | | 125,281 |
Wells Fargo & Co. | 3,500,000 | | 101,885 |
| | 274,708 |
Consumer Finance - 3.0% |
Capital One Financial Corp. | 4,300,000 | | 235,339 |
Discover Financial Services | 3,294,730 | | 81,841 |
SLM Corp. | 1,900,000 | | 31,521 |
| | 348,701 |
Diversified Financial Services - 6.4% |
Citigroup, Inc. (a) | 49,478,700 | | 227,107 |
JPMorgan Chase & Co. | 11,400,000 | | 520,182 |
| | 747,289 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.2% |
Lincoln National Corp. | 924,143 | | $ 28,861 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 1,100,000 | | 29,381 |
TOTAL FINANCIALS | | 1,738,511 |
HEALTH CARE - 11.3% |
Biotechnology - 3.0% |
Amgen, Inc. (a) | 2,874,000 | | 163,387 |
Biogen Idec, Inc. (a) | 1,000,000 | | 97,350 |
Cephalon, Inc. (a) | 1,098,000 | | 84,326 |
| | 345,063 |
Health Care Equipment & Supplies - 1.4% |
Boston Scientific Corp. (a) | 4,000,000 | | 29,960 |
Cooper Companies, Inc. | 600,000 | | 44,940 |
Covidien PLC | 1,600,000 | | 89,104 |
| | 164,004 |
Health Care Providers & Services - 2.3% |
Humana, Inc. | 3,500,000 | | 266,420 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 431,021 | | 30,594 |
Pharmaceuticals - 4.3% |
AstraZeneca PLC sponsored ADR (d) | 2,400,000 | | 119,592 |
Eli Lilly & Co. | 1,000,000 | | 37,010 |
Endo Pharmaceuticals Holdings, Inc. (a) | 740,561 | | 29,000 |
Johnson & Johnson | 2,200,000 | | 144,584 |
Pfizer, Inc. | 8,400,000 | | 176,064 |
| | 506,250 |
TOTAL HEALTH CARE | | 1,312,331 |
INDUSTRIALS - 10.9% |
Aerospace & Defense - 1.2% |
AerCap Holdings NV (a) | 900,000 | | 12,888 |
United Technologies Corp. | 1,400,000 | | 125,412 |
| | 138,300 |
Commercial Services & Supplies - 0.2% |
Schawk, Inc. Class A | 1,108,557 | | 20,907 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.4% |
KBR, Inc. | 3,400,000 | | $ 130,458 |
MasTec, Inc. (a) | 1,300,000 | | 29,484 |
| | 159,942 |
Electrical Equipment - 0.2% |
EnerSys (a) | 800,000 | | 30,312 |
Industrial Conglomerates - 2.8% |
General Electric Co. | 16,200,000 | | 331,290 |
Machinery - 2.6% |
Navistar International Corp. (a) | 200,000 | | 13,904 |
Pall Corp. | 2,900,000 | | 169,476 |
Timken Co. | 2,200,000 | | 124,058 |
| | 307,438 |
Road & Rail - 2.5% |
CSX Corp. | 3,652,400 | | 287,407 |
TOTAL INDUSTRIALS | | 1,275,596 |
INFORMATION TECHNOLOGY - 17.3% |
Communications Equipment - 0.8% |
HTC Corp. | 2,078,000 | | 94,175 |
Computers & Peripherals - 4.7% |
Hewlett-Packard Co. | 10,200,000 | | 411,774 |
Western Digital Corp. (a) | 3,300,000 | | 131,340 |
| | 543,114 |
Electronic Equipment & Components - 0.5% |
Arrow Electronics, Inc. (a) | 700,000 | | 31,913 |
Jabil Circuit, Inc. | 1,500,000 | | 29,760 |
| | 61,673 |
Internet Software & Services - 0.1% |
Facebook, Inc. Class B (a)(e) | 422,164 | | 10,554 |
IT Services - 3.7% |
Accenture PLC Class A | 500,000 | | 28,565 |
Alliance Data Systems Corp. (a)(d) | 600,000 | | 57,000 |
International Business Machines Corp. | 2,000,000 | | 341,160 |
Unisys Corp. (a) | 249,607 | | 7,408 |
| | 434,133 |
Semiconductors & Semiconductor Equipment - 3.9% |
Micron Technology, Inc. (a) | 20,905,400 | | 236,022 |
RF Micro Devices, Inc. (a) | 4,400,000 | | 29,304 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Samsung Electronics Co. Ltd. | 182,977 | | $ 152,923 |
Teradyne, Inc. (a) | 2,000,000 | | 32,200 |
| | 450,449 |
Software - 3.6% |
Microsoft Corp. | 11,100,000 | | 288,822 |
Oracle Corp. | 3,700,000 | | 133,385 |
| | 422,207 |
TOTAL INFORMATION TECHNOLOGY | | 2,016,305 |
MATERIALS - 3.9% |
Chemicals - 3.3% |
Ashland, Inc. | 1,700,000 | | 105,536 |
CF Industries Holdings, Inc. | 707,700 | | 100,175 |
Kraton Performance Polymers, Inc. (a) | 2,464,600 | | 113,766 |
LyondellBasell Industries NV Class A | 1,300,000 | | 57,850 |
| | 377,327 |
Metals & Mining - 0.6% |
Anglo American PLC (United Kingdom) | 1,400,000 | | 72,975 |
TOTAL MATERIALS | | 450,302 |
TELECOMMUNICATION SERVICES - 3.0% |
Wireless Telecommunication Services - 3.0% |
MetroPCS Communications, Inc. (a) | 1,528,600 | | 25,726 |
Vodafone Group PLC sponsored ADR | 11,132,300 | | 324,173 |
| | 349,899 |
UTILITIES - 2.3% |
Gas Utilities - 0.1% |
ONEOK, Inc. | 90,509 | | 6,330 |
Independent Power Producers & Energy Traders - 1.3% |
AES Corp. (a) | 11,674,600 | | 154,572 |
Multi-Utilities - 0.9% |
PG&E Corp. | 2,400,000 | | 110,592 |
TOTAL UTILITIES | | 271,494 |
TOTAL COMMON STOCKS (Cost $9,948,019) | 11,299,245 |
Nonconvertible Preferred Stocks - 1.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 1.1% |
Automobiles - 1.1% |
Volkswagen AG (d) | 622,900 | | $ 122,711 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $102,827) | 122,711 |
Money Market Funds - 6.0% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 131,756,659 | | 131,757 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 568,570,750 | | 568,571 |
TOTAL MONEY MARKET FUNDS (Cost $700,328) | 700,328 |
TOTAL INVESTMENT PORTFOLIO - 104.0% (Cost $10,751,174) | 12,122,284 |
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (462,487) |
NET ASSETS - 100% | $ 11,659,797 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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) 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 $10,554,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 10,554 |
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 | $ 114 |
Fidelity Securities Lending Cash Central Fund | 631 |
Total | $ 745 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,321,086 | $ 1,321,086 | $ - | $ - |
Consumer Staples | 1,166,153 | 863,758 | 302,395 | - |
Energy | 1,520,279 | 1,520,279 | - | - |
Financials | 1,738,511 | 1,690,969 | 47,542 | - |
Health Care | 1,312,331 | 1,312,331 | - | - |
Industrials | 1,275,596 | 1,275,596 | - | - |
Information Technology | 2,016,305 | 2,005,751 | - | 10,554 |
Materials | 450,302 | 450,302 | - | - |
Telecommunication Services | 349,899 | 349,899 | - | - |
Utilities | 271,494 | 271,494 | - | - |
Money Market Funds | 700,328 | 700,328 | - | - |
Total Investments in Securities: | $ 12,122,284 | $ 11,761,793 | $ 349,937 | $ 10,554 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 10,554 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,554 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.7% |
United Kingdom | 7.5% |
Belgium | 2.6% |
Germany | 1.8% |
Korea (South) | 1.3% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $2,872,513,000 of which $874,329,000 and $1,998,184,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $547,586) - See accompanying schedule: Unaffiliated issuers (cost $10,050,846) | $ 11,421,956 | |
Fidelity Central Funds (cost $700,328) | 700,328 | |
Total Investments (cost $10,751,174) | | $ 12,122,284 |
Foreign currency held at value (cost $568) | | 570 |
Receivable for investments sold | | 194,790 |
Receivable for fund shares sold | | 9,711 |
Dividends receivable | | 14,482 |
Distributions receivable from Fidelity Central Funds | | 590 |
Prepaid expenses | | 11 |
Other receivables | | 631 |
Total assets | | 12,343,069 |
| | |
Liabilities | | |
Payable for investments purchased | $ 106,919 | |
Payable for fund shares redeemed | 2,330 | |
Accrued management fee | 3,492 | |
Other affiliated payables | 1,654 | |
Other payables and accrued expenses | 306 | |
Collateral on securities loaned, at value | 568,571 | |
Total liabilities | | 683,272 |
| | |
Net Assets | | $ 11,659,797 |
Net Assets consist of: | | |
Paid in capital | | $ 12,341,941 |
Undistributed net investment income | | 24,945 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,078,257) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,371,168 |
Net Assets | | $ 11,659,797 |
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, 2011 (Unaudited) |
| | |
Disciplined Equity:
Net Asset Value, offering price and redemption price
per share ($9,265,957 ÷ 371,178 shares) | | $ 24.96 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($163,627 ÷ 6,554 shares) | | $ 24.97 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($2,230,213 ÷ 89,376 shares) | | $ 24.95 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 83,720 |
Interest | | 2 |
Income from Fidelity Central Funds | | 745 |
Total income | | 84,467 |
| | |
Expenses | | |
Management fee
Basic fee | $ 30,828 | |
Performance adjustment | (10,703) | |
Transfer agent fees | 9,609 | |
Accounting and security lending fees | 673 | |
Custodian fees and expenses | 192 | |
Independent trustees' compensation | 28 | |
Registration fees | 31 | |
Audit | 43 | |
Legal | 21 | |
Miscellaneous | 55 | |
Total expenses before reductions | 30,777 | |
Expense reductions | (766) | 30,011 |
Net investment income (loss) | | 54,456 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 854,060 | |
Foreign currency transactions | 50 | |
Total net realized gain (loss) | | 854,110 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 772,447 | |
Assets and liabilities in foreign currencies | 58 | |
Total change in net unrealized appreciation (depreciation) | | 772,505 |
Net gain (loss) | | 1,626,615 |
Net increase (decrease) in net assets resulting from operations | | $ 1,681,071 |
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, 2011 (Unaudited) | Year ended October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 54,456 | $ 93,970 |
Net realized gain (loss) | 854,110 | 1,049,236 |
Change in net unrealized appreciation (depreciation) | 772,505 | 1,045 |
Net increase (decrease) in net assets resulting
from operations | 1,681,071 | 1,144,251 |
Distributions to shareholders from net investment income | (105,872) | (121,330) |
Share transactions - net increase (decrease) | (357,845) | (1,369,605) |
Total increase (decrease) in net assets | 1,217,354 | (346,684) |
| | |
Net Assets | | |
Beginning of period | 10,442,443 | 10,789,127 |
End of period (including undistributed net investment income of $24,945 and undistributed net investment income of $76,361, respectively) | $ 11,659,797 | $ 10,442,443 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Disciplined Equity
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .18 | .24 | .29 | .27 | .22 |
Net realized and unrealized gain (loss) | 3.39 | 1.99 | .96 | (12.19) | 4.95 | 4.08 |
Total from investment operations | 3.50 | 2.17 | 1.20 | (11.90) | 5.22 | 4.30 |
Distributions from net investment income | (.21) | (.22) | (.26) | (.26) | (.19) | (.18) |
Distributions from net realized gain | - | - | - | (2.43) | (2.49) | - |
Total distributions | (.21) | (.22) | (.26) | (2.69) | (2.68) | (.18) |
Net asset value, end of period | $ 24.96 | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 |
Total Return B, C | 16.28% | 11.05% | 6.64% | (38.68)% | 18.42% | 16.16% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of fee waivers, if any | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of all reductions | .58% A | .68% | .83% | .87% | .90% | .91% |
Net investment income (loss) | .95% A | .85% | 1.37% | 1.10% | .88% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 9,266 | $ 8,943 | $ 10,530 | $ 9,804 | $ 11,482 | $ 7,694 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% | 152% | 98% |
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.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 18.79 | $ 27.38 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .13 | .22 | .28 | .12 |
Net realized and unrealized gain (loss) | 3.40 | 1.99 | .96 | (8.71) |
Total from investment operations | 3.53 | 2.21 | 1.24 | (8.59) |
Distributions from net investment income | (.25) | (.26) | (.29) | - |
Net asset value, end of period | $ 24.97 | $ 21.69 | $ 19.74 | $ 18.79 |
Total Return B, C | 16.41% | 11.25% | 6.92% | (31.37)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .43% A | .52% | .61% | .71% A |
Expenses net of fee waivers, if any | .43% A | .52% | .61% | .71% A |
Expenses net of all reductions | .42% A | .51% | .60% | .71% A |
Net investment income (loss) | 1.11% A | 1.03% | 1.59% | 1.30% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 164 | $ 141 | $ 184 | $ 49 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% |
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.
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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 17.52 |
Income from Investment Operations | | | |
Net investment income (loss) D | .13 | .22 | .02 |
Net realized and unrealized gain (loss) | 3.39 | 2.00 | 2.20 |
Total from investment operations | 3.52 | 2.22 | 2.22 |
Distributions from net investment income | (.26) | (.27) | - |
Net asset value, end of period | $ 24.95 | $ 21.69 | $ 19.74 |
Total Return B, C | 16.40% | 11.31% | 12.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .38% A | .47% | .50% A |
Expenses net of fee waivers, if any | .38% A | .47% | .50% A |
Expenses net of all reductions | .37% A | .45% | .49% A |
Net investment income (loss) | 1.16% A | 1.08% | .25% A |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2,230 | $ 1,359 | $ 75 |
Portfolio turnover rate F | 155% A | 146% | 200% |
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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to October 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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, Class K and Class F Shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. 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 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 FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value 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.
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
3. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,518,569 |
Gross unrealized depreciation | (187,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,330,588 |
Tax cost | $ 10,791,696 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,400,032 and $8,898,063, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Disciplined Equity as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .36% 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 receives no fees for providing transfer agency services to Class F. 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:
| Amount | % of
Average
Net Assets * |
Disciplined Equity | $ 9,567 | .21 |
Class K | 42 | .05 |
| $ 9,609 | |
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $338 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 16,382 | .43% | $ -* |
* Amount represents three hundred ninety dollars.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses 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
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $631, including thirty eight dollars from securities loaned to FCM. During the period, there were no securities loaned to FCM.
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 $766 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Disciplined Equity | $ 86,646 | $ 116,715 |
Class K | 1,698 | 2,464 |
Class F | 17,528 | 2,151 |
Total | $ 105,872 | $ 121,330 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Disciplined Equity | | | | |
Shares sold | 22,889 | 48,761 | $ 525,200 | $ 1,024,807 |
Reinvestment of distributions | 3,881 | 5,559 | 85,889 | 115,802 |
Shares redeemed | (68,335) | (175,504) | (1,576,218) | (3,680,202) |
Net increase (decrease) | (41,565) | (121,184) | $ (965,129) | $ (2,539,593) |
Class K | | | | |
Shares sold | 1,527 | 5,579 | $ 35,818 | $ 117,922 |
Reinvestment of distributions | 77 | 118 | 1,698 | 2,464 |
Shares redeemed | (1,552) | (8,493) | (37,538) | (175,735) |
Net increase (decrease) | 52 | (2,796) | $ (22) | $ (55,349) |
Class F | | | | |
Shares sold | 33,944 | 65,890 | $ 777,796 | $ 1,373,135 |
Reinvestment of distributions | 793 | 103 | 17,528 | 2,151 |
Shares redeemed | (8,025) | (7,147) | (188,018) | (149,949) |
Net increase (decrease) | 26,712 | 58,846 | $ 607,306 | $ 1,225,337 |
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 owners of record of approximately 16% and 14%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom and Freedom K Funds were owners of record, in aggregate, of approximately 76% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. 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 Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.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 distributions, 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)
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
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. (FIIOC)
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
FDE-F-SANN-0611
1.891699.101
Fidelity®
Disciplined Equity
Fund -
Class K
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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.
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Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Disciplined Equity | .59% | | | |
Actual | | $ 1,000.00 | $ 1,162.80 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.87 | $ 2.96 |
Class K | .43% | | | |
Actual | | $ 1,000.00 | $ 1,164.10 | $ 2.31 |
HypotheticalA | | $ 1,000.00 | $ 1,022.66 | $ 2.16 |
Class F | .38% | | | |
Actual | | $ 1,000.00 | $ 1,164.00 | $ 2.04 |
HypotheticalA | | $ 1,000.00 | $ 1,022.91 | $ 1.91 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Chevron Corp. | 4.6 | 4.4 |
JPMorgan Chase & Co. | 4.5 | 3.4 |
Exxon Mobil Corp. | 4.0 | 2.6 |
Hewlett-Packard Co. | 3.6 | 4.1 |
International Business Machines Corp. | 2.9 | 2.1 |
General Electric Co. | 2.8 | 2.3 |
Vodafone Group PLC sponsored ADR | 2.8 | 2.4 |
Goldman Sachs Group, Inc. | 2.7 | 3.0 |
Anheuser-Busch InBev SA NV | 2.6 | 3.0 |
Microsoft Corp. | 2.5 | 4.9 |
| 33.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 17.3 | 19.7 |
Financials | 14.9 | 14.4 |
Energy | 13.0 | 11.1 |
Consumer Discretionary | 11.4 | 10.6 |
Health Care | 11.3 | 11.5 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks 98.0% | | | Stocks 98.6% | |
| Short-Term
Investments and
Net Other Assets 2.0% | | | Short-Term
Investments and
Net Other Assets 1.4% | |
* Foreign investments | 16.3% | | ** Foreign investments | 13.6% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 10.3% |
Auto Components - 1.2% |
TRW Automotive Holdings Corp. (a) | 2,450,356 | | $ 139,817 |
Automobiles - 0.7% |
Bayerische Motoren Werke AG (BMW) | 900,000 | | 84,877 |
Hotels, Restaurants & Leisure - 1.4% |
Las Vegas Sands Corp. (a) | 3,500,000 | | 164,535 |
Internet & Catalog Retail - 1.0% |
Priceline.com, Inc. (a) | 220,000 | | 120,342 |
Media - 1.4% |
CBS Corp. Class B | 2,300,000 | | 58,006 |
Comcast Corp. Class A (special) (non-vtg.) | 2,900,000 | | 71,195 |
Interpublic Group of Companies, Inc. | 2,500,000 | | 29,375 |
| | 158,576 |
Multiline Retail - 1.0% |
Macy's, Inc. | 4,700,000 | | 112,377 |
Specialty Retail - 1.8% |
Best Buy Co., Inc. (d) | 5,600,000 | | 174,832 |
Limited Brands, Inc. | 900,000 | | 37,044 |
| | 211,876 |
Textiles, Apparel & Luxury Goods - 1.8% |
Phillips-Van Heusen Corp. | 1,520,000 | | 107,023 |
VF Corp. | 600,000 | | 60,336 |
Warnaco Group, Inc. (a) | 600,000 | | 38,616 |
| | 205,975 |
TOTAL CONSUMER DISCRETIONARY | | 1,198,375 |
CONSUMER STAPLES - 10.0% |
Beverages - 3.1% |
Anheuser-Busch InBev SA NV (d) | 4,738,240 | | 302,395 |
Dr Pepper Snapple Group, Inc. | 1,700,000 | | 66,640 |
| | 369,035 |
Food & Staples Retailing - 0.6% |
Wal-Mart Stores, Inc. | 1,200,000 | | 65,976 |
Household Products - 2.1% |
Procter & Gamble Co. | 3,800,000 | | 246,620 |
Personal Products - 0.3% |
Nu Skin Enterprises, Inc. Class A | 1,000,000 | | 32,090 |
Tobacco - 3.9% |
British American Tobacco PLC sponsored ADR (d) | 1,700,000 | | 149,940 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Tobacco - continued |
Imperial Tobacco Group PLC | 900,000 | | $ 31,676 |
Philip Morris International, Inc. | 3,900,000 | | 270,816 |
| | 452,432 |
TOTAL CONSUMER STAPLES | | 1,166,153 |
ENERGY - 13.0% |
Energy Equipment & Services - 2.2% |
Halliburton Co. | 200,000 | | 10,096 |
National Oilwell Varco, Inc. | 1,846,100 | | 141,577 |
Rowan Companies, Inc. (a) | 700,000 | | 29,190 |
Transocean Ltd. (a) | 1,100,000 | | 80,025 |
| | 260,888 |
Oil, Gas & Consumable Fuels - 10.8% |
Chevron Corp. | 4,967,400 | | 543,634 |
Exxon Mobil Corp. | 5,256,880 | | 462,605 |
Marathon Oil Corp. | 2,100,000 | | 113,484 |
Tesoro Corp. (a) | 5,150,000 | | 139,668 |
| | 1,259,391 |
TOTAL ENERGY | | 1,520,279 |
FINANCIALS - 14.9% |
Capital Markets - 2.7% |
Goldman Sachs Group, Inc. | 2,050,000 | | 309,571 |
Commercial Banks - 2.4% |
Barclays PLC | 10,000,000 | | 47,542 |
HSBC Holdings PLC sponsored ADR | 2,300,000 | | 125,281 |
Wells Fargo & Co. | 3,500,000 | | 101,885 |
| | 274,708 |
Consumer Finance - 3.0% |
Capital One Financial Corp. | 4,300,000 | | 235,339 |
Discover Financial Services | 3,294,730 | | 81,841 |
SLM Corp. | 1,900,000 | | 31,521 |
| | 348,701 |
Diversified Financial Services - 6.4% |
Citigroup, Inc. (a) | 49,478,700 | | 227,107 |
JPMorgan Chase & Co. | 11,400,000 | | 520,182 |
| | 747,289 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.2% |
Lincoln National Corp. | 924,143 | | $ 28,861 |
Real Estate Management & Development - 0.2% |
CB Richard Ellis Group, Inc. Class A (a) | 1,100,000 | | 29,381 |
TOTAL FINANCIALS | | 1,738,511 |
HEALTH CARE - 11.3% |
Biotechnology - 3.0% |
Amgen, Inc. (a) | 2,874,000 | | 163,387 |
Biogen Idec, Inc. (a) | 1,000,000 | | 97,350 |
Cephalon, Inc. (a) | 1,098,000 | | 84,326 |
| | 345,063 |
Health Care Equipment & Supplies - 1.4% |
Boston Scientific Corp. (a) | 4,000,000 | | 29,960 |
Cooper Companies, Inc. | 600,000 | | 44,940 |
Covidien PLC | 1,600,000 | | 89,104 |
| | 164,004 |
Health Care Providers & Services - 2.3% |
Humana, Inc. | 3,500,000 | | 266,420 |
Life Sciences Tools & Services - 0.3% |
Illumina, Inc. (a) | 431,021 | | 30,594 |
Pharmaceuticals - 4.3% |
AstraZeneca PLC sponsored ADR (d) | 2,400,000 | | 119,592 |
Eli Lilly & Co. | 1,000,000 | | 37,010 |
Endo Pharmaceuticals Holdings, Inc. (a) | 740,561 | | 29,000 |
Johnson & Johnson | 2,200,000 | | 144,584 |
Pfizer, Inc. | 8,400,000 | | 176,064 |
| | 506,250 |
TOTAL HEALTH CARE | | 1,312,331 |
INDUSTRIALS - 10.9% |
Aerospace & Defense - 1.2% |
AerCap Holdings NV (a) | 900,000 | | 12,888 |
United Technologies Corp. | 1,400,000 | | 125,412 |
| | 138,300 |
Commercial Services & Supplies - 0.2% |
Schawk, Inc. Class A | 1,108,557 | | 20,907 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.4% |
KBR, Inc. | 3,400,000 | | $ 130,458 |
MasTec, Inc. (a) | 1,300,000 | | 29,484 |
| | 159,942 |
Electrical Equipment - 0.2% |
EnerSys (a) | 800,000 | | 30,312 |
Industrial Conglomerates - 2.8% |
General Electric Co. | 16,200,000 | | 331,290 |
Machinery - 2.6% |
Navistar International Corp. (a) | 200,000 | | 13,904 |
Pall Corp. | 2,900,000 | | 169,476 |
Timken Co. | 2,200,000 | | 124,058 |
| | 307,438 |
Road & Rail - 2.5% |
CSX Corp. | 3,652,400 | | 287,407 |
TOTAL INDUSTRIALS | | 1,275,596 |
INFORMATION TECHNOLOGY - 17.3% |
Communications Equipment - 0.8% |
HTC Corp. | 2,078,000 | | 94,175 |
Computers & Peripherals - 4.7% |
Hewlett-Packard Co. | 10,200,000 | | 411,774 |
Western Digital Corp. (a) | 3,300,000 | | 131,340 |
| | 543,114 |
Electronic Equipment & Components - 0.5% |
Arrow Electronics, Inc. (a) | 700,000 | | 31,913 |
Jabil Circuit, Inc. | 1,500,000 | | 29,760 |
| | 61,673 |
Internet Software & Services - 0.1% |
Facebook, Inc. Class B (a)(e) | 422,164 | | 10,554 |
IT Services - 3.7% |
Accenture PLC Class A | 500,000 | | 28,565 |
Alliance Data Systems Corp. (a)(d) | 600,000 | | 57,000 |
International Business Machines Corp. | 2,000,000 | | 341,160 |
Unisys Corp. (a) | 249,607 | | 7,408 |
| | 434,133 |
Semiconductors & Semiconductor Equipment - 3.9% |
Micron Technology, Inc. (a) | 20,905,400 | | 236,022 |
RF Micro Devices, Inc. (a) | 4,400,000 | | 29,304 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Samsung Electronics Co. Ltd. | 182,977 | | $ 152,923 |
Teradyne, Inc. (a) | 2,000,000 | | 32,200 |
| | 450,449 |
Software - 3.6% |
Microsoft Corp. | 11,100,000 | | 288,822 |
Oracle Corp. | 3,700,000 | | 133,385 |
| | 422,207 |
TOTAL INFORMATION TECHNOLOGY | | 2,016,305 |
MATERIALS - 3.9% |
Chemicals - 3.3% |
Ashland, Inc. | 1,700,000 | | 105,536 |
CF Industries Holdings, Inc. | 707,700 | | 100,175 |
Kraton Performance Polymers, Inc. (a) | 2,464,600 | | 113,766 |
LyondellBasell Industries NV Class A | 1,300,000 | | 57,850 |
| | 377,327 |
Metals & Mining - 0.6% |
Anglo American PLC (United Kingdom) | 1,400,000 | | 72,975 |
TOTAL MATERIALS | | 450,302 |
TELECOMMUNICATION SERVICES - 3.0% |
Wireless Telecommunication Services - 3.0% |
MetroPCS Communications, Inc. (a) | 1,528,600 | | 25,726 |
Vodafone Group PLC sponsored ADR | 11,132,300 | | 324,173 |
| | 349,899 |
UTILITIES - 2.3% |
Gas Utilities - 0.1% |
ONEOK, Inc. | 90,509 | | 6,330 |
Independent Power Producers & Energy Traders - 1.3% |
AES Corp. (a) | 11,674,600 | | 154,572 |
Multi-Utilities - 0.9% |
PG&E Corp. | 2,400,000 | | 110,592 |
TOTAL UTILITIES | | 271,494 |
TOTAL COMMON STOCKS (Cost $9,948,019) | 11,299,245 |
Nonconvertible Preferred Stocks - 1.1% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 1.1% |
Automobiles - 1.1% |
Volkswagen AG (d) | 622,900 | | $ 122,711 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $102,827) | 122,711 |
Money Market Funds - 6.0% |
| | | |
Fidelity Cash Central Fund, 0.13% (b) | 131,756,659 | | 131,757 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 568,570,750 | | 568,571 |
TOTAL MONEY MARKET FUNDS (Cost $700,328) | 700,328 |
TOTAL INVESTMENT PORTFOLIO - 104.0% (Cost $10,751,174) | 12,122,284 |
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (462,487) |
NET ASSETS - 100% | $ 11,659,797 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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) 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 $10,554,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Facebook, Inc. Class B | 3/31/11 | $ 10,554 |
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 | $ 114 |
Fidelity Securities Lending Cash Central Fund | 631 |
Total | $ 745 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,321,086 | $ 1,321,086 | $ - | $ - |
Consumer Staples | 1,166,153 | 863,758 | 302,395 | - |
Energy | 1,520,279 | 1,520,279 | - | - |
Financials | 1,738,511 | 1,690,969 | 47,542 | - |
Health Care | 1,312,331 | 1,312,331 | - | - |
Industrials | 1,275,596 | 1,275,596 | - | - |
Information Technology | 2,016,305 | 2,005,751 | - | 10,554 |
Materials | 450,302 | 450,302 | - | - |
Telecommunication Services | 349,899 | 349,899 | - | - |
Utilities | 271,494 | 271,494 | - | - |
Money Market Funds | 700,328 | 700,328 | - | - |
Total Investments in Securities: | $ 12,122,284 | $ 11,761,793 | $ 349,937 | $ 10,554 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 10,554 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 10,554 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.7% |
United Kingdom | 7.5% |
Belgium | 2.6% |
Germany | 1.8% |
Korea (South) | 1.3% |
Ireland | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $2,872,513,000 of which $874,329,000 and $1,998,184,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $547,586) - See accompanying schedule: Unaffiliated issuers (cost $10,050,846) | $ 11,421,956 | |
Fidelity Central Funds (cost $700,328) | 700,328 | |
Total Investments (cost $10,751,174) | | $ 12,122,284 |
Foreign currency held at value (cost $568) | | 570 |
Receivable for investments sold | | 194,790 |
Receivable for fund shares sold | | 9,711 |
Dividends receivable | | 14,482 |
Distributions receivable from Fidelity Central Funds | | 590 |
Prepaid expenses | | 11 |
Other receivables | | 631 |
Total assets | | 12,343,069 |
| | |
Liabilities | | |
Payable for investments purchased | $ 106,919 | |
Payable for fund shares redeemed | 2,330 | |
Accrued management fee | 3,492 | |
Other affiliated payables | 1,654 | |
Other payables and accrued expenses | 306 | |
Collateral on securities loaned, at value | 568,571 | |
Total liabilities | | 683,272 |
| | |
Net Assets | | $ 11,659,797 |
Net Assets consist of: | | |
Paid in capital | | $ 12,341,941 |
Undistributed net investment income | | 24,945 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,078,257) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,371,168 |
Net Assets | | $ 11,659,797 |
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, 2011 (Unaudited) |
| | |
Disciplined Equity:
Net Asset Value, offering price and redemption price
per share ($9,265,957 ÷ 371,178 shares) | | $ 24.96 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($163,627 ÷ 6,554 shares) | | $ 24.97 |
| | |
Class F:
Net Asset Value, offering price and redemption price per share ($2,230,213 ÷ 89,376 shares) | | $ 24.95 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 83,720 |
Interest | | 2 |
Income from Fidelity Central Funds | | 745 |
Total income | | 84,467 |
| | |
Expenses | | |
Management fee
Basic fee | $ 30,828 | |
Performance adjustment | (10,703) | |
Transfer agent fees | 9,609 | |
Accounting and security lending fees | 673 | |
Custodian fees and expenses | 192 | |
Independent trustees' compensation | 28 | |
Registration fees | 31 | |
Audit | 43 | |
Legal | 21 | |
Miscellaneous | 55 | |
Total expenses before reductions | 30,777 | |
Expense reductions | (766) | 30,011 |
Net investment income (loss) | | 54,456 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 854,060 | |
Foreign currency transactions | 50 | |
Total net realized gain (loss) | | 854,110 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 772,447 | |
Assets and liabilities in foreign currencies | 58 | |
Total change in net unrealized appreciation (depreciation) | | 772,505 |
Net gain (loss) | | 1,626,615 |
Net increase (decrease) in net assets resulting from operations | | $ 1,681,071 |
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, 2011 (Unaudited) | Year ended October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 54,456 | $ 93,970 |
Net realized gain (loss) | 854,110 | 1,049,236 |
Change in net unrealized appreciation (depreciation) | 772,505 | 1,045 |
Net increase (decrease) in net assets resulting
from operations | 1,681,071 | 1,144,251 |
Distributions to shareholders from net investment income | (105,872) | (121,330) |
Share transactions - net increase (decrease) | (357,845) | (1,369,605) |
Total increase (decrease) in net assets | 1,217,354 | (346,684) |
| | |
Net Assets | | |
Beginning of period | 10,442,443 | 10,789,127 |
End of period (including undistributed net investment income of $24,945 and undistributed net investment income of $76,361, respectively) | $ 11,659,797 | $ 10,442,443 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Disciplined Equity
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 | $ 26.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .11 | .18 | .24 | .29 | .27 | .22 |
Net realized and unrealized gain (loss) | 3.39 | 1.99 | .96 | (12.19) | 4.95 | 4.08 |
Total from investment operations | 3.50 | 2.17 | 1.20 | (11.90) | 5.22 | 4.30 |
Distributions from net investment income | (.21) | (.22) | (.26) | (.26) | (.19) | (.18) |
Distributions from net realized gain | - | - | - | (2.43) | (2.49) | - |
Total distributions | (.21) | (.22) | (.26) | (2.69) | (2.68) | (.18) |
Net asset value, end of period | $ 24.96 | $ 21.67 | $ 19.72 | $ 18.78 | $ 33.37 | $ 30.83 |
Total Return B, C | 16.28% | 11.05% | 6.64% | (38.68)% | 18.42% | 16.16% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of fee waivers, if any | .59% A | .70% | .84% | .87% | .91% | .92% |
Expenses net of all reductions | .58% A | .68% | .83% | .87% | .90% | .91% |
Net investment income (loss) | .95% A | .85% | 1.37% | 1.10% | .88% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 9,266 | $ 8,943 | $ 10,530 | $ 9,804 | $ 11,482 | $ 7,694 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% | 152% | 98% |
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.
