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)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(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, 2018 |
Item 1.
Reports to Stockholders
Fidelity® Value Fund Semi-Annual Report April 30, 2018 |
 |
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Discover Financial Services | 1.5 |
| Sempra Energy | 1.4 |
| Synchrony Financial | 1.3 |
| Wells Fargo & Co. | 1.2 |
| Xcel Energy, Inc. | 1.2 |
| U.S. Bancorp | 1.1 |
| PPL Corp. | 1.0 |
| American Tower Corp. | 1.0 |
| Berkshire Hathaway, Inc. Class B | 1.0 |
| NRG Energy, Inc. | 1.0 |
| 11.7 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Financials | 17.8 |
| Consumer Discretionary | 13.1 |
| Real Estate | 11.4 |
| Industrials | 10.6 |
| Energy | 9.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks and Equity Futures | 98.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.4% | |
* Foreign investments - 15.9%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.1% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 13.1% | |||
| Auto Components - 0.8% | |||
| Adient PLC | 263,800 | $16,168 | |
| American Axle & Manufacturing Holdings, Inc. (a) | 3,142,700 | 48,209 | |
| 64,377 | |||
| Diversified Consumer Services - 0.7% | |||
| Houghton Mifflin Harcourt Co. (a) | 4,916,506 | 33,432 | |
| ServiceMaster Global Holdings, Inc. (a) | 436,913 | 22,108 | |
| 55,540 | |||
| Hotels, Restaurants & Leisure - 2.2% | |||
| DineEquity, Inc. | 397,147 | 31,510 | |
| Eldorado Resorts, Inc. (a) | 1,593,665 | 64,543 | |
| U.S. Foods Holding Corp. (a) | 1,922,100 | 65,697 | |
| Wyndham Worldwide Corp. | 139,000 | 15,875 | |
| 177,625 | |||
| Household Durables - 1.1% | |||
| D.R. Horton, Inc. | 1,466,000 | 64,709 | |
| Tempur Sealy International, Inc. (a)(b) | 595,800 | 26,662 | |
| 91,371 | |||
| Internet & Direct Marketing Retail - 0.6% | |||
| Liberty Interactive Corp. QVC Group Series A (a) | 1,925,800 | 45,083 | |
| Leisure Products - 0.8% | |||
| Mattel, Inc. (b) | 3,587,900 | 53,101 | |
| Vista Outdoor, Inc. (a) | 660,700 | 11,067 | |
| 64,168 | |||
| Media - 4.3% | |||
| Discovery Communications, Inc. Class A (a)(b) | 977,700 | 23,123 | |
| DISH Network Corp. Class A (a) | 756,600 | 25,384 | |
| Entercom Communications Corp. Class A (b) | 4,251,300 | 43,151 | |
| GCI Liberty, Inc. (a) | 631,600 | 28,169 | |
| Grupo Televisa SA de CV (CPO) sponsored ADR | 1,206,300 | 21,617 | |
| Liberty Broadband Corp. Class C (a) | 335,771 | 23,803 | |
| Liberty Global PLC Class C (a) | 1,066,600 | 31,038 | |
| Nexstar Broadcasting Group, Inc. Class A | 297,800 | 18,538 | |
| Omnicom Group, Inc. | 801,000 | 59,002 | |
| Sinclair Broadcast Group, Inc. Class A (b) | 1,801,956 | 51,085 | |
| Twenty-First Century Fox, Inc. Class A | 718,600 | 26,272 | |
| 351,182 | |||
| Specialty Retail - 2.6% | |||
| Lowe's Companies, Inc. | 657,500 | 54,198 | |
| Michaels Companies, Inc. (a) | 1,009,800 | 18,802 | |
| O'Reilly Automotive, Inc. (a) | 265,300 | 67,935 | |
| Sally Beauty Holdings, Inc. (a) | 1,752,100 | 30,294 | |
| Signet Jewelers Ltd. | 1,067,400 | 41,501 | |
| 212,730 | |||
| TOTAL CONSUMER DISCRETIONARY | 1,062,076 | ||
| CONSUMER STAPLES - 5.3% | |||
| Beverages - 0.3% | |||
| Cott Corp. | 1,634,311 | 23,370 | |
| Food & Staples Retailing - 0.6% | |||
| CVS Health Corp. | 650,100 | 45,396 | |
| Food Products - 3.1% | |||
| Darling International, Inc. (a) | 2,650,000 | 45,421 | |
| Greencore Group PLC | 9,903,600 | 21,644 | |
| Kellogg Co. | 275,503 | 16,227 | |
| Nomad Foods Ltd. (a) | 1,983,417 | 32,707 | |
| The Hershey Co. | 59,700 | 5,489 | |
| The J.M. Smucker Co. | 462,931 | 52,811 | |
| TreeHouse Foods, Inc. (a) | 728,400 | 28,043 | |
| Tyson Foods, Inc. Class A | 698,100 | 48,937 | |
| 251,279 | |||
| Household Products - 0.4% | |||
| Spectrum Brands Holdings, Inc. | 412,823 | 29,765 | |
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 2,137,409 | 37,084 | |
| Tobacco - 0.5% | |||
| British American Tobacco PLC (United Kingdom) | 714,700 | 39,200 | |
| TOTAL CONSUMER STAPLES | 426,094 | ||
| ENERGY - 9.1% | |||
| Energy Equipment & Services - 1.6% | |||
| Baker Hughes, a GE Co. Class A | 1,938,471 | 69,998 | |
| C&J Energy Services, Inc. (a) | 267,600 | 7,991 | |
| Dril-Quip, Inc. (a) | 103,883 | 4,306 | |
| Halliburton Co. | 189,455 | 10,039 | |
| Nabors Industries Ltd. | 3,935,600 | 29,950 | |
| TechnipFMC PLC (b) | 188,827 | 6,224 | |
| 128,508 | |||
| Oil, Gas & Consumable Fuels - 7.5% | |||
| Andeavor | 306,500 | 42,395 | |
| Boardwalk Pipeline Partners, LP | 2,929,300 | 33,306 | |
| Cenovus Energy, Inc. | 3,275,400 | 32,806 | |
| Cheniere Energy, Inc. (a) | 648,800 | 37,734 | |
| Concho Resources, Inc. (a) | 144,300 | 22,685 | |
| Diamondback Energy, Inc. (a) | 189,517 | 24,343 | |
| Encana Corp. | 2,288,300 | 28,498 | |
| Energen Corp. (a) | 201,479 | 13,185 | |
| Enterprise Products Partners LP | 651,000 | 17,473 | |
| EQT Corp. | 907,164 | 45,531 | |
| GasLog Ltd. | 1,568,100 | 26,422 | |
| Golar LNG Ltd. | 713,748 | 22,947 | |
| Lundin Petroleum AB | 1,094,900 | 30,284 | |
| Marathon Petroleum Corp. | 579,099 | 43,380 | |
| Newfield Exploration Co. (a) | 338,310 | 10,082 | |
| Phillips 66 Co. | 281,300 | 31,312 | |
| Plains GP Holdings LP Class A | 867,900 | 21,021 | |
| Teekay Corp. (b) | 3,026,564 | 26,694 | |
| Teekay LNG Partners LP | 2,328,777 | 42,500 | |
| Teekay Offshore Partners LP | 9,417,100 | 26,274 | |
| WPX Energy, Inc. (a) | 1,754,000 | 29,976 | |
| 608,848 | |||
| TOTAL ENERGY | 737,356 | ||
| FINANCIALS - 17.8% | |||
| Banks - 4.4% | |||
| Bank Ireland Group PLC | 728,557 | 6,515 | |
| CIT Group, Inc. | 1,331,274 | 70,491 | |
| EFG Eurobank Ergasias SA (a) | 6,140,560 | 7,779 | |
| First Citizen Bancshares, Inc. Class A | 73,592 | 31,813 | |
| PNC Financial Services Group, Inc. | 344,900 | 50,221 | |
| U.S. Bancorp | 1,826,115 | 92,128 | |
| Wells Fargo & Co. | 1,920,928 | 99,811 | |
| 358,758 | |||
| Capital Markets - 4.2% | |||
| Ameriprise Financial, Inc. | 145,600 | 20,415 | |
| Apollo Global Management LLC Class A | 1,767,632 | 50,979 | |
| Ares Capital Corp. (b) | 907,879 | 14,562 | |
| Ares Management LP | 1,632,200 | 35,908 | |
| Brighthouse Financial, Inc. | 125,000 | 6,348 | |
| Brookfield Asset Management, Inc. Class A | 252,550 | 10,010 | |
| Franklin Resources, Inc. | 764,800 | 25,728 | |
| KKR & Co. LP | 1,133,736 | 23,740 | |
| Legg Mason, Inc. | 1,384,000 | 54,945 | |
| Oaktree Capital Group LLC Class A | 300,000 | 11,850 | |
| State Street Corp. | 266,700 | 26,611 | |
| The Blackstone Group LP | 1,402,804 | 43,417 | |
| Tullett Prebon PLC | 2,479,900 | 16,087 | |
| 340,600 | |||
| Consumer Finance - 5.0% | |||
| Ally Financial, Inc. | 511,200 | 13,342 | |
| Capital One Financial Corp. | 579,291 | 52,495 | |
| Discover Financial Services | 1,696,200 | 120,849 | |
| Navient Corp. | 1,400,000 | 18,564 | |
| OneMain Holdings, Inc. (a) | 1,349,338 | 41,627 | |
| Santander Consumer U.S.A. Holdings, Inc. | 700,000 | 12,915 | |
| SLM Corp. (a) | 3,301,600 | 37,902 | |
| Synchrony Financial | 3,170,500 | 105,165 | |
| 402,859 | |||
| Diversified Financial Services - 1.5% | |||
| Berkshire Hathaway, Inc. Class B (a) | 429,291 | 83,167 | |
| Donnelley Financial Solutions, Inc. (a)(c) | 2,022,366 | 37,212 | |
| 120,379 | |||
| Insurance - 2.7% | |||
| AFLAC, Inc. | 234,692 | 10,695 | |
| AMBAC Financial Group, Inc. (a) | 2,040,459 | 34,749 | |
| American International Group, Inc. | 807,900 | 45,242 | |
| Axis Capital Holdings Ltd. | 50,000 | 2,935 | |
| Chubb Ltd. | 361,348 | 49,024 | |
| FNF Group | 865,700 | 31,884 | |
| Greenlight Capital Re, Ltd. (a) | 312,343 | 4,841 | |
| Hartford Financial Services Group, Inc. | 275,000 | 14,806 | |
| Reinsurance Group of America, Inc. | 99,093 | 14,804 | |
| The Travelers Companies, Inc. | 80,000 | 10,528 | |
| 219,508 | |||
| TOTAL FINANCIALS | 1,442,104 | ||
| HEALTH CARE - 6.1% | |||
| Biotechnology - 1.0% | |||
| Alexion Pharmaceuticals, Inc. (a) | 106,200 | 12,492 | |
| Amgen, Inc. | 231,600 | 40,410 | |
| United Therapeutics Corp. (a) | 269,800 | 29,708 | |
| �� | 82,610 | ||
| Health Care Equipment & Supplies - 0.9% | |||
| Dentsply Sirona, Inc. | 145,900 | 7,345 | |
| Teleflex, Inc. | 40,300 | 10,796 | |
| The Cooper Companies, Inc. | 18,000 | 4,117 | |
| Zimmer Biomet Holdings, Inc. | 424,246 | 48,860 | |
| 71,118 | |||
| Health Care Providers & Services - 1.9% | |||
| Centene Corp. (a) | 85,100 | 9,240 | |
| Cigna Corp. | 84,600 | 14,536 | |
| DaVita HealthCare Partners, Inc. (a) | 82,700 | 5,193 | |
| McKesson Corp. | 278,100 | 43,442 | |
| Patterson Companies, Inc. | 397,300 | 9,249 | |
| Premier, Inc. (a) | 749,800 | 24,736 | |
| Quest Diagnostics, Inc. | 143,100 | 14,482 | |
| Universal Health Services, Inc. Class B | 290,574 | 33,184 | |
| 154,062 | |||
| Life Sciences Tools & Services - 0.2% | |||
| Agilent Technologies, Inc. | 169,800 | 11,163 | |
| PerkinElmer, Inc. | 76,000 | 5,575 | |
| 16,738 | |||
| Pharmaceuticals - 2.1% | |||
| Allergan PLC | 181,000 | 27,811 | |
| Indivior PLC (a) | 3,792,300 | 23,656 | |
| Jazz Pharmaceuticals PLC (a) | 458,709 | 69,742 | |
| Mallinckrodt PLC (a)(b) | 1,250,200 | 16,253 | |
| Mylan NV (a) | 358,800 | 13,907 | |
| Perrigo Co. PLC | 71,900 | 5,618 | |
| The Medicines Company (a) | 378,412 | 11,386 | |
| 168,373 | |||
| TOTAL HEALTH CARE | 492,901 | ||
| INDUSTRIALS - 10.6% | |||
| Aerospace & Defense - 0.9% | |||
| Aerojet Rocketdyne Holdings, Inc. (a) | 866,481 | 24,209 | |
| Huntington Ingalls Industries, Inc. | 146,600 | 35,655 | |
| Ultra Electronics Holdings PLC | 635,900 | 12,326 | |
| 72,190 | |||
| Air Freight & Logistics - 0.4% | |||
| United Parcel Service, Inc. Class B | 275,900 | 31,315 | |
| Airlines - 1.4% | |||
| American Airlines Group, Inc. | 1,749,117 | 75,090 | |
| JetBlue Airways Corp. (a) | 2,049,099 | 39,322 | |
| 114,412 | |||
| Commercial Services & Supplies - 0.5% | |||
| The Brink's Co. | 563,400 | 41,579 | |
| Construction & Engineering - 1.4% | |||
| AECOM (a) | 2,120,953 | 73,046 | |
| Arcadis NV | 1,370,339 | 27,040 | |
| Arcadis NV rights (a) | 1,244,941 | 707 | |
| Astaldi SpA (b) | 3,366,341 | 9,578 | |
| 110,371 | |||
| Electrical Equipment - 1.3% | |||
| Acuity Brands, Inc. | 200,100 | 23,966 | |
| Hubbell, Inc. Class B | 217,900 | 22,631 | |
| Regal Beloit Corp. | 472,600 | 33,649 | |
| Sensata Technologies, Inc. PLC (a) | 504,106 | 25,568 | |
| 105,814 | |||
| Machinery - 0.9% | |||
| Allison Transmission Holdings, Inc. | 1,482,665 | 57,809 | |
| SPX Corp. (a) | 554,911 | 17,557 | |
| SPX Flow, Inc. (a) | 34,902 | 1,571 | |
| 76,937 | |||
| Marine - 0.1% | |||
| A.P. Moller - Maersk A/S Series B | 2,997 | 4,836 | |
| Seaspan Corp. (b) | 340,702 | 2,620 | |
| 7,456 | |||
| Professional Services - 0.4% | |||
| Dun & Bradstreet Corp. | 142,900 | 16,478 | |
| Nielsen Holdings PLC | 513,100 | 16,137 | |
| 32,615 | |||
| Road & Rail - 0.6% | |||
| Avis Budget Group, Inc. (a) | 282,300 | 13,948 | |
| CSX Corp. | 382,432 | 22,713 | |
| Norfolk Southern Corp. | 69,087 | 9,912 | |
| 46,573 | |||
| Trading Companies & Distributors - 2.4% | |||
| AerCap Holdings NV (a) | 639,696 | 33,347 | |
| Ashtead Group PLC | 1,049,800 | 29,382 | |
| Fortress Transportation & Infrastructure Investors LLC | 1,483,100 | 24,679 | |
| HD Supply Holdings, Inc. (a) | 1,788,498 | 69,233 | |
| MRC Global, Inc. (a) | 735,299 | 13,772 | |
| Nexeo Solutions, Inc. (a) | 1,195,400 | 12,181 | |
| Nexeo Solutions, Inc. (a)(d) | 1,170,000 | 11,922 | |
| 194,516 | |||
| Transportation Infrastructure - 0.3% | |||
| Macquarie Infrastructure Co. LLC | 718,400 | 27,227 | |
| TOTAL INDUSTRIALS | 861,005 | ||
| INFORMATION TECHNOLOGY - 8.9% | |||
| Communications Equipment - 1.0% | |||
| CommScope Holding Co., Inc. (a) | 1,180,200 | 45,107 | |
| F5 Networks, Inc. (a) | 241,900 | 39,451 | |
| 84,558 | |||
| Electronic Equipment & Components - 1.0% | |||
| Dell Technologies, Inc. (a) | 319,400 | 22,923 | |
| Jabil, Inc. | 1,288,203 | 34,266 | |
| TE Connectivity Ltd. | 277,766 | 25,485 | |
| 82,674 | |||
| IT Services - 5.0% | |||
| Alliance Data Systems Corp. | 92,400 | 18,762 | |
| Amdocs Ltd. | 857,900 | 57,694 | |
| Booz Allen Hamilton Holding Corp. Class A | 982,000 | 38,917 | |
| Cognizant Technology Solutions Corp. Class A | 585,700 | 47,922 | |
| Conduent, Inc. (a) | 3,009,500 | 58,565 | |
| DXC Technology Co. | 490,500 | 50,551 | |
| First Data Corp. Class A (a) | 2,862,900 | 51,818 | |
| Leidos Holdings, Inc. | 847,949 | 54,464 | |
| Unisys Corp. (a)(b) | 2,005,601 | 22,463 | |
| 401,156 | |||
| Semiconductors & Semiconductor Equipment - 1.1% | |||
| Analog Devices, Inc. | 472,600 | 41,282 | |
| Qualcomm, Inc. | 912,354 | 46,539 | |
| 87,821 | |||
| Software - 0.8% | |||
| Micro Focus International PLC | 2,484,800 | 42,846 | |
| Totvs SA | 2,129,500 | 19,452 | |
| 62,298 | |||
| TOTAL INFORMATION TECHNOLOGY | 718,507 | ||
| MATERIALS - 7.8% | |||
| Chemicals - 4.7% | |||
| Axalta Coating Systems Ltd. (a) | 1,357,146 | 41,936 | |
| Celanese Corp. Class A | 165,400 | 17,974 | |
| CF Industries Holdings, Inc. | 907,900 | 35,227 | |
| DowDuPont, Inc. | 562,706 | 35,586 | |
| Eastman Chemical Co. | 351,603 | 35,892 | |
| FMC Corp. | 141,200 | 11,258 | |
| LyondellBasell Industries NV Class A | 477,880 | 50,526 | |
| Nutrien Ltd. | 595,580 | 27,113 | |
| Olin Corp. | 329,900 | 9,960 | |
| Orion Engineered Carbons SA | 866,000 | 23,209 | |
| The Chemours Co. LLC | 777,900 | 37,658 | |
| Tronox Ltd. Class A | 1,102,377 | 18,939 | |
| Westlake Chemical Corp. | 331,500 | 35,461 | |
| 380,739 | |||
| Construction Materials - 0.6% | |||
| Eagle Materials, Inc. | 487,200 | 48,213 | |
| Containers & Packaging - 1.8% | |||
| Avery Dennison Corp. | 130,056 | 13,631 | |
| Ball Corp. | 397,200 | 15,924 | |
| Berry Global Group, Inc. (a) | 462,600 | 25,443 | |
| Crown Holdings, Inc. (a) | 466,800 | 23,265 | |
| Graphic Packaging Holding Co. | 2,496,073 | 35,694 | |
| Silgan Holdings, Inc. | 1,158,100 | 32,508 | |
| 146,465 | |||
| Metals & Mining - 0.7% | |||
| Antofagasta PLC | 448,800 | 6,008 | |
| Constellium NV (a) | 1,311,700 | 14,888 | |
| Randgold Resources Ltd. sponsored ADR | 135,200 | 10,965 | |
| Steel Dynamics, Inc. | 478,465 | 21,440 | |
| 53,301 | |||
| TOTAL MATERIALS | 628,718 | ||
| REAL ESTATE - 11.4% | |||
| Equity Real Estate Investment Trusts (REITs) - 10.5% | |||
| American Tower Corp. | 623,704 | 85,048 | |
| AvalonBay Communities, Inc. | 142,200 | 23,179 | |
| Boston Properties, Inc. | 176,600 | 21,441 | |
| Colony NorthStar, Inc. | 7,003,208 | 42,790 | |
| Corporate Office Properties Trust (SBI) | 716,600 | 19,714 | |
| Douglas Emmett, Inc. | 996,200 | 37,128 | |
| Equinix, Inc. | 105,600 | 44,435 | |
| Equity Commonwealth (a) | 62,800 | 1,946 | |
| Equity Lifestyle Properties, Inc. | 773,261 | 68,944 | |
| Equity Residential (SBI) | 404,100 | 24,937 | |
| Essex Property Trust, Inc. | 223,500 | 53,571 | |
| Extra Space Storage, Inc. | 467,900 | 41,919 | |
| Forest City Realty Trust, Inc. Class A | 977,195 | 19,603 | |
| General Growth Properties, Inc. | 863,100 | 17,253 | |
| Grivalia Properties REIC | 4,054,559 | 44,654 | |
| iStar Financial, Inc. (a) | 2,236,865 | 22,682 | |
| National Retail Properties, Inc. | 1,078,788 | 41,037 | |
| Outfront Media, Inc. | 1,670,900 | 31,329 | |
| Public Storage | 186,200 | 37,571 | |
| Safety Income and Growth, Inc. | 177,000 | 3,177 | |
| SBA Communications Corp. Class A (a) | 12,500 | 2,003 | |
| Simon Property Group, Inc. | 34,500 | 5,394 | |
| SL Green Realty Corp. | 413,500 | 40,415 | |
| Spirit Realty Capital, Inc. | 3,627,700 | 29,203 | |
| Taubman Centers, Inc. | 596,600 | 33,398 | |
| VEREIT, Inc. | 5,292,200 | 35,987 | |
| Washington Prime Group, Inc. (b) | 2,198,100 | 14,222 | |
| Welltower, Inc. | 222,300 | 11,880 | |
| 854,860 | |||
| Real Estate Management & Development - 0.9% | |||
| CBRE Group, Inc. (a) | 987,000 | 44,721 | |
| Howard Hughes Corp. (a) | 197,200 | 26,681 | |
| 71,402 | |||
| TOTAL REAL ESTATE | 926,262 | ||
| TELECOMMUNICATION SERVICES - 0.1% | |||
| Diversified Telecommunication Services - 0.1% | |||
| CenturyLink, Inc. | 616,607 | 11,457 | |
| UTILITIES - 7.9% | |||
| Electric Utilities - 4.5% | |||
| Eversource Energy | 371,500 | 22,383 | |
| Exelon Corp. | 1,802,800 | 71,535 | |
| NextEra Energy, Inc. | 152,718 | 25,032 | |
| PG&E Corp. | 274,300 | 12,645 | |
| PPL Corp. | 2,933,500 | 85,365 | |
| Vistra Energy Corp. (a) | 1,550,700 | 35,433 | |
| Westar Energy, Inc. | 346,300 | 18,763 | |
| Xcel Energy, Inc. | 2,029,400 | 95,057 | |
| 366,213 | |||
| Independent Power and Renewable Electricity Producers - 1.8% | |||
| NRG Energy, Inc. | 2,522,300 | 78,191 | |
| The AES Corp. | 5,452,200 | 66,735 | |
| 144,926 | |||
| Multi-Utilities - 1.6% | |||
| CMS Energy Corp. | 293,700 | 13,860 | |
| Sempra Energy | 1,008,097 | 112,705 | |
| 126,565 | |||
| TOTAL UTILITIES | 637,704 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,108,468) | 7,944,184 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 1.56% to 1.79% 5/10/18 to 7/19/18 (e) | |||
| (Cost $2,917) | 2,920 | 2,917 | |
| Shares | Value (000s) | ||
| Money Market Funds - 3.9% | |||
| Fidelity Cash Central Fund, 1.74% (f) | 152,396,292 | $152,427 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (f)(g) | 160,487,783 | 160,504 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $312,930) | 312,931 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.0% | |||
| (Cost $7,424,315) | 8,260,032 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (161,845) | ||
| NET ASSETS - 100% | $8,098,187 |
| Futures Contracts | |||||
| Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||||
| Equity Index Contracts | |||||
| CME E-mini S&P MidCap 400 Index Contracts (United States) | 212 | June 2018 | $39,689 | $(889) | $(889) |
The notional amount of futures purchased as a percentage of Net Assets is 0.5%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) 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 $11,922,000 or 0.1% of net assets.
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,220,000.
(f) Affiliated fund that is generally 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.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| Nexeo Solutions, Inc. | 6/9/16 | $11,700 |
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 | $742 |
| Fidelity Securities Lending Cash Central Fund | 1,131 |
| Total | $1,873 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Donnelley Financial Solutions, Inc. | $26,445 | $16,476 | $1,108 | $-- | $(133) | $(4,468) | $37,212 |
| Total | $26,445 | $16,476 | $1,108 | $-- | $(133) | $(4,468) | $37,212 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,062,076 | $1,062,076 | $-- | $-- |
| Consumer Staples | 426,094 | 386,894 | 39,200 | -- |
| Energy | 737,356 | 737,356 | -- | -- |
| Financials | 1,442,104 | 1,442,104 | -- | -- |
| Health Care | 492,901 | 492,901 | -- | -- |
| Industrials | 861,005 | 861,005 | -- | -- |
| Information Technology | 718,507 | 675,661 | 42,846 | -- |
| Materials | 628,718 | 628,718 | -- | -- |
| Real Estate | 926,262 | 926,262 | -- | -- |
| Telecommunication Services | 11,457 | 11,457 | -- | -- |
| Utilities | 637,704 | 637,704 | -- | -- |
| U.S. Government and Government Agency Obligations | 2,917 | -- | 2,917 | -- |
| Money Market Funds | 312,931 | 312,931 | -- | -- |
| Total Investments in Securities: | $8,260,032 | $8,175,069 | $84,963 | $-- |
| Derivative Instruments: | ||||
| Liabilities | ||||
| Futures Contracts | $(889) | $(889) | $-- | $-- |
| Total Liabilities | $(889) | $(889) | $-- | $-- |
| Total Derivative Instruments: | $(889) | $(889) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| (Amounts in thousands) | ||
| Equity Risk | ||
| Futures Contracts(a) | $0 | $(889) |
| Total Equity Risk | 0 | (889) |
| Total Value of Derivatives | $0 | $(889) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 84.1% |
| United Kingdom | 2.9% |
| Ireland | 2.1% |
| Bermuda | 2.0% |
| Netherlands | 1.8% |
| Canada | 1.4% |
| Marshall Islands | 1.1% |
| Others (Individually Less Than 1%) | 4.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $156,355) — See accompanying schedule: Unaffiliated issuers (cost $7,068,921) | $7,909,889 | |
| Fidelity Central Funds (cost $312,930) | 312,931 | |
| Other affiliated issuers (cost $42,464) | 37,212 | |
| Total Investment in Securities (cost $7,424,315) | $8,260,032 | |
| Cash | 131 | |
| Foreign currency held at value (cost $569) | 569 | |
| Receivable for investments sold | 78,855 | |
| Receivable for fund shares sold | 1,375 | |
| Dividends receivable | 5,782 | |
| Distributions receivable from Fidelity Central Funds | 383 | |
| Prepaid expenses | 4 | |
| Other receivables | 967 | |
| Total assets | 8,348,098 | |
| Liabilities | ||
| Payable for investments purchased | $73,508 | |
| Payable for fund shares redeemed | 11,205 | |
| Accrued management fee | 2,511 | |
| Payable for daily variation margin on futures contracts | 475 | |
| Other affiliated payables | 984 | |
| Other payables and accrued expenses | 727 | |
| Collateral on securities loaned | 160,501 | |
| Total liabilities | 249,911 | |
| Net Assets | $8,098,187 | |
| Net Assets consist of: | ||
| Paid in capital | $6,892,588 | |
| Undistributed net investment income | 29,621 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 341,173 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 834,805 | |
| Net Assets | $8,098,187 | |
| Value: | ||
| Net Asset Value, offering price and redemption price per share ($6,929,094 ÷ 59,016 shares) | $117.41 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,169,093 ÷ 9,947 shares) | $117.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $70,456 | |
| Interest | 153 | |
| Income from Fidelity Central Funds | 1,873 | |
| Total income | 72,482 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $22,896 | |
| Performance adjustment | (4,310) | |
| Transfer agent fees | 5,378 | |
| Accounting and security lending fees | 626 | |
| Custodian fees and expenses | 98 | |
| Independent trustees' fees and expenses | 17 | |
| Registration fees | 84 | |
| Audit | 41 | |
| Legal | 21 | |
| Miscellaneous | 27 | |
| Total expenses before reductions | 24,878 | |
| Expense reductions | (595) | 24,283 |
| Net investment income (loss) | 48,199 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 386,160 | |
| Fidelity Central Funds | 18 | |
| Other affiliated issuers | (133) | |
| Foreign currency transactions | (114) | |
| Futures contracts | 3,329 | |
| Total net realized gain (loss) | 389,260 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (340,899) | |
| Fidelity Central Funds | (18) | |
| Other affiliated issuers | (4,468) | |
| Futures contracts | (960) | |
| Total change in net unrealized appreciation (depreciation) | (346,345) | |
| Net gain (loss) | 42,915 | |
| Net increase (decrease) in net assets resulting from operations | $91,114 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $48,199 | $126,851 |
| Net realized gain (loss) | 389,260 | 556,415 |
| Change in net unrealized appreciation (depreciation) | (346,345) | 795,816 |
| Net increase (decrease) in net assets resulting from operations | 91,114 | 1,479,082 |
| Distributions to shareholders from net investment income | (116,319) | (100,620) |
| Distributions to shareholders from net realized gain | (284,874) | (1,989) |
| Total distributions | (401,193) | (102,609) |
| Share transactions - net increase (decrease) | (8,845) | (621,951) |
| Total increase (decrease) in net assets | (318,924) | 754,522 |
| Net Assets | ||
| Beginning of period | 8,417,111 | 7,662,589 |
| End of period | $8,098,187 | $8,417,111 |
| Other Information | ||
| Undistributed net investment income end of period | $29,621 | $97,741 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Value Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $121.93 | $102.99 | $110.73 | $113.00 | $99.54 | $74.14 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .68 | 1.75B | 1.70 | 1.17 | 1.02 | 1.13 |
| Net realized and unrealized gain (loss) | .54 | 18.57 | 1.07 | (.99)C | 13.47 | 25.28 |
| Total from investment operations | 1.22 | 20.32 | 2.77 | .18 | 14.49 | 26.41 |
| Distributions from net investment income | (1.65) | (1.35) | (1.15) | (.91) | (.86) | (1.01) |
| Distributions from net realized gain | (4.09) | (.03) | (9.36) | (1.54) | (.16) | – |
| Total distributions | (5.74) | (1.38) | (10.51) | (2.45) | (1.03)D | (1.01) |
| Net asset value, end of period | $117.41 | $121.93 | $102.99 | $110.73 | $113.00 | $99.54 |
| Total ReturnE,F | .94% | 19.86% | 2.85% | .12%C | 14.68% | 36.07% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .60%I | .58% | .62% | .79% | .73% | .67% |
| Expenses net of fee waivers, if any | .60%I | .58% | .62% | .79% | .73% | .67% |
| Expenses net of all reductions | .59%I | .57% | .61% | .78% | .73% | .65% |
| Net investment income (loss) | 1.12%I | 1.51%B | 1.71% | 1.02% | .95% | 1.30% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $6,929 | $7,344 | $6,741 | $7,437 | $8,024 | $7,153 |
| Portfolio turnover rateJ | 79%I | 73% | 72% | 80% | 81% | 99% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.23%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been .01%
D Total distributions of $1.03 per share is comprised of distributions from net investment income of $.864 and distributions from net realized gain of $.164 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Value Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $122.12 | $103.15 | $110.91 | $113.17 | $99.70 | $74.27 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .73 | 1.86B | 1.82 | 1.30 | 1.15 | 1.25 |
| Net realized and unrealized gain (loss) | .55 | 18.60 | 1.06 | (.99)C | 13.47 | 25.30 |
| Total from investment operations | 1.28 | 20.46 | 2.88 | .31 | 14.62 | 26.55 |
| Distributions from net investment income | (1.78) | (1.47) | (1.28) | (1.03) | (.98) | (1.12) |
| Distributions from net realized gain | (4.09) | (.03) | (9.36) | (1.54) | (.16) | – |
| Total distributions | (5.87) | (1.49)D | (10.64) | (2.57) | (1.15)E | (1.12) |
| Net asset value, end of period | $117.53 | $122.12 | $103.15 | $110.91 | $113.17 | $99.70 |
| Total ReturnF,G | .99% | 19.98% | 2.96% | .24%C | 14.81% | 36.26% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | .51%J | .48% | .50% | .68% | .62% | .54% |
| Expenses net of fee waivers, if any | .50%J | .48% | .50% | .68% | .62% | .54% |
| Expenses net of all reductions | .49%J | .48% | .49% | .67% | .61% | .52% |
| Net investment income (loss) | 1.22%J | 1.61%B | 1.82% | 1.13% | 1.07% | 1.42% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,169 | $1,073 | $922 | $1,404 | $1,499 | $1,261 |
| Portfolio turnover rateK | 79%J | 73% | 72% | 80% | 81% | 99% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.33%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been .13%
D Total distributions of $1.49 per share is comprised of distributions from net investment income of $1.467 and distributions from net realized gain of $.027 per share.
