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 811-3010
Fidelity Advisor Series VII
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | July 31 |
| |
Date of reporting period: | January 31, 2009 |
Item 1. Reports to Stockholders
Fidelity Advisor
Focus Funds®
Class A, Class T, Class B and Class C
Biotechnology
Communications Equipment
Consumer Discretionary
Electronics
Energy
Financial Services
Health Care
Industrials
Technology
Utilities
Semiannual Report
January 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Semiannual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Advisor Biotechnology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 791.30 | $ 6.32 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 790.80 | $ 7.45 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 788.80 | $ 9.69 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 788.80 | $ 9.69 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 792.50 | $ 5.20 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Amgen, Inc. | 18.3 | 19.6 |
Genentech, Inc. | 14.5 | 10.3 |
Gilead Sciences, Inc. | 9.3 | 8.4 |
Biogen Idec, Inc. | 5.3 | 4.4 |
Celgene Corp. | 5.0 | 2.7 |
Genzyme Corp. | 4.9 | 1.2 |
Alexion Pharmaceuticals, Inc. | 4.6 | 5.1 |
Cephalon, Inc. | 4.5 | 3.8 |
Vertex Pharmaceuticals, Inc. | 3.6 | 2.7 |
Acorda Therapeutics, Inc. | 3.4 | 3.3 |
| 73.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
 | Biotechnology | 88.6% | |
 | Pharmaceuticals | 7.4% | |
 | Health Care
Equipment & Supplies | 0.8% | |
 | Life Sciences
Tools & Services | 0.6% | |
 | All Others* | 2.6% | |
As of July 31, 2008 |
| Biotechnology | 81.7% | |
| Pharmaceuticals | 13.7% | |
| Health Care
Equipment & Supplies | 1.4% | |
| Life Sciences
Tools & Services | 0.7% | |
| All Others* | 2.5% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Biotechnology
Advisor Biotechnology Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% |
| Shares | | Value |
BIOTECHNOLOGY - 88.6% |
Biotechnology - 88.6% |
Acadia Pharmaceuticals, Inc. (a) | 28,874 | | $ 29,163 |
Acorda Therapeutics, Inc. (a) | 71,716 | | 1,759,193 |
Affymax, Inc. (a) | 7,300 | | 94,900 |
Alexion Pharmaceuticals, Inc. (a) | 64,738 | | 2,386,890 |
Alkermes, Inc. (a) | 22,800 | | 261,516 |
Allos Therapeutics, Inc. (a) | 5,530 | | 43,300 |
Alnylam Pharmaceuticals, Inc. (a) | 7,000 | | 147,630 |
Amgen, Inc. (a) | 172,373 | | 9,454,656 |
Amylin Pharmaceuticals, Inc. (a) | 3,684 | | 42,587 |
Anadys Pharmaceuticals, Inc. (a) | 62,397 | | 325,088 |
Antigenics, Inc. (a) | 452,000 | | 171,760 |
Antigenics, Inc.: | | | |
warrants 1/9/10 (a)(e) | 452,000 | | 5 |
warrants 1/9/18 (a)(e) | 452,000 | | 161,349 |
Arena Pharmaceuticals, Inc. (a) | 7,600 | | 31,464 |
Biogen Idec, Inc. (a) | 56,444 | | 2,746,001 |
BioMarin Pharmaceutical, Inc. (a) | 43,489 | | 837,598 |
Celera Corp. (a) | 9,800 | | 82,712 |
Celgene Corp. (a) | 49,015 | | 2,595,344 |
Cephalon, Inc. (a)(d) | 30,194 | | 2,330,373 |
Cepheid, Inc. (a) | 6,800 | | 50,592 |
Cougar Biotechnology, Inc. (a) | 12,700 | | 370,586 |
Cubist Pharmaceuticals, Inc. (a) | 4,892 | | 104,738 |
CV Therapeutics, Inc. (a) | 11,749 | | 183,872 |
Dendreon Corp. (a) | 9,700 | | 32,689 |
Enzon Pharmaceuticals, Inc. (a) | 5,400 | | 35,154 |
Facet Biotech Corp. (a) | 4,500 | | 27,360 |
Genentech, Inc. (a) | 92,111 | | 7,483,098 |
Genzyme Corp. (a) | 36,938 | | 2,545,767 |
Gilead Sciences, Inc. (a) | 95,048 | | 4,825,587 |
GTx, Inc. (a) | 2,670 | | 29,477 |
Halozyme Therapeutics, Inc. (a) | 4,410 | | 25,446 |
Human Genome Sciences, Inc. (a) | 42,777 | | 77,426 |
Incyte Corp. (a) | 13,195 | | 38,661 |
InterMune, Inc. (a) | 13,016 | | 148,903 |
Isis Pharmaceuticals, Inc. (a) | 17,700 | | 250,101 |
Ligand Pharmaceuticals, Inc. Class B (a) | 26,500 | | 56,180 |
Martek Biosciences | 2,900 | | 76,705 |
Momenta Pharmaceuticals, Inc. (a) | 4,000 | | 43,320 |
Myriad Genetics, Inc. (a) | 7,805 | | 582,019 |
ONYX Pharmaceuticals, Inc. (a) | 32,560 | | 990,801 |
OREXIGEN Therapeutics, Inc. (a) | 13,588 | | 54,488 |
OSI Pharmaceuticals, Inc. (a) | 17,800 | | 633,680 |
PDL BioPharma, Inc. | 22,500 | | 144,450 |
Poniard Pharmaceuticals, Inc. (a) | 7,700 | | 18,480 |
|
| Shares | | Value |
Progenics Pharmaceuticals, Inc. (a) | 4,500 | | $ 32,805 |
Regeneron Pharmaceuticals, Inc. (a) | 7,191 | | 125,699 |
Rigel Pharmaceuticals, Inc. (a) | 7,635 | | 53,369 |
Sangamo Biosciences, Inc. (a) | 7,098 | | 29,457 |
Savient Pharmaceuticals, Inc. (a) | 9,205 | | 50,996 |
Theratechnologies, Inc. (a) | 1,900 | | 2,154 |
Theravance, Inc. (a) | 13,965 | | 184,059 |
United Therapeutics Corp. (a) | 16,290 | | 1,106,906 |
Vertex Pharmaceuticals, Inc. (a) | 56,504 | | 1,867,457 |
Zymogenetics, Inc. (a) | 10,295 | | 43,754 |
| | 45,827,765 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.8% |
Health Care Equipment - 0.8% |
Alsius Corp. (a) | 14,200 | | 4,118 |
Aradigm Corp. (a) | 21,800 | | 4,360 |
Quidel Corp. (a) | 34,400 | | 423,120 |
| | 431,598 |
LIFE SCIENCES TOOLS & SERVICES - 0.6% |
Life Sciences Tools & Services - 0.6% |
AMAG Pharmaceuticals, Inc. (a) | 2,900 | | 102,225 |
Clinical Data, Inc. (a) | 4,547 | | 35,376 |
Exelixis, Inc. (a) | 30,600 | | 150,858 |
Medivation, Inc. (a) | 1,359 | | 25,481 |
| | 313,940 |
PHARMACEUTICALS - 7.4% |
Pharmaceuticals - 7.4% |
Adolor Corp. (a) | 22,768 | | 45,536 |
Akorn, Inc. (a) | 103,079 | | 229,866 |
Alexza Pharmaceuticals, Inc. (a) | 6,581 | | 19,019 |
Auxilium Pharmaceuticals, Inc. (a) | 47,658 | | 1,456,428 |
Biodel, Inc. (a) | 100,769 | | 445,399 |
Catalyst Pharmaceutical Partners, Inc. (a) | 21,241 | | 57,351 |
Elan Corp. PLC sponsored ADR (a) | 72,250 | | 522,368 |
Inspire Pharmaceuticals, Inc. (a) | 1,370 | | 5,206 |
Jazz Pharmaceuticals, Inc. (a) | 335 | | 322 |
Sepracor, Inc. (a) | 12,110 | | 184,072 |
Wyeth | 8,800 | | 378,136 |
XenoPort, Inc. (a) | 17,778 | | 464,361 |
| | 3,808,064 |
TOTAL COMMON STOCKS (Cost $51,244,755) | 50,381,367 |
Money Market Funds - 8.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,641,280 | | 1,641,280 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 2,775,300 | | 2,775,300 |
TOTAL MONEY MARKET FUNDS (Cost $4,416,580) | 4,416,580 |
Cash Equivalents - 0.1% |
| Maturity Amount | | Value |
Investments in repurchase agreements in a joint trading account at 0.24%, dated 1/30/09 due 2/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $30,000) | $ 30,001 | | $ 30,000 |
TOTAL INVESTMENT PORTFOLIO - 106.0% (Cost $55,691,335) | | 54,827,947 |
NET OTHER ASSETS - (6.0)% | | (3,120,133) |
NET ASSETS - 100% | $ 51,707,814 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $161,354 or 0.3% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Antigenics, Inc. warrants 1/9/10 | 1/9/08 | $ 3 |
Antigenics, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$30,000 due 2/02/09 at 0.24% |
J.P. Morgan Securities, Inc. | $ 22,214 |
UBS Securities LLC | 7,786 |
| $ 30,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 20,855 |
Fidelity Securities Lending Cash Central Fund | 7,926 |
Total | $ 28,781 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 54,827,947 | $ 54,636,593 | $ 191,354 | $ - |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,310,179 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Advisor Biotechnology Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $2,685,864 and repurchase agreements of $30,000) - See accompanying schedule: Unaffiliated issuers (cost $51,274,755) | $ 50,411,367 | |
Fidelity Central Funds (cost $4,416,580) | 4,416,580 | |
Total Investments (cost $55,691,335) | | $ 54,827,947 |
Cash | | 976 |
Receivable for investments sold | | 368,668 |
Receivable for fund shares sold | | 160,337 |
Distributions receivable from Fidelity Central Funds | | 2,946 |
Prepaid expenses | | 560 |
Total assets | | 55,361,434 |
| | |
Liabilities | | |
Payable for investments purchased | $ 726,604 | |
Payable for fund shares redeemed | 59,071 | |
Accrued management fee | 30,591 | |
Distribution fees payable | 25,286 | |
Other affiliated payables | 13,673 | |
Other payables and accrued expenses | 23,095 | |
Collateral on securities loaned, at value | 2,775,300 | |
Total liabilities | | 3,653,620 |
| | |
Net Assets | | $ 51,707,814 |
Net Assets consist of: | | |
Paid in capital | | $ 59,817,116 |
Accumulated net investment loss | | (432,813) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,813,101) |
Net unrealized appreciation (depreciation) on investments | | (863,388) |
Net Assets | | $ 51,707,814 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($17,500,550 ÷ 2,831,103 shares) | | $ 6.18 |
| | |
Maximum offering price per share (100/94.25 of $6.18) | | $ 6.56 |
Class T:
Net Asset Value and redemption price per share ($12,905,209 ÷ 2,134,660 shares) | | $ 6.05 |
| | |
Maximum offering price per share (100/96.50 of $6.05) | | $ 6.27 |
Class B:
Net Asset Value and offering price per share ($7,693,389 ÷ 1,329,242 shares)A | | $ 5.79 |
| | |
Class C:
Net Asset Value and offering price per share ($11,823,077 ÷ 2,042,226 shares)A | | $ 5.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,785,589 ÷ 281,835 shares) | | $ 6.34 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Biotechnology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 9,902 |
Interest | | 5 |
Income from Fidelity Central Funds (including $7,926 from security lending) | | 28,781 |
Total income | | 38,688 |
| | |
Expenses | | |
Management fee | $ 152,258 | |
Transfer agent fees | 84,962 | |
Distribution fees | 161,270 | |
Accounting and security lending fees | 11,819 | |
Custodian fees and expenses | 5,078 | |
Independent trustees' compensation | 153 | |
Registration fees | 43,401 | |
Audit | 22,421 | |
Legal | 195 | |
Miscellaneous | 3,963 | |
Total expenses before reductions | 485,520 | |
Expense reductions | (14,019) | 471,501 |
Net investment income (loss) | | (432,813) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,779,884) | |
Foreign currency transactions | (38) | |
Total net realized gain (loss) | | (1,779,922) |
Change in net unrealized appreciation (depreciation) on investment securities | | (12,017,620) |
Net gain (loss) | | (13,797,542) |
Net increase (decrease) in net assets resulting from operations | | $ (14,230,355) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (432,813) | $ (852,978) |
Net realized gain (loss) | (1,779,922) | (1,921,856) |
Change in net unrealized appreciation (depreciation) | (12,017,620) | 10,243,107 |
Net increase (decrease) in net assets resulting from operations | (14,230,355) | 7,468,273 |
Distributions to shareholders from net realized gain | - | (3,898,928) |
Share transactions - net increase (decrease) | 7,053,317 | 3,736,181 |
Redemption fees | 28,181 | 1,940 |
Total increase (decrease) in net assets | (7,148,857) | 7,307,466 |
| | |
Net Assets | | |
Beginning of period | 58,856,671 | 51,549,205 |
End of period (including accumulated net investment loss of $432,813 and $0, respectively) | $ 51,707,814 | $ 58,856,671 |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 | $ 5.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.09) I | (.09) | (.09) | (.08) H | (.09) |
Net realized and unrealized gain (loss) | (1.59) | 1.20 | .51 | .10 | .88 | .15 |
Total from investment operations | (1.63) | 1.11 | .42 | .01 | .80 | .06 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 6.18 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 |
Total Return B, C, D | (20.87)% | 15.95% | 6.17% | .15% | 13.33% | 1.01% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.45% A | 1.37% | 1.42% | 1.48% | 1.56% | 1.68% |
Expenses net of fee waivers, if any | 1.40% A | 1.37% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.37% | 1.40% | 1.37% | 1.43% | 1.48% |
Net investment income (loss) | (1.26)% A | (1.24)% I | (1.25)% | (1.29)% | (1.36)% H | (1.38)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,501 | $ 18,249 | $ 13,081 | $ 12,539 | $ 11,022 | $ 10,197 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.37)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 | $ 5.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.11) I | (.11) | (.11) | (.10) H | (.10) |
Net realized and unrealized gain (loss) | (1.55) | 1.18 | .51 | .10 | .87 | .15 |
Total from investment operations | (1.60) | 1.07 | .40 | (.01) | .77 | .05 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 6.05 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 |
Total Return B, C, D | (20.92)% | 15.64% | 5.96% | (.15)% | 12.94% | .85% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.74% A | 1.69% | 1.75% | 1.79% | 1.93% | 2.10% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.70% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.62% | 1.68% | 1.73% |
Net investment income (loss) | (1.51)% A | (1.53)% I | (1.49)% | (1.54)% | (1.61)% H | (1.63)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,905 | $ 15,123 | $ 13,008 | $ 13,808 | $ 14,177 | $ 13,367 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 | $ 5.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.14) I | (.14) | (.14) | (.13) H | (.13) |
Net realized and unrealized gain (loss) | (1.49) | 1.13 | .50 | .10 | .85 | .15 |
Total from investment operations | (1.55) | .99 | .36 | (.04) | .72 | .02 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 5.79 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 |
Total Return B, C, D | (21.12)% | 14.96% | 5.52% | (.61)% | 12.33% | .34% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 2.19% A | 2.12% | 2.17% | 2.23% | 2.33% | 2.46% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.12% | 2.15% | 2.12% | 2.18% | 2.22% |
Net investment income (loss) | (2.01)% A | (2.00)% I | (1.99)% | (2.04)% | (2.11)% H | (2.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,693 | $ 11,044 | $ 12,656 | $ 14,938 | $ 16,921 | $ 16,819 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.11)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 | $ 5.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.13) I | (.14) | (.14) | (.13) H | (.13) |
Net realized and unrealized gain (loss) | (1.49) | 1.12 | .50 | .09 | .86 | .15 |
Total from investment operations | (1.55) | .99 | .36 | (.05) | .73 | .02 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 5.79 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 |
Total Return B, C, D | (21.12)% | 14.96% | 5.52% | (.76)% | 12.50% | .34% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 2.19% A | 2.12% | 2.16% | 2.17% | 2.24% | 2.31% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.12% | 2.15% | 2.12% | 2.18% | 2.23% |
Net investment income (loss) | (2.01)% A | (2.00)% I | (1.99)% | (2.04)% | (2.11)% H | (2.13)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,823 | $ 13,323 | $ 11,813 | $ 13,787 | $ 12,538 | $ 13,215 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.11)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 | $ 5.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | (.07) H | (.07) | (.07) | (.06) G | (.06) |
Net realized and unrealized gain (loss) | (1.63) | 1.23 | .53 | .09 | .89 | .15 |
Total from investment operations | (1.66) | 1.16 | .46 | .02 | .83 | .09 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 6.34 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 |
Total Return B, C | (20.75)% | 16.35% | 6.66% | .29% | 13.70% | 1.51% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | 1.15% A | 1.06% | 1.06% | 1.05% | 1.10% | 1.16% |
Expenses net of fee waivers, if any | 1.15% A | 1.06% | 1.06% | 1.05% | 1.10% | 1.16% |
Expenses net of all reductions | 1.15% A | 1.06% | 1.06% | 1.03% | 1.09% | 1.14% |
Net investment income (loss) | (1.00)% A | (.94)% H | (.91)% | (.94)% | (1.02)% G | (1.04)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,786 | $ 1,117 | $ 991 | $ 1,268 | $ 1,243 | $ 1,146 |
Portfolio turnover rate F | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Biotechnology Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
Biotechnology
3. Significant Accounting Policies - continued
Security Valuation - continued
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended July 31, 2008, dividend income has been reduced $20,082 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total return of the Fund. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 6,103,696 |
Unrealized depreciation | (7,657,860) |
Net unrealized appreciation (depreciation) | $ (1,554,164) |
Cost for federal income tax purposes | $ 56,382,111 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $19,056,888 and $12,170,952, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 22,405 | $ 172 |
Class T | .25% | .25% | 33,052 | - |
Class B | .75% | .25% | 44,551 | 33,591 |
Class C | .75% | .25% | 61,262 | 12,599 |
| | | $ 161,270 | $ 46,362 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,287 |
Class T | 3,978 |
Class B* | 11,870 |
Class C* | 2,043 |
| $ 29,178 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Biotechnology
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 27,311 | .31 |
Class T | 23,059 | .35 |
Class B | 13,633 | .31 |
Class C | 18,621 | .30 |
Institutional Class | 2,338 | .28 |
| $ 84,962 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $406 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $65 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 4,058 |
Class T | 1.65% | 5,673 |
Class B | 2.15% | 1,747 |
Class C | 2.15% | 2,541 |
| | $ 14,019 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 958,767 |
Class T | - | 975,566 |
Class B | - | 968,071 |
Class C | - | 911,566 |
Institutional Class | - | 84,958 |
Total | $ - | $ 3,898,928 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,653,511 | 968,364 | $ 11,241,667 | $ 6,960,029 |
Reinvestment of distributions | - | 116,475 | - | 854,207 |
Shares redeemed | (1,158,774) | (556,578) | (7,223,513) | (3,954,261) |
Net increase (decrease) | 494,737 | 528,261 | $ 4,018,154 | $ 3,859,975 |
Class T | | | | |
Shares sold | 536,239 | 558,497 | $ 3,546,760 | $ 3,914,836 |
Reinvestment of distributions | - | 133,154 | - | 959,165 |
Shares redeemed | (378,746) | (543,030) | (2,403,827) | (3,782,531) |
Net increase (decrease) | 157,493 | 148,621 | $ 1,142,933 | $ 1,091,470 |
Class B | | | | |
Shares sold | 243,395 | 270,835 | $ 1,616,496 | $ 1,836,564 |
Reinvestment of distributions | - | 123,818 | - | 860,151 |
Shares redeemed | (418,581) | (730,418) | (2,515,309) | (4,825,895) |
Net increase (decrease) | (175,186) | (335,765) | $ (898,813) | $ (2,129,180) |
Class C | | | | |
Shares sold | 554,889 | 452,084 | $ 3,656,689 | $ 3,145,989 |
Reinvestment of distributions | - | 110,151 | - | 765,068 |
Shares redeemed | (327,059) | (465,047) | (1,975,711) | (3,112,018) |
Net increase (decrease) | 227,830 | 97,188 | $ 1,680,978 | $ 799,039 |
Institutional Class | | | | |
Shares sold | 281,122 | 190,433 | $ 2,017,749 | $ 1,427,209 |
Reinvestment of distributions | - | 6,538 | - | 48,898 |
Shares redeemed | (138,981) | (191,649) | (907,684) | (1,361,230) |
Net increase (decrease) | 142,141 | 5,322 | $ 1,110,065 | $ 114,877 |
Biotechnology
Advisor Communications Equipment Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 578.00 | $ 5.57 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 576.80 | $ 6.56 |
Hypothetical A | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 575.10 | $ 8.54 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 575.90 | $ 8.54 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 578.90 | $ 4.58 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
QUALCOMM, Inc. | 19.0 | 16.4 |
Cisco Systems, Inc. | 16.7 | 10.1 |
Starent Networks Corp. | 10.7 | 5.2 |
Comverse Technology, Inc. | 4.8 | 6.7 |
ADC Telecommunications, Inc. | 3.7 | 3.0 |
Ulticom, Inc. | 3.0 | 1.7 |
Adtran, Inc. | 2.2 | 0.5 |
SBA Communications Corp.