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 18.79 | $ 27.38 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .13 | .22 | .28 | .12 |
Net realized and unrealized gain (loss) | 3.40 | 1.99 | .96 | (8.71) |
Total from investment operations | 3.53 | 2.21 | 1.24 | (8.59) |
Distributions from net investment income | (.25) | (.26) | (.29) | - |
Net asset value, end of period | $ 24.97 | $ 21.69 | $ 19.74 | $ 18.79 |
Total Return B, C | 16.41% | 11.25% | 6.92% | (31.37)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .43% A | .52% | .61% | .71% A |
Expenses net of fee waivers, if any | .43% A | .52% | .61% | .71% A |
Expenses net of all reductions | .42% A | .51% | .60% | .71% A |
Net investment income (loss) | 1.11% A | 1.03% | 1.59% | 1.30% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 164 | $ 141 | $ 184 | $ 49 |
Portfolio turnover rate F | 155% A | 146% | 200% | 186% |
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.
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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class F
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 G |
Selected Per-Share Data | | | |
Net asset value, beginning of period | $ 21.69 | $ 19.74 | $ 17.52 |
Income from Investment Operations | | | |
Net investment income (loss) D | .13 | .22 | .02 |
Net realized and unrealized gain (loss) | 3.39 | 2.00 | 2.20 |
Total from investment operations | 3.52 | 2.22 | 2.22 |
Distributions from net investment income | (.26) | (.27) | - |
Net asset value, end of period | $ 24.95 | $ 21.69 | $ 19.74 |
Total Return B, C | 16.40% | 11.31% | 12.67% |
Ratios to Average Net Assets E, H | | | |
Expenses before reductions | .38% A | .47% | .50% A |
Expenses net of fee waivers, if any | .38% A | .47% | .50% A |
Expenses net of all reductions | .37% A | .45% | .49% A |
Net investment income (loss) | 1.16% A | 1.08% | .25% A |
Supplemental Data | | | |
Net assets, end of period (in millions) | $ 2,230 | $ 1,359 | $ 75 |
Portfolio turnover rate F | 155% A | 146% | 200% |
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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 26, 2009 (commencement of sale of shares) to October 31, 2009.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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, Class K and Class F Shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class F shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as investment manager. 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 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 FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value 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.
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
3. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,518,569 |
Gross unrealized depreciation | (187,981) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,330,588 |
Tax cost | $ 10,791,696 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,400,032 and $8,898,063, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Disciplined Equity as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .36% 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 receives no fees for providing transfer agency services to Class F. 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:
| Amount | % of
Average
Net Assets * |
Disciplined Equity | $ 9,567 | .21 |
Class K | 42 | .05 |
| $ 9,609 | |
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $338 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $ 16,382 | .43% | $ -* |
* Amount represents three hundred ninety dollars.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $19 and is reflected in Miscellaneous expenses 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
(Amounts in thousands except ratios)
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $631, including thirty eight dollars from securities loaned to FCM. During the period, there were no securities loaned to FCM.
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 $766 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2011 | Year ended
October 31, 2010 |
From net investment income | | |
Disciplined Equity | $ 86,646 | $ 116,715 |
Class K | 1,698 | 2,464 |
Class F | 17,528 | 2,151 |
Total | $ 105,872 | $ 121,330 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Disciplined Equity | | | | |
Shares sold | 22,889 | 48,761 | $ 525,200 | $ 1,024,807 |
Reinvestment of distributions | 3,881 | 5,559 | 85,889 | 115,802 |
Shares redeemed | (68,335) | (175,504) | (1,576,218) | (3,680,202) |
Net increase (decrease) | (41,565) | (121,184) | $ (965,129) | $ (2,539,593) |
Class K | | | | |
Shares sold | 1,527 | 5,579 | $ 35,818 | $ 117,922 |
Reinvestment of distributions | 77 | 118 | 1,698 | 2,464 |
Shares redeemed | (1,552) | (8,493) | (37,538) | (175,735) |
Net increase (decrease) | 52 | (2,796) | $ (22) | $ (55,349) |
Class F | | | | |
Shares sold | 33,944 | 65,890 | $ 777,796 | $ 1,373,135 |
Reinvestment of distributions | 793 | 103 | 17,528 | 2,151 |
Shares redeemed | (8,025) | (7,147) | (188,018) | (149,949) |
Net increase (decrease) | 26,712 | 58,846 | $ 607,306 | $ 1,225,337 |
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 owners of record of approximately 16% and 14%, respectively, of the total outstanding shares of the Fund. The Fidelity Freedom and Freedom K Funds were owners of record, in aggregate, of approximately 76% of the total outstanding shares of the Fund.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. 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 Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.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 distributions, 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)
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
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. (FIIOC)
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
FDE-K-USAN-0611
1.863078.102
Fidelity®
Focused Stock
Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Actual | .99% | $ 1,000.00 | $ 1,231.60 | $ 5.48 |
Hypothetical (5% return per year before expenses) | | $ 1,000.00 | $ 1,019.89 | $ 4.96 |
* 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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Alcatel-Lucent SA sponsored ADR | 4.8 | 0.0 |
Lincoln National Corp. | 4.4 | 0.0 |
Estee Lauder Companies, Inc. Class A | 4.2 | 4.9 |
Exxon Mobil Corp. | 4.0 | 4.5 |
Perrigo Co. | 3.2 | 3.9 |
Intuit, Inc. | 3.0 | 0.0 |
Apple, Inc. | 2.8 | 3.7 |
Edwards Lifesciences Corp. | 2.6 | 3.8 |
TJX Companies, Inc. | 2.5 | 0.0 |
Informatica Corp. | 2.5 | 1.9 |
| 34.0 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 21.1 | 32.7 |
Health Care | 18.8 | 9.5 |
Energy | 18.2 | 8.6 |
Consumer Discretionary | 17.4 | 12.2 |
Financials | 9.4 | 5.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks 99.3% | | | Stocks 97.7% | |
| Short-Term
Investments and
Net Other Assets 0.7% | | | Short-Term
Investments and
Net Other Assets 2.3% | |
* Foreign investments | 15.6% | | ** Foreign investments | 6.2% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 17.4% |
Automobiles - 1.7% |
Bayerische Motoren Werke AG (BMW) | 85,000 | | $ 8,016,180 |
Diversified Consumer Services - 1.3% |
Weight Watchers International, Inc. | 80,000 | | 6,220,000 |
Hotels, Restaurants & Leisure - 2.3% |
Starbucks Corp. | 297,000 | | 10,748,430 |
Household Durables - 1.2% |
iRobot Corp. (a) | 162,777 | | 5,765,561 |
Internet & Catalog Retail - 1.7% |
Amazon.com, Inc. (a) | 39,000 | | 7,663,500 |
Media - 1.8% |
Sirius XM Radio, Inc. (a)(d) | 4,080,000 | | 8,119,200 |
Specialty Retail - 3.9% |
DSW, Inc. Class A (a)(d) | 139,800 | | 6,637,704 |
TJX Companies, Inc. | 217,000 | | 11,635,540 |
| | 18,273,244 |
Textiles, Apparel & Luxury Goods - 3.5% |
Fossil, Inc. (a) | 72,280 | | 6,922,978 |
G-III Apparel Group Ltd. (a) | 203,457 | | 9,127,081 |
| | 16,050,059 |
TOTAL CONSUMER DISCRETIONARY | | 80,856,174 |
CONSUMER STAPLES - 6.1% |
Food Products - 1.5% |
Green Mountain Coffee Roasters, Inc. (a) | 104,000 | | 6,963,840 |
Personal Products - 4.6% |
Estee Lauder Companies, Inc. Class A | 202,100 | | 19,603,700 |
Prestige Brands Holdings, Inc. (a) | 144,321 | | 1,666,908 |
| | 21,270,608 |
TOTAL CONSUMER STAPLES | | 28,234,448 |
ENERGY - 18.2% |
Energy Equipment & Services - 4.2% |
Baker Hughes, Inc. | 122,000 | | 9,444,020 |
Key Energy Services, Inc. (a) | 555,200 | | 10,104,640 |
| | 19,548,660 |
Oil, Gas & Consumable Fuels - 14.0% |
Brigham Exploration Co. (a) | 233,100 | | 7,815,843 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Chevron Corp. | 96,000 | | $ 10,506,240 |
Exxon Mobil Corp. | 213,500 | | 18,788,000 |
Holly Corp. | 97,894 | | 5,668,063 |
Keyera Corp. | 211,000 | | 8,751,337 |
Marathon Oil Corp. | 182,000 | | 9,835,280 |
Pioneer Natural Resources Co. | 39,000 | | 3,986,970 |
| | 65,351,733 |
TOTAL ENERGY | | 84,900,393 |
FINANCIALS - 9.4% |
Capital Markets - 1.4% |
Affiliated Managers Group, Inc. (a) | 59,700 | | 6,512,076 |
Commercial Banks - 1.9% |
SVB Financial Group (a) | 145,900 | | 8,818,196 |
Insurance - 4.4% |
Lincoln National Corp. | 662,900 | | 20,702,367 |
Real Estate Investment Trusts - 1.7% |
Equity Residential (SBI) | 134,000 | | 8,002,480 |
TOTAL FINANCIALS | | 44,035,119 |
HEALTH CARE - 18.8% |
Biotechnology - 0.7% |
Vertex Pharmaceuticals, Inc. (a) | 60,000 | | 3,301,200 |
Health Care Equipment & Supplies - 6.4% |
Baxter International, Inc. | 83,000 | | 4,722,700 |
Covidien PLC | 166,000 | | 9,244,540 |
Edwards Lifesciences Corp. (a) | 139,800 | | 12,071,730 |
Mako Surgical Corp. (a)(d) | 138,300 | | 3,799,101 |
| | 29,838,071 |
Health Care Providers & Services - 2.4% |
McKesson Corp. | 136,000 | | 11,289,360 |
Life Sciences Tools & Services - 2.8% |
Agilent Technologies, Inc. (a) | 143,000 | | 7,137,130 |
Illumina, Inc. (a)(d) | 81,000 | | 5,749,380 |
| | 12,886,510 |
Pharmaceuticals - 6.5% |
Novo Nordisk A/S Series B | 53,000 | | 6,709,714 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Perrigo Co. | 164,000 | | $ 14,819,040 |
Valeant Pharmaceuticals International, Inc. (Canada) | 163,000 | | 8,597,083 |
| | 30,125,837 |
TOTAL HEALTH CARE | | 87,440,978 |
INDUSTRIALS - 3.8% |
Industrial Conglomerates - 2.1% |
Carlisle Companies, Inc. | 202,600 | | 10,036,804 |
Road & Rail - 1.7% |
CSX Corp. | 98,000 | | 7,711,620 |
TOTAL INDUSTRIALS | | 17,748,424 |
INFORMATION TECHNOLOGY - 21.1% |
Communications Equipment - 8.6% |
Alcatel-Lucent SA sponsored ADR (a)(d) | 3,447,300 | | 22,545,341 |
Ciena Corp. (a) | 108,000 | | 3,049,920 |
Polycom, Inc. (a) | 83,000 | | 4,965,890 |
QUALCOMM, Inc. | 165,000 | | 9,378,600 |
| | 39,939,751 |
Computers & Peripherals - 2.8% |
Apple, Inc. (a) | 36,900 | | 12,849,687 |
Internet Software & Services - 2.0% |
eBay, Inc. (a) | 207,000 | | 7,120,800 |
WebMD Health Corp. (a) | 41,309 | | 2,390,552 |
| | 9,511,352 |
IT Services - 1.5% |
MasterCard, Inc. Class A | 25,000 | | 6,897,250 |
Semiconductors & Semiconductor Equipment - 0.7% |
Ceva, Inc. (a) | 113,000 | | 3,455,540 |
Software - 5.5% |
Informatica Corp. (a) | 206,000 | | 11,538,060 |
Intuit, Inc. (a) | 253,000 | | 14,056,680 |
| | 25,594,740 |
TOTAL INFORMATION TECHNOLOGY | | 98,248,320 |
Common Stocks - continued |
| Shares | | Value |
MATERIALS - 3.1% |
Chemicals - 3.1% |
LyondellBasell Industries NV Class A | 199,300 | | $ 8,868,850 |
W.R. Grace & Co. (a) | 127,000 | | 5,760,720 |
| | 14,629,570 |
UTILITIES - 1.4% |
Electric Utilities - 1.4% |
PPL Corp. | 237,000 | | 6,500,910 |
TOTAL COMMON STOCKS (Cost $403,847,155) | 462,594,336 |
Money Market Funds - 8.7% |
| | | |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c)
(Cost $40,410,800) | 40,410,800 | | 40,410,800 |
TOTAL INVESTMENT PORTFOLIO - 108.0% (Cost $444,257,955) | 503,005,136 |
NET OTHER ASSETS (LIABILITIES) - (8.0)% | (37,350,090) |
NET ASSETS - 100% | $ 465,655,046 |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 | $ 11,661 |
Fidelity Securities Lending Cash Central Fund | 14,806 |
Total | $ 26,467 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 80,856,174 | $ 80,856,174 | $ - | $ - |
Consumer Staples | 28,234,448 | 28,234,448 | - | - |
Energy | 84,900,393 | 84,900,393 | - | - |
Financials | 44,035,119 | 44,035,119 | - | - |
Health Care | 87,440,978 | 80,731,264 | 6,709,714 | - |
Industrials | 17,748,424 | 17,748,424 | - | - |
Information Technology | 98,248,320 | 98,248,320 | - | - |
Materials | 14,629,570 | 14,629,570 | - | - |
Utilities | 6,500,910 | 6,500,910 | - | - |
Money Market Funds | 40,410,800 | 40,410,800 | - | - |
Total Investments in Securities: | $ 503,005,136 | $ 496,295,422 | $ 6,709,714 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 84.4% |
France | 4.8% |
Canada | 3.8% |
Ireland | 2.0% |
Netherlands | 1.9% |
Germany | 1.7% |
Denmark | 1.4% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $10,808,640 of which $3,179,162 and $7,629,478 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $38,881,425) - See accompanying schedule: Unaffiliated issuers (cost $403,847,155) | $ 462,594,336 | |
Fidelity Central Funds (cost $40,410,800) | 40,410,800 | |
Total Investments (cost $444,257,955) | | $ 503,005,136 |
Receivable for investments sold | | 21,422,690 |
Receivable for fund shares sold | | 2,432,912 |
Dividends receivable | | 166,229 |
Distributions receivable from Fidelity Central Funds | | 11,393 |
Prepaid expenses | | 122 |
Other receivables | | 11,841 |
Total assets | | 527,050,323 |
| | |
Liabilities | | |
Payable to custodian bank | $ 2,241,585 | |
Payable for investments purchased | 17,384,168 | |
Payable for fund shares redeemed | 999,280 | |
Accrued management fee | 229,612 | |
Other affiliated payables | 94,097 | |
Other payables and accrued expenses | 35,735 | |
Collateral on securities loaned, at value | 40,410,800 | |
Total liabilities | | 61,395,277 |
| | |
Net Assets | | $ 465,655,046 |
Net Assets consist of: | | |
Paid in capital | | $ 400,639,206 |
Accumulated net investment loss | | (310,656) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 6,603,691 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 58,722,805 |
Net Assets, for 30,517,624 shares outstanding | | $ 465,655,046 |
Net Asset Value, offering price and redemption price per share ($465,655,046 ÷ 30,517,624 shares) | | $ 15.26 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,042,993 |
Income from Fidelity Central Funds | | 26,467 |
Total income | | 1,069,460 |
| | |
Expenses | | |
Management fee
Basic fee | $ 785,252 | |
Performance adjustment | 129,782 | |
Transfer agent fees | 331,991 | |
Accounting and security lending fees | 55,393 | |
Custodian fees and expenses | 26,507 | |
Independent trustees' compensation | 563 | |
Registration fees | 42,598 | |
Audit | 21,622 | |
Legal | 286 | |
Miscellaneous | 815 | |
Total expenses before reductions | 1,394,809 | |
Expense reductions | (14,693) | 1,380,116 |
Net investment income (loss) | | (310,656) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 17,873,157 | |
Foreign currency transactions | (57,528) | |
Total net realized gain (loss) | | 17,815,629 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 34,344,102 | |
Assets and liabilities in foreign currencies | (25,141) | |
Total change in net unrealized appreciation (depreciation) | | 34,318,961 |
Net gain (loss) | | 52,134,590 |
Net increase (decrease) in net assets resulting from operations | | $ 51,823,934 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (310,656) | $ (323,910) |
Net realized gain (loss) | 17,815,629 | 14,261,896 |
Change in net unrealized appreciation (depreciation) | 34,318,961 | 11,817,613 |
Net increase (decrease) in net assets resulting
from operations | 51,823,934 | 25,755,599 |
Distributions to shareholders from net investment income | - | (648,249) |
Share transactions
Proceeds from sales of shares | 313,778,295 | 48,342,517 |
Reinvestment of distributions | - | 616,010 |
Cost of shares redeemed | (47,616,047) | (49,177,002) |
Net increase (decrease) in net assets resulting from share transactions | 266,162,248 | (218,475) |
Total increase (decrease) in net assets | 317,986,182 | 24,888,875 |
| | |
Net Assets | | |
Beginning of period | 147,668,864 | 122,779,989 |
End of period (including accumulated net investment loss of $310,656 and $0, respectively) | $ 465,655,046 | $ 147,668,864 |
Other Information Shares | | |
Sold | 21,931,873 | 4,217,175 |
Issued in reinvestment of distributions | - | 56,494 |
Redeemed | (3,332,867) | (4,428,825) |
Net increase (decrease) | 18,599,006 | (155,156) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.39 | $ 10.17 | $ 9.82 | $ 15.35 | $ 12.32 | $ 11.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.03) | .06 | .09 | .06 | .01 G |
Net realized and unrealized gain (loss) | 2.89 | 2.31 | .36 | (4.27) | 2.98 | .98 |
Total from investment operations | 2.87 | 2.28 | .42 | (4.18) | 3.04 | .99 |
Distributions from net investment income | - | (.06) | (.07) | (.06) | (.01) | (.04) |
Distributions from net realized gain | - | - | - | (1.29) | - | - |
Total distributions | - | (.06) | (.07) | (1.35) | (.01) | (.04) |
Redemption fees added to paid in capital J | - | - | - | - | - | - D, I |
Net asset value, end of period | $ 15.26 | $ 12.39 | $ 10.17 | $ 9.82 | $ 15.35 | $ 12.32 |
Total Return B, C | 23.16% | 22.44% | 4.39% | (29.58)% | 24.70% | 8.72% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .99% A | 1.11% | 1.09% | 1.20% | 1.20% | 1.08% |
Expenses net of fee waivers, if any | .99% A | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | .98% A | 1.00% | .99% | .99% | .99% | .98% |
Net investment income (loss) | (.22)% A | (.26)% | .63% | .70% | .47% | .12% G |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 465,655 | $ 147,669 | $ 122,780 | $ 96,870 | $ 97,388 | $ 88,908 |
Portfolio turnover rate F | 292% A | 275% | 363% | 491% | 343% | 202% |
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.
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 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 reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount represents less than $.01 per share.
J The redemption fee was eliminated during the year ended October 31, 2006.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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 uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including other Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange 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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. 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 declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, net operating losses, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 58,968,652 |
Gross unrealized depreciation | (1,750,210) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 57,218,442 |
| |
Tax cost | $ 445,786,694 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $668,490,919 and $402,340,743, respectively.
Semiannual Report
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 a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .65% 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 .24% 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 $33,493 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $400 and is reflected in Miscellaneous expenses 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
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $14,806. During the period, there were no securities loaned to FCM.
8. 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 $14,681 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 $12.
9. 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 distributions, 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
(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.
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-0611
1.784914.108
Fidelity®
Stock Selector All Cap Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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 expense incurred by the Fund presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Funds also indirectly bears its proportionate share of the expense 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 (November 1, 2010 to April 30, 2011).
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.
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Stock Selector All Cap | .81% | | | |
Actual | | $ 1,000.00 | $ 1,195.80 | $ 4.41 |
HypotheticalA | | $ 1,000.00 | $ 1,020.78 | $ 4.06 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 1,197.00 | $ 3.43 |
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). 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 Funds' pro-rata share of investments of Fidelity's Equity Central Funds.
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 1.9 | 2.2 |
Visa, Inc. Class A | 1.7 | 1.2 |
Procter & Gamble Co. | 1.7 | 1.6 |
Comerica, Inc. | 1.7 | 1.2 |
Apple, Inc. | 1.7 | 2.5 |
Chevron Corp. | 1.4 | 1.2 |
General Electric Co. | 1.4 | 1.3 |
The Coca-Cola Co. | 1.2 | 1.4 |
Regions Financial Corp. | 1.2 | 0.7 |
Citigroup, Inc. | 0.9 | 0.9 |
| 14.8 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 16.5 | 18.9 |
Financials | 14.7 | 15.0 |
Energy | 12.7 | 11.0 |
Industrials | 10.9 | 10.4 |
Health Care | 11.0 | 11.4 |
At period end, investments in foreign securities, including the Fund's pro-rata share of the underlying Central Funds, was 17.3% 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 non-money market Fidelity Central Funds, is available at fidelity.com.
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Equity Central Funds - 98.6% |
| Shares | | Value (000s) |
Fidelity Consumer Discretionary Central Fund (a) | 729,297 | | $ 99,870 |
Fidelity Consumer Staples Central Fund (a) | 780,275 | | 111,267 |
Fidelity Energy Central Fund (a) | 966,122 | | 141,150 |
Fidelity Financials Central Fund (a) | 3,046,908 | | 188,786 |
Fidelity Health Care Central Fund (a) | 815,345 | | 117,891 |
Fidelity Industrials Central Fund (a) | 733,326 | | 117,105 |
Fidelity Information Technology Central Fund (a) | 936,290 | | 179,178 |
Fidelity Materials Central Fund (a) | 197,273 | | 37,050 |
Fidelity Telecom Services Central Fund (a) | 242,923 | | 32,173 |
Fidelity Utilities Central Fund (a) | 316,733 | | 34,175 |
TOTAL INVESTMENT PORTFOLIO - 98.6% (Cost $851,788) | | 1,058,645 |
NET OTHER ASSETS (LIABILITIES) - 1.4% | | 15,159 |
NET ASSETS - 100% | $ 1,073,804 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value
(000s) | | Unrealized Appreciation/
(Depreciation)
(000s) |
Purchased |
Equity Index Contracts |
229 CME E-mini S&P 500 Index Contracts | June 2011 | | $ 15,569 | | $ (4) |
|
The face value of futures purchased as a percentage of net assets is 1.4% |
Legend |
(a) 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 | $ 0* |
Fidelity Consumer Discretionary Central Fund | 470 |
Fidelity Consumer Staples Central Fund | 1,288 |
Fidelity Energy Central Fund | 753 |
Fidelity Financials Central Fund | 396 |
Fidelity Health Care Central Fund | 269 |
Fidelity Industrials Central Fund | 653 |
Fidelity Information Technology Central Fund | 250 |
Fidelity Materials Central Fund | 180 |
Fidelity Telecom Services Central Fund | 333 |
Fidelity Utilities Central Fund | 465 |
Total | $ 5,057 |
* Amount represents less than $1,000 |
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 | $ 74,778 | $ 16,171 | $ 2,749 | $ 99,870 | 13.9% |
Fidelity Consumer Staples Central Fund | 89,784 | 16,327 | 4,595 | 111,267 | 16.9% |
Fidelity Energy Central Fund | 87,413 | 25,959 | 6,131 | 141,150 | 16.0% |
Fidelity Financials Central Fund | 131,393 | 40,512 | 2,141 | 188,786 | 15.3% |
Fidelity Health Care Central Fund | 89,020 | 21,225 | 13,869 | 117,891 | 15.2% |
Fidelity Industrials Central Fund | 81,823 | 18,001 | 3,440 | 117,105 | 14.6% |
Fidelity Information Technology Central Fund | 128,715 | 39,849 | 13,933 | 179,178 | 15.3% |
Fidelity Materials Central Fund | 29,438 | 4,760 | 3,750 | 37,050 | 13.4% |
Fidelity Telecom Services Central Fund | 24,748 | 4,421 | 276 | 32,173 | 15.6% |
Fidelity Utilities Central Fund | 29,073 | 4,721 | 1,857 | 34,175 | 14.5% |
Total | $ 766,185 | $ 191,946 | $ 52,741 | $ 1,058,645 | |
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. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ - | $ (4) |
Total Value of Derivatives | $ - | $ (4) |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Other Information |
The information in the following table is based on the combined investment of the Fund and its pro-rata share of the investments of Fidelity 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 | 82.7% |
United Kingdom | 1.8% |
Ireland | 1.8% |
Bermuda | 1.7% |
Switzerland | 1.3% |
Canada | 1.2% |
Cayman Islands | 1.0% |
China | 1.0% |
Brazil | 1.0% |
Others (Individually Less Than 1%) | 6.5% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $194,202,000 of which $59,231,000 and $134,971,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Total Investments (cost $851,788) | | $ 1,058,645 |
Cash | | 3 |
Receivable for investments sold | | 479 |
Receivable for fund shares sold | | 15,877 |
Dividends receivable | | 27 |
Prepaid expenses | | 1 |
Other receivables | | 55 |
Total assets | | 1,075,087 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 601 | |
Accrued management fee | 452 | |
Transfer agent fee payable | 169 | |
Payable for daily variation on futures contracts | 4 | |
Other affiliated payables | 28 | |
Other payables and accrued expenses | 29 | |
Total liabilities | | 1,283 |
| | |
Net Assets | | $ 1,073,804 |
Net Assets consist of: | | |
Paid in capital | | $ 1,057,569 |
Distributions in excess of net investment income | | (162) |
Accumulated undistributed net realized gain (loss) on investments | | (190,461) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 206,858 |
Net Assets | | $ 1,073,804 |
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, 2011 (Unaudited) |
| | |
Stock Selector All Cap:
Net Asset Value, offering price and redemption price per share ($1,031,743 ÷ 36,643.6 shares) | | $ 28.16 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($42,061 ÷ 1,493.7 shares) | | $ 28.16 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Income from Fidelity Central Funds | | $ 5,057 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,388 | |
Performance adjustment | (127) | |
Transfer agent fees | 961 | |
Accounting fees and expenses | 146 | |
Custodian fees and expenses | 3 | |
Independent trustees' compensation | 2 | |
Registration fees | 29 | |
Audit | 31 | |
Legal | 2 | |
Miscellaneous | 3 | |
Total expenses before reductions | 3,438 | |
Expense reductions | (92) | 3,346 |
Net investment income (loss) | | 1,711 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 137 | |
Fidelity Central Funds | 11,017 | |
Total net realized gain (loss) | | 11,154 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 142,155 | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | (4) | |
Total change in net unrealized appreciation (depreciation) | | 142,154 |
Net gain (loss) | | 153,308 |
Net increase (decrease) in net assets resulting from operations | | $ 155,019 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,711 | $ 5,097 |
Net realized gain (loss) | 11,154 | 86,830 |
Change in net unrealized appreciation (depreciation) | 142,154 | 23,283 |
Net increase (decrease) in net assets resulting
from operations | 155,019 | 115,210 |
Distributions to shareholders from net investment income | (4,605) | (4,230) |
Share transactions - net increase (decrease) | 157,718 | 80,564 |
Total increase (decrease) in net assets | 308,132 | 191,544 |
| | |
Net Assets | | |
Beginning of period | 765,672 | 574,128 |
End of period (including distributions in excess of net investment income of $162 and undistributed net investment income of $2,732, respectively) | $ 1,073,804 | $ 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 April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .16 | .14 | .20 | .19 | .16 |
Net realized and unrealized gain (loss) | 4.57 | 3.69 | 1.27 | (12.14) | 5.10 | 3.46 |
Total from investment operations | 4.62 | 3.85 | 1.41 | (11.94) | 5.29 | 3.62 |
Distributions from net investment income | (.14) | (.15) | (.22) | (.16) | (.13) | (.12) |
Distributions from net realized gain | - | - | - | (1.48) | (.03) | - |
Total distributions | (.14) | (.15) | (.22) | (1.64) | (.16) | (.12) |
Net asset value, end of period | $ 28.16 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 |
Total Return B, C | 19.58% | 19.35% | 7.77% | (38.78)% | 19.52% | 15.29% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .81% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of fee waivers, if any | .81% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of all reductions | .79% A | .86% | .87% | .93% | .87% | .87% |
Net investment income (loss) | .39% A | .72% | .82% | .77% | .64% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,032 | $ 730 | $ 552 | $ 698 | $ 1,005 | $ 853 |
Portfolio turnover rate F | 12% A | 147% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.70 | $ 20.00 | $ 18.81 | $ 27.80 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .07 | .20 | .18 | .06 |
Net realized and unrealized gain (loss) | 4.58 | 3.69 | 1.27 | (9.05) |
Total from investment operations | 4.65 | 3.89 | 1.45 | (8.99) |
Distributions from net investment income | (.19) | (.19) | (.26) | - |
Net asset value, end of period | $ 28.16 | $ 23.70 | $ 20.00 | $ 18.81 |
Total Return B, C | 19.70% | 19.54% | 8.00% | (32.34)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .63% A | .68% | .65% | .79% A |
Expenses net of fee waivers, if any | .63% A | .68% | .65% | .79% A |
Expenses net of all reductions | .61% A | .66% | .65% | .78% A |
Net investment income (loss) | .57% A | .91% | 1.04% | .63% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 42 | $ 36 | $ 22 | $ 35 |
Portfolio turnover rate F | 12% A | 147% | 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 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
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 following summarizes the Fund's investment in each Fidelity Central Funds:
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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Investments in Fidelity Central Funds - continued
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 uses independent pricing services approved by the Board of Trustees to value its investments. 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Distributions from the Fidelity Central Funds are accrued as earned.
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 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 net asset value. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .01%.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 208,366 |
Gross unrealized depreciation | (57) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 208,309 |
Tax cost | $ 850,336 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized a change in net unrealized appreciation (depreciation) of $(4) related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares aggregated $191,946 and $52,742, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Stock Selector All Cap share class as compared to an appropriate benchmark index. For the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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:
| Amount | % of
Average
Net Assets* |
Stock Selector All Cap | $ 951 | .23 |
Class K | 10 | .05 |
| $ 961 | |
* 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 the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Equity Central Funds provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $92 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Stock Selector All Cap | $ 4,320 | $ 4,028 |
Class K | 285 | 202 |
Total | $ 4,605 | $ 4,230 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | | |
Shares sold | 8,970 | 9,171 | $ 240,148 | $ 203,020 |
Reinvestment of distributions | 164 | 181 | 4,146 | 3,844 |
Shares redeemed | (3,314) | (6,135) | (86,238) | (134,933) |
Net increase (decrease) | 5,820 | 3,217 | $ 158,056 | $ 71,931 |
Class K | | | | |
Shares sold | 167 | 739 | $ 4,385 | $ 16,419 |
Reinvestment of distributions | 11 | 10 | 285 | 202 |
Shares redeemed | (194) | (363) | (5,008) | (7,988) |
Net increase (decrease) | (16) | 386 | $ (338) | $ 8,633 |
11. 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 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-0611
1.784916.108
Fidelity®
Stock Selector All Cap Fund -
Class K
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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 expense incurred by the Fund presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Funds also indirectly bears its proportionate share of the expense 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 (November 1, 2010 to April 30, 2011).