E Total distributions of $1.15 per share is comprised of distributions from net investment income of $.983 and distributions from net realized gain of $.164 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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), certain independent Trustees have elected 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,291,715 |
| Gross unrealized depreciation | (498,775) |
| Net unrealized appreciation (depreciation) | $792,940 |
| Tax cost | $7,466,203 |
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,299,712 and $3,617,163, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .44% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class K. 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 Class-Level Average Net Assets(a) | |
| Value | $5,104 | .14 |
| Class K | 274 | .05 |
| $5,378 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $91 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $1,131, including $4 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $552 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $43.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Value | $98,291 | $87,700 |
| Class K | 18,028 | 12,920 |
| Total | $116,319 | $100,620 |
| From net realized gain | ||
| Value | $243,497 | $1,751 |
| Class K | 41,377 | 238 |
| Total | $284,874 | $1,989 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Value | ||||
| Shares sold | 1,011 | 3,128 | $121,644 | $356,778 |
| Reinvestment of distributions | 2,685 | 755 | 319,599 | 84,080 |
| Shares redeemed | (4,913) | (9,105) | (591,299) | (1,047,226) |
| Net increase (decrease) | (1,217) | (5,222) | $(150,056) | $(606,368) |
| Class K | ||||
| Shares sold | 2,250 | 2,081 | $272,876 | $241,638 |
| Reinvestment of distributions | 499 | 118 | 59,405 | 13,157 |
| Shares redeemed | (1,587) | (2,349) | (191,070) | (270,378) |
| Net increase (decrease) | 1,162 | (150) | $141,211 | $(15,583) |
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Value | .60% | |||
| Actual | $1,000.00 | $1,009.40 | $2.99 | |
| Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 | |
| Class K | .50% | |||
| Actual | $1,000.00 | $1,009.90 | $2.49 | |
| Hypothetical-C | $1,000.00 | $1,022.32 | $2.51 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity® Value Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Discover Financial Services | 1.5 |
| Sempra Energy | 1.4 |
| Synchrony Financial | 1.3 |
| Wells Fargo & Co. | 1.2 |
| Xcel Energy, Inc. | 1.2 |
| U.S. Bancorp | 1.1 |
| PPL Corp. | 1.0 |
| American Tower Corp. | 1.0 |
| Berkshire Hathaway, Inc. Class B | 1.0 |
| NRG Energy, Inc. | 1.0 |
| 11.7 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Financials | 17.8 |
| Consumer Discretionary | 13.1 |
| Real Estate | 11.4 |
| Industrials | 10.6 |
| Energy | 9.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks and Equity Futures | 98.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.4% | |
* Foreign investments - 15.9%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.1% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 13.1% | |||
| Auto Components - 0.8% | |||
| Adient PLC | 263,800 | $16,168 | |
| American Axle & Manufacturing Holdings, Inc. (a) | 3,142,700 | 48,209 | |
| 64,377 | |||
| Diversified Consumer Services - 0.7% | |||
| Houghton Mifflin Harcourt Co. (a) | 4,916,506 | 33,432 | |
| ServiceMaster Global Holdings, Inc. (a) | 436,913 | 22,108 | |
| 55,540 | |||
| Hotels, Restaurants & Leisure - 2.2% | |||
| DineEquity, Inc. | 397,147 | 31,510 | |
| Eldorado Resorts, Inc. (a) | 1,593,665 | 64,543 | |
| U.S. Foods Holding Corp. (a) | 1,922,100 | 65,697 | |
| Wyndham Worldwide Corp. | 139,000 | 15,875 | |
| 177,625 | |||
| Household Durables - 1.1% | |||
| D.R. Horton, Inc. | 1,466,000 | 64,709 | |
| Tempur Sealy International, Inc. (a)(b) | 595,800 | 26,662 | |
| 91,371 | |||
| Internet & Direct Marketing Retail - 0.6% | |||
| Liberty Interactive Corp. QVC Group Series A (a) | 1,925,800 | 45,083 | |
| Leisure Products - 0.8% | |||
| Mattel, Inc. (b) | 3,587,900 | 53,101 | |
| Vista Outdoor, Inc. (a) | 660,700 | 11,067 | |
| 64,168 | |||
| Media - 4.3% | |||
| Discovery Communications, Inc. Class A (a)(b) | 977,700 | 23,123 | |
| DISH Network Corp. Class A (a) | 756,600 | 25,384 | |
| Entercom Communications Corp. Class A (b) | 4,251,300 | 43,151 | |
| GCI Liberty, Inc. (a) | 631,600 | 28,169 | |
| Grupo Televisa SA de CV (CPO) sponsored ADR | 1,206,300 | 21,617 | |
| Liberty Broadband Corp. Class C (a) | 335,771 | 23,803 | |
| Liberty Global PLC Class C (a) | 1,066,600 | 31,038 | |
| Nexstar Broadcasting Group, Inc. Class A | 297,800 | 18,538 | |
| Omnicom Group, Inc. | 801,000 | 59,002 | |
| Sinclair Broadcast Group, Inc. Class A (b) | 1,801,956 | 51,085 | |
| Twenty-First Century Fox, Inc. Class A | 718,600 | 26,272 | |
| 351,182 | |||
| Specialty Retail - 2.6% | |||
| Lowe's Companies, Inc. | 657,500 | 54,198 | |
| Michaels Companies, Inc. (a) | 1,009,800 | 18,802 | |
| O'Reilly Automotive, Inc. (a) | 265,300 | 67,935 | |
| Sally Beauty Holdings, Inc. (a) | 1,752,100 | 30,294 | |
| Signet Jewelers Ltd. | 1,067,400 | 41,501 | |
| 212,730 | |||
| TOTAL CONSUMER DISCRETIONARY | 1,062,076 | ||
| CONSUMER STAPLES - 5.3% | |||
| Beverages - 0.3% | |||
| Cott Corp. | 1,634,311 | 23,370 | |
| Food & Staples Retailing - 0.6% | |||
| CVS Health Corp. | 650,100 | 45,396 | |
| Food Products - 3.1% | |||
| Darling International, Inc. (a) | 2,650,000 | 45,421 | |
| Greencore Group PLC | 9,903,600 | 21,644 | |
| Kellogg Co. | 275,503 | 16,227 | |
| Nomad Foods Ltd. (a) | 1,983,417 | 32,707 | |
| The Hershey Co. | 59,700 | 5,489 | |
| The J.M. Smucker Co. | 462,931 | 52,811 | |
| TreeHouse Foods, Inc. (a) | 728,400 | 28,043 | |
| Tyson Foods, Inc. Class A | 698,100 | 48,937 | |
| 251,279 | |||
| Household Products - 0.4% | |||
| Spectrum Brands Holdings, Inc. | 412,823 | 29,765 | |
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 2,137,409 | 37,084 | |
| Tobacco - 0.5% | |||
| British American Tobacco PLC (United Kingdom) | 714,700 | 39,200 | |
| TOTAL CONSUMER STAPLES | 426,094 | ||
| ENERGY - 9.1% | |||
| Energy Equipment & Services - 1.6% | |||
| Baker Hughes, a GE Co. Class A | 1,938,471 | 69,998 | |
| C&J Energy Services, Inc. (a) | 267,600 | 7,991 | |
| Dril-Quip, Inc. (a) | 103,883 | 4,306 | |
| Halliburton Co. | 189,455 | 10,039 | |
| Nabors Industries Ltd. | 3,935,600 | 29,950 | |
| TechnipFMC PLC (b) | 188,827 | 6,224 | |
| 128,508 | |||
| Oil, Gas & Consumable Fuels - 7.5% | |||
| Andeavor | 306,500 | 42,395 | |
| Boardwalk Pipeline Partners, LP | 2,929,300 | 33,306 | |
| Cenovus Energy, Inc. | 3,275,400 | 32,806 | |
| Cheniere Energy, Inc. (a) | 648,800 | 37,734 | |
| Concho Resources, Inc. (a) | 144,300 | 22,685 | |
| Diamondback Energy, Inc. (a) | 189,517 | 24,343 | |
| Encana Corp. | 2,288,300 | 28,498 | |
| Energen Corp. (a) | 201,479 | 13,185 | |
| Enterprise Products Partners LP | 651,000 | 17,473 | |
| EQT Corp. | 907,164 | 45,531 | |
| GasLog Ltd. | 1,568,100 | 26,422 | |
| Golar LNG Ltd. | 713,748 | 22,947 | |
| Lundin Petroleum AB | 1,094,900 | 30,284 | |
| Marathon Petroleum Corp. | 579,099 | 43,380 | |
| Newfield Exploration Co. (a) | 338,310 | 10,082 | |
| Phillips 66 Co. | 281,300 | 31,312 | |
| Plains GP Holdings LP Class A | 867,900 | 21,021 | |
| Teekay Corp. (b) | 3,026,564 | 26,694 | |
| Teekay LNG Partners LP | 2,328,777 | 42,500 | |
| Teekay Offshore Partners LP | 9,417,100 | 26,274 | |
| WPX Energy, Inc. (a) | 1,754,000 | 29,976 | |
| 608,848 | |||
| TOTAL ENERGY | 737,356 | ||
| FINANCIALS - 17.8% | |||
| Banks - 4.4% | |||
| Bank Ireland Group PLC | 728,557 | 6,515 | |
| CIT Group, Inc. | 1,331,274 | 70,491 | |
| EFG Eurobank Ergasias SA (a) | 6,140,560 | 7,779 | |
| First Citizen Bancshares, Inc. Class A | 73,592 | 31,813 | |
| PNC Financial Services Group, Inc. | 344,900 | 50,221 | |
| U.S. Bancorp | 1,826,115 | 92,128 | |
| Wells Fargo & Co. | 1,920,928 | 99,811 | |
| 358,758 | |||
| Capital Markets - 4.2% | |||
| Ameriprise Financial, Inc. | 145,600 | 20,415 | |
| Apollo Global Management LLC Class A | 1,767,632 | 50,979 | |
| Ares Capital Corp. (b) | 907,879 | 14,562 | |
| Ares Management LP | 1,632,200 | 35,908 | |
| Brighthouse Financial, Inc. | 125,000 | 6,348 | |
| Brookfield Asset Management, Inc. Class A | 252,550 | 10,010 | |
| Franklin Resources, Inc. | 764,800 | 25,728 | |
| KKR & Co. LP | 1,133,736 | 23,740 | |
| Legg Mason, Inc. | 1,384,000 | 54,945 | |
| Oaktree Capital Group LLC Class A | 300,000 | 11,850 | |
| State Street Corp. | 266,700 | 26,611 | |
| The Blackstone Group LP | 1,402,804 | 43,417 | |
| Tullett Prebon PLC | 2,479,900 | 16,087 | |
| 340,600 | |||
| Consumer Finance - 5.0% | |||
| Ally Financial, Inc. | 511,200 | 13,342 | |
| Capital One Financial Corp. | 579,291 | 52,495 | |
| Discover Financial Services | 1,696,200 | 120,849 | |
| Navient Corp. | 1,400,000 | 18,564 | |
| OneMain Holdings, Inc. (a) | 1,349,338 | 41,627 | |
| Santander Consumer U.S.A. Holdings, Inc. | 700,000 | 12,915 | |
| SLM Corp. (a) | 3,301,600 | 37,902 | |
| Synchrony Financial | 3,170,500 | 105,165 | |
| 402,859 | |||
| Diversified Financial Services - 1.5% | |||
| Berkshire Hathaway, Inc. Class B (a) | 429,291 | 83,167 | |
| Donnelley Financial Solutions, Inc. (a)(c) | 2,022,366 | 37,212 | |
| 120,379 | |||
| Insurance - 2.7% | |||
| AFLAC, Inc. | 234,692 | 10,695 | |
| AMBAC Financial Group, Inc. (a) | 2,040,459 | 34,749 | |
| American International Group, Inc. | 807,900 | 45,242 | |
| Axis Capital Holdings Ltd. | 50,000 | 2,935 | |
| Chubb Ltd. | 361,348 | 49,024 | |
| FNF Group | 865,700 | 31,884 | |
| Greenlight Capital Re, Ltd. (a) | 312,343 | 4,841 | |
| Hartford Financial Services Group, Inc. | 275,000 | 14,806 | |
| Reinsurance Group of America, Inc. | 99,093 | 14,804 | |
| The Travelers Companies, Inc. | 80,000 | 10,528 | |
| 219,508 | |||
| TOTAL FINANCIALS | 1,442,104 | ||
| HEALTH CARE - 6.1% | |||
| Biotechnology - 1.0% | |||
| Alexion Pharmaceuticals, Inc. (a) | 106,200 | 12,492 | |
| Amgen, Inc. | 231,600 | 40,410 | |
| United Therapeutics Corp. (a) | 269,800 | 29,708 | |
| 82,610 | |||
| Health Care Equipment & Supplies - 0.9% | |||
| Dentsply Sirona, Inc. | 145,900 | 7,345 | |
| Teleflex, Inc. | 40,300 | 10,796 | |
| The Cooper Companies, Inc. | 18,000 | 4,117 | |
| Zimmer Biomet Holdings, Inc. | 424,246 | 48,860 | |
| 71,118 | |||
| Health Care Providers & Services - 1.9% | |||
| Centene Corp. (a) | 85,100 | 9,240 | |
| Cigna Corp. | 84,600 | 14,536 | |
| DaVita HealthCare Partners, Inc. (a) | 82,700 | 5,193 | |
| McKesson Corp. | 278,100 | 43,442 | |
| Patterson Companies, Inc. | 397,300 | 9,249 | |
| Premier, Inc. (a) | 749,800 | 24,736 | |
| Quest Diagnostics, Inc. | 143,100 | 14,482 | |
| Universal Health Services, Inc. Class B | 290,574 | 33,184 | |
| 154,062 | |||
| Life Sciences Tools & Services - 0.2% | |||
| Agilent Technologies, Inc. | 169,800 | 11,163 | |
| PerkinElmer, Inc. | 76,000 | 5,575 | |
| 16,738 | |||
| Pharmaceuticals - 2.1% | |||
| Allergan PLC | 181,000 | 27,811 | |
| Indivior PLC (a) | 3,792,300 | 23,656 | |
| Jazz Pharmaceuticals PLC (a) | 458,709 | 69,742 | |
| Mallinckrodt PLC (a)(b) | 1,250,200 | 16,253 | |
| Mylan NV (a) | 358,800 | 13,907 | |
| Perrigo Co. PLC | 71,900 | 5,618 | |
| The Medicines Company (a) | 378,412 | 11,386 | |
| 168,373 | |||
| TOTAL HEALTH CARE | 492,901 | ||
| INDUSTRIALS - 10.6% | |||
| Aerospace & Defense - 0.9% | |||
| Aerojet Rocketdyne Holdings, Inc. (a) | 866,481 | 24,209 | |
| Huntington Ingalls Industries, Inc. | 146,600 | 35,655 | |
| Ultra Electronics Holdings PLC | 635,900 | 12,326 | |
| 72,190 | |||
| Air Freight & Logistics - 0.4% | |||
| United Parcel Service, Inc. Class B | 275,900 | 31,315 | |
| Airlines - 1.4% | |||
| American Airlines Group, Inc. | 1,749,117 | 75,090 | |
| JetBlue Airways Corp. (a) | 2,049,099 | 39,322 | |
| 114,412 | |||
| Commercial Services & Supplies - 0.5% | |||
| The Brink's Co. | 563,400 | 41,579 | |
| Construction & Engineering - 1.4% | |||
| AECOM (a) | 2,120,953 | 73,046 | |
| Arcadis NV | 1,370,339 | 27,040 | |
| Arcadis NV rights (a) | 1,244,941 | 707 | |
| Astaldi SpA (b) | 3,366,341 | 9,578 | |
| 110,371 | |||
| Electrical Equipment - 1.3% | |||
| Acuity Brands, Inc. | 200,100 | 23,966 | |
| Hubbell, Inc. Class B | 217,900 | 22,631 | |
| Regal Beloit Corp. | 472,600 | 33,649 | |
| Sensata Technologies, Inc. PLC (a) | 504,106 | 25,568 | |
| 105,814 | |||
| Machinery - 0.9% | |||
| Allison Transmission Holdings, Inc. | 1,482,665 | 57,809 | |
| SPX Corp. (a) | 554,911 | 17,557 | |
| SPX Flow, Inc. (a) | 34,902 | 1,571 | |
| 76,937 | |||
| Marine - 0.1% | |||
| A.P. Moller - Maersk A/S Series B | 2,997 | 4,836 | |
| Seaspan Corp. (b) | 340,702 | 2,620 | |
| 7,456 | |||
| Professional Services - 0.4% | |||
| Dun & Bradstreet Corp. | 142,900 | 16,478 | |
| Nielsen Holdings PLC | 513,100 | 16,137 | |
| 32,615 | |||
| Road & Rail - 0.6% | |||
| Avis Budget Group, Inc. (a) | 282,300 | 13,948 | |
| CSX Corp. | 382,432 | 22,713 | |
| Norfolk Southern Corp. | 69,087 | 9,912 | |
| 46,573 | |||
| Trading Companies & Distributors - 2.4% | |||
| AerCap Holdings NV (a) | 639,696 | 33,347 | |
| Ashtead Group PLC | 1,049,800 | 29,382 | |
| Fortress Transportation & Infrastructure Investors LLC | 1,483,100 | 24,679 | |
| HD Supply Holdings, Inc. (a) | 1,788,498 | 69,233 | |
| MRC Global, Inc. (a) | 735,299 | 13,772 | |
| Nexeo Solutions, Inc. (a) | 1,195,400 | 12,181 | |
| Nexeo Solutions, Inc. (a)(d) | 1,170,000 | 11,922 | |
| 194,516 | |||
| Transportation Infrastructure - 0.3% | |||
| Macquarie Infrastructure Co. LLC | 718,400 | 27,227 | |
| TOTAL INDUSTRIALS | 861,005 | ||
| INFORMATION TECHNOLOGY - 8.9% | |||
| Communications Equipment - 1.0% | |||
| CommScope Holding Co., Inc. (a) | 1,180,200 | 45,107 | |
| F5 Networks, Inc. (a) | 241,900 | 39,451 | |
| 84,558 | |||
| Electronic Equipment & Components - 1.0% | |||
| Dell Technologies, Inc. (a) | 319,400 | 22,923 | |
| Jabil, Inc. | 1,288,203 | 34,266 | |
| TE Connectivity Ltd. | 277,766 | 25,485 | |
| 82,674 | |||
| IT Services - 5.0% | |||
| Alliance Data Systems Corp. | 92,400 | 18,762 | |
| Amdocs Ltd. | 857,900 | 57,694 | |
| Booz Allen Hamilton Holding Corp. Class A | 982,000 | 38,917 | |
| Cognizant Technology Solutions Corp. Class A | 585,700 | 47,922 | |
| Conduent, Inc. (a) | 3,009,500 | 58,565 | |
| DXC Technology Co. | 490,500 | 50,551 | |
| First Data Corp. Class A (a) | 2,862,900 | 51,818 | |
| Leidos Holdings, Inc. | 847,949 | 54,464 | |
| Unisys Corp. (a)(b) | 2,005,601 | 22,463 | |
| 401,156 | |||
| Semiconductors & Semiconductor Equipment - 1.1% | |||
| Analog Devices, Inc. | 472,600 | 41,282 | |
| Qualcomm, Inc. | 912,354 | 46,539 | |
| 87,821 | |||
| Software - 0.8% | |||
| Micro Focus International PLC | 2,484,800 | 42,846 | |
| Totvs SA | 2,129,500 | 19,452 | |
| 62,298 | |||
| TOTAL INFORMATION TECHNOLOGY | 718,507 | ||
| MATERIALS - 7.8% | |||
| Chemicals - 4.7% | |||
| Axalta Coating Systems Ltd. (a) | 1,357,146 | 41,936 | |
| Celanese Corp. Class A | 165,400 | 17,974 | |
| CF Industries Holdings, Inc. | 907,900 | 35,227 | |
| DowDuPont, Inc. | 562,706 | 35,586 | |
| Eastman Chemical Co. | 351,603 | 35,892 | |
| FMC Corp. | 141,200 | 11,258 | |
| LyondellBasell Industries NV Class A | 477,880 | 50,526 | |
| Nutrien Ltd. | 595,580 | 27,113 | |
| Olin Corp. | 329,900 | 9,960 | |
| Orion Engineered Carbons SA | 866,000 | 23,209 | |
| The Chemours Co. LLC | 777,900 | 37,658 | |
| Tronox Ltd. Class A | 1,102,377 | 18,939 | |
| Westlake Chemical Corp. | 331,500 | 35,461 | |
| 380,739 | |||
| Construction Materials - 0.6% | |||
| Eagle Materials, Inc. | 487,200 | 48,213 | |
| Containers & Packaging - 1.8% | |||
| Avery Dennison Corp. | 130,056 | 13,631 | |
| Ball Corp. | 397,200 | 15,924 | |
| Berry Global Group, Inc. (a) | 462,600 | 25,443 | |
| Crown Holdings, Inc. (a) | 466,800 | 23,265 | |
| Graphic Packaging Holding Co. | 2,496,073 | 35,694 | |
| Silgan Holdings, Inc. | 1,158,100 | 32,508 | |
| 146,465 | |||
| Metals & Mining - 0.7% | |||
| Antofagasta PLC | 448,800 | 6,008 | |
| Constellium NV (a) | 1,311,700 | 14,888 | |
| Randgold Resources Ltd. sponsored ADR | 135,200 | 10,965 | |
| Steel Dynamics, Inc. | 478,465 | 21,440 | |
| 53,301 | |||
| TOTAL MATERIALS | 628,718 | ||
| REAL ESTATE - 11.4% | |||
| Equity Real Estate Investment Trusts (REITs) - 10.5% | |||
| American Tower Corp. | 623,704 | 85,048 | |
| AvalonBay Communities, Inc. | 142,200 | 23,179 | |
| Boston Properties, Inc. | 176,600 | 21,441 | |
| Colony NorthStar, Inc. | 7,003,208 | 42,790 | |
| Corporate Office Properties Trust (SBI) | 716,600 | 19,714 | |
| Douglas Emmett, Inc. | 996,200 | 37,128 | |
| Equinix, Inc. | 105,600 | 44,435 | |
| Equity Commonwealth (a) | 62,800 | 1,946 | |
| Equity Lifestyle Properties, Inc. | 773,261 | 68,944 | |
| Equity Residential (SBI) | 404,100 | 24,937 | |
| Essex Property Trust, Inc. | 223,500 | 53,571 | |
| Extra Space Storage, Inc. | 467,900 | 41,919 | |
| Forest City Realty Trust, Inc. Class A | 977,195 | 19,603 | |
| General Growth Properties, Inc. | 863,100 | 17,253 | |
| Grivalia Properties REIC | 4,054,559 | 44,654 | |
| iStar Financial, Inc. (a) | 2,236,865 | 22,682 | |
| National Retail Properties, Inc. | 1,078,788 | 41,037 | |
| Outfront Media, Inc. | 1,670,900 | 31,329 | |
| Public Storage | 186,200 | 37,571 | |
| Safety Income and Growth, Inc. | 177,000 | 3,177 | |
| SBA Communications Corp. Class A (a) | 12,500 | 2,003 | |
| Simon Property Group, Inc. | 34,500 | 5,394 | |
| SL Green Realty Corp. | 413,500 | 40,415 | |
| Spirit Realty Capital, Inc. | 3,627,700 | 29,203 | |
| Taubman Centers, Inc. | 596,600 | 33,398 | |
| VEREIT, Inc. | 5,292,200 | 35,987 | |
| Washington Prime Group, Inc. (b) | 2,198,100 | 14,222 | |
| Welltower, Inc. | 222,300 | 11,880 | |
| 854,860 | |||
| Real Estate Management & Development - 0.9% | |||
| CBRE Group, Inc. (a) | 987,000 | 44,721 | |
| Howard Hughes Corp. (a) | 197,200 | 26,681 | |
| 71,402 | |||
| TOTAL REAL ESTATE | 926,262 | ||
| TELECOMMUNICATION SERVICES - 0.1% | |||
| Diversified Telecommunication Services - 0.1% | |||
| CenturyLink, Inc. | 616,607 | 11,457 | |
| UTILITIES - 7.9% | |||
| Electric Utilities - 4.5% | |||
| Eversource Energy | 371,500 | 22,383 | |
| Exelon Corp. | 1,802,800 | 71,535 | |
| NextEra Energy, Inc. | 152,718 | 25,032 | |
| PG&E Corp. | 274,300 | 12,645 | |
| PPL Corp. | 2,933,500 | 85,365 | |
| Vistra Energy Corp. (a) | 1,550,700 | 35,433 | |
| Westar Energy, Inc. | 346,300 | 18,763 | |
| Xcel Energy, Inc. | 2,029,400 | 95,057 | |
| 366,213 | |||
| Independent Power and Renewable Electricity Producers - 1.8% | |||
| NRG Energy, Inc. | 2,522,300 | 78,191 | |
| The AES Corp. | 5,452,200 | 66,735 | |
| 144,926 | |||
| Multi-Utilities - 1.6% | |||
| CMS Energy Corp. | 293,700 | 13,860 | |
| Sempra Energy | 1,008,097 | 112,705 | |
| 126,565 | |||
| TOTAL UTILITIES | 637,704 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,108,468) | 7,944,184 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 1.56% to 1.79% 5/10/18 to 7/19/18 (e) | |||
| (Cost $2,917) | 2,920 | 2,917 | |
| Shares | Value (000s) | ||
| Money Market Funds - 3.9% | |||
| Fidelity Cash Central Fund, 1.74% (f) | 152,396,292 | $152,427 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (f)(g) | 160,487,783 | 160,504 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $312,930) | 312,931 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.0% | |||
| (Cost $7,424,315) | 8,260,032 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (161,845) | ||
| NET ASSETS - 100% | $8,098,187 |
| Futures Contracts | |||||
| Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||||
| Equity Index Contracts | |||||
| CME E-mini S&P MidCap 400 Index Contracts (United States) | 212 | June 2018 | $39,689 | $(889) | $(889) |
The notional amount of futures purchased as a percentage of Net Assets is 0.5%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) 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 $11,922,000 or 0.1% of net assets.
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,220,000.
(f) Affiliated fund that is generally 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.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| Nexeo Solutions, Inc. | 6/9/16 | $11,700 |
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 | $742 |
| Fidelity Securities Lending Cash Central Fund | 1,131 |
| Total | $1,873 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Donnelley Financial Solutions, Inc. | $26,445 | $16,476 | $1,108 | $-- | $(133) | $(4,468) | $37,212 |
| Total | $26,445 | $16,476 | $1,108 | $-- | $(133) | $(4,468) | $37,212 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,062,076 | $1,062,076 | $-- | $-- |
| Consumer Staples | 426,094 | 386,894 | 39,200 | -- |
| Energy | 737,356 | 737,356 | -- | -- |
| Financials | 1,442,104 | 1,442,104 | -- | -- |
| Health Care | 492,901 | 492,901 | -- | -- |
| Industrials | 861,005 | 861,005 | -- | -- |
| Information Technology | 718,507 | 675,661 | 42,846 | -- |
| Materials | 628,718 | 628,718 | -- | -- |
| Real Estate | 926,262 | 926,262 | -- | -- |
| Telecommunication Services | 11,457 | 11,457 | -- | -- |
| Utilities | 637,704 | 637,704 | -- | -- |
| U.S. Government and Government Agency Obligations | 2,917 | -- | 2,917 | -- |
| Money Market Funds | 312,931 | 312,931 | -- | -- |
| Total Investments in Securities: | $8,260,032 | $8,175,069 | $84,963 | $-- |
| Derivative Instruments: | ||||
| Liabilities | ||||
| Futures Contracts | $(889) | $(889) | $-- | $-- |
| Total Liabilities | $(889) | $(889) | $-- | $-- |
| Total Derivative Instruments: | $(889) | $(889) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| (Amounts in thousands) | ||
| Equity Risk | ||
| Futures Contracts(a) | $0 | $(889) |
| Total Equity Risk | 0 | (889) |
| Total Value of Derivatives | $0 | $(889) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 84.1% |
| United Kingdom | 2.9% |
| Ireland | 2.1% |
| Bermuda | 2.0% |
| Netherlands | 1.8% |
| Canada | 1.4% |
| Marshall Islands | 1.1% |
| Others (Individually Less Than 1%) | 4.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $156,355) — See accompanying schedule: Unaffiliated issuers (cost $7,068,921) | $7,909,889 | |
| Fidelity Central Funds (cost $312,930) | 312,931 | |
| Other affiliated issuers (cost $42,464) | 37,212 | |
| Total Investment in Securities (cost $7,424,315) | $8,260,032 | |
| Cash | 131 | |
| Foreign currency held at value (cost $569) | 569 | |
| Receivable for investments sold | 78,855 | |
| Receivable for fund shares sold | 1,375 | |
| Dividends receivable | 5,782 | |
| Distributions receivable from Fidelity Central Funds | 383 | |
| Prepaid expenses | 4 | |
| Other receivables | 967 | |
| Total assets | 8,348,098 | |
| Liabilities | ||
| Payable for investments purchased | $73,508 | |
| Payable for fund shares redeemed | 11,205 | |
| Accrued management fee | 2,511 | |
| Payable for daily variation margin on futures contracts | 475 | |
| Other affiliated payables | 984 | |
| Other payables and accrued expenses | 727 | |
| Collateral on securities loaned | 160,501 | |
| Total liabilities | 249,911 | |
| Net Assets | $8,098,187 | |
| Net Assets consist of: | ||
| Paid in capital | $6,892,588 | |
| Undistributed net investment income | 29,621 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 341,173 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 834,805 | |
| Net Assets | $8,098,187 | |
| Value: | ||
| Net Asset Value, offering price and redemption price per share ($6,929,094 ÷ 59,016 shares) | $117.41 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,169,093 ÷ 9,947 shares) | $117.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $70,456 | |
| Interest | 153 | |
| Income from Fidelity Central Funds | 1,873 | |
| Total income | 72,482 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $22,896 | |
| Performance adjustment | (4,310) | |
| Transfer agent fees | 5,378 | |
| Accounting and security lending fees | 626 | |
| Custodian fees and expenses | 98 | |
| Independent trustees' fees and expenses | 17 | |
| Registration fees | 84 | |
| Audit | 41 | |
| Legal | 21 | |
| Miscellaneous | 27 | |
| Total expenses before reductions | 24,878 | |
| Expense reductions | (595) | 24,283 |
| Net investment income (loss) | 48,199 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 386,160 | |
| Fidelity Central Funds | 18 | |
| Other affiliated issuers | (133) | |
| Foreign currency transactions | (114) | |
| Futures contracts | 3,329 | |
| Total net realized gain (loss) | 389,260 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (340,899) | |
| Fidelity Central Funds | (18) | |
| Other affiliated issuers | (4,468) | |
| Futures contracts | (960) | |
| Total change in net unrealized appreciation (depreciation) | (346,345) | |
| Net gain (loss) | 42,915 | |
| Net increase (decrease) in net assets resulting from operations | $91,114 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $48,199 | $126,851 |
| Net realized gain (loss) | 389,260 | 556,415 |
| Change in net unrealized appreciation (depreciation) | (346,345) | 795,816 |
| Net increase (decrease) in net assets resulting from operations | 91,114 | 1,479,082 |
| Distributions to shareholders from net investment income | (116,319) | (100,620) |
| Distributions to shareholders from net realized gain | (284,874) | (1,989) |
| Total distributions | (401,193) | (102,609) |
| Share transactions - net increase (decrease) | (8,845) | (621,951) |
| Total increase (decrease) in net assets | (318,924) | 754,522 |
| Net Assets | ||
| Beginning of period | 8,417,111 | 7,662,589 |
| End of period | $8,098,187 | $8,417,111 |
| Other Information | ||
| Undistributed net investment income end of period | $29,621 | $97,741 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Value Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $121.93 | $102.99 | $110.73 | $113.00 | $99.54 | $74.14 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .68 | 1.75B | 1.70 | 1.17 | 1.02 | 1.13 |
| Net realized and unrealized gain (loss) | .54 | 18.57 | 1.07 | (.99)C | 13.47 | 25.28 |
| Total from investment operations | 1.22 | 20.32 | 2.77 | .18 | 14.49 | 26.41 |
| Distributions from net investment income�� | (1.65) | (1.35) | (1.15) | (.91) | (.86) | (1.01) |
| Distributions from net realized gain | (4.09) | (.03) | (9.36) | (1.54) | (.16) | – |
| Total distributions | (5.74) | (1.38) | (10.51) | (2.45) | (1.03)D | (1.01) |
| Net asset value, end of period | $117.41 | $121.93 | $102.99 | $110.73 | $113.00 | $99.54 |
| Total ReturnE,F | .94% | 19.86% | 2.85% | .12%C | 14.68% | 36.07% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .60%I | .58% | .62% | .79% | .73% | .67% |
| Expenses net of fee waivers, if any | .60%I | .58% | .62% | .79% | .73% | .67% |
| Expenses net of all reductions | .59%I | .57% | .61% | .78% | .73% | .65% |
| Net investment income (loss) | 1.12%I | 1.51%B | 1.71% | 1.02% | .95% | 1.30% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $6,929 | $7,344 | $6,741 | $7,437 | $8,024 | $7,153 |
| Portfolio turnover rateJ | 79%I | 73% | 72% | 80% | 81% | 99% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.23%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been .01%
D Total distributions of $1.03 per share is comprised of distributions from net investment income of $.864 and distributions from net realized gain of $.164 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Value Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $122.12 | $103.15 | $110.91 | $113.17 | $99.70 | $74.27 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .73 | 1.86B | 1.82 | 1.30 | 1.15 | 1.25 |
| Net realized and unrealized gain (loss) | .55 | 18.60 | 1.06 | (.99)C | 13.47 | 25.30 |
| Total from investment operations | 1.28 | 20.46 | 2.88 | .31 | 14.62 | 26.55 |
| Distributions from net investment income | (1.78) | (1.47) | (1.28) | (1.03) | (.98) | (1.12) |
| Distributions from net realized gain | (4.09) | (.03) | (9.36) | (1.54) | (.16) | – |
| Total distributions | (5.87) | (1.49)D | (10.64) | (2.57) | (1.15)E | (1.12) |
| Net asset value, end of period | $117.53 | $122.12 | $103.15 | $110.91 | $113.17 | $99.70 |
| Total ReturnF,G | .99% | 19.98% | 2.96% | .24%C | 14.81% | 36.26% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | .51%J | .48% | .50% | .68% | .62% | .54% |
| Expenses net of fee waivers, if any | .50%J | .48% | .50% | .68% | .62% | .54% |
| Expenses net of all reductions | .49%J | .48% | .49% | .67% | .61% | .52% |
| Net investment income (loss) | 1.22%J | 1.61%B | 1.82% | 1.13% | 1.07% | 1.42% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,169 | $1,073 | $922 | $1,404 | $1,499 | $1,261 |
| Portfolio turnover rateK | 79%J | 73% | 72% | 80% | 81% | 99% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.32 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.33%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.13 per share. Excluding these litigation proceeds, the total return would have been .13%
D Total distributions of $1.49 per share is comprised of distributions from net investment income of $1.467 and distributions from net realized gain of $.027 per share.