Class A | 2.1 | 0.3 |
Research In Motion Ltd. | 2.1 | 8.6 |
Tellabs, Inc. | 2.0 | 0.0 |
| 66.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Communications Equipment | 76.1% | |
 | Semiconductors & Semiconductor Equipment | 8.6% | |
 | Software | 5.4% | |
 | Wireless Telecommunication Services | 4.7% | |
| Media | 2.0% | |
| All Others* | 3.2% | |
|
As of July 31, 2008 |
| Communications Equipment | 71.6% | |
| Computers & Peripherals | 7.7% | |
| Semiconductors & Semiconductor Equipment | 4.0% | |
 | Software | 3.6% | |
| Commercial Services & Supplies | 2.2% | |
| All Others* | 10.9% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Communications Equipment Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 75.8% |
Communications Equipment - 75.8% |
Acme Packet, Inc. (a) | 100 | | $ 440 |
ADC Telecommunications, Inc. (a) | 27,000 | | 136,890 |
Adtran, Inc. | 5,283 | | 80,037 |
ADVA AG Optical Networking (a) | 7,013 | | 8,979 |
Alcatel-Lucent SA sponsored ADR (a) | 4,000 | | 7,880 |
Arris Group, Inc. (a) | 2,644 | | 18,825 |
Aruba Networks, Inc. (a) | 100 | | 267 |
AudioCodes Ltd. (a) | 20,500 | | 35,055 |
Avanex Corp. (a) | 773 | | 1,453 |
Ceragon Networks Ltd. (a) | 100 | | 564 |
China GrenTech Corp. Ltd. ADR (a) | 9,494 | | 9,494 |
Ciena Corp. (a) | 10,959 | | 68,384 |
Cisco Systems, Inc. (a) | 41,369 | | 619,294 |
Cogo Group, Inc. (a) | 10,801 | | 72,151 |
CommScope, Inc. (a) | 4,300 | | 62,006 |
Comverse Technology, Inc. (a) | 28,106 | | 177,630 |
F5 Networks, Inc. (a) | 2,200 | | 48,774 |
Finisar Corp. (a) | 2,800 | | 1,428 |
Foxconn International Holdings Ltd. (a) | 2,000 | | 732 |
Harris Stratex Networks, Inc. Class A (a) | 3,867 | | 26,682 |
Infinera Corp. (a) | 1,300 | | 8,918 |
Motorola, Inc. | 12,200 | | 54,046 |
Opnext, Inc. (a) | 5,900 | | 14,042 |
Powerwave Technologies, Inc. (a) | 32,500 | | 14,625 |
QUALCOMM, Inc. | 20,370 | | 703,784 |
Research In Motion Ltd. (a) | 1,400 | | 77,560 |
Sandvine Corp. (a) | 18,400 | | 10,207 |
Sandvine Corp. (U.K.) (a) | 56,400 | | 34,748 |
Sonus Networks, Inc. (a) | 15,167 | | 20,020 |
Starent Networks Corp. (a) | 26,976 | | 396,547 |
Tekelec (a) | 700 | | 8,694 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 1,200 | | 9,588 |
Tellabs, Inc. (a) | 18,200 | | 75,166 |
| | 2,804,910 |
COMPUTERS & PERIPHERALS - 0.7% |
Computer Hardware - 0.5% |
Compal Electronics, Inc. | 28 | | 14 |
HTC Corp. | 2,100 | | 19,831 |
| | 19,845 |
Computer Storage & Peripherals - 0.2% |
SanDisk Corp. (a) | 610 | | 6,972 |
TOTAL COMPUTERS & PERIPHERALS | | 26,817 |
ELECTRICAL EQUIPMENT - 0.2% |
Electrical Components & Equipment - 0.2% |
General Cable Corp. (a) | 400 | | 6,584 |
|
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - 1.6% |
Electronic Components - 0.1% |
Amphenol Corp. Class A | 200 | | $ 5,230 |
Electronic Equipment & Instruments - 0.7% |
China Security & Surveillance Technology, Inc. (a) | 4,430 | | 24,365 |
Electronic Manufacturing Services - 0.8% |
Flextronics International Ltd. (a) | 6,200 | | 16,182 |
SMART Modular Technologies (WWH), Inc. (a) | 4,100 | | 4,715 |
Trimble Navigation Ltd. (a) | 600 | | 8,892 |
| | 29,789 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 59,384 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Switch & Data Facilities Co., Inc. (a) | 900 | | 6,192 |
Tencent Holdings Ltd. | 3,200 | | 19,553 |
| | 25,745 |
MEDIA - 2.0% |
Advertising - 1.5% |
VisionChina Media, Inc. ADR (a) | 8,800 | | 54,384 |
Cable & Satellite - 0.5% |
Virgin Media, Inc. | 4,600 | | 20,884 |
TOTAL MEDIA | | 75,268 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 8.6% |
Semiconductor Equipment - 0.2% |
EMCORE Corp. (a) | 4,600 | | 6,072 |
Semiconductors - 8.4% |
Actel Corp. (a) | 451 | | 4,068 |
ANADIGICS, Inc. (a) | 3,500 | | 7,105 |
Applied Micro Circuits Corp. (a) | 2,758 | | 11,032 |
ARM Holdings PLC sponsored ADR | 2,100 | | 8,421 |
Cavium Networks, Inc. (a) | 5,900 | | 53,690 |
Ceva, Inc. (a) | 1,400 | | 9,562 |
Conexant Systems, Inc. (a) | 1,280 | | 845 |
Cree, Inc. (a) | 1,100 | | 21,923 |
Exar Corp. (a) | 143 | | 968 |
Hittite Microwave Corp. (a) | 300 | | 7,686 |
Infineon Technologies AG sponsored ADR (a) | 4,300 | | 3,698 |
International Rectifier Corp. (a) | 1,400 | | 19,068 |
Marvell Technology Group Ltd. (a) | 1,400 | | 10,206 |
Microsemi Corp. (a) | 449 | | 3,772 |
Mindspeed Technologies, Inc. (a) | 2,501 | | 2,238 |
MIPS Technologies, Inc. (a) | 1,398 | | 2,349 |
Netlogic Microsystems, Inc. (a) | 1,716 | | 36,396 |
ON Semiconductor Corp. (a) | 6,785 | | 28,293 |
Pericom Semiconductor Corp. (a) | 1,700 | | 10,489 |
Pixelplus Co. Ltd. ADR (a) | 900 | | 243 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
PLX Technology, Inc. (a) | 1,400 | | $ 2,310 |
PMC-Sierra, Inc. (a) | 3,100 | | 15,097 |
Silicon Storage Technology, Inc. (a) | 1,200 | | 2,460 |
Skyworks Solutions, Inc. (a) | 5,300 | | 22,896 |
TriQuint Semiconductor, Inc. (a) | 13,200 | | 26,664 |
| | 311,479 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 317,551 |
SOFTWARE - 5.4% |
Application Software - 4.8% |
Smith Micro Software, Inc. (a) | 7,161 | | 37,953 |
Synchronoss Technologies, Inc. (a) | 3,000 | | 25,530 |
Taleo Corp. Class A (a) | 100 | | 843 |
Ulticom, Inc. (a) | 19,298 | | 110,964 |
| | 175,290 |
Home Entertainment Software - 0.6% |
Ubisoft Entertainment SA (a) | 1,600 | | 22,677 |
Systems Software - 0.0% |
Allot Communications Ltd. (a) | 300 | | 480 |
TOTAL SOFTWARE | | 198,447 |
WIRELESS TELECOMMUNICATION SERVICES - 4.7% |
Wireless Telecommunication Services - 4.7% |
American Tower Corp. Class A (a) | 1,340 | | 40,656 |
|
| Shares | | Value |
Crown Castle International Corp. (a) | 2,900 | | $ 56,608 |
SBA Communications Corp. Class A (a) | 3,900 | | 77,610 |
| | 174,874 |
TOTAL COMMON STOCKS (Cost $6,235,176) | 3,689,580 |
Convertible Bonds - 0.3% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.3% |
Communications Equipment - 0.3% |
Ciena Corp. 0.25% 5/1/13
(Cost $20,000) | | $ 20,000 | | 11,334 |
Money Market Funds - 0.3% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $10,396) | 10,396 | | 10,396 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $6,265,572) | | 3,711,310 |
NET OTHER ASSETS - (0.3)% | | (11,843) |
NET ASSETS - 100% | $ 3,699,467 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 2,933 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,711,310 | $ 3,659,846 | $ 51,464 | $ - |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $207,917 all of which will expire on July 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Advisor Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $6,255,176) | $ 3,700,914 | |
Fidelity Central Funds (cost $10,396) | 10,396 | |
Total Investments (cost $6,265,572) | | $ 3,711,310 |
Receivable for investments sold | | 18,187 |
Receivable for fund shares sold | | 10,639 |
Dividends receivable | | 190 |
Interest receivable | | 12 |
Distributions receivable from Fidelity Central Funds | | 110 |
Prepaid expenses | | 52 |
Receivable from investment adviser for expense reductions | | 4,020 |
Other receivables | | 59 |
Total assets | | 3,744,579 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,582 | |
Payable for fund shares redeemed | 14,889 | |
Accrued management fee | 1,779 | |
Distribution fees payable | 1,783 | |
Other affiliated payables | 1,019 | |
Other payables and accrued expenses | 23,060 | |
Total liabilities | | 45,112 |
| | |
Net Assets | | $ 3,699,467 |
Net Assets consist of: | | |
Paid in capital | | $ 8,161,702 |
Accumulated net investment loss | | (27,230) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,880,743) |
Net unrealized appreciation (depreciation) on investments | | (2,554,262) |
Net Assets | | $ 3,699,467 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,242,844 ÷ 274,916 shares) | | $ 4.52 |
| | |
Maximum offering price per share (100/94.25 of $4.52) | | $ 4.80 |
Class T:
Net Asset Value and redemption price per share ($1,139,047 ÷ 257,054 shares) | | $ 4.43 |
| | |
Maximum offering price per share (100/96.50 of $4.43) | | $ 4.59 |
Class B:
Net Asset Value and offering price per share ($620,470 ÷ 145,889 shares)A | | $ 4.25 |
| | |
Class C:
Net Asset Value and offering price per share ($592,254 ÷ 139,328 shares)A | | $ 4.25 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($104,852 ÷ 22,715 shares) | | $ 4.62 |
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.
Communications Equipment
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 12,955 |
Interest | | 38 |
Income from Fidelity Central Funds | | 2,933 |
Total income | | 15,926 |
| | |
Expenses | | |
Management fee | $ 14,226 | |
Transfer agent fees | 8,815 | |
Distribution fees | 14,064 | |
Accounting fees and expenses | 982 | |
Custodian fees and expenses | 2,887 | |
Independent trustees' compensation | 15 | |
Registration fees | 41,370 | |
Audit | 23,536 | |
Legal | 27 | |
Miscellaneous | 838 | |
Total expenses before reductions | 106,760 | |
Expense reductions | (63,604) | 43,156 |
Net investment income (loss) | | (27,230) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,593,336) | |
Foreign currency transactions | (1,691) | |
Total net realized gain (loss) | | (1,595,027) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,424,393) | |
Assets and liabilities in foreign currencies | 115 | |
Total change in net unrealized appreciation (depreciation) | | (1,424,278) |
Net gain (loss) | | (3,019,305) |
Net increase (decrease) in net assets resulting from operations | | $ (3,046,535) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (27,230) | $ (110,235) |
Net realized gain (loss) | (1,595,027) | 45,848 |
Change in net unrealized appreciation (depreciation) | (1,424,278) | (1,477,802) |
Net increase (decrease) in net assets resulting from operations | (3,046,535) | (1,542,189) |
Distributions to shareholders from net realized gain | - | (150,546) |
Share transactions - net increase (decrease) | (395,890) | (1,556,420) |
Redemption fees | 112 | 979 |
Total increase (decrease) in net assets | (3,442,313) | (3,248,176) |
| | |
Net Assets | | |
Beginning of period | 7,141,780 | 10,389,956 |
End of period (including accumulated net investment loss of $27,230 and $0, respectively) | $ 3,699,467 | $ 7,141,780 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 | $ 5.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.09) | (.09) | (.07) | (.09) |
Net realized and unrealized gain (loss) | (3.28) | (1.45) | 2.29 | (.32) | 1.24 | 1.01 |
Total from investment operations | (3.30) | (1.53) | 2.20 | (.41) | 1.17 | .92 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.52 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 |
Total Return B,C,D | (42.20)% | (16.43)% | 30.18% | (5.32)% | 17.92% | 17.24% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.90% A | 2.25% | 2.24% | 2.13% | 2.32% | 2.38% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.39% | 1.40% | 1.32% | 1.28% | 1.35% |
Net investment income (loss) | (.77)% A | (.91)% | (1.00)% | (1.05)% | (.92)% | (1.18)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,243 | $ 2,459 | $ 2,825 | $ 3,145 | $ 2,406 | $ 3,480 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 | $ 5.54 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.10) | (.11) | (.11) | (.08) | (.10) |
Net realized and unrealized gain (loss) | (3.22) | (1.42) | 2.26 | (.31) | 1.21 | 1.00 |
Total from investment operations | (3.25) | (1.52) | 2.15 | (.42) | 1.13 | .90 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.43 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 |
Total Return B,C,D | (42.32)% | (16.59)% | 29.90% | (5.52)% | 17.44% | 16.97% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.21% A | 2.62% | 2.57% | 2.51% | 2.78% | 3.06% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.71% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.64% | 1.57% | 1.54% | 1.60% |
Net investment income (loss) | (1.02)% A | (1.16)% | (1.25)% | (1.30)% | (1.18)% | (1.43)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,139 | $ 2,138 | $ 3,271 | $ 2,932 | $ 3,034 | $ 3,250 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 | $ 5.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.14) | (.14) | (.14) | (.12) | (.13) |
Net realized and unrealized gain (loss) | (3.10) | (1.36) | 2.18 | (.31) | 1.20 | .98 |
Total from investment operations | (3.14) | (1.50) | 2.04 | (.45) | 1.08 | .85 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.25 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Total Return B,C,D | (42.49)% | (16.94)% | 29.18% | (6.05)% | 16.98% | 16.27% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.63% A | 3.03% | 3.00% | 2.94% | 3.14% | 3.48% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.20% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.07% | 2.04% | 2.11% |
Net investment income (loss) | (1.52)% A | (1.67)% | (1.75)% | (1.80)% | (1.68)% | (1.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 620 | $ 1,219 | $ 2,225 | $ 2,406 | $ 2,864 | $ 2,998 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 | $ 5.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.14) | (.14) | (.15) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (3.09) | (1.37) | 2.18 | (.30) | 1.20 | .99 |
Total from investment operations | (3.13) | (1.51) | 2.04 | (.45) | 1.08 | .85 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.25 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Total Return B,C,D | (42.41)% | (17.06)% | 29.18% | (6.05)% | 16.98% | 16.27% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.63% A | 3.02% | 2.98% | 2.86% | 3.07% | 3.19% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.07% | 2.02% | 2.10% |
Net investment income (loss) | (1.52)% A | (1.67)% | (1.75)% | (1.81)% | (1.66)% | (1.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 592 | $ 1,097 | $ 1,745 | $ 1,768 | $ 1,846 | $ 3,180 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 | $ 5.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.06) | (.07) | (.07) | (.05) | (.07) |
Net realized and unrealized gain (loss) | (3.34) | (1.47) | 2.33 | (.33) | 1.24 | 1.02 |
Total from investment operations | (3.36) | (1.53) | 2.26 | (.40) | 1.19 | .95 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | .04 |
Net asset value, end of period | $ 4.62 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 |
Total Return B,C | (42.11)% | (16.16)% | 30.58% | (5.13)% | 18.03% | 17.65% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 3.56% A | 1.94% | 1.87% | 1.70% | 1.85% | 1.55% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.18% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.15% | 1.07% | 1.01% | 1.11% |
Net investment income (loss) | (.52)% A | (.66)% | (.75)% | (.80)% | (.65)% | (.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 105 | $ 229 | $ 324 | $ 379 | $ 319 | $ 607 |
Portfolio turnover rate F | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Communications Equipment Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institution-al Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 61,985 |
Unrealized depreciation | (2,720,974) |
Net unrealized appreciation (depreciation) | $ (2,658,989) |
Cost for federal income tax purposes | $ 6,370,299 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Communications Equipment
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,642,623 and $2,329,661, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 2,244 | $ 69 |
Class T | .25% | .25% | 3,706 | 2 |
Class B | .75% | .25% | 4,253 | 3,190 |
Class C | .75% | .25% | 3,861 | 449 |
| | | $ 14,064 | $ 3,710 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 514 |
Class T | 524 |
Class B* | 760 |
Class C* | 69 |
| $ 1,867 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 2,885 | .32 |
Class T | 3,086 | .42 |
Class B | 1,358 | .32 |
Class C | 1,257 | .32 |
Institutional Class | 229 | .30 |
| $ 8,815 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $56 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $7 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 22,498 |
Class T | 1.65% | 19,003 |
Class B | 2.15% | 10,558 |
Class C | 2.15% | 9,583 |
Institutional Class | 1.15% | 1,808 |
| | $ 63,450 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $154 for the period.