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.
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to April 30, 2011 |
Stock Selector All Cap | .81% | | | |
Actual | | $ 1,000.00 | $ 1,195.80 | $ 4.41 |
HypotheticalA | | $ 1,000.00 | $ 1,020.78 | $ 4.06 |
Class K | .63% | | | |
Actual | | $ 1,000.00 | $ 1,197.00 | $ 3.43 |
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). 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 Funds' pro-rata share of investments of Fidelity's Equity Central Funds.
Top Ten Stocks as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exxon Mobil Corp. | 1.9 | 2.2 |
Visa, Inc. Class A | 1.7 | 1.2 |
Procter & Gamble Co. | 1.7 | 1.6 |
Comerica, Inc. | 1.7 | 1.2 |
Apple, Inc. | 1.7 | 2.5 |
Chevron Corp. | 1.4 | 1.2 |
General Electric Co. | 1.4 | 1.3 |
The Coca-Cola Co. | 1.2 | 1.4 |
Regions Financial Corp. | 1.2 | 0.7 |
Citigroup, Inc. | 0.9 | 0.9 |
| 14.8 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 16.5 | 18.9 |
Financials | 14.7 | 15.0 |
Energy | 12.7 | 11.0 |
Industrials | 10.9 | 10.4 |
Health Care | 11.0 | 11.4 |
At period end, investments in foreign securities, including the Fund's pro-rata share of the underlying Central Funds, was 17.3% 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 non-money market Fidelity Central Funds, is available at fidelity.com.
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Equity Central Funds - 98.6% |
| Shares | | Value (000s) |
Fidelity Consumer Discretionary Central Fund (a) | 729,297 | | $ 99,870 |
Fidelity Consumer Staples Central Fund (a) | 780,275 | | 111,267 |
Fidelity Energy Central Fund (a) | 966,122 | | 141,150 |
Fidelity Financials Central Fund (a) | 3,046,908 | | 188,786 |
Fidelity Health Care Central Fund (a) | 815,345 | | 117,891 |
Fidelity Industrials Central Fund (a) | 733,326 | | 117,105 |
Fidelity Information Technology Central Fund (a) | 936,290 | | 179,178 |
Fidelity Materials Central Fund (a) | 197,273 | | 37,050 |
Fidelity Telecom Services Central Fund (a) | 242,923 | | 32,173 |
Fidelity Utilities Central Fund (a) | 316,733 | | 34,175 |
TOTAL INVESTMENT PORTFOLIO - 98.6% (Cost $851,788) | | 1,058,645 |
NET OTHER ASSETS (LIABILITIES) - 1.4% | | 15,159 |
NET ASSETS - 100% | $ 1,073,804 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value
(000s) | | Unrealized Appreciation/
(Depreciation)
(000s) |
Purchased |
Equity Index Contracts |
229 CME E-mini S&P 500 Index Contracts | June 2011 | | $ 15,569 | | $ (4) |
|
The face value of futures purchased as a percentage of net assets is 1.4% |
Legend |
(a) 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 | $ 0* |
Fidelity Consumer Discretionary Central Fund | 470 |
Fidelity Consumer Staples Central Fund | 1,288 |
Fidelity Energy Central Fund | 753 |
Fidelity Financials Central Fund | 396 |
Fidelity Health Care Central Fund | 269 |
Fidelity Industrials Central Fund | 653 |
Fidelity Information Technology Central Fund | 250 |
Fidelity Materials Central Fund | 180 |
Fidelity Telecom Services Central Fund | 333 |
Fidelity Utilities Central Fund | 465 |
Total | $ 5,057 |
* Amount represents less than $1,000 |
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 | $ 74,778 | $ 16,171 | $ 2,749 | $ 99,870 | 13.9% |
Fidelity Consumer Staples Central Fund | 89,784 | 16,327 | 4,595 | 111,267 | 16.9% |
Fidelity Energy Central Fund | 87,413 | 25,959 | 6,131 | 141,150 | 16.0% |
Fidelity Financials Central Fund | 131,393 | 40,512 | 2,141 | 188,786 | 15.3% |
Fidelity Health Care Central Fund | 89,020 | 21,225 | 13,869 | 117,891 | 15.2% |
Fidelity Industrials Central Fund | 81,823 | 18,001 | 3,440 | 117,105 | 14.6% |
Fidelity Information Technology Central Fund | 128,715 | 39,849 | 13,933 | 179,178 | 15.3% |
Fidelity Materials Central Fund | 29,438 | 4,760 | 3,750 | 37,050 | 13.4% |
Fidelity Telecom Services Central Fund | 24,748 | 4,421 | 276 | 32,173 | 15.6% |
Fidelity Utilities Central Fund | 29,073 | 4,721 | 1,857 | 34,175 | 14.5% |
Total | $ 766,185 | $ 191,946 | $ 52,741 | $ 1,058,645 | |
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. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ - | $ (4) |
Total Value of Derivatives | $ - | $ (4) |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Other Information |
The information in the following table is based on the combined investment of the Fund and its pro-rata share of the investments of Fidelity 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 | 82.7% |
United Kingdom | 1.8% |
Ireland | 1.8% |
Bermuda | 1.7% |
Switzerland | 1.3% |
Canada | 1.2% |
Cayman Islands | 1.0% |
China | 1.0% |
Brazil | 1.0% |
Others (Individually Less Than 1%) | 6.5% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $194,202,000 of which $59,231,000 and $134,971,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Total Investments (cost $851,788) | | $ 1,058,645 |
Cash | | 3 |
Receivable for investments sold | | 479 |
Receivable for fund shares sold | | 15,877 |
Dividends receivable | | 27 |
Prepaid expenses | | 1 |
Other receivables | | 55 |
Total assets | | 1,075,087 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 601 | |
Accrued management fee | 452 | |
Transfer agent fee payable | 169 | |
Payable for daily variation on futures contracts | 4 | |
Other affiliated payables | 28 | |
Other payables and accrued expenses | 29 | |
Total liabilities | | 1,283 |
| | |
Net Assets | | $ 1,073,804 |
Net Assets consist of: | | |
Paid in capital | | $ 1,057,569 |
Distributions in excess of net investment income | | (162) |
Accumulated undistributed net realized gain (loss) on investments | | (190,461) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 206,858 |
Net Assets | | $ 1,073,804 |
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, 2011 (Unaudited) |
| | |
Stock Selector All Cap:
Net Asset Value, offering price and redemption price per share ($1,031,743 ÷ 36,643.6 shares) | | $ 28.16 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($42,061 ÷ 1,493.7 shares) | | $ 28.16 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Income from Fidelity Central Funds | | $ 5,057 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,388 | |
Performance adjustment | (127) | |
Transfer agent fees | 961 | |
Accounting fees and expenses | 146 | |
Custodian fees and expenses | 3 | |
Independent trustees' compensation | 2 | |
Registration fees | 29 | |
Audit | 31 | |
Legal | 2 | |
Miscellaneous | 3 | |
Total expenses before reductions | 3,438 | |
Expense reductions | (92) | 3,346 |
Net investment income (loss) | | 1,711 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 137 | |
Fidelity Central Funds | 11,017 | |
Total net realized gain (loss) | | 11,154 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 142,155 | |
Assets and liabilities in foreign currencies | 3 | |
Futures contracts | (4) | |
Total change in net unrealized appreciation (depreciation) | | 142,154 |
Net gain (loss) | | 153,308 |
Net increase (decrease) in net assets resulting from operations | | $ 155,019 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,711 | $ 5,097 |
Net realized gain (loss) | 11,154 | 86,830 |
Change in net unrealized appreciation (depreciation) | 142,154 | 23,283 |
Net increase (decrease) in net assets resulting
from operations | 155,019 | 115,210 |
Distributions to shareholders from net investment income | (4,605) | (4,230) |
Share transactions - net increase (decrease) | 157,718 | 80,564 |
Total increase (decrease) in net assets | 308,132 | 191,544 |
| | |
Net Assets | | |
Beginning of period | 765,672 | 574,128 |
End of period (including distributions in excess of net investment income of $162 and undistributed net investment income of $2,732, respectively) | $ 1,073,804 | $ 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 April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 | $ 23.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .16 | .14 | .20 | .19 | .16 |
Net realized and unrealized gain (loss) | 4.57 | 3.69 | 1.27 | (12.14) | 5.10 | 3.46 |
Total from investment operations | 4.62 | 3.85 | 1.41 | (11.94) | 5.29 | 3.62 |
Distributions from net investment income | (.14) | (.15) | (.22) | (.16) | (.13) | (.12) |
Distributions from net realized gain | - | - | - | (1.48) | (.03) | - |
Total distributions | (.14) | (.15) | (.22) | (1.64) | (.16) | (.12) |
Net asset value, end of period | $ 28.16 | $ 23.68 | $ 19.98 | $ 18.79 | $ 32.37 | $ 27.24 |
Total Return B, C | 19.58% | 19.35% | 7.77% | (38.78)% | 19.52% | 15.29% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .81% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of fee waivers, if any | .81% A | .87% | .87% | .93% | .87% | .88% |
Expenses net of all reductions | .79% A | .86% | .87% | .93% | .87% | .87% |
Net investment income (loss) | .39% A | .72% | .82% | .77% | .64% | .61% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,032 | $ 730 | $ 552 | $ 698 | $ 1,005 | $ 853 |
Portfolio turnover rate F | 12% A | 147% | 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 23.70 | $ 20.00 | $ 18.81 | $ 27.80 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .07 | .20 | .18 | .06 |
Net realized and unrealized gain (loss) | 4.58 | 3.69 | 1.27 | (9.05) |
Total from investment operations | 4.65 | 3.89 | 1.45 | (8.99) |
Distributions from net investment income | (.19) | (.19) | (.26) | - |
Net asset value, end of period | $ 28.16 | $ 23.70 | $ 20.00 | $ 18.81 |
Total Return B, C | 19.70% | 19.54% | 8.00% | (32.34)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | .63% A | .68% | .65% | .79% A |
Expenses net of fee waivers, if any | .63% A | .68% | .65% | .79% A |
Expenses net of all reductions | .61% A | .66% | .65% | .78% A |
Net investment income (loss) | .57% A | .91% | 1.04% | .63% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 42 | $ 36 | $ 22 | $ 35 |
Portfolio turnover rate F | 12% A | 147% | 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 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 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (Unaudited)
(Amounts in thousands except ratios)
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 following summarizes the Fund's investment in each Fidelity Central Funds:
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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Investments in Fidelity Central Funds - continued
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 uses independent pricing services approved by the Board of Trustees to value its investments. 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy.
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Distributions from the Fidelity Central Funds are accrued as earned.
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 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 net asset value. Based on their most recent shareholder report date, expenses of the Fidelity Central Funds ranged from less than .01% to .01%.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 208,366 |
Gross unrealized depreciation | (57) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 208,309 |
Tax cost | $ 850,336 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized a change in net unrealized appreciation (depreciation) of $(4) related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares aggregated $191,946 and $52,742, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Stock Selector All Cap share class as compared to an appropriate benchmark index. For the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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:
| Amount | % of
Average
Net Assets* |
Stock Selector All Cap | $ 951 | .23 |
Class K | 10 | .05 |
| $ 961 | |
* 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 the month.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Equity Central Funds provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $92 for the period.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Stock Selector All Cap | $ 4,320 | $ 4,028 |
Class K | 285 | 202 |
Total | $ 4,605 | $ 4,230 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2011 | Year ended
October 31,
2010 | Six months ended April 30,
2011 | Year ended
October 31,
2010 |
Stock Selector All Cap | | | | |
Shares sold | 8,970 | 9,171 | $ 240,148 | $ 203,020 |
Reinvestment of distributions | 164 | 181 | 4,146 | 3,844 |
Shares redeemed | (3,314) | (6,135) | (86,238) | (134,933) |
Net increase (decrease) | 5,820 | 3,217 | $ 158,056 | $ 71,931 |
Class K | | | | |
Shares sold | 167 | 739 | $ 4,385 | $ 16,419 |
Reinvestment of distributions | 11 | 10 | 285 | 202 |
Shares redeemed | (194) | (363) | (5,008) | (7,988) |
Net increase (decrease) | (16) | 386 | $ (338) | $ 8,633 |
11. 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 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-0611
1.863294.102
Fidelity®
Stock Selector Small Cap
Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.07% | | | |
Actual | | $ 1,000.00 | $ 1,286.80 | $ 6.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.49 | $ 5.36 |
Class T | 1.34% | | | |
Actual | | $ 1,000.00 | $ 1,284.40 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 6.71 |
Class B | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.70 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Class C | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.90 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Stock Selector Small Cap | .77% | | | |
Actual | | $ 1,000.00 | $ 1,288.00 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,020.98 | $ 3.86 |
Institutional Class | .74% | | | |
Actual | | $ 1,000.00 | $ 1,288.60 | $ 4.20 |
HypotheticalA | | $ 1,000.00 | $ 1,021.12 | $ 3.71 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Waddell & Reed Financial, Inc. Class A | 1.1 | 1.0 |
Rockwood Holdings, Inc. | 1.1 | 0.9 |
Forestar Group, Inc. | 1.1 | 1.1 |
National Penn Bancshares, Inc. | 1.1 | 1.0 |
G-III Apparel Group Ltd. | 1.1 | 0.9 |
Franklin Street Properties Corp. | 1.0 | 1.0 |
Tempur-Pedic International, Inc. | 1.0 | 1.0 |
General Cable Corp. | 1.0 | 0.7 |
CapitalSource, Inc. | 0.9 | 1.1 |
Watsco, Inc. | 0.9 | 0.0 |
| 10.3 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.6 | 21.0 |
Financials | 18.1 | 19.9 |
Industrials | 15.0 | 13.8 |
Consumer Discretionary | 13.3 | 14.2 |
Health Care | 11.7 | 12.1 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks and
Equity Futures 97.7% | | | Stocks and
Equity Futures 99.0% | |
 | Convertible
Securities 0.1% | |  | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 2.2% | | | Short-Term
Investments and
Net Other Assets 1.0% | |
* Foreign investments | 8.3% | | ** Foreign investments | 7.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 13.3% |
Auto Components - 0.9% |
Tenneco, Inc. (a) | 405,814 | | $ 18,753 |
Hotels, Restaurants & Leisure - 1.6% |
Cracker Barrel Old Country Store, Inc. | 127,621 | | 6,538 |
Vail Resorts, Inc. (a) | 211,700 | | 10,371 |
WMS Industries, Inc. (a) | 176,900 | | 5,802 |
Wyndham Worldwide Corp. | 358,315 | | 12,401 |
| | 35,112 |
Household Durables - 2.8% |
iRobot Corp. (a) | 342,370 | | 12,127 |
La-Z-Boy, Inc. (a) | 629,310 | | 7,401 |
Meritage Homes Corp. (a) | 448,000 | | 10,712 |
Mohawk Industries, Inc. (a) | 133,500 | | 8,015 |
Tempur-Pedic International, Inc. (a) | 332,194 | | 20,855 |
| | 59,110 |
Media - 0.8% |
Lamar Advertising Co. Class A (a) | 287,900 | | 9,363 |
MDC Partners, Inc. Class A (sub. vtg.) | 491,300 | | 8,170 |
| | 17,533 |
Multiline Retail - 1.1% |
Dollarama, Inc. (a) | 282,934 | | 8,867 |
Retail Ventures, Inc. (a) | 746,416 | | 15,324 |
| | 24,191 |
Specialty Retail - 4.0% |
Ascena Retail Group, Inc. (a) | 404,580 | | 12,659 |
Cabela's, Inc. Class A (a)(d) | 597,362 | | 15,257 |
Fourlis Holdings SA | 590,130 | | 4,851 |
GameStop Corp. Class A (a) | 335,000 | | 8,603 |
Shoe Carnival, Inc. (a) | 532,247 | | 15,579 |
Signet Jewelers Ltd. (a) | 338,800 | | 14,823 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 270,992 | | 14,414 |
| | 86,186 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 106,167 | | 9,009 |
G-III Apparel Group Ltd. (a) | 505,900 | | 22,695 |
Phillips-Van Heusen Corp. | 190,600 | | 13,420 |
| | 45,124 |
TOTAL CONSUMER DISCRETIONARY | | 286,009 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 2.6% |
Beverages - 0.3% |
Hansen Natural Corp. (a) | 110,800 | | $ 7,329 |
Food & Staples Retailing - 0.6% |
BJ's Wholesale Club, Inc. (a) | 138,200 | | 7,092 |
United Natural Foods, Inc. (a) | 151,845 | | 6,482 |
| | 13,574 |
Food Products - 1.0% |
Chiquita Brands International, Inc. (a) | 308,070 | | 4,904 |
Diamond Foods, Inc. (d) | 60,200 | | 3,949 |
Green Mountain Coffee Roasters, Inc. (a) | 184,503 | | 12,354 |
| | 21,207 |
Personal Products - 0.7% |
Elizabeth Arden, Inc. (a) | 370,155 | | 11,127 |
Nutraceutical International Corp. (a) | 185,112 | | 2,936 |
| | 14,063 |
TOTAL CONSUMER STAPLES | | 56,173 |
ENERGY - 6.2% |
Energy Equipment & Services - 1.6% |
Newpark Resources, Inc. (a) | 1,032,272 | | 9,321 |
Superior Energy Services, Inc. (a) | 323,300 | | 12,421 |
Willbros Group, Inc. (a) | 1,151,900 | | 12,383 |
| | 34,125 |
Oil, Gas & Consumable Fuels - 4.6% |
Atlas Pipeline Partners, LP | 388,813 | | 14,371 |
Berry Petroleum Co. Class A | 302,800 | | 16,088 |
Cloud Peak Energy, Inc. (a) | 574,600 | | 11,963 |
Petroleum Development Corp. (a) | 404,250 | | 16,097 |
SM Energy Co. | 217,436 | | 16,495 |
Targa Resources Corp. | 254,500 | | 8,913 |
Whiting Petroleum Corp. (a) | 207,030 | | 14,389 |
| | 98,316 |
TOTAL ENERGY | | 132,441 |
FINANCIALS - 18.1% |
Capital Markets - 3.0% |
Affiliated Managers Group, Inc. (a) | 172,000 | | 18,762 |
Artio Global Investors, Inc. Class A | 144,826 | | 2,379 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
Duff & Phelps Corp. Class A | 567,782 | | $ 8,738 |
Gimv NV | 102,300 | | 6,782 |
optionsXpress Holdings, Inc. | 195,299 | | 3,601 |
Waddell & Reed Financial, Inc. Class A | 601,400 | | 24,659 |
| | 64,921 |
Commercial Banks - 4.7% |
Associated Banc-Corp. | 963,423 | | 14,066 |
CapitalSource, Inc. | 3,018,800 | | 20,166 |
Cathay General Bancorp | 627,376 | | 10,697 |
City National Corp. | 291,300 | | 16,636 |
National Penn Bancshares, Inc. | 2,781,400 | | 22,835 |
PacWest Bancorp | 602,600 | | 13,854 |
TCF Financial Corp. | 221,371 | | 3,451 |
| | 101,705 |
Insurance - 3.0% |
Alterra Capital Holdings Ltd. | 665,500 | | 14,628 |
Amerisafe, Inc. (a) | 844,100 | | 18,849 |
Endurance Specialty Holdings Ltd. | 321,300 | | 14,246 |
Platinum Underwriters Holdings Ltd. | 410,000 | | 15,502 |
| | 63,225 |
Real Estate Investment Trusts - 4.4% |
American Assets Trust, Inc. | 600,300 | | 13,255 |
Franklin Street Properties Corp. | 1,521,700 | | 21,517 |
Highwoods Properties, Inc. (SBI) | 443,600 | | 16,369 |
Home Properties, Inc. | 237,731 | | 15,072 |
National Retail Properties, Inc. (d) | 481,000 | | 12,670 |
Ramco-Gershenson Properties Trust (SBI) | 1,245,300 | | 16,052 |
| | 94,935 |
Real Estate Management & Development - 1.4% |
Forestar Group, Inc. (a) | 1,166,600 | | 22,947 |
Jones Lang LaSalle, Inc. | 70,500 | | 7,218 |
| | 30,165 |
Thrifts & Mortgage Finance - 1.6% |
Astoria Financial Corp. | 938,700 | | 13,583 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - continued |
Washington Federal, Inc. | 978,600 | | $ 15,746 |
WSFS Financial Corp. | 112,483 | | 5,058 |
| | 34,387 |
TOTAL FINANCIALS | | 389,338 |
HEALTH CARE - 11.6% |
Biotechnology - 2.8% |
Achillion Pharmaceuticals, Inc. (a) | 343,600 | | 1,917 |
Amarin Corp. PLC ADR (a) | 234,277 | | 3,748 |
Ardea Biosciences, Inc. (a) | 193,205 | | 5,477 |
ARIAD Pharmaceuticals, Inc. (a) | 757,418 | | 6,476 |
ArQule, Inc. (a) | 509,458 | | 3,597 |
BioMarin Pharmaceutical, Inc. (a) | 136,506 | | 3,671 |
Chelsea Therapeutics International Ltd. (a) | 665,563 | | 3,135 |
Dynavax Technologies Corp. (a) | 1,613,741 | | 4,486 |
Pharmasset, Inc. (a) | 72,701 | | 7,377 |
QLT, Inc. (a) | 152,000 | | 1,239 |
SIGA Technologies, Inc. (a)(d) | 362,276 | | 4,974 |
Targacept, Inc. (a) | 137,359 | | 3,321 |
Telik, Inc. (a) | 1,142,150 | | 1,028 |
Theravance, Inc. (a) | 200,981 | | 5,577 |
ZIOPHARM Oncology, Inc. (a) | 632,333 | | 4,780 |
| | 60,803 |
Health Care Equipment & Supplies - 1.2% |
Analogic Corp. | 127,217 | | 7,337 |
Masimo Corp. | 183,237 | | 6,375 |
Sirona Dental Systems, Inc. (a) | 189,100 | | 10,792 |
| | 24,504 |
Health Care Providers & Services - 6.1% |
Accretive Health, Inc. | 386,000 | | 10,901 |
Air Methods Corp. (a) | 102,640 | | 6,941 |
Catalyst Health Solutions, Inc. (a) | 175,091 | | 10,428 |
Centene Corp. (a) | 241,892 | | 8,764 |
Corvel Corp. (a) | 116,800 | | 6,050 |
Epocrates, Inc. (a) | 316,425 | | 7,404 |
Health Management Associates, Inc. Class A (a) | 663,938 | | 7,489 |
Healthspring, Inc. (a) | 235,825 | | 9,784 |
HMS Holdings Corp. (a) | 88,214 | | 6,943 |
Humana, Inc. | 129,228 | | 9,837 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
MWI Veterinary Supply, Inc. (a) | 70,382 | | $ 5,854 |
Omnicare, Inc. | 186,907 | | 5,873 |
PSS World Medical, Inc. (a) | 501,831 | | 14,433 |
The Ensign Group, Inc. | 201,362 | | 5,570 |
Universal Health Services, Inc. Class B | 156,700 | | 8,584 |
Wellcare Health Plans, Inc. (a) | 158,025 | | 6,923 |
| | 131,778 |
Life Sciences Tools & Services - 0.6% |
eResearchTechnology, Inc. (a) | 815,102 | | 5,184 |
Illumina, Inc. (a) | 97,200 | | 6,899 |
| | 12,083 |
Pharmaceuticals - 0.9% |
Cardiome Pharma Corp. (a) | 433,357 | | 2,359 |
Columbia Laboratories, Inc. (a) | 708,568 | | 2,473 |
Endocyte, Inc. | 177,000 | | 2,151 |
Questcor Pharmaceuticals, Inc. (a) | 398,669 | | 8,173 |
XenoPort, Inc. (a) | 499,000 | | 4,082 |
| | 19,238 |
TOTAL HEALTH CARE | | 248,406 |
INDUSTRIALS - 15.0% |
Aerospace & Defense - 0.9% |
Teledyne Technologies, Inc. (a) | 360,042 | | 18,179 |
Air Freight & Logistics - 0.6% |
UTI Worldwide, Inc. | 558,300 | | 12,512 |
Building Products - 1.8% |
A.O. Smith Corp. | 365,889 | | 16,088 |
AAON, Inc. | 346,100 | | 11,369 |
Armstrong World Industries, Inc. | 271,158 | | 12,134 |
| | 39,591 |
Commercial Services & Supplies - 1.6% |
Swisher Hygiene, Inc. (a)(f) | 986,560 | | 7,787 |
Swisher Hygiene, Inc. (Canada) (a) | 7,600 | | 67 |
Sykes Enterprises, Inc. (a) | 638,202 | | 12,783 |
United Stationers, Inc. | 190,442 | | 13,723 |
| | 34,360 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.0% |
Foster Wheeler AG (a) | 370,872 | | $ 13,192 |
Shaw Group, Inc. (a) | 238,387 | | 9,273 |
| | 22,465 |
Electrical Equipment - 2.2% |
General Cable Corp. (a) | 419,915 | | 20,366 |
GrafTech International Ltd. (a) | 684,247 | | 15,875 |
Regal-Beloit Corp. | 151,600 | | 11,490 |
| | 47,731 |
Industrial Conglomerates - 0.6% |
Carlisle Companies, Inc. | 239,100 | | 11,845 |
Machinery - 3.5% |
Accuride Corp. (a) | 904,551 | | 12,528 |
Actuant Corp. Class A | 501,721 | | 13,928 |
Altra Holdings, Inc. (a) | 441,487 | | 11,209 |
CLARCOR, Inc. | 308,114 | | 13,924 |
John Bean Technologies Corp. | 524,300 | | 10,596 |
Wabtec Corp. | 170,429 | | 12,165 |
| | 74,350 |
Professional Services - 0.4% |
Advisory Board Co. (a) | 195,038 | | 9,112 |
Road & Rail - 0.5% |
Kansas City Southern (a) | 191,100 | | 11,105 |
Trading Companies & Distributors - 1.9% |
Interline Brands, Inc. (a) | 585,707 | | 12,370 |
Watsco, Inc. | 267,723 | | 18,979 |
WESCO International, Inc. (a) | 152,745 | | 9,463 |
| | 40,812 |
TOTAL INDUSTRIALS | | 322,062 |
INFORMATION TECHNOLOGY - 18.6% |
Communications Equipment - 2.9% |
Aruba Networks, Inc. (a) | 147,190 | | 5,289 |
Comtech Telecommunications Corp. | 345,447 | | 9,776 |
DG FastChannel, Inc. (a) | 318,771 | | 11,664 |
Ixia (a) | 924,592 | | 15,108 |
NETGEAR, Inc. (a) | 312,053 | | 13,028 |
Oclaro, Inc. (a) | 686,715 | | 7,702 |
| | 62,567 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 3.6% |
Lexmark International, Inc. Class A (a) | 236,500 | | $ 7,627 |
NCR Corp. (a) | 531,000 | | 10,519 |
OCZ Technology Group, Inc. (a)(d) | 440,271 | | 3,615 |
Quantum Corp. (a) | 5,772,954 | | 18,358 |
STEC, Inc. (a) | 354,054 | | 7,407 |
Super Micro Computer, Inc. (a) | 773,947 | | 13,204 |
Synaptics, Inc. (a)(d) | 576,880 | | 16,395 |
| | 77,125 |
Electronic Equipment & Components - 1.0% |
Fabrinet (a) | 507,054 | | 11,688 |
Plexus Corp. (a) | 253,078 | | 9,235 |
| | 20,923 |
Internet Software & Services - 3.4% |
Constant Contact, Inc. (a)(d) | 259,328 | | 7,186 |
LoopNet, Inc. (a) | 468,438 | | 8,704 |
Rackspace Hosting, Inc. (a)(d) | 233,701 | | 10,795 |
SAVVIS, Inc. (a) | 408,451 | | 16,077 |
VeriSign, Inc. | 504,591 | | 18,650 |
Web.com, Inc. (a) | 749,253 | | 11,823 |
| | 73,235 |
IT Services - 1.2% |
Alliance Data Systems Corp. (a)(d) | 103,948 | | 9,875 |
hiSoft Technology International Ltd. ADR (a) | 308,176 | | 5,751 |
Syntel, Inc. | 164,967 | | 9,020 |
| | 24,646 |
Semiconductors & Semiconductor Equipment - 1.9% |
Marvell Technology Group Ltd. (a) | 419,500 | | 6,473 |
Micron Technology, Inc. (a) | 786,912 | | 8,884 |
Power Integrations, Inc. | 151,117 | | 6,096 |
Semtech Corp. (a) | 337,016 | | 9,460 |
TriQuint Semiconductor, Inc. (a) | 766,694 | | 10,557 |
| | 41,470 |
Software - 4.6% |
AutoNavi Holdings Ltd. ADR | 361,700 | | 6,514 |
Blackboard, Inc. (a)(d) | 193,938 | | 9,330 |
BroadSoft, Inc. (a) | 132,000 | | 5,999 |
JDA Software Group, Inc. (a) | 301,891 | | 9,893 |
Kenexa Corp. (a) | 317,835 | | 9,351 |
Micro Focus International PLC | 1,787,393 | | 11,092 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Nuance Communications, Inc. (a) | 425,900 | | $ 8,816 |
Parametric Technology Corp. (a) | 647,970 | | 15,726 |
S1 Corp. (a) | 294,231 | | 2,021 |
SolarWinds, Inc. (a) | 384,500 | | 9,316 |
Synchronoss Technologies, Inc. (a) | 348,456 | | 11,241 |
| | 99,299 |
TOTAL INFORMATION TECHNOLOGY | | 399,265 |
MATERIALS - 5.5% |
Chemicals - 2.6% |
Cabot Corp. | 338,900 | | 15,200 |
Rockwood Holdings, Inc. (a) | 408,500 | | 23,178 |
Solutia, Inc. (a) | 649,900 | | 17,125 |
| | 55,503 |
Construction Materials - 0.3% |
Texas Industries, Inc. (d) | 159,400 | | 6,722 |
Metals & Mining - 2.6% |
Carpenter Technology Corp. | 338,973 | | 17,376 |
Coeur d'Alene Mines Corp. (a) | 416,800 | | 13,217 |
Compass Minerals International, Inc. | 157,000 | | 15,325 |
HudBay Minerals, Inc. | 597,800 | | 9,541 |
| | 55,459 |
TOTAL MATERIALS | | 117,684 |
TELECOMMUNICATION SERVICES - 0.8% |
Diversified Telecommunication Services - 0.5% |
AboveNet, Inc. | 94,707 | | 6,322 |
Global Crossing Ltd. (a) | 71,408 | | 1,670 |
PAETEC Holding Corp. (a) | 985,873 | | 3,549 |
| | 11,541 |
Wireless Telecommunication Services - 0.3% |
Clearwire Corp. Class A (a) | 608,100 | | 2,955 |
NII Holdings, Inc. (a) | 71,943 | | 2,991 |
| | 5,946 |
TOTAL TELECOMMUNICATION SERVICES | | 17,487 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - 2.8% |
Electric Utilities - 1.6% |
Cleco Corp. | 282,700 | | $ 9,923 |
Great Plains Energy, Inc. | 362,600 | | 7,462 |
IDACORP, Inc. | 214,407 | | 8,407 |
Westar Energy, Inc. (d) | 270,700 | | 7,366 |
| | 33,158 |
Gas Utilities - 0.8% |
Northwest Natural Gas Co. | 146,000 | | 6,751 |
Southwest Gas Corp. | 283,800 | | 11,287 |
| | 18,038 |
Multi-Utilities - 0.4% |
NorthWestern Energy Corp. | 272,800 | | 8,880 |
TOTAL UTILITIES | | 60,076 |
TOTAL COMMON STOCKS (Cost $1,565,641) | 2,028,941 |
Convertible Preferred Stocks - 0.1% |
| | | |
HEALTH CARE - 0.1% |
Pharmaceuticals - 0.1% |
Merrimack Pharmaceuticals, Inc. (a)(f) (Cost $2,738) | 391,134 | | 2,738 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.13% 5/12/11 to 6/30/11 (e)
(Cost $2,400) | $ 2,400 | | 2,400 |
Money Market Funds - 6.4% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 98,910,373 | | $ 98,910 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 37,378,925 | | 37,379 |
TOTAL MONEY MARKET FUNDS (Cost $136,289) | 136,289 |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $1,707,068) | | 2,170,368 |
NET OTHER ASSETS (LIABILITIES) - (1.1)% | | (24,122) |
NET ASSETS - 100% | $ 2,146,246 |
Futures Contracts |