E Total distributions of $1.15 per share is comprised of distributions from net investment income of $.983 and distributions from net realized gain of $.164 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 (NAV) each business day and are categorized as Level 1 in the hierarchy.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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), certain independent Trustees have elected 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,291,715 |
| Gross unrealized depreciation | (498,775) |
| Net unrealized appreciation (depreciation) | $792,940 |
| Tax cost | $7,466,203 |
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,299,712 and $3,617,163, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .44% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class K. 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 Class-Level Average Net Assets(a) | |
| Value | $5,104 | .14 |
| Class K | 274 | .05 |
| $5,378 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $91 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $12 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $1,131, including $4 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $552 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $43.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Value | $98,291 | $87,700 |
| Class K | 18,028 | 12,920 |
| Total | $116,319 | $100,620 |
| From net realized gain | ||
| Value | $243,497 | $1,751 |
| Class K | 41,377 | 238 |
| Total | $284,874 | $1,989 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Value | ||||
| Shares sold | 1,011 | 3,128 | $121,644 | $356,778 |
| Reinvestment of distributions | 2,685 | 755 | 319,599 | 84,080 |
| Shares redeemed | (4,913) | (9,105) | (591,299) | (1,047,226) |
| Net increase (decrease) | (1,217) | (5,222) | $(150,056) | $(606,368) |
| Class K | ||||
| Shares sold | 2,250 | 2,081 | $272,876 | $241,638 |
| Reinvestment of distributions | 499 | 118 | 59,405 | 13,157 |
| Shares redeemed | (1,587) | (2,349) | (191,070) | (270,378) |
| Net increase (decrease) | 1,162 | (150) | $141,211 | $(15,583) |
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Value | .60% | |||
| Actual | $1,000.00 | $1,009.40 | $2.99 | |
| Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 | |
| Class K | .50% | |||
| Actual | $1,000.00 | $1,009.90 | $2.49 | |
| Hypothetical-C | $1,000.00 | $1,022.32 | $2.51 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity® Capital Appreciation Fund Semi-Annual Report April 30, 2018 |
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Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Apple, Inc. | 4.1 |
| Adobe Systems, Inc. | 3.6 |
| Las Vegas Sands Corp. | 3.2 |
| Microsoft Corp. | 3.1 |
| Morgan Stanley | 3.0 |
| CME Group, Inc. | 2.4 |
| Goldman Sachs Group, Inc. | 2.2 |
| PayPal Holdings, Inc. | 2.2 |
| Visa, Inc. Class A | 2.1 |
| Marriott International, Inc. Class A | 2.1 |
| 28.0 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Information Technology | 29.9 |
| Financials | 19.8 |
| Consumer Discretionary | 15.9 |
| Industrials | 10.4 |
| Health Care | 8.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 97.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.1% | |
* Foreign investments – 9.4%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 15.9% | |||
| Distributors - 0.4% | |||
| LKQ Corp. (a) | 950,310 | $29,479 | |
| Hotels, Restaurants & Leisure - 9.0% | |||
| Accor SA | 252,100 | 14,269 | |
| Chipotle Mexican Grill, Inc. (a) | 9,800 | 4,149 | |
| Dalata Hotel Group PLC (a)(b) | 10,210,929 | 81,383 | |
| Domino's Pizza, Inc. | 29,300 | 7,083 | |
| Dunkin' Brands Group, Inc. (c) | 680,774 | 41,500 | |
| Las Vegas Sands Corp. | 3,093,666 | 226,859 | |
| Marriott International, Inc. Class A | 1,076,763 | 147,172 | |
| Royal Caribbean Cruises Ltd. | 456,248 | 49,361 | |
| Texas Roadhouse, Inc. Class A | 86,315 | 5,531 | |
| Wendy's Co. | 342,200 | 5,728 | |
| Wyndham Worldwide Corp. | 454,277 | 51,883 | |
| Wynn Resorts Ltd. | 19,600 | 3,649 | |
| 638,567 | |||
| Internet & Direct Marketing Retail - 1.8% | |||
| Amazon.com, Inc. (a) | 78,200 | 122,471 | |
| Netflix, Inc. (a) | 9,800 | 3,062 | |
| 125,533 | |||
| Media - 1.7% | |||
| Charter Communications, Inc. Class A (a) | 111,367 | 30,213 | |
| Interpublic Group of Companies, Inc. | 3,432,294 | 80,968 | |
| Omnicom Group, Inc. | 106,922 | 7,876 | |
| 119,057 | |||
| Multiline Retail - 1.3% | |||
| B&M European Value Retail S.A. | 4,404,452 | 24,576 | |
| JC Penney Corp., Inc. (a)(c) | 13,321,985 | 38,767 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 467,732 | 29,093 | |
| 92,436 | |||
| Specialty Retail - 1.6% | |||
| Five Below, Inc. (a) | 828,100 | 58,472 | |
| Home Depot, Inc. | 267,860 | 49,501 | |
| Lowe's Companies, Inc. | 121,249 | 9,995 | |
| 117,968 | |||
| Textiles, Apparel & Luxury Goods - 0.1% | |||
| Michael Kors Holdings Ltd. (a) | 146,700 | 10,037 | |
| TOTAL CONSUMER DISCRETIONARY | 1,133,077 | ||
| CONSUMER STAPLES - 0.8% | |||
| Beverages - 0.1% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 34,100 | 7,950 | |
| Food & Staples Retailing - 0.7% | |||
| Costco Wholesale Corp. | 239,189 | 47,159 | |
| TOTAL CONSUMER STAPLES | 55,109 | ||
| ENERGY - 7.6% | |||
| Energy Equipment & Services - 1.6% | |||
| Halliburton Co. | 1,906,700 | 101,036 | |
| Shelf Drilling Ltd. (d) | 1,468,200 | 12,262 | |
| 113,298 | |||
| Oil, Gas & Consumable Fuels - 6.0% | |||
| Anadarko Petroleum Corp. | 1,262,900 | 85,018 | |
| BP PLC sponsored ADR | 586,700 | 26,161 | |
| Canadian Natural Resources Ltd. | 1,075,700 | 38,811 | |
| Cheniere Energy, Inc. (a) | 489,560 | 28,473 | |
| ConocoPhillips Co. | 1,107,120 | 72,516 | |
| Continental Resources, Inc. (a) | 244,773 | 16,170 | |
| Encana Corp. | 3,940,700 | 49,180 | |
| EOG Resources, Inc. | 151,060 | 17,851 | |
| Marathon Oil Corp. | 2,986,230 | 54,499 | |
| Pioneer Natural Resources Co. | 90,287 | 18,197 | |
| Whiting Petroleum Corp. (a) | 446,657 | 18,233 | |
| 425,109 | |||
| TOTAL ENERGY | 538,407 | ||
| FINANCIALS - 19.8% | |||
| Banks - 1.0% | |||
| Bank of America Corp. | 1,711,750 | 51,216 | |
| Popular, Inc. | 424,515 | 19,651 | |
| 70,867 | |||
| Capital Markets - 18.5% | |||
| BlackRock, Inc. Class A | 243,694 | 127,086 | |
| Cboe Global Markets, Inc. | 1,279,245 | 136,598 | |
| Charles Schwab Corp. | 2,623,911 | 146,099 | |
| CME Group, Inc. | 1,095,006 | 172,661 | |
| E*TRADE Financial Corp. (a) | 1,428,054 | 86,654 | |
| Goldman Sachs Group, Inc. | 667,777 | 159,151 | |
| MarketAxess Holdings, Inc. | 111,198 | 22,087 | |
| Morgan Stanley | 4,113,421 | 212,335 | |
| MSCI, Inc. | 555,547 | 83,238 | |
| S&P Global, Inc. | 475,566 | 89,692 | |
| T. Rowe Price Group, Inc. | 704,200 | 80,152 | |
| 1,315,753 | |||
| Consumer Finance - 0.1% | |||
| American Express Co. | 127,100 | 12,551 | |
| Insurance - 0.2% | |||
| Arthur J. Gallagher & Co. | 78,200 | 5,473 | |
| Progressive Corp. | 97,164 | 5,858 | |
| W.R. Berkley Corp. | 17,691 | 1,319 | |
| 12,650 | |||
| TOTAL FINANCIALS | 1,411,821 | ||
| HEALTH CARE - 8.1% | |||
| Biotechnology - 3.2% | |||
| Alexion Pharmaceuticals, Inc. (a) | 459,520 | 54,053 | |
| Amgen, Inc. | 783,809 | 136,759 | |
| Epizyme, Inc. (a) | 905,498 | 11,636 | |
| Vertex Pharmaceuticals, Inc. (a) | 158,316 | 24,248 | |
| 226,696 | |||
| Health Care Equipment & Supplies - 2.9% | |||
| Abiomed, Inc. (a) | 245,900 | 74,004 | |
| Boston Scientific Corp. (a) | 977,800 | 28,082 | |
| Danaher Corp. | 223,500 | 22,422 | |
| Intuitive Surgical, Inc. (a) | 166,300 | 73,302 | |
| ResMed, Inc. | 78,863 | 7,464 | |
| 205,274 | |||
| Health Care Providers & Services - 1.1% | |||
| Humana, Inc. | 19,600 | 5,766 | |
| UnitedHealth Group, Inc. | 310,497 | 73,401 | |
| 79,167 | |||
| Life Sciences Tools & Services - 0.7% | |||
| Agilent Technologies, Inc. | 805,614 | 52,961 | |
| Pharmaceuticals - 0.2% | |||
| The Medicines Company (a) | 301,320 | 9,067 | |
| Zoetis, Inc. Class A | 39,100 | 3,264 | |
| 12,331 | |||
| TOTAL HEALTH CARE | 576,429 | ||
| INDUSTRIALS - 10.4% | |||
| Aerospace & Defense - 3.1% | |||
| Bombardier, Inc. Class B (sub. vtg.) (a) | 8,155,748 | 25,218 | |
| Curtiss-Wright Corp. | 9,800 | 1,255 | |
| General Dynamics Corp. | 235,744 | 47,458 | |
| Harris Corp. | 44,000 | 6,882 | |
| Huntington Ingalls Industries, Inc. | 112,710 | 27,412 | |
| Lockheed Martin Corp. | 133,706 | 42,898 | |
| Northrop Grumman Corp. | 134,173 | 43,209 | |
| Raytheon Co. | 58,700 | 12,030 | |
| Textron, Inc. | 117,300 | 7,289 | |
| TransDigm Group, Inc. | 24,400 | 7,822 | |
| 221,473 | |||
| Airlines - 0.5% | |||
| Ryanair Holdings PLC sponsored ADR (a) | 324,892 | 35,728 | |
| Building Products - 1.5% | |||
| A.O. Smith Corp. | 736,900 | 45,209 | |
| Kingspan Group PLC (Ireland) | 1,347,315 | 61,013 | |
| 106,222 | |||
| Commercial Services & Supplies - 2.0% | |||
| Cintas Corp. | 214,449 | 36,521 | |
| Copart, Inc. (a) | 2,087,835 | 106,647 | |
| 143,168 | |||
| Electrical Equipment - 0.2% | |||
| Rockwell Automation, Inc. | 71,735 | 11,803 | |
| Machinery - 1.5% | |||
| Deere & Co. | 531,628 | 71,945 | |
| Flowserve Corp. | 97,800 | 4,343 | |
| Graco, Inc. | 459,104 | 20,196 | |
| Xylem, Inc. | 136,900 | 9,980 | |
| 106,464 | |||
| Marine - 0.6% | |||
| Irish Continental Group PLC unit | 5,928,035 | 40,089 | |
| Professional Services - 0.1% | |||
| Robert Half International, Inc. | 107,600 | 6,537 | |
| Verisk Analytics, Inc. (a) | 29,300 | 3,119 | |
| 9,656 | |||
| Road & Rail - 0.8% | |||
| Union Pacific Corp. | 440,000 | 58,797 | |
| Trading Companies & Distributors - 0.1% | |||
| W.W. Grainger, Inc. | 9,800 | 2,757 | |
| TOTAL INDUSTRIALS | 736,157 | ||
| INFORMATION TECHNOLOGY - 29.9% | |||
| Communications Equipment - 0.0% | |||
| Motorola Solutions, Inc. | 19,600 | 2,153 | |
| Electronic Equipment & Components - 0.5% | |||
| Cognex Corp. | 326,700 | 15,110 | |
| FLIR Systems, Inc. | 70,855 | 3,794 | |
| IPG Photonics Corp. (a) | 72,941 | 15,539 | |
| 34,443 | |||
| Internet Software & Services - 5.0% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 97,800 | 17,461 | |
| Alphabet, Inc. Class C (a) | 43,529 | 44,283 | |
| CarGurus, Inc. Class A (c) | 1,470,452 | 45,466 | |
| Coupa Software, Inc. (a) | 473,261 | 21,945 | |
| GoDaddy, Inc. (a) | 1,765,393 | 113,974 | |
| LogMeIn, Inc. | 260,080 | 28,661 | |
| New Relic, Inc. (a) | 258,680 | 18,079 | |
| Nutanix, Inc. Class A (a) | 361,550 | 18,291 | |
| Okta, Inc. | 984,665 | 42,154 | |
| VeriSign, Inc. (a) | 48,900 | 5,742 | |
| 356,056 | |||
| IT Services - 5.7% | |||
| Broadridge Financial Solutions, Inc. | 358,300 | 38,413 | |
| EPAM Systems, Inc. (a) | 540,812 | 61,842 | |
| PayPal Holdings, Inc. (a) | 2,067,057 | 154,223 | |
| Visa, Inc. Class A | 1,182,802 | 150,074 | |
| 404,552 | |||
| Semiconductors & Semiconductor Equipment - 2.2% | |||
| First Solar, Inc. (a) | 97,800 | 6,935 | |
| Micron Technology, Inc. (a) | 440,000 | 20,231 | |
| NVIDIA Corp. | 361,300 | 81,256 | |
| Texas Instruments, Inc. | 459,296 | 46,586 | |
| 155,008 | |||
| Software - 12.4% | |||
| Activision Blizzard, Inc. | 547,333 | 36,316 | |
| Adobe Systems, Inc. (a) | 1,137,902 | 252,159 | |
| ANSYS, Inc. (a) | 231,126 | 37,364 | |
| Atlassian Corp. PLC (a) | 366,933 | 20,541 | |
| Electronic Arts, Inc. (a) | 666,438 | 78,626 | |
| Intuit, Inc. | 399,071 | 73,744 | |
| Microsoft Corp. | 2,370,540 | 221,693 | |
| Parametric Technology Corp. (a) | 48,900 | 4,027 | |
| Paycom Software, Inc. (a)(c) | 357,249 | 40,801 | |
| Red Hat, Inc. (a) | 29,300 | 4,778 | |
| Salesforce.com, Inc. (a) | 430,200 | 52,050 | |
| Take-Two Interactive Software, Inc. (a) | 378,799 | 37,770 | |
| Zendesk, Inc. (a) | 294,100 | 14,337 | |
| Zuora, Inc. | 361,128 | 6,955 | |
| 881,161 | |||
| Technology Hardware, Storage & Peripherals - 4.1% | |||
| Apple, Inc. | 1,774,100 | 293,184 | |
| NetApp, Inc. | 48,900 | 3,256 | |
| 296,440 | |||
| TOTAL INFORMATION TECHNOLOGY | 2,129,813 | ||
| MATERIALS - 4.7% | |||
| Chemicals - 2.7% | |||
| DowDuPont, Inc. | 739,012 | 46,735 | |
| Eastman Chemical Co. | 62,030 | 6,332 | |
| Ecolab, Inc. | 48,900 | 7,079 | |
| FMC Corp. | 1,689,822 | 134,730 | |
| 194,876 | |||
| Metals & Mining - 2.0% | |||
| Glencore Xstrata PLC | 15,515,313 | 74,909 | |
| New Gold, Inc. (a) | 1,668,229 | 3,911 | |
| Rio Tinto PLC | 1,107,752 | 60,379 | |
| 139,199 | |||
| TOTAL MATERIALS | 334,075 | ||
| TELECOMMUNICATION SERVICES - 0.7% | |||
| Wireless Telecommunication Services - 0.7% | |||
| T-Mobile U.S., Inc. (a) | 851,421 | 51,519 | |
| TOTAL COMMON STOCKS | |||
| (Cost $5,501,730) | 6,966,407 | ||
| Money Market Funds - 3.9% | |||
| Fidelity Cash Central Fund, 1.74% (e) | 202,652,099 | 202,693 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (e)(f) | 72,773,428 | 72,781 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $275,474) | 275,474 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
| (Cost $5,777,204) | 7,241,881 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.8)% | (126,967) | ||
| NET ASSETS - 100% | $7,114,914 |
Legend
(a) Non-income producing
(b) Affiliated company
(c) Security or a portion of the security is on loan at period end.
(d) 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 $12,262,000 or 0.2% of net assets.
(e) Affiliated fund that is generally 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.
(f) Includes investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $1,007 |
| Fidelity Securities Lending Cash Central Fund | 1,724 |
| Total | $2,731 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Dalata Hotel Group PLC | $60,550 | $3,608 | $-- | $-- | $-- | $17,225 | $81,383 |
| Total | $60,550 | $3,608 | $-- | $-- | $-- | $17,225 | $81,383 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,133,077 | $1,133,077 | $-- | $-- |
| Consumer Staples | 55,109 | 55,109 | -- | -- |
| Energy | 538,407 | 538,407 | -- | -- |
| Financials | 1,411,821 | 1,411,821 | -- | -- |
| Health Care | 576,429 | 576,429 | -- | -- |
| Industrials | 736,157 | 736,157 | -- | -- |
| Information Technology | 2,129,813 | 2,129,813 | -- | -- |
| Materials | 334,075 | 273,696 | 60,379 | -- |
| Telecommunication Services | 51,519 | 51,519 | -- | -- |
| Money Market Funds | 275,474 | 275,474 | -- | -- |
| Total Investments in Securities: | $7,241,881 | $7,181,502 | $60,379 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $68,238) — See accompanying schedule: Unaffiliated issuers (cost $5,457,282) | $6,885,024 | |
| Fidelity Central Funds (cost $275,474) | 275,474 | |
| Other affiliated issuers (cost $44,448) | 81,383 | |
| Total Investment in Securities (cost $5,777,204) | $7,241,881 | |
| Receivable for investments sold | 90,127 | |
| Receivable for fund shares sold | 2,237 | |
| Dividends receivable | 3,738 | |
| Distributions receivable from Fidelity Central Funds | 512 | |
| Prepaid expenses | 4 | |
| Other receivables | 420 | |
| Total assets | 7,338,919 | |
| Liabilities | ||
| Payable for investments purchased | $142,055 | |
| Payable for fund shares redeemed | 5,693 | |
| Accrued management fee | 2,521 | |
| Other affiliated payables | 799 | |
| Other payables and accrued expenses | 173 | |
| Collateral on securities loaned | 72,764 | |
| Total liabilities | 224,005 | |
| Net Assets | $7,114,914 | |
| Net Assets consist of: | ||
| Paid in capital | $5,116,644 | |
| Undistributed net investment income | 14,799 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 518,791 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,464,680 | |
| Net Assets | $7,114,914 | |
| Capital Appreciation: | ||
| Net Asset Value, offering price and redemption price per share ($5,108,684 ÷ 140,860 shares) | $36.27 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($2,006,230 ÷ 55,206 shares) | $36.34 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $46,201 | |
| Income from Fidelity Central Funds | 2,731 | |
| Total income | 48,932 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $20,009 | |
| Performance adjustment | (6,346) | |
| Transfer agent fees | 4,187 | |
| Accounting and security lending fees | 602 | |
| Custodian fees and expenses | 70 | |
| Independent trustees' fees and expenses | 15 | |
| Registration fees | 44 | |
| Audit | 34 | |
| Legal | 15 | |
| Miscellaneous | 23 | |
| Total expenses before reductions | 18,653 | |
| Expense reductions | (628) | 18,025 |
| Net investment income (loss) | 30,907 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 522,376 | |
| Fidelity Central Funds | 12 | |
| Foreign currency transactions | 22 | |
| Total net realized gain (loss) | 522,410 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (84,418) | |
| Fidelity Central Funds | (4) | |
| Other affiliated issuers | 17,225 | |
| Assets and liabilities in foreign currencies | 10 | |
| Total change in net unrealized appreciation (depreciation) | (67,187) | |
| Net gain (loss) | 455,223 | |
| Net increase (decrease) in net assets resulting from operations | $486,130 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $30,907 | $80,195 |
| Net realized gain (loss) | 522,410 | 765,605 |
| Change in net unrealized appreciation (depreciation) | (67,187) | 796,502 |
| Net increase (decrease) in net assets resulting from operations | 486,130 | 1,642,302 |
| Distributions to shareholders from net investment income | (65,666) | (85,881) |
| Distributions to shareholders from net realized gain | (695,859) | (295,130) |
| Total distributions | (761,525) | (381,011) |
| Share transactions - net increase (decrease) | 59,654 | (842,529) |
| Total increase (decrease) in net assets | (215,741) | 418,762 |
| Net Assets | ||
| Beginning of period | 7,330,655 | 6,911,893 |
| End of period | $7,114,914 | $7,330,655 |
| Other Information | ||
| Undistributed net investment income end of period | $14,799 | $49,558 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Capital Appreciation Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $37.90 | $31.75 | $37.03 | $39.82 | $37.30 | $29.21 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .15 | .38 | .34 | .24 | .11 | .19 |
| Net realized and unrealized gain (loss) | 2.23 | 7.55 | (1.34) | 1.13 | 6.05 | 8.66 |
| Total from investment operations | 2.38 | 7.93 | (1.00) | 1.37 | 6.16 | 8.85 |
| Distributions from net investment income | (.34) | (.39) | (.27) | (.10) | (.14) | (.17) |
| Distributions from net realized gain | (3.67) | (1.39) | (4.01) | (4.06) | (3.50) | (.59) |
| Total distributions | (4.01) | (1.78) | (4.28) | (4.16) | (3.64) | (.76) |
| Net asset value, end of period | $36.27 | $37.90 | $31.75 | $37.03 | $39.82 | $37.30 |
| Total ReturnB,C | 6.75% | 25.93% | (3.06)% | 3.50% | 17.86% | 31.03% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .53%F | .51% | .61% | .83% | .82% | .79% |
| Expenses net of fee waivers, if any | .53%F | .51% | .61% | .83% | .82% | .79% |
| Expenses net of all reductions | .52%F | .50% | .60% | .82% | .81% | .77% |
| Net investment income (loss) | .81%F | 1.09% | 1.05% | .63% | .28% | .57% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $5,109 | $5,157 | $4,809 | $5,906 | $6,132 | $5,920 |
| Portfolio turnover rateG | 115%F | 129% | 120% | 126% | 112% | 156% |
A Calculated based on average shares outstanding during the period.
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 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Capital Appreciation Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $37.99 | $31.83 | $37.11 | $39.90 | $37.38 | $29.28 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .17 | .41 | .37 | .28 | .15 | .23 |
| Net realized and unrealized gain (loss) | 2.23 | 7.57 | (1.33) | 1.14 | 6.06 | 8.67 |
| Total from investment operations | 2.40 | 7.98 | (.96) | 1.42 | 6.21 | 8.90 |
| Distributions from net investment income | (.37) | (.43) | (.31) | (.15) | (.19) | (.21) |
| Distributions from net realized gain | (3.67) | (1.39) | (4.01) | (4.06) | (3.50) | (.59) |
| Total distributions | (4.05)B | (1.82) | (4.32) | (4.21) | (3.69) | (.80) |
| Net asset value, end of period | $36.34 | $37.99 | $31.83 | $37.11 | $39.90 | $37.38 |
| Total ReturnC,D | 6.79% | 26.04% | (2.93)% | 3.62% | 17.97% | 31.19% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .44%G | .41% | .50% | .72% | .70% | .66% |
| Expenses net of fee waivers, if any | .44%G | .41% | .50% | .72% | .70% | .66% |
| Expenses net of all reductions | .42%G | .40% | .48% | .72% | .70% | .63% |
| Net investment income (loss) | .90%G | 1.20% | 1.17% | .74% | .40% | .70% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $2,006 | $2,174 | $2,103 | $2,524 | $2,460 | $2,125 |
| Portfolio turnover rateH | 115%G | 129% | 120% | 126% | 112% | 156% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $4.05 per share is comprised of distributions from net investment income of $0.374 and distributions from net realized gain of $3.671 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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), certain independent Trustees have elected 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,627,127 |
| Gross unrealized depreciation | (164,987) |
| Net unrealized appreciation (depreciation) | $1,462,140 |
| Tax cost | $5,779,741 |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,133,228 and $4,893,539, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .37% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class K. 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 Class-Level Average Net Assets(a) | |
| Capital Appreciation | $3,698 | .14 |
| Class K | 489 | .05 |
| $4,187 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $82 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $15.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. The value of securities loaned to FCM at period end was $9,526. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $1,724, including $182 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $591 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $37.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Capital Appreciation | $44,905 | $57,933 |
| Class K | 20,761 | 27,948 |
| Total | $65,666 | $85,881 |
| From net realized gain | ||
| Capital Appreciation | $492,076 | $204,981 |
| Class K | 203,783 | 90,149 |
| Total | $695,859 | $295,130 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Capital Appreciation | ||||
| Shares sold | 3,371 | 6,471 | $123,740 | $219,571 |
| Reinvestment of distributions | 14,676 | 7,688 | 509,097 | 248,876 |
| Shares redeemed | (13,250) | (29,530) | (486,573) | (1,007,227) |
| Net increase (decrease) | 4,797 | (15,371) | $146,264 | $(538,780) |
| Class K | ||||
| Shares sold | 3,801 | 6,448 | $139,846 | $221,397 |
| Reinvestment of distributions | 6,462 | 3,643 | 224,544 | 118,097 |
| Shares redeemed | (12,290) | (18,939) | (451,000) | (643,243) |
| Net increase (decrease) | (2,027) | (8,848) | $(86,610) | $(303,749) |
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.
Shareholder Expense Example
As a shareholder of a 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 Funds 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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Capital Appreciation | .53% | |||
| Actual | $1,000.00 | $1,067.50 | $2.72 | |
| Hypothetical-C | $1,000.00 | $1,022.17 | $2.66 | |
| Class K | .44% | |||
| Actual | $1,000.00 | $1,067.90 | $2.26 | |
| Hypothetical-C | $1,000.00 | $1,022.61 | $2.21 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity® Capital Appreciation Fund Semi-Annual Report April 30, 2018 |
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Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Apple, Inc. | 4.1 |
| Adobe Systems, Inc. | 3.6 |
| Las Vegas Sands Corp. | 3.2 |
| Microsoft Corp. | 3.1 |
| Morgan Stanley | 3.0 |
| CME Group, Inc. | 2.4 |
| Goldman Sachs Group, Inc. | 2.2 |
| PayPal Holdings, Inc. | 2.2 |
| Visa, Inc. Class A | 2.1 |
| Marriott International, Inc. Class A | 2.1 |
| 28.0 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Information Technology | 29.9 |
| Financials | 19.8 |
| Consumer Discretionary | 15.9 |
| Industrials | 10.4 |
| Health Care | 8.1 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 97.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.1% | |
* Foreign investments – 9.4%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 15.9% | |||
| Distributors - 0.4% | |||
| LKQ Corp. (a) | 950,310 | $29,479 | |
| Hotels, Restaurants & Leisure - 9.0% | |||
| Accor SA | 252,100 | 14,269 | |
| Chipotle Mexican Grill, Inc. (a) | 9,800 | 4,149 | |
| Dalata Hotel Group PLC (a)(b) | 10,210,929 | 81,383 | |
| Domino's Pizza, Inc. | 29,300 | 7,083 | |
| Dunkin' Brands Group, Inc. (c) | 680,774 | 41,500 | |
| Las Vegas Sands Corp. | 3,093,666 | 226,859 | |
| Marriott International, Inc. Class A | 1,076,763 | 147,172 | |
| Royal Caribbean Cruises Ltd. | 456,248 | 49,361 | |
| Texas Roadhouse, Inc. Class A | 86,315 | 5,531 | |
| Wendy's Co. | 342,200 | 5,728 | |
| Wyndham Worldwide Corp. | 454,277 | 51,883 | |
| Wynn Resorts Ltd. | 19,600 | 3,649 | |
| 638,567 | |||
| Internet & Direct Marketing Retail - 1.8% | |||
| Amazon.com, Inc. (a) | 78,200 | 122,471 | |
| Netflix, Inc. (a) | 9,800 | 3,062 | |
| 125,533 | |||
| Media - 1.7% | |||
| Charter Communications, Inc. Class A (a) | 111,367 | 30,213 | |
| Interpublic Group of Companies, Inc. | 3,432,294 | 80,968 | |
| Omnicom Group, Inc. | 106,922 | 7,876 | |
| 119,057 | |||
| Multiline Retail - 1.3% | |||
| B&M European Value Retail S.A. | 4,404,452 | 24,576 | |
| JC Penney Corp., Inc. (a)(c) | 13,321,985 | 38,767 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 467,732 | 29,093 | |
| 92,436 | |||
| Specialty Retail - 1.6% | |||
| Five Below, Inc. (a) | 828,100 | 58,472 | |
| Home Depot, Inc. | 267,860 | 49,501 | |
| Lowe's Companies, Inc. | 121,249 | 9,995 | |
| 117,968 | |||
| Textiles, Apparel & Luxury Goods - 0.1% | |||
| Michael Kors Holdings Ltd. (a) | 146,700 | 10,037 | |
| TOTAL CONSUMER DISCRETIONARY | 1,133,077 | ||
| CONSUMER STAPLES - 0.8% | |||
| Beverages - 0.1% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 34,100 | 7,950 | |
| Food & Staples Retailing - 0.7% | |||
| Costco Wholesale Corp. | 239,189 | 47,159 | |
| TOTAL CONSUMER STAPLES | 55,109 | ||
| ENERGY - 7.6% | |||
| Energy Equipment & Services - 1.6% | |||
| Halliburton Co. | 1,906,700 | 101,036 | |
| Shelf Drilling Ltd. (d) | 1,468,200 | 12,262 | |
| 113,298 | |||
| Oil, Gas & Consumable Fuels - 6.0% | |||
| Anadarko Petroleum Corp. | 1,262,900 | 85,018 | |
| BP PLC sponsored ADR | 586,700 | 26,161 | |
| Canadian Natural Resources Ltd. | 1,075,700 | 38,811 | |
| Cheniere Energy, Inc. (a) | 489,560 | 28,473 | |
| ConocoPhillips Co. | 1,107,120 | 72,516 | |
| Continental Resources, Inc. (a) | 244,773 | 16,170 | |
| Encana Corp. | 3,940,700 | 49,180 | |
| EOG Resources, Inc. | 151,060 | 17,851 | |
| Marathon Oil Corp. | 2,986,230 | 54,499 | |
| Pioneer Natural Resources Co. | 90,287 | 18,197 | |
| Whiting Petroleum Corp. (a) | 446,657 | 18,233 | |
| 425,109 | |||
| TOTAL ENERGY | 538,407 | ||
| FINANCIALS - 19.8% | |||
| Banks - 1.0% | |||
| Bank of America Corp. | 1,711,750 | 51,216 | |
| Popular, Inc. | 424,515 | 19,651 | |
| 70,867 | |||
| Capital Markets - 18.5% | |||
| BlackRock, Inc. Class A | 243,694 | 127,086 | |
| Cboe Global Markets, Inc. | 1,279,245 | 136,598 | |
| Charles Schwab Corp. | 2,623,911 | 146,099 | |
| CME Group, Inc. | 1,095,006 | 172,661 | |
| E*TRADE Financial Corp. (a) | 1,428,054 | 86,654 | |
| Goldman Sachs Group, Inc. | 667,777 | 159,151 | |
| MarketAxess Holdings, Inc. | 111,198 | 22,087 | |
| Morgan Stanley | 4,113,421 | 212,335 | |
| MSCI, Inc. | 555,547 | 83,238 | |
| S&P Global, Inc. | 475,566 | 89,692 | |
| T. Rowe Price Group, Inc. | 704,200 | 80,152 | |
| 1,315,753 | |||
| Consumer Finance - 0.1% | |||
| American Express Co. | 127,100 | 12,551 | |
| Insurance - 0.2% | |||
| Arthur J. Gallagher & Co. | 78,200 | 5,473 | |
| Progressive Corp. | 97,164 | 5,858 | |
| W.R. Berkley Corp. | 17,691 | 1,319 | |
| 12,650 | |||
| TOTAL FINANCIALS | 1,411,821 | ||
| HEALTH CARE - 8.1% | |||
| Biotechnology - 3.2% | |||
| Alexion Pharmaceuticals, Inc. (a) | 459,520 | 54,053 | |
| Amgen, Inc. | 783,809 | 136,759 | |
| Epizyme, Inc. (a) | 905,498 | 11,636 | |
| Vertex Pharmaceuticals, Inc. (a) | 158,316 | 24,248 | |
| 226,696 | |||
| Health Care Equipment & Supplies - 2.9% | |||
| Abiomed, Inc. (a) | 245,900 | 74,004 | |
| Boston Scientific Corp. (a) | 977,800 | 28,082 | |
| Danaher Corp. | 223,500 | 22,422 | |
| Intuitive Surgical, Inc. (a) | 166,300 | 73,302 | |
| ResMed, Inc. | 78,863 | 7,464 | |
| 205,274 | |||
| Health Care Providers & Services - 1.1% | |||
| Humana, Inc. | 19,600 | 5,766 | |
| UnitedHealth Group, Inc. | 310,497 | 73,401 | |
| 79,167 | |||
| Life Sciences Tools & Services - 0.7% | |||
| Agilent Technologies, Inc. | 805,614 | 52,961 | |
| Pharmaceuticals - 0.2% | |||
| The Medicines Company (a) | 301,320 | 9,067 | |
| Zoetis, Inc. Class A | 39,100 | 3,264 | |
| 12,331 | |||
| TOTAL HEALTH CARE | 576,429 | ||
| INDUSTRIALS - 10.4% | |||
| Aerospace & Defense - 3.1% | |||
| Bombardier, Inc. Class B (sub. vtg.) (a) | 8,155,748 | 25,218 | |
| Curtiss-Wright Corp. | 9,800 | 1,255 | |
| General Dynamics Corp. | 235,744 | 47,458 | |
| Harris Corp. | 44,000 | 6,882 | |
| Huntington Ingalls Industries, Inc. | 112,710 | 27,412 | |
| Lockheed Martin Corp. | 133,706 | 42,898 | |
| Northrop Grumman Corp. | 134,173 | 43,209 | |
| Raytheon Co. | 58,700 | 12,030 | |
| Textron, Inc. | 117,300 | 7,289 | |
| TransDigm Group, Inc. | 24,400 | 7,822 | |
| 221,473 | |||
| Airlines - 0.5% | |||
| Ryanair Holdings PLC sponsored ADR (a) | 324,892 | 35,728 | |
| Building Products - 1.5% | |||
| A.O. Smith Corp. | 736,900 | 45,209 | |
| Kingspan Group PLC (Ireland) | 1,347,315 | 61,013 | |
| 106,222 | |||
| Commercial Services & Supplies - 2.0% | |||
| Cintas Corp. | 214,449 | 36,521 | |
| Copart, Inc. (a) | 2,087,835 | 106,647 | |
| 143,168 | |||
| Electrical Equipment - 0.2% | |||
| Rockwell Automation, Inc. | 71,735 | 11,803 | |
| Machinery - 1.5% | |||
| Deere & Co. | 531,628 | 71,945 | |
| Flowserve Corp. | 97,800 | 4,343 | |
| Graco, Inc. | 459,104 | 20,196 | |
| Xylem, Inc. | 136,900 | 9,980 | |
| 106,464 | |||
| Marine - 0.6% | |||
| Irish Continental Group PLC unit | 5,928,035 | 40,089 | |
| Professional Services - 0.1% | |||
| Robert Half International, Inc. | 107,600 | 6,537 | |
| Verisk Analytics, Inc. (a) | 29,300 | 3,119 | |
| 9,656 | |||
| Road & Rail - 0.8% | |||
| Union Pacific Corp. | 440,000 | 58,797 | |
| Trading Companies & Distributors - 0.1% | |||
| W.W. Grainger, Inc. | 9,800 | 2,757 | |
| TOTAL INDUSTRIALS | 736,157 | ||
| INFORMATION TECHNOLOGY - 29.9% | |||
| Communications Equipment - 0.0% | |||
| Motorola Solutions, Inc. | 19,600 | 2,153 | |
| Electronic Equipment & Components - 0.5% | |||
| Cognex Corp. | 326,700 | 15,110 | |
| FLIR Systems, Inc. | 70,855 | 3,794 | |
| IPG Photonics Corp. (a) | 72,941 | 15,539 | |
| 34,443 | |||
| Internet Software & Services - 5.0% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 97,800 | 17,461 | |
| Alphabet, Inc. Class C (a) | 43,529 | 44,283 | |
| CarGurus, Inc. Class A (c) | 1,470,452 | 45,466 | |
| Coupa Software, Inc. (a) | 473,261 | 21,945 | |
| GoDaddy, Inc. (a) | 1,765,393 | 113,974 | |
| LogMeIn, Inc. | 260,080 | 28,661 | |
| New Relic, Inc. (a) | 258,680 | 18,079 | |
| Nutanix, Inc. Class A (a) | 361,550 | 18,291 | |
| Okta, Inc. | 984,665 | 42,154 | |
| VeriSign, Inc. (a) | 48,900 | 5,742 | |
| 356,056 | |||
| IT Services - 5.7% | |||
| Broadridge Financial Solutions, Inc. | 358,300 | 38,413 | |
| EPAM Systems, Inc. (a) | 540,812 | 61,842 | |
| PayPal Holdings, Inc. (a) | 2,067,057 | 154,223 | |
| Visa, Inc. Class A | 1,182,802 | 150,074 | |
| 404,552 | |||
| Semiconductors & Semiconductor Equipment - 2.2% | |||
| First Solar, Inc. (a) | 97,800 | 6,935 | |
| Micron Technology, Inc. (a) | 440,000 | 20,231 | |
| NVIDIA Corp. | 361,300 | 81,256 | |
| Texas Instruments, Inc. | 459,296 | 46,586 | |
| 155,008 | |||
| Software - 12.4% | |||
| Activision Blizzard, Inc. | 547,333 | 36,316 | |
| Adobe Systems, Inc. (a) | 1,137,902 | 252,159 | |
| ANSYS, Inc. (a) | 231,126 | 37,364 | |
| Atlassian Corp. PLC (a) | 366,933 | 20,541 | |
| Electronic Arts, Inc. (a) | 666,438 | 78,626 | |
| Intuit, Inc. | 399,071 | 73,744 | |
| Microsoft Corp. | 2,370,540 | 221,693 | |
| Parametric Technology Corp. (a) | 48,900 | 4,027 | |
| Paycom Software, Inc. (a)(c) | 357,249 | 40,801 | |
| Red Hat, Inc. (a) | 29,300 | 4,778 | |
| Salesforce.com, Inc. (a) | 430,200 | 52,050 | |
| Take-Two Interactive Software, Inc. (a) | 378,799 | 37,770 | |
| Zendesk, Inc. (a) | 294,100 | 14,337 | |
| Zuora, Inc. | 361,128 | 6,955 | |
| 881,161 | |||
| Technology Hardware, Storage & Peripherals - 4.1% | |||
| Apple, Inc. | 1,774,100 | 293,184 | |
| NetApp, Inc. | 48,900 | 3,256 | |
| 296,440 | |||
| TOTAL INFORMATION TECHNOLOGY | 2,129,813 | ||
| MATERIALS - 4.7% | |||
| Chemicals - 2.7% | |||
| DowDuPont, Inc. | 739,012 | 46,735 | |
| Eastman Chemical Co. | 62,030 | 6,332 | |
| Ecolab, Inc. | 48,900 | 7,079 | |
| FMC Corp. | 1,689,822 | 134,730 | |
| 194,876 | |||
| Metals & Mining - 2.0% | |||
| Glencore Xstrata PLC | 15,515,313 | 74,909 | |
| New Gold, Inc. (a) | 1,668,229 | 3,911 | |
| Rio Tinto PLC | 1,107,752 | 60,379 | |
| 139,199 | |||
| TOTAL MATERIALS | 334,075 | ||
| TELECOMMUNICATION SERVICES - 0.7% | |||
| Wireless Telecommunication Services - 0.7% | |||
| T-Mobile U.S., Inc. (a) | 851,421 | 51,519 | |
| TOTAL COMMON STOCKS | |||
| (Cost $5,501,730) | 6,966,407 | ||
| Money Market Funds - 3.9% | |||
| Fidelity Cash Central Fund, 1.74% (e) | 202,652,099 | 202,693 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (e)(f) | 72,773,428 | 72,781 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $275,474) | 275,474 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
| (Cost $5,777,204) | 7,241,881 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.8)% | (126,967) | ||
| NET ASSETS - 100% | $7,114,914 |
Legend
(a) Non-income producing
(b) Affiliated company
(c) Security or a portion of the security is on loan at period end.