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.
Communications Equipment
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 39,064 |
Class T | - | 47,716 |
Class B | - | 32,890 |
Class C | - | 26,349 |
Institutional Class | - | 4,527 |
Total | $ - | $ 150,546 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 58,915 | 160,354 | $ 421,857 | $ 1,394,318 |
Reinvestment of distributions | - | 4,001 | - | 38,211 |
Shares redeemed | (98,252) | (147,761) | (506,680) | (1,297,098) |
Net increase (decrease) | (39,337) | 16,594 | $ (84,823) | $ 135,431 |
Class T | | | | |
Shares sold | 27,178 | 64,977 | $ 145,500 | $ 556,295 |
Reinvestment of distributions | - | 5,010 | - | 47,041 |
Shares redeemed | (48,528) | (141,880) | (282,479) | (1,263,739) |
Net increase (decrease) | (21,350) | (71,893) | $ (136,979) | $ (660,403) |
Class B | | | | |
Shares sold | 6,007 | 20,643 | $ 35,730 | $ 176,765 |
Reinvestment of distributions | - | 3,437 | - | 31,211 |
Shares redeemed | (25,093) | (105,422) | (129,588) | (851,909) |
Net increase (decrease) | (19,086) | (81,342) | $ (93,858) | $ (643,933) |
Class C | | | | |
Shares sold | 19,440 | 39,088 | $ 128,166 | $ 340,813 |
Reinvestment of distributions | - | 2,609 | - | 23,659 |
Shares redeemed | (28,718) | (86,305) | (172,246) | (711,202) |
Net increase (decrease) | (9,278) | (44,608) | $ (44,080) | $ (346,730) |
Institutional Class | | | | |
Shares sold | 2,019 | 5,041 | $ 11,000 | $ 45,930 |
Reinvestment of distributions | - | 356 | - | 3,461 |
Shares redeemed | (8,035) | (10,196) | (47,150) | (90,176) |
Net increase (decrease) | (6,016) | (4,799) | $ (36,150) | $ (40,785) |
Semiannual Report
Advisor Consumer Discretionary Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 694.40 | $ 5.98 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 694.10 | $ 7.05 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 691.80 | $ 9.17 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 691.40 | $ 9.17 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 695.40 | $ 4.91 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
McDonald's Corp. | 8.8 | 6.4 |
Target Corp. | 6.4 | 5.8 |
Lowe's Companies, Inc. | 6.4 | 3.9 |
Time Warner, Inc. | 5.2 | 5.9 |
Comcast Corp. Class A | 5.0 | 4.6 |
The Walt Disney Co. | 4.6 | 3.7 |
Home Depot, Inc. | 3.8 | 3.8 |
Staples, Inc. | 3.3 | 3.0 |
Apollo Group, Inc. Class A (non-vtg.) | 3.3 | 2.0 |
The DIRECTV Group, Inc. | 2.5 | 2.0 |
| 49.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Media | 26.0% | |
| Specialty Retail | 22.7% | |
| Hotels,
Restaurants & Leisure | 18.9% | |
| Multiline Retail | 7.0% | |
| Textiles, Apparel & Luxury Goods | 6.5% | |
| All Others* | 18.9% | |
As of July 31, 2008 |
| Media | 29.5% | |
| Specialty Retail | 24.6% | |
| Hotels,
Restaurants & Leisure | 14.5% | |
| Multiline Retail | 6.7% | |
| Textiles, Apparel & Luxury Goods | 6.0% | |
| All Others* | 18.7% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Consumer Discretionary
Advisor Consumer Discretionary Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
AUTO COMPONENTS - 0.7% |
Auto Parts & Equipment - 0.7% |
Gentex Corp. | 12,800 | | $ 107,392 |
TRW Automotive Holdings Corp. (a) | 7,400 | | 22,866 |
| | 130,258 |
AUTOMOBILES - 0.4% |
Automobile Manufacturers - 0.4% |
Ford Motor Co. (a)(d) | 35,692 | | 66,744 |
Motorcycle Manufacturers - 0.0% |
Harley-Davidson, Inc. | 200 | | 2,436 |
TOTAL AUTOMOBILES | | 69,180 |
DISTRIBUTORS - 1.0% |
Distributors - 1.0% |
Li & Fung Ltd. | 96,000 | | 190,972 |
DIVERSIFIED CONSUMER SERVICES - 4.8% |
Education Services - 4.4% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 7,600 | | 619,096 |
Princeton Review, Inc. (a) | 8,029 | | 39,422 |
Strayer Education, Inc. | 800 | | 173,144 |
| | 831,662 |
Specialized Consumer Services - 0.4% |
Coinstar, Inc. (a) | 3,700 | | 85,026 |
TOTAL DIVERSIFIED CONSUMER SERVICES | | 916,688 |
FOOD & STAPLES RETAILING - 4.1% |
Food Retail - 1.3% |
Susser Holdings Corp. (a) | 19,405 | | 253,623 |
Hypermarkets & Super Centers - 2.8% |
Costco Wholesale Corp. | 8,800 | | 396,264 |
Wal-Mart Stores, Inc. | 2,900 | | 136,648 |
| | 532,912 |
TOTAL FOOD & STAPLES RETAILING | | 786,535 |
HOTELS, RESTAURANTS & LEISURE - 18.9% |
Casinos & Gaming - 4.1% |
Bally Technologies, Inc. (a) | 6,300 | | 127,197 |
International Game Technology | 17,500 | | 185,500 |
Las Vegas Sands Corp. (a) | 12,230 | | 62,985 |
Las Vegas Sands Corp. unit (a) | 1,000 | | 85,500 |
Penn National Gaming, Inc. (a) | 9,100 | | 169,715 |
WMS Industries, Inc. (a) | 7,200 | | 159,984 |
| | 790,881 |
Hotels, Resorts & Cruise Lines - 1.2% |
Carnival Corp. unit | 13,100 | | 238,289 |
Restaurants - 13.6% |
Brinker International, Inc. | 8,000 | | 87,760 |
Burger King Holdings, Inc. | 10,400 | | 231,400 |
|
| Shares | | Value |
Darden Restaurants, Inc. | 9,600 | | $ 251,712 |
Jack in the Box, Inc. (a) | 2,700 | | 60,993 |
McDonald's Corp. | 28,900 | | 1,676,776 |
Sonic Corp. (a) | 18,600 | | 181,164 |
Wendy's/Arby's Group, Inc. | 20,900 | | 105,336 |
| | 2,595,141 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 3,624,311 |
HOUSEHOLD DURABLES - 1.8% |
Homebuilding - 1.3% |
Centex Corp. | 7,700 | | 65,527 |
Lennar Corp. Class A (d) | 5,830 | | 44,833 |
Pulte Homes, Inc. | 14,200 | | 144,130 |
| | 254,490 |
Household Appliances - 0.5% |
Whirlpool Corp. | 2,800 | | 93,604 |
TOTAL HOUSEHOLD DURABLES | | 348,094 |
INTERNET & CATALOG RETAIL - 2.4% |
Internet Retail - 2.4% |
Amazon.com, Inc. (d) | 7,900 | | 464,678 |
INTERNET SOFTWARE & SERVICES - 1.7% |
Internet Software & Services - 1.7% |
Dice Holdings, Inc. (a) | 4,699 | | 13,439 |
Google, Inc. Class A (sub. vtg.) (a) | 900 | | 304,677 |
| | 318,116 |
LEISURE EQUIPMENT & PRODUCTS - 1.0% |
Leisure Products - 1.0% |
Hasbro, Inc. | 8,316 | | 200,665 |
MEDIA - 26.0% |
Advertising - 2.5% |
Interpublic Group of Companies, Inc. (a) | 36,200 | | 120,546 |
Lamar Advertising Co. Class A (a)(d) | 5,100 | | 45,951 |
Omnicom Group, Inc. | 12,200 | | 315,858 |
| | 482,355 |
Broadcasting - 1.4% |
Grupo Televisa SA de CV (CPO) sponsored ADR | 18,400 | | 257,416 |
Cable & Satellite - 9.3% |
Comcast Corp. Class A | 65,450 | | 958,843 |
Liberty Media Corp. - Entertainment Class A (a) | 12,500 | | 229,375 |
The DIRECTV Group, Inc. (a) | 21,400 | | 468,660 |
Time Warner Cable, Inc. (a) | 4,600 | | 85,698 |
Virgin Media, Inc. | 8,800 | | 39,952 |
| | 1,782,528 |
Movies & Entertainment - 11.9% |
Ascent Media Corp. (a) | 1,300 | | 33,904 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - CONTINUED |
Movies & Entertainment - continued |
News Corp.: | | | |
Class A | 35,484 | | $ 226,743 |
Class B (d) | 3,700 | | 26,788 |
Regal Entertainment Group Class A | 9,940 | | 99,798 |
The Walt Disney Co. | 42,800 | | 885,104 |
Time Warner, Inc. | 107,100 | | 999,243 |
| | 2,271,580 |
Publishing - 0.9% |
McGraw-Hill Companies, Inc. | 7,700 | | 169,323 |
TOTAL MEDIA | | 4,963,202 |
MULTILINE RETAIL - 7.0% |
Department Stores - 0.6% |
Nordstrom, Inc. (d) | 8,100 | | 102,789 |
General Merchandise Stores - 6.4% |
Target Corp. | 39,400 | | 1,229,280 |
TOTAL MULTILINE RETAIL | | 1,332,069 |
SPECIALTY RETAIL - 22.7% |
Apparel Retail - 3.3% |
Abercrombie & Fitch Co. Class A | 7,600 | | 135,660 |
Citi Trends, Inc. (a) | 10,747 | | 102,419 |
Ross Stores, Inc. | 8,000 | | 235,360 |
Urban Outfitters, Inc. (a) | 6,300 | | 98,154 |
Zumiez, Inc. (a)(d) | 8,500 | | 60,775 |
| | 632,368 |
Automotive Retail - 2.8% |
Advance Auto Parts, Inc. | 11,800 | | 386,214 |
AutoZone, Inc. (a) | 1,100 | | 146,179 |
| | 532,393 |
Computer & Electronics Retail - 0.8% |
Gamestop Corp. Class A (a) | 6,300 | | 156,114 |
Home Improvement Retail - 10.8% |
Home Depot, Inc. | 34,067 | | 733,463 |
Lowe's Companies, Inc. | 66,700 | | 1,218,609 |
Sherwin-Williams Co. | 2,300 | | 109,825 |
| | 2,061,897 |
Homefurnishing Retail - 0.6% |
Williams-Sonoma, Inc. | 15,900 | | 125,928 |
Specialty Stores - 4.4% |
PetSmart, Inc. | 8,400 | | 157,668 |
|
| Shares | | Value |
Sally Beauty Holdings, Inc. (a) | 12,400 | | $ 58,652 |
Staples, Inc. | 38,938 | | 620,672 |
| | 836,992 |
TOTAL SPECIALTY RETAIL | | 4,345,692 |
TEXTILES, APPAREL & LUXURY GOODS - 6.5% |
Apparel, Accessories & Luxury Goods - 2.7% |
Coach, Inc. (a) | 8,400 | | 122,640 |
G-III Apparel Group Ltd. (a) | 9,700 | | 53,350 |
Hanesbrands, Inc. (a) | 10,100 | | 90,799 |
Polo Ralph Lauren Corp. Class A | 2,300 | | 94,369 |
VF Corp. | 2,900 | | 162,458 |
| | 523,616 |
Footwear - 3.8% |
Iconix Brand Group, Inc. (a) | 37,800 | | 312,606 |
NIKE, Inc. Class B | 9,200 | | 416,300 |
| | 728,906 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 1,252,522 |
TOTAL COMMON STOCKS (Cost $28,085,070) | 18,942,982 |
Money Market Funds - 4.6% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 188,192 | | 188,192 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 684,950 | | 684,950 |
TOTAL MONEY MARKET FUNDS (Cost $873,142) | 873,142 |
TOTAL INVESTMENT PORTFOLIO - 103.6% (Cost $28,958,212) | | 19,816,124 |
NET OTHER ASSETS - (3.6)% | | (693,038) |
NET ASSETS - 100% | $ 19,123,086 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,220 |
Fidelity Securities Lending Cash Central Fund | 26,297 |
Total | $ 28,517 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 19,816,124 | $ 19,539,652 | $ 190,972 | $ 85,500 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (14,500) |
Cost of Purchases | 100,000 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 85,500 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $2,972,883 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $712,032) - See accompanying schedule: Unaffiliated issuers (cost $28,085,070) | $ 18,942,982 | |
Fidelity Central Funds (cost $873,142) | 873,142 | |
Total Investments (cost $28,958,212) | | $ 19,816,124 |
Cash | | 24,137 |
Foreign currency held at value (cost $5) | | 4 |
Receivable for investments sold | | 259,710 |
Receivable for fund shares sold | | 5,883 |
Dividends receivable | | 5,956 |
Distributions receivable from Fidelity Central Funds | | 1,728 |
Prepaid expenses | | 253 |
Receivable from investment adviser for expense reductions | | 148 |
Other receivables | | 11 |
Total assets | | 20,113,954 |
| | |
Liabilities | | |
Payable for investments purchased | $ 159,856 | |
Payable for fund shares redeemed | 97,570 | |
Accrued management fee | 9,708 | |
Distribution fees payable | 9,024 | |
Other affiliated payables | 5,734 | |
Other payables and accrued expenses | 24,026 | |
Collateral on securities loaned, at value | 684,950 | |
Total liabilities | | 990,868 |
| | |
Net Assets | | $ 19,123,086 |
Net Assets consist of: | | |
Paid in capital | | $ 35,674,939 |
Accumulated net investment loss | | (10,822) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (7,398,942) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (9,142,089) |
Net Assets | | $ 19,123,086 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($7,964,194 ÷ 1,007,812 shares) | | $ 7.90 |
| | |
Maximum offering price per share (100/94.25 of $7.90) | | $ 8.38 |
Class T:
Net Asset Value and redemption price per share ($5,631,513 ÷ 734,568 shares) | | $ 7.67 |
| | |
Maximum offering price per share (100/96.50 of $7.67) | | $ 7.95 |
Class B:
Net Asset Value and offering price per share ($2,989,075 ÷ 417,429 shares)A | | $ 7.16 |
| | |
Class C:
Net Asset Value and offering price per share ($2,282,126 ÷ 318,227 shares)A | | $ 7.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($256,178 ÷ 31,238 shares) | | $ 8.20 |
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.