| Expiration
Date | | Underlying
Face Amount
at Value (000s) | | Unrealized
Appreciation/
(Depreciation)
(000s) |
Purchased |
Equity Index Contracts |
804 NYFE Russell Mini Index Contracts | June 2011 | | $ 69,458 | | $ 2,035 |
|
The face value of futures purchased as a percentage of net assets is 3.2% |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 $2,400,000. |
(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 $10,525,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Merrimack Pharmaceuticals, Inc. | 3/31/11 | $ 2,738 |
Swisher Hygiene, Inc. | 4/15/11 | $ 7,597 |
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 | $ 43 |
Fidelity Securities Lending Cash Central Fund | 119 |
Total | $ 162 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 286,009 | $ 286,009 | $ - | $ - |
Consumer Staples | 56,173 | 56,173 | - | - |
Energy | 132,441 | 132,441 | - | - |
Financials | 389,338 | 389,338 | - | - |
Health Care | 251,144 | 248,406 | - | 2,738 |
Industrials | 322,062 | 314,275 | 7,787 | - |
Information Technology | 399,265 | 399,265 | - | - |
Materials | 117,684 | 117,684 | - | - |
Telecommunication Services | 17,487 | 17,487 | - | - |
Utilities | 60,076 | 60,076 | - | - |
U.S. Government and Government Agency Obligations | 2,400 | - | 2,400 | - |
Money Market Funds | 136,289 | 136,289 | - | - |
Total Investments in Securities: | $ 2,170,368 | $ 2,157,443 | $ 10,187 | $ 2,738 |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 2,035 | $ 2,035 | $ - | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 2,738 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 2,738 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 2,035 | $ - |
Total Value of Derivatives | $ 2,035 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $519,765,000 of which $190,671,000 and $329,094,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $36,621) - See accompanying schedule: Unaffiliated issuers (cost $1,570,779) | $ 2,034,079 | |
Fidelity Central Funds (cost $136,289) | 136,289 | |
Total Investments (cost $1,707,068) | | $ 2,170,368 |
Cash | | 48 |
Receivable for investments sold | | 18,203 |
Receivable for fund shares sold | | 7,390 |
Dividends receivable | | 960 |
Distributions receivable from Fidelity Central Funds | | 20 |
Receivable for daily variation on futures contracts | | 354 |
Prepaid expenses | | 1 |
Other receivables | | 98 |
Total assets | | 2,197,442 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,756 | |
Payable for fund shares redeemed | 1,680 | |
Accrued management fee | 889 | |
Distribution and service plan fees payable | 3 | |
Other affiliated payables | 455 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 37,379 | |
Total liabilities | | 51,196 |
| | |
Net Assets | | $ 2,146,246 |
Net Assets consist of: | | |
Paid in capital | | $ 2,044,712 |
Distributions in excess of net investment income | | (3,264) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (360,538) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 465,336 |
Net Assets | | $ 2,146,246 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($5,255 ÷ 253.012 shares) | | $ 20.77 |
| | |
Maximum offering price per share (100/94.25 of $20.77) | | $ 22.04 |
Class T:
Net Asset Value and redemption price per share
($1,542 ÷ 74.919 shares) | | $ 20.58 |
| | |
Maximum offering price per share (100/96.50 of $20.58) | | $ 21.33 |
Class B:
Net Asset Value and offering price per share
($308 ÷ 15.146 shares)A | | $ 20.34 |
| | |
Class C:
Net Asset Value and offering price per share
($1,575 ÷ 77.667 shares)A | | $ 20.28 |
| | |
Stock Selector Small Cap:
Net Asset Value, offering price and redemption price per share ($2,111,366 ÷ 100,821.845 shares) | | $ 20.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($26,200 ÷ 1,249.088 shares) | | $ 20.98 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,605 |
Special dividends | | 3,755 |
Interest | | 2 |
Income from Fidelity Central Funds | | 162 |
Total income | | 10,524 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,412 | |
Performance adjustment | (1,261) | |
Transfer agent fees | 2,210 | |
Distribution and service plan fees | 15 | |
Accounting and security lending fees | 280 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 4 | |
Registration fees | 107 | |
Audit | 29 | |
Legal | 4 | |
Miscellaneous | 7 | |
Total expenses before reductions | 6,855 | |
Expense reductions | (88) | 6,767 |
Net investment income (loss) | | 3,757 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 156,991 | |
Foreign currency transactions | (112) | |
Futures contracts | 2,988 | |
Total net realized gain (loss) | | 159,867 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 268,788 | |
Futures contracts | 2,043 | |
Total change in net unrealized appreciation (depreciation) | | 270,831 |
Net gain (loss) | | 430,698 |
Net increase (decrease) in net assets resulting from operations | | $ 434,455 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,757 | $ 3,129 |
Net realized gain (loss) | 159,867 | 280,256 |
Change in net unrealized appreciation (depreciation) | 270,831 | 94,882 |
Net increase (decrease) in net assets resulting
from operations | 434,455 | 378,267 |
Distributions to shareholders from net investment income | (9,149) | (976) |
Share transactions - net increase (decrease) | 309,253 | (349,513) |
Redemption fees | 320 | 175 |
Total increase (decrease) in net assets | 734,879 | 27,953 |
| | |
Net Assets | | |
Beginning of period | 1,411,367 | 1,383,414 |
End of period (including distributions in excess of net investment income of $3,264 and undistributed net investment income of $2,128, respectively) | $ 2,146,246 | $ 1,411,367 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | .01 H | (.01) I | - M | (.04) | (.07) J |
Net realized and unrealized gain (loss) | 4.63 | 3.68 | 1.31 | (10.77) | 1.66 |
Total from investment operations | 4.64 | 3.67 | 1.31 | (10.81) | 1.59 |
Distributions from net investment income | (.07) | - M | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.74) | - |
Total distributions | (.07) | - M | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.77 | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 |
Total Return B, C, D | 28.68% | 29.32% | 11.69% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, L | | | | |
|
Expenses before reductions | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of all reductions | 1.06% A | .99% | 1.01% | 1.23% | 1.26% A |
Net investment income (loss) | .12% A, H | (.07)% I | (.03)% | (.24)% | (.57)% A, J |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 5 | $ 3 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. I 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 (.16)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.01) H | (.05) I | (.03) | (.08) | (.10) J |
Net realized and unrealized gain (loss) | 4.57 | 3.67 | 1.30 | (10.76) | 1.64 |
Total from investment operations | 4.56 | 3.62 | 1.27 | (10.84) | 1.54 |
Distributions from net investment income | (.05) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (2.71) | - |
Total distributions | (.05) | - | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.58 | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 |
Total Return B, C, D | 28.44% | 29.08% | 11.42% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of all reductions | 1.33% A | 1.26% | 1.29% | 1.49% | 1.52% A |
Net investment income (loss) | (.15)% A, H | (.33)% I | (.31)% | (.50)% | (.83)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,542 | $ 723 | $ 550 | $ 409 | $ 420 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I 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 (.43)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.08) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.53 | 3.63 | 1.30 | (10.73) | 1.64 |
Total from investment operations | 4.47 | 3.51 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.34 | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 |
Total Return B, C, D | 28.17% | 28.40% | 10.92% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.82% A | 1.76% | 1.77% | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.82% A | 1.76% | 1.77% | 1.99% | 2.05% A |
Expenses net of all reductions | 1.81% A | 1.75% | 1.75% | 1.99% | 2.04% A |
Net investment income (loss) | (.63)% A, H | (.82)% I | (.78)% | (1.00)% | (1.32)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 308 | $ 220 | $ 219 | $ 199 | $ 419 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.09) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.52 | 3.61 | 1.31 | (10.72) | 1.66 |
Total from investment operations | 4.46 | 3.49 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.28 | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 |
Total Return B, C, D | 28.19% | 28.30% | 10.96% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, L | | | | |
Expenses before reductions | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of all reductions | 1.81% A | 1.74% | 1.75% | 1.99% | 1.97% A |
Net investment income (loss) | (.63)% A, H | (.81)% I | (.77)% | (1.01)% | (1.27)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,575 | $ 820 | $ 428 | $ 183 | $ 294 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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 (.91)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector Small Cap
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 G | .03 H | .02 | .01 | (.04) I | .07 J |
Net realized and unrealized gain (loss) | 4.65 | 3.72 | 1.33 | (10.82) | 5.01 | 2.75 |
Total from investment operations | 4.69 | 3.75 | 1.35 | (10.81) | 4.97 | 2.82 |
Distributions from net investment income | (.10) | (.01) | (.02) | - | (.05) | (.07) |
Distributions from net realized gain | - | - | - | (2.72) | (2.34) | (1.34) |
Total distributions | (.10) | (.01) | (.02) | (2.72) | (2.39) | (1.41) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 20.94 | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 |
Total Return B, C | 28.80% | 29.75% | 12.05% | (48.42)% | 24.42% | 14.08% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .77% A | .73% | .77% | .95% | 1.01% | .86% |
Expenses net of fee waivers, if any | .77% A | .73% | .77% | .95% | 1.00% | .86% |
Expenses net of all reductions | .76% A | .72% | .75% | .94% | .99% | .81% |
Net investment income (loss) | .42% A, G | .21% H | .22% | .05% | (.20)% I | .32% J |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,111 | $ 1,406 | $ 1,379 | $ 1,292 | $ 2,602 | $ 2,623 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% | 126% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .002%. 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 ..12%. I 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)%. J 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)%. K 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. L 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 J |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) D | .04 G | .05 H | .04 | .02 | (.03) I |
Net realized and unrealized gain (loss) | 4.67 | 3.72 | 1.32 | (10.82) | 1.65 |
Total from investment operations | 4.71 | 3.77 | 1.36 | (10.80) | 1.62 |
Distributions from net investment income | (.12) | (.01) | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.73) | - |
Total distributions | (.12) | (.01) | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, L | - | - | - | - | - |
Net asset value, end of period | $ 20.98 | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 |
Total Return B, C | 28.86% | 29.89% | 12.14% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of fee waivers, if any | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of all reductions | .73% A | .62% | .62% | .84% | .93% A |
Net investment income (loss) | .45% A, G | .31% H | .36% | .15% | (.24)% A, I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26,200 | $ 680 | $ 413 | $ 376 | $ 162 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .03%. 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 ..21%. I 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)%. J For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. K 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. L 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, 2011 (Unaudited)
1. Organization.
Fidelity Stock Selector Small Cap 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 C, Stock Selector Small Cap and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. 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 distribution and service plan 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 487,536,122 |
Gross unrealized depreciation | (24,950,520) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 462,585,602 |
| |
Tax cost | $ 1,707,782,069 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $2,987,515 and a change in net unrealized appreciation (depreciation) of $2,042,651 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,946,996 and $638,180,117, respectively.
7. 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 .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 Small Cap as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 5,564 | $ 103 |
Class T | .25% | .25% | 2,668 | 22 |
Class B | .75% | .25% | 1,389 | 1,049 |
Class C | .75% | .25% | 5,624 | 1,671 |
| | | $ 15,245 | $ 2,845 |
Sales Load. FDC may receive 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. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,381 |
Class T | 226 |
Class B* | 131 |
Class C* | 249 |
| $ 1,987 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 6,640 | .30 |
Class T | 1,682 | .32 |
Class B | 419 | .30 |
Class C | 1,671 | .30 |
Stock Selector Small Cap | 2,188,215 | .25 |
Institutional Class | 11,446 | .22 |
| $ 2,210,073 | |
* 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 $37,276 for the period.
Semiannual Report
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $2,930 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $119,487. During the period, there were no securities loaned to FCM.
10. 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 $88,065 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 15,209 | $ 649 |
Class T | 2,838 | - |
Stock Selector Small Cap | 9,104,127 | 974,901 |
Institutional Class | 26,543 | 392 |
Total | $ 9,148,717 | $ 975,942 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 86,051 | 60,233 | $ 1,595,686 | $ 878,328 |
Reinvestment of distributions | 794 | 48 | 14,554 | 635 |
Shares redeemed | (39,550) | (69,529) | (747,630) | (1,022,424) |
Net increase (decrease) | 47,295 | (9,248) | $ 862,610 | $ (143,461) |
Class T | | | | |
Shares sold | 44,797 | 27,634 | $ 846,704 | $ 398,291 |
Reinvestment of distributions | 154 | - | 2,831 | - |
Shares redeemed | (15,050) | (26,782) | (279,920) | (382,007) |
Net increase (decrease) | 29,901 | 852 | $ 569,615 | $ 16,284 |
Class B | | | | |
Shares sold | 3,705 | 2,875 | $ 66,746 | $ 40,053 |
Shares redeemed | (2,435) | (6,748) | (43,934) | (94,173) |
Net increase (decrease) | 1,270 | (3,873) | $ 22,812 | $ (54,120) |
Class C | | | | |
Shares sold | 33,059 | 24,030 | $ 618,177 | $ 347,201 |
Shares redeemed | (7,238) | (6,890) | (130,986) | (99,553) |
Net increase (decrease) | 25,821 | 17,140 | $ 487,191 | $ 247,648 |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Stock Selector Small Cap | | | | |
Shares sold | 29,176,508 | 14,958,012 | $ 553,189,012 | $ 219,809,002 |
Reinvestment of distributions | 490,500 | 72,340 | 8,965,189 | 962,840 |
Shares redeemed | (14,831,493) | (38,394,961) | (277,854,186) | (570,480,008) |
Net increase (decrease) | 14,835,515 | (23,364,609) | $ 284,300,015 | $ (349,708,166) |
Institutional Class | | | | |
Shares sold | 1,210,463 | 13,011 | $ 23,065,968 | $ 190,234 |
Reinvestment of distributions | 1,209 | 4 | 22,526 | 53 |
Shares redeemed | (4,092) | (4,160) | (76,755) | (62,596) |
Net increase (decrease) | 1,207,580 | 8,855 | $ 23,011,739 | $ 127,691 |
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 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
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
SCS-USAN-0611
1.784915.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Stock Selector Small Cap
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2011
Class A, Class T, Class B,
and Class C are classes of
Fidelity® Stock Selector
Small Cap Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/proxyvotingresults 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, 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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.07% | | | |
Actual | | $ 1,000.00 | $ 1,286.80 | $ 6.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.49 | $ 5.36 |
Class T | 1.34% | | | |
Actual | | $ 1,000.00 | $ 1,284.40 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 6.71 |
Class B | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.70 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Class C | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.90 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Stock Selector Small Cap | .77% | | | |
Actual | | $ 1,000.00 | $ 1,288.00 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,020.98 | $ 3.86 |
Institutional Class | .74% | | | |
Actual | | $ 1,000.00 | $ 1,288.60 | $ 4.20 |
HypotheticalA | | $ 1,000.00 | $ 1,021.12 | $ 3.71 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Waddell & Reed Financial, Inc. Class A | 1.1 | 1.0 |
Rockwood Holdings, Inc. | 1.1 | 0.9 |
Forestar Group, Inc. | 1.1 | 1.1 |
National Penn Bancshares, Inc. | 1.1 | 1.0 |
G-III Apparel Group Ltd. | 1.1 | 0.9 |
Franklin Street Properties Corp. | 1.0 | 1.0 |
Tempur-Pedic International, Inc. | 1.0 | 1.0 |
General Cable Corp. | 1.0 | 0.7 |
CapitalSource, Inc. | 0.9 | 1.1 |
Watsco, Inc. | 0.9 | 0.0 |
| 10.3 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.6 | 21.0 |
Financials | 18.1 | 19.9 |
Industrials | 15.0 | 13.8 |
Consumer Discretionary | 13.3 | 14.2 |
Health Care | 11.7 | 12.1 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks and
Equity Futures 97.7% | | | Stocks and
Equity Futures 99.0% | |
| Convertible
Securities 0.1% | | | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 2.2% | | | Short-Term
Investments and
Net Other Assets 1.0% | |
* Foreign investments | 8.3% | | ** Foreign investments | 7.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 13.3% |
Auto Components - 0.9% |
Tenneco, Inc. (a) | 405,814 | | $ 18,753 |
Hotels, Restaurants & Leisure - 1.6% |
Cracker Barrel Old Country Store, Inc. | 127,621 | | 6,538 |
Vail Resorts, Inc. (a) | 211,700 | | 10,371 |
WMS Industries, Inc. (a) | 176,900 | | 5,802 |
Wyndham Worldwide Corp. | 358,315 | | 12,401 |
| | 35,112 |
Household Durables - 2.8% |
iRobot Corp. (a) | 342,370 | | 12,127 |
La-Z-Boy, Inc. (a) | 629,310 | | 7,401 |
Meritage Homes Corp. (a) | 448,000 | | 10,712 |
Mohawk Industries, Inc. (a) | 133,500 | | 8,015 |
Tempur-Pedic International, Inc. (a) | 332,194 | | 20,855 |
| | 59,110 |
Media - 0.8% |
Lamar Advertising Co. Class A (a) | 287,900 | | 9,363 |
MDC Partners, Inc. Class A (sub. vtg.) | 491,300 | | 8,170 |
| | 17,533 |
Multiline Retail - 1.1% |
Dollarama, Inc. (a) | 282,934 | | 8,867 |
Retail Ventures, Inc. (a) | 746,416 | | 15,324 |
| | 24,191 |
Specialty Retail - 4.0% |
Ascena Retail Group, Inc. (a) | 404,580 | | 12,659 |
Cabela's, Inc. Class A (a)(d) | 597,362 | | 15,257 |
Fourlis Holdings SA | 590,130 | | 4,851 |
GameStop Corp. Class A (a) | 335,000 | | 8,603 |
Shoe Carnival, Inc. (a) | 532,247 | | 15,579 |
Signet Jewelers Ltd. (a) | 338,800 | | 14,823 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 270,992 | | 14,414 |
| | 86,186 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 106,167 | | 9,009 |
G-III Apparel Group Ltd. (a) | 505,900 | | 22,695 |
Phillips-Van Heusen Corp. | 190,600 | | 13,420 |
| | 45,124 |
TOTAL CONSUMER DISCRETIONARY | | 286,009 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 2.6% |
Beverages - 0.3% |
Hansen Natural Corp. (a) | 110,800 | | $ 7,329 |
Food & Staples Retailing - 0.6% |
BJ's Wholesale Club, Inc. (a) | 138,200 | | 7,092 |
United Natural Foods, Inc. (a) | 151,845 | | 6,482 |
| | 13,574 |
Food Products - 1.0% |
Chiquita Brands International, Inc. (a) | 308,070 | | 4,904 |
Diamond Foods, Inc. (d) | 60,200 | | 3,949 |
Green Mountain Coffee Roasters, Inc. (a) | 184,503 | | 12,354 |
| | 21,207 |
Personal Products - 0.7% |
Elizabeth Arden, Inc. (a) | 370,155 | | 11,127 |
Nutraceutical International Corp. (a) | 185,112 | | 2,936 |
| | 14,063 |
TOTAL CONSUMER STAPLES | | 56,173 |
ENERGY - 6.2% |
Energy Equipment & Services - 1.6% |
Newpark Resources, Inc. (a) | 1,032,272 | | 9,321 |
Superior Energy Services, Inc. (a) | 323,300 | | 12,421 |
Willbros Group, Inc. (a) | 1,151,900 | | 12,383 |
| | 34,125 |
Oil, Gas & Consumable Fuels - 4.6% |
Atlas Pipeline Partners, LP | 388,813 | | 14,371 |
Berry Petroleum Co. Class A | 302,800 | | 16,088 |
Cloud Peak Energy, Inc. (a) | 574,600 | | 11,963 |
Petroleum Development Corp. (a) | 404,250 | | 16,097 |
SM Energy Co. | 217,436 | | 16,495 |
Targa Resources Corp. | 254,500 | | 8,913 |
Whiting Petroleum Corp. (a) | 207,030 | | 14,389 |
| | 98,316 |
TOTAL ENERGY | | 132,441 |
FINANCIALS - 18.1% |
Capital Markets - 3.0% |
Affiliated Managers Group, Inc. (a) | 172,000 | | 18,762 |
Artio Global Investors, Inc. Class A | 144,826 | | 2,379 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
Duff & Phelps Corp. Class A | 567,782 | | $ 8,738 |
Gimv NV | 102,300 | | 6,782 |
optionsXpress Holdings, Inc. | 195,299 | | 3,601 |
Waddell & Reed Financial, Inc. Class A | 601,400 | | 24,659 |
| | 64,921 |
Commercial Banks - 4.7% |
Associated Banc-Corp. | 963,423 | | 14,066 |
CapitalSource, Inc. | 3,018,800 | | 20,166 |
Cathay General Bancorp | 627,376 | | 10,697 |
City National Corp. | 291,300 | | 16,636 |
National Penn Bancshares, Inc. | 2,781,400 | | 22,835 |
PacWest Bancorp | 602,600 | | 13,854 |
TCF Financial Corp. | 221,371 | | 3,451 |
| | 101,705 |
Insurance - 3.0% |
Alterra Capital Holdings Ltd. | 665,500 | | 14,628 |
Amerisafe, Inc. (a) | 844,100 | | 18,849 |
Endurance Specialty Holdings Ltd. | 321,300 | | 14,246 |
Platinum Underwriters Holdings Ltd. | 410,000 | | 15,502 |
| | 63,225 |
Real Estate Investment Trusts - 4.4% |
American Assets Trust, Inc. | 600,300 | | 13,255 |
Franklin Street Properties Corp. | 1,521,700 | | 21,517 |
Highwoods Properties, Inc. (SBI) | 443,600 | | 16,369 |
Home Properties, Inc. | 237,731 | | 15,072 |
National Retail Properties, Inc. (d) | 481,000 | | 12,670 |
Ramco-Gershenson Properties Trust (SBI) | 1,245,300 | | 16,052 |
| | 94,935 |
Real Estate Management & Development - 1.4% |
Forestar Group, Inc. (a) | 1,166,600 | | 22,947 |
Jones Lang LaSalle, Inc. | 70,500 | | 7,218 |
| | 30,165 |
Thrifts & Mortgage Finance - 1.6% |
Astoria Financial Corp. | 938,700 | | 13,583 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - continued |
Washington Federal, Inc. | 978,600 | | $ 15,746 |
WSFS Financial Corp. | 112,483 | | 5,058 |
| | 34,387 |
TOTAL FINANCIALS | | 389,338 |
HEALTH CARE - 11.6% |
Biotechnology - 2.8% |
Achillion Pharmaceuticals, Inc. (a) | 343,600 | | 1,917 |
Amarin Corp. PLC ADR (a) | 234,277 | | 3,748 |
Ardea Biosciences, Inc. (a) | 193,205 | | 5,477 |
ARIAD Pharmaceuticals, Inc. (a) | 757,418 | | 6,476 |
ArQule, Inc. (a) | 509,458 | | 3,597 |
BioMarin Pharmaceutical, Inc. (a) | 136,506 | | 3,671 |
Chelsea Therapeutics International Ltd. (a) | 665,563 | | 3,135 |
Dynavax Technologies Corp. (a) | 1,613,741 | | 4,486 |
Pharmasset, Inc. (a) | 72,701 | | 7,377 |
QLT, Inc. (a) | 152,000 | | 1,239 |
SIGA Technologies, Inc. (a)(d) | 362,276 | | 4,974 |
Targacept, Inc. (a) | 137,359 | | 3,321 |
Telik, Inc. (a) | 1,142,150 | | 1,028 |
Theravance, Inc. (a) | 200,981 | | 5,577 |
ZIOPHARM Oncology, Inc. (a) | 632,333 | | 4,780 |
| | 60,803 |
Health Care Equipment & Supplies - 1.2% |
Analogic Corp. | 127,217 | | 7,337 |
Masimo Corp. | 183,237 | | 6,375 |
Sirona Dental Systems, Inc. (a) | 189,100 | | 10,792 |
| | 24,504 |
Health Care Providers & Services - 6.1% |
Accretive Health, Inc. | 386,000 | | 10,901 |
Air Methods Corp. (a) | 102,640 | | 6,941 |
Catalyst Health Solutions, Inc. (a) | 175,091 | | 10,428 |
Centene Corp. (a) | 241,892 | | 8,764 |
Corvel Corp. (a) | 116,800 | | 6,050 |
Epocrates, Inc. (a) | 316,425 | | 7,404 |
Health Management Associates, Inc. Class A (a) | 663,938 | | 7,489 |
Healthspring, Inc. (a) | 235,825 | | 9,784 |
HMS Holdings Corp. (a) | 88,214 | | 6,943 |
Humana, Inc. | 129,228 | | 9,837 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
MWI Veterinary Supply, Inc. (a) | 70,382 | | $ 5,854 |
Omnicare, Inc. | 186,907 | | 5,873 |
PSS World Medical, Inc. (a) | 501,831 | | 14,433 |
The Ensign Group, Inc. | 201,362 | | 5,570 |
Universal Health Services, Inc. Class B | 156,700 | | 8,584 |
Wellcare Health Plans, Inc. (a) | 158,025 | | 6,923 |
| | 131,778 |
Life Sciences Tools & Services - 0.6% |
eResearchTechnology, Inc. (a) | 815,102 | | 5,184 |
Illumina, Inc. (a) | 97,200 | | 6,899 |
| | 12,083 |
Pharmaceuticals - 0.9% |
Cardiome Pharma Corp. (a) | 433,357 | | 2,359 |
Columbia Laboratories, Inc. (a) | 708,568 | | 2,473 |
Endocyte, Inc. | 177,000 | | 2,151 |
Questcor Pharmaceuticals, Inc. (a) | 398,669 | | 8,173 |
XenoPort, Inc. (a) | 499,000 | | 4,082 |
| | 19,238 |
TOTAL HEALTH CARE | | 248,406 |
INDUSTRIALS - 15.0% |
Aerospace & Defense - 0.9% |
Teledyne Technologies, Inc. (a) | 360,042 | | 18,179 |
Air Freight & Logistics - 0.6% |
UTI Worldwide, Inc. | 558,300 | | 12,512 |
Building Products - 1.8% |
A.O. Smith Corp. | 365,889 | | 16,088 |
AAON, Inc. | 346,100 | | 11,369 |
Armstrong World Industries, Inc. | 271,158 | | 12,134 |
| | 39,591 |
Commercial Services & Supplies - 1.6% |
Swisher Hygiene, Inc. (a)(f) | 986,560 | | 7,787 |
Swisher Hygiene, Inc. (Canada) (a) | 7,600 | | 67 |
Sykes Enterprises, Inc. (a) | 638,202 | | 12,783 |
United Stationers, Inc. | 190,442 | | 13,723 |
| | 34,360 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.0% |
Foster Wheeler AG (a) | 370,872 | | $ 13,192 |
Shaw Group, Inc. (a) | 238,387 | | 9,273 |
| | 22,465 |
Electrical Equipment - 2.2% |
General Cable Corp. (a) | 419,915 | | 20,366 |
GrafTech International Ltd. (a) | 684,247 | | 15,875 |
Regal-Beloit Corp. | 151,600 | | 11,490 |
| | 47,731 |
Industrial Conglomerates - 0.6% |
Carlisle Companies, Inc. | 239,100 | | 11,845 |
Machinery - 3.5% |
Accuride Corp. (a) | 904,551 | | 12,528 |
Actuant Corp. Class A | 501,721 | | 13,928 |
Altra Holdings, Inc. (a) | 441,487 | | 11,209 |
CLARCOR, Inc. | 308,114 | | 13,924 |
John Bean Technologies Corp. | 524,300 | | 10,596 |
Wabtec Corp. | 170,429 | | 12,165 |
| | 74,350 |
Professional Services - 0.4% |
Advisory Board Co. (a) | 195,038 | | 9,112 |
Road & Rail - 0.5% |
Kansas City Southern (a) | 191,100 | | 11,105 |
Trading Companies & Distributors - 1.9% |
Interline Brands, Inc. (a) | 585,707 | | 12,370 |
Watsco, Inc. | 267,723 | | 18,979 |
WESCO International, Inc. (a) | 152,745 | | 9,463 |
| | 40,812 |
TOTAL INDUSTRIALS | | 322,062 |
INFORMATION TECHNOLOGY - 18.6% |
Communications Equipment - 2.9% |
Aruba Networks, Inc. (a) | 147,190 | | 5,289 |
Comtech Telecommunications Corp. | 345,447 | | 9,776 |
DG FastChannel, Inc. (a) | 318,771 | | 11,664 |
Ixia (a) | 924,592 | | 15,108 |
NETGEAR, Inc. (a) | 312,053 | | 13,028 |
Oclaro, Inc. (a) | 686,715 | | 7,702 |
| | 62,567 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 3.6% |
Lexmark International, Inc. Class A (a) | 236,500 | | $ 7,627 |
NCR Corp. (a) | 531,000 | | 10,519 |
OCZ Technology Group, Inc. (a)(d) | 440,271 | | 3,615 |
Quantum Corp. (a) | 5,772,954 | | 18,358 |
STEC, Inc. (a) | 354,054 | | 7,407 |
Super Micro Computer, Inc. (a) | 773,947 | | 13,204 |
Synaptics, Inc. (a)(d) | 576,880 | | 16,395 |
| | 77,125 |
Electronic Equipment & Components - 1.0% |
Fabrinet (a) | 507,054 | | 11,688 |
Plexus Corp. (a) | 253,078 | | 9,235 |
| | 20,923 |
Internet Software & Services - 3.4% |