(d) 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 $12,262,000 or 0.2% of net assets.
(e) Affiliated fund that is generally 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.
(f) Includes investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $1,007 |
| Fidelity Securities Lending Cash Central Fund | 1,724 |
| Total | $2,731 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
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 | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Dalata Hotel Group PLC | $60,550 | $3,608 | $-- | $-- | $-- | $17,225 | $81,383 |
| Total | $60,550 | $3,608 | $-- | $-- | $-- | $17,225 | $81,383 |
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,133,077 | $1,133,077 | $-- | $-- |
| Consumer Staples | 55,109 | 55,109 | -- | -- |
| Energy | 538,407 | 538,407 | -- | -- |
| Financials | 1,411,821 | 1,411,821 | -- | -- |
| Health Care | 576,429 | 576,429 | -- | -- |
| Industrials | 736,157 | 736,157 | -- | -- |
| Information Technology | 2,129,813 | 2,129,813 | -- | -- |
| Materials | 334,075 | 273,696 | 60,379 | -- |
| Telecommunication Services | 51,519 | 51,519 | -- | -- |
| Money Market Funds | 275,474 | 275,474 | -- | -- |
| Total Investments in Securities: | $7,241,881 | $7,181,502 | $60,379 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $68,238) — See accompanying schedule: Unaffiliated issuers (cost $5,457,282) | $6,885,024 | |
| Fidelity Central Funds (cost $275,474) | 275,474 | |
| Other affiliated issuers (cost $44,448) | 81,383 | |
| Total Investment in Securities (cost $5,777,204) | $7,241,881 | |
| Receivable for investments sold | 90,127 | |
| Receivable for fund shares sold | 2,237 | |
| Dividends receivable | 3,738 | |
| Distributions receivable from Fidelity Central Funds | 512 | |
| Prepaid expenses | 4 | |
| Other receivables | 420 | |
| Total assets | 7,338,919 | |
| Liabilities | ||
| Payable for investments purchased | $142,055 | |
| Payable for fund shares redeemed | 5,693 | |
| Accrued management fee | 2,521 | |
| Other affiliated payables | 799 | |
| Other payables and accrued expenses | 173 | |
| Collateral on securities loaned | 72,764 | |
| Total liabilities | 224,005 | |
| Net Assets | $7,114,914 | |
| Net Assets consist of: | ||
| Paid in capital | $5,116,644 | |
| Undistributed net investment income | 14,799 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 518,791 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,464,680 | |
| Net Assets | $7,114,914 | |
| Capital Appreciation: | ||
| Net Asset Value, offering price and redemption price per share ($5,108,684 ÷ 140,860 shares) | $36.27 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($2,006,230 ÷ 55,206 shares) | $36.34 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $46,201 | |
| Income from Fidelity Central Funds | 2,731 | |
| Total income | 48,932 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $20,009 | |
| Performance adjustment | (6,346) | |
| Transfer agent fees | 4,187 | |
| Accounting and security lending fees | 602 | |
| Custodian fees and expenses | 70 | |
| Independent trustees' fees and expenses | 15 | |
| Registration fees | 44 | |
| Audit | 34 | |
| Legal | 15 | |
| Miscellaneous | 23 | |
| Total expenses before reductions | 18,653 | |
| Expense reductions | (628) | 18,025 |
| Net investment income (loss) | 30,907 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 522,376 | |
| Fidelity Central Funds | 12 | |
| Foreign currency transactions | 22 | |
| Total net realized gain (loss) | 522,410 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (84,418) | |
| Fidelity Central Funds | (4) | |
| Other affiliated issuers | 17,225 | |
| Assets and liabilities in foreign currencies | 10 | |
| Total change in net unrealized appreciation (depreciation) | (67,187) | |
| Net gain (loss) | 455,223 | |
| Net increase (decrease) in net assets resulting from operations | $486,130 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $30,907 | $80,195 |
| Net realized gain (loss) | 522,410 | 765,605 |
| Change in net unrealized appreciation (depreciation) | (67,187) | 796,502 |
| Net increase (decrease) in net assets resulting from operations | 486,130 | 1,642,302 |
| Distributions to shareholders from net investment income | (65,666) | (85,881) |
| Distributions to shareholders from net realized gain | (695,859) | (295,130) |
| Total distributions | (761,525) | (381,011) |
| Share transactions - net increase (decrease) | 59,654 | (842,529) |
| Total increase (decrease) in net assets | (215,741) | 418,762 |
| Net Assets | ||
| Beginning of period | 7,330,655 | 6,911,893 |
| End of period | $7,114,914 | $7,330,655 |
| Other Information | ||
| Undistributed net investment income end of period | $14,799 | $49,558 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Capital Appreciation Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $37.90 | $31.75 | $37.03 | $39.82 | $37.30 | $29.21 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .15 | .38 | .34 | .24 | .11 | .19 |
| Net realized and unrealized gain (loss) | 2.23 | 7.55 | (1.34) | 1.13 | 6.05 | 8.66 |
| Total from investment operations | 2.38 | 7.93 | (1.00) | 1.37 | 6.16 | 8.85 |
| Distributions from net investment income | (.34) | (.39) | (.27) | (.10) | (.14) | (.17) |
| Distributions from net realized gain | (3.67) | (1.39) | (4.01) | (4.06) | (3.50) | (.59) |
| Total distributions | (4.01) | (1.78) | (4.28) | (4.16) | (3.64) | (.76) |
| Net asset value, end of period | $36.27 | $37.90 | $31.75 | $37.03 | $39.82 | $37.30 |
| Total ReturnB,C | 6.75% | 25.93% | (3.06)% | 3.50% | 17.86% | 31.03% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .53%F | .51% | .61% | .83% | .82% | .79% |
| Expenses net of fee waivers, if any | .53%F | .51% | .61% | .83% | .82% | .79% |
| Expenses net of all reductions | .52%F | .50% | .60% | .82% | .81% | .77% |
| Net investment income (loss) | .81%F | 1.09% | 1.05% | .63% | .28% | .57% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $5,109 | $5,157 | $4,809 | $5,906 | $6,132 | $5,920 |
| Portfolio turnover rateG | 115%F | 129% | 120% | 126% | 112% | 156% |
A Calculated based on average shares outstanding during the period.
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 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.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Capital Appreciation Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $37.99 | $31.83 | $37.11 | $39.90 | $37.38 | $29.28 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .17 | .41 | .37 | .28 | .15 | .23 |
| Net realized and unrealized gain (loss) | 2.23 | 7.57 | (1.33) | 1.14 | 6.06 | 8.67 |
| Total from investment operations | 2.40 | 7.98 | (.96) | 1.42 | 6.21 | 8.90 |
| Distributions from net investment income | (.37) | (.43) | (.31) | (.15) | (.19) | (.21) |
| Distributions from net realized gain | (3.67) | (1.39) | (4.01) | (4.06) | (3.50) | (.59) |
| Total distributions | (4.05)B | (1.82) | (4.32) | (4.21) | (3.69) | (.80) |
| Net asset value, end of period | $36.34 | $37.99 | $31.83 | $37.11 | $39.90 | $37.38 |
| Total ReturnC,D | 6.79% | 26.04% | (2.93)% | 3.62% | 17.97% | 31.19% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .44%G | .41% | .50% | .72% | .70% | .66% |
| Expenses net of fee waivers, if any | .44%G | .41% | .50% | .72% | .70% | .66% |
| Expenses net of all reductions | .42%G | .40% | .48% | .72% | .70% | .63% |
| Net investment income (loss) | .90%G | 1.20% | 1.17% | .74% | .40% | .70% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $2,006 | $2,174 | $2,103 | $2,524 | $2,460 | $2,125 |
| Portfolio turnover rateH | 115%G | 129% | 120% | 126% | 112% | 156% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $4.05 per share is comprised of distributions from net investment income of $0.374 and distributions from net realized gain of $3.671 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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), certain independent Trustees have elected 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,627,127 |
| Gross unrealized depreciation | (164,987) |
| Net unrealized appreciation (depreciation) | $1,462,140 |
| Tax cost | $5,779,741 |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,133,228 and $4,893,539, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .37% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class K. 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 Class-Level Average Net Assets(a) | |
| Capital Appreciation | $3,698 | .14 |
| Class K | 489 | .05 |
| $4,187 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $82 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $15.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. The value of securities loaned to FCM at period end was $9,526. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $1,724, including $182 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $591 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $37.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Capital Appreciation | $44,905 | $57,933 |
| Class K | 20,761 | 27,948 |
| Total | $65,666 | $85,881 |
| From net realized gain | ||
| Capital Appreciation | $492,076 | $204,981 |
| Class K | 203,783 | 90,149 |
| Total | $695,859 | $295,130 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Capital Appreciation | ||||
| Shares sold | 3,371 | 6,471 | $123,740 | $219,571 |
| Reinvestment of distributions | 14,676 | 7,688 | 509,097 | 248,876 |
| Shares redeemed | (13,250) | (29,530) | (486,573) | (1,007,227) |
| Net increase (decrease) | 4,797 | (15,371) | $146,264 | $(538,780) |
| Class K | ||||
| Shares sold | 3,801 | 6,448 | $139,846 | $221,397 |
| Reinvestment of distributions | 6,462 | 3,643 | 224,544 | 118,097 |
| Shares redeemed | (12,290) | (18,939) | (451,000) | (643,243) |
| Net increase (decrease) | (2,027) | (8,848) | $(86,610) | $(303,749) |
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.
Shareholder Expense Example
As a shareholder of a 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 Funds 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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Capital Appreciation | .53% | |||
| Actual | $1,000.00 | $1,067.50 | $2.72 | |
| Hypothetical-C | $1,000.00 | $1,022.17 | $2.66 | |
| Class K | .44% | |||
| Actual | $1,000.00 | $1,067.90 | $2.26 | |
| Hypothetical-C | $1,000.00 | $1,022.61 | $2.21 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity® Disciplined Equity Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Microsoft Corp. | 4.0 |
| Johnson & Johnson | 2.3 |
| Amazon.com, Inc. | 2.1 |
| Bank of America Corp. | 2.1 |
| Chevron Corp. | 1.9 |
| UnitedHealth Group, Inc. | 1.9 |
| Wells Fargo & Co. | 1.8 |
| Cisco Systems, Inc. | 1.8 |
| Apple, Inc. | 1.7 |
| AT&T, Inc. | 1.6 |
| 21.2 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Information Technology | 24.1 |
| Health Care | 15.2 |
| Financials | 12.4 |
| Consumer Discretionary | 12.1 |
| Industrials | 8.4 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 99.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.8% | |
* Foreign investments - 5.6%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.2% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 12.1% | |||
| Hotels, Restaurants & Leisure - 3.8% | |||
| Carnival Corp. | 111,384 | $7,024 | |
| Darden Restaurants, Inc. | 123,006 | 11,422 | |
| Hilton Grand Vacations, Inc. (a) | 235,518 | 10,127 | |
| Royal Caribbean Cruises Ltd. | 96,099 | 10,397 | |
| Wyndham Worldwide Corp. | 98,534 | 11,254 | |
| 50,224 | |||
| Household Durables - 0.7% | |||
| Toll Brothers, Inc. | 223,930 | 9,441 | |
| Internet & Direct Marketing Retail - 3.5% | |||
| Amazon.com, Inc. (a) | 17,992 | 28,178 | |
| Liberty Interactive Corp. QVC Group Series A (a) | 72,669 | 1,701 | |
| Netflix, Inc. (a) | 13,784 | 4,307 | |
| The Booking Holdings, Inc. (a) | 6,007 | 13,083 | |
| 47,269 | |||
| Media - 1.3% | |||
| Comcast Corp. Class A | 566,322 | 17,777 | |
| Multiline Retail - 1.3% | |||
| Dollar General Corp. | 56,858 | 5,489 | |
| Dollar Tree, Inc. (a) | 123,867 | 11,878 | |
| 17,367 | |||
| Specialty Retail - 0.6% | |||
| Best Buy Co., Inc. | 5,590 | 428 | |
| Lowe's Companies, Inc. | 85,560 | 7,053 | |
| 7,481 | |||
| Textiles, Apparel & Luxury Goods - 0.9% | |||
| PVH Corp. | 73,494 | 11,735 | |
| TOTAL CONSUMER DISCRETIONARY | 161,294 | ||
| CONSUMER STAPLES - 7.3% | |||
| Beverages - 0.9% | |||
| Molson Coors Brewing Co. Class B | 64,162 | 4,571 | |
| The Coca-Cola Co. | 163,495 | 7,065 | |
| 11,636 | |||
| Food & Staples Retailing - 2.7% | |||
| CVS Health Corp. | 100,029 | 6,985 | |
| Walgreens Boots Alliance, Inc. | 172,246 | 11,446 | |
| Walmart, Inc. | 205,850 | 18,209 | |
| 36,640 | |||
| Food Products - 3.6% | |||
| ConAgra Foods, Inc. | 302,980 | 11,231 | |
| Pilgrim's Pride Corp. (a) | 222,499 | 4,806 | |
| The J.M. Smucker Co. | 91,819 | 10,475 | |
| The Kraft Heinz Co. | 199,141 | 11,228 | |
| Tyson Foods, Inc. Class A | 158,048 | 11,079 | |
| 48,819 | |||
| Personal Products - 0.1% | |||
| Herbalife Nutrition Ltd. (a) | 8,751 | 925 | |
| TOTAL CONSUMER STAPLES | 98,020 | ||
| ENERGY - 6.9% | |||
| Oil, Gas & Consumable Fuels - 6.9% | |||
| Cabot Oil & Gas Corp. | 95,139 | 2,275 | |
| Chevron Corp. | 202,949 | 25,391 | |
| ConocoPhillips Co. | 28,577 | 1,872 | |
| EQT Corp. | 39,503 | 1,983 | |
| Exxon Mobil Corp. | 219,298 | 17,050 | |
| Marathon Petroleum Corp. | 166,608 | 12,481 | |
| Phillips 66 Co. | 136,522 | 15,196 | |
| Valero Energy Corp. | 140,468 | 15,582 | |
| 91,830 | |||
| FINANCIALS - 12.4% | |||
| Banks - 6.1% | |||
| Bank of America Corp. | 921,553 | 27,573 | |
| Citigroup, Inc. | 302,552 | 20,655 | |
| JPMorgan Chase & Co. | 92,691 | 10,083 | |
| Wells Fargo & Co. | 454,219 | 23,601 | |
| 81,912 | |||
| Capital Markets - 1.9% | |||
| Goldman Sachs Group, Inc. | 61,082 | 14,558 | |
| State Street Corp. | 106,971 | 10,674 | |
| 25,232 | |||
| Consumer Finance - 1.6% | |||
| Capital One Financial Corp. | 139,947 | 12,682 | |
| Discover Financial Services | 121,920 | 8,687 | |
| 21,369 | |||
| Diversified Financial Services - 0.1% | |||
| Berkshire Hathaway, Inc. Class B (a) | 4,514 | 874 | |
| Insurance - 1.0% | |||
| MetLife, Inc. | 290,187 | 13,833 | |
| Mortgage Real Estate Investment Trusts - 1.7% | |||
| AGNC Investment Corp. | 106,318 | 2,012 | |
| Annaly Capital Management, Inc. | 967,167 | 10,030 | |
| MFA Financial, Inc. | 133,215 | 1,002 | |
| New Residential Investment Corp. | 372,028 | 6,503 | |
| Two Harbors Investment Corp. | 195,221 | 2,979 | |
| 22,526 | |||
| TOTAL FINANCIALS | 165,746 | ||
| HEALTH CARE - 15.2% | |||
| Biotechnology - 2.5% | |||
| AbbVie, Inc. | 172,522 | 16,657 | |
| Amgen, Inc. | 97,605 | 17,030 | |
| 33,687 | |||
| Health Care Equipment & Supplies - 1.0% | |||
| Baxter International, Inc. | 186,227 | 12,943 | |
| Health Care Providers & Services - 6.6% | |||
| AmerisourceBergen Corp. | 123,061 | 11,147 | |
| Anthem, Inc. | 58,947 | 13,911 | |
| Centene Corp. (a) | 46,050 | 5,000 | |
| Cigna Corp. | 68,712 | 11,806 | |
| Express Scripts Holding Co. (a) | 78,129 | 5,914 | |
| Humana, Inc. | 45,499 | 13,385 | |
| McKesson Corp. | 12,002 | 1,875 | |
| UnitedHealth Group, Inc. | 104,303 | 24,657 | |
| 87,695 | |||
| Pharmaceuticals - 5.1% | |||
| Allergan PLC | 8,941 | 1,374 | |
| Johnson & Johnson | 242,007 | 30,611 | |
| Merck & Co., Inc. | 344,388 | 20,274 | |
| Pfizer, Inc. | 455,042 | 16,659 | |
| 68,918 | |||
| TOTAL HEALTH CARE | 203,243 | ||
| INDUSTRIALS - 8.4% | |||
| Aerospace & Defense - 3.1% | |||
| General Dynamics Corp. | 63,571 | 12,797 | |
| Huntington Ingalls Industries, Inc. | 43,556 | 10,593 | |
| Northrop Grumman Corp. | 23,007 | 7,409 | |
| Spirit AeroSystems Holdings, Inc. Class A | 120,981 | 9,723 | |
| 40,522 | |||
| Airlines - 1.0% | |||
| Copa Holdings SA Class A | 6,490 | 760 | |
| Delta Air Lines, Inc. | 234,076 | 12,223 | |
| Southwest Airlines Co. | 12,514 | 661 | |
| 13,644 | |||
| Construction & Engineering - 1.1% | |||
| AECOM (a) | 82,831 | 2,853 | |
| Fluor Corp. | 192,880 | 11,370 | |
| 14,223 | |||
| Electrical Equipment - 0.6% | |||
| Eaton Corp. PLC | 68,329 | 5,127 | |
| Regal Beloit Corp. | 42,168 | 3,002 | |
| 8,129 | |||
| Machinery - 1.2% | |||
| Allison Transmission Holdings, Inc. | 99,238 | 3,869 | |
| Cummins, Inc. | 74,649 | 11,933 | |
| 15,802 | |||
| Professional Services - 0.6% | |||
| Manpower, Inc. | 87,904 | 8,414 | |
| Trading Companies & Distributors - 0.8% | |||
| HD Supply Holdings, Inc. (a) | 261,981 | 10,141 | |
| Univar, Inc. (a) | 25,419 | 701 | |
| 10,842 | |||
| TOTAL INDUSTRIALS | 111,576 | ||
| INFORMATION TECHNOLOGY - 24.1% | |||
| Communications Equipment - 1.8% | |||
| Cisco Systems, Inc. | 530,108 | 23,478 | |
| Internet Software & Services - 1.5% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 16,186 | 16,487 | |
| Class C (a) | 3,230 | 3,286 | |
| Twitter, Inc. (a) | 30,444 | 923 | |
| 20,696 | |||
| IT Services - 7.6% | |||
| Accenture PLC Class A | 103,599 | 15,664 | |
| Alliance Data Systems Corp. | 48,171 | 9,781 | |
| Amdocs Ltd. | 153,838 | 10,346 | |
| Cognizant Technology Solutions Corp. Class A | 168,093 | 13,753 | |
| DXC Technology Co. | 122,511 | 12,626 | |
| Leidos Holdings, Inc. | 162,463 | 10,435 | |
| MasterCard, Inc. Class A | 113,863 | 20,298 | |
| PayPal Holdings, Inc. (a) | 73,234 | 5,464 | |
| Total System Services, Inc. | 36,923 | 3,104 | |
| 101,471 | |||
| Semiconductors & Semiconductor Equipment - 2.9% | |||
| Broadcom, Inc. | 51,094 | 11,722 | |
| First Solar, Inc. (a) | 48,777 | 3,459 | |
| Marvell Technology Group Ltd. | 482,901 | 9,687 | |
| Micron Technology, Inc. (a) | 254,600 | 11,707 | |
| ON Semiconductor Corp. (a) | 100,665 | 2,223 | |
| 38,798 | |||
| Software - 8.0% | |||
| Activision Blizzard, Inc. | 182,132 | 12,084 | |
| Adobe Systems, Inc. (a) | 76,797 | 17,018 | |
| Intuit, Inc. | 34,603 | 6,394 | |
| Microsoft Corp. | 573,479 | 53,630 | |
| Oracle Corp. | 332,822 | 15,200 | |
| Salesforce.com, Inc. (a) | 21,929 | 2,653 | |
| 106,979 | |||
| Technology Hardware, Storage & Peripherals - 2.3% | |||
| Apple, Inc. | 134,639 | 22,250 | |
| HP, Inc. | 119,129 | 2,560 | |
| Western Digital Corp. | 67,167 | 5,292 | |
| 30,102 | |||
| TOTAL INFORMATION TECHNOLOGY | 321,524 | ||
| MATERIALS - 4.0% | |||
| Chemicals - 3.3% | |||
| CF Industries Holdings, Inc. | 200,723 | 7,788 | |
| Huntsman Corp. | 201,642 | 6,003 | |
| LyondellBasell Industries NV Class A | 116,970 | 12,367 | |
| Olin Corp. | 187,067 | 5,648 | |
| The Chemours Co. LLC | 48,904 | 2,367 | |
| Westlake Chemical Corp. | 95,690 | 10,236 | |
| 44,409 | |||
| Metals & Mining - 0.7% | |||
| Freeport-McMoRan, Inc. | 622,414 | 9,467 | |
| TOTAL MATERIALS | 53,876 | ||
| REAL ESTATE - 1.8% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
| Host Hotels & Resorts, Inc. | 32,595 | 638 | |
| Real Estate Management & Development - 1.7% | |||
| CBRE Group, Inc. (a) | 244,648 | 11,085 | |
| Jones Lang LaSalle, Inc. | 46,502 | 7,883 | |
| VICI Properties, Inc. | 221,608 | 4,029 | |
| 22,997 | |||
| TOTAL REAL ESTATE | 23,635 | ||
| TELECOMMUNICATION SERVICES - 2.4% | |||
| Diversified Telecommunication Services - 1.6% | |||
| AT&T, Inc. | 646,159 | 21,129 | |
| Wireless Telecommunication Services - 0.8% | |||
| T-Mobile U.S., Inc. (a) | 171,871 | 10,400 | |
| TOTAL TELECOMMUNICATION SERVICES | 31,529 | ||
| UTILITIES - 3.6% | |||
| Electric Utilities - 1.9% | |||
| Exelon Corp. | 333,539 | 13,235 | |
| Vistra Energy Corp. (a) | 519,685 | 11,875 | |
| 25,110 | |||
| Independent Power and Renewable Electricity Producers - 1.7% | |||
| NRG Energy, Inc. | 370,252 | 11,478 | |
| The AES Corp. | 979,617 | 11,991 | |
| 23,469 | |||
| TOTAL UTILITIES | 48,579 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,220,922) | 1,310,852 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 1.57% 5/17/18 | |||
| (Cost $640) | 640 | 640 | |
| Shares | Value (000s) | ||
| Money Market Funds - 1.8% | |||
| Fidelity Cash Central Fund, 1.74% (b) | |||
| (Cost $23,360) | 23,354,993 | 23,360 | |
| Equity Funds - 1.0% | |||
| Domestic Equity Funds - 1.0% | |||
| iShares S&P 500 Index ETF | |||
| (Cost $13,617) | 50,730 | 13,510 | |
| TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
| (Cost $1,258,539) | 1,348,362 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | (13,573) | ||
| NET ASSETS - 100% | $1,334,789 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Affiliated fund that is generally 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.
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 | $173 |
| Fidelity Securities Lending Cash Central Fund | 7 |
| Total | $180 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $161,294 | $161,294 | $-- | $-- |
| Consumer Staples | 98,020 | 98,020 | -- | -- |
| Energy | 91,830 | 91,830 | -- | -- |
| Financials | 165,746 | 165,746 | -- | -- |
| Health Care | 203,243 | 203,243 | -- | -- |
| Industrials | 111,576 | 111,576 | -- | -- |
| Information Technology | 321,524 | 321,524 | -- | -- |
| Materials | 53,876 | 53,876 | -- | -- |
| Real Estate | 23,635 | 23,635 | -- | -- |
| Telecommunication Services | 31,529 | 31,529 | -- | -- |
| Utilities | 48,579 | 48,579 | -- | -- |
| U.S. Government and Government Agency Obligations | 640 | -- | 640 | -- |
| Money Market Funds | 23,360 | 23,360 | -- | -- |
| Equity Funds | 13,510 | 13,510 | -- | -- |
| Total Investments in Securities: | $1,348,362 | $1,347,722 | $640 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,235,179) | $1,325,002 | |
| Fidelity Central Funds (cost $23,360) | 23,360 | |
| Total Investment in Securities (cost $1,258,539) | $1,348,362 | |
| Receivable for fund shares sold | 115 | |
| Dividends receivable | 1,255 | |
| Distributions receivable from Fidelity Central Funds | 36 | |
| Prepaid expenses | 1 | |
| Other receivables | 5 | |
| Total assets | 1,349,774 | |
| Liabilities | ||
| Payable for investments purchased | $13,617 | |
| Payable for fund shares redeemed | 746 | |
| Accrued management fee | 384 | |
| Payable for daily variation margin on futures contracts | 15 | |
| Other affiliated payables | 188 | |
| Other payables and accrued expenses | 35 | |
| Total liabilities | 14,985 | |
| Net Assets | $1,334,789 | |
| Net Assets consist of: | ||
| Paid in capital | $1,130,674 | |
| Undistributed net investment income | 4,736 | |
| Accumulated undistributed net realized gain (loss) on investments | 109,556 | |
| Net unrealized appreciation (depreciation) on investments | 89,823 | |
| Net Assets | $1,334,789 | |
| Disciplined Equity: | ||
| Net Asset Value, offering price and redemption price per share ($1,230,406 ÷ 32,111.6 shares) | $38.32 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($104,383 ÷ 2,727.8 shares) | $38.27 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $12,167 | |
| Interest | 2 | |
| Income from Fidelity Central Funds | 180 | |
| Total income | 12,349 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $3,750 | |
| Performance adjustment | (1,309) | |
| Transfer agent fees | 915 | |
| Accounting and security lending fees | 220 | |
| Custodian fees and expenses | 10 | |
| Independent trustees' fees and expenses | 3 | |
| Registration fees | 27 | |
| Audit | 36 | |
| Legal | 5 | |
| Miscellaneous | 4 | |
| Total expenses before reductions | 3,661 | |
| Expense reductions | (17) | 3,644 |
| Net investment income (loss) | 8,705 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 109,822 | |
| Fidelity Central Funds | (1) | |
| Futures contracts | (120) | |
| Total net realized gain (loss) | 109,701 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (84,505) | |
| Fidelity Central Funds | 1 | |
| Total change in net unrealized appreciation (depreciation) | (84,504) | |
| Net gain (loss) | 25,197 | |
| Net increase (decrease) in net assets resulting from operations | $33,902 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $8,705 | $17,633 |
| Net realized gain (loss) | 109,701 | 144,458 |
| Change in net unrealized appreciation (depreciation) | (84,504) | 105,055 |
| Net increase (decrease) in net assets resulting from operations | 33,902 | 267,146 |
| Distributions to shareholders from net investment income | (15,954) | (18,783) |
| Distributions to shareholders from net realized gain | (39,301) | – |
| Total distributions | (55,255) | (18,783) |
| Share transactions - net increase (decrease) | (20,794) | (125,908) |
| Total increase (decrease) in net assets | (42,147) | 122,455 |
| Net Assets | ||
| Beginning of period | 1,376,936 | 1,254,481 |
| End of period | $1,334,789 | $1,376,936 |
| Other Information | ||
| Undistributed net investment income end of period | $4,736 | $11,985 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Disciplined Equity Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $38.96 | $32.26 | $34.19 | $35.18 | $31.30 | $24.47 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .24 | .47 | .42 | .35 | .41 | .53 |
| Net realized and unrealized gain (loss) | .69 | 6.72 | (.34)B | 1.26 | 4.43 | 6.85 |
| Total from investment operations | .93 | 7.19 | .08 | 1.61 | 4.84 | 7.38 |
| Distributions from net investment income | (.45) | (.49) | (.36) | (.38) | (.69) | (.55) |
| Distributions from net realized gain | (1.12) | – | (1.65) | (2.22) | (.27) | – |
| Total distributions | (1.57) | (.49) | (2.01) | (2.60) | (.96) | (.55) |
| Net asset value, end of period | $38.32 | $38.96 | $32.26 | $34.19 | $35.18 | $31.30 |
| Total ReturnC,D | 2.37% | 22.51% | .16%B | 4.66% | 15.80% | 30.80% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .54%G | .54% | .68% | .89% | .50% | .07% |
| Expenses net of fee waivers, if any | .53%G | .54% | .68% | .89% | .50% | .07% |
| Expenses net of all reductions | .53%G | .54% | .68% | .89% | .50% | (.01)%H |
| Net investment income (loss) | 1.25%G | 1.33% | 1.30% | 1.02% | 1.24% | 1.97% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,230 | $1,266 | $1,150 | $1,385 | $1,238 | $1,156 |
| Portfolio turnover rateI | 185%G | 184% | 179% | 187% | 184% | 156% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been (.01)%
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H The ratio of expenses net of all reductions to average net assets includes non-recurring payments by certain of the fund's brokers for commissions recaptured during the period. Excluding these payments, the ratio would have been .05% and the total return would've been 30.74%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Disciplined Equity Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $38.93 | $32.23 | $34.16 | $35.15 | $31.29 | $24.49 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .26 | .51 | .45 | .38 | .45 | .61 |
| Net realized and unrealized gain (loss) | .69 | 6.71 | (.34)B | 1.27 | 4.41 | 6.79 |
| Total from investment operations | .95 | 7.22 | .11 | 1.65 | 4.86 | 7.40 |
| Distributions from net investment income | (.49) | (.52) | (.39) | (.42) | (.73) | (.60) |
| Distributions from net realized gain | (1.12) | – | (1.65) | (2.22) | (.27) | – |
| Total distributions | (1.61) | (.52) | (2.04) | (2.64) | (1.00) | (.60) |
| Net asset value, end of period | $38.27 | $38.93 | $32.23 | $34.16 | $35.15 | $31.29 |
| Total ReturnC,D | 2.42% | 22.65% | .26%B | 4.78% | 15.89% | 30.96% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .44%G | .44% | .57% | .79% | .39% | (.18)%H |
| Expenses net of fee waivers, if any | .44%G | .44% | .57% | .79% | .39% | (.18)%H |
| Expenses net of all reductions | .44%G | .44% | .57% | .79% | .39% | (.26)%H,I |
| Net investment income (loss) | 1.34%G | 1.43% | 1.41% | 1.12% | 1.35% | 2.22% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $104 | $111 | $104 | $129 | $158 | $153 |
| Portfolio turnover rateJ | 185%G | 184% | 179% | 187% | 184% | 156% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been .09%
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Expense ratio is negative due to the timing of negative management fee performance adjustments in relation to fluctuating net assets of the class.