Consumer Discretionary
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 202,343 |
Interest | | 5 |
Income from Fidelity Central Funds (including $26,297 from security lending) | | 28,517 |
Total income | | 230,865 |
| | |
Expenses | | |
Management fee | $ 68,438 | |
Transfer agent fees | 36,129 | |
Distribution fees | 64,439 | |
Accounting and security lending fees | 5,254 | |
Custodian fees and expenses | 2,960 | |
Independent trustees' compensation | 71 | |
Registration fees | 32,038 | |
Audit | 22,623 | |
Legal | 104 | |
Miscellaneous | 2,041 | |
Total expenses before reductions | 234,097 | |
Expense reductions | (29,344) | 204,753 |
Net investment income (loss) | | 26,112 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (4,277,816) | |
Foreign currency transactions | 9 | |
Total net realized gain (loss) | | (4,277,807) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (4,831,126) | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | | (4,831,127) |
Net gain (loss) | | (9,108,934) |
Net increase (decrease) in net assets resulting from operations | | $ (9,082,822) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,112 | $ (64,816) |
Net realized gain (loss) | (4,277,807) | (2,749,077) |
Change in net unrealized appreciation (depreciation) | (4,831,127) | (6,918,327) |
Net increase (decrease) in net assets resulting from operations | (9,082,822) | (9,732,220) |
Distributions to shareholders from net investment income | (36,930) | - |
Distributions to shareholders from net realized gain | - | (4,774,547) |
Total distributions | (36,930) | (4,774,547) |
Share transactions - net increase (decrease) | (1,672,477) | (10,594,844) |
Redemption fees | 3,299 | 847 |
Total increase (decrease) in net assets | (10,788,930) | (25,100,764) |
| | |
Net Assets | | |
Beginning of period | 29,912,016 | 55,012,780 |
End of period (including accumulated net investment loss of $10,822 and accumulated net investment loss of $4, respectively) | $ 19,123,086 | $ 29,912,016 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 | $ 13.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .02 | .02 H | (.04) | (.07) | (.07) |
Net realized and unrealized gain (loss) | (3.50) | (3.09) | 1.83 | (.07) | 2.71 | .87 |
Total from investment operations | (3.48) | (3.07) | 1.85 | (.11) | 2.64 | .80 |
Distributions from net investment income | (.03) | - | (.05) | - | - | - |
Distributions from net realized gain | - | (1.41) | (2.30) | (.12) | (.53) | - |
Total distributions | (.03) | (1.41) | (2.35) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.90 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 |
Total Return B, C, D | (30.56)% | (21.24)% | 11.67% | (.69)% | 18.85% | 5.84% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.64% A | 1.40% | 1.42% | 1.42% | 1.47% | 1.55% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.44% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.40% | 1.39% | 1.39% | 1.42% | 1.45% |
Net investment income (loss) | .50% A | .15% | .11% H | (.23)% | (.45)% | (.50)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,964 | $ 11,899 | $ 19,708 | $ 16,935 | $ 17,887 | $ 11,856 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.32)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 | $ 13.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.01) | (.02) H | (.07) | (.11) | (.11) |
Net realized and unrealized gain (loss) | (3.39) | (3.00) | 1.79 | (.07) | 2.66 | .87 |
Total from investment operations | (3.38) | (3.01) | 1.77 | (.14) | 2.55 | .76 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | - | (1.39) | (2.30) | (.12) | (.53) | - |
Total distributions | (.02) | (1.39) | (2.33) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.67 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 |
Total Return B, C, D | (30.59)% | (21.41) | 11.43% | (.89)% | 18.52% | 5.63% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.89% A | 1.64% | 1.69% | 1.69% | 1.75% | 1.81% |
Expenses net of fee waivers, if any | 1.65% A | 1.64% | 1.65% | 1.65% | 1.69% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.62% | 1.61% | 1.62% | 1.67% | 1.70% |
Net investment income (loss) | .25% A | (.08)% | (.10)% H | (.46)% | (.70)% | (.74)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,632 | $ 9,095 | $ 14,787 | $ 14,267 | $ 16,782 | $ 15,555 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.53)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 | $ 13.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.07) | (.10) H | (.15) | (.17) | (.18) |
Net realized and unrealized gain (loss) | (3.18) | (2.81) | 1.70 | (.07) | 2.55 | .85 |
Total from investment operations | (3.19) | (2.88) | 1.60 | (.22) | 2.38 | .67 |
Distributions from net realized gain | - | (1.33) | (2.30) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.16 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 |
Total Return B, C, D | (30.82)% | (21.80)% | 10.82% | (1.45)% | 17.97% | 5.12% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.39% A | 2.14% | 2.20% | 2.19% | 2.24% | 2.29% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.15% | 2.14% | 2.16% | 2.20% |
Net investment income (loss) | (.26)% A | (.60)% | (.64)% H | (.98)% | (1.20)% | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,989 | $ 5,090 | $ 11,081 | $ 14,088 | $ 18,862 | $ 17,302 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 | $ 13.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.07) | (.10) H | (.15) | (.17) | (.18) |
Net realized and unrealized gain (loss) | (3.19) | (2.81) | 1.71 | (.07) | 2.55 | .85 |
Total from investment operations | (3.20) | (2.88) | 1.61 | (.22) | 2.38 | .67 |
Distributions from net realized gain | - | (1.34) | (2.30) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.17 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 |
Total Return B, C, D | (30.86)% | (21.77)% | 10.88% | (1.45)% | 17.94% | 5.11% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.40% A | 2.15% | 2.16% | 2.12% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.12% | 2.17% | 2.24% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.15% | 2.12% | 2.14% | 2.19% |
Net investment income (loss) | (.25)% A | (.60)% | (.64)% H | (.95)% | (1.18)% | (1.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,282 | $ 3,430 | $ 8,051 | $ 7,160 | $ 8,505 | $ 6,992 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 | $ 13.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .06 | .06 G | - | (.03) | (.04) |
Net realized and unrealized gain (loss) | (3.64) | (3.22) | 1.89 | (.07) | 2.76 | .90 |
Total from investment operations | (3.60) | (3.16) | 1.95 | (.07) | 2.73 | .86 |
Distributions from net investment income | (.04) | - | (.06) | - | - | - |
Distributions from net realized gain | - | (1.41) | (2.30) | (.12) | (.53) | - |
Total distributions | (.04) | (1.41) | (2.36) | (.12) | (.53) | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.20 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 |
Total Return B, C | (30.46)% | (21.09)% | 12.04% | (.44)% | 19.08% | 6.16% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | 1.41% A | 1.14% | 1.15% | 1.18% | 1.26% | 1.34% |
Expenses net of fee waivers, if any | 1.15% A | 1.14% | 1.15% | 1.15% | 1.20% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.14% | 1.14% | 1.17% | 1.20% |
Net investment income (loss) | .75% A | .40% | .36% G | .02% | (.21)% | (.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 256 | $ 398 | $ 1,385 | $ 1,144 | $ 1,371 | $ 907 |
Portfolio turnover rate F | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 888,067 |
Unrealized depreciation | (10,274,546) |
Net unrealized appreciation (depreciation) | $ (9,386,479) |
Cost for federal income tax purposes | $ 29,202,603 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Consumer Discretionary
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,907,403 and $10,765,074, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 12,281 | $ 14 |
Class T | .25% | .25% | 18,294 | - |
Class B | .75% | .25% | 19,785 | 14,875 |
Class C | .75% | .25% | 14,079 | 1,118 |
| | | $ 64,439 | $ 16,007 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 3,210 |
Class T | 814 |
Class B* | 5,315 |
Class C* | 48 |
| $ 9,387 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 14,632 | .30 |
Class T | 10,846 | .30 |
Class B | 5,890 | .30 |
Class C | 4,202 | .30 |
Institutional Class | 559 | .30 |
| $ 36,129 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $734 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $31 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 11,859 |
Class T | 1.65% | 8,798 |
Class B | 2.15% | 4,763 |
Class C | 2.15% | 3,430 |
Institutional Class | 1.15% | 479 |
| | $ 29,329 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15 for the period.
Consumer Discretionary
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 24,249 | $ - |
Class T | 11,523 | - |
Institutional Class | 1,158 | - |
Total | $ 36,930 | $ - |
From net realized gain | | |
Class A | $ - | $ 1,697,903 |
Class T | - | 1,304,169 |
Class B | - | 954,937 |
Class C | - | 712,594 |
Institutional Class | - | 104,944 |
Total | $ - | $ 4,774,547 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 214,617 | 231,645 | $ 2,067,897 | $ 3,074,782 |
Reinvestment of distributions | 2,650 | 104,669 | 22,145 | 1,531,841 |
Shares redeemed | (251,930) | (533,803) | (2,272,898) | (7,132,154) |
Net increase (decrease) | (34,663) | (197,489) | $ (182,856) | $ (2,525,531) |
Class T | | | | |
Shares sold | 38,143 | 113,866 | $ 344,438 | $ 1,488,704 |
Reinvestment of distributions | 1,356 | 84,915 | 11,014 | 1,207,897 |
Shares redeemed | (126,207) | (333,215) | (1,161,320) | (4,304,558) |
Net increase (decrease) | (86,708) | (134,434) | $ (805,868) | $ (1,607,957) |
Class B | | | | |
Shares sold | 25,217 | 34,749 | $ 217,813 | $ 420,244 |
Reinvestment of distributions | - | 65,209 | - | 871,754 |
Shares redeemed | (99,539) | (369,099) | (884,619) | (4,475,959) |
Net increase (decrease) | (74,322) | (269,141) | $ (666,806) | $ (3,183,961) |
Class C | | | | |
Shares sold | 42,364 | 46,115 | $ 369,775 | $ 563,853 |
Reinvestment of distributions | - | 37,909 | - | 507,333 |
Shares redeemed | (55,019) | (304,893) | (468,148) | (3,642,610) |
Net increase (decrease) | (12,655) | (220,869) | $ (98,373) | $ (2,571,424) |
Institutional Class | | | | |
Shares sold | 32,212 | 41,241 | $ 374,691 | $ 586,738 |
Reinvestment of distributions | 104 | 5,683 | 903 | 86,193 |
Shares redeemed | (34,687) | (97,732) | (294,168) | (1,378,902) |
Net increase (decrease) | (2,371) | (50,808) | $ 81,426 | $ (705,971) |
Semiannual Report
Advisor Electronics Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 595.00 | $ 5.63 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 595.20 | $ 6.63 |
Hypothetical A | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 592.50 | $ 8.63 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 593.50 | $ 8.64 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 596.50 | $ 4.63 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Electronics
Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Intel Corp. | 24.0 | 23.7 |
Texas Instruments, Inc. | 10.1 | 7.8 |
Applied Materials, Inc. | 7.4 | 9.2 |
Marvell Technology Group Ltd. | 3.2 | 0.6 |
Analog Devices, Inc. | 2.9 | 0.0 |
Lam Research Corp. | 2.4 | 2.3 |
National Semiconductor Corp. | 2.4 | 0.0 |
Varian Semiconductor Equipment Associates, Inc. | 2.4 | 2.3 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 2.2 | 1.6 |
Broadcom Corp. Class A | 2.1 | 3.7 |
| 59.1 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Semiconductors & Semiconductor Equipment | 86.2% | |
| Electronic Equipment & Components | 4.5% | |
| Communications Equipment | 2.6% | |
| Electrical Equipment | 1.6% | |
| Computers & Peripherals | 1.0% | |
| All Others* | 4.1% | |
|
As of July 31, 2008 |
| Semiconductors & Semiconductor Equipment | 76.0% | |
| Communications Equipment | 6.0% | |
| Electrical Equipment | 4.9% | |
| Computers & Peripherals | 4.3% | |
| Electronic Equipment & Instruments | 2.3% | |
| All Others* | 6.5% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Electronics Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.1% |
| Shares | | Value |
CHEMICALS - 0.0% |
Specialty Chemicals - 0.0% |
Nanophase Technologies Corp. (a) | 1,945 | | $ 1,614 |
COMMUNICATIONS EQUIPMENT - 2.3% |
Communications Equipment - 2.3% |
Cisco Systems, Inc. (a) | 1,800 | | 26,946 |
QUALCOMM, Inc. | 3,900 | | 134,745 |
| | 161,691 |
COMPUTERS & PERIPHERALS - 0.9% |
Computer Hardware - 0.5% |
HTC Corp. | 4,080 | | 38,528 |
Computer Storage & Peripherals - 0.4% |
SanDisk Corp. (a) | 1,700 | | 19,431 |
Seagate Technology | 2,300 | | 8,717 |
| | 28,148 |
TOTAL COMPUTERS & PERIPHERALS | | 66,676 |
ELECTRICAL EQUIPMENT - 1.6% |
Electrical Components & Equipment - 1.6% |
First Solar, Inc. (a) | 300 | | 42,840 |
Motech Industries, Inc. | 1 | | 2 |
Q-Cells SE (a) | 800 | | 19,665 |
Renewable Energy Corp. AS (a) | 2,000 | | 20,178 |
SolarWorld AG | 1,000 | | 21,240 |
Sunpower Corp. Class B (a) | 400 | | 10,568 |
| | 114,493 |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.9% |
Electronic Components - 0.6% |
Everlight Electronics Co. Ltd. | 20,559 | | 27,160 |
Vishay Intertechnology, Inc. (a) | 4,700 | | 13,912 |
| | 41,072 |
Electronic Manufacturing Services - 0.7% |
DDi Corp. (a) | 2,200 | | 7,436 |
Flextronics International Ltd. (a) | 10,600 | | 27,666 |
Jabil Circuit, Inc. | 1,900 | | 11,058 |
| | 46,160 |
Technology Distributors - 2.6% |
Arrow Electronics, Inc. (a) | 1,700 | | 32,419 |
Avnet, Inc. (a) | 6,100 | | 120,902 |
Ingram Micro, Inc. Class A (a) | 2,700 | | 33,129 |
| | 186,450 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 273,682 |
|
| Shares | | Value |
LIFE SCIENCES TOOLS & SERVICES - 0.6% |
Life Sciences Tools & Services - 0.6% |
Arrowhead Research Corp. (a) | 4,216 | | $ 3,668 |
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | | 41,189 |
| | 44,857 |
METALS & MINING - 0.1% |
Diversified Metals & Mining - 0.1% |
Timminco Ltd. (a) | 2,600 | | 7,339 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 83.3% |
Semiconductor Equipment - 19.6% |
Advanced Energy Industries, Inc. (a) | 200 | | 1,796 |
Aixtron AG | 4,200 | | 21,724 |
Amkor Technology, Inc. (a) | 600 | | 1,392 |
Applied Materials, Inc. | 55,900 | | 523,783 |
ASML Holding NV (NY Shares) | 8,900 | | 147,206 |
ATMI, Inc. (a) | 1,600 | | 21,616 |
Brooks Automation, Inc. (a) | 300 | | 1,371 |
Cabot Microelectronics Corp. (a) | 100 | | 2,276 |
Cohu, Inc. | 100 | | 998 |
Cymer, Inc. (a) | 4,200 | | 85,680 |
Entegris, Inc. (a) | 600 | | 834 |
FEI Co. (a) | 200 | | 3,640 |
FormFactor, Inc. (a) | 1,450 | | 22,562 |
Global Unichip Corp. | 5,383 | | 19,823 |
KLA-Tencor Corp. | 1,000 | | 20,040 |
Lam Research Corp. (a) | 8,600 | | 173,806 |
MEMC Electronic Materials, Inc. (a) | 9,000 | | 122,400 |
MKS Instruments, Inc. (a) | 200 | | 2,810 |
Novellus Systems, Inc. (a) | 500 | | 6,895 |
Teradyne, Inc. (a) | 400 | | 1,924 |
Tessera Technologies, Inc. (a) | 3,700 | | 43,512 |
Ultratech, Inc. (a) | 100 | | 1,120 |
Varian Semiconductor Equipment Associates, Inc. (a) | 8,900 | | 169,456 |
Veeco Instruments, Inc. (a) | 200 | | 966 |
Verigy Ltd. (a) | 300 | | 2,493 |
| | 1,400,123 |
Semiconductors - 63.7% |
Actel Corp. (a) | 100 | | 902 |
Advanced Analogic Technologies, Inc. (a) | 11,200 | | 33,712 |
Advanced Micro Devices, Inc. (a) | 3,400 | | 7,446 |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 19,337 | | 30,939 |
Altera Corp. | 3,100 | | 47,678 |
Analog Devices, Inc. | 10,300 | | 205,794 |
Applied Micro Circuits Corp. (a) | 1,200 | | 4,800 |
ARM Holdings PLC sponsored ADR | 20,100 | | 80,601 |
Atmel Corp. (a) | 27,600 | | 92,184 |
Broadcom Corp. Class A (a) | 9,350 | | 148,198 |
California Micro Devices Corp. (a) | 3,500 | | 7,490 |
Cavium Networks, Inc. (a) | 2,500 | | 22,750 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Chartered Semiconductor Manufacturing Ltd. sponsored ADR (a) | 4,300 | | $ 6,321 |
Cree, Inc. (a) | 400 | | 7,972 |
Cypress Semiconductor Corp. (a) | 2,100 | | 9,471 |
Diodes, Inc. (a) | 200 | | 1,296 |
DSP Group, Inc. (a) | 200 | | 1,302 |
Exar Corp. (a) | 200 | | 1,354 |
Fairchild Semiconductor International, Inc. (a) | 14,400 | | 65,520 |
Integrated Device Technology, Inc. (a) | 6,600 | | 37,884 |
Intel Corp. | 132,890 | | 1,714,281 |
International Rectifier Corp. (a) | 400 | | 5,448 |
Intersil Corp. Class A | 5,600 | | 52,136 |
Linear Technology Corp. | 1,200 | | 28,104 |
LSI Corp. (a) | 3,300 | | 10,494 |
Marvell Technology Group Ltd. (a) | 30,850 | | 224,897 |
Maxim Integrated Products, Inc. | 4,800 | | 63,504 |
Micrel, Inc. | 300 | | 2,280 |
