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 811-02841
Fidelity Capital Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, 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: | October 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity® Capital Appreciation Fund
October 31, 2020
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See the inside front cover for important information about access to your fund’s shareholder reports.
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
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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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Capital Appreciation Fund | 24.73% | 12.82% | 13.54% |
Class K | 24.85% | 12.93% | 13.67% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Capital Appreciation Fund, a class of the fund, on October 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648427661_740.jpg)
Period Ending Values | ||
$35,598 | Fidelity® Capital Appreciation Fund | |
$33,987 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Co-Managers Asher Anolic and Jason Weiner: For the fiscal year ending October 31, 2020, the fund's share classes gained about 25%, outperforming the 9.71% result of the benchmark S&P 500® Index. The primary contributor to performance versus the benchmark was security selection and overweighting in information technology. Security selection in communication services and health care also lifted performance. The biggest individual relative contributor was an overweight position in Nvidia (+148%). Nvidia was among our biggest holdings. Other key contributors included out-of-benchmark positions in Alibaba Group Holding and Tencent Holdings. We increased our position in each of these stocks the past year. In contrast, an underweighting in health care and security selection in financials and energy hampered the fund's relative result. The biggest individual relative detractor was an underweight position in Apple (+75%), which was among the fund's biggest holdings. An out-of-benchmark stake in Petroleo Brasileiro (-59%) and an underweighting in Amazon.com (+71%) also hurt the fund’s relative return. Notable changes in positioning included increased exposure to the communication services and industrials sectors.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
Microsoft Corp. | 8.0 |
Facebook, Inc. Class A | 4.4 |
Alibaba Group Holding Ltd. sponsored ADR | 3.2 |
NVIDIA Corp. | 3.2 |
Amazon.com, Inc. | 3.1 |
Qualcomm, Inc. | 3.0 |
Apple, Inc. | 3.0 |
Tencent Holdings Ltd. | 2.8 |
Adobe, Inc. | 2.3 |
UnitedHealth Group, Inc. | 1.8 |
34.8 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Information Technology | 30.5 |
Health Care | 18.4 |
Communication Services | 14.3 |
Consumer Discretionary | 12.5 |
Industrials | 9.1 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks | 99.7% | |
Convertible Securities | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 18.7%
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 99.2% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 14.3% | |||
Diversified Telecommunication Services - 0.5% | |||
Cellnex Telecom SA (a) | 450,400 | $28,914 | |
Entertainment - 1.4% | |||
Activision Blizzard, Inc. | 500,945 | 37,937 | |
CD Projekt RED SA (b) | 185,000 | 15,674 | |
DouYu International Holdings Ltd. ADR (b) | 347,600 | 5,318 | |
Electronic Arts, Inc. (b) | 147,754 | 17,705 | |
76,634 | |||
Interactive Media & Services - 11.3% | |||
Alphabet, Inc.: | |||
Class A (b) | 59,882 | 96,776 | |
Class C (b) | 57,856 | 93,785 | |
Facebook, Inc. Class A (b) | 930,102 | 244,719 | |
Match Group, Inc. (b) | 96,386 | 11,256 | |
Tencent Holdings Ltd. | 2,027,769 | 154,933 | |
Wise Talent Information Technology Co. Ltd. (b) | 2,928,262 | 7,192 | |
Zoominfo Technologies, Inc. | 368,400 | 13,996 | |
622,657 | |||
Media - 0.1% | |||
Nexstar Broadcasting Group, Inc. Class A | 87,267 | 7,191 | |
Wireless Telecommunication Services - 1.0% | |||
T-Mobile U.S., Inc. | 514,970 | 56,425 | |
TOTAL COMMUNICATION SERVICES | 791,821 | ||
CONSUMER DISCRETIONARY - 12.5% | |||
Automobiles - 0.8% | |||
Ferrari NV (c) | 238,389 | 42,533 | |
XPeng, Inc. ADR (b)(c) | 60,700 | 1,176 | |
43,709 | |||
Diversified Consumer Services - 0.7% | |||
Laureate Education, Inc. Class A (b) | 3,109,487 | 40,423 | |
Hotels, Restaurants & Leisure - 0.8% | |||
Dalata Hotel Group PLC | 880,700 | 2,482 | |
Dunkin' Brands Group, Inc. | 222,900 | 22,225 | |
Hilton Worldwide Holdings, Inc. | 216,200 | 18,985 | |
43,692 | |||
Household Durables - 2.4% | |||
D.R. Horton, Inc. | 1,115,072 | 74,498 | |
NVR, Inc. (b) | 10,294 | 40,693 | |
Toll Brothers, Inc. | 479,700 | 20,282 | |
135,473 | |||
Internet & Direct Marketing Retail - 6.5% | |||
Alibaba Group Holding Ltd. sponsored ADR (b) | 585,255 | 178,321 | |
Amazon.com, Inc. (b) | 56,128 | 170,413 | |
Pinduoduo, Inc. ADR (b) | 104,289 | 9,384 | |
358,118 | |||
Specialty Retail - 0.4% | |||
Ulta Beauty, Inc. (b) | 96,200 | 19,891 | |
Textiles, Apparel & Luxury Goods - 0.9% | |||
LVMH Moet Hennessy Louis Vuitton SE | 32,938 | 15,350 | |
LVMH Moet Hennessy Louis Vuitton SE | 46,404 | 21,752 | |
Prada SpA (b) | 3,036,300 | 11,926 | |
49,028 | |||
TOTAL CONSUMER DISCRETIONARY | 690,334 | ||
CONSUMER STAPLES - 4.2% | |||
Beverages - 1.7% | |||
Kweichow Moutai Co. Ltd. (A Shares) | 88,800 | 22,211 | |
Monster Beverage Corp. (b) | 923,038 | 70,677 | |
92,888 | |||
Household Products - 2.0% | |||
Energizer Holdings, Inc. (c) | 1,026,480 | 40,392 | |
Reckitt Benckiser Group PLC | 794,963 | 70,027 | |
110,419 | |||
Tobacco - 0.5% | |||
Swedish Match Co. AB | 346,000 | 26,075 | |
TOTAL CONSUMER STAPLES | 229,382 | ||
FINANCIALS - 4.9% | |||
Banks - 1.6% | |||
Comerica, Inc. | 469,400 | 21,362 | |
HDFC Bank Ltd. sponsored ADR (b) | 190,300 | 10,931 | |
M&T Bank Corp. | 359,826 | 37,271 | |
Wintrust Financial Corp. | 371,200 | 18,274 | |
87,838 | |||
Capital Markets - 1.4% | |||
CME Group, Inc. | 274,838 | 41,424 | |
Morningstar, Inc. | 167,795 | 31,945 | |
Tradeweb Markets, Inc. Class A | 25,500 | 1,389 | |
74,758 | |||
Consumer Finance - 0.7% | |||
Capital One Financial Corp. | 533,465 | 38,986 | |
Diversified Financial Services - 0.6% | |||
Berkshire Hathaway, Inc. Class B (b) | 140,259 | 28,318 | |
MultiPlan Corp. (d) | 1,064,462 | 6,994 | |
MultiPlan Corp. warrants (b)(d) | 52,696 | 0 | |
35,312 | |||
Insurance - 0.6% | |||
Arthur J. Gallagher & Co. | 314,941 | 32,663 | |
Thrifts & Mortgage Finance - 0.0% | |||
Rocket Cos., Inc. (b)(c) | 150,800 | 2,749 | |
TOTAL FINANCIALS | 272,306 | ||
HEALTH CARE - 18.3% | |||
Biotechnology - 2.9% | |||
Alnylam Pharmaceuticals, Inc. (b) | 40,100 | 4,931 | |
Applied Therapeutics, Inc. (b) | 320,740 | 5,218 | |
Biogen, Inc. (b) | 34,200 | 8,621 | |
BioNTech SE ADR (b)(c) | 68,519 | 5,849 | |
CRISPR Therapeutics AG (b) | 42,600 | 3,912 | |
Gamida Cell Ltd. (b) | 645,370 | 3,278 | |
Hookipa Pharma, Inc. (b) | 21,434 | 201 | |
Innovent Biologics, Inc. (a)(b) | 1,008,301 | 7,440 | |
Insmed, Inc. (b) | 187,700 | 6,183 | |
Neurocrine Biosciences, Inc. (b) | 321,513 | 31,724 | |
Prelude Therapeutics, Inc. | 24,000 | 846 | |
Regeneron Pharmaceuticals, Inc. (b) | 145,022 | 78,828 | |
Sarepta Therapeutics, Inc. (b) | 19,100 | 2,596 | |
Seres Therapeutics, Inc. (b) | 112,300 | 3,132 | |
162,759 | |||
Health Care Equipment & Supplies - 3.9% | |||
Axonics Modulation Technologies, Inc. (b) | 136,100 | 6,382 | |
Danaher Corp. | 212,939 | 48,878 | |
Haemonetics Corp. (b) | 345,310 | 34,907 | |
Hologic, Inc. (b) | 729,700 | 50,218 | |
Intuitive Surgical, Inc. (b) | 61,925 | 41,309 | |
Nevro Corp. (b) | 78,807 | 11,759 | |
Outset Medical, Inc. | 41,700 | 1,938 | |
Penumbra, Inc. (b) | 71,061 | 18,549 | |
213,940 | |||
Health Care Providers & Services - 2.6% | |||
Centene Corp. (b) | 450,500 | 26,625 | |
Guardant Health, Inc. (b) | 38,988 | 4,158 | |
HealthEquity, Inc. (b) | 178,618 | 9,197 | |
UnitedHealth Group, Inc. | 330,692 | 100,907 | |
140,887 | |||
Health Care Technology - 1.4% | |||
Change Healthcare, Inc. (b) | 2,406,000 | 34,045 | |
Inspire Medical Systems, Inc. (b) | 107,689 | 12,861 | |
Schrodinger, Inc. | 72,800 | 3,551 | |
Simulations Plus, Inc. | 47,300 | 3,066 | |
Veeva Systems, Inc. Class A (b) | 92,860 | 25,077 | |
78,600 | |||
Life Sciences Tools & Services - 3.3% | |||
10X Genomics, Inc. (b) | 96,653 | 13,232 | |
Berkeley Lights, Inc. (b) | 196,000 | 14,224 | |
Bio-Rad Laboratories, Inc. Class A (b) | 13,100 | 7,682 | |
Bio-Techne Corp. | 11,400 | 2,877 | |
Bruker Corp. | 550,148 | 23,403 | |
Charles River Laboratories International, Inc. (b) | 87,100 | 19,833 | |
Codexis, Inc. (b) | 429,440 | 5,716 | |
Fluidigm Corp. (b)(c) | 818,100 | 4,696 | |
Nanostring Technologies, Inc. (b) | 262,403 | 9,617 | |
Thermo Fisher Scientific, Inc. | 173,818 | 82,237 | |
183,517 | |||
Pharmaceuticals - 4.2% | |||
AstraZeneca PLC sponsored ADR | 1,204,451 | 60,415 | |
Eli Lilly & Co. | 565,585 | 73,786 | |
Horizon Therapeutics PLC (b) | 578,965 | 43,382 | |
Reata Pharmaceuticals, Inc. (b) | 31,900 | 3,723 | |
Revance Therapeutics, Inc. (b) | 241,000 | 6,237 | |
Zoetis, Inc. Class A | 266,720 | 42,288 | |
229,831 | |||
TOTAL HEALTH CARE | 1,009,534 | ||
INDUSTRIALS - 9.1% | |||
Aerospace & Defense - 1.0% | |||
HEICO Corp. Class A | 212,319 | 19,852 | |
Northrop Grumman Corp. | 84,200 | 24,403 | |
TransDigm Group, Inc. | 27,200 | 12,986 | |
57,241 | |||
Air Freight & Logistics - 0.1% | |||
Expeditors International of Washington, Inc. | 34,808 | 3,076 | |
Airlines - 0.5% | |||
Ryanair Holdings PLC sponsored ADR (b) | 316,526 | 25,512 | |
Building Products - 0.5% | |||
Builders FirstSource, Inc. (b) | 177,700 | 5,384 | |
Fortune Brands Home & Security, Inc. | 268,200 | 21,689 | |
27,073 | |||
Electrical Equipment - 0.9% | |||
Bloom Energy Corp. Class A (b) | 139,700 | 1,766 | |
Generac Holdings, Inc. (b) | 234,473 | 49,275 | |
51,041 | |||
Industrial Conglomerates - 1.4% | |||
General Electric Co. | 10,468,900 | 77,679 | |
Machinery - 2.0% | |||
Deere & Co. | 230,600 | 52,095 | |
ESCO Technologies, Inc. | 87,290 | 7,305 | |
Ingersoll Rand, Inc. (b) | 1,335,345 | 46,657 | |
Woodward, Inc. | 60,400 | 4,805 | |
110,862 | |||
Professional Services - 1.3% | |||
Dun & Bradstreet Holdings, Inc. (b)(c) | 188,900 | 4,881 | |
Equifax, Inc. | 109,400 | 14,944 | |
Experian PLC | 1,145,681 | 41,971 | |
Upwork, Inc. (b) | 480,881 | 8,872 | |
70,668 | |||
Road & Rail - 1.1% | |||
Rumo SA (b) | 3,558,700 | 11,375 | |
Uber Technologies, Inc. (b) | 1,497,473 | 50,031 | |
61,406 | |||
Trading Companies & Distributors - 0.3% | |||
BMC Stock Holdings, Inc. (b) | 136,900 | 5,420 | |
Fastenal Co. | 273,300 | 11,815 | |
17,235 | |||
TOTAL INDUSTRIALS | 501,793 | ||
INFORMATION TECHNOLOGY - 30.5% | |||
Electronic Equipment & Components - 0.7% | |||
II-VI, Inc. (b) | 321,400 | 14,614 | |
Zebra Technologies Corp. Class A (b) | 80,047 | 22,705 | |
37,319 | |||
IT Services - 3.3% | |||
Adyen BV (a)(b) | 9,500 | 15,967 | |
Black Knight, Inc. (b) | 436,017 | 38,348 | |
CACI International, Inc. Class A (b) | 169,104 | 35,263 | |
MongoDB, Inc. Class A (b) | 118,019 | 26,964 | |
Snowflake Computing, Inc. (c) | 16,200 | 4,050 | |
Square, Inc. (b) | 268,730 | 41,621 | |
Visa, Inc. Class A | 105,563 | 19,182 | |
181,395 | |||
Semiconductors & Semiconductor Equipment - 10.1% | |||
Allegro MicroSystems LLC (b) | 35,600 | 651 | |
Array Technologies, Inc. | 191,000 | 7,038 | |
ASML Holding NV | 89,299 | 32,256 | |
Enphase Energy, Inc. (b) | 193,095 | 18,941 | |
Lam Research Corp. | 112,698 | 38,552 | |
NVIDIA Corp. | 353,334 | 177,148 | |
NXP Semiconductors NV | 561,178 | 75,826 | |
Qualcomm, Inc. | 1,343,847 | 165,777 | |
SiTime Corp. | 79,200 | 6,612 | |
SolarEdge Technologies, Inc. (b) | 54,441 | 14,029 | |
Universal Display Corp. | 121,928 | 24,180 | |
561,010 | |||
Software - 12.6% | |||
Adobe, Inc. (b) | 289,924 | 129,625 | |
Agora, Inc. ADR (b) | 7,600 | 293 | |
Cloudflare, Inc. (b) | 127,700 | 6,637 | |
FireEye, Inc. (b) | 744,700 | 10,307 | |
JFrog Ltd. (c) | 7,500 | 543 | |
Manhattan Associates, Inc. (b) | 195,348 | 16,702 | |
Microsoft Corp. | 2,179,710 | 441,325 | |
NICE Systems Ltd. sponsored ADR (b) | 61,600 | 14,061 | |
Salesforce.com, Inc. (b) | 331,472 | 76,991 | |
696,484 | |||
Technology Hardware, Storage & Peripherals - 3.8% | |||
Apple, Inc. | 1,517,608 | 165,207 | |
Samsung Electronics Co. Ltd. | 899,340 | 45,107 | |
210,314 | |||
TOTAL INFORMATION TECHNOLOGY | 1,686,522 | ||
MATERIALS - 3.3% | |||
Chemicals - 2.1% | |||
Air Products & Chemicals, Inc. | 116,942 | 32,304 | |
DuPont de Nemours, Inc. | 451,500 | 25,681 | |
LG Chemical Ltd. | 15,230 | 8,286 | |
Sherwin-Williams Co. | 67,845 | 46,676 | |
112,947 | |||
Construction Materials - 0.3% | |||
Eagle Materials, Inc. | 216,000 | 18,414 | |
Metals & Mining - 0.9% | |||
Barrick Gold Corp. | 1,928,263 | 51,542 | |
TOTAL MATERIALS | 182,903 | ||
REAL ESTATE - 1.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.8% | |||
Prologis (REIT), Inc. | 433,905 | 43,043 | |
Real Estate Management & Development - 0.4% | |||
CBRE Group, Inc. (b) | 341,900 | 17,232 | |
KE Holdings, Inc. ADR (b) | 120,300 | 8,391 | |
25,623 | |||
TOTAL REAL ESTATE | 68,666 | ||
UTILITIES - 0.9% | |||
Electric Utilities - 0.2% | |||
NextEra Energy, Inc. | 149,736 | 10,962 | |
Water Utilities - 0.7% | |||
American Water Works Co., Inc. | 242,927 | 36,563 | |
TOTAL UTILITIES | 47,525 | ||
TOTAL COMMON STOCKS | |||
(Cost $3,798,236) | 5,480,786 | ||
Preferred Stocks - 0.7% | |||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.1% | |||
Health Care Technology - 0.1% | |||
Vor Biopharma, Inc. (d)(e) | 4,998,076 | 2,599 | |
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Illuminated Holdings, Inc.: | |||
Series C2 (d)(e) | 110,923 | 3,050 | |
Series C3 (d)(e) | 138,654 | 3,813 | |
6,863 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 9,462 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
ENERGY - 0.5% | |||
Oil, Gas & Consumable Fuels - 0.5% | |||
Petroleo Brasileiro SA - Petrobras sponsored ADR | 4,065,623 | 26,955 | |
TOTAL PREFERRED STOCKS | |||
(Cost $74,364) | 36,417 | ||
Money Market Funds - 0.5% | |||
Fidelity Securities Lending Cash Central Fund 0.11% (f)(g) | |||
(Cost $26,149) | 26,146,074 | 26,149 | |
TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
(Cost $3,898,749) | 5,543,352 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (20,268) | ||
NET ASSETS - 100% | $5,523,084 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) 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 $52,321,000 or 0.9% of net assets.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Restricted securities (including private placements) - 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 $16,456,000 or 0.3% of net assets.
(e) Level 3 security
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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) |
Illuminated Holdings, Inc. Series C2 | 7/7/20 | $2,773 |
Illuminated Holdings, Inc. Series C3 | 7/7/20 | $4,160 |
MultiPlan Corp. | 10/8/20 | $10,539 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Vor Biopharma, Inc. | 6/30/20 | $2,599 |
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 | $95 |
Fidelity Securities Lending Cash Central Fund | 1,077 |
Total | $1,172 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, 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: | ||||
Communication Services | $791,821 | $636,888 | $154,933 | $-- |
Consumer Discretionary | 690,334 | 668,582 | 21,752 | -- |
Consumer Staples | 229,382 | 137,144 | 92,238 | -- |
Energy | 26,955 | 26,955 | -- | -- |
Financials | 272,306 | 265,312 | 6,994 | -- |
Health Care | 1,012,133 | 1,009,534 | -- | 2,599 |
Industrials | 501,793 | 459,822 | 41,971 | -- |
Information Technology | 1,686,522 | 1,625,448 | 61,074 | -- |
Materials | 189,766 | 174,617 | 8,286 | 6,863 |
Real Estate | 68,666 | 68,666 | -- | -- |
Utilities | 47,525 | 47,525 | -- | -- |
Money Market Funds | 26,149 | 26,149 | -- | -- |
Total Investments in Securities: | $5,543,352 | $5,146,642 | $387,248 | $9,462 |
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 | 81.3% |
Cayman Islands | 6.5% |
Netherlands | 3.1% |
Ireland | 1.4% |
United Kingdom | 1.3% |
Korea (South) | 1.0% |
Others (Individually Less Than 1%) | 5.4% |
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) | October 31, 2020 | |
Assets | ||
Investment in securities, at value (including securities loaned of $25,012) — See accompanying schedule: Unaffiliated issuers (cost $3,872,600) | $5,517,203 | |
Fidelity Central Funds (cost $26,149) | 26,149 | |
Total Investment in Securities (cost $3,898,749) | $5,543,352 | |
Receivable for investments sold | 40,907 | |
Receivable for fund shares sold | 1,269 | |
Dividends receivable | 1,189 | |
Distributions receivable from Fidelity Central Funds | 8 | |
Prepaid expenses | 9 | |
Other receivables | 173 | |
Total assets | 5,586,907 | |
Liabilities | ||
Payable to custodian bank | $4,570 | |
Payable for investments purchased | 24,665 | |
Payable for fund shares redeemed | 4,054 | |
Accrued management fee | 3,581 | |
Other affiliated payables | 646 | |
Other payables and accrued expenses | 147 | |
Collateral on securities loaned | 26,160 | |
Total liabilities | 63,823 | |
Net Assets | $5,523,084 | |
Net Assets consist of: | ||
Paid in capital | $3,402,928 | |
Total accumulated earnings (loss) | 2,120,156 | |
Net Assets | $5,523,084 | |
Net Asset Value and Maximum Offering Price | ||
Capital Appreciation: | ||
Net Asset Value, offering price and redemption price per share ($5,022,804 ÷ 126,912 shares) | $39.58 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($500,280 ÷ 12,603 shares) | $39.70 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2020 | |
Investment Income | ||
Dividends | $49,344 | |
Income from Fidelity Central Funds (including $1,077 from security lending) | 1,172 | |
Total income | 50,516 | |
Expenses | ||
Management fee | ||
Basic fee | $28,635 | |
Performance adjustment | 7,107 | |
Transfer agent fees | 6,366 | |
Accounting fees | 1,097 | |
Custodian fees and expenses | 154 | |
Independent trustees' fees and expenses | 31 | |
Registration fees | 68 | |
Audit | 61 | |
Legal | 9 | |
Interest | 32 | |
Miscellaneous | 71 | |
Total expenses before reductions | 43,631 | |
Expense reductions | (328) | |
Total expenses after reductions | 43,303 | |
Net investment income (loss) | 7,213 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 539,159 | |
Fidelity Central Funds | (12) | |
Foreign currency transactions | (231) | |
Total net realized gain (loss) | 538,916 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 576,545 | |
Assets and liabilities in foreign currencies | 10 | |
Total change in net unrealized appreciation (depreciation) | 576,555 | |
Net gain (loss) | 1,115,471 | |
Net increase (decrease) in net assets resulting from operations | $1,122,684 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2020 | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $7,213 | $42,505 |
Net realized gain (loss) | 538,916 | 852,937 |
Change in net unrealized appreciation (depreciation) | 576,555 | (208,274) |
Net increase (decrease) in net assets resulting from operations | 1,122,684 | 687,168 |
Distributions to shareholders | (691,286) | (693,623) |
Share transactions - net increase (decrease) | (440,538) | (955,360) |
Total increase (decrease) in net assets | (9,140) | (961,815) |
Net Assets | ||
Beginning of period | 5,532,224 | 6,494,039 |
End of period | $5,523,084 | $5,532,224 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Capital Appreciation Fund
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.16 | $36.33 | $37.90 | $31.75 | $37.03 |
Income from Investment Operations | |||||
Net investment income (loss)A | .04 | .24 | .29 | .38 | .34 |
Net realized and unrealized gain (loss) | 7.95 | 3.53 | 2.15 | 7.55 | (1.34) |
Total from investment operations | 7.99 | 3.77 | 2.44 | 7.93 | (1.00) |
Distributions from net investment income | (.24) | (.27) | (.34) | (.39) | (.27) |
Distributions from net realized gain | (4.34) | (3.67) | (3.67) | (1.39) | (4.01) |
Total distributions | (4.57)B | (3.94) | (4.01) | (1.78) | (4.28) |
Net asset value, end of period | $39.58 | $36.16 | $36.33 | $37.90 | $31.75 |
Total ReturnC | 24.73% | 12.24% | 6.93% | 25.93% | (3.06)% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .82% | .62% | .54% | .51% | .61% |
Expenses net of fee waivers, if any | .82% | .62% | .54% | .51% | .61% |
Expenses net of all reductions | .82% | .61% | .53% | .50% | .60% |
Net investment income (loss) | .12% | .69% | .77% | 1.09% | 1.05% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $5,023 | $4,668 | $4,792 | $5,157 | $4,809 |
Portfolio turnover rateF | 61%G | 122% | 101% | 129% | 120% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Capital Appreciation Fund Class K
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $36.25 | $36.42 | $37.99 | $31.83 | $37.11 |
Income from Investment Operations | |||||
Net investment income (loss)A | .07 | .27 | .33 | .41 | .37 |
Net realized and unrealized gain (loss) | 7.98 | 3.54 | 2.15 | 7.57 | (1.33) |
Total from investment operations | 8.05 | 3.81 | 2.48 | 7.98 | (.96) |
Distributions from net investment income | (.26) | (.31) | (.37) | (.43) | (.31) |
Distributions from net realized gain | (4.34) | (3.67) | (3.67) | (1.39) | (4.01) |
Total distributions | (4.60) | (3.98) | (4.05)B | (1.82) | (4.32) |
Net asset value, end of period | $39.70 | $36.25 | $36.42 | $37.99 | $31.83 |
Total ReturnC | 24.85% | 12.33% | 7.03% | 26.04% | (2.93)% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .74% | .52% | .45% | .41% | .50% |
Expenses net of fee waivers, if any | .74% | .52% | .44% | .41% | .50% |
Expenses net of all reductions | .73% | .52% | .43% | .40% | .48% |
Net investment income (loss) | .21% | .79% | .86% | 1.20% | 1.17% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $500 | $864 | $1,702 | $2,174 | $2,103 |
Portfolio turnover rateF | 61%G | 122% | 101% | 129% | 120% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
(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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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 October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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) for the Fund, 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 of $56 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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), redemptions in kind, 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 | $1,791,116 |
Gross unrealized depreciation | (151,564) |
Net unrealized appreciation (depreciation) | $1,639,552 |
Tax Cost | $3,903,800 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $6,662 |
Undistributed long-term capital gain | $473,995 |
Net unrealized appreciation (depreciation) on securities and other investments | $1,639,555 |
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $36,130 | $ 96,189 |
Long-term Capital Gains | 655,156 | 597,434 |
Total | $691,286 | $ 693,623 |
Restricted Securities (including Private Placements). 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 and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Capital Appreciation Fund | 3,296,989 | 4,221,349 |
Unaffiliated Redemptions In-Kind. During the period, 6,200 shares of the Fund were redeemed in-kind for investments, and cash with a value of $167,637. The net realized gain of $24,513 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annual management fee rate, including the performance adjustment, was .66% 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 LLC (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. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each applicable class were as follows:
Amount | % of Class-Level Average Net Assets | |
Capital Appreciation | $6,083 | .13 |
Class K | 283 | .04 |
$6,366 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Capital Appreciation Fund | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Capital Appreciation Fund | $76 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Capital Appreciation Fund | Borrower | $10,995 | .92% | $32 |
Interfund Trades. 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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $26.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Capital Appreciation Fund | $13 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Capital Appreciation Fund | $107 | $2 | $ 2,902 |
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Capital Appreciation Fund | $12,504 | .59% | $–(a) |
(a) Amount represents less than $500.