I The ratio of expenses net of all reductions to average net assets includes non-recurring payments by certain of the fund's brokers for commissions recaptured during the period. Excluding these payments, the ratio would have been (.20)% and the total return would've been 30.90%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Disciplined Equity Fund (the Fund) is a fund of Fidelity Capital Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Disciplined Equity and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, deferred trustees compensation, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $129,199 |
| Gross unrealized depreciation | (40,013) |
| Net unrealized appreciation (depreciation) | $89,186 |
| Tax cost | $1,259,176 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily payments 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,257,572 and $1,304,900, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .35% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Disciplined Equity. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets(a) | |
| Disciplined Equity | $890 | .14 |
| Class K | 25 | .05 |
| $915 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $7. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $10 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by an amount less than five hundred dollars.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Disciplined Equity | $14,574 | $17,115 |
| Class K | 1,380 | 1,668 |
| Total | $15,954 | $18,783 |
| From net realized gain | ||
| Disciplined Equity | $36,145 | $– |
| Class K | 3,156 | – |
| Total | $39,301 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Disciplined Equity | ||||
| Shares sold | 337 | 819 | $13,206 | $29,054 |
| Reinvestment of distributions | 1,230 | 474 | 47,371 | 15,948 |
| Shares redeemed | (1,962) | (4,440) | (76,928) | (156,370) |
| Net increase (decrease) | (395) | (3,147) | $(16,351) | $(111,368) |
| Class K | ||||
| Shares sold | 104 | 301 | $4,080 | $10,549 |
| Reinvestment of distributions | 118 | 50 | 4,536 | 1,668 |
| Shares redeemed | (334) | (750) | (13,059) | (26,757) |
| Net increase (decrease) | (112) | (399) | $(4,443) | $(14,540) |
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Disciplined Equity | .53% | |||
| Actual | $1,000.00 | $1,023.70 | $2.66 | |
| Hypothetical-C | $1,000.00 | $1,022.17 | $2.66 | |
| Class K | .44% | |||
| Actual | $1,000.00 | $1,024.20 | $2.21 | |
| Hypothetical-C | $1,000.00 | $1,022.61 | $2.21 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity® Disciplined Equity Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Microsoft Corp. | 4.0 |
| Johnson & Johnson | 2.3 |
| Amazon.com, Inc. | 2.1 |
| Bank of America Corp. | 2.1 |
| Chevron Corp. | 1.9 |
| UnitedHealth Group, Inc. | 1.9 |
| Wells Fargo & Co. | 1.8 |
| Cisco Systems, Inc. | 1.8 |
| Apple, Inc. | 1.7 |
| AT&T, Inc. | 1.6 |
| 21.2 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Information Technology | 24.1 |
| Health Care | 15.2 |
| Financials | 12.4 |
| Consumer Discretionary | 12.1 |
| Industrials | 8.4 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 99.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.8% | |
* Foreign investments - 5.6%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.2% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 12.1% | |||
| Hotels, Restaurants & Leisure - 3.8% | |||
| Carnival Corp. | 111,384 | $7,024 | |
| Darden Restaurants, Inc. | 123,006 | 11,422 | |
| Hilton Grand Vacations, Inc. (a) | 235,518 | 10,127 | |
| Royal Caribbean Cruises Ltd. | 96,099 | 10,397 | |
| Wyndham Worldwide Corp. | 98,534 | 11,254 | |
| 50,224 | |||
| Household Durables - 0.7% | |||
| Toll Brothers, Inc. | 223,930 | 9,441 | |
| Internet & Direct Marketing Retail - 3.5% | |||
| Amazon.com, Inc. (a) | 17,992 | 28,178 | |
| Liberty Interactive Corp. QVC Group Series A (a) | 72,669 | 1,701 | |
| Netflix, Inc. (a) | 13,784 | 4,307 | |
| The Booking Holdings, Inc. (a) | 6,007 | 13,083 | |
| 47,269 | |||
| Media - 1.3% | |||
| Comcast Corp. Class A | 566,322 | 17,777 | |
| Multiline Retail - 1.3% | |||
| Dollar General Corp. | 56,858 | 5,489 | |
| Dollar Tree, Inc. (a) | 123,867 | 11,878 | |
| 17,367 | |||
| Specialty Retail - 0.6% | |||
| Best Buy Co., Inc. | 5,590 | 428 | |
| Lowe's Companies, Inc. | 85,560 | 7,053 | |
| 7,481 | |||
| Textiles, Apparel & Luxury Goods - 0.9% | |||
| PVH Corp. | 73,494 | 11,735 | |
| TOTAL CONSUMER DISCRETIONARY | 161,294 | ||
| CONSUMER STAPLES - 7.3% | |||
| Beverages - 0.9% | |||
| Molson Coors Brewing Co. Class B | 64,162 | 4,571 | |
| The Coca-Cola Co. | 163,495 | 7,065 | |
| 11,636 | |||
| Food & Staples Retailing - 2.7% | |||
| CVS Health Corp. | 100,029 | 6,985 | |
| Walgreens Boots Alliance, Inc. | 172,246 | 11,446 | |
| Walmart, Inc. | 205,850 | 18,209 | |
| 36,640 | |||
| Food Products - 3.6% | |||
| ConAgra Foods, Inc. | 302,980 | 11,231 | |
| Pilgrim's Pride Corp. (a) | 222,499 | 4,806 | |
| The J.M. Smucker Co. | 91,819 | 10,475 | |
| The Kraft Heinz Co. | 199,141 | 11,228 | |
| Tyson Foods, Inc. Class A | 158,048 | 11,079 | |
| 48,819 | |||
| Personal Products - 0.1% | |||
| Herbalife Nutrition Ltd. (a) | 8,751 | 925 | |
| TOTAL CONSUMER STAPLES | 98,020 | ||
| ENERGY - 6.9% | |||
| Oil, Gas & Consumable Fuels - 6.9% | |||
| Cabot Oil & Gas Corp. | 95,139 | 2,275 | |
| Chevron Corp. | 202,949 | 25,391 | |
| ConocoPhillips Co. | 28,577 | 1,872 | |
| EQT Corp. | 39,503 | 1,983 | |
| Exxon Mobil Corp. | 219,298 | 17,050 | |
| Marathon Petroleum Corp. | 166,608 | 12,481 | |
| Phillips 66 Co. | 136,522 | 15,196 | |
| Valero Energy Corp. | 140,468 | 15,582 | |
| 91,830 | |||
| FINANCIALS - 12.4% | |||
| Banks - 6.1% | |||
| Bank of America Corp. | 921,553 | 27,573 | |
| Citigroup, Inc. | 302,552 | 20,655 | |
| JPMorgan Chase & Co. | 92,691 | 10,083 | |
| Wells Fargo & Co. | 454,219 | 23,601 | |
| 81,912 | |||
| Capital Markets - 1.9% | |||
| Goldman Sachs Group, Inc. | 61,082 | 14,558 | |
| State Street Corp. | 106,971 | 10,674 | |
| 25,232 | |||
| Consumer Finance - 1.6% | |||
| Capital One Financial Corp. | 139,947 | 12,682 | |
| Discover Financial Services | 121,920 | 8,687 | |
| 21,369 | |||
| Diversified Financial Services - 0.1% | |||
| Berkshire Hathaway, Inc. Class B (a) | 4,514 | 874 | |
| Insurance - 1.0% | |||
| MetLife, Inc. | 290,187 | 13,833 | |
| Mortgage Real Estate Investment Trusts - 1.7% | |||
| AGNC Investment Corp. | 106,318 | 2,012 | |
| Annaly Capital Management, Inc. | 967,167 | 10,030 | |
| MFA Financial, Inc. | 133,215 | 1,002 | |
| New Residential Investment Corp. | 372,028 | 6,503 | |
| Two Harbors Investment Corp. | 195,221 | 2,979 | |
| 22,526 | |||
| TOTAL FINANCIALS | 165,746 | ||
| HEALTH CARE - 15.2% | |||
| Biotechnology - 2.5% | |||
| AbbVie, Inc. | 172,522 | 16,657 | |
| Amgen, Inc. | 97,605 | 17,030 | |
| 33,687 | |||
| Health Care Equipment & Supplies - 1.0% | |||
| Baxter International, Inc. | 186,227 | 12,943 | |
| Health Care Providers & Services - 6.6% | |||
| AmerisourceBergen Corp. | 123,061 | 11,147 | |
| Anthem, Inc. | 58,947 | 13,911 | |
| Centene Corp. (a) | 46,050 | 5,000 | |
| Cigna Corp. | 68,712 | 11,806 | |
| Express Scripts Holding Co. (a) | 78,129 | 5,914 | |
| Humana, Inc. | 45,499 | 13,385 | |
| McKesson Corp. | 12,002 | 1,875 | |
| UnitedHealth Group, Inc. | 104,303 | 24,657 | |
| 87,695 | |||
| Pharmaceuticals - 5.1% | |||
| Allergan PLC | 8,941 | 1,374 | |
| Johnson & Johnson | 242,007 | 30,611 | |
| Merck & Co., Inc. | 344,388 | 20,274 | |
| Pfizer, Inc. | 455,042 | 16,659 | |
| 68,918 | |||
| TOTAL HEALTH CARE | 203,243 | ||
| INDUSTRIALS - 8.4% | |||
| Aerospace & Defense - 3.1% | |||
| General Dynamics Corp. | 63,571 | 12,797 | |
| Huntington Ingalls Industries, Inc. | 43,556 | 10,593 | |
| Northrop Grumman Corp. | 23,007 | 7,409 | |
| Spirit AeroSystems Holdings, Inc. Class A | 120,981 | 9,723 | |
| 40,522 | |||
| Airlines - 1.0% | |||
| Copa Holdings SA Class A | 6,490 | 760 | |
| Delta Air Lines, Inc. | 234,076 | 12,223 | |
| Southwest Airlines Co. | 12,514 | 661 | |
| 13,644 | |||
| Construction & Engineering - 1.1% | |||
| AECOM (a) | 82,831 | 2,853 | |
| Fluor Corp. | 192,880 | 11,370 | |
| 14,223 | |||
| Electrical Equipment - 0.6% | |||
| Eaton Corp. PLC | 68,329 | 5,127 | |
| Regal Beloit Corp. | 42,168 | 3,002 | |
| 8,129 | |||
| Machinery - 1.2% | |||
| Allison Transmission Holdings, Inc. | 99,238 | 3,869 | |
| Cummins, Inc. | 74,649 | 11,933 | |
| 15,802 | |||
| Professional Services - 0.6% | |||
| Manpower, Inc. | 87,904 | 8,414 | |
| Trading Companies & Distributors - 0.8% | |||
| HD Supply Holdings, Inc. (a) | 261,981 | 10,141 | |
| Univar, Inc. (a) | 25,419 | 701 | |
| 10,842 | |||
| TOTAL INDUSTRIALS | 111,576 | ||
| INFORMATION TECHNOLOGY - 24.1% | |||
| Communications Equipment - 1.8% | |||
| Cisco Systems, Inc. | 530,108 | 23,478 | |
| Internet Software & Services - 1.5% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 16,186 | 16,487 | |
| Class C (a) | 3,230 | 3,286 | |
| Twitter, Inc. (a) | 30,444 | 923 | |
| 20,696 | |||
| IT Services - 7.6% | |||
| Accenture PLC Class A | 103,599 | 15,664 | |
| Alliance Data Systems Corp. | 48,171 | 9,781 | |
| Amdocs Ltd. | 153,838 | 10,346 | |
| Cognizant Technology Solutions Corp. Class A | 168,093 | 13,753 | |
| DXC Technology Co. | 122,511 | 12,626 | |
| Leidos Holdings, Inc. | 162,463 | 10,435 | |
| MasterCard, Inc. Class A | 113,863 | 20,298 | |
| PayPal Holdings, Inc. (a) | 73,234 | 5,464 | |
| Total System Services, Inc. | 36,923 | 3,104 | |
| 101,471 | |||
| Semiconductors & Semiconductor Equipment - 2.9% | |||
| Broadcom, Inc. | 51,094 | 11,722 | |
| First Solar, Inc. (a) | 48,777 | 3,459 | |
| Marvell Technology Group Ltd. | 482,901 | 9,687 | |
| Micron Technology, Inc. (a) | 254,600 | 11,707 | |
| ON Semiconductor Corp. (a) | 100,665 | 2,223 | |
| 38,798 | |||
| Software - 8.0% | |||
| Activision Blizzard, Inc. | 182,132 | 12,084 | |
| Adobe Systems, Inc. (a) | 76,797 | 17,018 | |
| Intuit, Inc. | 34,603 | 6,394 | |
| Microsoft Corp. | 573,479 | 53,630 | |
| Oracle Corp. | 332,822 | 15,200 | |
| Salesforce.com, Inc. (a) | 21,929 | 2,653 | |
| 106,979 | |||
| Technology Hardware, Storage & Peripherals - 2.3% | |||
| Apple, Inc. | 134,639 | 22,250 | |
| HP, Inc. | 119,129 | 2,560 | |
| Western Digital Corp. | 67,167 | 5,292 | |
| 30,102 | |||
| TOTAL INFORMATION TECHNOLOGY | 321,524 | ||
| MATERIALS - 4.0% | |||
| Chemicals - 3.3% | |||
| CF Industries Holdings, Inc. | 200,723 | 7,788 | |
| Huntsman Corp. | 201,642 | 6,003 | |
| LyondellBasell Industries NV Class A | 116,970 | 12,367 | |
| Olin Corp. | 187,067 | 5,648 | |
| The Chemours Co. LLC | 48,904 | 2,367 | |
| Westlake Chemical Corp. | 95,690 | 10,236 | |
| 44,409 | |||
| Metals & Mining - 0.7% | |||
| Freeport-McMoRan, Inc. | 622,414 | 9,467 | |
| TOTAL MATERIALS | 53,876 | ||
| REAL ESTATE - 1.8% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
| Host Hotels & Resorts, Inc. | 32,595 | 638 | |
| Real Estate Management & Development - 1.7% | |||
| CBRE Group, Inc. (a) | 244,648 | 11,085 | |
| Jones Lang LaSalle, Inc. | 46,502 | 7,883 | |
| VICI Properties, Inc. | 221,608 | 4,029 | |
| 22,997 | |||
| TOTAL REAL ESTATE | 23,635 | ||
| TELECOMMUNICATION SERVICES - 2.4% | |||
| Diversified Telecommunication Services - 1.6% | |||
| AT&T, Inc. | 646,159 | 21,129 | |
| Wireless Telecommunication Services - 0.8% | |||
| T-Mobile U.S., Inc. (a) | 171,871 | 10,400 | |
| TOTAL TELECOMMUNICATION SERVICES | 31,529 | ||
| UTILITIES - 3.6% | |||
| Electric Utilities - 1.9% | |||
| Exelon Corp. | 333,539 | 13,235 | |
| Vistra Energy Corp. (a) | 519,685 | 11,875 | |
| 25,110 | |||
| Independent Power and Renewable Electricity Producers - 1.7% | |||
| NRG Energy, Inc. | 370,252 | 11,478 | |
| The AES Corp. | 979,617 | 11,991 | |
| 23,469 | |||
| TOTAL UTILITIES | 48,579 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,220,922) | 1,310,852 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 1.57% 5/17/18 | |||
| (Cost $640) | 640 | 640 | |
| Shares | Value (000s) | ||
| Money Market Funds - 1.8% | |||
| Fidelity Cash Central Fund, 1.74% (b) | |||
| (Cost $23,360) | 23,354,993 | 23,360 | |
| Equity Funds - 1.0% | |||
| Domestic Equity Funds - 1.0% | |||
| iShares S&P 500 Index ETF | |||
| (Cost $13,617) | 50,730 | 13,510 | |
| TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
| (Cost $1,258,539) | 1,348,362 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | (13,573) | ||
| NET ASSETS - 100% | $1,334,789 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Affiliated fund that is generally 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.
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 | $173 |
| Fidelity Securities Lending Cash Central Fund | 7 |
| Total | $180 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $161,294 | $161,294 | $-- | $-- |
| Consumer Staples | 98,020 | 98,020 | -- | -- |
| Energy | 91,830 | 91,830 | -- | -- |
| Financials | 165,746 | 165,746 | -- | -- |
| Health Care | 203,243 | 203,243 | -- | -- |
| Industrials | 111,576 | 111,576 | -- | -- |
| Information Technology | 321,524 | 321,524 | -- | -- |
| Materials | 53,876 | 53,876 | -- | -- |
| Real Estate | 23,635 | 23,635 | -- | -- |
| Telecommunication Services | 31,529 | 31,529 | -- | -- |
| Utilities | 48,579 | 48,579 | -- | -- |
| U.S. Government and Government Agency Obligations | 640 | -- | 640 | -- |
| Money Market Funds | 23,360 | 23,360 | -- | -- |
| Equity Funds | 13,510 | 13,510 | -- | -- |
| Total Investments in Securities: | $1,348,362 | $1,347,722 | $640 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,235,179) | $1,325,002 | |
| Fidelity Central Funds (cost $23,360) | 23,360 | |
| Total Investment in Securities (cost $1,258,539) | $1,348,362 | |
| Receivable for fund shares sold | 115 | |
| Dividends receivable | 1,255 | |
| Distributions receivable from Fidelity Central Funds | 36 | |
| Prepaid expenses | 1 | |
| Other receivables | 5 | |
| Total assets | 1,349,774 | |
| Liabilities | ||
| Payable for investments purchased | $13,617 | |
| Payable for fund shares redeemed | 746 | |
| Accrued management fee | 384 | |
| Payable for daily variation margin on futures contracts | 15 | |
| Other affiliated payables | 188 | |
| Other payables and accrued expenses | 35 | |
| Total liabilities | 14,985 | |
| Net Assets | $1,334,789 | |
| Net Assets consist of: | ||
| Paid in capital | $1,130,674 | |
| Undistributed net investment income | 4,736 | |
| Accumulated undistributed net realized gain (loss) on investments | 109,556 | |
| Net unrealized appreciation (depreciation) on investments | 89,823 | |
| Net Assets | $1,334,789 | |
| Disciplined Equity: | ||
| Net Asset Value, offering price and redemption price per share ($1,230,406 ÷ 32,111.6 shares) | $38.32 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($104,383 ÷ 2,727.8 shares) | $38.27 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $12,167 | |
| Interest | 2 | |
| Income from Fidelity Central Funds | 180 | |
| Total income | 12,349 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $3,750 | |
| Performance adjustment | (1,309) | |
| Transfer agent fees | 915 | |
| Accounting and security lending fees | 220 | |
| Custodian fees and expenses | 10 | |
| Independent trustees' fees and expenses | 3 | |
| Registration fees | 27 | |
| Audit | 36 | |
| Legal | 5 | |
| Miscellaneous | 4 | |
| Total expenses before reductions | 3,661 | |
| Expense reductions | (17) | 3,644 |
| Net investment income (loss) | 8,705 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 109,822 | |
| Fidelity Central Funds | (1) | |
| Futures contracts | (120) | |
| Total net realized gain (loss) | 109,701 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (84,505) | |
| Fidelity Central Funds | 1 | |
| Total change in net unrealized appreciation (depreciation) | (84,504) | |
| Net gain (loss) | 25,197 | |
| Net increase (decrease) in net assets resulting from operations | $33,902 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $8,705 | $17,633 |
| Net realized gain (loss) | 109,701 | 144,458 |
| Change in net unrealized appreciation (depreciation) | (84,504) | 105,055 |
| Net increase (decrease) in net assets resulting from operations | 33,902 | 267,146 |
| Distributions to shareholders from net investment income | (15,954) | (18,783) |
| Distributions to shareholders from net realized gain | (39,301) | – |
| Total distributions | (55,255) | (18,783) |
| Share transactions - net increase (decrease) | (20,794) | (125,908) |
| Total increase (decrease) in net assets | (42,147) | 122,455 |
| Net Assets | ||
| Beginning of period | 1,376,936 | 1,254,481 |
| End of period | $1,334,789 | $1,376,936 |
| Other Information | ||
| Undistributed net investment income end of period | $4,736 | $11,985 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Disciplined Equity Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $38.96 | $32.26 | $34.19 | $35.18 | $31.30 | $24.47 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .24 | .47 | .42 | .35 | .41 | .53 |
| Net realized and unrealized gain (loss) | .69 | 6.72 | (.34)B | 1.26 | 4.43 | 6.85 |
| Total from investment operations | .93 | 7.19 | .08 | 1.61 | 4.84 | 7.38 |
| Distributions from net investment income | (.45) | (.49) | (.36) | (.38) | (.69) | (.55) |
| Distributions from net realized gain | (1.12) | – | (1.65) | (2.22) | (.27) | – |
| Total distributions | (1.57) | (.49) | (2.01) | (2.60) | (.96) | (.55) |
| Net asset value, end of period | $38.32 | $38.96 | $32.26 | $34.19 | $35.18 | $31.30 |
| Total ReturnC,D | 2.37% | 22.51% | .16%B | 4.66% | 15.80% | 30.80% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .54%G | .54% | .68% | .89% | .50% | .07% |
| Expenses net of fee waivers, if any | .53%G | .54% | .68% | .89% | .50% | .07% |
| Expenses net of all reductions | .53%G | .54% | .68% | .89% | .50% | (.01)%H |
| Net investment income (loss) | 1.25%G | 1.33% | 1.30% | 1.02% | 1.24% | 1.97% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,230 | $1,266 | $1,150 | $1,385 | $1,238 | $1,156 |
| Portfolio turnover rateI | 185%G | 184% | 179% | 187% | 184% | 156% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been (.01)%
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H The ratio of expenses net of all reductions to average net assets includes non-recurring payments by certain of the fund's brokers for commissions recaptured during the period. Excluding these payments, the ratio would have been .05% and the total return would've been 30.74%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Disciplined Equity Fund Class K
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $38.93 | $32.23 | $34.16 | $35.15 | $31.29 | $24.49 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .26 | .51 | .45 | .38 | .45 | .61 |
| Net realized and unrealized gain (loss) | .69 | 6.71 | (.34)B | 1.27 | 4.41 | 6.79 |
| Total from investment operations | .95 | 7.22 | .11 | 1.65 | 4.86 | 7.40 |
| Distributions from net investment income | (.49) | (.52) | (.39) | (.42) | (.73) | (.60) |
| Distributions from net realized gain | (1.12) | – | (1.65) | (2.22) | (.27) | – |
| Total distributions | (1.61) | (.52) | (2.04) | (2.64) | (1.00) | (.60) |
| Net asset value, end of period | $38.27 | $38.93 | $32.23 | $34.16 | $35.15 | $31.29 |
| Total ReturnC,D | 2.42% | 22.65% | .26%B | 4.78% | 15.89% | 30.96% |
| Ratios to Average Net AssetsE,F | ||||||
| Expenses before reductions | .44%G | .44% | .57% | .79% | .39% | (.18)%H |
| Expenses net of fee waivers, if any | .44%G | .44% | .57% | .79% | .39% | (.18)%H |
| Expenses net of all reductions | .44%G | .44% | .57% | .79% | .39% | (.26)%H,I |
| Net investment income (loss) | 1.34%G | 1.43% | 1.41% | 1.12% | 1.35% | 2.22% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $104 | $111 | $104 | $129 | $158 | $153 |
| Portfolio turnover rateJ | 185%G | 184% | 179% | 187% | 184% | 156% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been .09%
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Expense ratio is negative due to the timing of negative management fee performance adjustments in relation to fluctuating net assets of the class.
I The ratio of expenses net of all reductions to average net assets includes non-recurring payments by certain of the fund's brokers for commissions recaptured during the period. Excluding these payments, the ratio would have been (.20)% and the total return would've been 30.90%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Disciplined Equity Fund (the Fund) is a fund of Fidelity Capital Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Disciplined Equity and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, deferred trustees compensation, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $129,199 |
| Gross unrealized depreciation | (40,013) |
| Net unrealized appreciation (depreciation) | $89,186 |
| Tax cost | $1,259,176 |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily payments 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,257,572 and $1,304,900, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .35% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Disciplined Equity. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets(a) | |
| Disciplined Equity | $890 | .14 |
| Class K | 25 | .05 |
| $915 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $7. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $10 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by an amount less than five hundred dollars.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Disciplined Equity | $14,574 | $17,115 |
| Class K | 1,380 | 1,668 |
| Total | $15,954 | $18,783 |
| From net realized gain | ||
| Disciplined Equity | $36,145 | $– |
| Class K | 3,156 | – |
| Total | $39,301 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017 | Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| Disciplined Equity | ||||
| Shares sold | 337 | 819 | $13,206 | $29,054 |
| Reinvestment of distributions | 1,230 | 474 | 47,371 | 15,948 |
| Shares redeemed | (1,962) | (4,440) | (76,928) | (156,370) |
| Net increase (decrease) | (395) | (3,147) | $(16,351) | $(111,368) |
| Class K | ||||
| Shares sold | 104 | 301 | $4,080 | $10,549 |
| Reinvestment of distributions | 118 | 50 | 4,536 | 1,668 |
| Shares redeemed | (334) | (750) | (13,059) | (26,757) |
| Net increase (decrease) | (112) | (399) | $(4,443) | $(14,540) |
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Disciplined Equity | .53% | |||
| Actual | $1,000.00 | $1,023.70 | $2.66 | |
| Hypothetical-C | $1,000.00 | $1,022.17 | $2.66 | |
| Class K | .44% | |||
| Actual | $1,000.00 | $1,024.20 | $2.21 | |
| Hypothetical-C | $1,000.00 | $1,022.61 | $2.21 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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FDE-K-SANN-0618
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Fidelity® Focused Stock Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| Intuit, Inc. | 5.6 |
| Adobe Systems, Inc. | 5.6 |
| Humana, Inc. | 5.3 |
| Microsoft Corp. | 5.2 |
| S&P Global, Inc. | 5.2 |
| Union Pacific Corp. | 5.1 |
| Bank of America Corp. | 4.8 |
| MasterCard, Inc. Class A | 4.6 |
| Charles Schwab Corp. | 4.3 |
| UnitedHealth Group, Inc. | 4.0 |
| 49.7 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Information Technology | 40.7 |
| Financials | 17.6 |
| Health Care | 10.8 |
| Industrials | 9.9 |
| Consumer Discretionary | 9.8 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 95.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.1% | |
* Foreign investments – 0.7%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 95.9% | |||
| Shares | Value | ||
| CONSUMER DISCRETIONARY - 9.8% | |||
| Diversified Consumer Services - 0.3% | |||
| Adtalem Global Education, Inc. (a) | 134,810 | $6,416,956 | |
| Hotels, Restaurants & Leisure - 3.5% | |||
| Marriott International, Inc. Class A | 490,000 | 66,973,200 | |
| Internet & Direct Marketing Retail - 4.4% | |||
| Amazon.com, Inc. (a) | 40,300 | 63,115,039 | |
| Netflix, Inc. (a) | 67,000 | 20,934,820 | |
| 84,049,859 | |||
| Multiline Retail - 0.5% | |||
| Dollar Tree, Inc. (a) | 92,000 | 8,821,880 | |
| Specialty Retail - 0.9% | |||
| Lowe's Companies, Inc. | 219,000 | 18,052,170 | |
| Textiles, Apparel & Luxury Goods - 0.2% | |||
| adidas AG | 14,800 | 3,644,199 | |
| TOTAL CONSUMER DISCRETIONARY | 187,958,264 | ||
| CONSUMER STAPLES - 0.5% | |||
| Food & Staples Retailing - 0.5% | |||
| Walmart, Inc. | 111,000 | 9,819,060 | |
| ENERGY - 6.3% | |||
| Oil, Gas & Consumable Fuels - 6.3% | |||
| Chevron Corp. | 462,000 | 57,800,820 | |
| ConocoPhillips Co. | 573,200 | 37,544,600 | |
| Phillips 66 Co. | 230,000 | 25,601,300 | |
| 120,946,720 | |||
| FINANCIALS - 17.6% | |||
| Banks - 4.8% | |||
| Bank of America Corp. | 3,113,000 | 93,140,960 | |
| Capital Markets - 12.8% | |||
| BlackRock, Inc. Class A | 38,000 | 19,817,000 | |
| Charles Schwab Corp. | 1,498,000 | 83,408,640 | |
| MSCI, Inc. | 288,800 | 43,270,904 | |
| S&P Global, Inc. | 526,394 | 99,277,908 | |
| 245,774,452 | |||
| TOTAL FINANCIALS | 338,915,412 | ||
| HEALTH CARE - 10.8% | |||
| Health Care Equipment & Supplies - 0.2% | |||
| Boston Scientific Corp. (a) | 117,032 | 3,361,159 | |
| Health Care Providers & Services - 9.3% | |||
| Humana, Inc. | 347,000 | 102,080,460 | |
| UnitedHealth Group, Inc. | 329,000 | 77,775,600 | |
| 179,856,060 | |||
| Life Sciences Tools & Services - 0.3% | |||
| Agilent Technologies, Inc. | 102,437 | 6,734,208 | |
| Pharmaceuticals - 1.0% | |||
| Nektar Therapeutics (a) | 221,000 | 18,488,860 | |
| TOTAL HEALTH CARE | 208,440,287 | ||
| INDUSTRIALS - 9.9% | |||
| Aerospace & Defense - 2.7% | |||
| Northrop Grumman Corp. | 163,000 | 52,492,520 | |
| Industrial Conglomerates - 0.5% | |||
| General Electric Co. | 700,000 | 9,849,000 | |
| Road & Rail - 6.7% | |||
| Norfolk Southern Corp. | 220,000 | 31,563,400 | |
| Union Pacific Corp. | 727,000 | 97,149,010 | |
| 128,712,410 | |||
| TOTAL INDUSTRIALS | 191,053,930 | ||
| INFORMATION TECHNOLOGY - 40.7% | |||
| Internet Software & Services - 3.8% | |||
| Alphabet, Inc. Class A (a) | 49,600 | 50,521,568 | |
| Facebook, Inc. Class A (a) | 73,700 | 12,676,400 | |
| Shopify, Inc. (a) | 76,300 | 10,195,969 | |
| 73,393,937 | |||
| IT Services - 13.4% | |||
| MasterCard, Inc. Class A | 502,000 | 89,491,540 | |
| PayPal Holdings, Inc. (a) | 1,022,000 | 76,251,420 | |
| Square, Inc. (a) | 1,302,100 | 61,641,414 | |
| Visa, Inc. Class A | 249,000 | 31,593,120 | |
| 258,977,494 | |||
| Software - 23.5% | |||
| Activision Blizzard, Inc. | 89,200 | 5,918,420 | |
| Adobe Systems, Inc. (a) | 489,112 | 108,387,219 | |
| Intuit, Inc. | 587,000 | 108,471,731 | |
| Microsoft Corp. | 1,064,000 | 99,505,280 | |
| Parametric Technology Corp. (a) | 608,000 | 50,068,800 | |
| RingCentral, Inc. (a) | 102,360 | 6,863,238 | |
| Salesforce.com, Inc. (a) | 604,000 | 73,077,960 | |
| 452,292,648 | |||
| TOTAL INFORMATION TECHNOLOGY | 784,664,079 | ||
| MATERIALS - 0.3% | |||
| Chemicals - 0.3% | |||
| DowDuPont, Inc. | 89,000 | 5,628,360 | |
| TOTAL COMMON STOCKS | |||
| (Cost $1,417,792,625) | 1,847,426,112 | ||
| Money Market Funds - 4.1% | |||
| Fidelity Cash Central Fund, 1.74% (b) | |||
| (Cost $78,590,004) | 78,574,289 | 78,590,004 | |
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $1,496,382,629) | 1,926,016,116 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (760,756) | ||
| NET ASSETS - 100% | $1,925,255,360 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally 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.
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 | $143,062 |
| Fidelity Securities Lending Cash Central Fund | 23,068 |
| Total | $166,130 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
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 Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| April 30, 2018 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,417,792,625) | $1,847,426,112 | |
| Fidelity Central Funds (cost $78,590,004) | 78,590,004 | |
| Total Investment in Securities (cost $1,496,382,629) | $1,926,016,116 | |
| Receivable for investments sold | 12,187,622 | |
| Receivable for fund shares sold | 3,114,209 | |
| Dividends receivable | 538,762 | |
| Distributions receivable from Fidelity Central Funds | 86,453 | |
| Prepaid expenses | 833 | |
| Other receivables | 63,892 | |
| Total assets | 1,942,007,887 | |
| Liabilities | ||
| Payable for investments purchased | $14,506,793 | |
| Payable for fund shares redeemed | 869,516 | |
| Accrued management fee | 1,035,690 | |
| Other affiliated payables | 306,670 | |
| Other payables and accrued expenses | 33,858 | |
| Total liabilities | 16,752,527 | |
| Net Assets | $1,925,255,360 | |
| Net Assets consist of: | ||
| Paid in capital | $1,337,585,058 | |
| Distributions in excess of net investment income | (114,038) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 158,142,610 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 429,641,730 | |
| Net Assets, for 80,621,830 shares outstanding | $1,925,255,360 | |
| Net Asset Value, offering price and redemption price per share ($1,925,255,360 ÷ 80,621,830 shares) | $23.88 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended April 30, 2018 (Unaudited) | ||
| Investment Income | ||
| Dividends | $7,951,844 | |
| Income from Fidelity Central Funds | 166,130 | |
| Total income | 8,117,974 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $5,008,139 | |
| Performance adjustment | 327,624 | |
| Transfer agent fees | 1,484,422 | |
| Accounting and security lending fees | 285,159 | |
| Custodian fees and expenses | 20,931 | |
| Independent trustees' fees and expenses | 3,584 | |
| Registration fees | 16,478 | |
| Audit | 23,792 | |
| Legal | 8,909 | |
| Miscellaneous | 5,613 | |
| Total expenses before reductions | 7,184,651 | |
| Expense reductions | (112,893) | 7,071,758 |
| Net investment income (loss) | 1,046,216 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 171,088,616 | |
| Fidelity Central Funds | 2,853 | |
| Foreign currency transactions | 7,440 | |
| Total net realized gain (loss) | 171,098,909 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (33,762,533) | |
| Assets and liabilities in foreign currencies | 4,135 | |
| Total change in net unrealized appreciation (depreciation) | (33,758,398) | |
| Net gain (loss) | 137,340,511 | |
| Net increase (decrease) in net assets resulting from operations | $138,386,727 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,046,216 | $10,086,614 |
| Net realized gain (loss) | 171,098,909 | 114,369,645 |
| Change in net unrealized appreciation (depreciation) | (33,758,398) | 262,445,434 |
| Net increase (decrease) in net assets resulting from operations | 138,386,727 | 386,901,693 |
| Distributions to shareholders from net investment income | (7,413,381) | (8,564,910) |
| Distributions to shareholders from net realized gain | (96,955,373) | (8,145,061) |
| Total distributions | (104,368,754) | (16,709,971) |
| Share transactions | ||
| Proceeds from sales of shares | 218,222,584 | 76,989,324 |
| Reinvestment of distributions | 99,419,534 | 15,984,451 |
| Cost of shares redeemed | (144,183,947) | (347,873,098) |
| Net increase (decrease) in net assets resulting from share transactions | 173,458,171 | (254,899,323) |
| Total increase (decrease) in net assets | 207,476,144 | 115,292,399 |
| Net Assets | ||
| Beginning of period | 1,717,779,216 | 1,602,486,817 |
| End of period | $1,925,255,360 | $1,717,779,216 |
| Other Information | ||
| Undistributed net investment income end of period | $– | $6,253,127 |
| Distributions in excess of net investment income end of period | $(114,038) | $– |
| Shares | ||
| Sold | 9,122,390 | 3,758,035 |
| Issued in reinvestment of distributions | 4,408,849 | 851,596 |
| Redeemed | (6,069,806) | (17,461,631) |
| Net increase (decrease) | 7,461,433 | (12,852,000) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Focused Stock Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $23.48 | $18.63 | $19.08 | $20.74 | $19.60 | $15.63 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .01 | .13 | .09 | .04 | (.01) | (.02) |
| Net realized and unrealized gain (loss) | 1.83 | 4.92 | .52 | .24 | 2.28 | 4.81 |
| Total from investment operations | 1.84 | 5.05 | .61 | .28 | 2.27 | 4.79 |
| Distributions from net investment income | (.10) | (.10) | (.05) | (.02) | – | (.03) |
| Distributions from net realized gain | (1.33) | (.10) | (1.02) | (1.92) | (1.13) | (.79) |
| Total distributions | (1.44)B | (.20) | (1.06)C | (1.94) | (1.13) | (.82) |
| Net asset value, end of period | $23.88 | $23.48 | $18.63 | $19.08 | $20.74 | $19.60 |
| Total ReturnD,E | 8.18% | 27.37% | 3.31% | 1.33% | 12.14% | 32.25% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | .78%H | .57% | .62% | .73% | .78% | .91% |
| Expenses net of fee waivers, if any | .77%H | .57% | .62% | .72% | .78% | .91% |
| Expenses net of all reductions | .76%H | .57% | .62% | .72% | .78% | .89% |
| Net investment income (loss) | .11%H | .63% | .50% | .18% | (.04)% | (.09)% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $1,925,255 | $1,717,779 | $1,602,487 | $1,896,753 | $1,848,723 | $1,571,884 |
| Portfolio turnover rateI | 156%H | 121% | 141% | 189%J | 223% | 200% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.44 per share is comprised of distributions from net investment income of $.102 and distributions from net realized gain of $1.334 per share.