Microchip Technology, Inc. | 600 | | 11,382 |
Micron Technology, Inc. (a) | 28,500 | | 106,020 |
Microsemi Corp. (a) | 2,200 | | 18,480 |
National Semiconductor Corp. | 17,100 | | 173,394 |
Netlogic Microsystems, Inc. (a) | 100 | | 2,121 |
NVIDIA Corp. (a) | 11,500 | | 91,425 |
O2Micro International Ltd. sponsored ADR (a) | 3,100 | | 7,130 |
Omnivision Technologies, Inc. (a) | 300 | | 2,007 |
ON Semiconductor Corp. (a) | 2,700 | | 11,259 |
PMC-Sierra, Inc. (a) | 8,100 | | 39,447 |
Power Integrations, Inc. | 700 | | 13,629 |
Rambus, Inc. (a) | 500 | | 4,530 |
RF Micro Devices, Inc. (a) | 1,300 | | 1,404 |
Richtek Technology Corp. | 8,005 | | 29,241 |
Samsung Electronics Co. Ltd. | 255 | | 88,542 |
Semtech Corp. (a) | 400 | | 4,700 |
Sigma Designs, Inc. (a) | 100 | | 1,022 |
Silicon Image, Inc. (a) | 400 | | 1,468 |
Silicon Laboratories, Inc. (a) | 300 | | 6,909 |
Silicon Storage Technology, Inc. (a) | 500 | | 1,025 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 10,343 | | 42,717 |
Skyworks Solutions, Inc. (a) | 900 | | 3,888 |
Standard Microsystems Corp. (a) | 700 | | 9,695 |
Supertex, Inc. (a) | 60 | | 1,361 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 21,107 | | 159,147 |
Texas Instruments, Inc. | 48,300 | | 722,085 |
TriQuint Semiconductor, Inc. (a) | 800 | | 1,616 |
|
| Shares | | Value |
Xilinx, Inc. | 3,000 | | $ 50,550 |
Zoran Corp. (a) | 3,100 | | 18,414 |
| | 4,539,366 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 5,939,489 |
SOFTWARE - 0.4% |
Home Entertainment Software - 0.4% |
Nintendo Co. Ltd. | 100 | | 29,120 |
TOTAL COMMON STOCKS (Cost $12,531,941) | 6,638,961 |
Convertible Bonds - 3.9% |
| Principal Amount (c) | | |
COMMUNICATIONS EQUIPMENT - 0.3% |
Communications Equipment - 0.3% |
Lucent Technologies, Inc. 2.875% 6/15/25 | | $ 50,000 | | 22,875 |
COMPUTERS & PERIPHERALS - 0.1% |
Computer Storage & Peripherals - 0.1% |
Maxtor Corp. 2.375% 8/15/12 | | 20,000 | | 11,474 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Manufacturing Services - 0.6% |
TTM Technologies, Inc. 3.25% 5/15/15 | | 70,000 | | 40,236 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.9% |
Semiconductor Equipment - 0.7% |
Amkor Technology, Inc. 2.5% 5/15/11 | | 80,000 | | 48,160 |
Semiconductors - 2.2% |
Advanced Micro Devices, Inc. 6% 5/1/15 | | 220,000 | | 69,344 |
Diodes, Inc. 2.25% 10/1/26 | | 40,000 | | 27,176 |
Infineon Technologies Holding BV 5% 6/5/10 | EUR | 50,000 | | 22,245 |
Xilinx, Inc. 3.125% 3/15/37 | | 60,000 | | 39,378 |
| | 158,143 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 206,303 |
TOTAL CONVERTIBLE BONDS (Cost $305,685) | 280,888 |
Money Market Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $204,417) | 204,417 | | $ 204,417 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $13,042,043) | | 7,124,266 |
NET OTHER ASSETS - 0.1% | | 9,394 |
NET ASSETS - 100% | $ 7,133,660 |
Currency Abbreviation |
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Principal amount is stated in United States dollars unless otherwise noted. |
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 | $ 2,516 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 7,124,266 | $ 6,569,773 | $ 554,493 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 84.8% |
Taiwan | 4.8% |
Bermuda | 3.2% |
Netherlands | 2.4% |
Korea (South) | 1.3% |
United Kingdom | 1.1% |
Others (individually less than 1%) | 2.4% |
| 100.0% |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $7,629,844 of which $4,774,109, $2,265,871, $279,201 and $310,663 will expire on July 31, 2011, 2012, 2013 and 2016, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,004,653 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Advisor Electronics Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $12,837,626) | $ 6,919,849 | |
Fidelity Central Funds (cost $204,417) | 204,417 | |
Total Investments (cost $13,042,043) | | $ 7,124,266 |
Cash | | 29,604 |
Receivable for investments sold | | 33,862 |
Receivable for fund shares sold | | 13,246 |
Dividends receivable | | 6,258 |
Interest receivable | | 7,651 |
Distributions receivable from Fidelity Central Funds | | 286 |
Prepaid expenses | | 103 |
Receivable from investment adviser for expense reductions | | 3,477 |
Other receivables | | 71 |
Total assets | | 7,218,824 |
| | |
Liabilities | | |
Payable for investments purchased | $ 26,031 | |
Payable for fund shares redeemed | 29,030 | |
Accrued management fee | 3,535 | |
Distribution fees payable | 3,670 | |
Other affiliated payables | 2,141 | |
Other payables and accrued expenses | 20,757 | |
Total liabilities | | 85,164 |
| | |
Net Assets | | $ 7,133,660 |
Net Assets consist of: | | |
Paid in capital | | $ 28,088,378 |
Undistributed net investment income | | 6,598 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (15,043,336) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,917,980) |
Net Assets | | $ 7,133,660 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($2,134,048 ÷ 528,351 shares) | | $ 4.04 |
| | |
Maximum offering price per share (100/94.25 of $4.04) | | $ 4.29 |
Class T:
Net Asset Value and redemption price per share ($2,368,981 ÷ 597,420 shares) | | $ 3.97 |
| | |
Maximum offering price per share (100/96.50 of $3.97) | | $ 4.11 |
Class B:
Net Asset Value and offering price per share ($803,891 ÷ 210,962 shares)A | | $ 3.81 |
| | |
Class C:
Net Asset Value and offering price per share ($1,659,797 ÷ 436,056 shares)A | | $ 3.81 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($166,943 ÷ 40,370 shares) | | $ 4.14 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Electronics Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 88,520 |
Interest | | 3,374 |
Income from Fidelity Central Funds | | 2,516 |
Total income | | 94,410 |
| | |
Expenses | | |
Management fee | $ 28,121 | |
Transfer agent fees | 16,173 | |
Distribution fees | 30,104 | |
Accounting fees and expenses | 1,942 | |
Custodian fees and expenses | 6,873 | |
Independent trustees' compensation | 30 | |
Registration fees | 42,086 | |
Audit | 23,062 | |
Legal | 85 | |
Miscellaneous | 1,694 | |
Total expenses before reductions | 150,170 | |
Expense reductions | (62,358) | 87,812 |
Net investment income (loss) | | 6,598 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,103,813) | |
Foreign currency transactions | (1,086) | |
Total net realized gain (loss) | | (3,104,899) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,337,641) | |
Assets and liabilities in foreign currencies | (91) | |
Total change in net unrealized appreciation (depreciation) | | (2,337,732) |
Net gain (loss) | | (5,442,631) |
Net increase (decrease) in net assets resulting from operations | | $ (5,436,033) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,598 | $ (90,535) |
Net realized gain (loss) | (3,104,899) | (4,347,575) |
Change in net unrealized appreciation (depreciation) | (2,337,732) | (2,232,309) |
Net increase (decrease) in net assets resulting from operations | (5,436,033) | (6,670,419) |
Share transactions - net increase (decrease) | (1,740,402) | (8,363,960) |
Redemption fees | 250 | 266 |
Total increase (decrease) in net assets | (7,176,185) | (15,034,113) |
| | |
Net Assets | | |
Beginning of period | 14,309,845 | 29,343,958 |
End of period (including undistributed net investment income of $6,598 and $0, respectively) | $ 7,133,660 | $ 14,309,845 |
See accompanying notes which are an integral part of the financial statements.
Electronics
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 | $ 6.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | - I | (.03) | (.04) | (.07) | (.09) |
Net realized and unrealized gain (loss) | (2.76) | (2.32) | 1.76 | (.62) | 1.53 | .08 |
Total from investment operations | (2.75) | (2.32) | 1.73 | (.66) | 1.46 | (.01) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 4.04 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 |
Total Return B,C,D | (40.50)% | (25.47)% | 23.44% | (8.21)% | 22.19% | (.15)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.63% A | 1.72% | 1.60% | 1.50% | 1.59% | 1.55% |
Expenses net of fee waivers, if any | 1.40%A | 1.40% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40%A | 1.39% | 1.38% | 1.36% | 1.38% | 1.48% |
Net investment income (loss) | .48%A | (.02)% | (.35)% | (.52)% | (.96)% | (1.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,134 | $ 3,970 | $ 7,551 | $ 7,916 | $ 11,397 | $ 8,374 |
Portfolio turnover rate G | 89%A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 | $ 6.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.02) | (.05) | (.06) | (.08) | (.11) |
Net realized and unrealized gain (loss) | (2.71) | (2.29) | 1.74 | (.61) | 1.51 | .08 |
Total from investment operations | (2.70) | (2.31) | 1.69 | (.67) | 1.43 | (.03) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.97 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 |
Total Return B,C,D | (40.48)% | (25.72)% | 23.18% | (8.42)% | 21.90% | (.46)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.94% A | 2.02% | 1.89% | 1.82% | 1.89% | 1.83% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.69% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.64% | 1.64% | 1.61% | 1.61% | 1.72% |
Net investment income (loss) | .24% A | (.27)% | (.60)% | (.77)% | (1.20)% | (1.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,369 | $ 4,635 | $ 8,103 | $ 9,048 | $ 12,085 | $ 15,445 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 | $ 6.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.06) | (.09) | (.10) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (2.61) | (2.21) | 1.69 | (.58) | 1.48 | .08 |
Total from investment operations | (2.62) | (2.27) | 1.60 | (.68) | 1.36 | (.06) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.81 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 |
Total Return B,C,D | (40.75)% | (26.09)% | 22.54% | (8.74)% | 21.18% | (.93)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.36% A | 2.48% | 2.36% | 2.29% | 2.41% | 2.41% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.21% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.13% | 2.11% | 2.13% | 2.23% |
Net investment income (loss) | (.27)% A | (.77)% | (1.10)% | (1.27)% | (1.72)% | (1.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 804 | $ 2,027 | $ 4,572 | $ 6,123 | $ 8,963 | $ 8,498 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.06) | (.09) | (.10) | (.11) | (.14) |
Net realized and unrealized gain (loss) | (2.60) | (2.21) | 1.69 | (.58) | 1.47 | .08 |
Total from investment operations | (2.61) | (2.27) | 1.60 | (.68) | 1.36 | (.06) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.81 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 |
Total Return B,C,D | (40.65)% | (26.12)% | 22.57% | (8.75)% | 21.22% | (.93)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.40% A | 2.47% | 2.34% | 2.26% | 2.31% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.18% | 2.24% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.13% | 2.11% | 2.11% | 2.21% |
Net investment income (loss) | (.27)% A | (.77)% | (1.10)% | (1.27)% | (1.69)% | (1.88)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,660 | $ 3,325 | $ 8,389 | $ 7,009 | $ 11,058 | $ 12,322 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 | $ 6.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .02 | (.01) | (.02) | (.05) | (.06) |
Net realized and unrealized gain (loss) | (2.82) | (2.38) | 1.80 | (.62) | 1.55 | .07 |
Total from investment operations | (2.80) | (2.36) | 1.79 | (.64) | 1.50 | .01 |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 4.14 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 |
Total Return B,C | (40.35)% | (25.38)% | 23.83% | (7.85)% | 22.56% | .15% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 2.34% A | 1.47% | 1.26% | 1.11% | 1.16% | 1.12% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.11% | 1.16% | 1.12% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.13% | 1.07% | 1.08% | 1.09% |
Net investment income (loss) | .74% A | .23% | (.10)% | (.23)% | (.67)% | (.76)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 167 | $ 353 | $ 730 | $ 750 | $ 899 | $ 687 |
Portfolio turnover rate F | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Electronics Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Electronics
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,497 |
Unrealized depreciation | (6,390,434) |
Net unrealized appreciation (depreciation) | $ (6,353,937) |
Cost for federal income tax purposes | $ 13,478,203 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,452,397 and $6,144,134, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 3,482 | $ 112 |
Class T | .25% | .25% | 8,245 | 81 |
Class B | .75% | .25% | 6,552 | 4,922 |
Class C | .75% | .25% | 11,825 | 657 |
| | | $ 30,104 | $ 5,772 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 274 |
Class T | 556 |
Class B* | 2,010 |
Class C* | 74 |
| $ 2,914 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size
Electronics
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 4,282 | .31 |
Class T | 5,892 | .36 |
Class B | 2,000 | .30 |
Class C | 3,644 | .31 |
Institutional Class | 355 | .32 |
| $ 16,173 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $315 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 17,038 |
Class T | 1.65% | 21,238 |
Class B | 2.15% | 7,924 |
Class C | 2.15% | 14,713 |
Institutional Class | 1.15% | 1,335 |
| | $ 62,248 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $110 for the period.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 64,497 | 161,701 | $ 310,871 | $ 1,242,418 |
Shares redeemed | (120,952) | (405,321) | (660,246) | (3,221,767) |
Net increase (decrease) | (56,455) | (243,620) | $ (349,375) | $ (1,979,349) |
Class T | | | | |
Shares sold | 66,917 | 93,832 | $ 320,940 | $ 747,770 |
Shares redeemed | (163,950) | (301,416) | (809,675) | (2,324,905) |
Net increase (decrease) | (97,033) | (207,584) | $ (488,735) | $ (1,577,135) |
Class B | | | | |
Shares sold | 8,581 | 35,607 | $ 39,343 | $ 276,103 |
Shares redeemed | (112,926) | (246,055) | (529,746) | (1,804,727) |
Net increase (decrease) | (104,345) | (210,448) | $ (490,403) | $ (1,528,624) |
Class C | | | | |
Shares sold | 20,155 | 107,517 | $ 109,996 | $ 865,728 |
Shares redeemed | (101,758) | (555,338) | (456,213) | (3,939,431) |
Net increase (decrease) | (81,603) | (447,821) | $ (346,217) | $ (3,073,703) |
Institutional Class | | | | |
Shares sold | 6,447 | 9,123 | $ 33,812 | $ 82,426 |
Shares redeemed | (16,893) | (36,772) | (99,484) | (287,575) |
Net increase (decrease) | (10,446) | (27,649) | $ (65,672) | $ (205,149) |
Electronics
Advisor Energy Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 490.60 | $ 4.51 |
Hypothetical A | | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.43% | | | |
Actual | | $ 1,000.00 | $ 490.00 | $ 5.37 |
Hypothetical A | | $ 1,000.00 | $ 1,018.00 | $ 7.27 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 488.90 | $ 7.28 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 488.70 | $ 7.28 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 491.40 | $ 3.50 |
Hypothetical A | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Noble Corp. | 4.9 | 0.5 |
Occidental Petroleum Corp. | 4.8 | 3.0 |
Southwestern Energy Co. | 4.8 | 2.0 |
Range Resources Corp. | 4.2 | 4.5 |
Cabot Oil & Gas Corp. | 4.0 | 2.8 |
Hess Corp. | 3.7 | 2.6 |
Valero Energy Corp. | 3.3 | 3.7 |
Chevron Corp. | 3.2 | 0.3 |
Petrohawk Energy Corp. | 2.9 | 2.9 |
Anadarko Petroleum Corp. | 2.6 | 0.0 |
| 38.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Oil, Gas &
Consumable Fuels | 69.1% | |
| Energy Equipment & Services | 26.1% | |
| Electrical Equipment | 1.9% | |
| Gas Utilities | 1.0% | |
| Construction & Engineering | 0.7% | |
| All Others* | 1.2% | |
|
As of July 31, 2008 |
| Oil, Gas &
Consumable Fuels | 61.9% | |
| Energy Equipment & Services | 31.2% | |
| Electrical Equipment | 5.0% | |
| Construction & Engineering | 0.6% | |
| Gas Utilities | 0.3% | |
| All Others* | 1.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Energy Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Environmental & Facility Services - 0.0% |
Fuel Tech, Inc. (a) | 16,062 | | $ 160,781 |
CONSTRUCTION & ENGINEERING - 0.7% |
Construction & Engineering - 0.7% |
Jacobs Engineering Group, Inc. (a) | 85,000 | | 3,286,950 |
ELECTRICAL EQUIPMENT - 1.9% |
Electrical Components & Equipment - 1.8% |
Evergreen Solar, Inc. (a) | 242,942 | | 536,902 |
First Solar, Inc. (a) | 17,200 | | 2,456,160 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 435,318 | | 1,157,946 |
Q-Cells SE (a)(d) | 16,793 | | 412,801 |
Renewable Energy Corp. AS (a) | 65,700 | | 662,851 |
Sunpower Corp. Class B (a) | 90,100 | | 2,380,442 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 40,800 | | 383,928 |