Constant Contact, Inc. (a)(d) | 259,328 | | 7,186 |
LoopNet, Inc. (a) | 468,438 | | 8,704 |
Rackspace Hosting, Inc. (a)(d) | 233,701 | | 10,795 |
SAVVIS, Inc. (a) | 408,451 | | 16,077 |
VeriSign, Inc. | 504,591 | | 18,650 |
Web.com, Inc. (a) | 749,253 | | 11,823 |
| | 73,235 |
IT Services - 1.2% |
Alliance Data Systems Corp. (a)(d) | 103,948 | | 9,875 |
hiSoft Technology International Ltd. ADR (a) | 308,176 | | 5,751 |
Syntel, Inc. | 164,967 | | 9,020 |
| | 24,646 |
Semiconductors & Semiconductor Equipment - 1.9% |
Marvell Technology Group Ltd. (a) | 419,500 | | 6,473 |
Micron Technology, Inc. (a) | 786,912 | | 8,884 |
Power Integrations, Inc. | 151,117 | | 6,096 |
Semtech Corp. (a) | 337,016 | | 9,460 |
TriQuint Semiconductor, Inc. (a) | 766,694 | | 10,557 |
| | 41,470 |
Software - 4.6% |
AutoNavi Holdings Ltd. ADR | 361,700 | | 6,514 |
Blackboard, Inc. (a)(d) | 193,938 | | 9,330 |
BroadSoft, Inc. (a) | 132,000 | | 5,999 |
JDA Software Group, Inc. (a) | 301,891 | | 9,893 |
Kenexa Corp. (a) | 317,835 | | 9,351 |
Micro Focus International PLC | 1,787,393 | | 11,092 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Nuance Communications, Inc. (a) | 425,900 | | $ 8,816 |
Parametric Technology Corp. (a) | 647,970 | | 15,726 |
S1 Corp. (a) | 294,231 | | 2,021 |
SolarWinds, Inc. (a) | 384,500 | | 9,316 |
Synchronoss Technologies, Inc. (a) | 348,456 | | 11,241 |
| | 99,299 |
TOTAL INFORMATION TECHNOLOGY | | 399,265 |
MATERIALS - 5.5% |
Chemicals - 2.6% |
Cabot Corp. | 338,900 | | 15,200 |
Rockwood Holdings, Inc. (a) | 408,500 | | 23,178 |
Solutia, Inc. (a) | 649,900 | | 17,125 |
| | 55,503 |
Construction Materials - 0.3% |
Texas Industries, Inc. (d) | 159,400 | | 6,722 |
Metals & Mining - 2.6% |
Carpenter Technology Corp. | 338,973 | | 17,376 |
Coeur d'Alene Mines Corp. (a) | 416,800 | | 13,217 |
Compass Minerals International, Inc. | 157,000 | | 15,325 |
HudBay Minerals, Inc. | 597,800 | | 9,541 |
| | 55,459 |
TOTAL MATERIALS | | 117,684 |
TELECOMMUNICATION SERVICES - 0.8% |
Diversified Telecommunication Services - 0.5% |
AboveNet, Inc. | 94,707 | | 6,322 |
Global Crossing Ltd. (a) | 71,408 | | 1,670 |
PAETEC Holding Corp. (a) | 985,873 | | 3,549 |
| | 11,541 |
Wireless Telecommunication Services - 0.3% |
Clearwire Corp. Class A (a) | 608,100 | | 2,955 |
NII Holdings, Inc. (a) | 71,943 | | 2,991 |
| | 5,946 |
TOTAL TELECOMMUNICATION SERVICES | | 17,487 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - 2.8% |
Electric Utilities - 1.6% |
Cleco Corp. | 282,700 | | $ 9,923 |
Great Plains Energy, Inc. | 362,600 | | 7,462 |
IDACORP, Inc. | 214,407 | | 8,407 |
Westar Energy, Inc. (d) | 270,700 | | 7,366 |
| | 33,158 |
Gas Utilities - 0.8% |
Northwest Natural Gas Co. | 146,000 | | 6,751 |
Southwest Gas Corp. | 283,800 | | 11,287 |
| | 18,038 |
Multi-Utilities - 0.4% |
NorthWestern Energy Corp. | 272,800 | | 8,880 |
TOTAL UTILITIES | | 60,076 |
TOTAL COMMON STOCKS (Cost $1,565,641) | 2,028,941 |
Convertible Preferred Stocks - 0.1% |
| | | |
HEALTH CARE - 0.1% |
Pharmaceuticals - 0.1% |
Merrimack Pharmaceuticals, Inc. (a)(f) (Cost $2,738) | 391,134 | | 2,738 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.13% 5/12/11 to 6/30/11 (e)
(Cost $2,400) | $ 2,400 | | 2,400 |
Money Market Funds - 6.4% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 98,910,373 | | $ 98,910 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 37,378,925 | | 37,379 |
TOTAL MONEY MARKET FUNDS (Cost $136,289) | 136,289 |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $1,707,068) | | 2,170,368 |
NET OTHER ASSETS (LIABILITIES) - (1.1)% | | (24,122) |
NET ASSETS - 100% | $ 2,146,246 |
Futures Contracts |
| Expiration
Date | | Underlying
Face Amount
at Value (000s) | | Unrealized
Appreciation/
(Depreciation)
(000s) |
Purchased |
Equity Index Contracts |
804 NYFE Russell Mini Index Contracts | June 2011 | | $ 69,458 | | $ 2,035 |
|
The face value of futures purchased as a percentage of net assets is 3.2% |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 $2,400,000. |
(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 $10,525,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Merrimack Pharmaceuticals, Inc. | 3/31/11 | $ 2,738 |
Swisher Hygiene, Inc. | 4/15/11 | $ 7,597 |
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 | $ 43 |
Fidelity Securities Lending Cash Central Fund | 119 |
Total | $ 162 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 286,009 | $ 286,009 | $ - | $ - |
Consumer Staples | 56,173 | 56,173 | - | - |
Energy | 132,441 | 132,441 | - | - |
Financials | 389,338 | 389,338 | - | - |
Health Care | 251,144 | 248,406 | - | 2,738 |
Industrials | 322,062 | 314,275 | 7,787 | - |
Information Technology | 399,265 | 399,265 | - | - |
Materials | 117,684 | 117,684 | - | - |
Telecommunication Services | 17,487 | 17,487 | - | - |
Utilities | 60,076 | 60,076 | - | - |
U.S. Government and Government Agency Obligations | 2,400 | - | 2,400 | - |
Money Market Funds | 136,289 | 136,289 | - | - |
Total Investments in Securities: | $ 2,170,368 | $ 2,157,443 | $ 10,187 | $ 2,738 |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 2,035 | $ 2,035 | $ - | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 2,738 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 2,738 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 2,035 | $ - |
Total Value of Derivatives | $ 2,035 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $519,765,000 of which $190,671,000 and $329,094,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $36,621) - See accompanying schedule: Unaffiliated issuers (cost $1,570,779) | $ 2,034,079 | |
Fidelity Central Funds (cost $136,289) | 136,289 | |
Total Investments (cost $1,707,068) | | $ 2,170,368 |
Cash | | 48 |
Receivable for investments sold | | 18,203 |
Receivable for fund shares sold | | 7,390 |
Dividends receivable | | 960 |
Distributions receivable from Fidelity Central Funds | | 20 |
Receivable for daily variation on futures contracts | | 354 |
Prepaid expenses | | 1 |
Other receivables | | 98 |
Total assets | | 2,197,442 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,756 | |
Payable for fund shares redeemed | 1,680 | |
Accrued management fee | 889 | |
Distribution and service plan fees payable | 3 | |
Other affiliated payables | 455 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 37,379 | |
Total liabilities | | 51,196 |
| | |
Net Assets | | $ 2,146,246 |
Net Assets consist of: | | |
Paid in capital | | $ 2,044,712 |
Distributions in excess of net investment income | | (3,264) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (360,538) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 465,336 |
Net Assets | | $ 2,146,246 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($5,255 ÷ 253.012 shares) | | $ 20.77 |
| | |
Maximum offering price per share (100/94.25 of $20.77) | | $ 22.04 |
Class T:
Net Asset Value and redemption price per share
($1,542 ÷ 74.919 shares) | | $ 20.58 |
| | |
Maximum offering price per share (100/96.50 of $20.58) | | $ 21.33 |
Class B:
Net Asset Value and offering price per share
($308 ÷ 15.146 shares)A | | $ 20.34 |
| | |
Class C:
Net Asset Value and offering price per share
($1,575 ÷ 77.667 shares)A | | $ 20.28 |
| | |
Stock Selector Small Cap:
Net Asset Value, offering price and redemption price per share ($2,111,366 ÷ 100,821.845 shares) | | $ 20.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($26,200 ÷ 1,249.088 shares) | | $ 20.98 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,605 |
Special dividends | | 3,755 |
Interest | | 2 |
Income from Fidelity Central Funds | | 162 |
Total income | | 10,524 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,412 | |
Performance adjustment | (1,261) | |
Transfer agent fees | 2,210 | |
Distribution and service plan fees | 15 | |
Accounting and security lending fees | 280 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 4 | |
Registration fees | 107 | |
Audit | 29 | |
Legal | 4 | |
Miscellaneous | 7 | |
Total expenses before reductions | 6,855 | |
Expense reductions | (88) | 6,767 |
Net investment income (loss) | | 3,757 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 156,991 | |
Foreign currency transactions | (112) | |
Futures contracts | 2,988 | |
Total net realized gain (loss) | | 159,867 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 268,788 | |
Futures contracts | 2,043 | |
Total change in net unrealized appreciation (depreciation) | | 270,831 |
Net gain (loss) | | 430,698 |
Net increase (decrease) in net assets resulting from operations | | $ 434,455 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,757 | $ 3,129 |
Net realized gain (loss) | 159,867 | 280,256 |
Change in net unrealized appreciation (depreciation) | 270,831 | 94,882 |
Net increase (decrease) in net assets resulting
from operations | 434,455 | 378,267 |
Distributions to shareholders from net investment income | (9,149) | (976) |
Share transactions - net increase (decrease) | 309,253 | (349,513) |
Redemption fees | 320 | 175 |
Total increase (decrease) in net assets | 734,879 | 27,953 |
| | |
Net Assets | | |
Beginning of period | 1,411,367 | 1,383,414 |
End of period (including distributions in excess of net investment income of $3,264 and undistributed net investment income of $2,128, respectively) | $ 2,146,246 | $ 1,411,367 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | .01 H | (.01) I | - M | (.04) | (.07) J |
Net realized and unrealized gain (loss) | 4.63 | 3.68 | 1.31 | (10.77) | 1.66 |
Total from investment operations | 4.64 | 3.67 | 1.31 | (10.81) | 1.59 |
Distributions from net investment income | (.07) | - M | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.74) | - |
Total distributions | (.07) | - M | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.77 | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 |
Total Return B, C, D | 28.68% | 29.32% | 11.69% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, L | | | | |
|
Expenses before reductions | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of all reductions | 1.06% A | .99% | 1.01% | 1.23% | 1.26% A |
Net investment income (loss) | .12% A, H | (.07)% I | (.03)% | (.24)% | (.57)% A, J |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 5 | $ 3 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. I 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 (.16)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.01) H | (.05) I | (.03) | (.08) | (.10) J |
Net realized and unrealized gain (loss) | 4.57 | 3.67 | 1.30 | (10.76) | 1.64 |
Total from investment operations | 4.56 | 3.62 | 1.27 | (10.84) | 1.54 |
Distributions from net investment income | (.05) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (2.71) | - |
Total distributions | (.05) | - | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.58 | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 |
Total Return B, C, D | 28.44% | 29.08% | 11.42% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of all reductions | 1.33% A | 1.26% | 1.29% | 1.49% | 1.52% A |
Net investment income (loss) | (.15)% A, H | (.33)% I | (.31)% | (.50)% | (.83)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,542 | $ 723 | $ 550 | $ 409 | $ 420 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I 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 (.43)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.08) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.53 | 3.63 | 1.30 | (10.73) | 1.64 |
Total from investment operations | 4.47 | 3.51 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.34 | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 |
Total Return B, C, D | 28.17% | 28.40% | 10.92% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.82% A | 1.76% | 1.77% | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.82% A | 1.76% | 1.77% | 1.99% | 2.05% A |
Expenses net of all reductions | 1.81% A | 1.75% | 1.75% | 1.99% | 2.04% A |
Net investment income (loss) | (.63)% A, H | (.82)% I | (.78)% | (1.00)% | (1.32)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 308 | $ 220 | $ 219 | $ 199 | $ 419 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.09) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.52 | 3.61 | 1.31 | (10.72) | 1.66 |
Total from investment operations | 4.46 | 3.49 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.28 | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 |
Total Return B, C, D | 28.19% | 28.30% | 10.96% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, L | | | | |
Expenses before reductions | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of all reductions | 1.81% A | 1.74% | 1.75% | 1.99% | 1.97% A |
Net investment income (loss) | (.63)% A, H | (.81)% I | (.77)% | (1.01)% | (1.27)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,575 | $ 820 | $ 428 | $ 183 | $ 294 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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 (.91)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector Small Cap
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 G | .03 H | .02 | .01 | (.04) I | .07 J |
Net realized and unrealized gain (loss) | 4.65 | 3.72 | 1.33 | (10.82) | 5.01 | 2.75 |
Total from investment operations | 4.69 | 3.75 | 1.35 | (10.81) | 4.97 | 2.82 |
Distributions from net investment income | (.10) | (.01) | (.02) | - | (.05) | (.07) |
Distributions from net realized gain | - | - | - | (2.72) | (2.34) | (1.34) |
Total distributions | (.10) | (.01) | (.02) | (2.72) | (2.39) | (1.41) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 20.94 | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 |
Total Return B, C | 28.80% | 29.75% | 12.05% | (48.42)% | 24.42% | 14.08% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .77% A | .73% | .77% | .95% | 1.01% | .86% |
Expenses net of fee waivers, if any | .77% A | .73% | .77% | .95% | 1.00% | .86% |
Expenses net of all reductions | .76% A | .72% | .75% | .94% | .99% | .81% |
Net investment income (loss) | .42% A, G | .21% H | .22% | .05% | (.20)% I | .32% J |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,111 | $ 1,406 | $ 1,379 | $ 1,292 | $ 2,602 | $ 2,623 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% | 126% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .002%. 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 ..12%. I 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)%. J 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)%. K 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. L 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 J |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) D | .04 G | .05 H | .04 | .02 | (.03) I |
Net realized and unrealized gain (loss) | 4.67 | 3.72 | 1.32 | (10.82) | 1.65 |
Total from investment operations | 4.71 | 3.77 | 1.36 | (10.80) | 1.62 |
Distributions from net investment income | (.12) | (.01) | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.73) | - |
Total distributions | (.12) | (.01) | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, L | - | - | - | - | - |
Net asset value, end of period | $ 20.98 | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 |
Total Return B, C | 28.86% | 29.89% | 12.14% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of fee waivers, if any | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of all reductions | .73% A | .62% | .62% | .84% | .93% A |
Net investment income (loss) | .45% A, G | .31% H | .36% | .15% | (.24)% A, I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26,200 | $ 680 | $ 413 | $ 376 | $ 162 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .03%. 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 ..21%. I 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)%. J For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. K 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. L 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, 2011 (Unaudited)
1. Organization.
Fidelity Stock Selector Small Cap 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 C, Stock Selector Small Cap and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. 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 distribution and service plan 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 487,536,122 |
Gross unrealized depreciation | (24,950,520) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 462,585,602 |
| |
Tax cost | $ 1,707,782,069 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $2,987,515 and a change in net unrealized appreciation (depreciation) of $2,042,651 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,946,996 and $638,180,117, respectively.
7. 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 .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 Small Cap as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 5,564 | $ 103 |
Class T | .25% | .25% | 2,668 | 22 |
Class B | .75% | .25% | 1,389 | 1,049 |
Class C | .75% | .25% | 5,624 | 1,671 |
| | | $ 15,245 | $ 2,845 |
Sales Load. FDC may receive 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. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,381 |
Class T | 226 |
Class B* | 131 |
Class C* | 249 |
| $ 1,987 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 6,640 | .30 |
Class T | 1,682 | .32 |
Class B | 419 | .30 |
Class C | 1,671 | .30 |
Stock Selector Small Cap | 2,188,215 | .25 |
Institutional Class | 11,446 | .22 |
| $ 2,210,073 | |
* 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 $37,276 for the period.
Semiannual Report
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $2,930 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $119,487. During the period, there were no securities loaned to FCM.
10. 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 $88,065 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 15,209 | $ 649 |
Class T | 2,838 | - |
Stock Selector Small Cap | 9,104,127 | 974,901 |
Institutional Class | 26,543 | 392 |
Total | $ 9,148,717 | $ 975,942 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 86,051 | 60,233 | $ 1,595,686 | $ 878,328 |
Reinvestment of distributions | 794 | 48 | 14,554 | 635 |
Shares redeemed | (39,550) | (69,529) | (747,630) | (1,022,424) |
Net increase (decrease) | 47,295 | (9,248) | $ 862,610 | $ (143,461) |
Class T | | | | |
Shares sold | 44,797 | 27,634 | $ 846,704 | $ 398,291 |
Reinvestment of distributions | 154 | - | 2,831 | - |
Shares redeemed | (15,050) | (26,782) | (279,920) | (382,007) |
Net increase (decrease) | 29,901 | 852 | $ 569,615 | $ 16,284 |
Class B | | | | |
Shares sold | 3,705 | 2,875 | $ 66,746 | $ 40,053 |
Shares redeemed | (2,435) | (6,748) | (43,934) | (94,173) |
Net increase (decrease) | 1,270 | (3,873) | $ 22,812 | $ (54,120) |
Class C | | | | |
Shares sold | 33,059 | 24,030 | $ 618,177 | $ 347,201 |
Shares redeemed | (7,238) | (6,890) | (130,986) | (99,553) |
Net increase (decrease) | 25,821 | 17,140 | $ 487,191 | $ 247,648 |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Stock Selector Small Cap | | | | |
Shares sold | 29,176,508 | 14,958,012 | $ 553,189,012 | $ 219,809,002 |
Reinvestment of distributions | 490,500 | 72,340 | 8,965,189 | 962,840 |
Shares redeemed | (14,831,493) | (38,394,961) | (277,854,186) | (570,480,008) |
Net increase (decrease) | 14,835,515 | (23,364,609) | $ 284,300,015 | $ (349,708,166) |
Institutional Class | | | | |
Shares sold | 1,210,463 | 13,011 | $ 23,065,968 | $ 190,234 |
Reinvestment of distributions | 1,209 | 4 | 22,526 | 53 |
Shares redeemed | (4,092) | (4,160) | (76,755) | (62,596) |
Net increase (decrease) | 1,207,580 | 8,855 | $ 23,011,739 | $ 127,691 |
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 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
ASCS-USAN-0611
1.843153.103
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Stock Selector Small Cap
Fund - Institutional Class
Semiannual Report
April 30, 2011
Institutional Class is a
class of Fidelity® Stock Selector Small Cap Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/proxyvotingresults 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, 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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized
Expense Ratio | Beginning
Account Value
November 1, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010
to April 30, 2011 |
Class A | 1.07% | | | |
Actual | | $ 1,000.00 | $ 1,286.80 | $ 6.07 |
HypotheticalA | | $ 1,000.00 | $ 1,019.49 | $ 5.36 |
Class T | 1.34% | | | |
Actual | | $ 1,000.00 | $ 1,284.40 | $ 7.59 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 6.71 |
Class B | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.70 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Class C | 1.82% | | | |
Actual | | $ 1,000.00 | $ 1,281.90 | $ 10.30 |
HypotheticalA | | $ 1,000.00 | $ 1,015.77 | $ 9.10 |
Stock Selector Small Cap | .77% | | | |
Actual | | $ 1,000.00 | $ 1,288.00 | $ 4.37 |
HypotheticalA | | $ 1,000.00 | $ 1,020.98 | $ 3.86 |
Institutional Class | .74% | | | |
Actual | | $ 1,000.00 | $ 1,288.60 | $ 4.20 |
HypotheticalA | | $ 1,000.00 | $ 1,021.12 | $ 3.71 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Waddell & Reed Financial, Inc. Class A | 1.1 | 1.0 |
Rockwood Holdings, Inc. | 1.1 | 0.9 |
Forestar Group, Inc. | 1.1 | 1.1 |
National Penn Bancshares, Inc. | 1.1 | 1.0 |
G-III Apparel Group Ltd. | 1.1 | 0.9 |
Franklin Street Properties Corp. | 1.0 | 1.0 |
Tempur-Pedic International, Inc. | 1.0 | 1.0 |
General Cable Corp. | 1.0 | 0.7 |
CapitalSource, Inc. | 0.9 | 1.1 |
Watsco, Inc. | 0.9 | 0.0 |
| 10.3 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.6 | 21.0 |
Financials | 18.1 | 19.9 |
Industrials | 15.0 | 13.8 |
Consumer Discretionary | 13.3 | 14.2 |
Health Care | 11.7 | 12.1 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011* | As of October 31, 2010** |
| Stocks and
Equity Futures 97.7% | | | Stocks and
Equity Futures 99.0% | |
| Convertible
Securities 0.1% | | | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 2.2% | | | Short-Term
Investments and
Net Other Assets 1.0% | |
* Foreign investments | 8.3% | | ** Foreign investments | 7.7% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.5% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 13.3% |
Auto Components - 0.9% |
Tenneco, Inc. (a) | 405,814 | | $ 18,753 |
Hotels, Restaurants & Leisure - 1.6% |
Cracker Barrel Old Country Store, Inc. | 127,621 | | 6,538 |
Vail Resorts, Inc. (a) | 211,700 | | 10,371 |
WMS Industries, Inc. (a) | 176,900 | | 5,802 |
Wyndham Worldwide Corp. | 358,315 | | 12,401 |
| | 35,112 |
Household Durables - 2.8% |
iRobot Corp. (a) | 342,370 | | 12,127 |
La-Z-Boy, Inc. (a) | 629,310 | | 7,401 |
Meritage Homes Corp. (a) | 448,000 | | 10,712 |
Mohawk Industries, Inc. (a) | 133,500 | | 8,015 |
Tempur-Pedic International, Inc. (a) | 332,194 | | 20,855 |
| | 59,110 |
Media - 0.8% |
Lamar Advertising Co. Class A (a) | 287,900 | | 9,363 |
MDC Partners, Inc. Class A (sub. vtg.) | 491,300 | | 8,170 |
| | 17,533 |
Multiline Retail - 1.1% |
Dollarama, Inc. (a) | 282,934 | | 8,867 |
Retail Ventures, Inc. (a) | 746,416 | | 15,324 |
| | 24,191 |
Specialty Retail - 4.0% |
Ascena Retail Group, Inc. (a) | 404,580 | | 12,659 |
Cabela's, Inc. Class A (a)(d) | 597,362 | | 15,257 |
Fourlis Holdings SA | 590,130 | | 4,851 |
GameStop Corp. Class A (a) | 335,000 | | 8,603 |
Shoe Carnival, Inc. (a) | 532,247 | | 15,579 |
Signet Jewelers Ltd. (a) | 338,800 | | 14,823 |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 270,992 | | 14,414 |
| | 86,186 |
Textiles, Apparel & Luxury Goods - 2.1% |
Deckers Outdoor Corp. (a) | 106,167 | | 9,009 |
G-III Apparel Group Ltd. (a) | 505,900 | | 22,695 |
Phillips-Van Heusen Corp. | 190,600 | | 13,420 |
| | 45,124 |
TOTAL CONSUMER DISCRETIONARY | | 286,009 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - 2.6% |
Beverages - 0.3% |
Hansen Natural Corp. (a) | 110,800 | | $ 7,329 |
Food & Staples Retailing - 0.6% |
BJ's Wholesale Club, Inc. (a) | 138,200 | | 7,092 |
United Natural Foods, Inc. (a) | 151,845 | | 6,482 |
| | 13,574 |
Food Products - 1.0% |
Chiquita Brands International, Inc. (a) | 308,070 | | 4,904 |
Diamond Foods, Inc. (d) | 60,200 | | 3,949 |
Green Mountain Coffee Roasters, Inc. (a) | 184,503 | | 12,354 |
| | 21,207 |
Personal Products - 0.7% |
Elizabeth Arden, Inc. (a) | 370,155 | | 11,127 |
Nutraceutical International Corp. (a) | 185,112 | | 2,936 |
| | 14,063 |
TOTAL CONSUMER STAPLES | | 56,173 |
ENERGY - 6.2% |
Energy Equipment & Services - 1.6% |
Newpark Resources, Inc. (a) | 1,032,272 | | 9,321 |
Superior Energy Services, Inc. (a) | 323,300 | | 12,421 |
Willbros Group, Inc. (a) | 1,151,900 | | 12,383 |
| | 34,125 |
Oil, Gas & Consumable Fuels - 4.6% |
Atlas Pipeline Partners, LP | 388,813 | | 14,371 |
Berry Petroleum Co. Class A | 302,800 | | 16,088 |
Cloud Peak Energy, Inc. (a) | 574,600 | | 11,963 |
Petroleum Development Corp. (a) | 404,250 | | 16,097 |
SM Energy Co. | 217,436 | | 16,495 |
Targa Resources Corp. | 254,500 | | 8,913 |
Whiting Petroleum Corp. (a) | 207,030 | | 14,389 |
| | 98,316 |
TOTAL ENERGY | | 132,441 |
FINANCIALS - 18.1% |
Capital Markets - 3.0% |
Affiliated Managers Group, Inc. (a) | 172,000 | | 18,762 |
Artio Global Investors, Inc. Class A | 144,826 | | 2,379 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Capital Markets - continued |
Duff & Phelps Corp. Class A | 567,782 | | $ 8,738 |
Gimv NV | 102,300 | | 6,782 |
optionsXpress Holdings, Inc. | 195,299 | | 3,601 |
Waddell & Reed Financial, Inc. Class A | 601,400 | | 24,659 |
| | 64,921 |
Commercial Banks - 4.7% |
Associated Banc-Corp. | 963,423 | | 14,066 |
CapitalSource, Inc. | 3,018,800 | | 20,166 |
Cathay General Bancorp | 627,376 | | 10,697 |
City National Corp. | 291,300 | | 16,636 |
National Penn Bancshares, Inc. | 2,781,400 | | 22,835 |
PacWest Bancorp | 602,600 | | 13,854 |
TCF Financial Corp. | 221,371 | | 3,451 |
| | 101,705 |
Insurance - 3.0% |
Alterra Capital Holdings Ltd. | 665,500 | | 14,628 |
Amerisafe, Inc. (a) | 844,100 | | 18,849 |
Endurance Specialty Holdings Ltd. | 321,300 | | 14,246 |
Platinum Underwriters Holdings Ltd. | 410,000 | | 15,502 |
| | 63,225 |
Real Estate Investment Trusts - 4.4% |
American Assets Trust, Inc. | 600,300 | | 13,255 |
Franklin Street Properties Corp. | 1,521,700 | | 21,517 |
Highwoods Properties, Inc. (SBI) | 443,600 | | 16,369 |
Home Properties, Inc. | 237,731 | | 15,072 |
National Retail Properties, Inc. (d) | 481,000 | | 12,670 |
Ramco-Gershenson Properties Trust (SBI) | 1,245,300 | | 16,052 |
| | 94,935 |
Real Estate Management & Development - 1.4% |
Forestar Group, Inc. (a) | 1,166,600 | | 22,947 |
Jones Lang LaSalle, Inc. | 70,500 | | 7,218 |
| | 30,165 |
Thrifts & Mortgage Finance - 1.6% |
Astoria Financial Corp. | 938,700 | | 13,583 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - continued |
Washington Federal, Inc. | 978,600 | | $ 15,746 |
WSFS Financial Corp. | 112,483 | | 5,058 |
| | 34,387 |
TOTAL FINANCIALS | | 389,338 |
HEALTH CARE - 11.6% |
Biotechnology - 2.8% |
Achillion Pharmaceuticals, Inc. (a) | 343,600 | | 1,917 |
Amarin Corp. PLC ADR (a) | 234,277 | | 3,748 |
Ardea Biosciences, Inc. (a) | 193,205 | | 5,477 |
ARIAD Pharmaceuticals, Inc. (a) | 757,418 | | 6,476 |
ArQule, Inc. (a) | 509,458 | | 3,597 |
BioMarin Pharmaceutical, Inc. (a) | 136,506 | | 3,671 |
Chelsea Therapeutics International Ltd. (a) | 665,563 | | 3,135 |
Dynavax Technologies Corp. (a) | 1,613,741 | | 4,486 |
Pharmasset, Inc. (a) | 72,701 | | 7,377 |
QLT, Inc. (a) | 152,000 | | 1,239 |
SIGA Technologies, Inc. (a)(d) | 362,276 | | 4,974 |
Targacept, Inc. (a) | 137,359 | | 3,321 |
Telik, Inc. (a) | 1,142,150 | | 1,028 |
Theravance, Inc. (a) | 200,981 | | 5,577 |
ZIOPHARM Oncology, Inc. (a) | 632,333 | | 4,780 |
| | 60,803 |
Health Care Equipment & Supplies - 1.2% |
Analogic Corp. | 127,217 | | 7,337 |
Masimo Corp. | 183,237 | | 6,375 |
Sirona Dental Systems, Inc. (a) | 189,100 | | 10,792 |
| | 24,504 |
Health Care Providers & Services - 6.1% |