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 $305 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $23.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Capital Appreciation | $583,889 | $512,927 |
Class K | 107,397 | 180,696 |
Total | $691,286 | $693,623 |
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 | |
Year ended October 31, 2020 | Year ended October 31, 2019 | Year ended October 31, 2020 | Year ended October 31, 2019 | |
Capital Appreciation | ||||
Shares sold | 4,773 | 3,860 | $166,755 | $130,536 |
Reinvestment of distributions | 16,833 | 15,711 | 551,617 | 485,315 |
Shares redeemed | (23,787) | (22,392) | (810,014) | (754,833) |
Net increase (decrease) | (2,181) | (2,821) | $(91,642) | $(138,982) |
Class K | ||||
Shares sold | 2,769 | 3,353 | $94,021 | $111,851 |
Reinvestment of distributions | 3,269 | 5,840 | 107,397 | 180,696 |
Shares redeemed | (17,282)(a) | (32,070) | (550,314)(a) | (1,108,927) |
Net increase (decrease) | (11,244) | (22,877) | $(348,896) | $(816,380) |
(a) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Capital Appreciation Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Capital Appreciation Fund (one of the funds constituting Fidelity Capital Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statement of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, issuers of privately offered securities and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2020
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Capital Appreciation Fund | ||||
Capital Appreciation | .90% | |||
Actual | $1,000.00 | $1,236.10 | $5.06 | |
Hypothetical-C | $1,000.00 | $1,020.61 | $4.57 | |
Class K | .86% | |||
Actual | $1,000.00 | $1,236.80 | $4.84 | |
Hypothetical-C | $1,000.00 | $1,020.81 | $4.37 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Capital Appreciation Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Capital Appreciation Fund | ||||
Capital Appreciation | 12/07/20 | 12/04/20 | $0.012 | $3.487 |
Class K | 12/07/20 | 12/04/20 | $0.033 | $3.487 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2020, $473,995,074, or, if subsequently determined to be different, the net capital gain of such year.
Capital Appreciation and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Capital Appreciation and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 1,874,890,377.874 | 70.330 |
Against | 427,718,627.068 | 16.044 |
Abstain | 281,488,951.285 | 10.559 |
Broker Non-Vote | 81,762,623.360 | 3.067 |
TOTAL | 2,665,860,579.586 | 100.000 |
PROPOSAL 5
A shareholder proposal to institute procedures to avoid holding investments in companies that contribute to genocide or crimes against humanity.
# of Votes | % of Votes | |
Affirmative | 832,842,689.001 | 31.241 |
Against | 1,536,910,407.039 | 57.652 |
Abstain | 214,095,220.872 | 8.031 |
Broker Non-Vote | 82,012,262.675 | 3.076 |
TOTAL | 2,665,860,579.586 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. | ||
Proposal 5 was not approved by shareholders. |
CAF-ANN-1220
1.538293.123
Fidelity® Disciplined Equity Fund
October 31, 2020
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fipro_logo.jpg)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Disciplined Equity Fund | 21.92% | 11.40% | 12.14% |
Class K | 21.99% | 11.50% | 12.27% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Disciplined Equity Fund, a class of the fund, on October 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648427831_740.jpg)
Period Ending Values | ||
$31,452 | Fidelity® Disciplined Equity Fund | |
$33,987 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Portfolio Manager Kwasi Dadzie-Yeboah: For the fiscal year ending October 31, 2020, the fund's share classes gained about 22%, outperforming the 9.71% result of the benchmark S&P 500® Index. The primary contributor to performance versus the benchmark was an overweighting in the information technology sector, especially within the software & services industry. Picks among health care stocks and an underweighting in the lagging energy sector also helped. The biggest individual relative contributor was an overweight position in Nvidia (+149%). Nvidia was among the fund's biggest holdings. Our second-largest relative contributor this period was avoiding Exxon Mobil, a benchmark component that returned about -48%. Lack of exposure to Wells Fargo, a benchmark component that returned about -57%, also aided performance. In contrast, the biggest detractor from performance versus the benchmark was an overweighting in industrials. Also detracting from the fund's relative result was an overweighting in health care and an underweighting among communication services stocks. The biggest individual relative detractor was a smaller-than-benchmark position in Apple (+76%), which was among our largest holdings. Another notable relative detractor was an outsized stake in Stryker (-6%). Further weighing on the portfolio’s relative return was an overweighting in The Booking Holdings (-23%). Notable changes in positioning include decreased exposure to the financials sector and a higher allocation to health care.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
Microsoft Corp. | 6.7 |
Amazon.com, Inc. | 5.5 |
Apple, Inc. | 4.2 |
Alphabet, Inc. Class A | 3.0 |
Facebook, Inc. Class A | 2.9 |
Visa, Inc. Class A | 2.2 |
UnitedHealth Group, Inc. | 2.2 |
NVIDIA Corp. | 2.1 |
Danaher Corp. | 1.8 |
MasterCard, Inc. Class A | 1.7 |
32.3 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Information Technology | 34.1 |
Health Care | 18.2 |
Consumer Discretionary | 13.6 |
Communication Services | 10.9 |
Industrials | 9.8 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks | 99.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 2.9%
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 99.8% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 10.9% | |||
Entertainment - 3.4% | |||
Activision Blizzard, Inc. | 131,374 | $9,949 | |
Electronic Arts, Inc. (a) | 53,455 | 6,406 | |
Netflix, Inc. (a) | 39,600 | 18,839 | |
Spotify Technology SA (a) | 9,300 | 2,231 | |
The Walt Disney Co. | 129,369 | 15,686 | |
53,111 | |||
Interactive Media & Services - 7.5% | |||
Alphabet, Inc.: | |||
Class A (a) | 28,692 | 46,369 | |
Class C (a) | 12,866 | 20,856 | |
Facebook, Inc. Class A (a) | 171,697 | 45,175 | |
InterActiveCorp (a) | 8,500 | 1,026 | |
Match Group, Inc. (a) | 30,246 | 3,532 | |
116,958 | |||
TOTAL COMMUNICATION SERVICES | 170,069 | ||
CONSUMER DISCRETIONARY - 13.6% | |||
Distributors - 0.2% | |||
Pool Corp. | 7,800 | 2,729 | |
Diversified Consumer Services - 0.3% | |||
Service Corp. International | 91,900 | 4,256 | |
Hotels, Restaurants & Leisure - 1.5% | |||
Domino's Pizza, Inc. | 18,500 | 6,999 | |
Hilton Worldwide Holdings, Inc. | 61,300 | 5,383 | |
Planet Fitness, Inc. (a) | 38,100 | 2,258 | |
Starbucks Corp. | 112,200 | 9,757 | |
24,397 | |||
Household Durables - 1.3% | |||
Lennar Corp. Class A | 115,000 | 8,076 | |
NVR, Inc. (a) | 3,200 | 12,650 | |
20,726 | |||
Internet & Direct Marketing Retail - 5.9% | |||
Amazon.com, Inc. (a) | 28,014 | 85,055 | |
The Booking Holdings, Inc. (a) | 4,193 | 6,803 | |
91,858 | |||
Multiline Retail - 0.7% | |||
Dollar General Corp. | 55,500 | 11,583 | |
Specialty Retail - 2.3% | |||
Best Buy Co., Inc. | 70,184 | 7,829 | |
Floor & Decor Holdings, Inc. Class A (a) | 64,800 | 4,730 | |
The Home Depot, Inc. | 87,111 | 23,233 | |
35,792 | |||
Textiles, Apparel & Luxury Goods - 1.4% | |||
lululemon athletica, Inc. (a) | 9,000 | 2,874 | |
NIKE, Inc. Class B | 156,200 | 18,756 | |
21,630 | |||
TOTAL CONSUMER DISCRETIONARY | 212,971 | ||
CONSUMER STAPLES - 3.1% | |||
Beverages - 0.4% | |||
Monster Beverage Corp. (a) | 79,100 | 6,057 | |
Food & Staples Retailing - 1.2% | |||
Costco Wholesale Corp. | 51,700 | 18,489 | |
Food Products - 0.4% | |||
Mondelez International, Inc. | 129,800 | 6,895 | |
Household Products - 0.1% | |||
Procter & Gamble Co. | 10,100 | 1,385 | |
Personal Products - 1.0% | |||
Estee Lauder Companies, Inc. Class A | 68,400 | 15,025 | |
TOTAL CONSUMER STAPLES | 47,851 | ||
FINANCIALS - 6.6% | |||
Banks - 3.1% | |||
Bank of America Corp. | 736,735 | 17,461 | |
JPMorgan Chase & Co. | 243,500 | 23,873 | |
M&T Bank Corp. | 74,800 | 7,748 | |
49,082 | |||
Capital Markets - 3.2% | |||
CME Group, Inc. | 39,853 | 6,007 | |
Moody's Corp. | 63,900 | 16,799 | |
MSCI, Inc. | 48,900 | 17,107 | |
S&P Global, Inc. | 29,600 | 9,553 | |
49,466 | |||
Insurance - 0.3% | |||
Aon PLC | 27,500 | 5,060 | |
TOTAL FINANCIALS | 103,608 | ||
HEALTH CARE - 18.2% | |||
Biotechnology - 1.4% | |||
Alexion Pharmaceuticals, Inc. (a) | 42,500 | 4,893 | |
Regeneron Pharmaceuticals, Inc. (a) | 16,500 | 8,969 | |
Vertex Pharmaceuticals, Inc. (a) | 39,000 | 8,126 | |
21,988 | |||
Health Care Equipment & Supplies - 8.5% | |||
Becton, Dickinson & Co. | 43,841 | 10,133 | |
Boston Scientific Corp. (a) | 166,539 | 5,707 | |
Danaher Corp. | 121,900 | 27,981 | |
DexCom, Inc. (a) | 28,200 | 9,012 | |
Edwards Lifesciences Corp. (a) | 130,400 | 9,348 | |
Hologic, Inc. (a) | 112,900 | 7,770 | |
IDEXX Laboratories, Inc. (a) | 26,200 | 11,130 | |
Intuitive Surgical, Inc. (a) | 19,200 | 12,808 | |
Masimo Corp. (a) | 36,200 | 8,102 | |
Quidel Corp. (a) | 14,500 | 3,890 | |
ResMed, Inc. | 26,000 | 4,990 | |
Stryker Corp. | 68,600 | 13,858 | |
West Pharmaceutical Services, Inc. | 32,400 | 8,815 | |
133,544 | |||
Health Care Providers & Services - 3.5% | |||
Anthem, Inc. | 37,062 | 10,111 | |
Cigna Corp. | 63,400 | 10,586 | |
UnitedHealth Group, Inc. | 111,696 | 34,083 | |
54,780 | |||
Health Care Technology - 0.7% | |||
Veeva Systems, Inc. Class A (a) | 38,800 | 10,478 | |
Life Sciences Tools & Services - 2.6% | |||
Avantor, Inc. (a) | 135,100 | 3,144 | |
Bio-Rad Laboratories, Inc. Class A (a) | 12,700 | 7,448 | |
Bruker Corp. | 89,000 | 3,786 | |
Mettler-Toledo International, Inc. (a) | 6,100 | 6,087 | |
Thermo Fisher Scientific, Inc. | 43,680 | 20,666 | |
41,131 | |||
Pharmaceuticals - 1.5% | |||
Horizon Therapeutics PLC (a) | 136,200 | 10,205 | |
Zoetis, Inc. Class A | 79,616 | 12,623 | |
22,828 | |||
TOTAL HEALTH CARE | 284,749 | ||
INDUSTRIALS - 9.8% | |||
Aerospace & Defense - 1.9% | |||
Harris Corp. | 27,000 | 4,350 | |
HEICO Corp. Class A | 58,800 | 5,498 | |
Lockheed Martin Corp. | 21,237 | 7,436 | |
Northrop Grumman Corp. | 20,000 | 5,796 | |
Teledyne Technologies, Inc. (a) | 19,897 | 6,151 | |
29,231 | |||
Building Products - 0.5% | |||
Fortune Brands Home & Security, Inc. | 104,900 | 8,483 | |
Commercial Services & Supplies - 1.6% | |||
Cintas Corp. | 45,000 | 14,155 | |
Copart, Inc. (a) | 91,620 | 10,111 | |
24,266 | |||
Electrical Equipment - 1.5% | |||
AMETEK, Inc. | 106,954 | 10,503 | |
Generac Holdings, Inc. (a) | 65,000 | 13,660 | |
24,163 | |||
Industrial Conglomerates - 0.6% | |||
Roper Technologies, Inc. | 26,900 | 9,989 | |
Machinery - 2.0% | |||
Dover Corp. | 79,262 | 8,775 | |
Fortive Corp. | 100,600 | 6,197 | |
IDEX Corp. | 46,600 | 7,940 | |
ITT, Inc. | 142,300 | 8,611 | |
31,523 | |||
Professional Services - 0.7% | |||
CoStar Group, Inc. (a) | 4,100 | 3,377 | |
IHS Markit Ltd. | 92,900 | 7,513 | |
10,890 | |||
Road & Rail - 1.0% | |||
Norfolk Southern Corp. | 36,703 | 7,675 | |
Old Dominion Freight Lines, Inc. | 19,550 | 3,722 | |
Uber Technologies, Inc. (a) | 113,700 | 3,799 | |
15,196 | |||
TOTAL INDUSTRIALS | 153,741 | ||
INFORMATION TECHNOLOGY - 34.1% | |||
Electronic Equipment & Components - 1.8% | |||
Amphenol Corp. Class A | 84,700 | 9,558 | |
CDW Corp. | 36,200 | 4,438 | |
Keysight Technologies, Inc. (a) | 42,700 | 4,478 | |
Vontier Corp. (a) | 40,240 | 1,156 | |
Zebra Technologies Corp. Class A (a) | 31,800 | 9,020 | |
28,650 | |||
IT Services - 9.4% | |||
Accenture PLC Class A | 72,996 | 15,834 | |
Black Knight, Inc. (a) | 34,900 | 3,069 | |
CACI International, Inc. Class A (a) | 30,800 | 6,423 | |
EPAM Systems, Inc. (a) | 17,600 | 5,438 | |
FleetCor Technologies, Inc. (a) | 33,800 | 7,467 | |
Global Payments, Inc. | 59,726 | 9,421 | |
Jack Henry & Associates, Inc. | 17,200 | 2,550 | |
MasterCard, Inc. Class A | 90,173 | 26,028 | |
PayPal Holdings, Inc. (a) | 101,083 | 18,815 | |
Square, Inc. (a) | 81,500 | 12,623 | |
VeriSign, Inc. (a) | 26,900 | 5,130 | |
Visa, Inc. Class A | 191,423 | 34,783 | |
147,581 | |||
Semiconductors & Semiconductor Equipment - 3.5% | |||
Advanced Micro Devices, Inc. (a) | 21,300 | 1,604 | |
Lam Research Corp. | 37,503 | 12,829 | |
NVIDIA Corp. | 63,900 | 32,037 | |
Universal Display Corp. | 24,500 | 4,859 | |
Xilinx, Inc. | 23,100 | 2,742 | |
54,071 | |||
Software - 15.2% | |||
Adobe, Inc. (a) | 53,088 | 23,736 | |
Alarm.com Holdings, Inc. (a) | 10,600 | 618 | |
ANSYS, Inc. (a) | 19,800 | 6,027 | |
Aspen Technology, Inc. (a) | 11,200 | 1,230 | |
Atlassian Corp. PLC (a) | 13,400 | 2,568 | |
Autodesk, Inc. (a) | 33,600 | 7,914 | |
Cadence Design Systems, Inc. (a) | 61,500 | 6,726 | |
Ceridian HCM Holding, Inc. (a) | 57,200 | 4,932 | |
Coupa Software, Inc. (a) | 6,600 | 1,767 | |
Datadog, Inc. Class A (a) | 7,700 | 699 | |
Dynatrace, Inc. (a) | 80,500 | 2,842 | |
Fair Isaac Corp. (a) | 19,000 | 7,438 | |
Fortinet, Inc. (a) | 53,100 | 5,861 | |
HubSpot, Inc. (a) | 8,200 | 2,379 | |
Intuit, Inc. | 50,127 | 15,774 | |
Manhattan Associates, Inc. (a) | 7,700 | 658 | |
Microsoft Corp. | 520,820 | 105,444 | |
Paycom Software, Inc. (a) | 14,400 | 5,243 | |
Salesforce.com, Inc. (a) | 93,661 | 21,755 | |
ServiceNow, Inc. (a) | 19,000 | 9,454 | |
Synopsys, Inc. (a) | 18,800 | 4,021 | |
237,086 | |||
Technology Hardware, Storage & Peripherals - 4.2% | |||
Apple, Inc. | 602,968 | 65,639 | |
TOTAL INFORMATION TECHNOLOGY | 533,027 | ||
MATERIALS - 1.2% | |||
Chemicals - 1.2% | |||
Air Products & Chemicals, Inc. | 28,900 | 7,983 | |
Sherwin-Williams Co. | 15,000 | 10,320 | |
18,303 | |||
REAL ESTATE - 1.5% | |||
Equity Real Estate Investment Trusts (REITs) - 1.2% | |||
American Tower Corp. | 49,000 | 11,253 | |
Equity Lifestyle Properties, Inc. | 53,000 | 3,137 | |
SBA Communications Corp. Class A | 18,200 | 5,285 | |
19,675 | |||
Real Estate Management & Development - 0.3% | |||
CBRE Group, Inc. (a) | 81,600 | 4,113 | |
TOTAL REAL ESTATE | 23,788 | ||
UTILITIES - 0.8% | |||
Electric Utilities - 0.8% | |||
NextEra Energy, Inc. | 158,400 | 11,596 | |
NRG Energy, Inc. | 47,081 | 1,489 | |
13,085 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,083,258) | 1,561,192 | ||
Money Market Funds - 0.2% | |||
Fidelity Cash Central Fund 0.10% (b) | |||
(Cost $2,355) | 2,354,072 | 2,355 | |
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $1,085,613) | 1,563,547 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | 136 | ||
NET ASSETS - 100% | $1,563,683 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $20 |
Fidelity Securities Lending Cash Central Fund | 23 |
Total | $43 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, 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: | ||||
Communication Services | $170,069 | $170,069 | $-- | $-- |
Consumer Discretionary | 212,971 | 212,971 | -- | -- |
Consumer Staples | 47,851 | 47,851 | -- | -- |
Financials | 103,608 | 103,608 | -- | -- |
Health Care | 284,749 | 284,749 | -- | -- |
Industrials | 153,741 | 153,741 | -- | -- |
Information Technology | 533,027 | 533,027 | -- | -- |
Materials | 18,303 | 18,303 | -- | -- |
Real Estate | 23,788 | 23,788 | -- | -- |
Utilities | 13,085 | 13,085 | -- | -- |
Money Market Funds | 2,355 | 2,355 | -- | -- |
Total Investments in Securities: | $1,563,547 | $1,563,547 | $-- | $-- |
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) | October 31, 2020 | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $1,083,258) | $1,561,192 | |
Fidelity Central Funds (cost $2,355) | 2,355 | |
Total Investment in Securities (cost $1,085,613) | $1,563,547 | |
Receivable for fund shares sold | 1,542 | |
Dividends receivable | 461 | |
Prepaid expenses | 2 | |
Other receivables | 8 | |
Total assets | 1,565,560 | |
Liabilities | ||
Payable for fund shares redeemed | 758 | |
Accrued management fee | 855 | |
Transfer agent fee payable | 165 | |
Other affiliated payables | 42 | |
Other payables and accrued expenses | 57 | |
Total liabilities | 1,877 | |
Net Assets | $1,563,683 | |
Net Assets consist of: | ||
Paid in capital | $1,123,846 | |
Total accumulated earnings (loss) | 439,837 | |
Net Assets | $1,563,683 | |
Net Asset Value and Maximum Offering Price | ||
Disciplined Equity: | ||
Net Asset Value, offering price and redemption price per share ($1,468,793 ÷ 32,298 shares) | $45.48 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($94,890 ÷ 2,089 shares) | $45.42 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2020 | |
Investment Income | ||
Dividends | $10,713 | |
Income from Fidelity Central Funds (including $23 from security lending) | 43 | |
Total income | 10,756 | |
Expenses | ||
Management fee | ||
Basic fee | $7,365 | |
Performance adjustment | 43 | |
Transfer agent fees | 1,733 | |
Accounting fees | 438 | |
Custodian fees and expenses | 19 | |
Independent trustees' fees and expenses | 8 | |
Registration fees | 71 | |
Audit | 56 | |
Legal | 12 | |
Miscellaneous | 19 | |
Total expenses before reductions | 9,764 | |
Expense reductions | (27) | |
Total expenses after reductions | 9,737 | |
Net investment income (loss) | 1,019 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,568 | |
Fidelity Central Funds | 1 | |
Total net realized gain (loss) | 2,569 | |
Change in net unrealized appreciation (depreciation) on investment securities | 261,401 | |
Net gain (loss) | 263,970 | |
Net increase (decrease) in net assets resulting from operations | $264,989 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2020 | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,019 | $11,314 |
Net realized gain (loss) | 2,569 | (36,901) |
Change in net unrealized appreciation (depreciation) | 261,401 | 165,807 |
Net increase (decrease) in net assets resulting from operations | 264,989 | 140,220 |
Distributions to shareholders | (7,348) | (154,355) |
Share transactions - net increase (decrease) | 25,387 | 14,679 |
Total increase (decrease) in net assets | 283,028 | 544 |
Net Assets | ||
Beginning of period | 1,280,655 | 1,280,111 |
End of period | $1,563,683 | $1,280,655 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Disciplined Equity Fund
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.51 | $38.32 | $38.96 | $32.26 | $34.19 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03 | .32 | .52 | .47 | .42 |
Net realized and unrealized gain (loss) | 8.16 | 3.53 | .41 | 6.72 | (.34)B |
Total from investment operations | 8.19 | 3.85 | .93 | 7.19 | .08 |
Distributions from net investment income | (.22) | (.53) | (.45) | (.49) | (.36) |
Distributions from net realized gain | – | (4.13) | (1.12) | – | (1.65) |
Total distributions | (.22) | (4.66) | (1.57) | (.49) | (2.01) |
Net asset value, end of period | $45.48 | $37.51 | $38.32 | $38.96 | $32.26 |
Total ReturnC | 21.92% | 12.01% | 2.37% | 22.51% | .16%B |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .71% | .51% | .53% | .54% | .68% |
Expenses net of fee waivers, if any | .71% | .51% | .53% | .54% | .68% |
Expenses net of all reductions | .71% | .51% | .53% | .54% | .68% |
Net investment income (loss) | .07% | .90% | 1.32% | 1.33% | 1.30% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $1,469 | $1,190 | $1,182 | $1,266 | $1,150 |
Portfolio turnover rateF | 35% | 108% | 181% | 184% | 179% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Disciplined Equity Fund Class K
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $37.47 | $38.29 | $38.93 | $32.23 | $34.16 |
Income from Investment Operations | |||||
Net investment income (loss)A | .06 | .35 | .56 | .51 | .45 |
Net realized and unrealized gain (loss) | 8.14 | 3.53 | .41 | 6.71 | (.34)B |
Total from investment operations | 8.20 | 3.88 | .97 | 7.22 | .11 |
Distributions from net investment income | (.25) | (.57) | (.49) | (.52) | (.39) |
Distributions from net realized gain | – | (4.13) | (1.12) | – | (1.65) |
Total distributions | (.25) | (4.70) | (1.61) | (.52) | (2.04) |
Net asset value, end of period | $45.42 | $37.47 | $38.29 | $38.93 | $32.23 |
Total ReturnC | 21.99% | 12.12% | 2.48% | 22.65% | .26%B |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .62% | .42% | .43% | .44% | .57% |
Expenses net of fee waivers, if any | .62% | .42% | .43% | .44% | .57% |
Expenses net of all reductions | .62% | .42% | .43% | .44% | .57% |
Net investment income (loss) | .16% | .99% | 1.41% | 1.43% | 1.41% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $95 | $91 | $99 | $111 | $104 |
Portfolio turnover rateF | 35% | 108% | 181% | 184% | 179% |
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 would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
(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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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 October 31, 2020 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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.