| | 7,991,030 |
Heavy Electrical Equipment - 0.1% |
Vestas Wind Systems AS (a) | 12,700 | | 620,368 |
TOTAL ELECTRICAL EQUIPMENT | | 8,611,398 |
ENERGY EQUIPMENT & SERVICES - 26.1% |
Oil & Gas Drilling - 13.6% |
Atwood Oceanics, Inc. (a) | 333,989 | | 5,560,917 |
Helmerich & Payne, Inc. | 319,053 | | 7,165,930 |
Hercules Offshore, Inc. (a) | 214,494 | | 797,918 |
Nabors Industries Ltd. (a) | 771,411 | | 8,446,950 |
Noble Corp. | 837,909 | | 22,749,231 |
Patterson-UTI Energy, Inc. | 172,717 | | 1,651,175 |
Pioneer Drilling Co. (a) | 70,685 | | 351,304 |
Pride International, Inc. (a) | 252,200 | | 4,065,464 |
Transocean Ltd. (a) | 210,864 | | 11,517,392 |
| | 62,306,281 |
Oil & Gas Equipment & Services - 12.5% |
Baker Hughes, Inc. | 36,900 | | 1,229,508 |
BJ Services Co. | 218,274 | | 2,401,014 |
Complete Production Services, Inc. (a) | 26,300 | | 168,583 |
Dresser-Rand Group, Inc. (a) | 25,000 | | 487,000 |
Dril-Quip, Inc. (a) | 84,055 | | 2,059,348 |
Exterran Holdings, Inc. (a) | 77,875 | | 1,725,710 |
FMC Technologies, Inc. (a) | 55,100 | | 1,630,409 |
Fugro NV (Certificaten Van Aandelen) unit | 1,693 | | 46,017 |
Global Industries Ltd. (a) | 377,303 | | 1,301,695 |
Halliburton Co. | 236,160 | | 4,073,760 |
Helix Energy Solutions Group, Inc. (a) | 77,300 | | 398,095 |
National Oilwell Varco, Inc. (a) | 422,757 | | 11,177,695 |
Oceaneering International, Inc. (a) | 59,800 | | 2,060,708 |
Oil States International, Inc. (a) | 63,500 | | 1,162,685 |
Schlumberger Ltd. (NY Shares) | 253,600 | | 10,349,416 |
Smith International, Inc. | 60,500 | | 1,373,350 |
|
| Shares | | Value |
Superior Energy Services, Inc. (a) | 214,784 | | $ 3,346,335 |
Tenaris SA sponsored ADR | 19,100 | | 377,989 |
Tidewater, Inc. | 61,959 | | 2,578,114 |
TSC Offshore Group Ltd. (a) | 1,258,000 | | 83,793 |
Weatherford International Ltd. (a) | 710,364 | | 7,835,315 |
Willbros Group, Inc. (a) | 186,294 | | 1,814,504 |
| | 57,681,043 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 119,987,324 |
GAS UTILITIES - 1.0% |
Gas Utilities - 1.0% |
Equitable Resources, Inc. | 52,100 | | 1,783,383 |
Questar Corp. | 75,800 | | 2,575,684 |
Zhongyu Gas Holdings Ltd. (a) | 6,538,000 | | 377,770 |
| | 4,736,837 |
INDUSTRIAL CONGLOMERATES - 0.5% |
Industrial Conglomerates - 0.5% |
McDermott International, Inc. (a) | 220,147 | | 2,282,924 |
METALS & MINING - 0.1% |
Diversified Metals & Mining - 0.1% |
Teck Cominco Ltd. Class B (sub. vtg.) | 59,900 | | 231,616 |
MULTI-UTILITIES - 0.0% |
Multi-Utilities - 0.0% |
Sempra Energy | 4 | | 175 |
OIL, GAS & CONSUMABLE FUELS - 69.1% |
Coal & Consumable Fuels - 4.5% |
Arch Coal, Inc. | 288,285 | | 4,379,049 |
CONSOL Energy, Inc. | 187,613 | | 5,114,330 |
Foundation Coal Holdings, Inc. | 326,986 | | 5,303,713 |
Massey Energy Co. | 189,044 | | 2,869,688 |
Peabody Energy Corp. | 108,540 | | 2,713,500 |
PT Bumi Resources Tbk | 2,851,800 | | 124,056 |
| | 20,504,336 |
Integrated Oil & Gas - 22.4% |
Chevron Corp. | 206,900 | | 14,590,588 |
ConocoPhillips | 141,300 | | 6,715,989 |
ENI SpA sponsored ADR | 143,200 | | 6,070,248 |
Exxon Mobil Corp. | 73,092 | | 5,590,076 |
Hess Corp. | 304,300 | | 16,922,123 |
Marathon Oil Corp. | 403,600 | | 10,990,028 |
Occidental Petroleum Corp. | 403,800 | | 22,027,290 |
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 205,100 | | 4,442,466 |
Royal Dutch Shell PLC Class A sponsored ADR | 191,000 | | 9,402,930 |
Total SA sponsored ADR | 124,700 | | 6,207,566 |
| | 102,959,304 |
Oil & Gas Exploration & Production - 30.2% |
Anadarko Petroleum Corp. | 328,200 | | 12,058,068 |
Apache Corp. | 15,600 | | 1,170,000 |
Common Stocks - continued |
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - CONTINUED |
Oil & Gas Exploration & Production - continued |
Berry Petroleum Co. Class A | 2,950 | | $ 21,712 |
Cabot Oil & Gas Corp. | 668,725 | | 18,383,250 |
Canadian Natural Resources Ltd. | 52,800 | | 1,890,437 |
Chesapeake Energy Corp. | 44,630 | | 705,600 |
Comstock Resources, Inc. (a) | 211,011 | | 8,045,849 |
Concho Resources, Inc. (a) | 128,398 | | 3,238,198 |
Denbury Resources, Inc. (a) | 422,943 | | 5,176,822 |
Devon Energy Corp. | 21,300 | | 1,312,080 |
Encore Acquisition Co. (a) | 67,362 | | 1,830,899 |
EOG Resources, Inc. | 1,284 | | 87,017 |
EXCO Resources, Inc. (a) | 288,853 | | 2,928,969 |
Forest Oil Corp. (a) | 26,600 | | 399,000 |
Goodrich Petroleum Corp. (a)(d) | 65,000 | | 1,878,500 |
Nexen, Inc. | 121,400 | | 1,768,735 |
Noble Energy, Inc. | 127,000 | | 6,214,110 |
Oil Search Ltd. | 320,172 | | 866,864 |
OPTI Canada, Inc. (a) | 267,800 | | 349,537 |
Penn Virginia Corp. | 81,764 | | 1,684,338 |
Petrobank Energy & Resources Ltd. (a) | 25,100 | | 397,226 |
Petrohawk Energy Corp. (a) | 669,097 | | 13,187,902 |
Petroquest Energy, Inc. (a)(d) | 206,685 | | 1,308,316 |
Plains Exploration & Production Co. (a) | 259,769 | | 5,486,321 |
Quicksilver Resources, Inc. (a) | 464,500 | | 3,218,985 |
Range Resources Corp. | 541,788 | | 19,417,682 |
SandRidge Energy, Inc. (a) | 399,450 | | 2,660,337 |
Southwestern Energy Co. (a) | 692,600 | | 21,920,790 |
Talisman Energy, Inc. | 5,000 | | 47,355 |
Whiting Petroleum Corp. (a) | 33,300 | | 965,700 |
| | 138,620,599 |
Oil & Gas Refining & Marketing - 10.4% |
Frontier Oil Corp. | 750,859 | | 10,722,267 |
Holly Corp. | 145,479 | | 3,399,844 |
Sunoco, Inc. | 210,300 | | 9,741,096 |
|
| Shares | | Value |
Tesoro Corp. | 496,476 | | $ 8,554,281 |
Valero Energy Corp. | 632,463 | | 15,255,008 |
| | 47,672,496 |
Oil & Gas Storage & Transport - 1.6% |
El Paso Corp. | 278,900 | | 2,281,402 |
Williams Companies, Inc. | 372,677 | | 5,273,380 |
| | 7,554,782 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 317,311,517 |
TOTAL COMMON STOCKS (Cost $558,635,744) | 456,609,522 |
Money Market Funds - 1.0% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,310,453 | | 1,310,453 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 3,257,918 | | 3,257,918 |
TOTAL MONEY MARKET FUNDS (Cost $4,568,371) | 4,568,371 |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $563,204,115) | | 461,177,893 |
NET OTHER ASSETS - (0.4)% | | (2,060,547) |
NET ASSETS - 100% | $ 459,117,346 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 54,545 |
Fidelity Securities Lending Cash Central Fund | 160,421 |
Total | $ 214,966 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 461,177,893 | $ 459,725,410 | $ 1,452,483 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 81.5% |
Cayman Islands | 5.4% |
Switzerland | 2.5% |
Netherlands Antilles | 2.3% |
United Kingdom | 2.0% |
France | 1.3% |
Italy | 1.3% |
Canada | 1.1% |
Brazil | 1.0% |
Others (individually less than 1%) | 1.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Energy
Advisor Energy Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $3,059,313) - See accompanying schedule: Unaffiliated issuers (cost $558,635,744) | $ 456,609,522 | |
Fidelity Central Funds (cost $4,568,371) | 4,568,371 | |
Total Investments (cost $563,204,115) | | $ 461,177,893 |
Receivable for investments sold | | 22,901,664 |
Receivable for fund shares sold | | 1,133,025 |
Dividends receivable | | 58,156 |
Distributions receivable from Fidelity Central Funds | | 9,801 |
Prepaid expenses | | 5,549 |
Other receivables | | 5,537 |
Total assets | | 485,291,625 |
| | |
Liabilities | | |
Payable for investments purchased | $ 21,220,695 | |
Payable for fund shares redeemed | 1,026,354 | |
Accrued management fee | 219,902 | |
Distribution fees payable | 200,388 | |
Other affiliated payables | 123,378 | |
Other payables and accrued expenses | 125,644 | |
Collateral on securities loaned, at value | 3,257,918 | |
Total liabilities | | 26,174,279 |
| | |
Net Assets | | $ 459,117,346 |
Net Assets consist of: | | |
Paid in capital | | $ 765,140,543 |
Accumulated net investment loss | | (1,724,407) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (202,177,454) |
Net unrealized appreciation (depreciation) on investments | | (102,121,336) |
Net Assets | | $ 459,117,346 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($162,293,778 ÷ 7,833,991 shares) | | $ 20.72 |
| | |
Maximum offering price per share (100/94.25 of $20.72) | | $ 21.98 |
Class T:
Net Asset Value and redemption price per share ($181,853,620 ÷ 8,553,686 shares) | | $ 21.26 |
| | |
Maximum offering price per share (100/96.50 of $21.26) | | $ 22.03 |
Class B:
Net Asset Value and offering price per share ($40,713,455 ÷ 2,065,039 shares)A | | $ 19.72 |
| | |
Class C:
Net Asset Value and offering price per share ($64,941,508 ÷ 3,271,405 shares)A | | $ 19.85 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($9,314,985 ÷ 433,335 shares) | | $ 21.50 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,539,652 |
Interest | | 16 |
Income from Fidelity Central Funds (including $160,421 from security lending) | | 214,966 |
Total income | | 2,754,634 |
| | |
Expenses | | |
Management fee | $ 1,728,673 | |
Transfer agent fees | 869,054 | |
Distribution fees | 1,604,617 | |
Accounting and security lending fees | 113,994 | |
Custodian fees and expenses | 22,677 | |
Independent trustees' compensation | 1,496 | |
Registration fees | 83,859 | |
Audit | 27,861 | |
Legal | 3,130 | |
Interest | 2,024 | |
Miscellaneous | 30,604 | |
Total expenses before reductions | 4,487,989 | |
Expense reductions | (9,743) | 4,478,246 |
Net investment income (loss) | | (1,723,612) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (199,447,877) | |
Foreign currency transactions | (107,380) | |
Total net realized gain (loss) | | (199,555,257) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (303,699,869) | |
Assets and liabilities in foreign currencies | (9) | |
Total change in net unrealized appreciation (depreciation) | | (303,699,878) |
Net gain (loss) | | (503,255,135) |
Net increase (decrease) in net assets resulting from operations | | $ (504,978,747) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (1,723,612) | $ (6,384,696) |
Net realized gain (loss) | (199,555,257) | 190,336,922 |
Change in net unrealized appreciation (depreciation) | (303,699,878) | (81,040,623) |
Net increase (decrease) in net assets resulting from operations | (504,978,747) | 102,911,603 |
Distributions to shareholders from net realized gain | (137,594,817) | (64,657,747) |
Share transactions - net increase (decrease) | 61,420,306 | 82,916,045 |
Redemption fees | 40,689 | 43,632 |
Total increase (decrease) in net assets | (581,112,569) | 121,213,533 |
| | |
Net Assets | | |
Beginning of period | 1,040,229,915 | 919,016,382 |
End of period (including accumulated net investment loss of $1,724,407 and accumulated net investment loss of $795, respectively) | $ 459,117,346 | $ 1,040,229,915 |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 | $ 21.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.17) | (.02) H | (.04) | .06 | .07 |
Net realized and unrealized gain (loss) | (22.58) | 5.59 | 8.42 | 12.30 | 12.21 | 7.50 |
Total from investment operations | (22.62) | 5.42 | 8.40 | 12.26 | 12.27 | 7.57 |
Distributions from net investment income | - | - | - | - | (.06) | (.10) |
Distributions from net realized gain | (6.90) | (3.46) | (6.51) | (6.81) | (.41) | - |
Total distributions | (6.90) | (3.46) | (6.51) | (6.81) | (.47) | (.10) |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 20.72 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 |
Total Return B,C,D | (50.94)% | 11.52% | 22.08% | 32.90% | 42.69% | 35.08% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.20% A | 1.14% | 1.19% | 1.21% | 1.25% | 1.30% |
Expenses net of fee waivers, if any | 1.20% A | 1.14% | 1.19% | 1.21% | 1.25% | 1.30% |
Expenses net of all reductions | 1.19% A | 1.14% | 1.19% | 1.17% | 1.19% | 1.29% |
Net investment income (loss) | (.30)% A | (.32)% | (.05)% H | (.09)% | .19% | .28% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 162,294 | $ 355,200 | $ 268,108 | $ 204,391 | $ 90,342 | $ 44,315 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.17)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 | $ 21.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | (.29) | (.11) H | (.13) | - J | .03 |
Net realized and unrealized gain (loss) | (23.16) | 5.72 | 8.61 | 12.49 | 12.37 | 7.60 |
Total from investment operations | (23.24) | 5.43 | 8.50 | 12.36 | 12.37 | 7.63 |
Distributions from net investment income | - | - | - | - | (.03) | (.08) |
Distributions from net realized gain | (6.90) | (3.29) | (6.42) | (6.65) | (.41) | - |
Total distributions | (6.90) | (3.29) | (6.42) | (6.65) | (.44) | (.08) |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 21.26 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 |
Total Return B,C,D | (51.00)% | 11.27% | 21.84% | 32.60% | 42.41% | 34.82% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.43% A | 1.36% | 1.40% | 1.42% | 1.44% | 1.48% |
Expenses net of fee waivers, if any | 1.43% A | 1.36% | 1.40% | 1.42% | 1.44% | 1.48% |
Expenses net of all reductions | 1.42% A | 1.35% | 1.39% | 1.38% | 1.39% | 1.47% |
Net investment income (loss) | (.53)% A | (.54)% | (.26)% H | (.29)% | (.01)% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 181,854 | $ 407,784 | $ 382,222 | $ 362,272 | $ 280,820 | $ 201,187 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.37)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 | $ 21.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.56) | (.34) H | (.35) | (.18) | (.11) |
Net realized and unrealized gain (loss) | (21.59) | 5.41 | 8.17 | 11.98 | 11.93 | 7.37 |
Total from investment operations | (21.73) | 4.85 | 7.83 | 11.63 | 11.75 | 7.26 |
Distributions from net realized gain | (6.90) | (3.14) | (6.29) | (6.43) | (.41) | - |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 19.72 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 |
Total Return B,C,D | (51.11)% | 10.62% | 21.18% | 31.86% | 41.66% | 34.12% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.94% A | 1.93% | 1.96% | 1.96% | 1.98% | 2.02% |
Expenses net of fee waivers, if any | 1.94% A | 1.93% | 1.96% | 1.96% | 1.98% | 2.02% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.95% | 1.92% | 1.93% | 2.01% |
Net investment income (loss) | (1.04)% A | (1.11)% | (.82)% H | (.84)% | (.55)% | (.44)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 40,713 | $ 98,602 | $ 116,487 | $ 130,973 | $ 102,003 | $ 68,347 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 | $ 21.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.54) | (.32) H | (.34) | (.17) | (.10) |
Net realized and unrealized gain (loss) | (21.74) | 5.45 | 8.20 | 12.06 | 11.99 | 7.40 |
Total from investment operations | (21.88) | 4.91 | 7.88 | 11.72 | 11.82 | 7.30 |
Distributions from net realized gain | (6.90) | (3.16) | (6.33) | (6.50) | (.41) | - |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 19.85 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 |
Total Return B,C,D | (51.13)% | 10.71% | 21.22% | 31.96% | 41.70% | 34.14% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.94% A | 1.87% | 1.91% | 1.92% | 1.94% | 1.99% |
Expenses net of fee waivers, if any | 1.94% A | 1.87% | 1.91% | 1.92% | 1.94% | 1.99% |
Expenses net of all reductions | 1.93% A | 1.87% | 1.91% | 1.88% | 1.89% | 1.97% |
Net investment income (loss) | (1.04)% A | (1.05)% | (.77)% H | (.79)% | (.51)% | (.41)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 64,942 | $ 156,393 | $ 135,072 | $ 125,424 | $ 72,832 | $ 37,206 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 | $ 22.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - I | (.02) | .11 G | .12 | .19 | .18 |
Net realized and unrealized gain (loss) | (23.36) | 5.74 | 8.67 | 12.56 | 12.44 | 7.62 |
Total from investment operations | (23.36) | 5.72 | 8.78 | 12.68 | 12.63 | 7.80 |
Distributions from net investment income | - | - | - | - | (.11) | (.19) |
Distributions from net realized gain | (6.90) | (3.64) | (6.58) | (6.97) | (.41) | - |
Total distributions | (6.90) | (3.64) | (6.58) | (6.97) | (.52) | (.19) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | .01 | - I |
Net asset value, end of period | $ 21.50 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 |
Total Return B,C | (50.86)% | 11.83% | 22.47% | 33.35% | 43.21% | 35.60% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .93% A | .85% | .88% | .87% | .89% | .90% |
Expenses net of fee waivers, if any | .93% A | .85% | .88% | .87% | .89% | .90% |
Expenses net of all reductions | .93% A | .85% | .88% | .83% | .84% | .89% |
Net investment income (loss) | (.03)% A | (.03)% | .25% G | .26% | .54% | .68% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,315 | $ 22,250 | $ 17,127 | $ 19,553 | $ 9,433 | $ 4,206 |