C Total distributions of $1.06 per share is comprised of distributions from net investment income of $.045 and distributions from net realized gain of $1.017 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure 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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $447,397,944 |
| Gross unrealized depreciation | (24,216,716) |
| Net unrealized appreciation (depreciation) | $423,181,228 |
| Tax cost | $1,502,834,888 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,427,924,826 and $1,423,552,876, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, 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 .16% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $20,826 for the period.
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,574 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, 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 $23,068. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $103,583 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $624.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $8,686.
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.
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 Funds 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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Actual | .77% | $1,000.00 | $1,081.80 | $3.97 |
| Hypothetical-C | $1,000.00 | $1,020.98 | $3.86 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity Advisor® Stock Selector Small Cap Fund - Semi-Annual Report April 30, 2018 Class A, Class M, Class C, Class I and Class Z are classes of Fidelity® Stock Selector Small Cap Fund |
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Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| RingCentral, Inc. | 1.3 |
| Nektar Therapeutics | 1.1 |
| Wintrust Financial Corp. | 1.1 |
| EPAM Systems, Inc. | 1.0 |
| Terreno Realty Corp. | 1.0 |
| Primerica, Inc. | 1.0 |
| Paycom Software, Inc. | 1.0 |
| bluebird bio, Inc. | 1.0 |
| EMCOR Group, Inc. | 1.0 |
| Cullen/Frost Bankers, Inc. | 0.9 |
| 10.4 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Financials | 18.4 |
| Information Technology | 18.0 |
| Health Care | 16.4 |
| Industrials | 15.1 |
| Consumer Discretionary | 12.3 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018* | ||
| Stocks | 100.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) | (0.8)% | |
* Foreign investments - 8.4%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 100.8% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 12.3% | |||
| Auto Components - 0.6% | |||
| Fox Factory Holding Corp. (a) | 99,600 | $3,312 | |
| Standard Motor Products, Inc. | 69,002 | 3,129 | |
| 6,441 | |||
| Hotels, Restaurants & Leisure - 2.8% | |||
| Bluegreen Vacations Corp. (b) | 211,400 | 4,919 | |
| Cedar Fair LP (depositary unit) | 71,971 | 4,875 | |
| Eldorado Resorts, Inc. (a) | 175,200 | 7,096 | |
| Marriott Vacations Worldwide Corp. | 59,800 | 7,332 | |
| Texas Roadhouse, Inc. Class A | 117,700 | 7,542 | |
| 31,764 | |||
| Household Durables - 2.5% | |||
| Cavco Industries, Inc. (a) | 37,000 | 6,303 | |
| Taylor Morrison Home Corp. (a) | 304,500 | 7,235 | |
| TopBuild Corp. (a) | 103,500 | 8,249 | |
| TRI Pointe Homes, Inc. (a) | 411,900 | 7,048 | |
| 28,835 | |||
| Leisure Products - 0.8% | |||
| Brunswick Corp. | 94,796 | 5,676 | |
| Johnson Outdoors, Inc. Class A | 57,533 | 3,726 | |
| 9,402 | |||
| Media - 0.7% | |||
| Cinemark Holdings, Inc. | 145,900 | 5,715 | |
| Lions Gate Entertainment Corp. Class B | 115,000 | 2,647 | |
| 8,362 | |||
| Multiline Retail - 0.7% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 119,500 | 7,433 | |
| Specialty Retail - 2.2% | |||
| Burlington Stores, Inc. (a) | 43,700 | 5,937 | |
| Monro, Inc. | 116,600 | 6,524 | |
| Murphy U.S.A., Inc. (a) | 83,700 | 5,237 | |
| The Children's Place Retail Stores, Inc. | 53,900 | 6,875 | |
| 24,573 | |||
| Textiles, Apparel & Luxury Goods - 2.0% | |||
| Deckers Outdoor Corp. (a) | 68,400 | 6,379 | |
| Emerald Expositions Events, Inc. | 153,400 | 2,956 | |
| Steven Madden Ltd. | 162,159 | 7,824 | |
| Wolverine World Wide, Inc. | 185,900 | 5,570 | |
| 22,729 | |||
| TOTAL CONSUMER DISCRETIONARY | 139,539 | ||
| CONSUMER STAPLES - 2.3% | |||
| Beverages - 0.2% | |||
| Cott Corp. | 135,300 | 1,935 | |
| Food & Staples Retailing - 0.3% | |||
| Performance Food Group Co. (a) | 114,775 | 3,724 | |
| Food Products - 1.1% | |||
| Cranswick PLC | 65,700 | 2,636 | |
| Ingredion, Inc. | 24,800 | 3,003 | |
| J&J Snack Foods Corp. | 29,375 | 4,036 | |
| Lamb Weston Holdings, Inc. | 48,200 | 3,148 | |
| 12,823 | |||
| Household Products - 0.4% | |||
| Central Garden & Pet Co. Class A (non-vtg.) (a) | 109,200 | 3,877 | |
| Personal Products - 0.3% | |||
| Inter Parfums, Inc. | 70,000 | 3,584 | |
| TOTAL CONSUMER STAPLES | 25,943 | ||
| ENERGY - 4.3% | |||
| Energy Equipment & Services - 1.1% | |||
| Nabors Industries Ltd. | 554,600 | 4,221 | |
| Rowan Companies PLC (a) | 285,840 | 4,128 | |
| Total Energy Services, Inc. | 419,493 | 4,450 | |
| 12,799 | |||
| Oil, Gas & Consumable Fuels - 3.2% | |||
| Boardwalk Pipeline Partners, LP | 275,508 | 3,133 | |
| Delek U.S. Holdings, Inc. | 183,900 | 8,711 | |
| Diamondback Energy, Inc. (a) | 43,307 | 5,563 | |
| Newfield Exploration Co. (a) | 124,988 | 3,725 | |
| PDC Energy, Inc. (a) | 106,300 | 5,691 | |
| WPX Energy, Inc. (a) | 512,890 | 8,765 | |
| 35,588 | |||
| TOTAL ENERGY | 48,387 | ||
| FINANCIALS - 18.4% | |||
| Banks - 11.2% | |||
| Associated Banc-Corp. | 332,723 | 8,801 | |
| BancFirst Corp. | 180,456 | 10,313 | |
| Banner Corp. | 91,429 | 5,248 | |
| Boston Private Financial Holdings, Inc. | 311,327 | 4,997 | |
| City Holding Co. | 110,700 | 7,924 | |
| Columbia Banking Systems, Inc. | 228,200 | 9,176 | |
| Cullen/Frost Bankers, Inc. | 92,400 | 10,575 | |
| CVB Financial Corp. | 328,800 | 7,283 | |
| First Merchants Corp. | 189,237 | 8,152 | |
| Heartland Financial U.S.A., Inc. | 164,821 | 8,843 | |
| Independent Bank Corp., Massachusetts | 113,542 | 8,209 | |
| Preferred Bank, Los Angeles | 87,000 | 5,545 | |
| Stock Yards Bancorp, Inc. | 39,216 | 1,469 | |
| Tompkins Financial Corp. | 30,284 | 2,353 | |
| Trico Bancshares | 245,100 | 9,159 | |
| WesBanco, Inc. | 166,200 | 7,280 | |
| Wintrust Financial Corp. | 133,900 | 11,977 | |
| 127,304 | |||
| Capital Markets - 1.7% | |||
| Hamilton Lane, Inc. Class A | 101,543 | 4,250 | |
| OM Asset Management Ltd. | 542,710 | 8,233 | |
| PJT Partners, Inc. | 126,400 | 7,014 | |
| 19,497 | |||
| Diversified Financial Services - 0.3% | |||
| Cotiviti Holdings, Inc. (a) | 102,800 | 3,551 | |
| Insurance - 2.5% | |||
| Employers Holdings, Inc. | 186,686 | 7,635 | |
| First American Financial Corp. | 157,600 | 8,055 | |
| James River Group Holdings Ltd. | 9,958 | 362 | |
| Primerica, Inc. | 120,600 | 11,668 | |
| 27,720 | |||
| Thrifts & Mortgage Finance - 2.7% | |||
| Beneficial Bancorp, Inc. | 298,580 | 4,732 | |
| Meridian Bancorp, Inc. Maryland | 465,400 | 8,796 | |
| Washington Federal, Inc. | 239,063 | 7,590 | |
| WSFS Financial Corp. | 184,142 | 9,226 | |
| 30,344 | |||
| TOTAL FINANCIALS | 208,416 | ||
| HEALTH CARE - 16.4% | |||
| Biotechnology - 9.2% | |||
| Abeona Therapeutics, Inc. (a)(b) | 133,673 | 2,333 | |
| ACADIA Pharmaceuticals, Inc. (a) | 107,652 | 1,702 | |
| Acorda Therapeutics, Inc. (a) | 187,300 | 4,327 | |
| Agios Pharmaceuticals, Inc. (a) | 66,715 | 5,598 | |
| Amarin Corp. PLC ADR (a)(b) | 408,500 | 1,123 | |
| AnaptysBio, Inc. (a) | 63,000 | 5,908 | |
| Apellis Pharmaceuticals, Inc. (a) | 6,300 | 152 | |
| Argenx SE ADR | 41,331 | 3,621 | |
| Ascendis Pharma A/S sponsored ADR (a) | 75,306 | 4,745 | |
| Atara Biotherapeutics, Inc. (a) | 62,600 | 2,526 | |
| Audentes Therapeutics, Inc. (a) | 92,600 | 3,460 | |
| bluebird bio, Inc. (a) | 64,728 | 11,013 | |
| Cellectis SA sponsored ADR (a) | 124,900 | 3,585 | |
| CytomX Therapeutics, Inc. (a) | 83,605 | 2,199 | |
| CytomX Therapeutics, Inc. (a)(c) | 27,627 | 727 | |
| FibroGen, Inc. (a) | 65,900 | 2,995 | |
| Heron Therapeutics, Inc. (a) | 155,100 | 4,700 | |
| Insmed, Inc. (a) | 239,465 | 5,826 | |
| Intercept Pharmaceuticals, Inc. (a) | 45,503 | 3,095 | |
| Ionis Pharmaceuticals, Inc. (a) | 76,128 | 3,276 | |
| Kura Oncology, Inc. (a) | 66,598 | 1,009 | |
| La Jolla Pharmaceutical Co. (a) | 110,800 | 3,215 | |
| Loxo Oncology, Inc. (a) | 22,200 | 2,795 | |
| Mirati Therapeutics, Inc. (a) | 85,600 | 2,636 | |
| Neurocrine Biosciences, Inc. (a) | 89,741 | 7,276 | |
| Protagonist Therapeutics, Inc. (a) | 173,100 | 1,496 | |
| Sage Therapeutics, Inc. (a) | 29,900 | 4,303 | |
| Sarepta Therapeutics, Inc. (a) | 10,200 | 779 | |
| Sienna Biopharmaceuticals, Inc. (b) | 38,984 | 748 | |
| Spark Therapeutics, Inc. (a) | 68,200 | 5,205 | |
| TESARO, Inc. (a) | 51,000 | 2,596 | |
| 104,969 | |||
| Health Care Equipment & Supplies - 2.4% | |||
| Cantel Medical Corp. | 66,600 | 7,464 | |
| Integra LifeSciences Holdings Corp. (a) | 89,812 | 5,535 | |
| iRhythm Technologies, Inc. (a) | 82,400 | 4,792 | |
| Masimo Corp. (a) | 31,966 | 2,868 | |
| Nanosonics Ltd. (a) | 1,414,191 | 2,547 | |
| Steris PLC | 49,700 | 4,698 | |
| 27,904 | |||
| Health Care Providers & Services - 2.2% | |||
| G1 Therapeutics, Inc. | 170,400 | 6,535 | |
| Magellan Health Services, Inc. (a) | 88,852 | 7,450 | |
| Molina Healthcare, Inc. (a) | 82,500 | 6,868 | |
| NMC Health PLC | 74,600 | 3,664 | |
| 24,517 | |||
| Health Care Technology - 0.3% | |||
| Veeva Systems, Inc. Class A (a) | 44,300 | 3,107 | |
| Life Sciences Tools & Services - 0.6% | |||
| ICON PLC (a) | 58,700 | 6,905 | |
| Pharmaceuticals - 1.7% | |||
| MyoKardia, Inc. (a) | 45,730 | 2,259 | |
| Nektar Therapeutics (a) | 146,600 | 12,265 | |
| Theravance Biopharma, Inc. (a)(b) | 186,478 | 4,489 | |
| 19,013 | |||
| TOTAL HEALTH CARE | 186,415 | ||
| INDUSTRIALS - 15.1% | |||
| Aerospace & Defense - 1.4% | |||
| Moog, Inc. Class A | 109,262 | 8,956 | |
| Teledyne Technologies, Inc. (a) | 40,051 | 7,493 | |
| 16,449 | |||
| Air Freight & Logistics - 0.5% | |||
| Air Transport Services Group, Inc. (a) | 263,497 | 5,333 | |
| Airlines - 0.4% | |||
| JetBlue Airways Corp. (a) | 261,380 | 5,016 | |
| Building Products - 1.1% | |||
| Allegion PLC | 60,910 | 4,701 | |
| GCP Applied Technologies, Inc. (a) | 95,200 | 2,727 | |
| Simpson Manufacturing Co. Ltd. | 98,320 | 5,376 | |
| 12,804 | |||
| Commercial Services & Supplies - 1.4% | |||
| Deluxe Corp. | 118,460 | 8,119 | |
| Interface, Inc. | 332,680 | 7,319 | |
| 15,438 | |||
| Construction & Engineering - 3.1% | |||
| Comfort Systems U.S.A., Inc. | 200,851 | 8,476 | |
| EMCOR Group, Inc. | 147,980 | 10,890 | |
| Jacobs Engineering Group, Inc. | 76,820 | 4,462 | |
| KBR, Inc. | 259,922 | 4,338 | |
| Valmont Industries, Inc. | 51,460 | 7,312 | |
| 35,478 | |||
| Industrial Conglomerates - 0.8% | |||
| ITT, Inc. | 174,340 | 8,523 | |
| Machinery - 2.3% | |||
| AGCO Corp. | 73,560 | 4,611 | |
| John Bean Technologies Corp. | 77,800 | 8,383 | |
| SPX Flow, Inc. (a) | 161,409 | 7,263 | |
| Standex International Corp. | 63,170 | 6,124 | |
| 26,381 | |||
| Road & Rail - 0.6% | |||
| Landstar System, Inc. | 61,550 | 6,257 | |
| Trading Companies & Distributors - 3.5% | |||
| Kaman Corp. | 149,150 | 9,044 | |
| MRC Global, Inc. (a) | 376,180 | 7,046 | |
| SiteOne Landscape Supply, Inc. (a) | 106,780 | 7,314 | |
| Titan Machinery, Inc. (a) | 197,180 | 3,810 | |
| Watsco, Inc. | 38,470 | 6,441 | |
| WESCO International, Inc. (a) | 102,680 | 6,115 | |
| 39,770 | |||
| TOTAL INDUSTRIALS | 171,449 | ||
| INFORMATION TECHNOLOGY - 18.0% | |||
| Electronic Equipment & Components - 2.5% | |||
| ePlus, Inc. (a) | 83,752 | 6,688 | |
| Orbotech Ltd. (a) | 65,812 | 3,845 | |
| Plexus Corp. (a) | 135,600 | 7,436 | |
| Tech Data Corp. (a) | 52,168 | 3,978 | |
| TTM Technologies, Inc. (a) | 509,684 | 7,105 | |
| 29,052 | |||
| Internet Software & Services - 4.0% | |||
| 2U, Inc. (a) | 120,100 | 9,667 | |
| BlackLine, Inc. (a) | 132,967 | 5,505 | |
| Carbonite, Inc. (a) | 104,188 | 3,240 | |
| Five9, Inc. (a) | 313,700 | 9,213 | |
| j2 Global, Inc. | 116,400 | 9,240 | |
| New Relic, Inc. (a) | 126,000 | 8,806 | |
| 45,671 | |||
| IT Services - 3.9% | |||
| Amdocs Ltd. | 50,200 | 3,376 | |
| EPAM Systems, Inc. (a) | 103,684 | 11,856 | |
| ExlService Holdings, Inc. (a) | 89,591 | 5,179 | |
| Interxion Holding N.V. (a) | 105,800 | 6,879 | |
| Maximus, Inc. | 153,900 | 10,408 | |
| Science Applications International Corp. | 77,375 | 6,638 | |
| 44,336 | |||
| Semiconductors & Semiconductor Equipment - 3.8% | |||
| Diodes, Inc. (a) | 220,700 | 6,301 | |
| Entegris, Inc. | 279,000 | 8,984 | |
| Integrated Device Technology, Inc. (a) | 346,200 | 9,635 | |
| Nanometrics, Inc. (a) | 204,100 | 5,066 | |
| ON Semiconductor Corp. (a) | 236,600 | 5,224 | |
| Semtech Corp. (a) | 194,500 | 7,644 | |
| 42,854 | |||
| Software - 3.8% | |||
| Everbridge, Inc. (a) | 171,500 | 6,406 | |
| Paycom Software, Inc. (a)(b) | 100,100 | 11,432 | |
| RealPage, Inc. (a) | 195,200 | 10,443 | |
| RingCentral, Inc. (a) | 215,400 | 14,443 | |
| 42,724 | |||
| TOTAL INFORMATION TECHNOLOGY | 204,637 | ||
| MATERIALS - 4.2% | |||
| Chemicals - 2.0% | |||
| Chase Corp. | 61,215 | 6,856 | |
| Innospec, Inc. | 111,609 | 8,114 | |
| Trinseo SA | 65,569 | 4,783 | |
| Tronox Ltd. Class A | 139,885 | 2,403 | |
| 22,156 | |||
| Containers & Packaging - 1.2% | |||
| Berry Global Group, Inc. (a) | 80,000 | 4,400 | |
| Owens-Illinois, Inc. (a) | 189,300 | 3,848 | |
| Sonoco Products Co. | 109,301 | 5,614 | |
| 13,862 | |||
| Metals & Mining - 1.0% | |||
| B2Gold Corp. (a) | 1,474,317 | 4,237 | |
| Steel Dynamics, Inc. | 163,000 | 7,304 | |
| 11,541 | |||
| TOTAL MATERIALS | 47,559 | ||
| REAL ESTATE - 6.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 6.5% | |||
| Americold Realty Trust | 398,700 | 8,217 | |
| CareTrust (REIT), Inc. | 67,510 | 892 | |
| CoreSite Realty Corp. | 90,997 | 9,473 | |
| Corporate Office Properties Trust (SBI) | 227,000 | 6,245 | |
| Equity Lifestyle Properties, Inc. | 113,700 | 10,137 | |
| Four Corners Property Trust, Inc. | 377,213 | 8,548 | |
| Rexford Industrial Realty, Inc. | 318,900 | 9,742 | |
| Store Capital Corp. | 373,615 | 9,426 | |
| Terreno Realty Corp. | 315,200 | 11,710 | |
| 74,390 | |||
| TELECOMMUNICATION SERVICES - 0.1% | |||
| Diversified Telecommunication Services - 0.1% | |||
| Cogent Communications Group, Inc. | 16,650 | 785 | |
| UTILITIES - 3.2% | |||
| Electric Utilities - 1.9% | |||
| El Paso Electric Co. | 93,620 | 4,779 | |
| Hawaiian Electric Industries, Inc. | 67,400 | 2,338 | |
| IDACORP, Inc. | 74,200 | 6,901 | |
| Portland General Electric Co. | 97,068 | 4,123 | |
| Vistra Energy Corp. (a) | 169,000 | 3,862 | |
| 22,003 | |||
| Gas Utilities - 1.3% | |||
| Atmos Energy Corp. | 34,838 | 3,027 | |
| China Resource Gas Group Ltd. | 657,700 | 2,419 | |
| Southwest Gas Holdings, Inc. | 57,000 | 4,160 | |
| Spire, Inc. | 69,691 | 5,028 | |
| 14,634 | |||
| TOTAL UTILITIES | 36,637 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $888,340) | 1,144,157 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.7% | |||
| U.S. Treasury Bills, yield at date of purchase 1.48% to 1.74% 5/10/18 to 7/12/18 | |||
| (Cost $8,651) | 8,680 | 8,651 | |
| Shares | Value (000s) | ||
| Money Market Funds - 1.4% | |||
| Fidelity Cash Central Fund, 1.74% (d) | 2,936,759 | $2,937 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (d)(e) | 12,652,105 | 12,653 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $15,590) | 15,590 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.9% | |||
| (Cost $912,581) | 1,168,398 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.9)% | (33,243) | ||
| NET ASSETS - 100% | $1,135,155 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $727,000 or 0.1% of net assets.
(d) Affiliated fund that is generally 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.
(e) Investment made with cash collateral received from securities on loan.
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 | $273 |
| Fidelity Securities Lending Cash Central Fund | 82 |
| Total | $355 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $139,539 | $139,539 | $-- | $-- |
| Consumer Staples | 25,943 | 25,943 | -- | -- |
| Energy | 48,387 | 48,387 | -- | -- |
| Financials | 208,416 | 208,416 | -- | -- |
| Health Care | 186,415 | 183,868 | 2,547 | -- |
| Industrials | 171,449 | 171,449 | -- | -- |
| Information Technology | 204,637 | 204,637 | -- | -- |
| Materials | 47,559 | 47,559 | -- | -- |
| Real Estate | 74,390 | 74,390 | -- | -- |
| Telecommunication Services | 785 | 785 | -- | -- |
| Utilities | 36,637 | 34,218 | 2,419 | -- |
| U.S. Government and Government Agency Obligations | 8,651 | -- | 8,651 | -- |
| Money Market Funds | 15,590 | 15,590 | -- | -- |
| Total Investments in Securities: | $1,168,398 | $1,154,781 | $13,617 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $12,353) — See accompanying schedule: Unaffiliated issuers (cost $896,991) | $1,152,808 | |
| Fidelity Central Funds (cost $15,590) | 15,590 | |
| Total Investment in Securities (cost $912,581) | $1,168,398 | |
| Receivable for investments sold | 5,796 | |
| Receivable for fund shares sold | 345 | |
| Dividends receivable | 94 | |
| Distributions receivable from Fidelity Central Funds | 91 | |
| Prepaid expenses | 1 | |
| Other receivables | 31 | |
| Total assets | 1,174,756 | |
| Liabilities | ||
| Payable to custodian bank | $2,805 | |
| Payable for investments purchased | 5,614 | |
| Payable for fund shares redeemed | 12,063 | |
| Accrued management fee | 556 | |
| Distribution and service plan fees payable | 8 | |
| Notes payable to affiliates | 5,580 | |
| Other affiliated payables | 277 | |
| Other payables and accrued expenses | 48 | |
| Collateral on securities loaned | 12,650 | |
| Total liabilities | 39,601 | |
| Net Assets | $1,135,155 | |
| Net Assets consist of: | ||
| Paid in capital | $771,954 | |
| Distributions in excess of net investment income | (1,655) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 109,039 | |
| Net unrealized appreciation (depreciation) on investments | 255,817 | |
| Net Assets | $1,135,155 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($15,109 ÷ 574.262 shares) | $26.31 | |
| Maximum offering price per share (100/94.25 of $26.31) | $27.92 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($3,051 ÷ 119.130 shares) | $25.61 | |
| Maximum offering price per share (100/96.50 of $25.61) | $26.54 | |
| Class C: | ||
| Net Asset Value and offering price per share ($4,632 ÷ 191.237 shares)(a) | $24.22 | |
| Stock Selector Small Cap: | ||
| Net Asset Value, offering price and redemption price per share ($1,070,408 ÷ 39,892.348 shares) | $26.83 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($41,270 ÷ 1,533.451 shares) | $26.91 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($685 ÷ 25.452 shares) | $26.91 |
(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.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $9,037 | |
| Income from Fidelity Central Funds | 355 | |
| Total income | 9,392 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $4,630 | |
| Performance adjustment | (717) | |
| Transfer agent fees | 1,435 | |
| Distribution and service plan fees | 49 | |
| Accounting and security lending fees | 247 | |
| Custodian fees and expenses | 30 | |
| Independent trustees' fees and expenses | 3 | |
| Registration fees | 87 | |
| Audit | 30 | |
| Legal | 6 | |
| Interest | 5 | |
| Miscellaneous | 4 | |
| Total expenses before reductions | 5,809 | |
| Expense reductions | (58) | 5,751 |
| Net investment income (loss) | 3,641 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 108,679 | |
| Fidelity Central Funds | 2 | |
| Foreign currency transactions | 1 | |
| Futures contracts | 206 | |
| Total net realized gain (loss) | 108,888 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (56,698) | |
| Fidelity Central Funds | (4) | |
| Assets and liabilities in foreign currencies | (1) | |
| Total change in net unrealized appreciation (depreciation) | (56,703) | |
| Net gain (loss) | 52,185 | |
| Net increase (decrease) in net assets resulting from operations | $55,826 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,641 | $4,689 |
| Net realized gain (loss) | 108,888 | 159,688 |
| Change in net unrealized appreciation (depreciation) | (56,703) | 136,289 |
| Net increase (decrease) in net assets resulting from operations | 55,826 | 300,666 |
| Distributions to shareholders from net investment income | (6,116) | (7,120) |
| Distributions to shareholders from net realized gain | (145,265) | (17,708) |
| Total distributions | (151,381) | (24,828) |
| Share transactions - net increase (decrease) | (346,075) | (119,619) |
| Redemption fees | 10 | 78 |
| Total increase (decrease) in net assets | (441,620) | 156,297 |
| Net Assets | ||
| Beginning of period | 1,576,775 | 1,420,478 |
| End of period | $1,135,155 | $1,576,775 |
| Other Information | ||
| Undistributed net investment income end of period | $– | $820 |
| Distributions in excess of net investment income end of period | $(1,655) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Stock Selector Small Cap Fund Class A
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.16 | $23.48 | $24.48 | $25.76 | $25.32 | $19.40 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .03 | –B | .05 | .06 | .01 | (.02) |
| Net realized and unrealized gain (loss) | .81 | 5.05 | .52 | .96 | 1.68 | 5.98 |
| Total from investment operations | .84 | 5.05 | .57 | 1.02 | 1.69 | 5.96 |
| Distributions from net investment income | (.03) | (.07) | (.05) | (.03) | –B | (.04) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.25) | (.01) |
| Total distributions | (2.69)C | (.37) | (1.57) | (2.30) | (1.25) | (.04)D |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $26.31 | $28.16 | $23.48 | $24.48 | $25.76 | $25.32 |
| Total ReturnE,F,G | 3.18% | 21.62% | 2.30% | 4.19% | 6.83% | 30.81% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | 1.02%J | 1.05% | 1.16% | 1.01% | .99% | 1.22% |
| Expenses net of fee waivers, if any | 1.02%J | 1.04% | 1.16% | 1.01% | .99% | 1.22% |
| Expenses net of all reductions | 1.01%J | 1.04% | 1.15% | 1.00% | .99% | 1.20% |
| Net investment income (loss) | .19 %J | .02% | .22% | .24% | .06% | (.09)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $15 | $14 | $12 | $11 | $10 | $8 |
| Portfolio turnover rateK | 45%J | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $2.69 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $2.651 per share.