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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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 capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
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 | $494,692 |
Gross unrealized depreciation | (18,238) |
Net unrealized appreciation (depreciation) | $476,454 |
Tax Cost | $1,087,093 |
The tax-based components of distributable earnings as of period end were as follows:
Capital loss carryforward | $(36,337) |
Net unrealized appreciation (depreciation) on securities and other investments | $476,454 |
The Fund intends to elect to defer to its next fiscal year $280 of ordinary losses recognized during the period January 1, 2020 to October 31, 2020.
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(36,337) |
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $7,348 | $ 34,184 |
Long-term Capital Gains | – | 120,171 |
Total | $7,348 | $ 154,355 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Disciplined Equity Fund | 495,793 | 476,200 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annual management fee rate, including the performance adjustment, was .53% 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 LLC (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, 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. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Disciplined Equity | $1,693 | .13 |
Class K | 40 | .04 |
$1,733 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Disciplined Equity Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Disciplined Equity Fund | $5 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Disciplined Equity Fund | Borrower | $8,326 | .34% | $-* |
* Amount represents less than $500.
Interfund Trades. 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.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Disciplined Equity Fund | $3 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Disciplined Equity Fund | $1 | $– | $– |
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 $22 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Disciplined Equity | $6,759 | $142,401 |
Class K | 589 | 11,954 |
Total | $7,348 | $154,355 |
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 | |
Year ended October 31, 2020 | Year ended October 31, 2019 | Year ended October 31, 2020 | Year ended October 31, 2019 | |
Disciplined Equity | ||||
Shares sold | 4,659 | 607 | $204,960 | $21,231 |
Reinvestment of distributions | 161 | 4,102 | 6,258 | 132,529 |
Shares redeemed | (4,241) | (3,822) | (172,496) | (133,005) |
Net increase (decrease) | 579 | 887 | $38,722 | $20,755 |
Class K | ||||
Shares sold | 267 | 164 | $11,141 | $5,843 |
Reinvestment of distributions | 15 | 371 | 589 | 11,954 |
Shares redeemed | (615) | (687) | (25,065) | (23,873) |
Net increase (decrease) | (333) | (152) | $(13,335) | $(6,076) |
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Disciplined Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Disciplined Equity Fund (one of the funds constituting Fidelity Capital Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statement of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2020
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for the Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust[s] or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Disciplined Equity Fund | ||||
Disciplined Equity | .80% | |||
Actual | $1,000.00 | $1,176.70 | $4.38 | |
Hypothetical-C | $1,000.00 | $1,021.11 | $4.06 | |
Class K | .72% | |||
Actual | $1,000.00 | $1,177.00 | $3.94 | |
Hypothetical-C | $1,000.00 | $1,021.52 | $3.66 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The fund designates 100% and Class K designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% and Class K designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 458,043,685.618 | 72.171 |
Against | 90,403,904.468 | 14.244 |
Abstain | 55,808,828.735 | 8.793 |
Broker Non-Vote | 30,409,390.600 | 4.791 |
TOTAL | 634,665,809.421 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
FDE-ANN-1220
1.538372.123
Fidelity Flex® Funds
Fidelity Flex® Small Cap Fund
October 31, 2020
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fipro_logo.jpg)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
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 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants) 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Life of fundA |
Fidelity Flex® Small Cap Fund | 10.19% | 9.24% |
A From March 7, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Flex® Small Cap Fund on March 7, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648438201_740.jpg)
Period Ending Values | ||
$13,813 | Fidelity Flex® Small Cap Fund | |
$11,764 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Lead Manager Clint Lawrence and Co-Manager Patrick Venanzi: For the fiscal year ending October 31, 2020, the fund gained 10.19%, outperforming the -0.14% result of the benchmark Russell 2000® Index. Versus the benchmark, security selection was the primary contributor, especially within the health care sector. Strong picks in financials also boosted performance. Further helping were investment choices among information technology stocks, primarily driven by the software & services industry. Our non-benchmark stake in Insulet was the fund's biggest individual relative contributor, driven by an approximately 52% advance. We reduced our stake in the company the past 12 months. Also lifting performance was our overweighting in Bed Bath & Beyond, which gained about 127%. This was a position we established the past year. Another top relative contributor was an out-of-benchmark holding in argenx SE (+107%). We decreased our stake in the company during the period. In contrast, the biggest detractor from performance versus the benchmark was an underweighting in health care. Weak picks in the consumer discretionary sector, primarily within the consumer services industry, also hurt the fund's relative performance. Also detracting was an overweighting in financials. Our non-benchmark stake in Viper Energy Partners was the portfolio's largest individual relative detractor, due to its -68% result. Our position in Viper Energy Partners was sold the past year. Another notable relative detractor was an out-of-benchmark holding in Signature Bank (-7%). This was a position we established the past 12 months. Also hindering performance was an underweighting in Chegg, which gained 113%. Chegg was not held at period end. Notable changes in positioning include a higher allocation to the consumer discretionary and health care sectors.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
Renewable Energy Group, Inc. | 1.1 |
Crocs, Inc. | 1.1 |
ITT, Inc. | 1.1 |
AECOM | 1.0 |
SPX Flow, Inc. | 1.1 |
Jones Lang LaSalle, Inc. | 1.0 |
Regal Beloit Corp. | 1.0 |
Sterling Bancorp | 1.0 |
Western Alliance Bancorp. | 1.0 |
Jeld-Wen Holding, Inc. | 1.0 |
10.4 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Industrials | 18.1 |
Health Care | 17.4 |
Financials | 16.6 |
Consumer Discretionary | 16.4 |
Information Technology | 13.6 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks | 96.7% | |
Convertible Securities | 1.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.3% |
* Foreign investments - 14.4%
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 96.7% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.0% | |||
Entertainment - 0.8% | |||
Cinemark Holdings, Inc. | 3,369 | $27,592 | |
Gaia, Inc. Class A (a) | 673 | 6,824 | |
Take-Two Interactive Software, Inc. (a) | 242 | 37,491 | |
Zynga, Inc. (a) | 1,975 | 17,755 | |
89,662 | |||
Media - 1.2% | |||
Cardlytics, Inc. (a) | 264 | 19,488 | |
Cogeco Communications, Inc. | 312 | 21,732 | |
Nexstar Broadcasting Group, Inc. Class A | 1,016 | 83,718 | |
TechTarget, Inc. (a) | 338 | 14,804 | |
139,742 | |||
TOTAL COMMUNICATION SERVICES | 229,404 | ||
CONSUMER DISCRETIONARY - 16.3% | |||
Auto Components - 0.3% | |||
Lear Corp. | 101 | 12,202 | |
Standard Motor Products, Inc. | 366 | 16,763 | |
28,965 | |||
Diversified Consumer Services - 0.3% | |||
Arco Platform Ltd. Class A (a) | 725 | 24,708 | |
Grand Canyon Education, Inc. (a) | 159 | 12,461 | |
37,169 | |||
Hotels, Restaurants & Leisure - 2.9% | |||
Churchill Downs, Inc. | 304 | 45,342 | |
Dunkin' Brands Group, Inc. | 655 | 65,310 | |
Hilton Grand Vacations, Inc. (a) | 4,279 | 88,147 | |
International Game Technology PLC | 10,707 | 87,904 | |
Lindblad Expeditions Holdings (a) | 2,330 | 19,386 | |
Wingstop, Inc. | 211 | 24,546 | |
330,635 | |||
Household Durables - 3.2% | |||
Helen of Troy Ltd. (a) | 272 | 51,571 | |
KB Home | 1,672 | 53,922 | |
LGI Homes, Inc. (a) | 297 | 31,743 | |
M/I Homes, Inc. (a) | 407 | 16,654 | |
Taylor Morrison Home Corp. (a) | 2,091 | 45,166 | |
TopBuild Corp. (a) | 164 | 25,126 | |
TRI Pointe Homes, Inc. (a) | 6,162 | 101,242 | |
Whirlpool Corp. | 217 | 40,136 | |
365,560 | |||
Internet & Direct Marketing Retail - 1.4% | |||
1-800-FLOWERS.com, Inc. Class A (a) | 1,219 | 24,173 | |
Farfetch Ltd. Class A (a) | 1,101 | 30,971 | |
Kogan.Com Ltd. | 1,917 | 27,751 | |
Revolve Group, Inc. (a) | 1,300 | 23,504 | |
Stamps.com, Inc. (a) | 216 | 48,220 | |
154,619 | |||
Leisure Products - 0.5% | |||
Academy Sports & Outdoors, Inc. | 1,041 | 15,303 | |
Callaway Golf Co. | 1,823 | 28,238 | |
Vista Outdoor, Inc. (a) | 639 | 12,633 | |
56,174 | |||
Multiline Retail - 0.1% | |||
Ollie's Bargain Outlet Holdings, Inc. (a) | 139 | 12,106 | |
Specialty Retail - 3.7% | |||
American Eagle Outfitters, Inc. | 3,663 | 50,220 | |
Bed Bath & Beyond, Inc. | 5,016 | 99,317 | |
Floor & Decor Holdings, Inc. Class A (a) | 523 | 38,179 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 129 | 29,615 | |
Michaels Companies, Inc. (a) | 2,460 | 19,951 | |
Murphy U.S.A., Inc. | 79 | 9,661 | |
Musti Group OYJ | 858 | 19,656 | |
Rent-A-Center, Inc. | 1,404 | 43,384 | |
Williams-Sonoma, Inc. | 1,218 | 111,094 | |
421,077 | |||
Textiles, Apparel & Luxury Goods - 3.9% | |||
Crocs, Inc. (a) | 2,448 | 128,104 | |
Deckers Outdoor Corp. (a) | 167 | 42,313 | |
Oxford Industries, Inc. | 1,901 | 78,264 | |
PVH Corp. | 1,500 | 87,435 | |
Tapestry, Inc. | 4,804 | 106,793 | |
442,909 | |||
TOTAL CONSUMER DISCRETIONARY | 1,849,214 | ||
CONSUMER STAPLES - 2.3% | |||
Food & Staples Retailing - 1.6% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 1,668 | 63,868 | |
Grocery Outlet Holding Corp. (a) | 479 | 21,086 | |
U.S. Foods Holding Corp. (a) | 4,421 | 92,399 | |
177,353 | |||
Food Products - 0.5% | |||
Freshpet, Inc. (a) | 215 | 24,618 | |
Nomad Foods Ltd. (a) | 1,001 | 24,274 | |
The Simply Good Foods Co. (a) | 633 | 11,900 | |
60,792 | |||
Personal Products - 0.2% | |||
Herbalife Nutrition Ltd. (a) | 626 | 28,258 | |
TOTAL CONSUMER STAPLES | 266,403 | ||
ENERGY - 1.9% | |||
Oil, Gas & Consumable Fuels - 1.9% | |||
Brigham Minerals, Inc. Class A | 3,964 | 34,962 | |
BW Energy Ltd. | 19,200 | 29,765 | |
Euronav NV | 2,554 | 18,797 | |
Renewable Energy Group, Inc. (a) | 2,302 | 129,824 | |
213,348 | |||
FINANCIALS - 16.4% | |||
Banks - 7.6% | |||
BankUnited, Inc. | 1,336 | 33,734 | |
Camden National Corp. | 835 | 26,695 | |
Citizens Financial Group, Inc. | 730 | 19,893 | |
Comerica, Inc. | 1,527 | 69,494 | |
Cullen/Frost Bankers, Inc. | 1,100 | 77,297 | |
Eastern Bankshares, Inc. (a) | 2,700 | 32,265 | |
First Citizens Bancshares, Inc. | 116 | 53,673 | |
Hanmi Financial Corp. | 2,008 | 18,052 | |
Signature Bank | 1,279 | 103,266 | |
Sterling Bancorp | 8,581 | 114,814 | |
Synovus Financial Corp. | 3,559 | 92,534 | |
The Bank of NT Butterfield & Son Ltd. | 1,675 | 44,321 | |
Trico Bancshares | 1,960 | 56,703 | |
Western Alliance Bancorp. | 2,781 | 114,577 | |
857,318 | |||
Capital Markets - 1.9% | |||
AllianceBernstein Holding LP | 2,612 | 75,905 | |
BrightSphere Investment Group, Inc. | 1,525 | 21,045 | |
Cowen Group, Inc. Class A | 1,226 | 26,310 | |
Lazard Ltd. Class A | 1,494 | 50,303 | |
LPL Financial | 185 | 14,787 | |
Morningstar, Inc. | 166 | 31,603 | |
219,953 | |||
Consumer Finance - 0.7% | |||
Encore Capital Group, Inc. (a) | 1,701 | 54,313 | |
Green Dot Corp. Class A (a) | 341 | 18,182 | |
72,495 | |||
Diversified Financial Services - 0.9% | |||
ECN Capital Corp. | 24,357 | 96,529 | |
Flying Eagle Acquisition Corp. (a) | 431 | 4,969 | |
Netfin Acquisition Corp. Class A (a) | 492 | 5,068 | |
106,566 | |||
Insurance - 5.0% | |||
Assurant, Inc. | 826 | 102,730 | |
Axis Capital Holdings Ltd. | 2,408 | 102,798 | |
BRP Group, Inc. (a) | 816 | 20,808 | |
Enstar Group Ltd. (a) | 575 | 98,825 | |
First American Financial Corp. | 876 | 39,061 | |
Old Republic International Corp. | 5,413 | 88,124 | |
Primerica, Inc. | 408 | 44,978 | |
Reinsurance Group of America, Inc. | 450 | 45,459 | |
RenaissanceRe Holdings Ltd. | 172 | 27,816 | |
570,599 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Essent Group Ltd. | 596 | 23,751 | |
Pennymac Financial Services, Inc. | 286 | 14,535 | |
38,286 | |||
TOTAL FINANCIALS | 1,865,217 | ||
HEALTH CARE - 17.4% | |||
Biotechnology - 8.9% | |||
Acceleron Pharma, Inc. (a) | 304 | 31,792 | |
ADC Therapeutics SA (a) | 808 | 23,182 | |
Agios Pharmaceuticals, Inc. (a) | 180 | 7,213 | |
Allovir, Inc. (a) | 442 | 11,682 | |
ALX Oncology Holdings, Inc. (a) | 373 | 14,737 | |
Annexon, Inc. (a) | 319 | 6,638 | |
Aprea Therapeutics, Inc. | 602 | 13,130 | |
Arena Pharmaceuticals, Inc. (a) | 268 | 22,973 | |
Argenx SE ADR (a) | 161 | 39,949 | |
Ascendis Pharma A/S sponsored ADR (a) | 278 | 45,411 | |
Blueprint Medicines Corp. (a) | 249 | 25,468 | |
CareDx, Inc. (a) | 329 | 16,137 | |
Castle Biosciences, Inc. (a) | 310 | 14,393 | |
Deciphera Pharmaceuticals, Inc. (a) | 249 | 14,459 | |
Emergent BioSolutions, Inc. (a) | 255 | 22,942 | |
FibroGen, Inc. (a) | 791 | 30,359 | |
Forma Therapeutics Holdings, Inc. | 235 | 10,133 | |
Fusion Pharmaceuticals, Inc. (a) | 300 | 3,720 | |
Global Blood Therapeutics, Inc. (a) | 269 | 14,225 | |
Halozyme Therapeutics, Inc. (a) | 355 | 9,940 | |
ImmunoGen, Inc. (a) | 1,633 | 9,210 | |
Insmed, Inc. (a) | 725 | 23,882 | |
Iovance Biotherapeutics, Inc. (a) | 638 | 22,764 | |
Keros Therapeutics, Inc. | 363 | 20,183 | |
Kura Oncology, Inc. (a) | 967 | 30,219 | |
Kymera Therapeutics, Inc. (a) | 610 | 21,954 | |
Mirati Therapeutics, Inc. (a) | 274 | 59,496 | |
Morphic Holding, Inc. (a) | 582 | 15,662 | |
Natera, Inc. (a) | 652 | 43,854 | |
Nkarta, Inc. (a) | 23 | 660 | |
Novavax, Inc. (a) | 497 | 40,113 | |
ORIC Pharmaceuticals, Inc. (a) | 33 | 710 | |
Passage Bio, Inc. | 879 | 14,776 | |
Poseida Therapeutics, Inc. (a) | 395 | 4,546 | |
Prelude Therapeutics, Inc. | 331 | 11,661 | |
Protagonist Therapeutics, Inc. (a) | 711 | 13,473 | |
PTC Therapeutics, Inc. (a) | 641 | 33,454 | |
Relay Therapeutics, Inc. (a) | 388 | 14,333 | |
Repare Therapeutics, Inc. | 656 | 17,732 | |
Repligen Corp. (a) | 168 | 27,984 | |
Revolution Medicines, Inc. | 847 | 25,571 | |
Sarepta Therapeutics, Inc. (a) | 152 | 20,658 | |
Shattuck Labs, Inc. | 610 | 15,769 | |
Taysha Gene Therapies, Inc. | 549 | 11,419 | |
TG Therapeutics, Inc. (a) | 1,335 | 33,735 | |
Turning Point Therapeutics, Inc. (a) | 580 | 53,470 | |
Veracyte, Inc. (a) | 682 | 23,638 | |
Viela Bio, Inc. | 440 | 14,040 | |
Xenon Pharmaceuticals, Inc. (a) | 494 | 4,802 | |
Zymeworks, Inc. (a) | 170 | 6,650 | |
1,014,901 | |||
Health Care Equipment & Supplies - 3.0% | |||
Axonics Modulation Technologies, Inc. (a) | 695 | 32,589 | |
CryoPort, Inc. (a) | 414 | 16,618 | |
Haemonetics Corp. (a) | 225 | 22,745 | |
Insulet Corp. (a) | 309 | 68,675 | |
Integer Holdings Corp. (a) | 471 | 27,530 | |
iRhythm Technologies, Inc. (a) | 138 | 29,180 | |
Nevro Corp. (a) | 281 | 41,928 | |
OrthoPediatrics Corp. (a) | 241 | 10,749 | |
Outset Medical, Inc. | 648 | 30,113 | |
Tandem Diabetes Care, Inc. (a) | 310 | 33,790 | |
TransMedics Group, Inc. (a) | 773 | 9,261 | |
ViewRay, Inc. (a) | 3,586 | 10,650 | |
333,828 | |||
Health Care Providers & Services - 1.9% | |||
Chemed Corp. | 35 | 16,741 | |
Guardant Health, Inc. (a) | 246 | 26,238 | |
LHC Group, Inc. (a) | 243 | 52,622 | |
Molina Healthcare, Inc. (a) | 200 | 37,294 | |
Premier, Inc. | 921 | 30,144 | |
Progyny, Inc. (a) | 1,115 | 27,173 | |
R1 RCM, Inc. (a) | 1,209 | 21,665 | |
211,877 | |||
Health Care Technology - 1.5% | |||
Cegedim SA (a) | 1,584 | 41,139 | |
Health Catalyst, Inc. (a) | 542 | 18,688 | |
Inovalon Holdings, Inc. Class A (a) | 1,290 | 24,497 | |
Inspire Medical Systems, Inc. (a) | 341 | 40,726 | |
Kronos Bio, Inc. | 300 | 8,427 | |
Phreesia, Inc. (a) | 769 | 28,430 | |
Schrodinger, Inc. | 236 | 11,512 | |
173,419 | |||
Life Sciences Tools & Services - 1.2% | |||
10X Genomics, Inc. (a) | 276 | 37,784 | |
Berkeley Lights, Inc. (a) | 25 | 1,814 | |
Bruker Corp. | 395 | 16,803 | |
Charles River Laboratories International, Inc. (a) | 99 | 22,542 | |
Nanostring Technologies, Inc. (a) | 608 | 22,283 | |
Syneos Health, Inc. (a) | 611 | 32,432 | |