Portfolio turnover rate F | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .14%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Energy Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 54,580,556 |
Unrealized depreciation | (178,075,862) |
Net unrealized appreciation (depreciation) | $ (123,495,306) |
Cost for federal income tax purposes | $ 584,673,199 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Energy
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $577,989,815 and $652,872,430, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 264,262 | $ 7,576 |
Class T | .25% | .25% | 608,172 | 4,054 |
Class B | .75% | .25% | 283,864 | 212,897 |
Class C | .75% | .25% | 448,319 | 77,580 |
| | | $ 1,604,617 | $ 302,107 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 76,082 |
Class T | 17,211 |
Class B* | 84,290 |
Class C* | 18,616 |
| $ 196,199 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 308,914 | .29 |
Class T | 333,001 | .27 |
Class B | 82,754 | .29 |
Class C | 127,032 | .28 |
Institutional Class | 17,353 | .27 |
| $ 869,054 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,018 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 10,970,000 | 2.87% | $ 875 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $843 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,162,000. The weighted average interest rate was 3.36%. The interest expense amounted to $1,149 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
Energy
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $9,200 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $535. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Institutional Class | $ 8 |
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.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
12. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ 46,996,956 | $ 20,341,408 |
Class T | 53,170,678 | 25,677,389 |
Class B | 13,492,639 | 7,474,589 |
Class C | 21,034,355 | 9,397,317 |
Institutional Class | 2,900,189 | 1,767,044 |
Total | $ 137,594,817 | $ 64,657,747 |
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,641,683 | 3,202,103 | $ 42,511,379 | $ 169,499,687 |
Reinvestment of distributions | 1,158,179 | 375,188 | 42,134,538 | 18,473,322 |
Shares redeemed | (2,036,595) | (2,059,529) | (58,885,655) | (107,985,396) |
Net increase (decrease) | 763,267 | 1,517,762 | $ 25,760,262 | $ 79,987,613 |
Class T | | | | |
Shares sold | 1,029,424 | 1,610,611 | $ 27,029,939 | $ 87,007,613 |
Reinvestment of distributions | 1,332,408 | 478,816 | 49,792,078 | 24,107,280 |
Shares redeemed | (1,742,154) | (1,914,780) | (49,500,182) | (102,045,896) |
Net increase (decrease) | 619,678 | 174,647 | $ 27,321,835 | $ 9,068,997 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
13. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class B | | | | |
Shares sold | 258,351 | 504,843 | $ 6,675,369 | $ 25,728,046 |
Reinvestment of distributions | 339,480 | 135,516 | 11,786,728 | 6,434,106 |
Shares redeemed | (572,086) | (1,098,735) | (15,560,668) | (55,433,977) |
Net increase (decrease) | 25,745 | (458,376) | $ 2,901,429 | $ (23,271,825) |
Class C | | | | |
Shares sold | 521,317 | 993,512 | $ 13,550,834 | $ 51,238,082 |
Reinvestment of distributions | 507,053 | 161,795 | 17,726,560 | 7,736,565 |
Shares redeemed | (973,025) | (820,290) | (26,587,387) | (41,459,377) |
Net increase (decrease) | 55,345 | 335,017 | $ 4,690,007 | $ 17,515,270 |
Institutional Class | | | | |
Shares sold | 139,930 | 839,635 | $ 4,252,222 | $ 44,656,187 |
Reinvestment of distributions | 54,219 | 25,669 | 2,044,586 | 1,318,208 |
Shares redeemed | (190,656) | (780,213) | (5,550,035) | (46,358,405) |
Net increase (decrease) | 3,493 | 85,091 | $ 746,773 | $ (384,010) |
Energy
Advisor Financial Services Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.27% | | | |
Actual | | $ 1,000.00 | $ 539.90 | $ 4.93 |
HypotheticalA | | $ 1,000.00 | $ 1,018.80 | $ 6.46 |
Class T | 1.53% | | | |
Actual | | $ 1,000.00 | $ 539.40 | $ 5.94 |
HypotheticalA | | $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Class B | 2.02% | | | |
Actual | | $ 1,000.00 | $ 538.40 | $ 7.83 |
HypotheticalA | | $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Class C | 2.02% | | | |
Actual | | $ 1,000.00 | $ 538.00 | $ 7.83 |
HypotheticalA | | $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Institutional Class | 1.02% | | | |
Actual | | $ 1,000.00 | $ 540.70 | $ 3.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.06 | $ 5.19 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
JPMorgan Chase & Co. | 5.7 | 5.8 |
Goldman Sachs Group, Inc. | 5.1 | 2.1 |
Bank of America Corp. | 4.7 | 7.8 |
Morgan Stanley | 4.4 | 1.7 |
Fidelity National Financial, Inc. Class A | 3.5 | 0.0 |
Wells Fargo & Co. | 3.5 | 5.2 |
EPIQ Systems, Inc. | 3.3 | 0.0 |
Credit Suisse Group sponsored ADR | 3.2 | 0.0 |
Citigroup, Inc. | 3.1 | 2.6 |
Everest Re Group Ltd. | 3.1 | 2.1 |
| 39.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Capital Markets | 27.3% | |
| Insurance | 23.6% | |
| Diversified
Financial Services | 17.5% | |
| Commercial Banks | 9.5% | |
| It Services | 4.9% | |
| All Others* | 17.2% | |
As of July 31, 2008 |
| Insurance | 24.4% | |
| Diversified
Financial Services | 19.7% | |
| Capital Markets | 18.4% | |
| Commercial Banks | 15.7% | |
| Real Estate
Investment Trusts | 6.1% | |
| All Others* | 15.7% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Financial Services Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% |
| Shares | | Value |
AUTOMOBILES - 0.7% |
Automobile Manufacturers - 0.7% |
Ford Motor Co. (a)(d) | 418,300 | | $ 782,220 |
CAPITAL MARKETS - 27.3% |
Asset Management & Custody Banks - 9.0% |
Bank of New York Mellon Corp. | 78,100 | | 2,010,294 |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 8,961 | | 215,932 |
EFG International | 53,680 | | 652,546 |
Fortress Investment Group LLC | 21,800 | | 32,700 |
Franklin Resources, Inc. | 38,705 | | 1,874,096 |
GLG Partners, Inc. | 27,700 | | 56,785 |
Janus Capital Group, Inc. | 57,100 | | 299,775 |
Julius Baer Holding Ltd. | 44,383 | | 1,323,187 |
KKR Private Equity Investors, LP (a) | 10,600 | | 24,804 |
KKR Private Equity Investors, LP Restricted Depositary Units (a)(e) | 17,200 | | 40,248 |
Legg Mason, Inc. (d) | 117,757 | | 1,891,177 |
State Street Corp. | 46,882 | | 1,090,944 |
T. Rowe Price Group, Inc. | 16,100 | | 444,038 |
The Blackstone Group LP | 20,400 | | 92,004 |
| | 10,048,530 |
Diversified Capital Markets - 5.4% |
Credit Suisse Group sponsored ADR (d) | 140,033 | | 3,569,441 |
UBS AG (NY Shares) | 193,200 | | 2,405,340 |
| | 5,974,781 |
Investment Banking & Brokerage - 12.9% |
Charles Schwab Corp. | 67,100 | | 911,889 |
Evercore Partners, Inc. Class A | 52,000 | | 583,960 |
GFI Group, Inc. | 667,378 | | 2,095,567 |
Goldman Sachs Group, Inc. | 69,500 | | 5,610,735 |
Lazard Ltd. Class A | 9,800 | | 259,700 |
Morgan Stanley | 240,100 | | 4,857,223 |
| | 14,319,074 |
TOTAL CAPITAL MARKETS | | 30,342,385 |
COMMERCIAL BANKS - 9.3% |
Diversified Banks - 4.6% |
Banco Latin Americano de Exporaciones SA (BLADEX) Series E | 14,000 | | 146,860 |
ICICI Bank Ltd. sponsored ADR (d) | 5,500 | | 90,640 |
U.S. Bancorp, Delaware | 69,100 | | 1,025,444 |
Wells Fargo & Co. | 203,979 | | 3,855,203 |
| | 5,118,147 |
Regional Banks - 4.7% |
Associated Banc-Corp. (d) | 72,200 | | 1,129,930 |
Boston Private Financial Holdings, Inc. | 49,400 | | 232,674 |
Cathay General Bancorp (d) | 22,088 | | 280,518 |
Center Financial Corp., California | 6,900 | | 33,120 |
Huntington Bancshares, Inc. | 69,500 | | 200,160 |
KeyCorp | 82,000 | | 596,960 |
M&T Bank Corp. (d) | 14,700 | | 571,977 |
|
| Shares | | Value |
PNC Financial Services Group, Inc. | 49,881 | | $ 1,622,130 |
UCBH Holdings, Inc. | 10,900 | | 25,397 |
Wintrust Financial Corp. | 31,900 | | 426,503 |
Zions Bancorp (d) | 8,100 | | 120,852 |
| | 5,240,221 |
TOTAL COMMERCIAL BANKS | | 10,358,368 |
CONSUMER FINANCE - 3.4% |
Consumer Finance - 3.4% |
American Express Co. | 37,800 | | 632,394 |
Capital One Financial Corp. | 31,630 | | 501,019 |
Discover Financial Services | 51,800 | | 370,370 |
Dollar Financial Corp. (a) | 33,362 | | 261,892 |
Promise Co. Ltd. (d) | 34,150 | | 626,802 |
SLM Corp. (a) | 122,300 | | 1,400,335 |
| | 3,792,812 |
DIVERSIFIED FINANCIAL SERVICES - 17.4% |
Other Diversifed Financial Services - 13.5% |
Bank of America Corp. | 800,341 | | 5,266,244 |
Citigroup, Inc. (d) | 964,162 | | 3,422,775 |
JPMorgan Chase & Co. (d) | 247,794 | | 6,321,224 |
| | 15,010,243 |
Specialized Finance - 3.9% |
BM&F BOVESPA SA | 908,000 | | 2,637,897 |
CIT Group, Inc. (d) | 121,100 | | 337,869 |
CME Group, Inc. | 4,600 | | 799,986 |
Deutsche Boerse AG | 7,400 | | 374,232 |
JSE Ltd. | 30,200 | | 116,939 |
KKR Financial Holdings LLC | 52,200 | | 74,124 |
| | 4,341,047 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 19,351,290 |
INSURANCE - 23.6% |
Insurance Brokers - 0.3% |
National Financial Partners Corp. | 28,600 | | 73,502 |
Willis Group Holdings Ltd. | 9,600 | | 237,696 |
| | 311,198 |
Life & Health Insurance - 3.4% |
AFLAC, Inc. | 29,300 | | 680,053 |
MetLife, Inc. | 75,700 | | 2,174,861 |
Prudential Financial, Inc. | 37,600 | | 968,200 |
| | 3,823,114 |
Multi-Line Insurance - 0.5% |
American International Group, Inc. | 20,700 | | 26,496 |
Assurant, Inc. | 10,900 | | 287,760 |
Hartford Financial Services Group, Inc. | 16,200 | | 213,192 |
| | 527,448 |
Property & Casualty Insurance - 12.2% |
ACE Ltd. | 62,100 | | 2,711,286 |
AMBAC Financial Group, Inc. (d) | 153,400 | | 174,876 |
Common Stocks - continued |
| Shares | | Value |
INSURANCE - CONTINUED |
Property & Casualty Insurance - continued |
Argo Group International Holdings, Ltd. (a) | 25,211 | | $ 784,314 |
Aspen Insurance Holdings Ltd. | 100 | | 2,210 |
Axis Capital Holdings Ltd. | 10,600 | | 257,156 |
Berkshire Hathaway, Inc. Class A (a) | 16 | | 1,432,032 |
Fidelity National Financial, Inc. Class A | 265,900 | | 3,887,458 |
LandAmerica Financial Group, Inc. | 7,200 | | 407 |
MBIA, Inc. (d) | 18,900 | | 72,954 |
The First American Corp. | 126,950 | | 2,772,588 |
The Travelers Companies, Inc. | 28,500 | | 1,101,240 |
United America Indemnity Ltd. Class A (a) | 19,000 | | 201,020 |
XL Capital Ltd. Class A | 39,100 | | 113,390 |
| | 13,510,931 |
Reinsurance - 7.2% |
Everest Re Group Ltd. | 54,100 | | 3,408,300 |
IPC Holdings Ltd. | 29,266 | | 750,966 |
Max Capital Group Ltd. | 42,576 | | 724,218 |
Montpelier Re Holdings Ltd. | 9,000 | | 127,260 |
Platinum Underwriters Holdings Ltd. | 41,400 | | 1,151,334 |
RenaissanceRe Holdings Ltd. | 30,400 | | 1,358,576 |
Validus Holdings Ltd. | 23,100 | | 527,142 |
| | 8,047,796 |
TOTAL INSURANCE | | 26,220,487 |
INTERNET SOFTWARE & SERVICES - 1.8% |
Internet Software & Services - 1.8% |
China Finance Online Co. Ltd. ADR (a)(d) | 247,115 | | 1,989,276 |
IT SERVICES - 4.9% |
Data Processing & Outsourced Services - 4.9% |
CyberSource Corp. (a) | 257,499 | | 3,071,963 |
MasterCard, Inc. Class A | 5,700 | | 773,946 |
MoneyGram International, Inc. | 140,475 | | 217,736 |
Visa, Inc. | 27,600 | | 1,362,060 |
| | 5,425,705 |
PROFESSIONAL SERVICES - 1.6% |
Research & Consulting Services - 1.6% |
First Advantage Corp. Class A (a) | 139,250 | | 1,774,045 |
REAL ESTATE INVESTMENT TRUSTS - 3.2% |
Mortgage REITs - 1.1% |
Annaly Capital Management, Inc. | 80,300 | | 1,215,742 |
Chimera Investment Corp. | 17,100 | | 56,430 |
| | 1,272,172 |
|
| Shares | | Value |
Residential REITs - 1.4% |
Equity Lifestyle Properties, Inc. | 26,900 | | $ 1,014,937 |
UDR, Inc. | 44,200 | | 518,466 |
| | 1,533,403 |
Retail REITs - 0.7% |
CBL & Associates Properties, Inc. (d) | 11,200 | | 45,584 |
Developers Diversified Realty Corp. | 34,500 | | 165,600 |
Simon Property Group, Inc. | 13,600 | | 584,528 |
| | 795,712 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 3,601,287 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.0% |
Diversified Real Estate Activities - 0.7% |
Meruelo Maddux Properties, Inc. (a) | 45,200 | | 18,532 |
Mitsubishi Estate Co. Ltd. | 54,000 | | 708,163 |
| | 726,695 |
Real Estate Development - 0.3% |
Xinyuan Real Estate Co. Ltd. ADR (a) | 109,725 | | 371,968 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 1,098,663 |
SOFTWARE - 3.3% |
Application Software - 3.3% |
EPIQ Systems, Inc. (a) | 210,015 | | 3,721,466 |
SPECIALTY RETAIL - 0.1% |
Home Improvement Retail - 0.1% |
Home Depot, Inc. | 6,600 | | 142,098 |
THRIFTS & MORTGAGE FINANCE - 1.0% |
Thrifts & Mortgage Finance - 1.0% |
FirstFed Financial Corp. (a)(d) | 15,100 | | 12,835 |
Hudson City Bancorp, Inc. | 73,775 | | 855,790 |
IndyMac Bancorp, Inc. (a) | 33,000 | | 3,630 |
Radian Group, Inc. | 76,400 | | 246,008 |
Washington Mutual, Inc. | 121,371 | | 4,855 |
| | 1,123,118 |
TOTAL COMMON STOCKS (Cost $154,126,996) | 109,723,220 |
Convertible Preferred Stocks - 0.3% |
| | | |
COMMERCIAL BANKS - 0.2% |
Regional Banks - 0.2% |
Huntington Bancshares, Inc. 8.50% | 500 | | 219,220 |
DIVERSIFIED FINANCIAL SERVICES - 0.1% |
Specialized Finance - 0.1% |
CIT Group, Inc. Series C, 8.75% | 2,000 | | 38,200 |
Convertible Preferred Stocks - continued |
| Shares | | Value |
INSURANCE - 0.0% |
Multi-Line Insurance - 0.0% |
American International Group, Inc. Series A, 8.50% | 2,900 | | $ 25,694 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $817,500) | 283,114 |
Money Market Funds - 14.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,013,196 | | 1,013,196 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 15,111,848 | | 15,111,848 |
TOTAL MONEY MARKET FUNDS (Cost $16,125,044) | 16,125,044 |
Cash Equivalents - 0.0% |
| Maturity Amount | | |
Investments in repurchase agreements in a joint trading account at 0.24%, dated 1/30/09 due 2/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $38,000) | $ 38,001 | | 38,000 |
TOTAL INVESTMENT PORTFOLIO - 113.4% (Cost $171,107,540) | | 126,169,378 |
NET OTHER ASSETS - (13.4)% | | (14,864,663) |
NET ASSETS - 100% | $ 111,304,715 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $40,248 or 0.0% of net assets. |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$38,000 due 2/02/09 at 0.24% |
J.P. Morgan Securities, Inc. | $ 28,137 |
UBS Securities LLC | 9,863 |
| $ 38,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 71,548 |
Fidelity Securities Lending Cash Central Fund | 200,929 |
Total | $ 272,477 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 126,169,378 | $ 124,615,580 | $ 1,553,798 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 75.1% |
Switzerland | 9.8% |
Bermuda | 8.5% |
Brazil | 2.4% |
Hong Kong | 1.8% |
Japan | 1.3% |
Others (individually less than 1%) | 1.1% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $26,184,414 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Financial Services Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $14,185,933 and repurchase agreements of $38,000) - - See accompanying schedule: Unaffiliated issuers (cost $154,982,496) | $ 110,044,334 | |
Fidelity Central Funds (cost $16,125,044) | 16,125,044 | |
Total Investments (cost $171,107,540) | | $ 126,169,378 |
Cash | | 17,221 |
Foreign currency held at value (cost $3) | | 3 |
Receivable for investments sold | | 532,629 |
Receivable for fund shares sold | | 239,125 |
Dividends receivable | | 224,475 |
Distributions receivable from Fidelity Central Funds | | 29,226 |
Prepaid expenses | | 1,719 |
Other receivables | | 3,883 |
Total assets | | 127,217,659 |
| | |
Liabilities | | |
Payable for investments purchased | $ 400,547 | |
Payable for fund shares redeemed | 224,508 | |
Accrued management fee | 57,200 | |
Distribution fees payable | 52,166 | |
Other affiliated payables | 36,557 | |
Other payables and accrued expenses | 30,118 | |
Collateral on securities loaned, at value | 15,111,848 | |
Total liabilities | | 15,912,944 |
| | |
Net Assets | | $ 111,304,715 |
Net Assets consist of: | | |
Paid in capital | | $ 252,332,029 |
Undistributed net investment income | | 460,122 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (96,548,223) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (44,939,213) |
Net Assets | | $ 111,304,715 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($50,254,466 ÷ 7,238,786 shares) | | $ 6.94 |
| | |
Maximum offering price per share (100/94.25 of $6.94) | | $ 7.36 |
Class T:
Net Asset Value and redemption price per share ($27,045,095 ÷ 3,896,194 shares) | | $ 6.94 |
| | |
Maximum offering price per share (100/96.50 of $6.94) | | $ 7.19 |
Class B:
Net Asset Value and offering price per share ($9,805,219 ÷ 1,437,993 shares)A | | $ 6.82 |
| | |
Class C:
Net Asset Value and offering price per share ($21,573,880 ÷ 3,190,979 shares)A | | $ 6.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,626,055 ÷ 372,489 shares) | | $ 7.05 |
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.