D Total distributions of $.04 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.007 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class M
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $27.49 | $22.95 | $24.00 | $25.30 | $24.97 | $19.15 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | (.02) | (.08) | (.03) | (.03) | (.07) | (.08) |
| Net realized and unrealized gain (loss) | .79 | 4.92 | .50 | .97 | 1.65 | 5.90 |
| Total from investment operations | .77 | 4.84 | .47 | .94 | 1.58 | 5.82 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.24) | (1.25) | – |
| Total distributions | (2.65) | (.30) | (1.52) | (2.24) | (1.25) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $25.61 | $27.49 | $22.95 | $24.00 | $25.30 | $24.97 |
| Total ReturnC,D,E | 3.01% | 21.20% | 1.89% | 3.90% | 6.46% | 30.39% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | 1.39%H | 1.39% | 1.51% | 1.35% | 1.32% | 1.51% |
| Expenses net of fee waivers, if any | 1.39%H | 1.39% | 1.51% | 1.35% | 1.32% | 1.51% |
| Expenses net of all reductions | 1.38%H | 1.39% | 1.50% | 1.34% | 1.31% | 1.49% |
| Net investment income (loss) | (.18)%H | (.33)% | (.13)% | (.10)% | (.27)% | (.38)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $3 | $3 | $3 | $3 | $3 | $2 |
| Portfolio turnover rateI | 45%H | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class C
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $26.20 | $21.99 | $23.16 | $24.49 | $24.32 | $18.73 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | (.08) | (.20) | (.13) | (.14) | (.18) | (.19) |
| Net realized and unrealized gain (loss) | .75 | 4.71 | .48 | .93 | 1.60 | 5.78 |
| Total from investment operations | .67 | 4.51 | .35 | .79 | 1.42 | 5.59 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.12) | (1.25) | – |
| Total distributions | (2.65) | (.30) | (1.52) | (2.12) | (1.25) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $24.22 | $26.20 | $21.99 | $23.16 | $24.49 | $24.32 |
| Total ReturnC,D,E | 2.76% | 20.62% | 1.41% | 3.36% | 5.95% | 29.85% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | 1.85%H | 1.87% | 1.98% | 1.84% | 1.79% | 1.98% |
| Expenses net of fee waivers, if any | 1.85%H | 1.87% | 1.98% | 1.84% | 1.79% | 1.98% |
| Expenses net of all reductions | 1.85%H | 1.86% | 1.97% | 1.83% | 1.79% | 1.96% |
| Net investment income (loss) | (.65)%H | (.81)% | (.60)% | (.59)% | (.74)% | (.85)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $5 | $5 | $3 | $4 | $4 | $3 |
| Portfolio turnover rateI | 45%H | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.71 | $23.91 | $24.89 | $26.15 | $25.64 | $19.65 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .06 | .08 | .11 | .12 | .08 | .04 |
| Net realized and unrealized gain (loss) | .82 | 5.15 | .54 | .98 | 1.70 | 6.06 |
| Total from investment operations | .88 | 5.23 | .65 | 1.10 | 1.78 | 6.10 |
| Distributions from net investment income | (.11) | (.12) | (.11) | (.09) | (.01)B | (.10) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.26)B | (.01) |
| Total distributions | (2.76) | (.43)C | (1.63) | (2.36) | (1.27) | (.11) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $26.83 | $28.71 | $23.91 | $24.89 | $26.15 | $25.64 |
| Total ReturnE,F | 3.31% | 22.00% | 2.57% | 4.46% | 7.08% | 31.20% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .74%I | .75% | .89% | .77% | .73% | .94% |
| Expenses net of fee waivers, if any | .73%I | .75% | .89% | .77% | .73% | .93% |
| Expenses net of all reductions | .73%I | .74% | .88% | .76% | .72% | .91% |
| Net investment income (loss) | .47%I | .31% | .49% | .48% | .32% | .20% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,070 | $1,511 | $1,359 | $1,372 | $1,406 | $1,487 |
| Portfolio turnover rateJ | 45%I | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $.43 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $.303 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class I
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.78 | $23.97 | $24.96 | $26.21 | $25.69 | $19.72 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .06 | .08 | .12 | .13 | .09 | .05 |
| Net realized and unrealized gain (loss) | .83 | 5.15 | .53 | .99 | 1.70 | 6.06 |
| Total from investment operations | .89 | 5.23 | .65 | 1.12 | 1.79 | 6.11 |
| Distributions from net investment income | (.11) | (.12) | (.12) | (.10) | (.01)B | (.14) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.26)B | (.01) |
| Total distributions | (2.76) | (.42) | (1.64) | (2.37) | (1.27) | (.14)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $26.91 | $28.78 | $23.97 | $24.96 | $26.21 | $25.69 |
| Total ReturnE,F | 3.32% | 21.97% | 2.55% | 4.52% | 7.11% | 31.22% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .74%I | .75% | .87% | .74% | .70% | .91% |
| Expenses net of fee waivers, if any | .74%I | .75% | .87% | .73% | .70% | .91% |
| Expenses net of all reductions | .73%I | .75% | .87% | .73% | .70% | .89% |
| Net investment income (loss) | .47%I | .31% | .50% | .51% | .35% | .22% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $41 | $43 | $43 | $46 | $51 | $56 |
| Portfolio turnover rateJ | 45%I | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $.14 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.007 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class Z
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |
| 2018 | 2017 A | |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $28.81 | $26.36 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .08 | .07 |
| Net realized and unrealized gain (loss) | .83 | 2.38 |
| Total from investment operations | .91 | 2.45 |
| Distributions from net investment income | (.16) | – |
| Distributions from net realized gain | (2.65) | – |
| Total distributions | (2.81) | – |
| Redemption fees added to paid in capitalB,C | – | – |
| Net asset value, end of period | $26.91 | $28.81 |
| Total ReturnD,E | 3.40% | 9.29% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .60%H | .62%H |
| Expenses net of fee waivers, if any | .60%H | .61%H |
| Expenses net of all reductions | .59%H | .61%H |
| Net investment income (loss) | .61%H | .34%H |
| Supplemental Data | ||
| Net assets, end of period (in millions) | $1 | $1 |
| Portfolio turnover rateI | 45%H | 62% |
A For the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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 M, Class C, Stock Selector Small Cap, Class I and Class Z 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $277,585 |
| Gross unrealized depreciation | (22,583) |
| Net unrealized appreciation (depreciation) | $255,002 |
| Tax cost | $913,396 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $334,467 and $790,304, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .50% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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% | $18 | $1 |
| Class M(a) | .25% | .25% | 8 | – |
| Class C | .75% | .25% | 23 | 2 |
| $49 | $3 |
(a) In the amount of less than five-hundred dollars
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $7 |
| Class M | 1 |
| Class C(a) | – |
| $8 |
(a) In the amount of less than five-hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class Z. FIIOC receives an asset-based fee of Class Z'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 Class-Level Average Net Assets(a) | |
| Class A | $16 | .22 |
| Class M | 5 | .33 |
| Class C | 7 | .30 |
| Stock Selector Small Cap | 1,367 | .18 |
| Class I | 40 | .19 |
| Class Z | –(b) | .05 |
| $1,435 |
(a) Annualized
(b) In the amount of less than five-hundred dollars
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $23 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 Fidelity Management & Research Company (FMR) or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $12,184 | 1.94% | $5 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. The value of securities loaned to FCM at period end was $706. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $82, including $18 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $50 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Class A | $17 | $34 |
| Stock Selector Small Cap | 5,933 | 6,885 |
| Class I | 163 | 201 |
| Class Z | 3 | – |
| Total | $6,116 | $7,120 |
| From net realized gain | ||
| Class A | $1,328 | $156 |
| Class M | 291 | 34 |
| Class C | 453 | 55 |
| Stock Selector Small Cap | 139,167 | 16,959 |
| Class I | 3,970 | 504 |
| Class Z | 56 | – |
| Total | $145,265 | $17,708 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017(a) | Six months ended April 30, 2018 | Year ended October 31, 2017(a) | |
| Class A | ||||
| Shares sold | 62 | 118 | $1,634 | $3,090 |
| Reinvestment of distributions | 52 | 7 | 1,339 | 186 |
| Shares redeemed | (39) | (125) | (1,034) | (3,277) |
| Net increase (decrease) | 75 | – | $1,939 | $(1) |
| Class M | ||||
| Shares sold | 11 | 46 | $298 | $1,150 |
| Reinvestment of distributions | 11 | 1 | 281 | 33 |
| Shares redeemed | (18) | (47) | (485) | (1,187) |
| Net increase (decrease) | 4 | – | $94 | $(4) |
| Class C | ||||
| Shares sold | 21 | 80 | $528 | $1,940 |
| Reinvestment of distributions | 19 | 2 | 447 | 53 |
| Shares redeemed | (24) | (65) | (600) | (1,593) |
| Net increase (decrease) | 16 | 17 | $375 | $400 |
| Stock Selector Small Cap | ||||
| Shares sold | 19,274 | 6,895 | $520,892 | $183,697 |
| Reinvestment of distributions | 5,410 | 876 | 141,745 | 23,306 |
| Shares redeemed | (37,436) | (11,988) | (1,012,153) | (319,370) |
| Net increase (decrease) | (12,752) | (4,217) | $(349,516) | $(112,367) |
| Class I | ||||
| Shares sold | 180 | 214 | $4,846 | $5,746 |
| Reinvestment of distributions | 157 | 26 | 4,120 | 702 |
| Shares redeemed | (300) | (549) | (8,004) | (14,715) |
| Net increase (decrease) | 37 | (309) | $962 | $(8,267) |
| Class Z | ||||
| Shares sold | 6 | 26 | $198 | $706 |
| Reinvestment of distributions | 2 | – | 51 | – |
| Shares redeemed | (6) | (3) | (178) | (86) |
| Net increase (decrease) | 2 | 23 | $71 | $620 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Class A | 1.02% | |||
| Actual | $1,000.00 | $1,031.80 | $5.14 | |
| Hypothetical-C | $1,000.00 | $1,019.74 | $5.11 | |
| Class M | 1.39% | |||
| Actual | $1,000.00 | $1,030.10 | $7.00 | |
| Hypothetical-C | $1,000.00 | $1,017.90 | $6.95 | |
| Class C | 1.85% | |||
| Actual | $1,000.00 | $1,027.60 | $9.30 | |
| Hypothetical-C | $1,000.00 | $1,015.62 | $9.25 | |
| Stock Selector Small Cap | .73% | |||
| Actual | $1,000.00 | $1,033.10 | $3.68 | |
| Hypothetical-C | $1,000.00 | $1,021.17 | $3.66 | |
| Class I | .74% | |||
| Actual | $1,000.00 | $1,033.20 | $3.73 | |
| Hypothetical-C | $1,000.00 | $1,021.12 | $3.71 | |
| Class Z | .60% | |||
| Actual | $1,000.00 | $1,034.00 | $3.03 | |
| Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
ASCS-SANN-0618
1.843154.110
Fidelity® Stock Selector Small Cap Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| RingCentral, Inc. | 1.3 |
| Nektar Therapeutics | 1.1 |
| Wintrust Financial Corp. | 1.1 |
| EPAM Systems, Inc. | 1.0 |
| Terreno Realty Corp. | 1.0 |
| Primerica, Inc. | 1.0 |
| Paycom Software, Inc. | 1.0 |
| bluebird bio, Inc. | 1.0 |
| EMCOR Group, Inc. | 1.0 |
| Cullen/Frost Bankers, Inc. | 0.9 |
| 10.4 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Financials | 18.4 |
| Information Technology | 18.0 |
| Health Care | 16.4 |
| Industrials | 15.1 |
| Consumer Discretionary | 12.3 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018 * | ||
| Stocks | 100.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) | (0.8)% | |
* Foreign investments - 8.4%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 100.8% | |||
| Shares | Value (000s) | ||
| CONSUMER DISCRETIONARY - 12.3% | |||
| Auto Components - 0.6% | |||
| Fox Factory Holding Corp. (a) | 99,600 | $3,312 | |
| Standard Motor Products, Inc. | 69,002 | 3,129 | |
| 6,441 | |||
| Hotels, Restaurants & Leisure - 2.8% | |||
| Bluegreen Vacations Corp. (b) | 211,400 | 4,919 | |
| Cedar Fair LP (depositary unit) | 71,971 | 4,875 | |
| Eldorado Resorts, Inc. (a) | 175,200 | 7,096 | |
| Marriott Vacations Worldwide Corp. | 59,800 | 7,332 | |
| Texas Roadhouse, Inc. Class A | 117,700 | 7,542 | |
| 31,764 | |||
| Household Durables - 2.5% | |||
| Cavco Industries, Inc. (a) | 37,000 | 6,303 | |
| Taylor Morrison Home Corp. (a) | 304,500 | 7,235 | |
| TopBuild Corp. (a) | 103,500 | 8,249 | |
| TRI Pointe Homes, Inc. (a) | 411,900 | 7,048 | |
| 28,835 | |||
| Leisure Products - 0.8% | |||
| Brunswick Corp. | 94,796 | 5,676 | |
| Johnson Outdoors, Inc. Class A | 57,533 | 3,726 | |
| 9,402 | |||
| Media - 0.7% | |||
| Cinemark Holdings, Inc. | 145,900 | 5,715 | |
| Lions Gate Entertainment Corp. Class B | 115,000 | 2,647 | |
| 8,362 | |||
| Multiline Retail - 0.7% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 119,500 | 7,433 | |
| Specialty Retail - 2.2% | |||
| Burlington Stores, Inc. (a) | 43,700 | 5,937 | |
| Monro, Inc. | 116,600 | 6,524 | |
| Murphy U.S.A., Inc. (a) | 83,700 | 5,237 | |
| The Children's Place Retail Stores, Inc. | 53,900 | 6,875 | |
| 24,573 | |||
| Textiles, Apparel & Luxury Goods - 2.0% | |||
| Deckers Outdoor Corp. (a) | 68,400 | 6,379 | |
| Emerald Expositions Events, Inc. | 153,400 | 2,956 | |
| Steven Madden Ltd. | 162,159 | 7,824 | |
| Wolverine World Wide, Inc. | 185,900 | 5,570 | |
| 22,729 | |||
| TOTAL CONSUMER DISCRETIONARY | 139,539 | ||
| CONSUMER STAPLES - 2.3% | |||
| Beverages - 0.2% | |||
| Cott Corp. | 135,300 | 1,935 | |
| Food & Staples Retailing - 0.3% | |||
| Performance Food Group Co. (a) | 114,775 | 3,724 | |
| Food Products - 1.1% | |||
| Cranswick PLC | 65,700 | 2,636 | |
| Ingredion, Inc. | 24,800 | 3,003 | |
| J&J Snack Foods Corp. | 29,375 | 4,036 | |
| Lamb Weston Holdings, Inc. | 48,200 | 3,148 | |
| 12,823 | |||
| Household Products - 0.4% | |||
| Central Garden & Pet Co. Class A (non-vtg.) (a) | 109,200 | 3,877 | |
| Personal Products - 0.3% | |||
| Inter Parfums, Inc. | 70,000 | 3,584 | |
| TOTAL CONSUMER STAPLES | 25,943 | ||
| ENERGY - 4.3% | |||
| Energy Equipment & Services - 1.1% | |||
| Nabors Industries Ltd. | 554,600 | 4,221 | |
| Rowan Companies PLC (a) | 285,840 | 4,128 | |
| Total Energy Services, Inc. | 419,493 | 4,450 | |
| 12,799 | |||
| Oil, Gas & Consumable Fuels - 3.2% | |||
| Boardwalk Pipeline Partners, LP | 275,508 | 3,133 | |
| Delek U.S. Holdings, Inc. | 183,900 | 8,711 | |
| Diamondback Energy, Inc. (a) | 43,307 | 5,563 | |
| Newfield Exploration Co. (a) | 124,988 | 3,725 | |
| PDC Energy, Inc. (a) | 106,300 | 5,691 | |
| WPX Energy, Inc. (a) | 512,890 | 8,765 | |
| 35,588 | |||
| TOTAL ENERGY | 48,387 | ||
| FINANCIALS - 18.4% | |||
| Banks - 11.2% | |||
| Associated Banc-Corp. | 332,723 | 8,801 | |
| BancFirst Corp. | 180,456 | 10,313 | |
| Banner Corp. | 91,429 | 5,248 | |
| Boston Private Financial Holdings, Inc. | 311,327 | 4,997 | |
| City Holding Co. | 110,700 | 7,924 | |
| Columbia Banking Systems, Inc. | 228,200 | 9,176 | |
| Cullen/Frost Bankers, Inc. | 92,400 | 10,575 | |
| CVB Financial Corp. | 328,800 | 7,283 | |
| First Merchants Corp. | 189,237 | 8,152 | |
| Heartland Financial U.S.A., Inc. | 164,821 | 8,843 | |
| Independent Bank Corp., Massachusetts | 113,542 | 8,209 | |
| Preferred Bank, Los Angeles | 87,000 | 5,545 | |
| Stock Yards Bancorp, Inc. | 39,216 | 1,469 | |
| Tompkins Financial Corp. | 30,284 | 2,353 | |
| Trico Bancshares | 245,100 | 9,159 | |
| WesBanco, Inc. | 166,200 | 7,280 | |
| Wintrust Financial Corp. | 133,900 | 11,977 | |
| 127,304 | |||
| Capital Markets - 1.7% | |||
| Hamilton Lane, Inc. Class A | 101,543 | 4,250 | |
| OM Asset Management Ltd. | 542,710 | 8,233 | |
| PJT Partners, Inc. | 126,400 | 7,014 | |
| 19,497 | |||
| Diversified Financial Services - 0.3% | |||
| Cotiviti Holdings, Inc. (a) | 102,800 | 3,551 | |
| Insurance - 2.5% | |||
| Employers Holdings, Inc. | 186,686 | 7,635 | |
| First American Financial Corp. | 157,600 | 8,055 | |
| James River Group Holdings Ltd. | 9,958 | 362 | |
| Primerica, Inc. | 120,600 | 11,668 | |
| 27,720 | |||
| Thrifts & Mortgage Finance - 2.7% | |||
| Beneficial Bancorp, Inc. | 298,580 | 4,732 | |
| Meridian Bancorp, Inc. Maryland | 465,400 | 8,796 | |
| Washington Federal, Inc. | 239,063 | 7,590 | |
| WSFS Financial Corp. | 184,142 | 9,226 | |
| 30,344 | |||
| TOTAL FINANCIALS | 208,416 | ||
| HEALTH CARE - 16.4% | |||
| Biotechnology - 9.2% | |||
| Abeona Therapeutics, Inc. (a)(b) | 133,673 | 2,333 | |
| ACADIA Pharmaceuticals, Inc. (a) | 107,652 | 1,702 | |
| Acorda Therapeutics, Inc. (a) | 187,300 | 4,327 | |
| Agios Pharmaceuticals, Inc. (a) | 66,715 | 5,598 | |
| Amarin Corp. PLC ADR (a)(b) | 408,500 | 1,123 | |
| AnaptysBio, Inc. (a) | 63,000 | 5,908 | |
| Apellis Pharmaceuticals, Inc. (a) | 6,300 | 152 | |
| Argenx SE ADR | 41,331 | 3,621 | |
| Ascendis Pharma A/S sponsored ADR (a) | 75,306 | 4,745 | |
| Atara Biotherapeutics, Inc. (a) | 62,600 | 2,526 | |
| Audentes Therapeutics, Inc. (a) | 92,600 | 3,460 | |
| bluebird bio, Inc. (a) | 64,728 | 11,013 | |
| Cellectis SA sponsored ADR (a) | 124,900 | 3,585 | |
| CytomX Therapeutics, Inc. (a) | 83,605 | 2,199 | |
| CytomX Therapeutics, Inc. (a)(c) | 27,627 | 727 | |
| FibroGen, Inc. (a) | 65,900 | 2,995 | |
| Heron Therapeutics, Inc. (a) | 155,100 | 4,700 | |
| Insmed, Inc. (a) | 239,465 | 5,826 | |
| Intercept Pharmaceuticals, Inc. (a) | 45,503 | 3,095 | |
| Ionis Pharmaceuticals, Inc. (a) | 76,128 | 3,276 | |
| Kura Oncology, Inc. (a) | 66,598 | 1,009 | |
| La Jolla Pharmaceutical Co. (a) | 110,800 | 3,215 | |
| Loxo Oncology, Inc. (a) | 22,200 | 2,795 | |
| Mirati Therapeutics, Inc. (a) | 85,600 | 2,636 | |
| Neurocrine Biosciences, Inc. (a) | 89,741 | 7,276 | |
| Protagonist Therapeutics, Inc. (a) | 173,100 | 1,496 | |
| Sage Therapeutics, Inc. (a) | 29,900 | 4,303 | |
| Sarepta Therapeutics, Inc. (a) | 10,200 | 779 | |
| Sienna Biopharmaceuticals, Inc. (b) | 38,984 | 748 | |
| Spark Therapeutics, Inc. (a) | 68,200 | 5,205 | |
| TESARO, Inc. (a) | 51,000 | 2,596 | |
| 104,969 | |||
| Health Care Equipment & Supplies - 2.4% | |||
| Cantel Medical Corp. | 66,600 | 7,464 | |
| Integra LifeSciences Holdings Corp. (a) | 89,812 | 5,535 | |
| iRhythm Technologies, Inc. (a) | 82,400 | 4,792 | |
| Masimo Corp. (a) | 31,966 | 2,868 | |
| Nanosonics Ltd. (a) | 1,414,191 | 2,547 | |
| Steris PLC | 49,700 | 4,698 | |
| 27,904 | |||
| Health Care Providers & Services - 2.2% | |||
| G1 Therapeutics, Inc. | 170,400 | 6,535 | |
| Magellan Health Services, Inc. (a) | 88,852 | 7,450 | |
| Molina Healthcare, Inc. (a) | 82,500 | 6,868 | |
| NMC Health PLC | 74,600 | 3,664 | |
| 24,517 | |||
| Health Care Technology - 0.3% | |||
| Veeva Systems, Inc. Class A (a) | 44,300 | 3,107 | |
| Life Sciences Tools & Services - 0.6% | |||
| ICON PLC (a) | 58,700 | 6,905 | |
| Pharmaceuticals - 1.7% | |||
| MyoKardia, Inc. (a) | 45,730 | 2,259 | |
| Nektar Therapeutics (a) | 146,600 | 12,265 | |
| Theravance Biopharma, Inc. (a)(b) | 186,478 | 4,489 | |
| 19,013 | |||
| TOTAL HEALTH CARE | 186,415 | ||
| INDUSTRIALS - 15.1% | |||
| Aerospace & Defense - 1.4% | |||
| Moog, Inc. Class A | 109,262 | 8,956 | |
| Teledyne Technologies, Inc. (a) | 40,051 | 7,493 | |
| 16,449 | |||
| Air Freight & Logistics - 0.5% | |||
| Air Transport Services Group, Inc. (a) | 263,497 | 5,333 | |
| Airlines - 0.4% | |||
| JetBlue Airways Corp. (a) | 261,380 | 5,016 | |
| Building Products - 1.1% | |||
| Allegion PLC | 60,910 | 4,701 | |
| GCP Applied Technologies, Inc. (a) | 95,200 | 2,727 | |
| Simpson Manufacturing Co. Ltd. | 98,320 | 5,376 | |
| 12,804 | |||
| Commercial Services & Supplies - 1.4% | |||
| Deluxe Corp. | 118,460 | 8,119 | |
| Interface, Inc. | 332,680 | 7,319 | |
| 15,438 | |||
| Construction & Engineering - 3.1% | |||
| Comfort Systems U.S.A., Inc. | 200,851 | 8,476 | |
| EMCOR Group, Inc. | 147,980 | 10,890 | |
| Jacobs Engineering Group, Inc. | 76,820 | 4,462 | |
| KBR, Inc. | 259,922 | 4,338 | |
| Valmont Industries, Inc. | 51,460 | 7,312 | |
| 35,478 | |||
| Industrial Conglomerates - 0.8% | |||
| ITT, Inc. | 174,340 | 8,523 | |
| Machinery - 2.3% | |||
| AGCO Corp. | 73,560 | 4,611 | |
| John Bean Technologies Corp. | 77,800 | 8,383 | |
| SPX Flow, Inc. (a) | 161,409 | 7,263 | |
| Standex International Corp. | 63,170 | 6,124 | |
| 26,381 | |||
| Road & Rail - 0.6% | |||
| Landstar System, Inc. | 61,550 | 6,257 | |
| Trading Companies & Distributors - 3.5% | |||
| Kaman Corp. | 149,150 | 9,044 | |
| MRC Global, Inc. (a) | 376,180 | 7,046 | |
| SiteOne Landscape Supply, Inc. (a) | 106,780 | 7,314 | |
| Titan Machinery, Inc. (a) | 197,180 | 3,810 | |
| Watsco, Inc. | 38,470 | 6,441 | |
| WESCO International, Inc. (a) | 102,680 | 6,115 | |
| 39,770 | |||
| TOTAL INDUSTRIALS | 171,449 | ||
| INFORMATION TECHNOLOGY - 18.0% | |||
| Electronic Equipment & Components - 2.5% | |||
| ePlus, Inc. (a) | 83,752 | 6,688 | |
| Orbotech Ltd. (a) | 65,812 | 3,845 | |
| Plexus Corp. (a) | 135,600 | 7,436 | |
| Tech Data Corp. (a) | 52,168 | 3,978 | |
| TTM Technologies, Inc. (a) | 509,684 | 7,105 | |
| 29,052 | |||
| Internet Software & Services - 4.0% | |||
| 2U, Inc. (a) | 120,100 | 9,667 | |
| BlackLine, Inc. (a) | 132,967 | 5,505 | |
| Carbonite, Inc. (a) | 104,188 | 3,240 | |
| Five9, Inc. (a) | 313,700 | 9,213 | |
| j2 Global, Inc. | 116,400 | 9,240 | |
| New Relic, Inc. (a) | 126,000 | 8,806 | |
| 45,671 | |||
| IT Services - 3.9% | |||
| Amdocs Ltd. | 50,200 | 3,376 | |
| EPAM Systems, Inc. (a) | 103,684 | 11,856 | |
| ExlService Holdings, Inc. (a) | 89,591 | 5,179 | |
| Interxion Holding N.V. (a) | 105,800 | 6,879 | |
| Maximus, Inc. | 153,900 | 10,408 | |
| Science Applications International Corp. | 77,375 | 6,638 | |
| 44,336 | |||
| Semiconductors & Semiconductor Equipment - 3.8% | |||
| Diodes, Inc. (a) | 220,700 | 6,301 | |
| Entegris, Inc. | 279,000 | 8,984 | |
| Integrated Device Technology, Inc. (a) | 346,200 | 9,635 | |
| Nanometrics, Inc. (a) | 204,100 | 5,066 | |
| ON Semiconductor Corp. (a) | 236,600 | 5,224 | |
| Semtech Corp. (a) | 194,500 | 7,644 | |
| 42,854 | |||
| Software - 3.8% | |||
| Everbridge, Inc. (a) | 171,500 | 6,406 | |
| Paycom Software, Inc. (a)(b) | 100,100 | 11,432 | |
| RealPage, Inc. (a) | 195,200 | 10,443 | |
| RingCentral, Inc. (a) | 215,400 | 14,443 | |
| 42,724 | |||
| TOTAL INFORMATION TECHNOLOGY | 204,637 | ||
| MATERIALS - 4.2% | |||
| Chemicals - 2.0% | |||
| Chase Corp. | 61,215 | 6,856 | |
| Innospec, Inc. | 111,609 | 8,114 | |
| Trinseo SA | 65,569 | 4,783 | |
| Tronox Ltd. Class A | 139,885 | 2,403 | |
| 22,156 | |||
| Containers & Packaging - 1.2% | |||
| Berry Global Group, Inc. (a) | 80,000 | 4,400 | |
| Owens-Illinois, Inc. (a) | 189,300 | 3,848 | |
| Sonoco Products Co. | 109,301 | 5,614 | |
| 13,862 | |||
| Metals & Mining - 1.0% | |||
| B2Gold Corp. (a) | 1,474,317 | 4,237 | |
| Steel Dynamics, Inc. | 163,000 | 7,304 | |
| 11,541 | |||
| TOTAL MATERIALS | 47,559 | ||
| REAL ESTATE - 6.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 6.5% | |||
| Americold Realty Trust | 398,700 | 8,217 | |
| CareTrust (REIT), Inc. | 67,510 | 892 | |
| CoreSite Realty Corp. | 90,997 | 9,473 | |
| Corporate Office Properties Trust (SBI) | 227,000 | 6,245 | |
| Equity Lifestyle Properties, Inc. | 113,700 | 10,137 | |
| Four Corners Property Trust, Inc. | 377,213 | 8,548 | |
| Rexford Industrial Realty, Inc. | 318,900 | 9,742 | |
| Store Capital Corp. | 373,615 | 9,426 | |
| Terreno Realty Corp. | 315,200 | 11,710 | |
| 74,390 | |||
| TELECOMMUNICATION SERVICES - 0.1% | |||
| Diversified Telecommunication Services - 0.1% | |||
| Cogent Communications Group, Inc. | 16,650 | 785 | |
| UTILITIES - 3.2% | |||
| Electric Utilities - 1.9% | |||
| El Paso Electric Co. | 93,620 | 4,779 | |
| Hawaiian Electric Industries, Inc. | 67,400 | 2,338 | |
| IDACORP, Inc. | 74,200 | 6,901 | |
| Portland General Electric Co. | 97,068 | 4,123 | |
| Vistra Energy Corp. (a) | 169,000 | 3,862 | |
| 22,003 | |||
| Gas Utilities - 1.3% | |||
| Atmos Energy Corp. | 34,838 | 3,027 | |
| China Resource Gas Group Ltd. | 657,700 | 2,419 | |
| Southwest Gas Holdings, Inc. | 57,000 | 4,160 | |
| Spire, Inc. | 69,691 | 5,028 | |
| 14,634 | |||
| TOTAL UTILITIES | 36,637 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $888,340) | 1,144,157 | ||
| Principal Amount (000s) | Value (000s) | ||
| U.S. Treasury Obligations - 0.7% | |||
| U.S. Treasury Bills, yield at date of purchase 1.48% to 1.74% 5/10/18 to 7/12/18 | |||
| (Cost $8,651) | 8,680 | 8,651 | |
| Shares | Value (000s) | ||
| Money Market Funds - 1.4% | |||
| Fidelity Cash Central Fund, 1.74% (d) | 2,936,759 | $2,937 | |
| Fidelity Securities Lending Cash Central Fund 1.74% (d)(e) | 12,652,105 | 12,653 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $15,590) | 15,590 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.9% | |||
| (Cost $912,581) | 1,168,398 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.9)% | (33,243) | ||
| NET ASSETS - 100% | $1,135,155 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $727,000 or 0.1% of net assets.
(d) Affiliated fund that is generally 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.
(e) Investment made with cash collateral received from securities on loan.
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 | $273 |
| Fidelity Securities Lending Cash Central Fund | 82 |
| Total | $355 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $139,539 | $139,539 | $-- | $-- |
| Consumer Staples | 25,943 | 25,943 | -- | -- |
| Energy | 48,387 | 48,387 | -- | -- |
| Financials | 208,416 | 208,416 | -- | -- |
| Health Care | 186,415 | 183,868 | 2,547 | -- |
| Industrials | 171,449 | 171,449 | -- | -- |
| Information Technology | 204,637 | 204,637 | -- | -- |
| Materials | 47,559 | 47,559 | -- | -- |
| Real Estate | 74,390 | 74,390 | -- | -- |
| Telecommunication Services | 785 | 785 | -- | -- |
| Utilities | 36,637 | 34,218 | 2,419 | -- |
| U.S. Government and Government Agency Obligations | 8,651 | -- | 8,651 | -- |
| Money Market Funds | 15,590 | 15,590 | -- | -- |
| Total Investments in Securities: | $1,168,398 | $1,154,781 | $13,617 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | April 30, 2018 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $12,353) — See accompanying schedule: Unaffiliated issuers (cost $896,991) | $1,152,808 | |
| Fidelity Central Funds (cost $15,590) | 15,590 | |
| Total Investment in Securities (cost $912,581) | $1,168,398 | |
| Receivable for investments sold | 5,796 | |
| Receivable for fund shares sold | 345 | |
| Dividends receivable | 94 | |
| Distributions receivable from Fidelity Central Funds | 91 | |
| Prepaid expenses | 1 | |
| Other receivables | 31 | |
| Total assets | 1,174,756 | |
| Liabilities | ||
| Payable to custodian bank | $2,805 | |
| Payable for investments purchased | 5,614 | |
| Payable for fund shares redeemed | 12,063 | |
| Accrued management fee | 556 | |
| Distribution and service plan fees payable | 8 | |
| Notes payable to affiliates | 5,580 | |
| Other affiliated payables | 277 | |
| Other payables and accrued expenses | 48 | |
| Collateral on securities loaned | 12,650 | |
| Total liabilities | 39,601 | |
| Net Assets | $1,135,155 | |
| Net Assets consist of: | ||
| Paid in capital | $771,954 | |
| Distributions in excess of net investment income | (1,655) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 109,039 | |
| Net unrealized appreciation (depreciation) on investments | 255,817 | |
| Net Assets | $1,135,155 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($15,109 ÷ 574.262 shares) | $26.31 | |
| Maximum offering price per share (100/94.25 of $26.31) | $27.92 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($3,051 ÷ 119.130 shares) | $25.61 | |
| Maximum offering price per share (100/96.50 of $25.61) | $26.54 | |
| Class C: | ||
| Net Asset Value and offering price per share ($4,632 ÷ 191.237 shares)(a) | $24.22 | |
| Stock Selector Small Cap: | ||
| Net Asset Value, offering price and redemption price per share ($1,070,408 ÷ 39,892.348 shares) | $26.83 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($41,270 ÷ 1,533.451 shares) | $26.91 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($685 ÷ 25.452 shares) | $26.91 |
(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.
Statement of Operations
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | |
| Investment Income | ||
| Dividends | $9,037 | |
| Income from Fidelity Central Funds | 355 | |
| Total income | 9,392 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $4,630 | |
| Performance adjustment | (717) | |
| Transfer agent fees | 1,435 | |
| Distribution and service plan fees | 49 | |
| Accounting and security lending fees | 247 | |
| Custodian fees and expenses | 30 | |
| Independent trustees' fees and expenses | 3 | |
| Registration fees | 87 | |
| Audit | 30 | |
| Legal | 6 | |
| Interest | 5 | |
| Miscellaneous | 4 | |
| Total expenses before reductions | 5,809 | |
| Expense reductions | (58) | 5,751 |
| Net investment income (loss) | 3,641 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 108,679 | |
| Fidelity Central Funds | 2 | |
| Foreign currency transactions | 1 | |
| Futures contracts | 206 | |
| Total net realized gain (loss) | 108,888 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (56,698) | |
| Fidelity Central Funds | (4) | |
| Assets and liabilities in foreign currencies | (1) | |
| Total change in net unrealized appreciation (depreciation) | (56,703) | |
| Net gain (loss) | 52,185 | |
| Net increase (decrease) in net assets resulting from operations | $55,826 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended April 30, 2018 (Unaudited) | Year ended October 31, 2017 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,641 | $4,689 |
| Net realized gain (loss) | 108,888 | 159,688 |
| Change in net unrealized appreciation (depreciation) | (56,703) | 136,289 |
| Net increase (decrease) in net assets resulting from operations | 55,826 | 300,666 |
| Distributions to shareholders from net investment income | (6,116) | (7,120) |
| Distributions to shareholders from net realized gain | (145,265) | (17,708) |
| Total distributions | (151,381) | (24,828) |
| Share transactions - net increase (decrease) | (346,075) | (119,619) |
| Redemption fees | 10 | 78 |
| Total increase (decrease) in net assets | (441,620) | 156,297 |
| Net Assets | ||
| Beginning of period | 1,576,775 | 1,420,478 |
| End of period | $1,135,155 | $1,576,775 |
| Other Information | ||
| Undistributed net investment income end of period | $– | $820 |
| Distributions in excess of net investment income end of period | $(1,655) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Stock Selector Small Cap Fund Class A
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.16 | $23.48 | $24.48 | $25.76 | $25.32 | $19.40 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .03 | –B | .05 | .06 | .01 | (.02) |
| Net realized and unrealized gain (loss) | .81 | 5.05 | .52 | .96 | 1.68 | 5.98 |
| Total from investment operations | .84 | 5.05 | .57 | 1.02 | 1.69 | 5.96 |
| Distributions from net investment income | (.03) | (.07) | (.05) | (.03) | –B | (.04) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.25) | (.01) |
| Total distributions | (2.69)C | (.37) | (1.57) | (2.30) | (1.25) | (.04)D |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $26.31 | $28.16 | $23.48 | $24.48 | $25.76 | $25.32 |
| Total ReturnE,F,G | 3.18% | 21.62% | 2.30% | 4.19% | 6.83% | 30.81% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | 1.02%J | 1.05% | 1.16% | 1.01% | .99% | 1.22% |
| Expenses net of fee waivers, if any | 1.02%J | 1.04% | 1.16% | 1.01% | .99% | 1.22% |
| Expenses net of all reductions | 1.01%J | 1.04% | 1.15% | 1.00% | .99% | 1.20% |
| Net investment income (loss) | .19 %J | .02% | .22% | .24% | .06% | (.09)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $15 | $14 | $12 | $11 | $10 | $8 |
| Portfolio turnover rateK | 45%J | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $2.69 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $2.651 per share.