133,658 | |||
Pharmaceuticals - 0.9% | |||
Arvinas Holding Co. LLC (a) | 449 | 9,389 | |
IMARA, Inc. | 330 | 5,217 | |
Jazz Pharmaceuticals PLC (a) | 564 | 81,272 | |
Theravance Biopharma, Inc. (a) | 544 | 10,287 | |
106,165 | |||
TOTAL HEALTH CARE | 1,973,848 | ||
INDUSTRIALS - 17.9% | |||
Aerospace & Defense - 0.5% | |||
Axon Enterprise, Inc. (a) | 248 | 24,527 | |
BWX Technologies, Inc. | 658 | 36,197 | |
60,724 | |||
Air Freight & Logistics - 0.4% | |||
Air Transport Services Group, Inc. (a) | 974 | 27,311 | |
Atlas Air Worldwide Holdings, Inc. (a) | 217 | 12,838 | |
40,149 | |||
Building Products - 3.0% | |||
A.O. Smith Corp. | 219 | 11,320 | |
American Woodmark Corp. (a) | 539 | 44,527 | |
Builders FirstSource, Inc. (a) | 1,759 | 53,298 | |
Fortune Brands Home & Security, Inc. | 391 | 31,620 | |
Jeld-Wen Holding, Inc. (a) | 5,443 | 114,466 | |
Owens Corning | 663 | 43,407 | |
The AZEK Co., Inc. | 1,320 | 44,141 | |
342,779 | |||
Commercial Services & Supplies - 1.3% | |||
HNI Corp. | 1,801 | 58,623 | |
Knoll, Inc. | 4,954 | 56,773 | |
Montrose Environmental Group, Inc. (a) | 695 | 18,786 | |
Tetra Tech, Inc. | 153 | 15,439 | |
149,621 | |||
Construction & Engineering - 2.3% | |||
AECOM (a) | 2,669 | 119,678 | |
Arcosa, Inc. | 1,220 | 56,327 | |
Argan, Inc. | 458 | 18,865 | |
Dycom Industries, Inc. (a) | 687 | 44,614 | |
Quanta Services, Inc. | 294 | 18,354 | |
257,838 | |||
Electrical Equipment - 1.8% | |||
Generac Holdings, Inc. (a) | 182 | 38,247 | |
Regal Beloit Corp. | 1,188 | 117,196 | |
Sensata Technologies, Inc. PLC (a) | 502 | 21,942 | |
Sunrun, Inc. (a) | 575 | 29,912 | |
207,297 | |||
Machinery - 4.3% | |||
ESCO Technologies, Inc. | 286 | 23,935 | |
IDEX Corp. | 156 | 26,581 | |
ITT, Inc. | 2,019 | 122,170 | |
Kornit Digital Ltd. (a) | 1,447 | 97,412 | |
Luxfer Holdings PLC sponsored | 3,676 | 45,656 | |
Nordson Corp. | 127 | 24,566 | |
Shenzhen Inovance Technology Co. Ltd. (A Shares) | 2,384 | 22,944 | |
SPX Flow, Inc. (a) | 2,809 | 118,961 | |
482,225 | |||
Marine - 0.2% | |||
SITC International Holdings Co. Ltd. | 15,058 | 23,230 | |
Professional Services - 2.8% | |||
ASGN, Inc. (a) | 406 | 27,072 | |
Clarivate Analytics PLC (a) | 1,226 | 34,022 | |
FTI Consulting, Inc. (a) | 152 | 14,966 | |
Insperity, Inc. | 517 | 39,592 | |
Kelly Services, Inc. Class A (non-vtg.) | 3,423 | 59,492 | |
Manpower, Inc. | 1,455 | 98,751 | |
TriNet Group, Inc. (a) | 692 | 47,693 | |
321,588 | |||
Road & Rail - 0.9% | |||
ArcBest Corp. | 1,792 | 54,692 | |
Knight-Swift Transportation Holdings, Inc. Class A | 924 | 35,103 | |
Schneider National, Inc. Class B | 519 | 11,449 | |
101,244 | |||
Trading Companies & Distributors - 0.4% | |||
Beacon Roofing Supply, Inc. (a) | 708 | 21,736 | |
BMC Stock Holdings, Inc. (a) | 685 | 27,119 | |
48,855 | |||
TOTAL INDUSTRIALS | 2,035,550 | ||
INFORMATION TECHNOLOGY - 13.1% | |||
Communications Equipment - 0.1% | |||
Ciena Corp. (a) | 360 | 14,180 | |
Electronic Equipment & Components - 2.9% | |||
Avnet, Inc. | 1,780 | 43,913 | |
Fabrinet (a) | 505 | 30,310 | |
Insight Enterprises, Inc. (a) | 803 | 42,840 | |
Jabil, Inc. | 2,765 | 91,632 | |
SYNNEX Corp. | 345 | 45,416 | |
TTM Technologies, Inc. (a) | 6,249 | 74,176 | |
328,287 | |||
IT Services - 1.3% | |||
CACI International, Inc. Class A (a) | 111 | 23,147 | |
Genpact Ltd. | 445 | 15,295 | |
KBR, Inc. | 994 | 22,156 | |
Perspecta, Inc. | 1,806 | 32,382 | |
Repay Holdings Corp. (a) | 430 | 9,688 | |
Unisys Corp. (a) | 1,773 | 23,297 | |
WNS Holdings Ltd. sponsored ADR (a) | 278 | 16,024 | |
141,989 | |||
Semiconductors & Semiconductor Equipment - 2.9% | |||
Advanced Energy Industries, Inc. (a) | 466 | 31,441 | |
Allegro MicroSystems LLC (a) | 400 | 7,320 | |
Array Technologies, Inc. | 927 | 34,160 | |
Cirrus Logic, Inc. (a) | 411 | 28,306 | |
CMC Materials, Inc. | 200 | 28,438 | |
Enphase Energy, Inc. (a) | 374 | 36,686 | |
Inphi Corp. (a) | 134 | 18,728 | |
Kulicke & Soffa Industries, Inc. | 1,551 | 40,543 | |
PDF Solutions, Inc. (a) | 140 | 2,624 | |
Semtech Corp. (a) | 342 | 18,772 | |
SiTime Corp. | 1,010 | 84,325 | |
331,343 | |||
Software - 5.9% | |||
Ceridian HCM Holding, Inc. (a) | 268 | 23,107 | |
Digital Turbine, Inc. (a) | 1,030 | 29,520 | |
Duck Creek Technologies, Inc. (a) | 310 | 13,445 | |
Dynatrace, Inc. (a) | 883 | 31,179 | |
Elastic NV (a) | 337 | 34,175 | |
FireEye, Inc. (a) | 913 | 12,636 | |
Five9, Inc. (a) | 474 | 71,915 | |
Globant SA (a) | 150 | 27,092 | |
JFrog Ltd. | 200 | 14,486 | |
Lightspeed POS, Inc. (Canada)(a) | 972 | 31,094 | |
LivePerson, Inc. (a) | 725 | 38,759 | |
Manhattan Associates, Inc. (a) | 211 | 18,041 | |
NICE Systems Ltd. sponsored ADR (a) | 104 | 23,739 | |
Nuance Communications, Inc. (a) | 541 | 17,263 | |
Ping Identity Holding Corp. (a) | 533 | 14,759 | |
Rapid7, Inc. (a) | 366 | 22,666 | |
SailPoint Technologies Holding, Inc. (a) | 210 | 8,717 | |
Sprout Social, Inc. (a) | 490 | 21,413 | |
Tenable Holdings, Inc. (a) | 1,504 | 51,301 | |
Varonis Systems, Inc. (a) | 386 | 44,610 | |
Xperi Holding Corp. | 7,997 | 99,163 | |
Yext, Inc. (a) | 1,572 | 26,064 | |
675,144 | |||
TOTAL INFORMATION TECHNOLOGY | 1,490,943 | ||
MATERIALS - 4.8% | |||
Chemicals - 1.4% | |||
Valvoline, Inc. | 5,238 | 103,031 | |
Westlake Chemical Corp. | 833 | 56,327 | |
159,358 | |||
Construction Materials - 0.4% | |||
Eagle Materials, Inc. | 470 | 40,068 | |
Containers & Packaging - 2.5% | |||
Ardagh Group SA | 5,730 | 94,430 | |
Avery Dennison Corp. | 298 | 41,240 | |
O-I Glass, Inc. | 7,164 | 67,557 | |
WestRock Co. | 2,114 | 79,381 | |
282,608 | |||
Metals & Mining - 0.5% | |||
Commercial Metals Co. | 2,909 | 60,071 | |
TOTAL MATERIALS | 542,105 | ||
REAL ESTATE - 3.5% | |||
Equity Real Estate Investment Trusts (REITs) - 1.4% | |||
Americold Realty Trust | 421 | 15,253 | |
Corporate Office Properties Trust (SBI) | 991 | 22,228 | |
Equity Commonwealth | 595 | 15,720 | |
RLJ Lodging Trust | 10,839 | 88,663 | |
Terreno Realty Corp. | 401 | 22,568 | |
164,432 | |||
Real Estate Management & Development - 2.1% | |||
DIC Asset AG | 6,951 | 79,983 | |
Jones Lang LaSalle, Inc. | 1,041 | 117,487 | |
Realogy Holdings Corp. (a) | 2,000 | 22,320 | |
Redfin Corp. (a) | 399 | 16,666 | |
236,456 | |||
TOTAL REAL ESTATE | 400,888 | ||
UTILITIES - 1.1% | |||
Electric Utilities - 0.4% | |||
Portland General Electric Co. | 1,073 | 42,169 | |
Gas Utilities - 0.3% | |||
ONE Gas, Inc. | 269 | 18,572 | |
Towngas China Co. Ltd. | 51,000 | 23,091 | |
41,663 | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
Clearway Energy, Inc. Class C | 1,678 | 47,252 | |
TOTAL UTILITIES | 131,084 | ||
TOTAL COMMON STOCKS | |||
(Cost $9,574,669) | 10,998,004 | ||
Convertible Preferred Stocks - 1.0% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Specialty Retail - 0.1% | |||
Fanatics, Inc. Series E (b)(c) | 827 | 14,299 | |
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Alkami Technology, Inc. Series F (b)(c) | 1,143 | 18,288 | |
INDUSTRIALS - 0.2% | |||
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (b)(c) | 1,249 | 18,710 | |
INFORMATION TECHNOLOGY - 0.5% | |||
IT Services - 0.1% | |||
Yanka Industries, Inc. Series E (b)(c) | 1,071 | 12,937 | |
Software - 0.4% | |||
Compass, Inc.: | |||
Series E (a)(b)(c) | 26 | 3,685 | |
Series F (a)(b)(c) | 310 | 42,910 | |
46,595 | |||
TOTAL INFORMATION TECHNOLOGY | 59,532 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $100,946) | 110,829 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.3% | |||
U.S. Treasury Bills, yield at date of purchase 0.09% 11/19/20 | |||
(Cost $39,998) | 40,000 | 39,998 | |
Shares | Value | ||
Money Market Funds - 1.2% | |||
Fidelity Cash Central Fund 0.10% (d) | |||
(Cost $136,249) | 136,222 | 136,249 | |
TOTAL INVESTMENT IN SECURITIES - 99.2% | |||
(Cost $9,851,862) | 11,285,080 | ||
NET OTHER ASSETS (LIABILITIES) - 0.8% | 86,360 | ||
NET ASSETS - 100% | $11,371,440 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $110,829 or 1.0% 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Alkami Technology, Inc. Series F | 9/24/20 | $18,288 |
Compass, Inc. Series E | 11/3/17 | $1,754 |
Compass, Inc. Series F | 10/22/18 | $36,757 |
Convoy, Inc. Series D | 10/30/19 | $16,911 |
Fanatics, Inc. Series E | 8/13/20 | $14,299 |
Yanka Industries, Inc. Series E | 5/15/20 | $12,937 |
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 | $2,317 |
Total | $2,317 |
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 October 31, 2020, 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: | ||||
Communication Services | $229,404 | $229,404 | $-- | $-- |
Consumer Discretionary | 1,863,513 | 1,821,463 | 27,751 | 14,299 |
Consumer Staples | 266,403 | 266,403 | -- | -- |
Energy | 213,348 | 213,348 | -- | -- |
Financials | 1,883,505 | 1,865,217 | -- | 18,288 |
Health Care | 1,973,848 | 1,973,848 | -- | -- |
Industrials | 2,054,260 | 2,012,606 | 22,944 | 18,710 |
Information Technology | 1,550,475 | 1,490,943 | -- | 59,532 |
Materials | 542,105 | 542,105 | -- | -- |
Real Estate | 400,888 | 400,888 | -- | -- |
Utilities | 131,084 | 131,084 | -- | -- |
U.S. Government and Government Agency Obligations | 39,998 | -- | 39,998 | -- |
Money Market Funds | 136,249 | 136,249 | -- | -- |
Total Investments in Securities: | $11,285,080 | $11,083,558 | $90,693 | $110,829 |
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 | 85.6% |
Bermuda | 3.6% |
Canada | 1.5% |
United Kingdom | 1.4% |
Luxembourg | 1.0% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 5.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $9,715,613) | $11,148,831 | |
Fidelity Central Funds (cost $136,249) | 136,249 | |
Total Investment in Securities (cost $9,851,862) | $11,285,080 | |
Cash | 79,181 | |
Foreign currency held at value (cost $336) | 333 | |
Receivable for investments sold | 90,968 | |
Receivable for fund shares sold | 9,380 | |
Dividends receivable | 6,194 | |
Distributions receivable from Fidelity Central Funds | 9 | |
Total assets | 11,471,145 | |
Liabilities | ||
Payable for investments purchased | $96,580 | |
Payable for fund shares redeemed | 3,125 | |
Total liabilities | 99,705 | |
Net Assets | $11,371,440 | |
Net Assets consist of: | ||
Paid in capital | $10,484,927 | |
Total accumulated earnings (loss) | 886,513 | |
Net Assets | $11,371,440 | |
Net Asset Value, offering price and redemption price per share ($11,371,440 ÷ 863,255 shares) | $13.17 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended October 31, 2020 | ||
Investment Income | ||
Dividends | $133,206 | |
Interest | 78 | |
Income from Fidelity Central Funds | 2,317 | |
Total income | 135,601 | |
Expenses | ||
Independent trustees' fees and expenses | $63 | |
Proxy | 1,075 | |
Commitment fees | 26 | |
Total expenses before reductions | 1,164 | |
Expense reductions | (1,075) | |
Total expenses after reductions | 89 | |
Net investment income (loss) | 135,512 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (404,328) | |
Fidelity Central Funds | (7) | |
Foreign currency transactions | 93 | |
Futures contracts | 27,653 | |
Total net realized gain (loss) | (376,589) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 568,223 | |
Assets and liabilities in foreign currencies | (13) | |
Total change in net unrealized appreciation (depreciation) | 568,210 | |
Net gain (loss) | 191,621 | |
Net increase (decrease) in net assets resulting from operations | $327,133 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $135,512 | $95,258 |
Net realized gain (loss) | (376,589) | (208,018) |
Change in net unrealized appreciation (depreciation) | 568,210 | 954,467 |
Net increase (decrease) in net assets resulting from operations | 327,133 | 841,707 |
Distributions to shareholders | (100,243) | (177,637) |
Share transactions | ||
Proceeds from sales of shares | 10,578,181 | 10,666,475 |
Reinvestment of distributions | 100,243 | 177,637 |
Cost of shares redeemed | (10,770,011) | (7,805,995) |
Net increase (decrease) in net assets resulting from share transactions | (91,587) | 3,038,117 |
Total increase (decrease) in net assets | 135,303 | 3,702,187 |
Net Assets | ||
Beginning of period | 11,236,137 | 7,533,950 |
End of period | $11,371,440 | $11,236,137 |
Other Information | ||
Shares | ||
Sold | 850,447 | 922,418 |
Issued in reinvestment of distributions | 7,968 | 17,146 |
Redeemed | (928,476) | (684,824) |
Net increase (decrease) | (70,061) | 254,740 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Small Cap Fund
Years ended October 31, | 2020 | 2019 | 2018 | 2017 A |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $12.04 | $11.10 | $10.76 | $10.00 |
Income from Investment Operations | ||||
Net investment income (loss)B | .15 | .12 | .13 | .07 |
Net realized and unrealized gain (loss) | 1.07 | 1.14 | .32 | .69 |
Total from investment operations | 1.22 | 1.26 | .45 | .76 |
Distributions from net investment income | (.09) | (.12) | (.11) | – |
Distributions from net realized gain | – | (.20) | – | – |
Total distributions | (.09) | (.32) | (.11) | – |
Net asset value, end of period | $13.17 | $12.04 | $11.10 | $10.76 |
Total ReturnC,D | 10.19% | 11.83% | 4.18% | 7.60% |
Ratios to Average Net AssetsE,F | ||||
Expenses before reductions | .01% | - %G | - %G | - %G,H |
Expenses net of fee waivers, if any | - %G | - %G | - %G | - %G,H |
Expenses net of all reductions | - %G | - %G | - %G | - %G,H |
Net investment income (loss) | 1.23% | 1.07% | 1.14% | 1.10%H |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $11,371 | $11,236 | $7,534 | $538 |
Portfolio turnover rateI | 178% | 145% | 163% | 249%H |
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 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Amount represents less than .005%.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
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 and advisory programs offered by Fidelity.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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.
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 October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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.
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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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), 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 | $1,874,436 |
Gross unrealized depreciation | (589,766) |
Net unrealized appreciation (depreciation) | $1,284,670 |
Tax Cost | $10,000,410 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $59,437 |
Capital loss carryforward | $(457,590) |
Net unrealized appreciation (depreciation) on securities and other investments | $1,284,667 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(457,590) |
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $100,243 | $ 159,375 |
Long-term Capital Gains | – | 18,262 |
Total | $100,243 | $ 177,637 |
Restricted Securities (including Private Placements). 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Flex Small Cap Fund | 19,212,912 | 19,343,450 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Flex Small Cap Fund | $1,132 |
Interfund Trades. 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.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Commitment fees on the Statement of Operations, and are as follows:
Amount | |
Fidelity Flex Small Cap Fund | $26 |
During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $1,075.
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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Flex Small Cap Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Flex Small Cap Fund (the "Fund"), a fund of Fidelity Capital Trust, including the schedule of investments, as of October 31, 2020, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and for the period from March 7, 2017 (commencement of operations) through October 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from March 7, 2017 (commencement of operations) through October 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 15, 2020
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants).
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Flex Small Cap Fund | - %-C | |||
Actual | $1,000.00 | $1,241.30 | $--D | |
Hypothetical-E | $1,000.00 | $1,025.14 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The fund designates 75% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 87% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund designates 8% of the dividend distributed during the fiscal year as a section 199A dividend.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
ZSC-ANN-1220
1.9881583.103
Fidelity® Focused Stock Fund
October 31, 2020
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
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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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Focused Stock Fund | 26.56% | 16.97% | 15.31% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Focused Stock Fund on October 31, 2010 .