Accretive Health, Inc. | 386,000 | | 10,901 |
Air Methods Corp. (a) | 102,640 | | 6,941 |
Catalyst Health Solutions, Inc. (a) | 175,091 | | 10,428 |
Centene Corp. (a) | 241,892 | | 8,764 |
Corvel Corp. (a) | 116,800 | | 6,050 |
Epocrates, Inc. (a) | 316,425 | | 7,404 |
Health Management Associates, Inc. Class A (a) | 663,938 | | 7,489 |
Healthspring, Inc. (a) | 235,825 | | 9,784 |
HMS Holdings Corp. (a) | 88,214 | | 6,943 |
Humana, Inc. | 129,228 | | 9,837 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
MWI Veterinary Supply, Inc. (a) | 70,382 | | $ 5,854 |
Omnicare, Inc. | 186,907 | | 5,873 |
PSS World Medical, Inc. (a) | 501,831 | | 14,433 |
The Ensign Group, Inc. | 201,362 | | 5,570 |
Universal Health Services, Inc. Class B | 156,700 | | 8,584 |
Wellcare Health Plans, Inc. (a) | 158,025 | | 6,923 |
| | 131,778 |
Life Sciences Tools & Services - 0.6% |
eResearchTechnology, Inc. (a) | 815,102 | | 5,184 |
Illumina, Inc. (a) | 97,200 | | 6,899 |
| | 12,083 |
Pharmaceuticals - 0.9% |
Cardiome Pharma Corp. (a) | 433,357 | | 2,359 |
Columbia Laboratories, Inc. (a) | 708,568 | | 2,473 |
Endocyte, Inc. | 177,000 | | 2,151 |
Questcor Pharmaceuticals, Inc. (a) | 398,669 | | 8,173 |
XenoPort, Inc. (a) | 499,000 | | 4,082 |
| | 19,238 |
TOTAL HEALTH CARE | | 248,406 |
INDUSTRIALS - 15.0% |
Aerospace & Defense - 0.9% |
Teledyne Technologies, Inc. (a) | 360,042 | | 18,179 |
Air Freight & Logistics - 0.6% |
UTI Worldwide, Inc. | 558,300 | | 12,512 |
Building Products - 1.8% |
A.O. Smith Corp. | 365,889 | | 16,088 |
AAON, Inc. | 346,100 | | 11,369 |
Armstrong World Industries, Inc. | 271,158 | | 12,134 |
| | 39,591 |
Commercial Services & Supplies - 1.6% |
Swisher Hygiene, Inc. (a)(f) | 986,560 | | 7,787 |
Swisher Hygiene, Inc. (Canada) (a) | 7,600 | | 67 |
Sykes Enterprises, Inc. (a) | 638,202 | | 12,783 |
United Stationers, Inc. | 190,442 | | 13,723 |
| | 34,360 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Construction & Engineering - 1.0% |
Foster Wheeler AG (a) | 370,872 | | $ 13,192 |
Shaw Group, Inc. (a) | 238,387 | | 9,273 |
| | 22,465 |
Electrical Equipment - 2.2% |
General Cable Corp. (a) | 419,915 | | 20,366 |
GrafTech International Ltd. (a) | 684,247 | | 15,875 |
Regal-Beloit Corp. | 151,600 | | 11,490 |
| | 47,731 |
Industrial Conglomerates - 0.6% |
Carlisle Companies, Inc. | 239,100 | | 11,845 |
Machinery - 3.5% |
Accuride Corp. (a) | 904,551 | | 12,528 |
Actuant Corp. Class A | 501,721 | | 13,928 |
Altra Holdings, Inc. (a) | 441,487 | | 11,209 |
CLARCOR, Inc. | 308,114 | | 13,924 |
John Bean Technologies Corp. | 524,300 | | 10,596 |
Wabtec Corp. | 170,429 | | 12,165 |
| | 74,350 |
Professional Services - 0.4% |
Advisory Board Co. (a) | 195,038 | | 9,112 |
Road & Rail - 0.5% |
Kansas City Southern (a) | 191,100 | | 11,105 |
Trading Companies & Distributors - 1.9% |
Interline Brands, Inc. (a) | 585,707 | | 12,370 |
Watsco, Inc. | 267,723 | | 18,979 |
WESCO International, Inc. (a) | 152,745 | | 9,463 |
| | 40,812 |
TOTAL INDUSTRIALS | | 322,062 |
INFORMATION TECHNOLOGY - 18.6% |
Communications Equipment - 2.9% |
Aruba Networks, Inc. (a) | 147,190 | | 5,289 |
Comtech Telecommunications Corp. | 345,447 | | 9,776 |
DG FastChannel, Inc. (a) | 318,771 | | 11,664 |
Ixia (a) | 924,592 | | 15,108 |
NETGEAR, Inc. (a) | 312,053 | | 13,028 |
Oclaro, Inc. (a) | 686,715 | | 7,702 |
| | 62,567 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 3.6% |
Lexmark International, Inc. Class A (a) | 236,500 | | $ 7,627 |
NCR Corp. (a) | 531,000 | | 10,519 |
OCZ Technology Group, Inc. (a)(d) | 440,271 | | 3,615 |
Quantum Corp. (a) | 5,772,954 | | 18,358 |
STEC, Inc. (a) | 354,054 | | 7,407 |
Super Micro Computer, Inc. (a) | 773,947 | | 13,204 |
Synaptics, Inc. (a)(d) | 576,880 | | 16,395 |
| | 77,125 |
Electronic Equipment & Components - 1.0% |
Fabrinet (a) | 507,054 | | 11,688 |
Plexus Corp. (a) | 253,078 | | 9,235 |
| | 20,923 |
Internet Software & Services - 3.4% |
Constant Contact, Inc. (a)(d) | 259,328 | | 7,186 |
LoopNet, Inc. (a) | 468,438 | | 8,704 |
Rackspace Hosting, Inc. (a)(d) | 233,701 | | 10,795 |
SAVVIS, Inc. (a) | 408,451 | | 16,077 |
VeriSign, Inc. | 504,591 | | 18,650 |
Web.com, Inc. (a) | 749,253 | | 11,823 |
| | 73,235 |
IT Services - 1.2% |
Alliance Data Systems Corp. (a)(d) | 103,948 | | 9,875 |
hiSoft Technology International Ltd. ADR (a) | 308,176 | | 5,751 |
Syntel, Inc. | 164,967 | | 9,020 |
| | 24,646 |
Semiconductors & Semiconductor Equipment - 1.9% |
Marvell Technology Group Ltd. (a) | 419,500 | | 6,473 |
Micron Technology, Inc. (a) | 786,912 | | 8,884 |
Power Integrations, Inc. | 151,117 | | 6,096 |
Semtech Corp. (a) | 337,016 | | 9,460 |
TriQuint Semiconductor, Inc. (a) | 766,694 | | 10,557 |
| | 41,470 |
Software - 4.6% |
AutoNavi Holdings Ltd. ADR | 361,700 | | 6,514 |
Blackboard, Inc. (a)(d) | 193,938 | | 9,330 |
BroadSoft, Inc. (a) | 132,000 | | 5,999 |
JDA Software Group, Inc. (a) | 301,891 | | 9,893 |
Kenexa Corp. (a) | 317,835 | | 9,351 |
Micro Focus International PLC | 1,787,393 | | 11,092 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Nuance Communications, Inc. (a) | 425,900 | | $ 8,816 |
Parametric Technology Corp. (a) | 647,970 | | 15,726 |
S1 Corp. (a) | 294,231 | | 2,021 |
SolarWinds, Inc. (a) | 384,500 | | 9,316 |
Synchronoss Technologies, Inc. (a) | 348,456 | | 11,241 |
| | 99,299 |
TOTAL INFORMATION TECHNOLOGY | | 399,265 |
MATERIALS - 5.5% |
Chemicals - 2.6% |
Cabot Corp. | 338,900 | | 15,200 |
Rockwood Holdings, Inc. (a) | 408,500 | | 23,178 |
Solutia, Inc. (a) | 649,900 | | 17,125 |
| | 55,503 |
Construction Materials - 0.3% |
Texas Industries, Inc. (d) | 159,400 | | 6,722 |
Metals & Mining - 2.6% |
Carpenter Technology Corp. | 338,973 | | 17,376 |
Coeur d'Alene Mines Corp. (a) | 416,800 | | 13,217 |
Compass Minerals International, Inc. | 157,000 | | 15,325 |
HudBay Minerals, Inc. | 597,800 | | 9,541 |
| | 55,459 |
TOTAL MATERIALS | | 117,684 |
TELECOMMUNICATION SERVICES - 0.8% |
Diversified Telecommunication Services - 0.5% |
AboveNet, Inc. | 94,707 | | 6,322 |
Global Crossing Ltd. (a) | 71,408 | | 1,670 |
PAETEC Holding Corp. (a) | 985,873 | | 3,549 |
| | 11,541 |
Wireless Telecommunication Services - 0.3% |
Clearwire Corp. Class A (a) | 608,100 | | 2,955 |
NII Holdings, Inc. (a) | 71,943 | | 2,991 |
| | 5,946 |
TOTAL TELECOMMUNICATION SERVICES | | 17,487 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - 2.8% |
Electric Utilities - 1.6% |
Cleco Corp. | 282,700 | | $ 9,923 |
Great Plains Energy, Inc. | 362,600 | | 7,462 |
IDACORP, Inc. | 214,407 | | 8,407 |
Westar Energy, Inc. (d) | 270,700 | | 7,366 |
| | 33,158 |
Gas Utilities - 0.8% |
Northwest Natural Gas Co. | 146,000 | | 6,751 |
Southwest Gas Corp. | 283,800 | | 11,287 |
| | 18,038 |
Multi-Utilities - 0.4% |
NorthWestern Energy Corp. | 272,800 | | 8,880 |
TOTAL UTILITIES | | 60,076 |
TOTAL COMMON STOCKS (Cost $1,565,641) | 2,028,941 |
Convertible Preferred Stocks - 0.1% |
| | | |
HEALTH CARE - 0.1% |
Pharmaceuticals - 0.1% |
Merrimack Pharmaceuticals, Inc. (a)(f) (Cost $2,738) | 391,134 | | 2,738 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.13% 5/12/11 to 6/30/11 (e)
(Cost $2,400) | $ 2,400 | | 2,400 |
Money Market Funds - 6.4% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 0.13% (b) | 98,910,373 | | $ 98,910 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 37,378,925 | | 37,379 |
TOTAL MONEY MARKET FUNDS (Cost $136,289) | 136,289 |
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $1,707,068) | | 2,170,368 |
NET OTHER ASSETS (LIABILITIES) - (1.1)% | | (24,122) |
NET ASSETS - 100% | $ 2,146,246 |
Futures Contracts |
| Expiration
Date | | Underlying
Face Amount
at Value (000s) | | Unrealized
Appreciation/
(Depreciation)
(000s) |
Purchased |
Equity Index Contracts |
804 NYFE Russell Mini Index Contracts | June 2011 | | $ 69,458 | | $ 2,035 |
|
The face value of futures purchased as a percentage of net assets is 3.2% |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 $2,400,000. |
(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 $10,525,000 or 0.5% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Merrimack Pharmaceuticals, Inc. | 3/31/11 | $ 2,738 |
Swisher Hygiene, Inc. | 4/15/11 | $ 7,597 |
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 | $ 43 |
Fidelity Securities Lending Cash Central Fund | 119 |
Total | $ 162 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 286,009 | $ 286,009 | $ - | $ - |
Consumer Staples | 56,173 | 56,173 | - | - |
Energy | 132,441 | 132,441 | - | - |
Financials | 389,338 | 389,338 | - | - |
Health Care | 251,144 | 248,406 | - | 2,738 |
Industrials | 322,062 | 314,275 | 7,787 | - |
Information Technology | 399,265 | 399,265 | - | - |
Materials | 117,684 | 117,684 | - | - |
Telecommunication Services | 17,487 | 17,487 | - | - |
Utilities | 60,076 | 60,076 | - | - |
U.S. Government and Government Agency Obligations | 2,400 | - | 2,400 | - |
Money Market Funds | 136,289 | 136,289 | - | - |
Total Investments in Securities: | $ 2,170,368 | $ 2,157,443 | $ 10,187 | $ 2,738 |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 2,035 | $ 2,035 | $ - | $ - |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | 2,738 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 2,738 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 2,035 | $ - |
Total Value of Derivatives | $ 2,035 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $519,765,000 of which $190,671,000 and $329,094,000 will expire in fiscal 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $36,621) - See accompanying schedule: Unaffiliated issuers (cost $1,570,779) | $ 2,034,079 | |
Fidelity Central Funds (cost $136,289) | 136,289 | |
Total Investments (cost $1,707,068) | | $ 2,170,368 |
Cash | | 48 |
Receivable for investments sold | | 18,203 |
Receivable for fund shares sold | | 7,390 |
Dividends receivable | | 960 |
Distributions receivable from Fidelity Central Funds | | 20 |
Receivable for daily variation on futures contracts | | 354 |
Prepaid expenses | | 1 |
Other receivables | | 98 |
Total assets | | 2,197,442 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,756 | |
Payable for fund shares redeemed | 1,680 | |
Accrued management fee | 889 | |
Distribution and service plan fees payable | 3 | |
Other affiliated payables | 455 | |
Other payables and accrued expenses | 34 | |
Collateral on securities loaned, at value | 37,379 | |
Total liabilities | | 51,196 |
| | |
Net Assets | | $ 2,146,246 |
Net Assets consist of: | | |
Paid in capital | | $ 2,044,712 |
Distributions in excess of net investment income | | (3,264) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (360,538) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 465,336 |
Net Assets | | $ 2,146,246 |
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, 2011 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($5,255 ÷ 253.012 shares) | | $ 20.77 |
| | |
Maximum offering price per share (100/94.25 of $20.77) | | $ 22.04 |
Class T:
Net Asset Value and redemption price per share
($1,542 ÷ 74.919 shares) | | $ 20.58 |
| | |
Maximum offering price per share (100/96.50 of $20.58) | | $ 21.33 |
Class B:
Net Asset Value and offering price per share
($308 ÷ 15.146 shares)A | | $ 20.34 |
| | |
Class C:
Net Asset Value and offering price per share
($1,575 ÷ 77.667 shares)A | | $ 20.28 |
| | |
Stock Selector Small Cap:
Net Asset Value, offering price and redemption price per share ($2,111,366 ÷ 100,821.845 shares) | | $ 20.94 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($26,200 ÷ 1,249.088 shares) | | $ 20.98 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,605 |
Special dividends | | 3,755 |
Interest | | 2 |
Income from Fidelity Central Funds | | 162 |
Total income | | 10,524 |
| | |
Expenses | | |
Management fee
Basic fee | $ 5,412 | |
Performance adjustment | (1,261) | |
Transfer agent fees | 2,210 | |
Distribution and service plan fees | 15 | |
Accounting and security lending fees | 280 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 4 | |
Registration fees | 107 | |
Audit | 29 | |
Legal | 4 | |
Miscellaneous | 7 | |
Total expenses before reductions | 6,855 | |
Expense reductions | (88) | 6,767 |
Net investment income (loss) | | 3,757 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 156,991 | |
Foreign currency transactions | (112) | |
Futures contracts | 2,988 | |
Total net realized gain (loss) | | 159,867 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 268,788 | |
Futures contracts | 2,043 | |
Total change in net unrealized appreciation (depreciation) | | 270,831 |
Net gain (loss) | | 430,698 |
Net increase (decrease) in net assets resulting from operations | | $ 434,455 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,757 | $ 3,129 |
Net realized gain (loss) | 159,867 | 280,256 |
Change in net unrealized appreciation (depreciation) | 270,831 | 94,882 |
Net increase (decrease) in net assets resulting
from operations | 434,455 | 378,267 |
Distributions to shareholders from net investment income | (9,149) | (976) |
Share transactions - net increase (decrease) | 309,253 | (349,513) |
Redemption fees | 320 | 175 |
Total increase (decrease) in net assets | 734,879 | 27,953 |
| | |
Net Assets | | |
Beginning of period | 1,411,367 | 1,383,414 |
End of period (including distributions in excess of net investment income of $3,264 and undistributed net investment income of $2,128, respectively) | $ 2,146,246 | $ 1,411,367 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | .01 H | (.01) I | - M | (.04) | (.07) J |
Net realized and unrealized gain (loss) | 4.63 | 3.68 | 1.31 | (10.77) | 1.66 |
Total from investment operations | 4.64 | 3.67 | 1.31 | (10.81) | 1.59 |
Distributions from net investment income | (.07) | - M | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.74) | - |
Total distributions | (.07) | - M | (.02) | (2.74) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.77 | $ 16.20 | $ 12.53 | $ 11.24 | $ 24.79 |
Total Return B, C, D | 28.68% | 29.32% | 11.69% | (48.52)% | 6.85% |
Ratios to Average Net Assets F, L | | | | |
|
Expenses before reductions | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of fee waivers, if any | 1.07% A | 1.00% | 1.03% | 1.24% | 1.27% A |
Expenses net of all reductions | 1.06% A | .99% | 1.01% | 1.23% | 1.26% A |
Net investment income (loss) | .12% A, H | (.07)% I | (.03)% | (.24)% | (.57)% A, J |
Supplemental Data | | | | | |
Net assets, end of period
(in millions) | $ 5 | $ 3 | $ 3 | $ 2 | $ 1 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.30)%. I 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 (.16)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.01) H | (.05) I | (.03) | (.08) | (.10) J |
Net realized and unrealized gain (loss) | 4.57 | 3.67 | 1.30 | (10.76) | 1.64 |
Total from investment operations | 4.56 | 3.62 | 1.27 | (10.84) | 1.54 |
Distributions from net investment income | (.05) | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (2.71) | - |
Total distributions | (.05) | - | (.01) | (2.71) | - |
Redemption fees added to paid in capital E, M | - | - | - | - | - |
Net asset value, end of period | $ 20.58 | $ 16.07 | $ 12.45 | $ 11.19 | $ 24.74 |
Total Return B, C, D | 28.44% | 29.08% | 11.42% | (48.70)% | 6.64% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of fee waivers, if any | 1.34% A | 1.27% | 1.30% | 1.50% | 1.53% A |
Expenses net of all reductions | 1.33% A | 1.26% | 1.29% | 1.49% | 1.52% A |
Net investment income (loss) | (.15)% A, H | (.33)% I | (.31)% | (.50)% | (.83)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,542 | $ 723 | $ 550 | $ 409 | $ 420 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.57)%. I 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 (.43)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.08) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.53 | 3.63 | 1.30 | (10.73) | 1.64 |
Total from investment operations | 4.47 | 3.51 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.34 | $ 15.87 | $ 12.36 | $ 11.15 | $ 24.69 |
Total Return B, C, D | 28.17% | 28.40% | 10.92% | (48.94)% | 6.42% |
Ratios to Average Net Assets F, L | | | | | |
Expenses before reductions | 1.82% A | 1.76% | 1.77% | 1.99% | 2.07% A |
Expenses net of fee waivers, if any | 1.82% A | 1.76% | 1.77% | 1.99% | 2.05% A |
Expenses net of all reductions | 1.81% A | 1.75% | 1.75% | 1.99% | 2.04% A |
Net investment income (loss) | (.63)% A, H | (.82)% I | (.78)% | (1.00)% | (1.32)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 308 | $ 220 | $ 219 | $ 199 | $ 419 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 K |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) E | (.06) H | (.12) I | (.09) | (.17) | (.15) J |
Net realized and unrealized gain (loss) | 4.52 | 3.61 | 1.31 | (10.72) | 1.66 |
Total from investment operations | 4.46 | 3.49 | 1.22 | (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, M | - | - | - | - | - |
Net asset value, end of period | $ 20.28 | $ 15.82 | $ 12.33 | $ 11.12 | $ 24.71 |
Total Return B, C, D | 28.19% | 28.30% | 10.96% | (48.95)% | 6.51% |
Ratios to Average Net Assets F, L | | | | |
Expenses before reductions | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of fee waivers, if any | 1.82% A | 1.75% | 1.76% | 2.00% | 1.98% A |
Expenses net of all reductions | 1.81% A | 1.74% | 1.75% | 1.99% | 1.97% A |
Net investment income (loss) | (.63)% A, H | (.81)% I | (.77)% | (1.01)% | (1.27)% A, J |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,575 | $ 820 | $ 428 | $ 183 | $ 294 |
Portfolio turnover rate G | 74% A | 138% | 135% | 101% | 84% |
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 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 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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.05)%. I 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 (.91)%. J 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)%. K For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. L 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. M Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Stock Selector Small Cap
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 | $ 20.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 G | .03 H | .02 | .01 | (.04) I | .07 J |
Net realized and unrealized gain (loss) | 4.65 | 3.72 | 1.33 | (10.82) | 5.01 | 2.75 |
Total from investment operations | 4.69 | 3.75 | 1.35 | (10.81) | 4.97 | 2.82 |
Distributions from net investment income | (.10) | (.01) | (.02) | - | (.05) | (.07) |
Distributions from net realized gain | - | - | - | (2.72) | (2.34) | (1.34) |
Total distributions | (.10) | (.01) | (.02) | (2.72) | (2.39) | (1.41) |
Redemption fees added to paid in capital D, L | - | - | - | - | - | - |
Net asset value, end of period | $ 20.94 | $ 16.35 | $ 12.61 | $ 11.28 | $ 24.81 | $ 22.23 |
Total Return B, C | 28.80% | 29.75% | 12.05% | (48.42)% | 24.42% | 14.08% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .77% A | .73% | .77% | .95% | 1.01% | .86% |
Expenses net of fee waivers, if any | .77% A | .73% | .77% | .95% | 1.00% | .86% |
Expenses net of all reductions | .76% A | .72% | .75% | .94% | .99% | .81% |
Net investment income (loss) | .42% A, G | .21% H | .22% | .05% | (.20)% I | .32% J |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 2,111 | $ 1,406 | $ 1,379 | $ 1,292 | $ 2,602 | $ 2,623 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% | 126% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .002%. 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 ..12%. I 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)%. J 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)%. K 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. L 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, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 J |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 | $ 23.20 |
Income from Investment Operations | | | | | |
Net investment income
(loss) D | .04 G | .05 H | .04 | .02 | (.03) I |
Net realized and unrealized gain (loss) | 4.67 | 3.72 | 1.32 | (10.82) | 1.65 |
Total from investment operations | 4.71 | 3.77 | 1.36 | (10.80) | 1.62 |
Distributions from net investment income | (.12) | (.01) | (.02) | - | - |
Distributions from net realized gain | - | - | - | (2.73) | - |
Total distributions | (.12) | (.01) | (.02) | (2.73) | - |
Redemption fees added to paid in capital D, L | - | - | - | - | - |
Net asset value, end of period | $ 20.98 | $ 16.39 | $ 12.63 | $ 11.29 | $ 24.82 |
Total Return B, C | 28.86% | 29.89% | 12.14% | (48.36)% | 6.98% |
Ratios to Average Net Assets E, K | | | | | |
Expenses before reductions | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of fee waivers, if any | .74% A | .63% | .63% | .84% | .94% A |
Expenses net of all reductions | .73% A | .62% | .62% | .84% | .93% A |
Net investment income (loss) | .45% A, G | .31% H | .36% | .15% | (.24)% A, I |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 26,200 | $ 680 | $ 413 | $ 376 | $ 162 |
Portfolio turnover rate F | 74% A | 138% | 135% | 101% | 84% |
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. 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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .03%. 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 ..21%. I 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)%. J For the period May 2, 2007 (commencement of sale of shares) to October 31, 2007. K 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. L 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, 2011 (Unaudited)
1. Organization.
Fidelity Stock Selector Small Cap 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 C, Stock Selector Small Cap and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. 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 distribution and service plan 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 487,536,122 |
Gross unrealized depreciation | (24,950,520) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 462,585,602 |
| |
Tax cost | $ 1,707,782,069 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $2,987,515 and a change in net unrealized appreciation (depreciation) of $2,042,651 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
Semiannual Report
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $854,946,996 and $638,180,117, respectively.
7. 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 .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 Small Cap as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Total
Fees | Retained
by FDC |
Class A | -% | .25% | $ 5,564 | $ 103 |
Class T | .25% | .25% | 2,668 | 22 |
Class B | .75% | .25% | 1,389 | 1,049 |
Class C | .75% | .25% | 5,624 | 1,671 |
| | | $ 15,245 | $ 2,845 |
Sales Load. FDC may receive 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. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,381 |
Class T | 226 |
Class B* | 131 |
Class C* | 249 |
| $ 1,987 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 6,640 | .30 |
Class T | 1,682 | .32 |
Class B | 419 | .30 |
Class C | 1,671 | .30 |
Stock Selector Small Cap | 2,188,215 | .25 |
Institutional Class | 11,446 | .22 |
| $ 2,210,073 | |
* 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 $37,276 for the period.
Semiannual Report
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $2,930 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $119,487. During the period, there were no securities loaned to FCM.
10. 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 $88,065 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Class A | $ 15,209 | $ 649 |
Class T | 2,838 | - |
Stock Selector Small Cap | 9,104,127 | 974,901 |
Institutional Class | 26,543 | 392 |
Total | $ 9,148,717 | $ 975,942 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Class A | | | | |
Shares sold | 86,051 | 60,233 | $ 1,595,686 | $ 878,328 |
Reinvestment of distributions | 794 | 48 | 14,554 | 635 |
Shares redeemed | (39,550) | (69,529) | (747,630) | (1,022,424) |
Net increase (decrease) | 47,295 | (9,248) | $ 862,610 | $ (143,461) |
Class T | | | | |
Shares sold | 44,797 | 27,634 | $ 846,704 | $ 398,291 |
Reinvestment of distributions | 154 | - | 2,831 | - |
Shares redeemed | (15,050) | (26,782) | (279,920) | (382,007) |
Net increase (decrease) | 29,901 | 852 | $ 569,615 | $ 16,284 |
Class B | | | | |
Shares sold | 3,705 | 2,875 | $ 66,746 | $ 40,053 |
Shares redeemed | (2,435) | (6,748) | (43,934) | (94,173) |
Net increase (decrease) | 1,270 | (3,873) | $ 22,812 | $ (54,120) |
Class C | | | | |
Shares sold | 33,059 | 24,030 | $ 618,177 | $ 347,201 |
Shares redeemed | (7,238) | (6,890) | (130,986) | (99,553) |
Net increase (decrease) | 25,821 | 17,140 | $ 487,191 | $ 247,648 |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Stock Selector Small Cap | | | | |
Shares sold | 29,176,508 | 14,958,012 | $ 553,189,012 | $ 219,809,002 |
Reinvestment of distributions | 490,500 | 72,340 | 8,965,189 | 962,840 |
Shares redeemed | (14,831,493) | (38,394,961) | (277,854,186) | (570,480,008) |
Net increase (decrease) | 14,835,515 | (23,364,609) | $ 284,300,015 | $ (349,708,166) |
Institutional Class | | | | |
Shares sold | 1,210,463 | 13,011 | $ 23,065,968 | $ 190,234 |
Reinvestment of distributions | 1,209 | 4 | 22,526 | 53 |
Shares redeemed | (4,092) | (4,160) | (76,755) | (62,596) |
Net increase (decrease) | 1,207,580 | 8,855 | $ 23,011,739 | $ 127,691 |
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 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
ASCSI-USAN-0611
1.843146.103
Fidelity®
Value
Fund
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Value | .58% | | | |
Actual | | $ 1,000.00 | $ 1,199.80 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.92 | $ 2.91 |
Class K | .43% | | | |
Actual | | $ 1,000.00 | $ 1,200.60 | $ 2.35 |
HypotheticalA | | $ 1,000.00 | $ 1,022.66 | $ 2.16 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PPL Corp. | 1.6 | 1.4 |
U.S. Bancorp, Delaware | 1.6 | 1.2 |
Sempra Energy | 1.6 | 1.5 |
Baker Hughes, Inc. | 1.4 | 1.0 |
PG&E Corp. | 1.3 | 1.3 |
Whiting Petroleum Corp. | 1.3 | 0.9 |
Wells Fargo & Co. | 1.2 | 1.2 |
AES Corp. | 1.1 | 1.1 |
National Grid PLC | 1.1 | 1.2 |
MetLife, Inc. | 1.1 | 0.8 |
| 13.3 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 25.9 | 26.4 |
Industrials | 11.9 | 11.8 |
Energy | 11.3 | 9.6 |
Consumer Discretionary | 11.3 | 12.0 |
Utilities | 9.4 | 10.6 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks and
Equity Futures 98.5% | | | Stocks and
Equity Futures 98.1% | |
| Short-Term
Investments and
Net Other Assets 1.5% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
* Foreign investments | 16.3% | | ** Foreign investments | 13.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 11.3% |
Auto Components - 0.3% |
Autoliv, Inc. | 327,491 | | $ 26,242 |
Automobiles - 0.6% |
Fiat SpA | 2,742,200 | | 29,265 |
Harley-Davidson, Inc. | 755,241 | | 28,140 |
| | 57,405 |
Diversified Consumer Services - 0.5% |
Grand Canyon Education, Inc. (a) | 1,078,353 | | 15,593 |
H&R Block, Inc. (d) | 1,153,570 | | 19,945 |
Service Corp. International | 1,198,112 | | 14,102 |
| | 49,640 |
Hotels, Restaurants & Leisure - 1.6% |
Accor SA | 266,455 | | 11,840 |
Brinker International, Inc. | 684,756 | | 16,496 |
Penn National Gaming, Inc. (a) | 648,700 | | 25,954 |
Sonic Corp. (a) | 2,275,758 | | 25,534 |
WMS Industries, Inc. (a) | 829,302 | | 27,201 |
Wyndham Worldwide Corp. | 1,078,880 | | 37,340 |
| | 144,365 |
Household Durables - 2.6% |
Ethan Allen Interiors, Inc. (d) | 918,782 | | 22,133 |
Garmin Ltd. (d) | 620,000 | | 21,223 |
Jarden Corp. | 2,369,872 | | 86,240 |
PulteGroup, Inc. (a) | 1,772,471 | | 14,410 |
Stanley Black & Decker, Inc. | 1,222,000 | | 88,778 |
| | 232,784 |
Leisure Equipment & Products - 1.0% |
Brunswick Corp. | 2,129,527 | | 49,767 |
Eastman Kodak Co. (a)(d) | 5,584,538 | | 15,525 |
Hasbro, Inc. | 472,941 | | 22,153 |
| | 87,445 |
Media - 0.5% |
MDC Partners, Inc. Class A (sub. vtg.) | 612,500 | | 10,186 |