D Total distributions of $.04 per share is comprised of distributions from net investment income of $.037 and distributions from net realized gain of $.007 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class M
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $27.49 | $22.95 | $24.00 | $25.30 | $24.97 | $19.15 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | (.02) | (.08) | (.03) | (.03) | (.07) | (.08) |
| Net realized and unrealized gain (loss) | .79 | 4.92 | .50 | .97 | 1.65 | 5.90 |
| Total from investment operations | .77 | 4.84 | .47 | .94 | 1.58 | 5.82 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.24) | (1.25) | – |
| Total distributions | (2.65) | (.30) | (1.52) | (2.24) | (1.25) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $25.61 | $27.49 | $22.95 | $24.00 | $25.30 | $24.97 |
| Total ReturnC,D,E | 3.01% | 21.20% | 1.89% | 3.90% | 6.46% | 30.39% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | 1.39%H | 1.39% | 1.51% | 1.35% | 1.32% | 1.51% |
| Expenses net of fee waivers, if any | 1.39%H | 1.39% | 1.51% | 1.35% | 1.32% | 1.51% |
| Expenses net of all reductions | 1.38%H | 1.39% | 1.50% | 1.34% | 1.31% | 1.49% |
| Net investment income (loss) | (.18)%H | (.33)% | (.13)% | (.10)% | (.27)% | (.38)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $3 | $3 | $3 | $3 | $3 | $2 |
| Portfolio turnover rateI | 45%H | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class C
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $26.20 | $21.99 | $23.16 | $24.49 | $24.32 | $18.73 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | (.08) | (.20) | (.13) | (.14) | (.18) | (.19) |
| Net realized and unrealized gain (loss) | .75 | 4.71 | .48 | .93 | 1.60 | 5.78 |
| Total from investment operations | .67 | 4.51 | .35 | .79 | 1.42 | 5.59 |
| Distributions from net investment income | – | – | – | – | – | – |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.12) | (1.25) | – |
| Total distributions | (2.65) | (.30) | (1.52) | (2.12) | (1.25) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – | – |
| Net asset value, end of period | $24.22 | $26.20 | $21.99 | $23.16 | $24.49 | $24.32 |
| Total ReturnC,D,E | 2.76% | 20.62% | 1.41% | 3.36% | 5.95% | 29.85% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | 1.85%H | 1.87% | 1.98% | 1.84% | 1.79% | 1.98% |
| Expenses net of fee waivers, if any | 1.85%H | 1.87% | 1.98% | 1.84% | 1.79% | 1.98% |
| Expenses net of all reductions | 1.85%H | 1.86% | 1.97% | 1.83% | 1.79% | 1.96% |
| Net investment income (loss) | (.65)%H | (.81)% | (.60)% | (.59)% | (.74)% | (.85)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $5 | $5 | $3 | $4 | $4 | $3 |
| Portfolio turnover rateI | 45%H | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.71 | $23.91 | $24.89 | $26.15 | $25.64 | $19.65 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .06 | .08 | .11 | .12 | .08 | .04 |
| Net realized and unrealized gain (loss) | .82 | 5.15 | .54 | .98 | 1.70 | 6.06 |
| Total from investment operations | .88 | 5.23 | .65 | 1.10 | 1.78 | 6.10 |
| Distributions from net investment income | (.11) | (.12) | (.11) | (.09) | (.01)B | (.10) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.26)B | (.01) |
| Total distributions | (2.76) | (.43)C | (1.63) | (2.36) | (1.27) | (.11) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $26.83 | $28.71 | $23.91 | $24.89 | $26.15 | $25.64 |
| Total ReturnE,F | 3.31% | 22.00% | 2.57% | 4.46% | 7.08% | 31.20% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .74%I | .75% | .89% | .77% | .73% | .94% |
| Expenses net of fee waivers, if any | .73%I | .75% | .89% | .77% | .73% | .93% |
| Expenses net of all reductions | .73%I | .74% | .88% | .76% | .72% | .91% |
| Net investment income (loss) | .47%I | .31% | .49% | .48% | .32% | .20% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $1,070 | $1,511 | $1,359 | $1,372 | $1,406 | $1,487 |
| Portfolio turnover rateJ | 45%I | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $.43 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $.303 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class I
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $28.78 | $23.97 | $24.96 | $26.21 | $25.69 | $19.72 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .06 | .08 | .12 | .13 | .09 | .05 |
| Net realized and unrealized gain (loss) | .83 | 5.15 | .53 | .99 | 1.70 | 6.06 |
| Total from investment operations | .89 | 5.23 | .65 | 1.12 | 1.79 | 6.11 |
| Distributions from net investment income | (.11) | (.12) | (.12) | (.10) | (.01)B | (.14) |
| Distributions from net realized gain | (2.65) | (.30) | (1.52) | (2.27) | (1.26)B | (.01) |
| Total distributions | (2.76) | (.42) | (1.64) | (2.37) | (1.27) | (.14)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – | – |
| Net asset value, end of period | $26.91 | $28.78 | $23.97 | $24.96 | $26.21 | $25.69 |
| Total ReturnE,F | 3.32% | 21.97% | 2.55% | 4.52% | 7.11% | 31.22% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .74%I | .75% | .87% | .74% | .70% | .91% |
| Expenses net of fee waivers, if any | .74%I | .75% | .87% | .73% | .70% | .91% |
| Expenses net of all reductions | .73%I | .75% | .87% | .73% | .70% | .89% |
| Net investment income (loss) | .47%I | .31% | .50% | .51% | .35% | .22% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $41 | $43 | $43 | $46 | $51 | $56 |
| Portfolio turnover rateJ | 45%I | 62% | 57% | 48% | 73% | 79% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $.14 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.007 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class Z
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |
| 2018 | 2017 A | |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $28.81 | $26.36 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .08 | .07 |
| Net realized and unrealized gain (loss) | .83 | 2.38 |
| Total from investment operations | .91 | 2.45 |
| Distributions from net investment income | (.16) | – |
| Distributions from net realized gain | (2.65) | – |
| Total distributions | (2.81) | – |
| Redemption fees added to paid in capitalB,C | – | – |
| Net asset value, end of period | $26.91 | $28.81 |
| Total ReturnD,E | 3.40% | 9.29% |
| Ratios to Average Net AssetsF,G | ||
| Expenses before reductions | .60%H | .62%H |
| Expenses net of fee waivers, if any | .60%H | .61%H |
| Expenses net of all reductions | .59%H | .61%H |
| Net investment income (loss) | .61%H | .34%H |
| Supplemental Data | ||
| Net assets, end of period (in millions) | $1 | $1 |
| Portfolio turnover rateI | 45%H | 62% |
A For the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
(Amounts in thousands except percentages)
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 M, Class C, Stock Selector Small Cap, Class I and Class Z 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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 includes 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $277,585 |
| Gross unrealized depreciation | (22,583) |
| Net unrealized appreciation (depreciation) | $255,002 |
| Tax cost | $913,396 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.50% of the NAV 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. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used 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 close out 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. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
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 daily 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). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $334,467 and $790,304, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. 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 its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .50% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 the investment adviser, 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% | $18 | $1 |
| Class M(a) | .25% | .25% | 8 | – |
| Class C | .75% | .25% | 23 | 2 |
| $49 | $3 |
(a) In the amount of less than five-hundred dollars
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $7 |
| Class M | 1 |
| Class C(a) | – |
| $8 |
(a) In the amount of less than five-hundred dollars
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, 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, except for Class Z. FIIOC receives an asset-based fee of Class Z'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 Class-Level Average Net Assets(a) | |
| Class A | $16 | .22 |
| Class M | 5 | .33 |
| Class C | 7 | .30 |
| Stock Selector Small Cap | 1,367 | .18 |
| Class I | 40 | .19 |
| Class Z | –(b) | .05 |
| $1,435 |
(a) Annualized
(b) In the amount of less than five-hundred dollars
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each 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. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $23 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 Fidelity Management & Research Company (FMR) or other affiliated entities of 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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Fund's Statement of Assets and Liabilities. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $12,184 | 1.94% | $5 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. 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. The value of securities loaned to FCM at period end was $706. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any 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 $82, including $18 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $50 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended April 30, 2018 | Year ended October 31, 2017 | |
| From net investment income | ||
| Class A | $17 | $34 |
| Stock Selector Small Cap | 5,933 | 6,885 |
| Class I | 163 | 201 |
| Class Z | 3 | – |
| Total | $6,116 | $7,120 |
| From net realized gain | ||
| Class A | $1,328 | $156 |
| Class M | 291 | 34 |
| Class C | 453 | 55 |
| Stock Selector Small Cap | 139,167 | 16,959 |
| Class I | 3,970 | 504 |
| Class Z | 56 | – |
| Total | $145,265 | $17,708 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended April 30, 2018 | Year ended October 31, 2017(a) | Six months ended April 30, 2018 | Year ended October 31, 2017(a) | |
| Class A | ||||
| Shares sold | 62 | 118 | $1,634 | $3,090 |
| Reinvestment of distributions | 52 | 7 | 1,339 | 186 |
| Shares redeemed | (39) | (125) | (1,034) | (3,277) |
| Net increase (decrease) | 75 | – | $1,939 | $(1) |
| Class M | ||||
| Shares sold | 11 | 46 | $298 | $1,150 |
| Reinvestment of distributions | 11 | 1 | 281 | 33 |
| Shares redeemed | (18) | (47) | (485) | (1,187) |
| Net increase (decrease) | 4 | – | $94 | $(4) |
| Class C | ||||
| Shares sold | 21 | 80 | $528 | $1,940 |
| Reinvestment of distributions | 19 | 2 | 447 | 53 |
| Shares redeemed | (24) | (65) | (600) | (1,593) |
| Net increase (decrease) | 16 | 17 | $375 | $400 |
| Stock Selector Small Cap | ||||
| Shares sold | 19,274 | 6,895 | $520,892 | $183,697 |
| Reinvestment of distributions | 5,410 | 876 | 141,745 | 23,306 |
| Shares redeemed | (37,436) | (11,988) | (1,012,153) | (319,370) |
| Net increase (decrease) | (12,752) | (4,217) | $(349,516) | $(112,367) |
| Class I | ||||
| Shares sold | 180 | 214 | $4,846 | $5,746 |
| Reinvestment of distributions | 157 | 26 | 4,120 | 702 |
| Shares redeemed | (300) | (549) | (8,004) | (14,715) |
| Net increase (decrease) | 37 | (309) | $962 | $(8,267) |
| Class Z | ||||
| Shares sold | 6 | 26 | $198 | $706 |
| Reinvestment of distributions | 2 | – | 51 | – |
| Shares redeemed | (6) | (3) | (178) | (86) |
| Net increase (decrease) | 2 | 23 | $71 | $620 |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
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.
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, 2017 to April 30, 2018).
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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Class A | 1.02% | |||
| Actual | $1,000.00 | $1,031.80 | $5.14 | |
| Hypothetical-C | $1,000.00 | $1,019.74 | $5.11 | |
| Class M | 1.39% | |||
| Actual | $1,000.00 | $1,030.10 | $7.00 | |
| Hypothetical-C | $1,000.00 | $1,017.90 | $6.95 | |
| Class C | 1.85% | |||
| Actual | $1,000.00 | $1,027.60 | $9.30 | |
| Hypothetical-C | $1,000.00 | $1,015.62 | $9.25 | |
| Stock Selector Small Cap | .73% | |||
| Actual | $1,000.00 | $1,033.10 | $3.68 | |
| Hypothetical-C | $1,000.00 | $1,021.17 | $3.66 | |
| Class I | .74% | |||
| Actual | $1,000.00 | $1,033.20 | $3.73 | |
| Hypothetical-C | $1,000.00 | $1,021.12 | $3.71 | |
| Class Z | .60% | |||
| Actual | $1,000.00 | $1,034.00 | $3.03 | |
| Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C 5% return per year before expenses
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Fidelity Flex℠ Funds Fidelity Flex℠ Small Cap Fund Semi-Annual Report April 30, 2018 |
|
Contents
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. © 2018 FMR LLC. All rights reserved.
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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of April 30, 2018
| % of fund's net assets | |
| First Citizen Bancshares, Inc. | 2.3 |
| Grand Canyon Education, Inc. | 2.0 |
| Store Capital Corp. | 1.9 |
| Cedar Fair LP (depositary unit) | 1.7 |
| Moog, Inc. Class A | 1.7 |
| Cullen/Frost Bankers, Inc. | 1.6 |
| UMB Financial Corp. | 1.5 |
| Enstar Group Ltd. | 1.5 |
| Genesee & Wyoming, Inc. Class A | 1.5 |
| Silgan Holdings, Inc. | 1.4 |
| 17.1 |
Top Five Market Sectors as of April 30, 2018
| % of fund's net assets | |
| Financials | 19.1 |
| Information Technology | 17.5 |
| Industrials | 16.7 |
| Consumer Discretionary | 14.5 |
| Health Care | 11.3 |
Asset Allocation (% of fund's net assets)
| As of April 30, 2018 * | ||
| Stocks | 97.4% | |
| Investment Companies | 0.4% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.2% | |
* Foreign investments - 9.9%
Schedule of Investments April 30, 2018 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.4% | |||
| Shares | Value | ||
| CONSUMER DISCRETIONARY - 14.5% | |||
| Auto Components - 0.8% | |||
| Standard Motor Products, Inc. | 1,414 | $64,125 | |
| Diversified Consumer Services - 3.0% | |||
| Bright Horizons Family Solutions, Inc. (a) | 125 | 11,860 | |
| Grand Canyon Education, Inc. (a) | 1,505 | 156,505 | |
| Strayer Education, Inc. | 632 | 66,404 | |
| 234,769 | |||
| Hotels, Restaurants & Leisure - 5.1% | |||
| Bluegreen Vacations Corp. | 848 | 19,733 | |
| Boyd Gaming Corp. | 593 | 19,694 | |
| Cedar Fair LP (depositary unit) | 2,001 | 135,548 | |
| Churchill Downs, Inc. | 93 | 25,538 | |
| Dunkin' Brands Group, Inc. | 298 | 18,166 | |
| Golden Entertainment, Inc. (a) | 373 | 9,978 | |
| Hilton Grand Vacations, Inc. (a) | 739 | 31,777 | |
| Marriott Vacations Worldwide Corp. | 135 | 16,552 | |
| Six Flags Entertainment Corp. | 457 | 28,901 | |
| Texas Roadhouse, Inc. Class A | 362 | 23,197 | |
| U.S. Foods Holding Corp. (a) | 662 | 22,627 | |
| Vail Resorts, Inc. | 198 | 45,403 | |
| 397,114 | |||
| Household Durables - 3.0% | |||
| Cavco Industries, Inc. (a) | 331 | 56,386 | |
| LGI Homes, Inc. (a) | 1,018 | 70,446 | |
| Meritage Homes Corp. (a) | 518 | 23,051 | |
| SodaStream International Ltd. (a) | 338 | 31,938 | |
| Taylor Morrison Home Corp. (a) | 1,281 | 30,437 | |
| TopBuild Corp. (a) | 312 | 24,866 | |
| 237,124 | |||
| Internet & Direct Marketing Retail - 0.2% | |||
| Gaia, Inc. Class A (a) | 1,006 | 15,241 | |
| Media - 0.3% | |||
| Cinemark Holdings, Inc. | 508 | 19,898 | |
| Multiline Retail - 0.2% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 289 | 17,976 | |
| Specialty Retail - 1.5% | |||
| Aaron's, Inc. Class A | 2,342 | 97,825 | |
| The Children's Place Retail Stores, Inc. | 168 | 21,428 | |
| 119,253 | |||
| Textiles, Apparel & Luxury Goods - 0.4% | |||
| Carter's, Inc. | 131 | 13,142 | |
| Columbia Sportswear Co. | 173 | 14,361 | |
| 27,503 | |||
| TOTAL CONSUMER DISCRETIONARY | 1,133,003 | ||
| CONSUMER STAPLES - 1.9% | |||
| Food & Staples Retailing - 0.3% | |||
| Performance Food Group Co. (a) | 758 | 24,597 | |
| Food Products - 1.1% | |||
| Nomad Foods Ltd. (a) | 4,011 | 66,141 | |
| Post Holdings, Inc. (a) | 300 | 23,871 | |
| 90,012 | |||
| Household Products - 0.5% | |||
| Central Garden & Pet Co. (a) | 405 | 15,183 | |
| Central Garden & Pet Co. Class A (non-vtg.) (a) | 636 | 22,578 | |
| 37,761 | |||
| TOTAL CONSUMER STAPLES | 152,370 | ||
| ENERGY - 3.5% | |||
| Energy Equipment & Services - 1.1% | |||
| NCS Multistage Holdings, Inc. | 743 | 13,537 | |
| Oil States International, Inc. (a) | 600 | 21,570 | |
| ShawCor Ltd. Class A | 2,601 | 50,320 | |
| 85,427 | |||
| Oil, Gas & Consumable Fuels - 2.4% | |||
| Delek U.S. Holdings, Inc. | 1,336 | 63,286 | |
| LINN Energy, Inc. (a) | 2,240 | 87,808 | |
| Whiting Petroleum Corp. (a) | 1,000 | 40,820 | |
| 191,914 | |||
| TOTAL ENERGY | 277,341 | ||
| FINANCIALS - 19.1% | |||
| Banks - 9.5% | |||
| Associated Banc-Corp. | 922 | 24,387 | |
| Banner Corp. | 504 | 28,930 | |
| BOK Financial Corp. | 844 | 84,974 | |
| Cullen/Frost Bankers, Inc. | 1,132 | 129,557 | |
| CVB Financial Corp. | 1,899 | 42,063 | |
| First Citizen Bancshares, Inc. | 418 | 180,692 | |
| Hilltop Holdings, Inc. | 1,590 | 35,648 | |
| Popular, Inc. | 1,845 | 85,405 | |
| Prosperity Bancshares, Inc. | 226 | 16,220 | |
| UMB Financial Corp. | 1,554 | 119,005 | |
| 746,881 | |||
| Capital Markets - 2.6% | |||
| Apollo Global Management LLC Class A | 1,066 | 30,743 | |
| Cboe Global Markets, Inc. | 204 | 21,783 | |
| Federated Investors, Inc. Class B (non-vtg.) | 504 | 13,341 | |
| Hamilton Lane, Inc. Class A | 476 | 19,921 | |
| Lazard Ltd. Class A | 363 | 19,754 | |
| Legg Mason, Inc. | 384 | 15,245 | |
| MSCI, Inc. | 183 | 27,419 | |
| OM Asset Management Ltd. | 3,751 | 56,903 | |
| 205,109 | |||
| Insurance - 5.1% | |||
| Argo Group International Holdings, Ltd. | 936 | 54,709 | |
| Axis Capital Holdings Ltd. | 900 | 52,830 | |
| Enstar Group Ltd. (a) | 553 | 116,213 | |
| First American Financial Corp. | 1,431 | 73,138 | |
| ProAssurance Corp. | 2,116 | 100,087 | |
| 396,977 | |||
| Thrifts & Mortgage Finance - 1.9% | |||
| Beneficial Bancorp, Inc. | 4,142 | 65,651 | |
| Essent Group Ltd. (a) | 741 | 24,423 | |
| Meridian Bancorp, Inc. Maryland | 1,141 | 21,565 | |
| Washington Federal, Inc. | 1,020 | 32,385 | |
| 144,024 | |||
| TOTAL FINANCIALS | 1,492,991 | ||
| HEALTH CARE - 11.3% | |||
| Biotechnology - 4.4% | |||
| Abeona Therapeutics, Inc. (a) | 643 | 11,220 | |
| Acceleron Pharma, Inc. (a) | 316 | 11,032 | |
| Achaogen, Inc. (a) | 677 | 9,688 | |
| Acorda Therapeutics, Inc. (a) | 325 | 7,508 | |
| Alder Biopharmaceuticals, Inc. (a) | 731 | 10,380 | |
| Amarin Corp. PLC ADR (a) | 899 | 2,472 | |
| AnaptysBio, Inc. (a) | 168 | 15,755 | |
| Arena Pharmaceuticals, Inc. (a) | 261 | 10,398 | |
| Argenx SE ADR | 146 | 12,793 | |
| Ascendis Pharma A/S sponsored ADR (a) | 432 | 27,220 | |
| Atara Biotherapeutics, Inc. (a) | 201 | 8,110 | |
| Audentes Therapeutics, Inc. (a) | 528 | 19,726 | |
| Blueprint Medicines Corp. (a) | 314 | 24,090 | |
| Epizyme, Inc. (a) | 448 | 5,757 | |
| Fate Therapeutics, Inc. (a) | 115 | 1,162 | |
| FibroGen, Inc. (a) | 298 | 13,544 | |
| Five Prime Therapeutics, Inc. (a) | 144 | 2,412 | |
| Foundation Medicine, Inc. (a) | 40 | 3,054 | |
| Global Blood Therapeutics, Inc. (a) | 428 | 18,896 | |
| Heron Therapeutics, Inc. (a) | 346 | 10,484 | |
| Ligand Pharmaceuticals, Inc. Class B (a) | 93 | 14,401 | |
| Loxo Oncology, Inc. (a) | 236 | 29,715 | |
| Mirati Therapeutics, Inc. (a) | 434 | 13,367 | |
| Sarepta Therapeutics, Inc. (a) | 472 | 36,042 | |
| Spark Therapeutics, Inc. (a) | 172 | 13,127 | |
| Stemline Therapeutics, Inc. (a) | 718 | 12,350 | |
| TESARO, Inc. (a) | 76 | 3,869 | |
| 348,572 | |||
| Health Care Equipment & Supplies - 2.1% | |||
| Cantel Medical Corp. | 322 | 36,087 | |
| ICU Medical, Inc. (a) | 101 | 25,422 | |
| Inogen, Inc. (a) | 109 | 15,323 | |
| Insulet Corp. (a) | 56 | 4,816 | |
| Integra LifeSciences Holdings Corp. (a) | 824 | 50,783 | |
| iRhythm Technologies, Inc. (a) | 305 | 17,736 | |
| Quanterix Corp. (a) | 726 | 12,306 | |
| 162,473 | |||
| Health Care Providers & Services - 2.0% | |||
| Chemed Corp. | 66 | 20,343 | |
| G1 Therapeutics, Inc. | 119 | 4,564 | |
| Magellan Health Services, Inc. (a) | 800 | 67,080 | |
| Molina Healthcare, Inc. (a) | 498 | 41,459 | |
| Tivity Health, Inc. (a) | 598 | 21,498 | |
| 154,944 | |||
| Health Care Technology - 0.1% | |||
| Cegedim SA (a) | 144 | 6,121 | |
| HTG Molecular Diagnostics (a) | 769 | 3,068 | |
| 9,189 | |||
| Life Sciences Tools & Services - 0.5% | |||
| ICON PLC (a) | 322 | 37,877 | |
| Pharmaceuticals - 2.2% | |||
| Aclaris Therapeutics, Inc. (a) | 524 | 9,301 | |
| Aerie Pharmaceuticals, Inc. (a) | 295 | 15,104 | |
| Akcea Therapeutics, Inc. | 45 | 1,175 | |
| Avexis, Inc. (a) | 188 | 39,980 | |
| Catalent, Inc. (a) | 505 | 20,761 | |
| Innoviva, Inc. (a) | 1,669 | 24,201 | |
| Nektar Therapeutics (a) | 637 | 53,291 | |
| Theravance Biopharma, Inc. (a) | 190 | 4,573 | |
| Zogenix, Inc. (a) | 55 | 2,162 | |
| 170,548 | |||
| TOTAL HEALTH CARE | 883,603 | ||
| INDUSTRIALS - 16.7% | |||
| Aerospace & Defense - 3.2% | |||
| BWX Technologies, Inc. | 577 | 39,121 | |
| HEICO Corp. Class A | 628 | 45,310 | |
| Moog, Inc. Class A | 1,637 | 134,185 | |
| Teledyne Technologies, Inc. (a) | 163 | 30,496 | |
| 249,112 | |||
| Air Freight & Logistics - 0.2% | |||
| Atlas Air Worldwide Holdings, Inc. (a) | 282 | 17,879 | |
| Airlines - 1.3% | |||
| Allegiant Travel Co. | 370 | 59,293 | |
| SkyWest, Inc. | 780 | 44,382 | |
| 103,675 | |||
| Commercial Services & Supplies - 0.7% | |||
| Copart, Inc. (a) | 871 | 44,491 | |
| Viad Corp. | 273 | 13,855 | |
| 58,346 | |||
| Construction & Engineering - 1.5% | |||
| Dycom Industries, Inc. (a) | 383 | 39,778 | |
| EMCOR Group, Inc. | 394 | 28,994 | |
| Jacobs Engineering Group, Inc. | 338 | 19,634 | |
| KBR, Inc. | 1,696 | 28,306 | |
| 116,712 | |||
| Electrical Equipment - 2.0% | |||
| AZZ, Inc. | 648 | 28,868 | |
| Generac Holdings, Inc. (a) | 985 | 44,335 | |
| Melrose Industries PLC | 1,589 | 4,988 | |
| Regal Beloit Corp. | 1,113 | 79,246 | |
| 157,437 | |||
| Industrial Conglomerates - 0.5% | |||
| ITT, Inc. | 813 | 39,748 | |
| Machinery - 1.5% | |||
| AGCO Corp. | 215 | 13,476 | |
| Allison Transmission Holdings, Inc. | 79 | 3,080 | |
| Milacron Holdings Corp. (a) | 714 | 12,873 | |
| Mueller Industries, Inc. | 1,917 | 52,104 | |
| Oshkosh Corp. | 232 | 16,741 | |
| WABCO Holdings, Inc. (a) | 155 | 19,993 | |
| 118,267 | |||
| Professional Services - 2.4% | |||
| Asgn, Inc. (a) | 752 | 60,634 | |
| Exponent, Inc. | 495 | 42,768 | |
| FTI Consulting, Inc. (a) | 1,069 | 62,430 | |
| Insperity, Inc. | 279 | 22,390 | |
| 188,222 | |||
| Road & Rail - 1.5% | |||
| Genesee & Wyoming, Inc. Class A (a) | 1,607 | 114,418 | |
| Trading Companies & Distributors - 1.9% | |||
| SiteOne Landscape Supply, Inc. (a) | 481 | 32,949 | |
| Univar, Inc. (a) | 712 | 19,623 | |
| WESCO International, Inc. (a) | 1,609 | 95,816 | |
| 148,388 | |||
| TOTAL INDUSTRIALS | 1,312,204 | ||
| INFORMATION TECHNOLOGY - 17.5% | |||
| Communications Equipment - 0.3% | |||
| InterDigital, Inc. | 369 | 27,472 | |
| Electronic Equipment & Components - 2.6% | |||
| Dolby Laboratories, Inc. Class A | 308 | 18,425 | |
| II-VI, Inc. (a) | 423 | 16,116 | |
| Novanta, Inc. (a) | 352 | 20,698 | |
| SYNNEX Corp. | 569 | 56,997 | |
| Tech Data Corp. (a) | 1,216 | 92,720 | |
| 204,956 | |||
| Internet Software & Services - 7.1% | |||
| 2U, Inc. (a) | 1,402 | 112,847 | |
| ANGI Homeservices, Inc. Class A (a) | 752 | 10,047 | |
| BlackLine, Inc. (a) | 535 | 22,149 | |
| DocuSign, Inc. | 200 | 7,726 | |
| Five9, Inc. (a) | 568 | 16,682 | |
| GoDaddy, Inc. (a) | 824 | 53,197 | |
| Gogo, Inc. (a) | 1,402 | 13,207 | |
| GrubHub, Inc. (a) | 448 | 45,311 | |
| Instructure, Inc. (a) | 390 | 15,815 | |
| j2 Global, Inc. | 1,295 | 102,797 | |
| MINDBODY, Inc. (a) | 410 | 16,257 | |
| New Relic, Inc. (a) | 287 | 20,058 | |
| Okta, Inc. | 728 | 31,166 | |
| ShotSpotter, Inc. | 451 | 12,511 | |
| Stamps.com, Inc. (a) | 280 | 63,770 | |
| Yext, Inc. | 988 | 13,180 | |
| 556,720 | |||
| IT Services - 3.5% | |||
| EPAM Systems, Inc. (a) | 443 | 50,657 | |
| EVERTEC, Inc. | 1,500 | 27,375 | |
| Genpact Ltd. | 836 | 26,660 | |
| Interxion Holding N.V. (a) | 251 | 16,320 | |
| Leidos Holdings, Inc. | 758 | 48,686 | |
| Presidio, Inc. (a) | 1,202 | 18,415 | |
| Science Applications International Corp. | 977 | 83,817 | |
| 271,930 | |||
| Semiconductors & Semiconductor Equipment - 0.8% | |||
| Entegris, Inc. | 1,473 | 47,431 | |
| PDF Solutions, Inc. (a) | 1,201 | 13,391 | |
| 60,822 | |||
| Software - 3.1% | |||
| 8x8, Inc. (a) | 600 | 12,150 | |
| Black Knight, Inc. (a) | 486 | 23,644 | |
| Cardlytics, Inc. (a) | 746 | 10,459 | |
| Everbridge, Inc. (a) | 940 | 35,109 | |
| HubSpot, Inc. (a) | 353 | 37,383 | |
| Model N, Inc. (a) | 566 | 9,707 | |
| Proofpoint, Inc. (a) | 277 | 32,669 | |
| PROS Holdings, Inc. (a) | 894 | 26,391 | |
| Talend SA ADR (a) | 292 | 14,250 | |
| Workiva, Inc. (a) | 432 | 9,720 | |
| Zendesk, Inc. (a) | 444 | 21,645 | |
| Zscaler, Inc. (a) | 436 | 13,032 | |
| 246,159 | |||
| Technology Hardware, Storage & Peripherals - 0.1% | |||
| Super Micro Computer, Inc. (a) | 392 | 6,938 | |
| TOTAL INFORMATION TECHNOLOGY | 1,374,997 | ||
| MATERIALS - 4.7% | |||
| Chemicals - 0.8% | |||
| Orion Engineered Carbons SA | 724 | 19,403 | |
| The Chemours Co. LLC | 883 | 42,746 | |
| 62,149 | |||
| Construction Materials - 0.8% | |||
| Eagle Materials, Inc. | 326 | 32,261 | |
| Summit Materials, Inc. | 997 | 28,056 | |
| 60,317 | |||
| Containers & Packaging - 2.0% | |||
| Avery Dennison Corp. | 290 | 30,395 | |
| Berry Global Group, Inc. (a) | 243 | 13,365 | |
| Silgan Holdings, Inc. | 4,041 | 113,431 | |
| 157,191 | |||
| Metals & Mining - 1.0% | |||
| Compass Minerals International, Inc. | 1,189 | 80,020 | |
| Paper & Forest Products - 0.1% | |||
| Neenah, Inc. | 110 | 8,580 | |
| TOTAL MATERIALS | 368,257 | ||
| REAL ESTATE - 5.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 5.2% | |||
| CareTrust (REIT), Inc. | 4,255 | 56,209 | |
| Equity Commonwealth (a) | 2,289 | 70,936 | |
| Rexford Industrial Realty, Inc. | 2,778 | 84,868 | |
| Sabra Health Care REIT, Inc. | 1,733 | 31,731 | |
| Store Capital Corp. | 5,714 | 144,164 | |
| Terreno Realty Corp. | 468 | 17,386 | |
| 405,294 | |||
| UTILITIES - 3.0% | |||
| Electric Utilities - 2.2% | |||
| El Paso Electric Co. | 1,569 | 80,097 | |
| IDACORP, Inc. | 964 | 89,652 | |
| 169,749 | |||
| Water Utilities - 0.8% | |||
| SJW Corp. | 1,100 | 66,495 | |
| TOTAL UTILITIES | 236,244 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,574,416) | 7,636,304 | ||
| Convertible Preferred Stocks - 0.0% | |||
| INFORMATION TECHNOLOGY - 0.0% | |||
| Software - 0.0% | |||
| Compass, Inc. Series E (b)(c) | |||
| (Cost $1,754) | 26 | 1,754 | |
| Investment Companies - 0.4% | |||
| iShares Russell 2000 Growth Index ETF | |||
| (Cost $30,563) | 155 | 29,603 | |
| Money Market Funds - 1.6% | |||
| Fidelity Cash Central Fund, 1.74% (d) | |||
| (Cost $122,335) | 122,311 | 122,335 | |
| TOTAL INVESTMENT IN SECURITIES - 99.4% | |||
| (Cost $7,729,068) | 7,789,996 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.6% | 45,958 | ||
| NET ASSETS - 100% | $7,835,954 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,754 or 0.0% of net assets.
(c) Level 3 security
(d) Affiliated fund that is generally 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.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| Compass, Inc. Series E | 11/3/17 | $1,754 |
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 | $1,272 |
| Total | $1,272 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of April 30, 2018, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,133,003 | $1,133,003 | $-- | $-- |
| Consumer Staples | 152,370 | 152,370 | -- | -- |
| Energy | 277,341 | 277,341 | -- | -- |
| Financials | 1,492,991 | 1,492,991 | -- | -- |
| Health Care | 883,603 | 883,603 | -- | -- |
| Industrials | 1,312,204 | 1,312,204 | -- | -- |
| Information Technology | 1,376,751 | 1,374,997 | -- | 1,754 |
| Materials | 368,257 | 368,257 | -- | -- |
| Real Estate | 405,294 | 405,294 | -- | -- |
| Utilities | 236,244 | 236,244 | -- | -- |
| Investment Companies | 29,603 | 29,603 | -- | -- |
| Money Market Funds | 122,335 | 122,335 | -- | -- |
| Total Investments in Securities: | $7,789,996 | $7,788,242 | $-- | $1,754 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| April 30, 2018 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $7,606,733) | $7,667,661 | |
| Fidelity Central Funds (cost $122,335) | 122,335 | |
| Total Investment in Securities (cost $7,729,068) | $7,789,996 | |
| Cash | 46,899 | |
| Receivable for investments sold | 83,739 | |
| Receivable for fund shares sold | 1,608 | |
| Dividends receivable | 707 | |
| Distributions receivable from Fidelity Central Funds | 171 | |
| Other receivables | 20 | |
| Total assets | 7,923,140 | |
| Liabilities | ||
| Payable for investments purchased | $85,709 | |
| Payable for fund shares redeemed | 1,477 | |
| Total liabilities | 87,186 | |
| Net Assets | $7,835,954 | |
| Net Assets consist of: | ||
| Paid in capital | $7,809,120 | |
| Undistributed net investment income | 13,600 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,693) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 60,927 | |
| Net Assets, for 701,573 shares outstanding | $7,835,954 | |
| Net Asset Value, offering price and redemption price per share ($7,835,954 ÷ 701,573 shares) | $11.17 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended April 30, 2018 (Unaudited) | ||
| Investment Income | ||
| Dividends | $14,225 | |
| Income from Fidelity Central Funds | 1,272 | |
| Total income | 15,497 | |
| Expenses | ||
| Independent trustees' fees and expenses | $4 | |
| Miscellaneous | 2 | |
| Total expenses | 6 | |
| Net investment income (loss) | 15,491 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (41,675) | |
| Foreign currency transactions | 34 | |
| Total net realized gain (loss) | (41,641) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 20,245 | |
| Assets and liabilities in foreign currencies | (1) | |
| Total change in net unrealized appreciation (depreciation) | 20,244 | |
| Net gain (loss) | (21,397) | |
| Net increase (decrease) in net assets resulting from operations | $(5,906) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended April 30, 2018 (Unaudited) | For the period March 7, 2017 (commencement of operations) to October 31, 2017 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $15,491 | $3,593 |
| Net realized gain (loss) | (41,641) | (6,185) |
| Change in net unrealized appreciation (depreciation) | 20,244 | 40,683 |
| Net increase (decrease) in net assets resulting from operations | (5,906) | 38,091 |
| Distributions to shareholders from net investment income | (5,350) | – |
| Share transactions | ||
| Proceeds from sales of shares | 8,445,233 | 500,000 |
| Reinvestment of distributions | 5,350 | – |
| Cost of shares redeemed | (1,141,464) | – |
| Net increase (decrease) in net assets resulting from share transactions | 7,309,119 | 500,000 |
| Total increase (decrease) in net assets | 7,297,863 | 538,091 |
| Net Assets | ||
| Beginning of period | 538,091 | – |
| End of period | $7,835,954 | $538,091 |
| Other Information | ||
| Undistributed net investment income end of period | $13,600 | $3,459 |
| Shares | ||
| Sold | 752,604 | 50,000 |
| Issued in reinvestment of distributions | 496 | – |
| Redeemed | (101,527) | – |
| Net increase (decrease) | 651,573 | 50,000 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Small Cap Fund
| Six months ended (Unaudited) April 30, | Years endedOctober 31, | |
| 2018 | 2017 A | |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $10.76 | $10.00 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .06 | .07 |
| Net realized and unrealized gain (loss) | .46C | .69 |
| Total from investment operations | .52 | .76 |
| Distributions from net investment income | (.11) | – |
| Net asset value, end of period | $11.17 | $10.76 |
| Total ReturnD | 4.84% | 7.60% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductionsG,H | -% | -% |
| Expenses net of fee waivers, if anyG,H | -% | -% |
| Expenses net of all reductionsG,H | -% | -% |
| Net investment income (loss)G | 1.05% | 1.10% |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $7,836 | $538 |
| Portfolio turnover rateI | 137%G | 249%G |
A For the period March 7, 2017 (commencement of operations) to October 31, 2017.
B Calculated based on average shares outstanding during the period.
C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
D Total returns for periods of less than one year are not annualized.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund 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 expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended April 30, 2018
1. Organization.
Fidelity Flex Small Cap Fund (the Fund) is a fund of Fidelity Capital Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 is available only to certain fee-based accounts offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. 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:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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:
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 a third party pricing vendor 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 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 may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor 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 but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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.
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, 2018 is included at the end of the Fund's Schedule of Investments.
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 rates 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. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $312,405 |
| Gross unrealized depreciation | (297,671) |
| Net unrealized appreciation (depreciation) | $14,734 |
| Tax cost | $7,775,262 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(1,354) |
| Total capital loss carryforward | $(1,354) |
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $9,258,498 and $2,066,504, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $193 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. 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.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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, 2017 to April 30, 2018).
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. 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. 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.
| Annualized Expense Ratio-A | Beginning Account Value November 1, 2017 | Ending Account Value April 30, 2018 | Expenses Paid During Period-B November 1, 2017 to April 30, 2018 | |
| Actual | - %-C | $1,000.00 | $1,048.40 | $- D |
| Hypothetical-E | $1,000.00 | $1,024.79 | $-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 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).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
ZSC-SANN-0618
1.9881582.101
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 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.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
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/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | June 27, 2018 |
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/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | June 27, 2018 |
By: | /s/Howard J. Galligan III |
Howard J. Galligan III | |
Chief Financial Officer | |
Date: | June 27, 2018 |