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648428171_740.jpg)
Period Ending Values | ||
$41,567 | Fidelity® Focused Stock Fund | |
$33,987 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Portfolio Manager Stephen DuFour: For the fiscal year ending October 31, 2020, the fund gained 26.56%, outperforming the 9.71% result of the benchmark S&P 500® Index. Stock picks and an overweighting in information technology had the biggest impact by far on the fund’s relative performance. Versus the benchmark, an underweighting and security selection in the weak-performing financials sector, and a lack of exposure to energy, also helped. Our top individual relative contributor was an out-of-benchmark stake in online payments processor Square (+102%). Also helping our relative result was an outsized position in semiconductor company Nvidia (+146%). Other standouts included an out-of-benchmark stake in online shopping platform Shopify (+186%) and an overweighting in online payments processor PayPal Holdings (+80%), both in the software & services group. Conversely, security selection in materials, along with underweightings in the consumer discretionary and consumer staples sector, hampered relative performance. The fund's largest individual relative detractors were Walmart (-2%), which was not held at period end, and Costco Wholesale (+19%), a new addition to the portfolio this period. Notable changes in positioning this period included increased exposure to the consumer discretionary, health care and industrials sectors.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
Microsoft Corp. | 5.8 |
Amazon.com, Inc. | 4.9 |
Estee Lauder Companies, Inc. Class A | 4.9 |
PayPal Holdings, Inc. | 4.7 |
Alphabet, Inc. Class A | 4.7 |
Union Pacific Corp. | 4.6 |
Facebook, Inc. Class A | 4.4 |
MasterCard, Inc. Class A | 4.3 |
UnitedHealth Group, Inc. | 4.3 |
S&P Global, Inc. | 4.3 |
46.9 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Information Technology | 33.6 |
Health Care | 16.7 |
Consumer Discretionary | 15.5 |
Communication Services | 9.1 |
Industrials | 8.2 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks | 98.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.5% |
* Foreign investments - 5.7%
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 9.1% | |||
Interactive Media & Services - 9.1% | |||
Alphabet, Inc. Class A (a) | 92,600 | $149,651,786 | |
Facebook, Inc. Class A (a) | 537,000 | 141,290,070 | |
290,941,856 | |||
CONSUMER DISCRETIONARY - 15.5% | |||
Hotels, Restaurants & Leisure - 2.0% | |||
Caesars Entertainment, Inc. (a) | 1,244,000 | 55,756,080 | |
Penn National Gaming, Inc. (a) | 173,026 | 9,339,943 | |
65,096,023 | |||
Household Durables - 1.6% | |||
D.R. Horton, Inc. | 773,000 | 51,644,130 | |
Internet & Direct Marketing Retail - 7.5% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 149,000 | 45,398,810 | |
Amazon.com, Inc. (a) | 52,000 | 157,879,800 | |
MercadoLibre, Inc. (a) | 31,000 | 37,635,550 | |
240,914,160 | |||
Multiline Retail - 2.1% | |||
Dollar General Corp. | 318,000 | 66,369,780 | |
Specialty Retail - 1.0% | |||
Lowe's Companies, Inc. | 198,000 | 31,303,800 | |
Textiles, Apparel & Luxury Goods - 1.3% | |||
lululemon athletica, Inc. (a) | 28,000 | 8,940,120 | |
NIKE, Inc. Class B | 258,800 | 31,076,704 | |
40,016,824 | |||
TOTAL CONSUMER DISCRETIONARY | 495,344,717 | ||
CONSUMER STAPLES - 5.8% | |||
Food & Staples Retailing - 0.9% | |||
Costco Wholesale Corp. | 85,000 | 30,397,700 | |
Personal Products - 4.9% | |||
Estee Lauder Companies, Inc. Class A | 705,758 | 155,026,802 | |
TOTAL CONSUMER STAPLES | 185,424,502 | ||
FINANCIALS - 8.0% | |||
Banks - 0.7% | |||
Bank of America Corp. | 910,000 | 21,567,000 | |
Capital Markets - 7.3% | |||
Moody's Corp. | 363,000 | 95,432,700 | |
S&P Global, Inc. | 423,294 | 136,609,673 | |
232,042,373 | |||
TOTAL FINANCIALS | 253,609,373 | ||
HEALTH CARE - 16.7% | |||
Biotechnology - 0.0% | |||
Shattuck Labs, Inc. | 15,200 | 392,920 | |
Health Care Equipment & Supplies - 2.4% | |||
Danaher Corp. | 336,000 | 77,125,440 | |
Health Care Providers & Services - 7.4% | |||
Humana, Inc. | 243,000 | 97,025,040 | |
UnitedHealth Group, Inc. | 450,000 | 137,313,000 | |
234,338,040 | |||
Life Sciences Tools & Services - 4.2% | |||
10X Genomics, Inc. (a) | 172,629 | 23,632,910 | |
Thermo Fisher Scientific, Inc. | 234,000 | 110,710,080 | |
134,342,990 | |||
Pharmaceuticals - 2.7% | |||
Horizon Therapeutics PLC (a) | 599,300 | 44,905,549 | |
Royalty Pharma PLC (b) | 1,094,900 | 40,182,830 | |
85,088,379 | |||
TOTAL HEALTH CARE | 531,287,769 | ||
INDUSTRIALS - 8.2% | |||
Commercial Services & Supplies - 2.5% | |||
Cintas Corp. | 247,000 | 77,693,850 | |
Professional Services - 1.1% | |||
Clarivate Analytics PLC (a) | 1,267,400 | 35,170,350 | |
Road & Rail - 4.6% | |||
Union Pacific Corp. | 831,122 | 147,266,507 | |
TOTAL INDUSTRIALS | 260,130,707 | ||
INFORMATION TECHNOLOGY - 33.6% | |||
IT Services - 14.4% | |||
MasterCard, Inc. Class A | 479,700 | 138,460,608 | |
PayPal Holdings, Inc. (a) | 805,000 | 149,834,650 | |
Shopify, Inc. Class A (a) | 8,300 | 7,651,662 | |
Square, Inc. (a) | 876,000 | 135,674,880 | |
Visa, Inc. Class A | 160,000 | 29,073,600 | |
460,695,400 | |||
Semiconductors & Semiconductor Equipment - 4.4% | |||
Allegro MicroSystems LLC (a) | 5,100 | 93,330 | |
Array Technologies, Inc. | 26,400 | 972,840 | |
Marvell Technology Group Ltd. | 1,321,600 | 49,573,216 | |
NVIDIA Corp. | 177,000 | 88,740,720 | |
139,380,106 | |||
Software - 12.1% | |||
Adobe, Inc. (a) | 259,112 | 115,848,975 | |
ANSYS, Inc. (a) | 99,449 | 30,269,292 | |
Microsoft Corp. | 915,000 | 185,260,051 | |
Salesforce.com, Inc. (a) | 234,000 | 54,351,180 | |
385,729,498 | |||
Technology Hardware, Storage & Peripherals - 2.7% | |||
Apple, Inc. | 794,000 | 86,434,840 | |
TOTAL INFORMATION TECHNOLOGY | 1,072,239,844 | ||
REAL ESTATE - 0.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
Prologis (REIT), Inc. | 105,800 | 10,495,360 | |
UTILITIES - 1.3% | |||
Electric Utilities - 1.3% | |||
NextEra Energy, Inc. | 568,000 | 41,583,280 | |
TOTAL COMMON STOCKS | |||
(Cost $2,301,540,630) | 3,141,057,408 | ||
Money Market Funds - 2.6% | |||
Fidelity Cash Central Fund 0.10% (c) | 57,158,757 | 57,170,189 | |
Fidelity Securities Lending Cash Central Fund 0.11% (c)(d) | 25,953,863 | 25,956,458 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $83,126,345) | 83,126,647 | ||
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $2,384,666,975) | 3,224,184,055 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (33,626,678) | ||
NET ASSETS - 100% | $3,190,557,377 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) 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 |
Fidelity Cash Central Fund | $272,154 |
Fidelity Securities Lending Cash Central Fund | 33,820 |
Total | $305,974 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, 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: | ||||
Communication Services | $290,941,856 | $290,941,856 | $-- | $-- |
Consumer Discretionary | 495,344,717 | 495,344,717 | -- | -- |
Consumer Staples | 185,424,502 | 185,424,502 | -- | -- |
Financials | 253,609,373 | 253,609,373 | -- | -- |
Health Care | 531,287,769 | 531,287,769 | -- | -- |
Industrials | 260,130,707 | 260,130,707 | -- | -- |
Information Technology | 1,072,239,844 | 1,072,239,844 | -- | -- |
Real Estate | 10,495,360 | 10,495,360 | -- | -- |
Utilities | 41,583,280 | 41,583,280 | -- | -- |
Money Market Funds | 83,126,647 | 83,126,647 | -- | -- |
Total Investments in Securities: | $3,224,184,055 | $3,224,184,055 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $25,570,505) — See accompanying schedule: Unaffiliated issuers (cost $2,301,540,630) | $3,141,057,408 | |
Fidelity Central Funds (cost $83,126,345) | 83,126,647 | |
Total Investment in Securities (cost $2,384,666,975) | $3,224,184,055 | |
Foreign currency held at value (cost $1,094) | 13,745 | |
Receivable for investments sold | 33,135,852 | |
Receivable for fund shares sold | 2,714,821 | |
Dividends receivable | 466,064 | |
Distributions receivable from Fidelity Central Funds | 4,035 | |
Prepaid expenses | 5,125 | |
Other receivables | 43,125 | |
Total assets | 3,260,566,822 | |
Liabilities | ||
Payable to custodian bank | $296,886 | |
Payable for investments purchased | 38,501,634 | |
Payable for fund shares redeemed | 2,819,575 | |
Accrued management fee | 1,926,359 | |
Other affiliated payables | 462,017 | |
Other payables and accrued expenses | 49,260 | |
Collateral on securities loaned | 25,953,714 | |
Total liabilities | 70,009,445 | |
Net Assets | $3,190,557,377 | |
Net Assets consist of: | ||
Paid in capital | $1,988,117,716 | |
Total accumulated earnings (loss) | 1,202,439,661 | |
Net Assets | $3,190,557,377 | |
Net Asset Value, offering price and redemption price per share ($3,190,557,377 ÷ 104,419,699 shares) | $30.56 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended October 31, 2020 | ||
Investment Income | ||
Dividends | $26,839,504 | |
Income from Fidelity Central Funds (including $33,820 from security lending) | 305,974 | |
Total income | 27,145,478 | |
Expenses | ||
Management fee | ||
Basic fee | $15,649,088 | |
Performance adjustment | 4,704,487 | |
Transfer agent fees | 4,426,388 | |
Accounting fees | 866,568 | |
Custodian fees and expenses | 54,206 | |
Independent trustees' fees and expenses | 16,505 | |
Registration fees | 90,142 | |
Audit | 48,485 | |
Legal | 5,474 | |
Miscellaneous | 47,613 | |
Total expenses before reductions | 25,908,956 | |
Expense reductions | (192,077) | |
Total expenses after reductions | 25,716,879 | |
Net investment income (loss) | 1,428,599 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 403,384,446 | |
Fidelity Central Funds | 6,177 | |
Foreign currency transactions | 108,433 | |
Total net realized gain (loss) | 403,499,056 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 250,124,938 | |
Fidelity Central Funds | (384) | |
Assets and liabilities in foreign currencies | 21,214 | |
Total change in net unrealized appreciation (depreciation) | 250,145,768 | |
Net gain (loss) | 653,644,824 | |
Net increase (decrease) in net assets resulting from operations | $655,073,423 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,428,599 | $3,238,387 |
Net realized gain (loss) | 403,499,056 | 155,744,425 |
Change in net unrealized appreciation (depreciation) | 250,145,768 | 211,702,952 |
Net increase (decrease) in net assets resulting from operations | 655,073,423 | 370,685,764 |
Distributions to shareholders | (145,165,150) | (294,260,663) |
Share transactions | ||
Proceeds from sales of shares | 705,398,833 | 998,501,069 |
Reinvestment of distributions | 138,191,524 | 281,328,969 |
Cost of shares redeemed | (1,116,049,280) | (665,247,094) |
Net increase (decrease) in net assets resulting from share transactions | (272,458,923) | 614,582,944 |
Total increase (decrease) in net assets | 237,449,350 | 691,008,045 |
Net Assets | ||
Beginning of period | 2,953,108,027 | 2,262,099,982 |
End of period | $3,190,557,377 | $2,953,108,027 |
Other Information | ||
Shares | ||
Sold | 25,375,048 | 41,369,223 |
Issued in reinvestment of distributions | 5,505,639 | 12,994,409 |
Redeemed | (42,636,011) | (27,830,055) |
Net increase (decrease) | (11,755,324) | 26,533,577 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Focused Stock Fund
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $25.42 | $25.23 | $23.48 | $18.63 | $19.08 |
Income from Investment Operations | |||||
Net investment income (loss)A | .01 | .03 | .02 | .13 | .09 |
Net realized and unrealized gain (loss) | 6.45 | 3.23 | 3.17 | 4.92 | .52 |
Total from investment operations | 6.46 | 3.26 | 3.19 | 5.05 | .61 |
Distributions from net investment income | (.02) | (.03) | (.09)B | (.10) | (.05) |
Distributions from net realized gain | (1.30) | (3.04) | (1.35)B | (.10) | (1.02) |
Total distributions | (1.32) | (3.07) | (1.44) | (.20) | (1.06)C |
Net asset value, end of period | $30.56 | $25.42 | $25.23 | $23.48 | $18.63 |
Total ReturnD | 26.56% | 15.05% | 14.30% | 27.37% | 3.31% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .88% | .89% | .82% | .57% | .62% |
Expenses net of fee waivers, if any | .88% | .89% | .82% | .57% | .62% |
Expenses net of all reductions | .87% | .89% | .81% | .57% | .62% |
Net investment income (loss) | .05% | .12% | .07% | .63% | .50% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $3,190,557 | $2,953,108 | $2,262,100 | $1,717,779 | $1,602,487 |
Portfolio turnover rateG | 140% | 152% | 138% | 121% | 141% |
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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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 October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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) 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 | $895,924,924 |
Gross unrealized depreciation | (61,613,154) |
Net unrealized appreciation (depreciation) | $834,311,770 |
Tax Cost | $2,389,872,285 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $217,801 |
Undistributed long-term capital gain | $367,889,884 |
Net unrealized appreciation (depreciation) on securities and other investments | $834,331,974 |
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $13,057,184 | $ 2,682,064 |
Long-term Capital Gains | 132,107,966 | 291,578,599 |
Total | $145,165,150 | $ 294,260,663 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Focused Stock Fund | 4,081,776,103 | 4,407,157,516 |
5.��Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annual management fee rate, including the performance adjustment, was .69% 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 LLC (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 annual rate of .15% of average net assets.
Accounting 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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Focused Stock Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Focused Stock Fund | $74,081 |
Interfund Trades. 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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $17,404.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount |
Fidelity Focused Stock Fund | $6,825 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Focused Stock Fund | $3,343 | $– | $– |
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 $178,267 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 by $2,096.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $11,714.
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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Focused Stock Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Focused Stock Fund (one of the funds constituting Fidelity Capital Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statement of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2020
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Focused Stock Fund | .87% | |||
Actual | $1,000.00 | $1,212.20 | $4.84 | |
Hypothetical-C | $1,000.00 | $1,020.76 | $4.42 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Focused Stock Fund voted to pay on December 7, 2020, to shareholders of record at the opening of business on December 4, 2020, a distribution of $3.544 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.006 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2020, $376,755,885, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed in December during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 1,105,968,354.590 | 73.471 |
Against | 199,467,569.233 | 13.251 |
Abstain | 146,043,274.889 | 9.702 |
Broker Non-Vote | 53,835,626.460 | 3.576 |
TOTAL | 1,505,314,825.172 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
TQG-ANN-1220
1.538682.123
Fidelity® Stock Selector Small Cap Fund
October 31, 2020
Includes Fidelity and Fidelity Advisor share classes
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fid_sun.jpg)
See the inside front cover for important information about access to your fund’s shareholder reports.
![Fidelity Investments](https://capedge.com/proxy/N-CSR/0001379491-20-006346/fipro_logo.jpg)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | (2.78)% | 6.54% | 9.16% |
Class M (incl. 3.50% sales charge) | (0.77)% | 6.68% | 9.07% |
Class C (incl. contingent deferred sales charge) | 1.33% | 6.93% | 8.94% |
Fidelity® Stock Selector Small Cap Fund | 3.42% | 8.12% | 10.11% |
Class I | 3.49% | 8.12% | 10.15% |
Class Z | 3.58% | 8.23% | 10.20% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Stock Selector Small Cap Fund, a class of the fund, on October 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648428341_740.jpg)
Period Ending Values | ||
$26,209 | Fidelity® Stock Selector Small Cap Fund | |
$25,100 | Russell 2000® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Lead Portfolio Manager Morgen Peck: For the fiscal year ending October 31, 2020, the fund's share classes (excluding sales charges, as applicable) posted gains in the range of about 2% to 4%, outperforming the -0.14% result of the benchmark Russell 2000® index. The top contributor to performance versus the benchmark was stock selection in the information technology sector, primarily driven choices in the software & services industry. Stock selection and an underweighting in the weak-performing real estate sector also boosted performance, as did security selection in health care’s pharmaceuticals, biotechnology & life sciences industry. An overweighting in Five9 (+170%) added more value than any other individual position. The fund’s outsized stake in Generac Holdings, which gained roughly 121%, also contributed. We trimmed our positions in Five9 and Generac by period end. Conversely, stock picks in financials detracted from relative performance, as did an underweighting in the health care equipment & services industry. The fund's largest individual relative detractor was our lighter-than-benchmark stake in Teladoc Health, which gained 152% the past year. Teladoc Health was not held at period end. Also holding back performance was an underweighting, on average, in Quidel, which gained about 288%. Quidel was not held at period end. Notable changes in positioning included reduced exposure to the financials sector and a larger allocation to health care.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
Deckers Outdoor Corp. | 1.4 |
Lithia Motors, Inc. Class A (sub. vtg.) | 1.1 |
Crocs, Inc. | 1.1 |
Endava PLC ADR | 1.1 |
Generac Holdings, Inc. | 1.1 |
TopBuild Corp. | 1.1 |
M.D.C. Holdings, Inc. | 1.0 |
Terreno Realty Corp. | 1.0 |
Synovus Financial Corp. | 1.0 |
BJ's Wholesale Club Holdings, Inc. | 0.9 |
10.8 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Health Care | 20.0 |
Industrials | 17.7 |
Information Technology | 16.5 |
Consumer Discretionary | 15.7 |
Financials | 13.4 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks and Equity Futures | 98.2% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.7% |
* Foreign investments - 8.7%
Percentages are adjusted for the effect of futures contracts and swaps, if applicable.
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 1.1% | |||
Media - 1.1% | |||
Nexstar Broadcasting Group, Inc. Class A | 66,500 | $5,480 | |
TechTarget, Inc. (a) | 75,200 | 3,294 | |
Tegna, Inc. | 274,200 | 3,299 | |
12,073 | |||
CONSUMER DISCRETIONARY - 15.7% | |||
Auto Components - 0.6% | |||
Fox Factory Holding Corp. (a) | 83,900 | 7,054 | |
Diversified Consumer Services - 0.5% | |||
Laureate Education, Inc. Class A (a) | 423,700 | 5,508 | |
Hotels, Restaurants & Leisure - 4.3% | |||
Boyd Gaming Corp. | 118,400 | 3,756 | |
Brinker International, Inc. | 203,100 | 8,843 | |
Caesars Entertainment, Inc. (a) | 192,450 | 8,626 | |
Churchill Downs, Inc. | 66,000 | 9,844 | |
Extended Stay America, Inc. unit | 178,200 | 2,023 | |
Marriott Vacations Worldwide Corp. | 57,100 | 5,516 | |
Wendy's Co. | 336,400 | 7,350 | |
Wingstop, Inc. | 29,300 | 3,408 | |
49,366 | |||
Household Durables - 3.8% | |||
Installed Building Products, Inc. (a) | 29,300 | 2,653 | |
M.D.C. Holdings, Inc. | 266,726 | 11,608 | |
Skyline Champion Corp. (a) | 189,700 | 4,866 | |
Taylor Morrison Home Corp. (a) | 241,700 | 5,221 | |
Tempur Sealy International, Inc. (a) | 24,588 | 2,188 | |
Toll Brothers, Inc. | 113,400 | 4,795 | |
TopBuild Corp. (a) | 81,500 | 12,487 | |
43,818 | |||
Internet & Direct Marketing Retail - 0.2% | |||
1-800-FLOWERS.com, Inc. Class A (a) | 118,400 | 2,348 | |
Leisure Products - 1.2% | |||
Acushnet Holdings Corp. | 130,200 | 4,444 | |
Brunswick Corp. | 61,500 | 3,918 | |
Clarus Corp. | 385,333 | 5,977 | |
14,339 | |||
Specialty Retail - 2.3% | |||
Dick's Sporting Goods, Inc. | 64,900 | 3,677 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 57,300 | 13,154 | |
Murphy U.S.A., Inc. | 44,150 | 5,399 | |
Williams-Sonoma, Inc. | 51,100 | 4,661 | |
Winmark Corp. | 1,600 | 271 | |
27,162 | |||
Textiles, Apparel & Luxury Goods - 2.8% | |||
Crocs, Inc. (a) | 248,700 | 13,014 | |
Deckers Outdoor Corp. (a) | 61,100 | 15,476 | |
G-III Apparel Group Ltd. (a) | 261,500 | 3,525 | |
32,015 | |||
TOTAL CONSUMER DISCRETIONARY | 181,610 | ||
CONSUMER STAPLES - 4.9% | |||
Food & Staples Retailing - 1.3% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 279,400 | 10,698 | |
Performance Food Group Co. (a) | 135,287 | 4,547 | |
15,245 | |||
Food Products - 2.4% | |||
Darling Ingredients, Inc. (a) | 204,500 | 8,794 | |
Freshpet, Inc. (a) | 32,500 | 3,721 | |
Nomad Foods Ltd. (a) | 316,900 | 7,685 | |
Post Holdings, Inc. (a) | 35,000 | 3,007 | |
The Simply Good Foods Co. (a) | 230,500 | 4,333 | |
27,540 | |||
Household Products - 0.7% | |||
Central Garden & Pet Co. Class A (non-vtg.) (a) | 228,500 | 8,087 | |
Personal Products - 0.5% | |||
BellRing Brands, Inc. Class A (a) | 341,502 | 6,246 | |
TOTAL CONSUMER STAPLES | 57,118 | ||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Northern Oil & Gas, Inc. (a)(b) | 690,540 | 2,555 | |
FINANCIALS - 13.4% | |||
Banks - 5.0% | |||
BancFirst Corp. (b) | 78,878 | 3,506 | |
ConnectOne Bancorp, Inc. | 218,300 | 3,368 | |
First Bancorp, Puerto Rico | 620,500 | 4,027 | |
First Hawaiian, Inc. | 169,200 | 2,920 | |
First Interstate Bancsystem, Inc. | 82,400 | 2,909 | |
Hilltop Holdings, Inc. | 195,800 | 4,466 | |
Preferred Bank, Los Angeles | 70,000 | 2,368 | |
Signature Bank | 76,700 | 6,193 | |
Synovus Financial Corp. | 433,100 | 11,261 | |
Trico Bancshares | 224,017 | 6,481 | |
United Community Bank, Inc. | 209,400 | 4,385 | |
Western Alliance Bancorp. | 139,400 | 5,743 | |
57,627 | |||
Capital Markets - 3.4% | |||
AllianceBernstein Holding LP | 154,000 | 4,475 | |
Cohen & Steers, Inc. | 58,500 | 3,294 | |
Focus Financial Partners, Inc. Class A (a) | 73,200 | 2,673 | |
Hamilton Lane, Inc. Class A | 88,000 | 6,134 | |
Houlihan Lokey | 66,200 | 4,151 | |
Lazard Ltd. Class A | 297,100 | 10,003 | |
LPL Financial | 52,000 | 4,156 | |
Morningstar, Inc. | 11,801 | 2,247 | |
TMX Group Ltd. | 22,900 | 2,225 | |
39,358 | |||
Consumer Finance - 1.5% | |||
Encore Capital Group, Inc. (a) | 79,700 | 2,545 | |
First Cash Financial Services, Inc. | 46,500 | 2,420 | |
Green Dot Corp. Class A (a) | 59,100 | 3,151 | |
Navient Corp. | 529,000 | 4,237 | |
OneMain Holdings, Inc. | 154,000 | 5,373 | |
17,726 | |||
Diversified Financial Services - 0.8% | |||
Cannae Holdings, Inc. (a) | 245,600 | 9,082 | |
Insurance - 1.5% | |||
Assurant, Inc. | 18,100 | 2,251 | |
First American Financial Corp. | 155,400 | 6,929 | |
Primerica, Inc. | 75,500 | 8,323 | |
17,503 | |||
Thrifts & Mortgage Finance - 1.2% | |||
Essent Group Ltd. | 221,700 | 8,835 | |
NMI Holdings, Inc. (a) | 217,700 | 4,678 | |
13,513 | |||
TOTAL FINANCIALS | 154,809 | ||
HEALTH CARE - 19.9% | |||
Biotechnology - 11.7% | |||
Abcam PLC ADR | 231,300 | 4,395 | |
Acceleron Pharma, Inc. (a) | 21,800 | 2,280 | |
ADC Therapeutics SA (a) | 104,781 | 3,006 | |
Agios Pharmaceuticals, Inc. (a) | 101,815 | 4,080 | |
Aprea Therapeutics, Inc. | 86,900 | 1,895 | |
Arcutis Biotherapeutics, Inc. (a) | 134,500 | 2,397 | |
Argenx SE ADR (a) | 27,331 | 6,782 | |
Ascendis Pharma A/S sponsored ADR (a) | 34,006 | 5,555 | |
ChemoCentryx, Inc. (a) | 67,600 | 3,245 | |
Crinetics Pharmaceuticals, Inc. (a) | 137,179 | 1,657 | |
FibroGen, Inc. (a) | 113,000 | 4,337 | |
Global Blood Therapeutics, Inc. (a) | 60,400 | 3,194 | |
Insmed, Inc. (a) | 204,017 | 6,720 | |
Intercept Pharmaceuticals, Inc. (a) | 33,803 | 939 | |
Keros Therapeutics, Inc. | 67,200 | 3,736 | |
Kura Oncology, Inc. (a) | 179,972 | 5,624 | |
Mirati Therapeutics, Inc. (a) | 48,000 | 10,423 | |
Morphic Holding, Inc. (a) | 100,538 | 2,705 | |
Neurocrine Biosciences, Inc. (a) | 54,632 | 5,391 | |
Novavax, Inc. (a)(b) | 48,300 | 3,898 | |
Passage Bio, Inc. | 162,139 | 2,726 | |
Poseida Therapeutics, Inc. (a)(b) | 26,768 | 308 | |
Prelude Therapeutics, Inc. (b) | 29,800 | 1,050 | |
Prelude Therapeutics, Inc. | 73,526 | 2,331 | |
Protagonist Therapeutics, Inc. (a) | 237,948 | 4,509 | |
PTC Therapeutics, Inc. (a) | 102,100 | 5,329 | |
Revolution Medicines, Inc. | 126,800 | 3,828 | |
Sage Therapeutics, Inc. (a) | 24,035 | 1,764 | |
Sarepta Therapeutics, Inc. (a) | 37,500 | 5,097 | |