United Business Media Ltd. | 1,348,438 | | 13,605 |
Valassis Communications, Inc. (a) | 884,286 | | 25,494 |
| | 49,285 |
Multiline Retail - 0.6% |
Big Lots, Inc. (a) | 351,423 | | 14,447 |
Kohl's Corp. | 326,736 | | 17,222 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - continued |
PPR SA | 78,100 | | $ 13,969 |
Retail Ventures, Inc. (a) | 563,225 | | 11,563 |
| | 57,201 |
Specialty Retail - 3.2% |
Advance Auto Parts, Inc. | 175,789 | | 11,507 |
Aeropostale, Inc. (a) | 466,653 | | 11,914 |
Ascena Retail Group, Inc. (a) | 344,200 | | 10,770 |
Best Buy Co., Inc. | 1,442,902 | | 45,047 |
Chico's FAS, Inc. | 1,464,163 | | 21,421 |
Collective Brands, Inc. (a)(d) | 2,059,526 | | 43,250 |
Gap, Inc. | 1,250,175 | | 29,054 |
Lowe's Companies, Inc. | 847,565 | | 22,249 |
OfficeMax, Inc. (a)(e) | 4,466,214 | | 44,483 |
Sally Beauty Holdings, Inc. (a) | 2,649,299 | | 39,183 |
Staples, Inc. | 709,410 | | 14,997 |
| | 293,875 |
Textiles, Apparel & Luxury Goods - 0.4% |
Hanesbrands, Inc. (a) | 525,158 | | 17,073 |
Warnaco Group, Inc. (a) | 237,164 | | 15,264 |
| | 32,337 |
TOTAL CONSUMER DISCRETIONARY | | 1,030,579 |
CONSUMER STAPLES - 6.5% |
Beverages - 2.1% |
Britvic PLC | 2,373,200 | | 16,233 |
Coca-Cola Enterprises, Inc. | 1,091,746 | | 31,017 |
Dr Pepper Snapple Group, Inc. | 1,523,992 | | 59,740 |
Molson Coors Brewing Co. Class B | 609,900 | | 29,733 |
PepsiCo, Inc. | 827,063 | | 56,976 |
| | 193,699 |
Food & Staples Retailing - 1.6% |
Casey's General Stores, Inc. | 561,916 | | 21,932 |
CVS Caremark Corp. | 650,519 | | 23,575 |
Kroger Co. | 2,025,527 | | 49,241 |
Walgreen Co. | 938,625 | | 40,098 |
Winn-Dixie Stores, Inc. (a) | 1,473,493 | | 10,447 |
| | 145,293 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food Products - 2.1% |
Archer Daniels Midland Co. | 835,597 | | $ 30,934 |
Bunge Ltd. | 797,061 | | 60,130 |
Danone | 351,000 | | 25,712 |
Dean Foods Co. (a) | 3,252,582 | | 36,396 |
Sara Lee Corp. | 1,437,179 | | 27,594 |
The J.M. Smucker Co. | 173,901 | | 13,055 |
| | 193,821 |
Household Products - 0.2% |
Spectrum Brands Holdings, Inc. (a) | 395,781 | | 12,863 |
Personal Products - 0.2% |
Avon Products, Inc. | 730,670 | | 21,467 |
Tobacco - 0.3% |
Lorillard, Inc. | 222,578 | | 23,705 |
TOTAL CONSUMER STAPLES | | 590,848 |
ENERGY - 11.3% |
Energy Equipment & Services - 4.1% |
Baker Hughes, Inc. | 1,621,426 | | 125,515 |
Cameron International Corp. (a) | 669,540 | | 35,298 |
Exterran Holdings, Inc. (a) | 431,000 | | 9,357 |
Halliburton Co. | 1,505,200 | | 75,982 |
Nabors Industries Ltd. (a) | 1,034,400 | | 31,694 |
Rowan Companies, Inc. (a) | 1,015,312 | | 42,339 |
Saipem SpA | 231,606 | | 13,149 |
Transocean Ltd. (a) | 436,614 | | 31,764 |
Trinidad Drilling Ltd. | 729,400 | | 8,357 |
| | 373,455 |
Oil, Gas & Consumable Fuels - 7.2% |
Apache Corp. | 411,100 | | 54,828 |
Cimarex Energy Co. | 872,929 | | 96,537 |
Enbridge Energy Partners LP | 1,157,610 | | 39,243 |
Forest Oil Corp. (a) | 552,700 | | 19,847 |
Newfield Exploration Co. (a) | 300,015 | | 21,241 |
Nexen, Inc. | 1,143,700 | | 30,258 |
Peabody Energy Corp. | 852,300 | | 56,951 |
PetroBakken Energy Ltd. Class A | 283,500 | | 5,382 |
Petrohawk Energy Corp. (a) | 1,407,016 | | 38,004 |
Talisman Energy, Inc. | 3,145,300 | | 75,965 |
Tesoro Corp. (a) | 436,800 | | 11,846 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Whiting Petroleum Corp. (a) | 1,664,746 | | $ 115,700 |
Williams Companies, Inc. | 2,443,392 | | 81,047 |
World Fuel Services Corp. | 282,277 | | 11,173 |
| | 658,022 |
TOTAL ENERGY | | 1,031,477 |
FINANCIALS - 25.9% |
Capital Markets - 3.2% |
Bank of New York Mellon Corp. | 2,555,672 | | 74,012 |
Invesco Ltd. | 1,823,850 | | 45,359 |
Morgan Stanley | 1,921,715 | | 50,253 |
State Street Corp. | 1,723,340 | | 80,221 |
TD Ameritrade Holding Corp. | 2,128,750 | | 45,853 |
| | 295,698 |
Commercial Banks - 5.3% |
BB&T Corp. | 326,080 | | 8,778 |
CIT Group, Inc. (a) | 1,472,505 | | 62,523 |
Comerica, Inc. | 646,296 | | 24,514 |
Commercial Bank of Qatar GDR (Reg. S) | 575,461 | | 2,314 |
Heritage Financial Corp., Washington (a) | 123,900 | | 1,826 |
Itau Unibanco Banco Multiplo SA: | | | |
ADR (a)(f) | 1,392,600 | | 33,074 |
sponsored ADR | 168,500 | | 4,002 |
PNC Financial Services Group, Inc. | 395,755 | | 24,671 |
Regions Financial Corp. | 6,295,530 | | 46,209 |
TCF Financial Corp. | 1,436,200 | | 22,390 |
U.S. Bancorp, Delaware | 5,689,877 | | 146,913 |
Wells Fargo & Co. | 3,711,941 | | 108,055 |
| | 485,269 |
Consumer Finance - 0.7% |
SLM Corp. | 3,687,000 | | 61,167 |
Diversified Financial Services - 0.9% |
JPMorgan Chase & Co. | 1,882,721 | | 85,909 |
Insurance - 8.5% |
AEGON NV (a) | 3,645,831 | | 28,980 |
AFLAC, Inc. | 440,955 | | 24,777 |
Allstate Corp. | 371,385 | | 12,568 |
Aon Corp. | 217,923 | | 11,369 |
Berkshire Hathaway, Inc. Class B (a) | 1,185,856 | | 98,782 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
Delphi Financial Group, Inc. Class A | 1,318,837 | | $ 42,137 |
Everest Re Group Ltd. | 289,449 | | 26,375 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 82,000 | | 33,117 |
First American Financial Corp. | 2,040,032 | | 31,824 |
Genworth Financial, Inc. Class A (a) | 2,365,954 | | 28,841 |
Hilltop Holdings, Inc. (a) | 995,650 | | 9,658 |
Jardine Lloyd Thompson Group PLC | 2,725,229 | | 32,025 |
Lincoln National Corp. | 1,954,332 | | 61,034 |
MetLife, Inc. | 2,142,164 | | 100,232 |
National Financial Partners Corp. (a) | 1,082,065 | | 17,410 |
Progressive Corp. | 636,700 | | 13,969 |
Reinsurance Group of America, Inc. | 517,718 | | 32,772 |
StanCorp Financial Group, Inc. | 655,975 | | 28,273 |
Torchmark Corp. | 473,734 | | 31,702 |
Unum Group | 2,246,206 | | 59,480 |
XL Group PLC Class A | 2,189,452 | | 53,466 |
| | 778,791 |
Real Estate Investment Trusts - 5.0% |
Alexandria Real Estate Equities, Inc. (d) | 576,720 | | 47,378 |
Corporate Office Properties Trust (SBI) | 302,336 | | 10,645 |
Douglas Emmett, Inc. | 991,500 | | 20,633 |
Mission West Properties, Inc. | 39,700 | | 305 |
Post Properties, Inc. | 699,692 | | 28,407 |
ProLogis Trust | 5,294,506 | | 86,248 |
Public Storage | 260,377 | | 30,545 |
Rayonier, Inc. | 133,423 | | 8,854 |
SL Green Realty Corp. | 939,414 | | 77,530 |
The Macerich Co. | 501,300 | | 26,479 |
Ventas, Inc. | 1,011,592 | | 56,578 |
Vornado Realty Trust | 121,095 | | 11,707 |
Weyerhaeuser Co. | 2,317,821 | | 53,333 |
| | 458,642 |
Real Estate Management & Development - 1.9% |
BR Malls Participacoes SA | 1,974,700 | | 20,785 |
CB Richard Ellis Group, Inc. Class A (a) | 1,075,753 | | 28,733 |
Forest City Enterprises, Inc. Class A (a)(d) | 3,039,501 | | 58,389 |
Forestar Group, Inc. (a) | 1,704,293 | | 33,523 |
Kennedy-Wilson Holdings, Inc. (a)(d) | 631,118 | | 7,226 |
Wharf Holdings Ltd. | 3,158,000 | | 23,097 |
| | 171,753 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.4% |
Capitol Federal Financial, Inc. | 330,300 | | $ 3,739 |
People's United Financial, Inc. | 2,217,882 | | 30,363 |
| | 34,102 |
TOTAL FINANCIALS | | 2,371,331 |
HEALTH CARE - 5.9% |
Biotechnology - 0.3% |
Cephalon, Inc. (a) | 64,200 | | 4,931 |
Gilead Sciences, Inc. (a) | 337,289 | | 13,100 |
PDL BioPharma, Inc. | 1,883,000 | | 12,089 |
| | 30,120 |
Health Care Equipment & Supplies - 1.2% |
Alere, Inc. (a) | 105,300 | | 3,911 |
Boston Scientific Corp. (a) | 5,984,261 | | 44,822 |
CareFusion Corp. (a) | 468,200 | | 13,751 |
Covidien PLC | 357,200 | | 19,892 |
Hill-Rom Holdings, Inc. | 119,925 | | 5,398 |
Kinetic Concepts, Inc. (a) | 112,800 | | 6,659 |
Zimmer Holdings, Inc. (a) | 189,067 | | 12,337 |
| | 106,770 |
Health Care Providers & Services - 2.8% |
Brookdale Senior Living, Inc. (a) | 1,207,296 | | 32,887 |
Community Health Systems, Inc. (a) | 295,500 | | 9,081 |
DaVita, Inc. (a) | 289,534 | | 25,505 |
Fleury SA | 334,950 | | 4,992 |
HCA Holdings, Inc. | 206,100 | | 6,760 |
Health Net, Inc. (a) | 502,400 | | 16,730 |
HealthSouth Corp. (a) | 395,100 | | 10,126 |
Lincare Holdings, Inc. | 1,119,565 | | 35,177 |
McKesson Corp. | 529,804 | | 43,979 |
Medco Health Solutions, Inc. (a) | 544,500 | | 32,305 |
MEDNAX, Inc. (a) | 95,900 | | 6,801 |
Quest Diagnostics, Inc. | 110,900 | | 6,253 |
Universal American Financial Corp. | 343,569 | | 7,936 |
Universal Health Services, Inc. Class B | 410,381 | | 22,481 |
| | 261,013 |
Life Sciences Tools & Services - 0.7% |
ICON PLC sponsored ADR (a) | 986,450 | | 24,227 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Life Sciences Tools & Services - continued |
Life Technologies Corp. (a) | 174,000 | | $ 9,605 |
Thermo Fisher Scientific, Inc. (a) | 486,800 | | 29,203 |
| | 63,035 |
Pharmaceuticals - 0.9% |
AVANIR Pharmaceuticals Class A (a)(d) | 2,745,239 | | 11,997 |
Cadence Pharmaceuticals, Inc. (a)(d) | 1,231,967 | | 10,447 |
Forest Laboratories, Inc. (a) | 309,900 | | 10,276 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 585,586 | | 26,779 |
Valeant Pharmaceuticals International, Inc. (Canada) | 200,316 | | 10,565 |
XenoPort, Inc. (a) | 1,097,500 | | 8,978 |
| | 79,042 |
TOTAL HEALTH CARE | | 539,980 |
INDUSTRIALS - 11.9% |
Aerospace & Defense - 2.1% |
AerCap Holdings NV (a) | 837,368 | | 11,991 |
DigitalGlobe, Inc. (a) | 817,870 | | 23,718 |
Esterline Technologies Corp. (a) | 322,420 | | 23,150 |
Lockheed Martin Corp. | 146,885 | | 11,641 |
Meggitt PLC | 8,806,200 | | 52,808 |
Precision Castparts Corp. | 106,272 | | 16,421 |
Raytheon Co. | 412,011 | | 20,003 |
Safran SA (d) | 484,894 | | 18,817 |
Textron, Inc. | 676,244 | | 17,650 |
| | 196,199 |
Airlines - 0.1% |
Pinnacle Airlines Corp. (a)(e) | 1,925,465 | | 10,494 |
Building Products - 1.7% |
A.O. Smith Corp. | 330,600 | | 14,536 |
Armstrong World Industries, Inc. | 415,398 | | 18,589 |
Lennox International, Inc. | 320,405 | | 15,575 |
Masco Corp. | 1,363,926 | | 18,304 |
Owens Corning (a) | 2,315,612 | | 87,623 |
| | 154,627 |
Commercial Services & Supplies - 1.5% |
Iron Mountain, Inc. | 199,352 | | 6,349 |
Quad/Graphics, Inc. (a) | 297,654 | | 11,924 |
Republic Services, Inc. | 2,433,127 | | 76,935 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Commercial Services & Supplies - continued |
Sykes Enterprises, Inc. (a) | 912,797 | | $ 18,283 |
The Geo Group, Inc. (a) | 952,179 | | 25,404 |
| | 138,895 |
Construction & Engineering - 0.8% |
Foster Wheeler AG (a) | 1,988,203 | | 70,720 |
Electrical Equipment - 1.2% |
Alstom SA | 419,929 | | 27,925 |
GrafTech International Ltd. (a) | 1,359,317 | | 31,536 |
Prysmian SpA (d) | 2,259,364 | | 53,311 |
| | 112,772 |
Industrial Conglomerates - 0.2% |
Carlisle Companies, Inc. | 328,000 | | 16,249 |
Machinery - 2.1% |
Charter International PLC | 777,643 | | 10,665 |
Dover Corp. | 196,821 | | 13,392 |
Fiat Industrial SpA (a) | 1,457,794 | | 21,658 |
Ingersoll-Rand Co. Ltd. | 1,497,277 | | 75,612 |
Navistar International Corp. (a) | 876,886 | | 60,961 |
Vallourec SA | 114,500 | | 14,278 |
| | 196,566 |
Marine - 0.1% |
Ultrapetrol (Bahamas) Ltd. (a) | 1,082,677 | | 5,901 |
Professional Services - 0.6% |
Towers Watson & Co. | 881,250 | | 50,549 |
Road & Rail - 1.5% |
Contrans Group, Inc. Class A | 1,870,900 | | 17,797 |
Quality Distribution, Inc. (a)(e) | 1,960,095 | | 23,325 |
Union Pacific Corp. | 703,535 | | 72,795 |
Vitran Corp., Inc. (a)(e) | 1,299,745 | | 20,263 |
| | 134,180 |
TOTAL INDUSTRIALS | | 1,087,152 |
INFORMATION TECHNOLOGY - 8.0% |
Communications Equipment - 0.5% |
Cisco Systems, Inc. | 625,629 | | 10,986 |
Comverse Technology, Inc. (a) | 2,789,160 | | 21,253 |
Motorola Solutions, Inc. | 354,600 | | 16,269 |
| | 48,508 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 0.9% |
Gemalto NV | 453,279 | | $ 23,234 |
Hewlett-Packard Co. | 1,160,518 | | 46,850 |
Western Digital Corp. (a) | 215,700 | | 8,585 |
| | 78,669 |
Electronic Equipment & Components - 1.4% |
Arrow Electronics, Inc. (a) | 627,120 | | 28,590 |
Avnet, Inc. (a) | 718,260 | | 26,087 |
Corning, Inc. | 1,118,028 | | 23,412 |
Flextronics International Ltd. (a) | 4,011,755 | | 27,962 |
Jabil Circuit, Inc. | 1,116,566 | | 22,153 |
| | 128,204 |
Internet Software & Services - 0.7% |
eBay, Inc. (a) | 966,378 | | 33,243 |
Google, Inc. Class A (a) | 36,200 | | 19,696 |
Yahoo!, Inc. (a) | 543,057 | | 9,639 |
| | 62,578 |
IT Services - 1.5% |
Acxiom Corp. (a) | 1,422,637 | | 20,714 |
Amdocs Ltd. (a) | 395,241 | | 12,154 |
Atos Origin SA (a) | 331,448 | | 20,426 |
Computer Sciences Corp. | 346,266 | | 17,653 |
Fiserv, Inc. (a) | 341,595 | | 20,943 |
MasterCard, Inc. Class A | 141,649 | | 39,080 |
Unisys Corp. (a) | 160,800 | | 4,773 |
| | 135,743 |
Semiconductors & Semiconductor Equipment - 2.1% |
Advanced Micro Devices, Inc. (a)(d) | 2,162,196 | | 19,676 |
Avago Technologies Ltd. | 271,791 | | 9,094 |
Intersil Corp. Class A | 3,798,210 | | 56,100 |
Lam Research Corp. (a) | 355,903 | | 17,194 |
Marvell Technology Group Ltd. (a) | 2,261,096 | | 34,889 |
Micron Technology, Inc. (a) | 2,541,552 | | 28,694 |
ON Semiconductor Corp. (a) | 1,554,094 | | 16,334 |
PMC-Sierra, Inc. (a) | 1,239,466 | | 9,941 |
| | 191,922 |
Software - 0.9% |
BMC Software, Inc. (a) | 713,977 | | 35,863 |
CA, Inc. | 1,401,106 | | 34,453 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Micro Focus International PLC | 1,469,100 | | $ 9,117 |
Symantec Corp. (a) | 314,075 | | 6,172 |
| | 85,605 |
TOTAL INFORMATION TECHNOLOGY | | 731,229 |
MATERIALS - 5.8% |
Chemicals - 3.6% |
Air Products & Chemicals, Inc. | 373,947 | | 35,719 |
Ashland, Inc. | 1,115,587 | | 69,256 |
Cabot Corp. | 719,100 | | 32,252 |
Celanese Corp. Class A | 1,230,725 | | 61,438 |
Innophos Holdings, Inc. | 353,485 | | 16,380 |
Lanxess AG | 163,500 | | 14,998 |
Olin Corp. | 504,524 | | 12,986 |
Solutia, Inc. (a) | 1,700,949 | | 44,820 |
W.R. Grace & Co. (a) | 618,119 | | 28,038 |
Wacker Chemie AG | 37,500 | | 9,293 |
| | 325,180 |
Construction Materials - 0.4% |
HeidelbergCement AG (d) | 255,683 | | 19,553 |
James Hardie Industries NV CDI (a) | 2,019,729 | | 13,066 |
| | 32,619 |
Containers & Packaging - 0.8% |
Ball Corp. | 1,097,358 | | 40,942 |
Owens-Illinois, Inc. (a) | 641,427 | | 19,031 |
Silgan Holdings, Inc. | 387,001 | | 17,748 |
| | 77,721 |
Metals & Mining - 1.0% |
Commercial Metals Co. | 812,751 | | 13,622 |
Compass Minerals International, Inc. | 467,569 | | 45,639 |
IAMGOLD Corp. | 820,200 | | 17,052 |
Walter Energy, Inc. | 120,871 | | 16,707 |
| | 93,020 |
TOTAL MATERIALS | | 528,540 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 2.0% |
Diversified Telecommunication Services - 0.8% |
AboveNet, Inc. | 108,793 | | $ 7,262 |
Cbeyond, Inc. (a) | 759,216 | | 9,688 |
CenturyLink, Inc. | 1,078,491 | | 43,981 |
Cincinnati Bell, Inc. New (a) | 1,473,400 | | 4,405 |
Iliad Group SA | 77,297 | | 9,937 |
| | 75,273 |
Wireless Telecommunication Services - 1.2% |
American Tower Corp. Class A (a) | 947,000 | | 49,538 |
NII Holdings, Inc. (a) | 952,341 | | 39,598 |
Sprint Nextel Corp. (a) | 3,588,744 | | 18,590 |
| | 107,726 |
TOTAL TELECOMMUNICATION SERVICES | | 182,999 |
UTILITIES - 9.4% |
Electric Utilities - 2.2% |
NextEra Energy, Inc. | 929,893 | | 52,604 |
PPL Corp. | 5,403,599 | | 148,215 |
| | 200,819 |
Gas Utilities - 0.7% |
China Gas Holdings Ltd. | 24,334,000 | | 9,525 |
National Fuel Gas Co. | 464,776 | | 34,068 |
ONEOK, Inc. | 244,595 | | 17,107 |
| | 60,700 |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 7,951,800 | | 105,282 |
Calpine Corp. (a) | 4,220,800 | | 70,698 |
| | 175,980 |
Multi-Utilities - 4.6% |
CenterPoint Energy, Inc. | 1,481,000 | | 27,547 |
National Grid PLC | 10,091,860 | | 103,547 |
OGE Energy Corp. | 534,065 | | 28,396 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Multi-Utilities - continued |
PG&E Corp. | 2,586,663 | | $ 119,193 |
Sempra Energy | 2,599,000 | | 143,205 |
| | 421,888 |
TOTAL UTILITIES | | 859,387 |
TOTAL COMMON STOCKS (Cost $8,098,236) | 8,953,522 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.05% 6/2/11 to 6/30/11 (g)
(Cost $5,550) | | $ 5,550 | | 5,550 |
Money Market Funds - 3.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 176,598,656 | | 176,599 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 175,738,995 | | 175,739 |
TOTAL MONEY MARKET FUNDS (Cost $352,338) | 352,338 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $8,456,124) | | 9,311,410 |
NET OTHER ASSETS (LIABILITIES) - (1.9)% | | (173,280) |
NET ASSETS - 100% | $ 9,138,130 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
411 CME E-mini S&P Midcap 400 Index Contracts | June 2011 | | $ 41,655 | | $ 1,890 |
|
The face value of futures purchased as a percentage of net assets is 0.5% |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 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 $33,074,000 or 0.4% of net assets. |
(g) 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 $2,650,000. |
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 | $ 167 |
Fidelity Securities Lending Cash Central Fund | 640 |
Total | $ 807 |
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 |
Ethan Allen Interiors, Inc. | $ 40,015 | $ - | $ 38,809 | $ 162 | $ - |
Forestar Group, Inc. | 33,849 | 622 | 6,012 | - | - |
OfficeMax, Inc. | 80,319 | 5,315 | 8,528 | - | 44,483 |
Pinnacle Airlines Corp. | 11,091 | - | - | - | 10,494 |
Quality Distribution, Inc. | 12,378 | 4,149 | 2,977 | - | 23,325 |
Vitran Corp., Inc. | 15,100 | - | 723 | - | 20,263 |
Total | $ 192,752 | $ 10,086 | $ 57,049 | $ 162 | $ 98,565 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,030,579 | $ 1,030,579 | $ - | $ - |
Consumer Staples | 590,848 | 590,848 | - | - |
Energy | 1,031,477 | 1,031,477 | - | - |
Financials | 2,371,331 | 2,342,351 | 28,980 | - |
Health Care | 539,980 | 539,980 | - | - |
Industrials | 1,087,152 | 1,087,152 | - | - |
Information Technology | 731,229 | 731,229 | - | - |
Materials | 528,540 | 528,540 | - | - |
Telecommunication Services | 182,999 | 182,999 | - | - |
Utilities | 859,387 | 755,840 | 103,547 | - |
U.S. Government and Government Agency Obligations | 5,550 | - | 5,550 | - |
Money Market Funds | 352,338 | 352,338 | - | - |
Total Investments in Securities: | $ 9,311,410 | $ 9,173,333 | $ 138,077 | $ - |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 1,890 | $ 1,890 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 1,890 | $ - |
Total Value of Derivatives | $ 1,890 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.7% |
Canada | 2.5% |
United Kingdom | 2.3% |
Ireland | 2.1% |
Bermuda | 1.9% |
France | 1.5% |
Switzerland | 1.4% |
Italy | 1.2% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $3,208,718,000 of which $104,186,000, $2,771,650,000 and $332,882,000 will expire in fiscal 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $169,467) - See accompanying schedule: Unaffiliated issuers (cost $7,939,487) | $ 8,860,507 | |
Fidelity Central Funds (cost $352,338) | 352,338 | |
Other affiliated issuers (cost $164,299) | 98,565 | |
Total Investments (cost $8,456,124) | | $ 9,311,410 |
Foreign currency held at value (cost $202) | | 202 |
Receivable for investments sold | | 115,859 |
Receivable for fund shares sold | | 7,115 |
Dividends receivable | | 5,630 |
Distributions receivable from Fidelity Central Funds | | 201 |
Receivable for daily variation on futures contracts | | 156 |
Prepaid expenses | | 8 |
Other receivables | | 538 |
Total assets | | 9,441,119 |
| | |
Liabilities | | |
Payable to custodian bank | $ 49 | |
Payable for investments purchased | 109,599 | |
Payable for fund shares redeemed | 12,975 | |
Accrued management fee | 2,813 | |
Other affiliated payables | 1,442 | |
Other payables and accrued expenses | 372 | |
Collateral on securities loaned, at value | 175,739 | |
Total liabilities | | 302,989 |
| | |
Net Assets | | $ 9,138,130 |
Net Assets consist of: | | |
Paid in capital | | $ 10,919,671 |
Undistributed net investment income | | 8,498 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,647,314) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 857,275 |
Net Assets | | $ 9,138,130 |
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, 2011 (Unaudited) |
| | |
Value:
Net Asset Value, offering price and redemption price per share ($8,030,414 ÷ 105,847 shares) | | $ 75.87 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,107,716 ÷ 14,583 shares) | | $ 75.96 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $162 earned from other affiliated issuers) | | $ 55,544 |
Interest | | 5 |
Income from Fidelity Central Funds | | 807 |
Total income | | 56,356 |
| | |
Expenses | | |
Management fee
Basic fee | $ 24,347 | |
Performance adjustment | (8,910) | |
Transfer agent fees | 8,065 | |
Accounting and security lending fees | 629 | |
Custodian fees and expenses | 126 | |
Independent trustees' compensation | 22 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 76 | |
Audit | 44 | |
Legal | 17 | |
Miscellaneous | 43 | |
Total expenses before reductions | 24,460 | |
Expense reductions | (393) | 24,067 |
Net investment income (loss) | | 32,289 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 675,158 | |
Other affiliated issuers | (13,702) | |
Foreign currency transactions | (317) | |
Futures contracts | 8,596 | |
Total net realized gain (loss) | | 669,735 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 873,747 | |
Assets and liabilities in foreign currencies | 102 | |
Futures contracts | 1,443 | |
Total change in net unrealized appreciation (depreciation) | | 875,292 |
Net gain (loss) | | 1,545,027 |
Net increase (decrease) in net assets resulting from operations | | $ 1,577,316 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 32,289 | $ 92,872 |
Net realized gain (loss) | 669,735 | (403,665) |
Change in net unrealized appreciation (depreciation) | 875,292 | 2,075,224 |
Net increase (decrease) in net assets resulting
from operations | 1,577,316 | 1,764,431 |
Distributions to shareholders from net investment income | (112,001) | (70,609) |
Distributions to shareholders from net realized gain | (2,508) | - |
Total distributions | (114,509) | (70,609) |
Share transactions - net increase (decrease) | (471,699) | (1,308,650) |
Total increase (decrease) in net assets | 991,108 | 385,172 |
| | |
Net Assets | | |
Beginning of period | 8,147,022 | 7,761,850 |
End of period (including undistributed net investment income of $8,498 and undistributed net investment income of $88,210, respectively) | $ 9,138,130 | $ 8,147,022 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Value
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 64.09 | $ 51.82 | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .66 G | .59 | .75 | .64 | .61 |
Net realized and unrealized gain (loss) | 12.43 | 12.09 | 7.69 | (38.92) | 11.79 | 13.17 |
Total from investment operations | 12.68 | 12.75 | 8.28 | (38.17) | 12.43 | 13.78 |
Distributions from net investment income | (.88) | (.48) | (.24) | (.56) | (.56) | (.43) |
Distributions from net realized gain | (.02) | - | - | (7.09) | (6.09) | (5.14) |
Total distributions | (.90) | (.48) | (.24) | (7.65) | (6.65) | (5.57) |
Net asset value, end of period | $ 75.87 | $ 64.09 | $ 51.82 | $ 43.78 | $ 89.60 | $ 83.82 |
Total Return B, C | 19.98% | 24.74% | 19.12% | (46.34)% | 15.82% | 19.01% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .58% A | .64% | .64% | .76% | .70% | .67% |
Expenses net of fee waivers, if any | .58% A | .64% | .64% | .76% | .70% | .67% |
Expenses net of all reductions | .57% A | .63% | .64% | .76% | .69% | .66% |
Net investment income (loss) | .72% A | 1.12% G | 1.41% | 1.10% | .74% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 8,030 | $ 7,276 | $ 7,278 | $ 11,066 | $ 22,558 | $ 17,153 |
Portfolio turnover rate F | 95% A | 148% | 51% | 50% | 44% | 36% |
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.
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 $.23 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .73%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 H |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 64.24 | $ 51.96 | $ 43.82 | $ 72.61 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .31 | .76 G | .72 | .25 |
Net realized and unrealized gain (loss) | 12.43 | 12.12 | 7.67 | (29.04) |
Total from investment operations | 12.74 | 12.88 | 8.39 | (28.79) |
Distributions from net investment income | (1.00) | (.60) | (.25) | - |
Distributions from net realized gain | (.02) | - | - | - |
Total distributions | (1.02) | (.60) | (.25) | - |
Net asset value, end of period | $ 75.96 | $ 64.24 | $ 51.96 | $ 43.82 |
Total Return B, C | 20.06% | 24.96% | 19.39% | (39.65)% |
Ratios to Average Net Assets E, I | | | | |
Expenses before reductions | .43% A | .47% | .40% | .60% A |
Expenses net of fee waivers, if any | .43% A | .47% | .40% | .60% A |
Expenses net of all reductions | .42% A | .46% | .40% | .60% A |
Net investment income (loss) | .87% A | 1.29% G | 1.64% | 1.17% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 1,108 | $ 872 | $ 484 | $ 177 |
Portfolio turnover rate F | 95% A | 148% | 51% | 50% |
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.
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 $.23 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .90%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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. 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
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. 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 market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,292,184 |
Gross unrealized depreciation | (513,861) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 778,323 |
Tax cost | $ 8,533,087 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $8,596 and a change in net unrealized appreciation (depreciation) of $1,443 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,056,871 and $4,581,343, respectively.
Semiannual Report
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Value, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .35% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Value | $ 7,808 | .20 |
Class K | 257 | .05 |
| $ 8,065 | |
* 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 $135 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $640. During the period, there were no securities loaned to FCM.
10. 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 $393 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Value | $ 98,394 | $ 65,010 |
Class K | 13,607 | 5,599 |
Total | $ 112,001 | $ 70,609 |
From net realized gain | | |
Value | $ 2,236 | $ - |
Class K | 272 | - |
Total | $ 2,508 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Value | | | | |
Shares sold | 6,644 | 15,905 | $ 470,473 | $ 953,857 |
Reinvestment of distributions | 1,446 | 1,127 | 96,363 | 62,576 |
Shares redeemed | (15,756) | (43,950) | (1,110,541) | (2,561,113) |
Net increase (decrease) | (7,666) | (26,918) | $ (543,705) | $ (1,544,680) |
Class K | | | | |
Shares sold | 2,456 | 9,653 | $ 174,255 | $ 558,763 |
Reinvestment of distributions | 208 | 101 | 13,879 | 5,599 |
Shares redeemed | (1,647) | (5,506) | (116,128) | (328,332) |
Net increase (decrease) | 1,017 | 4,248 | $ 72,006 | $ 236,030 |
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 distributions, 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
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
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-0611
1.784919.108
Fidelity®
Value
Fund -
Class K
Semiannual Report
April 30, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | The Chairman'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/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
(photo_of_James_C_Curvey)
Dear Shareholder:
Amid indications the U.S. economy had turned a corner, U.S. equities continued their generally upward trend in early 2011, overcoming bouts of short-term volatility following unrest in North Africa and the disaster in Japan. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
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, 2010 to April 30, 2011).