Shattuck Labs, Inc. | 18,900 | 489 | |
Stoke Therapeutics, Inc. (a) | 45,724 | 1,755 | |
Taysha Gene Therapies, Inc. | 13,400 | 279 | |
TG Therapeutics, Inc. (a)(b) | 223,000 | 5,635 | |
Turning Point Therapeutics, Inc. (a) | 76,600 | 7,062 | |
Vaxcyte, Inc. | 62,039 | 2,318 | |
Viela Bio, Inc. | 108,536 | 3,463 | |
Xenon Pharmaceuticals, Inc. (a) | 209,042 | 2,032 | |
Zentalis Pharmaceuticals, Inc. | 50,129 | 1,985 | |
Zymeworks, Inc. (a) | 27,300 | 1,068 | |
135,287 | |||
Health Care Equipment & Supplies - 1.9% | |||
Axonics Modulation Technologies, Inc. (a) | 49,400 | 2,316 | |
Haemonetics Corp. (a) | 58,800 | 5,944 | |
Integer Holdings Corp. (a) | 91,800 | 5,366 | |
Masimo Corp. (a) | 10,997 | 2,461 | |
Nevro Corp. (a) | 39,300 | 5,864 | |
21,951 | |||
Health Care Providers & Services - 2.0% | |||
Chemed Corp. | 8,600 | 4,114 | |
LHC Group, Inc. (a) | 35,100 | 7,601 | |
Molina Healthcare, Inc. (a) | 45,700 | 8,522 | |
R1 RCM, Inc. (a) | 201,800 | 3,616 | |
23,853 | |||
Health Care Technology - 1.6% | |||
HMS Holdings Corp. (a) | 143,600 | 3,823 | |
Inovalon Holdings, Inc. Class A (a) | 123,933 | 2,353 | |
Inspire Medical Systems, Inc. (a) | 58,900 | 7,034 | |
Phreesia, Inc. (a) | 153,500 | 5,675 | |
18,885 | |||
Life Sciences Tools & Services - 2.0% | |||
Bio-Rad Laboratories, Inc. Class A (a) | 15,900 | 9,324 | |
Bruker Corp. | 121,700 | 5,177 | |
Syneos Health, Inc. (a) | 163,900 | 8,700 | |
23,201 | |||
Pharmaceuticals - 0.7% | |||
Arvinas Holding Co. LLC (a) | 179,900 | 3,762 | |
Graybug Vision, Inc. | 77,700 | 1,023 | |
IMARA, Inc. | 64,426 | 1,019 | |
Theravance Biopharma, Inc. (a) | 112,478 | 2,127 | |
7,931 | |||
TOTAL HEALTH CARE | 231,108 | ||
INDUSTRIALS - 17.7% | |||
Aerospace & Defense - 0.8% | |||
Kaman Corp. | 147,875 | 5,865 | |
Vectrus, Inc. (a) | 87,300 | 3,450 | |
9,315 | |||
Air Freight & Logistics - 0.4% | |||
Air Transport Services Group, Inc. (a) | 168,048 | 4,712 | |
Building Products - 3.7% | |||
A.O. Smith Corp. | 63,100 | 3,262 | |
Armstrong World Industries, Inc. | 58,000 | 3,474 | |
Builders FirstSource, Inc. (a) | 120,200 | 3,642 | |
Gibraltar Industries, Inc. (a) | 82,200 | 4,722 | |
Jeld-Wen Holding, Inc. (a) | 214,700 | 4,515 | |
Masonite International Corp. (a) | 66,700 | 5,870 | |
Patrick Industries, Inc. | 93,900 | 5,235 | |
Simpson Manufacturing Co. Ltd. | 48,610 | 4,313 | |
The AZEK Co., Inc. | 228,900 | 7,654 | |
42,687 | |||
Commercial Services & Supplies - 1.9% | |||
Casella Waste Systems, Inc. Class A (a) | 68,100 | 3,677 | |
HNI Corp. | 122,700 | 3,994 | |
Montrose Environmental Group, Inc. (a) | 246,400 | 6,660 | |
MSA Safety, Inc. | 21,500 | 2,836 | |
Tetra Tech, Inc. | 55,100 | 5,560 | |
22,727 | |||
Construction & Engineering - 2.2% | |||
Comfort Systems U.S.A., Inc. | 154,076 | 7,057 | |
Construction Partners, Inc. Class A (a) | 199,600 | 4,068 | |
Dycom Industries, Inc. (a) | 56,000 | 3,637 | |
EMCOR Group, Inc. | 151,580 | 10,336 | |
25,098 | |||
Electrical Equipment - 2.0% | |||
Atkore International Group, Inc. (a) | 341,270 | 7,061 | |
Generac Holdings, Inc. (a) | 59,900 | 12,588 | |
Regal Beloit Corp. | 32,500 | 3,206 | |
22,855 | |||
Machinery - 4.2% | |||
Allison Transmission Holdings, Inc. | 70,400 | 2,545 | |
ESCO Technologies, Inc. | 87,200 | 7,298 | |
Federal Signal Corp. | 249,500 | 7,156 | |
ITT, Inc. | 162,540 | 9,835 | |
Kadant, Inc. | 30,500 | 3,511 | |
Oshkosh Corp. | 56,100 | 3,779 | |
Rexnord Corp. | 150,600 | 4,831 | |
SPX Flow, Inc. (a) | 223,148 | 9,450 | |
48,405 | |||
Professional Services - 1.1% | |||
ASGN, Inc. (a) | 131,200 | 8,748 | |
TriNet Group, Inc. (a) | 66,900 | 4,611 | |
13,359 | |||
Road & Rail - 0.4% | |||
Saia, Inc. (a) | 30,700 | 4,533 | |
Trading Companies & Distributors - 1.0% | |||
Beacon Roofing Supply, Inc. (a) | 83,300 | 2,557 | |
BMC Stock Holdings, Inc. (a) | 114,200 | 4,521 | |
Rush Enterprises, Inc. Class A | 137,088 | 4,913 | |
11,991 | |||
TOTAL INDUSTRIALS | 205,682 | ||
INFORMATION TECHNOLOGY - 16.5% | |||
Electronic Equipment & Components - 2.2% | |||
ePlus, Inc. (a) | 49,276 | 3,327 | |
Fabrinet (a) | 158,740 | 9,528 | |
Insight Enterprises, Inc. (a) | 134,000 | 7,149 | |
TTM Technologies, Inc. (a) | 514,084 | 6,102 | |
26,106 | |||
IT Services - 5.4% | |||
Black Knight, Inc. (a) | 47,600 | 4,186 | |
CACI International, Inc. Class A (a) | 12,200 | 2,544 | |
Endava PLC ADR (a) | 201,200 | 12,857 | |
ExlService Holdings, Inc. (a) | 133,433 | 10,106 | |
ManTech International Corp. Class A | 52,600 | 3,413 | |
Maximus, Inc. | 49,950 | 3,376 | |
Perficient, Inc. (a) | 119,800 | 4,691 | |
Science Applications International Corp. | 50,750 | 3,876 | |
Shift4 Payments, Inc. | 148,100 | 7,540 | |
WNS Holdings Ltd. sponsored ADR (a) | 175,050 | 10,090 | |
62,679 | |||
Semiconductors & Semiconductor Equipment - 4.0% | |||
Array Technologies, Inc. | 66,500 | 2,451 | |
Brooks Automation, Inc. | 101,600 | 4,745 | |
CMC Materials, Inc. | 43,100 | 6,128 | |
Entegris, Inc. | 139,600 | 10,438 | |
MKS Instruments, Inc. | 32,700 | 3,544 | |
Onto Innovation, Inc. (a) | 120,650 | 3,869 | |
Semtech Corp. (a) | 135,400 | 7,432 | |
SiTime Corp. | 48,800 | 4,074 | |
Synaptics, Inc. (a) | 53,600 | 4,110 | |
46,791 | |||
Software - 4.4% | |||
Cerence, Inc. (a)(b) | 79,900 | 4,361 | |
Digital Turbine, Inc. (a) | 346,884 | 9,942 | |
Duck Creek Technologies, Inc. (a)(b) | 103,000 | 4,467 | |
Everbridge, Inc. (a)(b) | 21,650 | 2,267 | |
Five9, Inc. (a) | 65,600 | 9,953 | |
Manhattan Associates, Inc. (a) | 46,300 | 3,959 | |
Ping Identity Holding Corp. (a)(b) | 209,800 | 5,809 | |
Tenable Holdings, Inc. (a) | 94,600 | 3,227 | |
Workiva, Inc. (a) | 120,300 | 6,654 | |
50,639 | |||
Technology Hardware, Storage & Peripherals - 0.5% | |||
Corsair Gaming, Inc. | 223,800 | 5,380 | |
TOTAL INFORMATION TECHNOLOGY | 191,595 | ||
MATERIALS - 3.7% | |||
Chemicals - 1.4% | |||
Ashland Global Holdings, Inc. | 57,000 | 3,977 | |
Huntsman Corp. | 214,600 | 5,213 | |
Innospec, Inc. | 111,209 | 7,355 | |
16,545 | |||
Construction Materials - 0.7% | |||
Eagle Materials, Inc. | 94,700 | 8,073 | |
Metals & Mining - 1.2% | |||
Commercial Metals Co. | 482,800 | 9,970 | |
Warrior Metropolitan Coal, Inc. | 238,100 | 3,572 | |
13,542 | |||
Paper & Forest Products - 0.4% | |||
Louisiana-Pacific Corp. | 161,800 | 4,624 | |
TOTAL MATERIALS | 42,784 | ||
REAL ESTATE - 4.1% | |||
Equity Real Estate Investment Trusts (REITs) - 3.9% | |||
CubeSmart | 82,200 | 2,789 | |
Four Corners Property Trust, Inc. | 153,600 | 3,892 | |
Lexington Corporate Properties Trust | 954,400 | 9,477 | |
Rexford Industrial Realty, Inc. | 202,850 | 9,424 | |
RLJ Lodging Trust | 492,715 | 4,030 | |
Sunstone Hotel Investors, Inc. | 539,800 | 4,005 | |
Terreno Realty Corp. | 204,900 | 11,532 | |
45,149 | |||
Real Estate Management & Development - 0.2% | |||
Cushman & Wakefield PLC (a) | 242,600 | 2,843 | |
TOTAL REAL ESTATE | 47,992 | ||
UTILITIES - 0.4% | |||
Gas Utilities - 0.4% | |||
Brookfield Infrastructure Corp. A Shares | 82,500 | 4,494 | |
TOTAL COMMON STOCKS | |||
(Cost $933,697) | 1,131,820 | ||
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Aristea Therapeutics, Inc. Series B (c)(d) | |||
(Cost $706) | 128,000 | 706 | |
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 0.09% to 0.11% 11/12/20 to 12/3/20 (e) | |||
(Cost $1,640) | 1,640 | 1,640 | |
Shares | Value (000s) | ||
Money Market Funds - 4.4% | |||
Fidelity Cash Central Fund 0.10% (f) | 32,317,548 | $32,324 | |
Fidelity Securities Lending Cash Central Fund 0.11% (f)(g) | 18,389,804 | 18,392 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $50,716) | 50,716 | ||
TOTAL INVESTMENT IN SECURITIES - 102.2% | |||
(Cost $986,759) | 1,184,882 | ||
NET OTHER ASSETS (LIABILITIES) - (2.2)% | (25,510) | ||
NET ASSETS - 100% | $1,159,372 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 97 | Dec. 2020 | $7,453 | $69 | $69 |
The notional amount of futures purchased as a percentage of Net Assets is 0.6%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - 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 $706,000 or 0.1% of net assets.
(d) Level 3 security
(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 $1,323,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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) |
Aristea Therapeutics, Inc. Series B | 10/6/20 | $706 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $204 |
Fidelity Securities Lending Cash Central Fund | 68 |
Total | $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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, 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: | ||||
Communication Services | $12,073 | $12,073 | $-- | $-- |
Consumer Discretionary | 181,610 | 181,610 | -- | -- |
Consumer Staples | 57,118 | 57,118 | -- | -- |
Energy | 2,555 | 2,555 | -- | -- |
Financials | 154,809 | 154,809 | -- | -- |
Health Care | 231,814 | 228,777 | 2,331 | 706 |
Industrials | 205,682 | 205,682 | -- | -- |
Information Technology | 191,595 | 191,595 | -- | -- |
Materials | 42,784 | 42,784 | -- | -- |
Real Estate | 47,992 | 47,992 | -- | -- |
Utilities | 4,494 | 4,494 | -- | -- |
U.S. Government and Government Agency Obligations | 1,640 | -- | 1,640 | -- |
Money Market Funds | 50,716 | 50,716 | -- | -- |
Total Investments in Securities: | $1,184,882 | $1,180,205 | $3,971 | $706 |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $69 | $69 | $-- | $-- |
Total Assets | $69 | $69 | $-- | $-- |
Total Derivative Instruments: | $69 | $69 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2020. 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) | $69 | $0 |
Total Equity Risk | 69 | 0 |
Total Value of Derivatives | $69 | $0 |
(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 Total accumulated earnings (loss).
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) | October 31, 2020 | |
Assets | ||
Investment in securities, at value (including securities loaned of $16,975) — See accompanying schedule: Unaffiliated issuers (cost $936,043) | $1,134,166 | |
Fidelity Central Funds (cost $50,716) | 50,716 | |
Total Investment in Securities (cost $986,759) | $1,184,882 | |
Cash | 27 | |
Receivable for investments sold | 10,114 | |
Receivable for fund shares sold | 1,794 | |
Dividends receivable | 296 | |
Distributions receivable from Fidelity Central Funds | 14 | |
Prepaid expenses | 2 | |
Other receivables | 34 | |
Total assets | 1,197,163 | |
Liabilities | ||
Payable for investments purchased | $16,082 | |
Payable for fund shares redeemed | 2,054 | |
Accrued management fee | 783 | |
Distribution and service plan fees payable | 21 | |
Payable for daily variation margin on futures contracts | 250 | |
Other affiliated payables | 197 | |
Other payables and accrued expenses | 18 | |
Collateral on securities loaned | 18,386 | |
Total liabilities | 37,791 | |
Net Assets | $1,159,372 | |
Net Assets consist of: | ||
Paid in capital | $947,240 | |
Total accumulated earnings (loss) | 212,132 | |
Net Assets | $1,159,372 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($51,533 ÷ 2,139.3 shares)(a) | $24.09 | |
Maximum offering price per share (100/94.25 of $24.09) | $25.56 | |
Class M: | ||
Net Asset Value and redemption price per share ($8,039 ÷ 346.5 shares)(a) | $23.20 | |
Maximum offering price per share (100/96.50 of $23.20) | $24.04 | |
Class C: | ||
Net Asset Value and offering price per share ($7,628 ÷ 355.2 shares)(a) | $21.48 | |
Stock Selector Small Cap: | ||
Net Asset Value, offering price and redemption price per share ($960,083 ÷ 38,758.3 shares) | $24.77 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($78,784 ÷ 3,160.8 shares) | $24.93 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($53,305 ÷ 2,145.3 shares) | $24.85 |
(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 | Year ended October 31, 2020 | |
Investment Income | ||
Dividends | $10,484 | |
Interest | 5 | |
Income from Fidelity Central Funds (including $68 from security lending) | 272 | |
Total income | 10,761 | |
Expenses | ||
Management fee | ||
Basic fee | $6,169 | |
Performance adjustment | 2,157 | |
Transfer agent fees | 1,887 | |
Distribution and service plan fees | 217 | |
Accounting fees | 349 | |
Custodian fees and expenses | 28 | |
Independent trustees' fees and expenses | 6 | |
Registration fees | 133 | |
Audit | 60 | |
Legal | 5 | |
Miscellaneous | 28 | |
Total expenses before reductions | 11,039 | |
Expense reductions | (104) | |
Total expenses after reductions | 10,935 | |
Net investment income (loss) | (174) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 19,831 | |
Foreign currency transactions | (2) | |
Futures contracts | (567) | |
Total net realized gain (loss) | 19,262 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,623 | |
Fidelity Central Funds | (1) | |
Futures contracts | 69 | |
Total change in net unrealized appreciation (depreciation) | 17,691 | |
Net gain (loss) | 36,953 | |
Net increase (decrease) in net assets resulting from operations | $36,779 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2020 | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(174) | $3,862 |
Net realized gain (loss) | 19,262 | 66,043 |
Change in net unrealized appreciation (depreciation) | 17,691 | 50,913 |
Net increase (decrease) in net assets resulting from operations | 36,779 | 120,818 |
Distributions to shareholders | (23,000) | (186,724) |
Share transactions - net increase (decrease) | 116,242 | (20,129) |
Total increase (decrease) in net assets | 130,021 | (86,035) |
Net Assets | ||
Beginning of period | 1,029,351 | 1,115,386 |
End of period | $1,159,372 | $1,029,351 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Stock Selector Small Cap Fund Class A
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $23.82 | $25.94 | $28.16 | $23.48 | $24.48 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.07) | .01 | .04B | –C | .05 |
Net realized and unrealized gain (loss) | .83 | 2.30 | .43 | 5.05 | .52 |
Total from investment operations | .76 | 2.31 | .47 | 5.05 | .57 |
Distributions from net investment income | (.02)D | (.01) | (.03) | (.07) | (.05) |
Distributions from net realized gain | (.47)D | (4.42) | (2.65) | (.30) | (1.52) |
Total distributions | (.49) | (4.43) | (2.69)E | (.37) | (1.57) |
Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
Net asset value, end of period | $24.09 | $23.82 | $25.94 | $28.16 | $23.48 |
Total ReturnF,G | 3.15% | 11.55% | 1.73% | 21.62% | 2.30% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | 1.32% | 1.04% | .97% | 1.05% | 1.16% |
Expenses net of fee waivers, if any | 1.32% | 1.04% | .97% | 1.04% | 1.16% |
Expenses net of all reductions | 1.31% | 1.04% | .95% | 1.04% | 1.15% |
Net investment income (loss) | (.29)% | .06% | .14%B | .02% | .22% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $52 | $37 | $23 | $14 | $12 |
Portfolio turnover rateJ | 70% | 56%K | 68% | 62% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
C Amount represents less than $.005 per share.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class M
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $23.00 | $25.21 | $27.49 | $22.95 | $24.00 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.13) | (.05) | (.06)B | (.08) | (.03) |
Net realized and unrealized gain (loss) | .79 | 2.21 | .43 | 4.92 | .50 |
Total from investment operations | .66 | 2.16 | .37 | 4.84 | .47 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (.47)C | (4.37) | (2.65) | (.30) | (1.52) |
Total distributions | (.47) | (4.37) | (2.65) | (.30) | (1.52) |
Redemption fees added to paid in capitalA | – | – | –D | –D | –D |
Net asset value, end of period | $23.20 | $23.00 | $25.21 | $27.49 | $22.95 |
Total ReturnE,F | 2.83% | 11.20% | 1.40% | 21.20% | 1.89% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.61% | 1.35% | 1.33% | 1.39% | 1.51% |
Expenses net of fee waivers, if any | 1.60% | 1.35% | 1.33% | 1.39% | 1.51% |
Expenses net of all reductions | 1.60% | 1.35% | 1.32% | 1.39% | 1.50% |
Net investment income (loss) | (.58)% | (.24)% | (.22)%B | (.33)% | (.13)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $8 | $7 | $5 | $3 | $3 |
Portfolio turnover rateI | 70% | 56%J | 68% | 62% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.32) %.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class C
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $21.43 | $23.79 | $26.20 | $21.99 | $23.16 |
Income from Investment Operations | |||||
Net investment income (loss)A | (.23) | (.16) | (.17)B | (.20) | (.13) |
Net realized and unrealized gain (loss) | .74 | 2.06 | .41 | 4.71 | .48 |
Total from investment operations | .51 | 1.90 | .24 | 4.51 | .35 |
Distributions from net investment income | – | – | – | – | – |
Distributions from net realized gain | (.47)C | (4.26) | (2.65) | (.30) | (1.52) |
Total distributions | (.47) | (4.26) | (2.65) | (.30) | (1.52) |
Redemption fees added to paid in capitalA | – | – | –D | –D | –D |
Net asset value, end of period | $21.48 | $21.43 | $23.79 | $26.20 | $21.99 |
Total ReturnE,F | 2.33% | 10.64% | .94% | 20.62% | 1.41% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 2.13% | 1.86% | 1.79% | 1.87% | 1.98% |
Expenses net of fee waivers, if any | 2.13% | 1.86% | 1.79% | 1.87% | 1.98% |
Expenses net of all reductions | 2.12% | 1.86% | 1.78% | 1.86% | 1.97% |
Net investment income (loss) | (1.10)% | (.76)% | (.68)%B | (.81)% | (.60)% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $8 | $8 | $6 | $5 | $3 |
Portfolio turnover rateI | 70% | 56%J | 68% | 62% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.78) %.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.47 | $26.50 | $28.71 | $23.91 | $24.89 |
Income from Investment Operations | |||||
Net investment income (loss)A | – | .08 | .12B | .08 | .11 |
Net realized and unrealized gain (loss) | .84 | 2.36 | .43 | 5.15 | .54 |
Total from investment operations | .84 | 2.44 | .55 | 5.23 | .65 |
Distributions from net investment income | (.07)C | (.06) | (.11) | (.12) | (.11) |
Distributions from net realized gain | (.47)C | (4.42) | (2.65) | (.30) | (1.52) |
Total distributions | (.54) | (4.47) | (2.76) | (.43)D | (1.63) |
Redemption fees added to paid in capitalA | – | – | –E | –E | –E |
Net asset value, end of period | $24.77 | $24.47 | $26.50 | $28.71 | $23.91 |
Total ReturnF | 3.42% | 11.90% | 2.04% | 22.00% | 2.57% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.02% | .75% | .68% | .75% | .89% |
Expenses net of fee waivers, if any | 1.02% | .75% | .68% | .75% | .89% |
Expenses net of all reductions | 1.01% | .75% | .67% | .74% | .88% |
Net investment income (loss) | -% | .36% | .43%B | .31% | .49% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $960 | $938 | $1,035 | $1,511 | $1,359 |
Portfolio turnover rateI | 70% | 56%J | 68% | 62% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .33%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 per share.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class I
Years ended October 31, | 2020 | 2019 | 2018 | 2017 | 2016 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $24.54 | $26.57 | $28.78 | $23.97 | $24.96 |
Income from Investment Operations | |||||
Net investment income (loss)A | – | .08 | .12B | .08 | .12 |
Net realized and unrealized gain (loss) | .86 | 2.37 | .43 | 5.15 | .53 |
Total from investment operations | .86 | 2.45 | .55 | 5.23 | .65 |
Distributions from net investment income | (.00)C,D | (.06) | (.11) | (.12) | (.12) |
Distributions from net realized gain | (.47)D | (4.42) | (2.65) | (.30) | (1.52) |
Total distributions | (.47) | (4.48) | (2.76) | (.42) | (1.64) |
Redemption fees added to paid in capitalA | – | – | –C | –C | –C |
Net asset value, end of period | $24.93 | $24.54 | $26.57 | $28.78 | $23.97 |
Total ReturnE | 3.49% | 11.87% | 2.02% | 21.97% | 2.55% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.01% | .76% | .69% | .75% | .87% |
Expenses net of fee waivers, if any | 1.00% | .76% | .69% | .75% | .87% |
Expenses net of all reductions | 1.00% | .75% | .68% | .75% | .87% |
Net investment income (loss) | .02% | .35% | .42%B | .31% | .50% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $79 | $9 | $40 | $43 | $43 |
Portfolio turnover rateH | 70% | 56%I | 68% | 62% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .31%.
C Amount represents less than $.005 per share.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Stock Selector Small Cap Fund Class Z
Years ended October 31, | 2020 | 2019 | 2018 | 2017 A |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $24.55 | $26.59 | $28.81 | $26.36 |
Income from Investment Operations | ||||
Net investment income (loss)B | .03 | .12 | .16C | .07 |
Net realized and unrealized gain (loss) | .86 | 2.36 | .43 | 2.38 |
Total from investment operations | .89 | 2.48 | .59 | 2.45 |
Distributions from net investment income | (.12)D | (.10) | (.16) | – |
Distributions from net realized gain | (.47)D | (4.42) | (2.65) | – |
Total distributions | (.59) | (4.52) | (2.81) | – |
Redemption fees added to paid in capitalB | – | – | –E | –E |
Net asset value, end of period | $24.85 | $24.55 | $26.59 | $28.81 |
Total ReturnF,G | 3.58% | 12.05% | 2.17% | 9.29% |
Ratios to Average Net AssetsH,I | ||||
Expenses before reductions | .89% | .61% | .55% | .62%J |
Expenses net of fee waivers, if any | .88% | .61% | .55% | .61%J |
Expenses net of all reductions | .88% | .61% | .54% | .61%J |
Net investment income (loss) | .14% | .49% | .56%C | .34%J |
Supplemental Data | ||||
Net assets, end of period (in millions) | $53 | $30 | $6 | $1 |
Portfolio turnover rateK | 70% | 56%L | 68% | 62%J |
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 Net investment income per share reflects one or more large, non-recurring dividend which amounted to $.03 per share. Excluding such non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
(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. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. ("FIISC"). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Distributors Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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.
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 other 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 October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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 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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. These differences resulted in distribution reclassifications. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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, losses deferred due to wash sales and excise tax regulations.
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 | $254,789 |
Gross unrealized depreciation | (61,748) |
Net unrealized appreciation (depreciation) | $193,041 |
Tax Cost | $991,840 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $21,000 |
Net unrealized appreciation (depreciation) on securities and other investments | $193,041 |
The Fund intends to elect to defer to its next fiscal year $1,909 of ordinary losses recognized during the period January 1, 2020 to October 31, 2020.
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $3,104 | $ 14,391 |
Long-term Capital Gains | 19,896 | 172,333 |
Total | $23,000 | $ 186,724 |
Restricted Securities (including Private Placements). 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, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Stock Selector Small Cap Fund | 793,538 | 718,105 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 Fund as compared to its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .79% 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 Company LLC (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% | $107 | $8 |
Class M | .25% | .25% | 38 | –(a) |
Class C | .75% | .25% | 72 | 21 |
$217 | $29 |
(a) Amount represents 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 | $46 |
Class M | 4 |
Class C(a) | 1 |
$51 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (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. Effective February 1, 2020, the Board approved to change the fee for Class Z from .046% to .044%.
For the period, transfer agent fees for each applicable class were as follows:
Amount | % of Class-Level Average Net Assets | |
Class A | $97 | .23 |
Class M | 20 | .26 |
Class C | 20 | .28 |
Stock Selector Small Cap | 1,672 | .18 |
Class I | 61 | .16 |
Class Z | 17 | .04 |
$1,887 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Stock Selector Small Cap Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Stock Selector Small Cap Fund | $33 |
Interfund Trades. 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.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 7,510 shares of the Fund were redeemed in-kind for investments and cash with a value of $177,450. The Fund had a net realized gain of $41,770 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $6.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Stock Selector Small Cap Fund | $2 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Stock Selector Small Cap Fund | $7 | $5 | $– |
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 $86 for the period.
In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $1.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
In addition, during the period the investment adviser or an affiliate reimbursed the Fund $12 for an operational error which is included in the accompanying Statement of Operations.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Class A | $744 | $3,980 |
Class M | 150 | 863 |
Class C | 159 | 1,165 |
Stock Selector Small Cap | 20,831 | 172,948 |
Class I | 203 | 6,723 |
Class Z | 913 | 1,045 |
Total | $23,000 | $186,724 |
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 | |
Year ended October 31, 2020 | Year ended October 31, 2019 | Year ended October 31, 2020 | Year ended October 31, 2019 | |
Class A | ||||
Shares sold | 1,173 | 769 | $26,630 | $17,323 |
Reinvestment of distributions | 30 | 192 | 743 | 3,957 |
Shares redeemed | (625) | (281) | (13,830) | (6,317) |
Net increase (decrease) | 578 | 680 | $13,543 | $14,963 |
Class M | ||||
Shares sold | 137 | 162 | $3,007 | $3,483 |
Reinvestment of distributions | 6 | 42 | 145 | 829 |
Shares redeemed | (120) | (68) | (2,494) | (1,434) |
Net increase (decrease) | 23 | 136 | $658 | $2,878 |
Class C | ||||
Shares sold | 169 | 206 | $3,361 | $4,171 |
Reinvestment of distributions | 7 | 62 | 158 | 1,157 |
Shares redeemed | (173) | (188) | (3,439) | (3,775) |
Net increase (decrease) | 3 | 80 | $80 | $1,553 |
Stock Selector Small Cap | ||||
Shares sold | 11,100 | 7,634 | $259,829 | $177,127 |
Reinvestment of distributions | 799 | 7,937 | 20,024 | 167,624 |
Shares redeemed | (11,479) | (16,301)(a) | (263,471) | (379,548)(a) |
Net increase (decrease) | 420 | (730) | $16,382 | $(34,797) |
Class I | ||||
Shares sold | 3,321 | 538 | $74,891 | $12,465 |
Reinvestment of distributions | 8 | 316 | 191 | 6,703 |
Shares redeemed | (537) | (1,990)(a) | (12,504) | (46,997)(a) |
Net increase (decrease) | 2,792 | (1,136) | $62,578 | $(27,829) |
Class Z | ||||
Shares sold | 1,898 | 1,270 | $45,307 | $29,611 |
Reinvestment of distributions | 35 | 17 | 873 | 352 |
Shares redeemed | (1,018) | (287) | (23,180) | (6,860) |
Net increase (decrease) | 915 | 1,000 | $23,000 | $23,103 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Stock Selector Small Cap Fund :
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Stock Selector Small Cap Fund (the "Fund"), a fund of Fidelity Capital Trust, including the schedule of investments, as of October 31, 2020, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 14, 2020
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Stock Selector Small Cap Fund | ||||
Class A | 1.33% | |||
Actual | $1,000.00 | $1,186.10 | $7.31 | |
Hypothetical-C | $1,000.00 | $1,018.45 | $6.75 | |
Class M | 1.62% | |||
Actual | $1,000.00 | $1,184.30 | $8.89 | |
Hypothetical-C | $1,000.00 | $1,016.99 | $8.21 | |
Class C | 2.13% | |||
Actual | $1,000.00 | $1,181.50 | $11.68 | |
Hypothetical-C | $1,000.00 | $1,014.43 | $10.79 | |
Stock Selector Small Cap | 1.03% | |||
Actual | $1,000.00 | $1,188.00 | $5.66 | |
Hypothetical-C | $1,000.00 | $1,019.96 | $5.23 | |
Class I | 1.03% | |||
Actual | $1,000.00 | $1,188.30 | $5.67 | |
Hypothetical-C | $1,000.00 | $1,019.96 | $5.23 | |
Class Z | .90% | |||
Actual | $1,000.00 | $1,189.00 | $4.95 | |
Hypothetical-C | $1,000.00 | $1,020.61 | $4.57 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Stock Selector Small Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Pay Date | Record Date | Capital Gains | |
Fidelity Stock Selector Small Cap Fund | |||
Class A | 12/04/20 | 12/07/20 | $0.429 |
Class M | 12/04/20 | 12/07/20 | $0.429 |
Class C | 12/04/20 | 12/07/20 | $0.429 |
Stock Selector Small Cap | 12/04/20 | 12/07/20 | $0.429 |
Class I | 12/04/20 | 12/07/20 | $0.429 |
Class Z | 12/04/20 | 12/07/20 | $0.429 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2020, $22,181,838, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Stock Selector Small Cap, Class I, and Class Z designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Stock Selector Small Cap, Class I, and Class Z designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 384,059,219.688 | 68.900 |
Against | 72,070,826.499 | 12.929 |
Abstain | 54,505,244.093 | 9.778 |
Broker Non-Vote | 46,784,108.870 | 8.393 |
TOTAL | 557,419,399.149 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
SCS-ANN-1220
1.703160.123
Fidelity® Value Fund
October 31, 2020
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See the inside front cover for important information about access to your fund’s shareholder reports.
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2020 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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2020 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Value Fund | (6.52)% | 3.84% | 8.36% |
Class K | (6.33)% | 3.96% | 8.50% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Value Fund, a class of the fund, on October 31, 2010.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period.
![](https://capedge.com/proxy/N-CSR/0001379491-20-006346/img648426386_740.jpg)
Period Ending Values | ||
$22,329 | Fidelity® Value Fund | |
$24,565 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 9.71% for the 12 months ending October 31, 2020, a volatile period marked by a steep but brief decline due to the early-2020 outbreak and spread of the coronavirus, followed by a historic rebound. Declared a pandemic on March 11, the COVID-19 crisis and containment efforts caused broad contraction in economic activity, along with extreme uncertainty, volatility and dislocation in financial markets. By mid-March, U.S. stocks had entered bear-market territory less than a month after hitting an all-time high and extending the longest-running bull market in American history. A historically rapid and expansive U.S. monetary/fiscal-policy response provided a partial offset to the economic disruption and fueled a sharp uptrend beginning March 24. Other supporting factors included resilient corporate earnings, near-term potential for a COVID-19 vaccine breakthrough and traction on a broader economic reopening. The historic rally lasted until September 2, when the S&P 500 achieved an all-time high, before retreating through October 31. The loss of momentum reflected Congress’s inability to reach a deal on additional fiscal stimulus, as well as concerns about election uncertainty, indications the U.S. economic recovery is stalling, a second wave of COVID-19 cases, and stretched valuations and crowded positioning in big tech. Growth stocks dominated value shares for the year. By sector, information technology (+34%) led. In contrast, energy (-46%) fell hard along with the price of crude oil.Comments from Lead Manager Matt Friedman and Co-Manager John Mirshekarit: For the fiscal year ending October 31, 2020, the fund's share classes returned about -7% to -6%, roughly in line with the -6.94% result of the benchmark Russell Midcap® Value index. Stock selection and underweighting in real estate aided the fund’s return versus the benchmark. Strong picks in the consumer discretionary sector, primarily driven by the retailing industry, also boosted the fund’s relative performance, as did security selection and an underweighting in financials. Our non-benchmark stake in Darling Ingredients was the fund's top individual relative contributor, driven by a 121% gain. Other stocks that added value included the fund’s out-of-benchmark stake in Fedex (+72%) and an outsized position in L Brands (+91%). We reduced the fund’s positions in all three stocks by period end. Conversely, stock picks in the industrials sector, primarily within the capital goods industry, detracted from relative performance, as did weak stock selection in materials and information technology. Not owning Newmont, a benchmark component that gained 51%, also hurt on a relative basis, as did overweighting Vistra, which returned about -34%. Notable changes in positioning by period end included a reduced allocation to the energy and consumer staples sectors.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2020
% of fund's net assets | |
The AES Corp. | 1.5 |
AECOM | 1.3 |
Vistra Corp. | 1.2 |
Edison International | 1.2 |
Sensata Technologies, Inc. PLC | 1.2 |
CenterPoint Energy, Inc. | 1.1 |
Alexion Pharmaceuticals, Inc. | 1.1 |
CubeSmart | 1.1 |
Nielsen Holdings PLC | 1.0 |
Flextronics International Ltd. | 1.0 |
11.7 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Industrials | 22.9 |
Financials | 13.8 |
Materials | 11.3 |
Consumer Discretionary | 10.9 |
Health Care | 8.8 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks and Equity Futures | 99.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 15.4%
Schedule of Investments October 31, 2020
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.4% | |||
Diversified Telecommunication Services - 0.5% | |||
Liberty Global PLC Class C (a) | 1,429,600 | $26,676 | |
Media - 1.9% | |||
DISH Network Corp. Class A (a) | 539,600 | 13,754 | |
Interpublic Group of Companies, Inc. | 2,365,200 | 42,786 | |
Nexstar Broadcasting Group, Inc. Class A | 394,200 | 32,482 | |
Publicis Groupe SA | 355,461 | 12,337 | |
101,359 | |||
TOTAL COMMUNICATION SERVICES | 128,035 | ||
CONSUMER DISCRETIONARY - 10.9% | |||
Auto Components - 1.0% | |||
Adient PLC (a) | 905,900 | 19,223 | |
BorgWarner, Inc. | 896,000 | 31,342 | |
50,565 | |||
Distributors - 0.6% | |||
LKQ Corp. (a) | 1,018,700 | 32,588 | |
Diversified Consumer Services - 0.5% | |||
Laureate Education, Inc. Class A (a) | 2,011,600 | 26,151 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Caesars Entertainment, Inc. (a) | 1,039,204 | 46,577 | |
Extended Stay America, Inc. unit | 1,369,400 | 15,543 | |
62,120 | |||
Household Durables - 2.6% | |||
D.R. Horton, Inc. | 423,400 | 28,287 | |
Mohawk Industries, Inc. (a) | 361,200 | 37,272 | |
Tempur Sealy International, Inc. (a) | 244,400 | 21,752 | |
Tupperware Brands Corp. | 613,940 | 19,474 | |
Whirlpool Corp. | 170,900 | 31,610 | |
138,395 | |||
Internet & Direct Marketing Retail - 1.3% | |||
eBay, Inc. | 700,764 | 33,377 | |
Expedia, Inc. | 354,500 | 33,376 | |
66,753 | |||
Leisure Products - 0.6% | |||
Mattel, Inc. (a) | 2,337,600 | 32,189 | |
Specialty Retail - 2.3% | |||
American Eagle Outfitters, Inc. | 1,171,300 | 16,059 | |
L Brands, Inc. | 806,700 | 25,822 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 85,900 | 19,720 | |
Lowe's Companies, Inc. | 120,300 | 19,019 | |
Michaels Companies, Inc. (a)(b) | 2,280,300 | 18,493 | |
Sally Beauty Holdings, Inc. (a) | 2,328,071 | 19,486 | |
118,599 | |||
Textiles, Apparel & Luxury Goods - 0.8% | |||
PVH Corp. | 236,100 | 13,762 | |
Tapestry, Inc. | 1,294,300 | 28,772 | |
42,534 | |||
TOTAL CONSUMER DISCRETIONARY | 569,894 | ||
CONSUMER STAPLES - 4.4% | |||
Beverages - 0.3% | |||
Cott Corp. | 1,299,800 | 16,286 | |
Food & Staples Retailing - 0.4% | |||
U.S. Foods Holding Corp. (a) | 1,108,500 | 23,168 | |
Food Products - 1.7% | |||
Darling Ingredients, Inc. (a) | 837,300 | 36,004 | |
Nomad Foods Ltd. (a) | 1,121,617 | 27,199 | |
Post Holdings, Inc. (a) | 325,900 | 27,995 | |
91,198 | |||
Household Products - 1.2% | |||
Energizer Holdings, Inc. | 704,800 | 27,734 | |
Spectrum Brands Holdings, Inc. | 586,000 | 33,326 | |
61,060 | |||
Personal Products - 0.3% | |||
Edgewell Personal Care Co. (a) | 539,297 | 14,140 | |
Tobacco - 0.5% | |||
Altria Group, Inc. | 715,100 | 25,801 | |
TOTAL CONSUMER STAPLES | 231,653 | ||
ENERGY - 4.4% | |||
Energy Equipment & Services - 0.2% | |||
Liberty Oilfield Services, Inc. Class A | 370,800 | 2,477 | |
TechnipFMC PLC | 1,445,800 | 7,995 | |
10,472 | |||
Oil, Gas & Consumable Fuels - 4.2% | |||
Cabot Oil & Gas Corp. | 463,400 | 8,244 | |
Cenovus Energy, Inc. (Canada) | 5,791,981 | 18,954 | |
Cheniere Energy, Inc. (a) | 945,700 | 45,271 | |
Devon Energy Corp. | 366,500 | 3,273 | |
Energy Transfer Equity LP | 2,699,000 | 13,900 | |
Hess Corp. | 921,000 | 34,280 | |
Marathon Petroleum Corp. | 1,365,499 | 40,282 | |
Occidental Petroleum Corp. | 305,100 | 2,786 | |
Occidental Petroleum Corp. warrants 8/3/27 (a) | 38,137 | 94 | |
Pioneer Natural Resources Co. | 105,900 | 8,425 | |
The Williams Companies, Inc. | 1,971,500 | 37,833 | |
Valero Energy Corp. | 130,500 | 5,039 | |
218,381 | |||
TOTAL ENERGY | 228,853 | ||
FINANCIALS - 13.8% | |||
Banks - 2.6% | |||
Bank of Kyoto Ltd. | 305,500 | 13,492 | |
First Citizens Bancshares, Inc. | 40,092 | 18,551 | |
First Citizens Bancshares, Inc. Class B | 3,600 | 1,440 | |
M&T Bank Corp. | 271,600 | 28,132 | |
PacWest Bancorp | 1,017,100 | 19,569 | |
Signature Bank | 350,300 | 28,283 | |
Wells Fargo & Co. | 565,900 | 12,139 | |
Western Alliance Bancorp. | 348,600 | 14,362 | |
135,968 | |||
Capital Markets - 1.7% | |||
Ameriprise Financial, Inc. | 249,600 | 40,143 | |
Lazard Ltd. Class A | 678,800 | 22,855 | |
LPL Financial | 324,500 | 25,937 | |
88,935 | |||
Consumer Finance - 3.7% | |||
Ally Financial, Inc. | 1,019,200 | 27,192 | |
Capital One Financial Corp. | 438,791 | 32,067 | |
Discover Financial Services | 665,100 | 43,238 | |
Navient Corp. | 1,480,700 | 11,860 | |
OneMain Holdings, Inc. | 1,144,300 | 39,925 | |
SLM Corp. | 4,354,896 | 40,021 | |
194,303 | |||
Diversified Financial Services - 0.8% | |||
ECN Capital Corp. | 3,793,800 | 15,035 | |
Voya Financial, Inc. | 625,200 | 29,966 | |
45,001 | |||
Insurance - 4.7% | |||
Allstate Corp. | 337,200 | 29,927 | |
AMBAC Financial Group, Inc. (a) | 2,040,459 | 25,057 | |
American Financial Group, Inc. | 220,800 | 16,547 | |
American International Group, Inc. | 706,500 | 22,248 | |
Assurant, Inc. | 258,900 | 32,199 | |
Axis Capital Holdings Ltd. | 330,000 | 14,088 | |
eHealth, Inc. (a) | 15,500 | 1,040 | |
Fairfax Financial Holdings Ltd. (sub. vtg.) | 62,100 | 16,325 | |
Old Republic International Corp. | 918,400 | 14,952 | |
Principal Financial Group, Inc. | 59,800 | 2,345 | |
Reinsurance Group of America, Inc. | 308,000 | 31,114 | |
The Travelers Companies, Inc. | 339,100 | 40,933 | |
246,775 | |||
Thrifts & Mortgage Finance - 0.3% | |||
Essent Group Ltd. | 393,500 | 15,681 | |
TOTAL FINANCIALS | 726,663 | ||
HEALTH CARE - 8.8% | |||
Biotechnology - 1.2% | |||
Alexion Pharmaceuticals, Inc. (a) | 505,083 | 58,155 | |
Ascendis Pharma A/S sponsored ADR (a) | 29,543 | 4,826 | |
62,981 | |||
Health Care Equipment & Supplies - 1.0% | |||
Dentsply Sirona, Inc. | 53,800 | 2,539 | |
Envista Holdings Corp. (a) | 1,082,100 | 28,589 | |
Hill-Rom Holdings, Inc. | 62,231 | 5,667 | |
Hologic, Inc. (a) | 61,385 | 4,225 | |
Teleflex, Inc. | 19,946 | 6,347 | |
Zimmer Biomet Holdings, Inc. | 47,400 | 6,262 | |
53,629 | |||
Health Care Providers & Services - 3.7% | |||
Cardinal Health, Inc. | 242,500 | 11,104 | |
Centene Corp. (a) | 834,700 | 49,331 | |
Cigna Corp. | 289,300 | 48,304 | |
Laboratory Corp. of America Holdings (a) | 163,313 | 32,625 | |
Molina Healthcare, Inc. (a) | 6,600 | 1,231 | |
Patterson Companies, Inc. | 862,100 | 21,445 | |
Premier, Inc. | 739,800 | 24,214 | |
Quest Diagnostics, Inc. | 29,500 | 3,603 | |
191,857 | |||
Health Care Technology - 0.4% | |||
Change Healthcare, Inc. (a) | 1,533,400 | 21,698 | |
Life Sciences Tools & Services - 1.1% | |||
Agilent Technologies, Inc. | 129,219 | 13,192 | |
Avantor, Inc. (a) | 79,200 | 1,843 | |
Bio-Rad Laboratories, Inc. Class A (a) | 18,452 | 10,821 | |
IQVIA Holdings, Inc. (a) | 64,260 | 9,895 | |
PerkinElmer, Inc. | 35,030 | 4,538 | |
QIAGEN NV (a) | 47,200 | 2,239 | |
Syneos Health, Inc. (a) | 311,713 | 16,546 | |
59,074 | |||
Pharmaceuticals - 1.4% | |||
Bayer AG | 374,500 | 17,598 | |
Horizon Therapeutics PLC (a) | 57,441 | 4,304 | |
Jazz Pharmaceuticals PLC (a) | 250,467 | 36,092 | |
Mylan NV (a) | 1,113,243 | 16,187 | |
74,181 | |||
TOTAL HEALTH CARE | 463,420 | ||
INDUSTRIALS - 22.9% | |||
Aerospace & Defense - 1.4% | |||
Curtiss-Wright Corp. | 524,100 | 44,213 | |
General Dynamics Corp. | 104,400 | 13,711 | |
Howmet Aerospace, Inc. | 147,800 | 2,550 | |
Huntington Ingalls Industries, Inc. | 85,200 | 12,565 | |
73,039 | |||
Air Freight & Logistics - 1.3% | |||
FedEx Corp. | 143,700 | 37,286 | |
XPO Logistics, Inc. (a) | 356,100 | 32,049 | |
69,335 | |||
Airlines - 0.2% | |||
JetBlue Airways Corp. (a) | 844,000 | 10,103 | |
Building Products - 0.7% | |||
Jeld-Wen Holding, Inc. (a) | 1,879,100 | 39,517 | |
Commercial Services & Supplies - 1.5% | |||
ABM Industries, Inc. | 560,300 | 19,454 | |
HNI Corp. | 218,354 | 7,107 | |
Knoll, Inc. | 1,569,800 | 17,990 | |
The Brink's Co. | 758,500 | 32,487 | |
77,038 | |||
Construction & Engineering - 4.2% | |||
AECOM (a) | 1,502,923 | 67,391 | |
Arcadis NV | 1,482,075 | 34,522 | |
Fluor Corp. | 3,722,700 | 42,253 | |
Granite Construction, Inc. (b) | 2,043,500 | 39,460 | |
Willscot Mobile Mini Holdings (a) | 1,920,600 | 35,685 | |
219,311 | |||
Electrical Equipment - 2.1% | |||
Atkore International Group, Inc. (a) | 636,986 | 13,179 | |
Regal Beloit Corp. | 226,456 | 22,340 | |
Sensata Technologies, Inc. PLC (a) | 1,424,106 | 62,248 | |
Vertiv Holdings Co. | 842,000 | 14,861 | |
112,628 | |||
Industrial Conglomerates - 0.2% | |||
General Electric Co. | 1,083,300 | 8,038 | |
Machinery - 1.8% | |||
Allison Transmission Holdings, Inc. | 1,505,929 | 54,439 | |
Colfax Corp. (a) | 294,800 | 8,016 | |
Stanley Black & Decker, Inc. | 197,900 | 32,891 | |
95,346 | |||
Marine - 1.1% | |||
A.P. Moller - Maersk A/S Series B | 9,088 | 14,565 | |
Kirby Corp. (a) | 1,095,500 | 42,166 | |
56,731 | |||
Professional Services - 2.6% | |||
ASGN, Inc. (a) | 425,300 | 28,359 | |
Intertrust NV (c) | 1,201,931 | 18,618 | |
Manpower, Inc. | 540,500 | 36,684 | |
Nielsen Holdings PLC | 4,096,300 | 55,341 | |
139,002 | |||
Road & Rail - 1.8% | |||
AMERCO | 800 | 278 | |
Knight-Swift Transportation Holdings, Inc. Class A | 626,600 | 23,805 | |
Ryder System, Inc. | 842,856 | 41,519 | |
TFI International, Inc. (Canada) | 672,100 | 29,925 | |
95,527 | |||
Trading Companies & Distributors - 4.0% | |||
AerCap Holdings NV (a) | 523,196 | 12,991 | |
Beacon Roofing Supply, Inc. (a) | 1,002,500 | 30,777 | |
BMC Stock Holdings, Inc. (a) | 600,900 | 23,790 | |
Fortress Transportation & Infrastructure Investors LLC | 897,038 | 14,119 | |
GMS, Inc. (a) | 684,200 | 15,463 | |
HD Supply Holdings, Inc. (a) | 1,312,273 | 52,307 | |
MRC Global, Inc. (a) | 2,474,624 | 10,542 | |
United Rentals, Inc. (a)(b) | 99,900 | 17,811 | |
Univar, Inc. (a) | 1,888,400 | 31,329 | |
209,129 | |||
TOTAL INDUSTRIALS | 1,204,744 | ||
INFORMATION TECHNOLOGY - 5.5% | |||
Communications Equipment - 0.8% | |||
Extreme Networks, Inc. (a) | 931,505 | 3,782 | |
F5 Networks, Inc. (a) | 168,200 | 22,361 | |
ViaSat, Inc. (a) | 440,800 | 14,943 | |
41,086 | |||
Electronic Equipment & Components - 1.3% | |||
Flextronics International Ltd. (a) | 3,871,700 | 54,785 | |
Insight Enterprises, Inc. (a) | 274,355 | 14,637 | |
69,422 | |||
IT Services - 1.8% | |||
DXC Technology Co. | 1,034,636 | 19,058 | |
Econocom Group SA (a) | 5,384,726 | 11,840 | |
Science Applications International Corp. | 359,500 | 27,455 | |
Unisys Corp. (a) | 2,640,371 | 34,694 | |
93,047 | |||
Semiconductors & Semiconductor Equipment - 0.8% | |||
NXP Semiconductors NV | 100,500 | 13,580 | |
ON Semiconductor Corp. (a) | 1,126,500 | 28,264 | |
41,844 | |||
Software - 0.8% | |||
Micro Focus International PLC | 3,616,100 | 10,147 | |
SS&C Technologies Holdings, Inc. | 578,200 | 34,241 | |
44,388 | |||
TOTAL INFORMATION TECHNOLOGY | 289,787 | ||
MATERIALS - 11.3% | |||
Chemicals - 5.8% | |||
Axalta Coating Systems Ltd. (a) | 1,375,778 | 34,546 | |
Celanese Corp. Class A | 144,339 | 16,384 | |
DuPont de Nemours, Inc. | 769,540 | 43,771 | |
Eastman Chemical Co. | 261,700 | 21,156 | |
Element Solutions, Inc. (a) | 2,370,400 | 27,781 | |
FMC Corp. | 124,025 | 12,742 | |
Huntsman Corp. | 330,700 | 8,033 | |
Olin Corp. | 1,831,280 | 30,308 | |
The Chemours Co. LLC | 1,278,800 | 25,755 | |
Tronox Holdings PLC | 3,162,074 | 30,893 | |
W.R. Grace & Co. | 760,400 | 33,070 | |
Westlake Chemical Corp. | 283,700 | 19,184 | |
303,623 | |||
Construction Materials - 1.5% | |||
Eagle Materials, Inc. | 313,500 | 26,726 | |
Grupo Cementos de Chihuahua S.A.B. de CV | 2,693,700 | 13,564 | |
Martin Marietta Materials, Inc. | 56,883 | 15,151 | |
Summit Materials, Inc. (a) | 1,244,400 | 22,013 | |
77,454 | |||
Containers & Packaging - 2.8% | |||
Avery Dennison Corp. | 81,490 | 11,277 | |
Berry Global Group, Inc. (a) | 884,400 | 41,240 | |
Crown Holdings, Inc. (a) | 476,800 | 40,909 | |
O-I Glass, Inc. | 2,512,784 | 23,696 | |
WestRock Co. | 841,000 | 31,580 | |
148,702 | |||
Metals & Mining - 1.2% | |||
ArcelorMittal SA Class A unit (a) | 1,370,100 | 18,633 | |
Barrick Gold Corp. | 229,185 | 6,126 | |
Constellium NV (a) | 2,411,100 | 21,242 | |
First Quantum Minerals Ltd. | 779,400 | 8,956 | |
Steel Dynamics, Inc. | 257,665 | 8,111 | |
63,068 | |||
TOTAL MATERIALS | 592,847 | ||
REAL ESTATE - 7.4% | |||
Equity Real Estate Investment Trusts (REITs) - 6.0% | |||
Alexandria Real Estate Equities, Inc. | 217,900 | 33,016 | |
American Tower Corp. | 78,404 | 18,005 | |
CubeSmart | 1,707,537 | 57,937 | |
Douglas Emmett, Inc. | 1,101,700 | 26,000 | |
Equinix, Inc. | 50,800 | 37,147 | |
Equity Lifestyle Properties, Inc. | 389,022 | 23,026 | |
Four Corners Property Trust, Inc. | 841,400 | 21,321 | |
Iron Mountain, Inc. | 687,100 | 17,906 | |
Kilroy Realty Corp. | 199,400 | 9,388 | |
Mid-America Apartment Communities, Inc. | 142,200 | 16,585 | |
RLJ Lodging Trust | 2,565,375 | 20,985 | |
VICI Properties, Inc. | 1,589,000 | 36,468 | |
317,784 | |||
Real Estate Management & Development - 1.4% | |||
CBRE Group, Inc. (a) | 692,992 | 34,927 | |
Cushman & Wakefield PLC (a) | 3,116,658 | 36,527 | |
71,454 | |||
TOTAL REAL ESTATE | 389,238 | ||
UTILITIES - 7.2% | |||
Electric Utilities - 3.4% | |||
Edison International | 1,146,100 | 64,227 | |
Exelon Corp. | 725,908 | 28,956 | |
FirstEnergy Corp. | 1,487,900 | 44,220 | |
PG&E Corp. (a) | 3,977,400 | 38,024 | |
175,427 | |||
Independent Power and Renewable Electricity Producers - 2.7% | |||
The AES Corp. | 3,952,400 | 77,070 | |
Vistra Corp. | 3,721,300 | 64,639 | |
141,709 | |||
Multi-Utilities - 1.1% | |||
CenterPoint Energy, Inc. | 2,780,765 | 58,758 | |
TOTAL UTILITIES | 375,894 | ||
TOTAL COMMON STOCKS | |||
(Cost $4,759,472) | 5,201,028 | ||
Principal Amount (000s) | Value (000s) | ||
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 0.09% to 0.1% 11/19/20 to 12/24/20 (d) | |||
(Cost $3,790) | 3,790 | 3,790 | |
Shares | Value (000s) | ||
Money Market Funds - 1.2% | |||
Fidelity Cash Central Fund 0.10% (e) | 47,651,156 | $47,661 | |
Fidelity Securities Lending Cash Central Fund 0.11% (e)(f) | 14,550,632 | 14,552 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $62,212) | 62,213 | ||
TOTAL INVESTMENT IN SECURITIES - 100.3% | |||
(Cost $4,825,474) | 5,267,031 | ||
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (14,130) | ||
NET ASSETS - 100% | $5,252,901 |
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) | 109 | Dec. 2020 | $20,662 | $(1,167) | $(1,167) |
The notional amount of futures purchased as a percentage of Net Assets is 0.4%
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 $18,618,000 or 0.4% of net assets.