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, 2010 | Ending
Account Value
April 30, 2011 | Expenses Paid
During Period*
November 1, 2010 to
April 30, 2011 |
Value | .58% | | | |
Actual | | $ 1,000.00 | $ 1,199.80 | $ 3.16 |
HypotheticalA | | $ 1,000.00 | $ 1,021.92 | $ 2.91 |
Class K | .43% | | | |
Actual | | $ 1,000.00 | $ 1,200.60 | $ 2.35 |
HypotheticalA | | $ 1,000.00 | $ 1,022.66 | $ 2.16 |
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, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
PPL Corp. | 1.6 | 1.4 |
U.S. Bancorp, Delaware | 1.6 | 1.2 |
Sempra Energy | 1.6 | 1.5 |
Baker Hughes, Inc. | 1.4 | 1.0 |
PG&E Corp. | 1.3 | 1.3 |
Whiting Petroleum Corp. | 1.3 | 0.9 |
Wells Fargo & Co. | 1.2 | 1.2 |
AES Corp. | 1.1 | 1.1 |
National Grid PLC | 1.1 | 1.2 |
MetLife, Inc. | 1.1 | 0.8 |
| 13.3 | |
Top Five Market Sectors as of April 30, 2011 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 25.9 | 26.4 |
Industrials | 11.9 | 11.8 |
Energy | 11.3 | 9.6 |
Consumer Discretionary | 11.3 | 12.0 |
Utilities | 9.4 | 10.6 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2011 * | As of October 31, 2010 ** |
| Stocks and
Equity Futures 98.5% | | | Stocks and
Equity Futures 98.1% | |
| Short-Term
Investments and
Net Other Assets 1.5% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
* Foreign investments | 16.3% | | ** Foreign investments | 13.4% | |
Semiannual Report
Investments April 30, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 11.3% |
Auto Components - 0.3% |
Autoliv, Inc. | 327,491 | | $ 26,242 |
Automobiles - 0.6% |
Fiat SpA | 2,742,200 | | 29,265 |
Harley-Davidson, Inc. | 755,241 | | 28,140 |
| | 57,405 |
Diversified Consumer Services - 0.5% |
Grand Canyon Education, Inc. (a) | 1,078,353 | | 15,593 |
H&R Block, Inc. (d) | 1,153,570 | | 19,945 |
Service Corp. International | 1,198,112 | | 14,102 |
| | 49,640 |
Hotels, Restaurants & Leisure - 1.6% |
Accor SA | 266,455 | | 11,840 |
Brinker International, Inc. | 684,756 | | 16,496 |
Penn National Gaming, Inc. (a) | 648,700 | | 25,954 |
Sonic Corp. (a) | 2,275,758 | | 25,534 |
WMS Industries, Inc. (a) | 829,302 | | 27,201 |
Wyndham Worldwide Corp. | 1,078,880 | | 37,340 |
| | 144,365 |
Household Durables - 2.6% |
Ethan Allen Interiors, Inc. (d) | 918,782 | | 22,133 |
Garmin Ltd. (d) | 620,000 | | 21,223 |
Jarden Corp. | 2,369,872 | | 86,240 |
PulteGroup, Inc. (a) | 1,772,471 | | 14,410 |
Stanley Black & Decker, Inc. | 1,222,000 | | 88,778 |
| | 232,784 |
Leisure Equipment & Products - 1.0% |
Brunswick Corp. | 2,129,527 | | 49,767 |
Eastman Kodak Co. (a)(d) | 5,584,538 | | 15,525 |
Hasbro, Inc. | 472,941 | | 22,153 |
| | 87,445 |
Media - 0.5% |
MDC Partners, Inc. Class A (sub. vtg.) | 612,500 | | 10,186 |
United Business Media Ltd. | 1,348,438 | | 13,605 |
Valassis Communications, Inc. (a) | 884,286 | | 25,494 |
| | 49,285 |
Multiline Retail - 0.6% |
Big Lots, Inc. (a) | 351,423 | | 14,447 |
Kohl's Corp. | 326,736 | | 17,222 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Multiline Retail - continued |
PPR SA | 78,100 | | $ 13,969 |
Retail Ventures, Inc. (a) | 563,225 | | 11,563 |
| | 57,201 |
Specialty Retail - 3.2% |
Advance Auto Parts, Inc. | 175,789 | | 11,507 |
Aeropostale, Inc. (a) | 466,653 | | 11,914 |
Ascena Retail Group, Inc. (a) | 344,200 | | 10,770 |
Best Buy Co., Inc. | 1,442,902 | | 45,047 |
Chico's FAS, Inc. | 1,464,163 | | 21,421 |
Collective Brands, Inc. (a)(d) | 2,059,526 | | 43,250 |
Gap, Inc. | 1,250,175 | | 29,054 |
Lowe's Companies, Inc. | 847,565 | | 22,249 |
OfficeMax, Inc. (a)(e) | 4,466,214 | | 44,483 |
Sally Beauty Holdings, Inc. (a) | 2,649,299 | | 39,183 |
Staples, Inc. | 709,410 | | 14,997 |
| | 293,875 |
Textiles, Apparel & Luxury Goods - 0.4% |
Hanesbrands, Inc. (a) | 525,158 | | 17,073 |
Warnaco Group, Inc. (a) | 237,164 | | 15,264 |
| | 32,337 |
TOTAL CONSUMER DISCRETIONARY | | 1,030,579 |
CONSUMER STAPLES - 6.5% |
Beverages - 2.1% |
Britvic PLC | 2,373,200 | | 16,233 |
Coca-Cola Enterprises, Inc. | 1,091,746 | | 31,017 |
Dr Pepper Snapple Group, Inc. | 1,523,992 | | 59,740 |
Molson Coors Brewing Co. Class B | 609,900 | | 29,733 |
PepsiCo, Inc. | 827,063 | | 56,976 |
| | 193,699 |
Food & Staples Retailing - 1.6% |
Casey's General Stores, Inc. | 561,916 | | 21,932 |
CVS Caremark Corp. | 650,519 | | 23,575 |
Kroger Co. | 2,025,527 | | 49,241 |
Walgreen Co. | 938,625 | | 40,098 |
Winn-Dixie Stores, Inc. (a) | 1,473,493 | | 10,447 |
| | 145,293 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER STAPLES - continued |
Food Products - 2.1% |
Archer Daniels Midland Co. | 835,597 | | $ 30,934 |
Bunge Ltd. | 797,061 | | 60,130 |
Danone | 351,000 | | 25,712 |
Dean Foods Co. (a) | 3,252,582 | | 36,396 |
Sara Lee Corp. | 1,437,179 | | 27,594 |
The J.M. Smucker Co. | 173,901 | | 13,055 |
| | 193,821 |
Household Products - 0.2% |
Spectrum Brands Holdings, Inc. (a) | 395,781 | | 12,863 |
Personal Products - 0.2% |
Avon Products, Inc. | 730,670 | | 21,467 |
Tobacco - 0.3% |
Lorillard, Inc. | 222,578 | | 23,705 |
TOTAL CONSUMER STAPLES | | 590,848 |
ENERGY - 11.3% |
Energy Equipment & Services - 4.1% |
Baker Hughes, Inc. | 1,621,426 | | 125,515 |
Cameron International Corp. (a) | 669,540 | | 35,298 |
Exterran Holdings, Inc. (a) | 431,000 | | 9,357 |
Halliburton Co. | 1,505,200 | | 75,982 |
Nabors Industries Ltd. (a) | 1,034,400 | | 31,694 |
Rowan Companies, Inc. (a) | 1,015,312 | | 42,339 |
Saipem SpA | 231,606 | | 13,149 |
Transocean Ltd. (a) | 436,614 | | 31,764 |
Trinidad Drilling Ltd. | 729,400 | | 8,357 |
| | 373,455 |
Oil, Gas & Consumable Fuels - 7.2% |
Apache Corp. | 411,100 | | 54,828 |
Cimarex Energy Co. | 872,929 | | 96,537 |
Enbridge Energy Partners LP | 1,157,610 | | 39,243 |
Forest Oil Corp. (a) | 552,700 | | 19,847 |
Newfield Exploration Co. (a) | 300,015 | | 21,241 |
Nexen, Inc. | 1,143,700 | | 30,258 |
Peabody Energy Corp. | 852,300 | | 56,951 |
PetroBakken Energy Ltd. Class A | 283,500 | | 5,382 |
Petrohawk Energy Corp. (a) | 1,407,016 | | 38,004 |
Talisman Energy, Inc. | 3,145,300 | | 75,965 |
Tesoro Corp. (a) | 436,800 | | 11,846 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Whiting Petroleum Corp. (a) | 1,664,746 | | $ 115,700 |
Williams Companies, Inc. | 2,443,392 | | 81,047 |
World Fuel Services Corp. | 282,277 | | 11,173 |
| | 658,022 |
TOTAL ENERGY | | 1,031,477 |
FINANCIALS - 25.9% |
Capital Markets - 3.2% |
Bank of New York Mellon Corp. | 2,555,672 | | 74,012 |
Invesco Ltd. | 1,823,850 | | 45,359 |
Morgan Stanley | 1,921,715 | | 50,253 |
State Street Corp. | 1,723,340 | | 80,221 |
TD Ameritrade Holding Corp. | 2,128,750 | | 45,853 |
| | 295,698 |
Commercial Banks - 5.3% |
BB&T Corp. | 326,080 | | 8,778 |
CIT Group, Inc. (a) | 1,472,505 | | 62,523 |
Comerica, Inc. | 646,296 | | 24,514 |
Commercial Bank of Qatar GDR (Reg. S) | 575,461 | | 2,314 |
Heritage Financial Corp., Washington (a) | 123,900 | | 1,826 |
Itau Unibanco Banco Multiplo SA: | | | |
ADR (a)(f) | 1,392,600 | | 33,074 |
sponsored ADR | 168,500 | | 4,002 |
PNC Financial Services Group, Inc. | 395,755 | | 24,671 |
Regions Financial Corp. | 6,295,530 | | 46,209 |
TCF Financial Corp. | 1,436,200 | | 22,390 |
U.S. Bancorp, Delaware | 5,689,877 | | 146,913 |
Wells Fargo & Co. | 3,711,941 | | 108,055 |
| | 485,269 |
Consumer Finance - 0.7% |
SLM Corp. | 3,687,000 | | 61,167 |
Diversified Financial Services - 0.9% |
JPMorgan Chase & Co. | 1,882,721 | | 85,909 |
Insurance - 8.5% |
AEGON NV (a) | 3,645,831 | | 28,980 |
AFLAC, Inc. | 440,955 | | 24,777 |
Allstate Corp. | 371,385 | | 12,568 |
Aon Corp. | 217,923 | | 11,369 |
Berkshire Hathaway, Inc. Class B (a) | 1,185,856 | | 98,782 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - continued |
Delphi Financial Group, Inc. Class A | 1,318,837 | | $ 42,137 |
Everest Re Group Ltd. | 289,449 | | 26,375 |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 82,000 | | 33,117 |
First American Financial Corp. | 2,040,032 | | 31,824 |
Genworth Financial, Inc. Class A (a) | 2,365,954 | | 28,841 |
Hilltop Holdings, Inc. (a) | 995,650 | | 9,658 |
Jardine Lloyd Thompson Group PLC | 2,725,229 | | 32,025 |
Lincoln National Corp. | 1,954,332 | | 61,034 |
MetLife, Inc. | 2,142,164 | | 100,232 |
National Financial Partners Corp. (a) | 1,082,065 | | 17,410 |
Progressive Corp. | 636,700 | | 13,969 |
Reinsurance Group of America, Inc. | 517,718 | | 32,772 |
StanCorp Financial Group, Inc. | 655,975 | | 28,273 |
Torchmark Corp. | 473,734 | | 31,702 |
Unum Group | 2,246,206 | | 59,480 |
XL Group PLC Class A | 2,189,452 | | 53,466 |
| | 778,791 |
Real Estate Investment Trusts - 5.0% |
Alexandria Real Estate Equities, Inc. (d) | 576,720 | | 47,378 |
Corporate Office Properties Trust (SBI) | 302,336 | | 10,645 |
Douglas Emmett, Inc. | 991,500 | | 20,633 |
Mission West Properties, Inc. | 39,700 | | 305 |
Post Properties, Inc. | 699,692 | | 28,407 |
ProLogis Trust | 5,294,506 | | 86,248 |
Public Storage | 260,377 | | 30,545 |
Rayonier, Inc. | 133,423 | | 8,854 |
SL Green Realty Corp. | 939,414 | | 77,530 |
The Macerich Co. | 501,300 | | 26,479 |
Ventas, Inc. | 1,011,592 | | 56,578 |
Vornado Realty Trust | 121,095 | | 11,707 |
Weyerhaeuser Co. | 2,317,821 | | 53,333 |
| | 458,642 |
Real Estate Management & Development - 1.9% |
BR Malls Participacoes SA | 1,974,700 | | 20,785 |
CB Richard Ellis Group, Inc. Class A (a) | 1,075,753 | | 28,733 |
Forest City Enterprises, Inc. Class A (a)(d) | 3,039,501 | | 58,389 |
Forestar Group, Inc. (a) | 1,704,293 | | 33,523 |
Kennedy-Wilson Holdings, Inc. (a)(d) | 631,118 | | 7,226 |
Wharf Holdings Ltd. | 3,158,000 | | 23,097 |
| | 171,753 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.4% |
Capitol Federal Financial, Inc. | 330,300 | | $ 3,739 |
People's United Financial, Inc. | 2,217,882 | | 30,363 |
| | 34,102 |
TOTAL FINANCIALS | | 2,371,331 |
HEALTH CARE - 5.9% |
Biotechnology - 0.3% |
Cephalon, Inc. (a) | 64,200 | | 4,931 |
Gilead Sciences, Inc. (a) | 337,289 | | 13,100 |
PDL BioPharma, Inc. | 1,883,000 | | 12,089 |
| | 30,120 |
Health Care Equipment & Supplies - 1.2% |
Alere, Inc. (a) | 105,300 | | 3,911 |
Boston Scientific Corp. (a) | 5,984,261 | | 44,822 |
CareFusion Corp. (a) | 468,200 | | 13,751 |
Covidien PLC | 357,200 | | 19,892 |
Hill-Rom Holdings, Inc. | 119,925 | | 5,398 |
Kinetic Concepts, Inc. (a) | 112,800 | | 6,659 |
Zimmer Holdings, Inc. (a) | 189,067 | | 12,337 |
| | 106,770 |
Health Care Providers & Services - 2.8% |
Brookdale Senior Living, Inc. (a) | 1,207,296 | | 32,887 |
Community Health Systems, Inc. (a) | 295,500 | | 9,081 |
DaVita, Inc. (a) | 289,534 | | 25,505 |
Fleury SA | 334,950 | | 4,992 |
HCA Holdings, Inc. | 206,100 | | 6,760 |
Health Net, Inc. (a) | 502,400 | | 16,730 |
HealthSouth Corp. (a) | 395,100 | | 10,126 |
Lincare Holdings, Inc. | 1,119,565 | | 35,177 |
McKesson Corp. | 529,804 | | 43,979 |
Medco Health Solutions, Inc. (a) | 544,500 | | 32,305 |
MEDNAX, Inc. (a) | 95,900 | | 6,801 |
Quest Diagnostics, Inc. | 110,900 | | 6,253 |
Universal American Financial Corp. | 343,569 | | 7,936 |
Universal Health Services, Inc. Class B | 410,381 | | 22,481 |
| | 261,013 |
Life Sciences Tools & Services - 0.7% |
ICON PLC sponsored ADR (a) | 986,450 | | 24,227 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Life Sciences Tools & Services - continued |
Life Technologies Corp. (a) | 174,000 | | $ 9,605 |
Thermo Fisher Scientific, Inc. (a) | 486,800 | | 29,203 |
| | 63,035 |
Pharmaceuticals - 0.9% |
AVANIR Pharmaceuticals Class A (a)(d) | 2,745,239 | | 11,997 |
Cadence Pharmaceuticals, Inc. (a)(d) | 1,231,967 | | 10,447 |
Forest Laboratories, Inc. (a) | 309,900 | | 10,276 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 585,586 | | 26,779 |
Valeant Pharmaceuticals International, Inc. (Canada) | 200,316 | | 10,565 |
XenoPort, Inc. (a) | 1,097,500 | | 8,978 |
| | 79,042 |
TOTAL HEALTH CARE | | 539,980 |
INDUSTRIALS - 11.9% |
Aerospace & Defense - 2.1% |
AerCap Holdings NV (a) | 837,368 | | 11,991 |
DigitalGlobe, Inc. (a) | 817,870 | | 23,718 |
Esterline Technologies Corp. (a) | 322,420 | | 23,150 |
Lockheed Martin Corp. | 146,885 | | 11,641 |
Meggitt PLC | 8,806,200 | | 52,808 |
Precision Castparts Corp. | 106,272 | | 16,421 |
Raytheon Co. | 412,011 | | 20,003 |
Safran SA (d) | 484,894 | | 18,817 |
Textron, Inc. | 676,244 | | 17,650 |
| | 196,199 |
Airlines - 0.1% |
Pinnacle Airlines Corp. (a)(e) | 1,925,465 | | 10,494 |
Building Products - 1.7% |
A.O. Smith Corp. | 330,600 | | 14,536 |
Armstrong World Industries, Inc. | 415,398 | | 18,589 |
Lennox International, Inc. | 320,405 | | 15,575 |
Masco Corp. | 1,363,926 | | 18,304 |
Owens Corning (a) | 2,315,612 | | 87,623 |
| | 154,627 |
Commercial Services & Supplies - 1.5% |
Iron Mountain, Inc. | 199,352 | | 6,349 |
Quad/Graphics, Inc. (a) | 297,654 | | 11,924 |
Republic Services, Inc. | 2,433,127 | | 76,935 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Commercial Services & Supplies - continued |
Sykes Enterprises, Inc. (a) | 912,797 | | $ 18,283 |
The Geo Group, Inc. (a) | 952,179 | | 25,404 |
| | 138,895 |
Construction & Engineering - 0.8% |
Foster Wheeler AG (a) | 1,988,203 | | 70,720 |
Electrical Equipment - 1.2% |
Alstom SA | 419,929 | | 27,925 |
GrafTech International Ltd. (a) | 1,359,317 | | 31,536 |
Prysmian SpA (d) | 2,259,364 | | 53,311 |
| | 112,772 |
Industrial Conglomerates - 0.2% |
Carlisle Companies, Inc. | 328,000 | | 16,249 |
Machinery - 2.1% |
Charter International PLC | 777,643 | | 10,665 |
Dover Corp. | 196,821 | | 13,392 |
Fiat Industrial SpA (a) | 1,457,794 | | 21,658 |
Ingersoll-Rand Co. Ltd. | 1,497,277 | | 75,612 |
Navistar International Corp. (a) | 876,886 | | 60,961 |
Vallourec SA | 114,500 | | 14,278 |
| | 196,566 |
Marine - 0.1% |
Ultrapetrol (Bahamas) Ltd. (a) | 1,082,677 | | 5,901 |
Professional Services - 0.6% |
Towers Watson & Co. | 881,250 | | 50,549 |
Road & Rail - 1.5% |
Contrans Group, Inc. Class A | 1,870,900 | | 17,797 |
Quality Distribution, Inc. (a)(e) | 1,960,095 | | 23,325 |
Union Pacific Corp. | 703,535 | | 72,795 |
Vitran Corp., Inc. (a)(e) | 1,299,745 | | 20,263 |
| | 134,180 |
TOTAL INDUSTRIALS | | 1,087,152 |
INFORMATION TECHNOLOGY - 8.0% |
Communications Equipment - 0.5% |
Cisco Systems, Inc. | 625,629 | | 10,986 |
Comverse Technology, Inc. (a) | 2,789,160 | | 21,253 |
Motorola Solutions, Inc. | 354,600 | | 16,269 |
| | 48,508 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Computers & Peripherals - 0.9% |
Gemalto NV | 453,279 | | $ 23,234 |
Hewlett-Packard Co. | 1,160,518 | | 46,850 |
Western Digital Corp. (a) | 215,700 | | 8,585 |
| | 78,669 |
Electronic Equipment & Components - 1.4% |
Arrow Electronics, Inc. (a) | 627,120 | | 28,590 |
Avnet, Inc. (a) | 718,260 | | 26,087 |
Corning, Inc. | 1,118,028 | | 23,412 |
Flextronics International Ltd. (a) | 4,011,755 | | 27,962 |
Jabil Circuit, Inc. | 1,116,566 | | 22,153 |
| | 128,204 |
Internet Software & Services - 0.7% |
eBay, Inc. (a) | 966,378 | | 33,243 |
Google, Inc. Class A (a) | 36,200 | | 19,696 |
Yahoo!, Inc. (a) | 543,057 | | 9,639 |
| | 62,578 |
IT Services - 1.5% |
Acxiom Corp. (a) | 1,422,637 | | 20,714 |
Amdocs Ltd. (a) | 395,241 | | 12,154 |
Atos Origin SA (a) | 331,448 | | 20,426 |
Computer Sciences Corp. | 346,266 | | 17,653 |
Fiserv, Inc. (a) | 341,595 | | 20,943 |
MasterCard, Inc. Class A | 141,649 | | 39,080 |
Unisys Corp. (a) | 160,800 | | 4,773 |
| | 135,743 |
Semiconductors & Semiconductor Equipment - 2.1% |
Advanced Micro Devices, Inc. (a)(d) | 2,162,196 | | 19,676 |
Avago Technologies Ltd. | 271,791 | | 9,094 |
Intersil Corp. Class A | 3,798,210 | | 56,100 |
Lam Research Corp. (a) | 355,903 | | 17,194 |
Marvell Technology Group Ltd. (a) | 2,261,096 | | 34,889 |
Micron Technology, Inc. (a) | 2,541,552 | | 28,694 |
ON Semiconductor Corp. (a) | 1,554,094 | | 16,334 |
PMC-Sierra, Inc. (a) | 1,239,466 | | 9,941 |
| | 191,922 |
Software - 0.9% |
BMC Software, Inc. (a) | 713,977 | | 35,863 |
CA, Inc. | 1,401,106 | | 34,453 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Software - continued |
Micro Focus International PLC | 1,469,100 | | $ 9,117 |
Symantec Corp. (a) | 314,075 | | 6,172 |
| | 85,605 |
TOTAL INFORMATION TECHNOLOGY | | 731,229 |
MATERIALS - 5.8% |
Chemicals - 3.6% |
Air Products & Chemicals, Inc. | 373,947 | | 35,719 |
Ashland, Inc. | 1,115,587 | | 69,256 |
Cabot Corp. | 719,100 | | 32,252 |
Celanese Corp. Class A | 1,230,725 | | 61,438 |
Innophos Holdings, Inc. | 353,485 | | 16,380 |
Lanxess AG | 163,500 | | 14,998 |
Olin Corp. | 504,524 | | 12,986 |
Solutia, Inc. (a) | 1,700,949 | | 44,820 |
W.R. Grace & Co. (a) | 618,119 | | 28,038 |
Wacker Chemie AG | 37,500 | | 9,293 |
| | 325,180 |
Construction Materials - 0.4% |
HeidelbergCement AG (d) | 255,683 | | 19,553 |
James Hardie Industries NV CDI (a) | 2,019,729 | | 13,066 |
| | 32,619 |
Containers & Packaging - 0.8% |
Ball Corp. | 1,097,358 | | 40,942 |
Owens-Illinois, Inc. (a) | 641,427 | | 19,031 |
Silgan Holdings, Inc. | 387,001 | | 17,748 |
| | 77,721 |
Metals & Mining - 1.0% |
Commercial Metals Co. | 812,751 | | 13,622 |
Compass Minerals International, Inc. | 467,569 | | 45,639 |
IAMGOLD Corp. | 820,200 | | 17,052 |
Walter Energy, Inc. | 120,871 | | 16,707 |
| | 93,020 |
TOTAL MATERIALS | | 528,540 |
Common Stocks - continued |
| Shares | | Value (000s) |
TELECOMMUNICATION SERVICES - 2.0% |
Diversified Telecommunication Services - 0.8% |
AboveNet, Inc. | 108,793 | | $ 7,262 |
Cbeyond, Inc. (a) | 759,216 | | 9,688 |
CenturyLink, Inc. | 1,078,491 | | 43,981 |
Cincinnati Bell, Inc. New (a) | 1,473,400 | | 4,405 |
Iliad Group SA | 77,297 | | 9,937 |
| | 75,273 |
Wireless Telecommunication Services - 1.2% |
American Tower Corp. Class A (a) | 947,000 | | 49,538 |
NII Holdings, Inc. (a) | 952,341 | | 39,598 |
Sprint Nextel Corp. (a) | 3,588,744 | | 18,590 |
| | 107,726 |
TOTAL TELECOMMUNICATION SERVICES | | 182,999 |
UTILITIES - 9.4% |
Electric Utilities - 2.2% |
NextEra Energy, Inc. | 929,893 | | 52,604 |
PPL Corp. | 5,403,599 | | 148,215 |
| | 200,819 |
Gas Utilities - 0.7% |
China Gas Holdings Ltd. | 24,334,000 | | 9,525 |
National Fuel Gas Co. | 464,776 | | 34,068 |
ONEOK, Inc. | 244,595 | | 17,107 |
| | 60,700 |
Independent Power Producers & Energy Traders - 1.9% |
AES Corp. (a) | 7,951,800 | | 105,282 |
Calpine Corp. (a) | 4,220,800 | | 70,698 |
| | 175,980 |
Multi-Utilities - 4.6% |
CenterPoint Energy, Inc. | 1,481,000 | | 27,547 |
National Grid PLC | 10,091,860 | | 103,547 |
OGE Energy Corp. | 534,065 | | 28,396 |
Common Stocks - continued |
| Shares | | Value (000s) |
UTILITIES - continued |
Multi-Utilities - continued |
PG&E Corp. | 2,586,663 | | $ 119,193 |
Sempra Energy | 2,599,000 | | 143,205 |
| | 421,888 |
TOTAL UTILITIES | | 859,387 |
TOTAL COMMON STOCKS (Cost $8,098,236) | 8,953,522 |
U.S. Treasury Obligations - 0.1% |
| Principal Amount (000s) | | |
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.05% 6/2/11 to 6/30/11 (g)
(Cost $5,550) | | $ 5,550 | | 5,550 |
Money Market Funds - 3.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.13% (b) | 176,598,656 | | 176,599 |
Fidelity Securities Lending Cash Central Fund, 0.12% (b)(c) | 175,738,995 | | 175,739 |
TOTAL MONEY MARKET FUNDS (Cost $352,338) | 352,338 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $8,456,124) | | 9,311,410 |
NET OTHER ASSETS (LIABILITIES) - (1.9)% | | (173,280) |
NET ASSETS - 100% | $ 9,138,130 |
Futures Contracts |
| Expiration Date | | Underlying Face Amount at Value (000s) | | Unrealized Appreciation/
(Depreciation) (000s) |
Purchased |
Equity Index Contracts |
411 CME E-mini S&P Midcap 400 Index Contracts | June 2011 | | $ 41,655 | | $ 1,890 |
|
The face value of futures purchased as a percentage of net assets is 0.5% |
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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or 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 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 $33,074,000 or 0.4% of net assets. |
(g) 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 $2,650,000. |
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 | $ 167 |
Fidelity Securities Lending Cash Central Fund | 640 |
Total | $ 807 |
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 |
Ethan Allen Interiors, Inc. | $ 40,015 | $ - | $ 38,809 | $ 162 | $ - |
Forestar Group, Inc. | 33,849 | 622 | 6,012 | - | - |
OfficeMax, Inc. | 80,319 | 5,315 | 8,528 | - | 44,483 |
Pinnacle Airlines Corp. | 11,091 | - | - | - | 10,494 |
Quality Distribution, Inc. | 12,378 | 4,149 | 2,977 | - | 23,325 |
Vitran Corp., Inc. | 15,100 | - | 723 | - | 20,263 |
Total | $ 192,752 | $ 10,086 | $ 57,049 | $ 162 | $ 98,565 |
Other Information |
The following is a summary of the inputs used, as of April 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used 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: | | | | |
Equities: | | | | |
Consumer Discretionary | $ 1,030,579 | $ 1,030,579 | $ - | $ - |
Consumer Staples | 590,848 | 590,848 | - | - |
Energy | 1,031,477 | 1,031,477 | - | - |
Financials | 2,371,331 | 2,342,351 | 28,980 | - |
Health Care | 539,980 | 539,980 | - | - |
Industrials | 1,087,152 | 1,087,152 | - | - |
Information Technology | 731,229 | 731,229 | - | - |
Materials | 528,540 | 528,540 | - | - |
Telecommunication Services | 182,999 | 182,999 | - | - |
Utilities | 859,387 | 755,840 | 103,547 | - |
U.S. Government and Government Agency Obligations | 5,550 | - | 5,550 | - |
Money Market Funds | 352,338 | 352,338 | - | - |
Total Investments in Securities: | $ 9,311,410 | $ 9,173,333 | $ 138,077 | $ - |
Derivative Instruments: | | | | |
Assets | | | | |
Futures Contracts | $ 1,890 | $ 1,890 | $ - | $ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by risk exposure as of April 30, 2011. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Risk Exposure /
Derivative Type | Value
(Amounts in thousands) |
| Asset | Liability |
Equity Risk | | |
Futures Contracts (a) | $ 1,890 | $ - |
Total Value of Derivatives | $ 1,890 | $ - |
(a) Reflects cumulative appreciation/(depreciation) on futures contracts as disclosed on the Schedule of Investments. Only the period end variation margin is separately disclosed on the Statement of Assets and Liabilities. |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 83.7% |
Canada | 2.5% |
United Kingdom | 2.3% |
Ireland | 2.1% |
Bermuda | 1.9% |
France | 1.5% |
Switzerland | 1.4% |
Italy | 1.2% |
Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
Income Tax Information |
At October 31, 2010, the Fund had a capital loss carryforward of approximately $3,208,718,000 of which $104,186,000, $2,771,650,000 and $332,882,000 will expire in fiscal 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
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, 2011 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $169,467) - See accompanying schedule: Unaffiliated issuers (cost $7,939,487) | $ 8,860,507 | |
Fidelity Central Funds (cost $352,338) | 352,338 | |
Other affiliated issuers (cost $164,299) | 98,565 | |
Total Investments (cost $8,456,124) | | $ 9,311,410 |
Foreign currency held at value (cost $202) | | 202 |
Receivable for investments sold | | 115,859 |
Receivable for fund shares sold | | 7,115 |
Dividends receivable | | 5,630 |
Distributions receivable from Fidelity Central Funds | | 201 |
Receivable for daily variation on futures contracts | | 156 |
Prepaid expenses | | 8 |
Other receivables | | 538 |
Total assets | | 9,441,119 |
| | |
Liabilities | | |
Payable to custodian bank | $ 49 | |
Payable for investments purchased | 109,599 | |
Payable for fund shares redeemed | 12,975 | |
Accrued management fee | 2,813 | |
Other affiliated payables | 1,442 | |
Other payables and accrued expenses | 372 | |
Collateral on securities loaned, at value | 175,739 | |
Total liabilities | | 302,989 |
| | |
Net Assets | | $ 9,138,130 |
Net Assets consist of: | | |
Paid in capital | | $ 10,919,671 |
Undistributed net investment income | | 8,498 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,647,314) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 857,275 |
Net Assets | | $ 9,138,130 |
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, 2011 (Unaudited) |
| | |
Value:
Net Asset Value, offering price and redemption price per share ($8,030,414 ÷ 105,847 shares) | | $ 75.87 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,107,716 ÷ 14,583 shares) | | $ 75.96 |
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, 2011 (Unaudited) |
| | |
Investment Income | | |
Dividends (including $162 earned from other affiliated issuers) | | $ 55,544 |
Interest | | 5 |
Income from Fidelity Central Funds | | 807 |
Total income | | 56,356 |
| | |
Expenses | | |
Management fee
Basic fee | $ 24,347 | |
Performance adjustment | (8,910) | |
Transfer agent fees | 8,065 | |
Accounting and security lending fees | 629 | |
Custodian fees and expenses | 126 | |
Independent trustees' compensation | 22 | |
Appreciation in deferred trustee compensation account | 1 | |
Registration fees | 76 | |
Audit | 44 | |
Legal | 17 | |
Miscellaneous | 43 | |
Total expenses before reductions | 24,460 | |
Expense reductions | (393) | 24,067 |
Net investment income (loss) | | 32,289 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 675,158 | |
Other affiliated issuers | (13,702) | |
Foreign currency transactions | (317) | |
Futures contracts | 8,596 | |
Total net realized gain (loss) | | 669,735 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 873,747 | |
Assets and liabilities in foreign currencies | 102 | |
Futures contracts | 1,443 | |
Total change in net unrealized appreciation (depreciation) | | 875,292 |
Net gain (loss) | | 1,545,027 |
Net increase (decrease) in net assets resulting from operations | | $ 1,577,316 |
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, 2011
(Unaudited) | Year ended
October 31,
2010 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 32,289 | $ 92,872 |
Net realized gain (loss) | 669,735 | (403,665) |
Change in net unrealized appreciation (depreciation) | 875,292 | 2,075,224 |
Net increase (decrease) in net assets resulting
from operations | 1,577,316 | 1,764,431 |
Distributions to shareholders from net investment income | (112,001) | (70,609) |
Distributions to shareholders from net realized gain | (2,508) | - |
Total distributions | (114,509) | (70,609) |
Share transactions - net increase (decrease) | (471,699) | (1,308,650) |
Total increase (decrease) in net assets | 991,108 | 385,172 |
| | |
Net Assets | | |
Beginning of period | 8,147,022 | 7,761,850 |
End of period (including undistributed net investment income of $8,498 and undistributed net investment income of $88,210, respectively) | $ 9,138,130 | $ 8,147,022 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Value
| Six months ended
April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 64.09 | $ 51.82 | $ 43.78 | $ 89.60 | $ 83.82 | $ 75.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .66 G | .59 | .75 | .64 | .61 |
Net realized and unrealized gain (loss) | 12.43 | 12.09 | 7.69 | (38.92) | 11.79 | 13.17 |
Total from investment operations | 12.68 | 12.75 | 8.28 | (38.17) | 12.43 | 13.78 |
Distributions from net investment income | (.88) | (.48) | (.24) | (.56) | (.56) | (.43) |
Distributions from net realized gain | (.02) | - | - | (7.09) | (6.09) | (5.14) |
Total distributions | (.90) | (.48) | (.24) | (7.65) | (6.65) | (5.57) |
Net asset value, end of period | $ 75.87 | $ 64.09 | $ 51.82 | $ 43.78 | $ 89.60 | $ 83.82 |
Total Return B, C | 19.98% | 24.74% | 19.12% | (46.34)% | 15.82% | 19.01% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before reductions | .58% A | .64% | .64% | .76% | .70% | .67% |
Expenses net of fee waivers, if any | .58% A | .64% | .64% | .76% | .70% | .67% |
Expenses net of all reductions | .57% A | .63% | .64% | .76% | .69% | .66% |
Net investment income (loss) | .72% A | 1.12% G | 1.41% | 1.10% | .74% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 8,030 | $ 7,276 | $ 7,278 | $ 11,066 | $ 22,558 | $ 17,153 |
Portfolio turnover rate F | 95% A | 148% | 51% | 50% | 44% | 36% |
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.
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 $.23 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .73%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class K
| Six months ended April 30, 2011 | Years ended October 31, |
| (Unaudited) | 2010 | 2009 | 2008 H |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 64.24 | $ 51.96 | $ 43.82 | $ 72.61 |
Income from Investment Operations | | | | |
Net investment income (loss) D | .31 | .76 G | .72 | .25 |
Net realized and unrealized gain (loss) | 12.43 | 12.12 | 7.67 | (29.04) |
Total from investment operations | 12.74 | 12.88 | 8.39 | (28.79) |
Distributions from net investment income | (1.00) | (.60) | (.25) | - |
Distributions from net realized gain | (.02) | - | - | - |
Total distributions | (1.02) | (.60) | (.25) | - |
Net asset value, end of period | $ 75.96 | $ 64.24 | $ 51.96 | $ 43.82 |
Total Return B, C | 20.06% | 24.96% | 19.39% | (39.65)% |
Ratios to Average Net Assets E, I | | | | |
Expenses before reductions | .43% A | .47% | .40% | .60% A |
Expenses net of fee waivers, if any | .43% A | .47% | .40% | .60% A |
Expenses net of all reductions | .42% A | .46% | .40% | .60% A |
Net investment income (loss) | .87% A | 1.29% G | 1.64% | 1.17% A |
Supplemental Data | | | | |
Net assets, end of period (in millions) | $ 1,108 | $ 872 | $ 484 | $ 177 |
Portfolio turnover rate F | 95% A | 148% | 51% | 50% |
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.
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 $.23 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .90%.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2011 (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. 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.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, 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:
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. 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 market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of April 30, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 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.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a 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, including 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. 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 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 the short-term gain distributions from the Fidelity Central Funds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,292,184 |
Gross unrealized depreciation | (513,861) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 778,323 |
Tax cost | $ 8,533,087 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund used derivative instruments (derivatives), including futures contracts, in order to meet its investment objectives. The strategy is to use derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to sell the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's maximum risk of loss from counterparty credit risk is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. Counterparty risk related to exchange-traded futures contracts is minimal because of the protection provided by the exchange on which they trade. Derivatives involve, to varying degrees, risk of loss in excess of the amounts recognized in the Statement of Assets and Liabilities.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
The underlying face amount at value of 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 and is representative of activity for the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments. The receivable and/or payable for the variation margin are reflected in the Statement of Assets and Liabilities.
Certain risks arise upon entering into futures contracts, including the risk that an illiquid market limits the ability to close out a futures contract prior to settlement date.
During the period the Fund recognized net realized gain (loss) of $8,596 and a change in net unrealized appreciation (depreciation) of $1,443 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
6. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,056,871 and $4,581,343, respectively.
Semiannual Report
7. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Value, as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .35% 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, transfer agent fees for each class were as follows:
| Amount | % of
Average
Net Assets* |
Value | $ 7,808 | .20 |
Class K | 257 | .05 |
| $ 8,065 | |
* 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 $135 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.0 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 $15 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
9. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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 rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $640. During the period, there were no securities loaned to FCM.
10. 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 $393 for the period.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
From net investment income | | |
Value | $ 98,394 | $ 65,010 |
Class K | 13,607 | 5,599 |
Total | $ 112,001 | $ 70,609 |
From net realized gain | | |
Value | $ 2,236 | $ - |
Class K | 272 | - |
Total | $ 2,508 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2011 | Year ended
October 31,
2010 | Six months ended
April 30,
2011 | Year ended
October 31,
2010 |
Value | | | | |
Shares sold | 6,644 | 15,905 | $ 470,473 | $ 953,857 |
Reinvestment of distributions | 1,446 | 1,127 | 96,363 | 62,576 |
Shares redeemed | (15,756) | (43,950) | (1,110,541) | (2,561,113) |
Net increase (decrease) | (7,666) | (26,918) | $ (543,705) | $ (1,544,680) |
Class K | | | | |
Shares sold | 2,456 | 9,653 | $ 174,255 | $ 558,763 |
Reinvestment of distributions | 208 | 101 | 13,879 | 5,599 |
Shares redeemed | (1,647) | (5,506) | (116,128) | (328,332) |
Net increase (decrease) | 1,017 | 4,248 | $ 72,006 | $ 236,030 |
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 workplace benefits (including your workplace savings plan, investments, and additional services) via your telephone or PC. You can access your plan and account information and research your investments 24 hours a day.
By Phone
Fidelity provides a single toll-free number to access plan information, account balances, positions, and quotes*. 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 Workplace
Investing
1-800-835-5092
By PC
Fidelity's web site on the Internet provides a wide range of information, including plan information, daily financial news, fund performance, interactive planning tools, and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.401k.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 distributions, 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)
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
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
The Bank of New York Mellon
New York, NY
VAL-K-USAN-0611
1.863250.102
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 24, 2011 |
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 24, 2011 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | June 24, 2011 |