(d) 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 $1,562,000.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) 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 | $458 |
Fidelity Securities Lending Cash Central Fund | 885 |
Total | $1,343 |
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. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, 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: | ||||
Communication Services | $128,035 | $128,035 | $-- | $-- |
Consumer Discretionary | 569,894 | 569,894 | -- | -- |
Consumer Staples | 231,653 | 231,653 | -- | -- |
Energy | 228,853 | 228,853 | -- | -- |
Financials | 726,663 | 713,171 | 13,492 | -- |
Health Care | 463,420 | 445,822 | 17,598 | -- |
Industrials | 1,204,744 | 1,190,179 | 14,565 | -- |
Information Technology | 289,787 | 279,640 | 10,147 | -- |
Materials | 592,847 | 592,847 | -- | -- |
Real Estate | 389,238 | 389,238 | -- | -- |
Utilities | 375,894 | 375,894 | -- | -- |
U.S. Government and Government Agency Obligations | 3,790 | -- | 3,790 | -- |
Money Market Funds | 62,213 | 62,213 | -- | -- |
Total Investments in Securities: | $5,267,031 | $5,207,439 | $59,592 | $-- |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $(1,167) | $(1,167) | $-- | $-- |
Total Liabilities | $(1,167) | $(1,167) | $-- | $-- |
Total Derivative Instruments: | $(1,167) | $(1,167) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2020. 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 | $(1,167) |
Total Equity Risk | 0 | (1,167) |
Total Value of Derivatives | $0 | $(1,167) |
(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 Total accumulated earnings (loss).
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 | 84.6% |
United Kingdom | 4.4% |
Canada | 2.2% |
Netherlands | 1.9% |
Bermuda | 1.7% |
Ireland | 1.2% |
Singapore | 1.0% |
Others (Individually Less Than 1%) | 3.0% |
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) | October 31, 2020 | |
Assets | ||
Investment in securities, at value (including securities loaned of $13,683) — See accompanying schedule: Unaffiliated issuers (cost $4,763,262) | $5,204,818 | |
Fidelity Central Funds (cost $62,212) | 62,213 | |
Total Investment in Securities (cost $4,825,474) | $5,267,031 | |
Receivable for investments sold | 25,667 | |
Receivable for fund shares sold | 1,246 | |
Dividends receivable | 2,504 | |
Distributions receivable from Fidelity Central Funds | 12 | |
Prepaid expenses | 9 | |
Other receivables | 955 | |
Total assets | 5,297,424 | |
Liabilities | ||
Payable to custodian bank | $4,227 | |
Payable for investments purchased | 19,183 | |
Payable for fund shares redeemed | 3,198 | |
Accrued management fee | 1,859 | |
Payable for daily variation margin on futures contracts | 155 | |
Other affiliated payables | 686 | |
Other payables and accrued expenses | 683 | |
Collateral on securities loaned | 14,532 | |
Total liabilities | 44,523 | |
Net Assets | $5,252,901 | |
Net Assets consist of: | ||
Paid in capital | $5,509,285 | |
Total accumulated earnings (loss) | (256,384) | |
Net Assets | $5,252,901 | |
Net Asset Value and Maximum Offering Price | ||
Value: | ||
Net Asset Value, offering price and redemption price per share ($4,760,129 ÷ 497,257 shares) | $9.57 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($492,772 ÷ 51,389 shares) | $9.59 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2020 | |
Investment Income | ||
Dividends | $103,808 | |
Interest | 17 | |
Income from Fidelity Central Funds (including $885 from security lending) | 1,343 | |
Total income | 105,168 | |
Expenses | ||
Management fee | ||
Basic fee | $30,387 | |
Performance adjustment | (7,754) | |
Transfer agent fees | 7,511 | |
Accounting fees | 1,110 | |
Custodian fees and expenses | 41 | |
Independent trustees' fees and expenses | 34 | |
Registration fees | 73 | |
Audit | 79 | |
Legal | 22 | |
Miscellaneous | 94 | |
Total expenses before reductions | 31,597 | |
Expense reductions | (985) | |
Total expenses after reductions | 30,612 | |
Net investment income (loss) | 74,556 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (683,434) | |
Fidelity Central Funds | 19 | |
Foreign currency transactions | 3 | |
Futures contracts | 940 | |
Total net realized gain (loss) | (682,472) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 97,135 | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | 8 | |
Futures contracts | (1,167) | |
Total change in net unrealized appreciation (depreciation) | 95,975 | |
Net gain (loss) | (586,497) | |
Net increase (decrease) in net assets resulting from operations | $(511,941) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2020 | Year ended October 31, 2019 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $74,556 | $94,998 |
Net realized gain (loss) | (682,472) | 135,674 |
Change in net unrealized appreciation (depreciation) | 95,975 | 376,020 |
Net increase (decrease) in net assets resulting from operations | (511,941) | 606,692 |
Distributions to shareholders | (237,887) | (879,656) |
Share transactions - net increase (decrease) | (849,469) | 101,049 |
Total increase (decrease) in net assets | (1,599,297) | (171,915) |
Net Assets | ||
Beginning of period | 6,852,198 | 7,024,113 |
End of period | $5,252,901 | $6,852,198 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Value Fund
Years ended October 31, | 2020 | 2019 | 2018 A | 2017 A | 2016 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $10.59 | $11.15 | $12.19 | $10.30 | $11.07 |
Income from Investment Operations | |||||
Net investment income (loss)B | .12 | .14 | .15 | .18C | .17 |
Net realized and unrealized gain (loss) | (.77) | .71 | (.62) | 1.85 | .11 |
Total from investment operations | (.65) | .85 | (.47) | 2.03 | .28 |
Distributions from net investment income | (.14)D | (.12) | (.17) | (.14) | (.12) |
Distributions from net realized gain | (.23)D | (1.29) | (.41) | –E | (.93) |
Total distributions | (.37) | (1.41) | (.57)F | (.14) | (1.05) |
Net asset value, end of period | $9.57 | $10.59 | $11.15 | $12.19 | $10.30 |
Total ReturnG | (6.52)% | 9.31% | (4.14)% | 19.86% | 2.85% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .57% | .58% | .58% | .58% | .62% |
Expenses net of fee waivers, if any | .57% | .58% | .58% | .58% | .62% |
Expenses net of all reductions | .55% | .58% | .56% | .57% | .61% |
Net investment income (loss) | 1.30% | 1.38% | 1.25% | 1.51%C | 1.71% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $4,760 | $6,112 | $6,181 | $7,344 | $6,741 |
Portfolio turnover rateJ | 90% | 75% | 100% | 73% | 72% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.23%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Amount represents less than $.005 per share.
F Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Value Fund Class K
Years ended October 31, | 2020 | 2019 | 2018 A | 2017 A | 2016 A |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $10.60 | $11.16 | $12.21 | $10.32 | $11.09 |
Income from Investment Operations | |||||
Net investment income (loss)B | .13 | .15 | .16 | .19C | .18 |
Net realized and unrealized gain (loss) | (.76) | .72 | (.62) | 1.85 | .11 |
Total from investment operations | (.63) | .87 | (.46) | 2.04 | .29 |
Distributions from net investment income | (.15)D | (.13) | (.18) | (.15) | (.13) |
Distributions from net realized gain | (.23)D | (1.29) | (.41) | –E | (.93) |
Total distributions | (.38) | (1.43)F | (.59) | (.15) | (1.06) |
Net asset value, end of period | $9.59 | $10.60 | $11.16 | $12.21 | $10.32 |
Total ReturnG | (6.33)% | 9.43% | (4.11)% | 19.98% | 2.96% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .47% | .49% | .48% | .48% | .50% |
Expenses net of fee waivers, if any | .47% | .49% | .48% | .48% | .50% |
Expenses net of all reductions | .45% | .48% | .46% | .48% | .49% |
Net investment income (loss) | 1.40% | 1.48% | 1.34% | 1.61%C | 1.82% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $493 | $740 | $844 | $1,073 | $922 |
Portfolio turnover rateJ | 90% | 75% | 100% | 73% | 72% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been 1.33%.
D The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
E Amount represents less than $.005 per share.
F Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2020
(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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 – Investment 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. 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 October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. 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 and 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) for the Fund, 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 of $621 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
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. As of October 31, 2020, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. These differences resulted in distribution reclassifications. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. 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), deferred trustees compensation, capital loss carryforwards, partnerships 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 | $855,710 |
Gross unrealized depreciation | (482,893) |
Net unrealized appreciation (depreciation) | $372,817 |
Tax Cost | $4,894,214 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $46,714 |
Capital loss carryforward | $(675,315) |
Net unrealized appreciation (depreciation) on securities and other investments | $372,838 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(332,622) |
Long-term | (342,693) |
Total capital loss carryforward | $(675,315) |
The tax character of distributions paid was as follows:
October 31, 2020 | October 31, 2019 | |
Ordinary Income | $87,453 | $ 215,858 |
Long-term Capital Gains | 150,434 | 663,798 |
Total | $237,887 | $ 879,656 |
Restricted Securities (including Private Placements). 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 and U.S. government securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Value Fund | 5,079,358 | 6,088,081 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annual management fee rate, including the performance adjustment, was .40% 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 LLC (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. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Value | $7,249 | .14 |
Class K | 262 | .04 |
$7,511 |
Accounting 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. For the period, the fees were equivalent to the following annual rates:
% of Average Net Assets | |
Fidelity Value Fund | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Value Fund | $239 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Value Fund | Borrower | $7,972 | .93% | $-* |
* In the amount of less than five hundred dollars.
Interfund Trades. 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.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $6.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Value Fund | $14 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Value Fund | $82 | $56 | $– |
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 $956 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $29.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2020 | Year ended October 31, 2019 | |
Distributions to shareholders | ||
Value | $211,624 | $774,997 |
Class K | 26,263 | 104,659 |
Total | $237,887 | $879,656 |
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 | |
Year ended October 31, 2020 | Year ended October 31, 2019 | Year ended October 31, 2020 | Year ended October 31, 2019 | |
Value | ||||
Shares sold | 27,325 | 35,232 | $254,518 | $343,088 |
Reinvestment of distributions | 17,903 | 77,071 | 192,457 | 722,157 |
Shares redeemed | (125,326) | (89,380) | (1,125,956) | (898,938) |
Net increase (decrease) | (80,098) | 22,923 | $(678,981) | $166,307 |
Class K | ||||
Shares sold | 11,831 | 8,047 | $110,938 | $81,588 |
Reinvestment of distributions | 2,443 | 11,170 | 26,263 | 104,659 |
Shares redeemed | (32,695) | (24,966) | (307,689) | (251,505) |
Net increase (decrease) | (18,421) | (5,749) | $(170,488) | $(65,258) |
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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Capital Trust and Shareholders of Fidelity Value Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Value Fund (one of the funds constituting Fidelity Capital Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statement of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2020
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Bettina Doulton, each of the Trustees oversees 305 funds. Ms. Doulton oversees 204 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Acting Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach and David M. Thomas serve as Co-Lead Independent Trustees and as such each (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2013-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Acting Chairman of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York, a member of the Board of NYC Leadership Academy (2012-present) and a member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present), as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present) and as a member of the Board of Treliant, LLC (consulting, 2019-present).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Compensation Committee and Executive Committee and as Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Previously, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity), Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail), Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005), Chairman (2014-2017) and a member of the Board (2010-2017) of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes) and a member of the Board of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-2020). Mr. Lacy currently serves as a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a member of the Board of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Co-Lead Independent Trustee
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has in the past served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010); as well as Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach had a 30-year career with IBM (technology company), during which time he served as Senior Vice President and as a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Previously, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments and a member of Scudder, Stevens & Clark and Scudder Kemper Investments. Ms. Small previously served as a member of the Board (2009-2019) and Chair of the Investment Committee (2010-2019) of the Teagle Foundation and a member of the Investment Committee of the Berkshire Taconic Community Foundation (2008-2019).
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain Fidelity® funds (2012-2013).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Co-Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as Non-Executive Chairman of the Board of Fortune Brands Home and Security (home and security products, 2011-present), and a member of the Board (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present). In addition, Ms. Tomasky currently serves as a member of the Board of the Columbus Regional Airport Authority (2007-present), as a member of the Board of the Royal Shakespeare Company – America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board (2011-2019) and as Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Lloyd James Austin, III (1953)
Year of Election or Appointment: 2020
Member of the Advisory Board
General Austin also serves as a Member of the Advisory Board of other Fidelity® funds. Prior to his retirement, General Austin (United States Army, Retired) held a variety of positions within the U.S. Government, including Commander, U.S. Central Command (2013-2016), Vice Chief of Staff, U.S. Army (2012-2013) and Commanding General, U.S. Forces – Iraq, Operation New Dawn (2010-2012). General Austin currently serves as a Partner of Pine Island Capital Partners (private equity, 2020-present) and as President of the Austin Strategy Group LLC (consulting, 2016-present). General Austin serves as a member of the Board of Directors of Nucor Corporation (steel products, 2017-present), as a member of the Board of Directors of Tenet Healthcare Corporation (2018-present) and as a member of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). In addition, General Austin currently serves as a member of the Board of Trustees of the Carnegie Corporation of New York (2017-present) and as a member of the Board of Trustees of Auburn University (2017-present). Previously, General Austin served as a member of the Board of Directors of United Technologies Corporation (aerospace, defense and building, 2016-2020).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2020
Member of the Advisory Board
Mr. Kennedy also serves as a Member of the Advisory Board of other Fidelity® funds. Previously, Mr. Kennedy held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-present).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of certain funds (2017-2019), as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity funds (2015-2020).
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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 (May 1, 2020 to October 31, 2020).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Value Fund | ||||
Value | .52% | |||
Actual | $1,000.00 | $1,184.40 | $2.86 | |
Hypothetical-C | $1,000.00 | $1,022.52 | $2.64 | |
Class K | .41% | |||
Actual | $1,000.00 | $1,185.40 | $2.25 | |
Hypothetical-C | $1,000.00 | $1,023.08 | $2.08 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Distributions (Unaudited)
The fund designates 95% and Class K designates 88% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 99% and Class K designates 92% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund designates 2% and Class K designates 9% of the dividends distributed during the fiscal year as a section 199A dividend.
The fund will notify shareholders in January 2021 of amounts for use in preparing 2020 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 13,998,165,554.985 | 93.989 |
Withheld | 895,202,206.725 | 6.011 |
TOTAL | 14,893,367,761.710 | 100.000 |
Donald F. Donahue | ||
Affirmative | 14,015,243,588.617 | 94.104 |
Withheld | 878,124,173.093 | 5.896 |
TOTAL | 14,893,367,761.710 | 100.000 |
Bettina Doulton | ||
Affirmative | 14,083,289,004.163 | 94.561 |
Withheld | 810,078,757.547 | 5.439 |
TOTAL | 14,893,367,761.710 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 14,092,110,769.395 | 94.620 |
Withheld | 801,256,992.315 | 5.380 |
TOTAL | 14,893,367,761.710 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 14,032,515,480.494 | 94.220 |
Withheld | 860,852,281.216 | 5.780 |
TOTAL | 14,893,367,761.710 | 100.000 |
Alan J. Lacy | ||
Affirmative | 13,919,375,167.396 | 93.460 |
Withheld | 973,992,594.314 | 6.540 |
TOTAL | 14,893,367,761.710 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 13,903,078,582.514 | 93.351 |
Withheld | 990,289,179.196 | 6.649 |
TOTAL | 14,893,367,761.710 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 13,962,199,383.768 | 93.748 |
Withheld | 931,168,377.942 | 6.252 |
TOTAL | 14,893,367,761.710 | 100.000 |
Joseph Mauriello | ||
Affirmative | 13,903,314,736.437 | 93.352 |
Withheld | 990,053,025.273 | 6.648 |
TOTAL | 14,893,367,761.710 | 100.000 |
Cornelia M. Small | ||
Affirmative | 13,968,239,698.757 | 93.788 |
Withheld | 925,128,062.953 | 6.212 |
TOTAL | 14,893,367,761.710 | 100.000 |
Garnett A. Smith | ||
Affirmative | 13,937,942,839.146 | 93.585 |
Withheld | 955,424,922.564 | 6.415 |
TOTAL | 14,893,367,761.710 | 100.000 |
David M. Thomas | ||
Affirmative | 13,935,918,537.829 | 93.571 |
Withheld | 957,449,223.881 | 6.429 |
TOTAL | 14,893,367,761.710 | 100.000 |
Susan Tomasky | ||
Affirmative | 14,049,765,171.783 | 94.336 |
Withheld | 843,602,589.927 | 5.664 |
TOTAL | 14,893,367,761.710 | 100.000 |
Michael E. Wiley | ||
Affirmative | 13,934,625,414.679 | 93.563 |
Withheld | 958,742,347.031 | 6.437 |
TOTAL | 14,893,367,761.710 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 1,695,076,308.457 | 68.859 |
Against | 379,865,790.035 | 15.431 |
Abstain | 298,816,413.062 | 12.139 |
Broker Non-Vote | 87,892,288.820 | 3.570 |
TOTAL | 2,461,650,800.374 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
VAL-ANN-1220
1.538531.123
Item 2.
Code of Ethics
As of the end of the period, October 31, 2020, Fidelity Capital Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Flex Small Cap Fund and Fidelity Stock Selector Small Cap Fund (the “Fund(s)”):
Services Billed by Deloitte Entities
October 31, 2020 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Flex Small Cap Fund | $36,000 | $- | $7,000 | $900 |
Fidelity Stock Selector Small Cap Fund | $46,700 | $- | $6,900 | $1,000 |
October 31, 2019 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Flex Small Cap Fund | $38,000 | $100 | $5,300 | $1,000 |
Fidelity Stock Selector Small Cap Fund | $45,000 | $100 | $5,000 | $1,200 |
A Amounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Capital Appreciation Fund, Fidelity Disciplined Equity Fund, Fidelity Focused Stock Fund and Fidelity Value Fund (the “Fund(s)”):
Services Billed by PwC
October 31, 2020 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Capital Appreciation Fund | $44,500 | $4,100 | $8,600 | $1,600 |
Fidelity Disciplined Equity Fund | $42,200 | $3,900 | $7,600 | $1,600 |
Fidelity Focused Stock Fund | $27,800 | $2,800 | $7,600 | $1,100 |
Fidelity Value Fund | $49,200 | $4,900 | $14,200 | $2,000 |
October 31, 2019 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Capital Appreciation Fund | $51,000 | $4,100 | $4,200 | $1,900 |
Fidelity Disciplined Equity Fund | $48,000 | $4,000 | $4,200 | $1,800 |
Fidelity Focused Stock Fund | $34,000 | $2,800 | $3,300 | $1,300 |
Fidelity Value Fund | $59,000 | $4,900 | $7,000 | $2,200 |
A Amounts may reflect rounding.
The following table(s) present(s) fees billed by Deloitte Entities and PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
October 31, 2020A | October 31, 2019A | |
Audit-Related Fees | $- | $290,000 |
Tax Fees | $- | $5,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
October 31, 2020A | October 31, 2019A | |
Audit-Related Fees | $9,030,200 | $7,890,000 |
Tax Fees | $30,000 | $10,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities and PwC for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
Billed By | October 31, 2020A | October 31, 2019A |
Deloitte Entities | $517,400 | $590,000 |
PwC | $14,161,500 | $12,580,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | |
(a) | (3) | Not applicable. |
(b) |
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: | December 18, 2020 |
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: | December 18, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | December 18, 2020 |