Financial Services
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,860,667 |
Interest | | 2,846 |
Income from Fidelity Central Funds (including $200,929 from security lending) | | 272,477 |
Total income | | 3,135,990 |
| | |
Expenses | | |
Management fee | $ 446,076 | |
Transfer agent fees | 236,013 | |
Distribution fees | 410,047 | |
Accounting and security lending fees | 33,407 | |
Custodian fees and expenses | 14,143 | |
Independent trustees' compensation | 471 | |
Registration fees | 42,595 | |
Audit | 24,390 | |
Legal | 1,185 | |
Miscellaneous | 13,525 | |
Total expenses before reductions | 1,221,852 | |
Expense reductions | (3,969) | 1,217,883 |
Net investment income (loss) | | 1,918,107 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (66,286,377) | |
Investment not meeting investment restrictions | (1,265) | |
Foreign currency transactions | (6,119) | |
Payment from investment advisor for loss on investment not meeting investment restrictions | 1,265 | |
Total net realized gain (loss) | | (66,292,496) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (32,398,814) | |
Assets and liabilities in foreign currencies | (1,374) | |
Total change in net unrealized appreciation (depreciation) | | (32,400,188) |
Net gain (loss) | | (98,692,684) |
Net increase (decrease) in net assets resulting from operations | | $ (96,774,577) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,918,107 | $ 3,920,838 |
Net realized gain (loss) | (66,292,496) | (25,372,931) |
Change in net unrealized appreciation (depreciation) | (32,400,188) | (75,621,214) |
Net increase (decrease) in net assets resulting from operations | (96,774,577) | (97,073,307) |
Distributions to shareholders from net investment income | (3,219,812) | (2,830,191) |
Distributions to shareholders from net realized gain | (320,527) | (22,361,262) |
Total distributions | (3,540,339) | (25,191,453) |
Share transactions - net increase (decrease) | 4,030,212 | (845,081) |
Redemption fees | 9,988 | 10,552 |
Total increase (decrease) in net assets | (96,274,716) | (123,099,289) |
| | |
Net Assets | | |
Beginning of period | 207,579,431 | 330,678,720 |
End of period (including undistributed net investment income of $460,122 and undistributed net investment income of $2,125,111, respectively) | $ 111,304,715 | $ 207,579,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 | $ 19.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .30 | .23 | .20 | .19 | .14 |
Net realized and unrealized gain (loss) | (6.11) | (6.41) | .92 | 2.02 | 2.48 | 2.20 |
Total from investment operations | (5.98) | (6.11) | 1.15 | 2.22 | 2.67 | 2.34 |
Distributions from net investment income | (.24) | (.27) | (.22) | (.26) | (.07) | (.15) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.26) | (1.73) | (3.47) J | (1.89) | (1.83) | (.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.94 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 |
Total Return B, C, D | (46.01)% | (31.67)% | 4.54% | 10.32% | 12.60% | 11.76% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.27% A | 1.21% | 1.23% | 1.25% | 1.26% | 1.27% |
Expenses net of fee waivers, if any | 1.27% A | 1.21% | 1.23% | 1.25% | 1.26% | 1.27% |
Expenses net of all reductions | 1.27% A | 1.21% | 1.22% | 1.23% | 1.23% | 1.25% |
Net investment income (loss) | 2.69% A | 1.75% | 1.01% | .87% | .88% | .63% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 50,254 | $ 90,037 | $ 106,722 | $ 85,356 | $ 68,012 | $ 58,222 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.47 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $3.250 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 | $ 19.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .26 | .18 | .15 | .14 | .09 |
Net realized and unrealized gain (loss) | (6.10) | (6.41) | .91 | 2.02 | 2.47 | 2.19 |
Total from investment operations | (5.98) | (6.15) | 1.09 | 2.17 | 2.61 | 2.28 |
Distributions from net investment income | (.20) | (.19) | (.16) | (.15) | (.05) | (.11) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.22) | (1.65) | (3.41) J | (1.78) | (1.81) | (.11) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.94 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 |
Total Return B, C, D | (46.06)% | (31.85)% | 4.25% | 10.11% | 12.37% | 11.49% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.53% A | 1.47% | 1.46% | 1.47% | 1.48% | 1.50% |
Expenses net of fee waivers, if any | 1.53% A | 1.47% | 1.46% | 1.47% | 1.48% | 1.50% |
Expenses net of all reductions | 1.52% A | 1.47% | 1.46% | 1.46% | 1.46% | 1.48% |
Net investment income (loss) | 2.43% A | 1.50% | .77% | .65% | .66% | .41% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 27,045 | $ 53,526 | $ 95,426 | $ 113,344 | $ 128,388 | $ 144,887 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.41 per share is comprised of distributions from net investment income of $.156 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 | $ 19.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .18 | .06 | .03 | .03 | (.02) |
Net realized and unrealized gain (loss) | (5.98) | (6.29) | .89 | 1.97 | 2.41 | 2.16 |
Total from investment operations | (5.89) | (6.11) | .95 | 2.00 | 2.44 | 2.14 |
Distributions from net investment income | (.12) | (.04) | (.02) | (.01) | - | (.02) |
Distributions from net realized gain | (.02) | (1.44) | (3.25) | (1.57) | (1.76) | - |
Total distributions | (.14) | (1.48) | (3.26) J | (1.58) | (1.76) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.82 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 |
Total Return B, C, D | (46.16)% | (32.21)% | 3.71% | 9.52% | 11.78% | 10.96% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.02% A | 1.96% | 1.98% | 1.99% | 2.00% | 2.02% |
Expenses net of fee waivers, if any | 2.02% A | 1.96% | 1.98% | 1.99% | 2.00% | 2.02% |
Expenses net of all reductions | 2.01% A | 1.96% | 1.98% | 1.98% | 1.98% | 2.00% |
Net investment income (loss) | 1.94% A | 1.01% | .25% | .13% | .14% | (.11)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,805 | $ 20,420 | $ 64,837 | $ 113,652 | $ 145,046 | $ 179,873 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.26 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $3.247 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 | $ 19.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .17 | .06 | .04 | .04 | (.01) |
Net realized and unrealized gain (loss) | (5.94) | (6.24) | .90 | 1.98 | 2.42 | 2.15 |
Total from investment operations | (5.85) | (6.07) | .96 | 2.02 | 2.46 | 2.14 |
Distributions from net investment income | (.15) | (.09) | (.05) | (.02) | (.01) | (.02) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.60) | (1.76) | - |
Total distributions | (.17) | (1.55) | (3.30) J | (1.62) | (1.77) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.76 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 |
Total Return B, C, D | (46.20)% | (32.18)% | 3.75% | 9.58% | 11.88% | 10.96% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.02% A | 1.96% | 1.94% | 1.94% | 1.95% | 1.97% |
Expenses net of fee waivers, if any | 2.02% A | 1.96% | 1.94% | 1.94% | 1.95% | 1.97% |
Expenses net of all reductions | 2.02% A | 1.96% | 1.94% | 1.93% | 1.92% | 1.95% |
Net investment income (loss) | 1.94% A | 1.01% | .29% | .18% | .19% | (.06)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 21,574 | $ 37,777 | $ 55,219 | $ 62,469 | $ 72,181 | $ 86,199 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.30 per share is comprised of distributions from net investment income of $.049 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 | $ 20.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .15 | .36 | .31 | .29 | .29 | .23 |
Net realized and unrealized gain (loss) | (6.21) | (6.51) | .93 | 2.05 | 2.50 | 2.21 |
Total from investment operations | (6.06) | (6.15) | 1.24 | 2.34 | 2.79 | 2.44 |
Distributions from net investment income | (.25) | (.33) | (.30) | (.37) | (.11) | (.24) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.27) | (1.79) | (3.55) I | (2.00) | (1.87) | (.24) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 7.05 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 |
Total Return B, C | (45.93)% | (31.47)% | 4.88% | 10.78% | 13.06% | 12.18% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | 1.02% A | .93% | .89% | .86% | .86% | .88% |
Expenses net of fee waivers, if any | 1.02% A | .93% | .89% | .86% | .86% | .88% |
Expenses net of all reductions | 1.01% A | .92% | .88% | .85% | .84% | .85% |
Net investment income (loss) | 2.94% A | 2.04% | 1.34% | 1.26% | 1.28% | 1.03% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,626 | $ 5,819 | $ 8,474 | $ 11,892 | $ 12,629 | $ 13,008 |
Portfolio turnover rate F | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. I Total distributions of $3.55 per share is comprised of distributions from net investment income of $.298 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services Fund (the Fund) is a fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 9,258,441 |
Unrealized depreciation | (62,077,753) |
Net unrealized appreciation (depreciation) | $ (52,819,312) |
Cost for federal income tax purposes | $ 178,988,690 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Financial Services
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities short-term securities, aggregated $138,800,682 and $123,643,765, respectively.
The Fund realized a loss on the sale of an investment not meeting the investment restrictions of the Fund. The loss was fully reimbursed by the Fund's investment advisor.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 87,734 | $ 919 |
Class T | .25% | .25% | 98,442 | 402 |
Class B | .75% | .25% | 74,707 | 56,031 |
Class C | .75% | .25% | 149,164 | 37,309 |
| | | $ 410,047 | $ 94,661 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 41,706 |
Class T | 4,856 |
Class B* | 14,283 |
Class C* | 7,706 |
| $ 68,551 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 104,273 | .30 |
Class T | 59,698 | .30 |
Class B | 22,055 | .29 |
Class C | 44,209 | .30 |
Institutional Class | 5,778 | .29 |
| $ 236,013 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $32,534 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $203 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,883 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $86.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Financial Services
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,698,164 | $ 1,429,035 |
Class T | 781,807 | 833,715 |
Class B | 182,682 | 103,026 |
Class C | 461,265 | 241,388 |
Institutional Class | 95,894 | 223,027 |
Total | $ 3,219,812 | $ 2,830,191 |
From net realized gain | | |
Class A | $ 139,686 | $ 7,599,793 |
Class T | 80,989 | 6,343,916 |
Class B | 31,565 | 3,935,726 |
Class C | 60,568 | 3,829,942 |
Institutional Class | 7,719 | 651,885 |
Total | $ 320,527 | $ 22,361,262 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,529,467 | 3,476,462 | $ 15,817,183 | $ 58,217,275 |
Reinvestment of distributions | 159,396 | 413,881 | 1,638,379 | 8,062,306 |
Shares redeemed | (1,283,732) | (2,133,725) | (12,538,875) | (36,028,050) |
Net increase (decrease) | 405,131 | 1,756,618 | $ 4,916,687 | $ 30,251,531 |
Class T | | | | |
Shares sold | 567,503 | 825,338 | $ 5,492,757 | $ 13,397,557 |
Reinvestment of distributions | 77,111 | 344,513 | 791,775 | 6,720,713 |
Shares redeemed | (821,971) | (1,652,503) | (7,992,905) | (28,919,771) |
Net increase (decrease) | (177,357) | (482,652) | $ (1,708,373) | $ (8,801,501) |
Class B | | | | |
Shares sold | 272,427 | 511,474 | $ 2,765,907 | $ 8,246,792 |
Reinvestment of distributions | 19,064 | 187,873 | 185,301 | 3,607,784 |
Shares redeemed | (442,386) | (2,282,248) | (4,193,643) | (40,060,805) |
Net increase (decrease) | (150,895) | (1,582,901) | $ (1,242,435) | $ (28,206,229) |
Class C | | | | |
Shares sold | 765,610 | 1,114,854 | $ 7,728,077 | $ 17,550,045 |
Reinvestment of distributions | 43,964 | 173,040 | 431,812 | 3,294,216 |
Shares redeemed | (575,076) | (1,038,077) | (5,293,610) | (17,222,702) |
Net increase (decrease) | 234,498 | 249,817 | $ 2,866,279 | $ 3,621,559 |
Institutional Class | | | | |
Shares sold | 101,115 | 1,075,511 | $ 993,534 | $ 20,129,434 |
Reinvestment of distributions | 6,287 | 36,137 | 65,572 | 687,993 |
Shares redeemed | (169,999) | (1,074,000) | (1,861,052) | (18,527,868) |
Net increase (decrease) | (62,597) | 37,648 | $ (801,946) | $ 2,289,559 |
Semiannual Report
Advisor Health Care Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.22% | | | |
Actual | | $ 1,000.00 | $ 770.50 | $ 5.44 |
HypotheticalA | | $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 769.20 | $ 6.60 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 767.60 | $ 8.78 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 767.60 | $ 8.78 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 771.20 | $ 4.33 |
HypotheticalA | | $ 1,000.00 | $ 1,020.32 | $ 4.94 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Health Care
Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Wyeth | 6.8 | 5.3 |
Pfizer, Inc. | 6.5 | 2.3 |
Merck & Co., Inc. | 6.4 | 0.3 |
Genentech, Inc. | 5.6 | 4.6 |
Medco Health Solutions, Inc. | 5.3 | 1.0 |
Baxter International, Inc. | 4.7 | 3.9 |
Covidien Ltd. | 4.2 | 4.4 |
Schering-Plough Corp. | 3.5 | 0.0 |
Amgen, Inc. | 3.4 | 2.7 |
Gilead Sciences, Inc. | 3.1 | 0.0 |
| 49.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Pharmaceuticals | 35.4% | |
| Biotechnology | 20.6% | |
| Health Care
Providers & Services | 20.4% | |
| Health Care
Equipment & Supplies | 18.0% | |
| Life Sciences
Tools & Services | 2.9% | |
| All Others* | 2.7% | |
As of July 31, 2008 |
| Health Care
Equipment & Supplies | 24.8% | |
| Pharmaceuticals | 20.8% | |
| Biotechnology | 16.4% | |
| Health Care
Providers & Services | 14.9% | |
| Life Sciences
Tools & Services | 12.1% | |
| All Others* | 11.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Health Care Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% |
| Shares | | Value |
BIOTECHNOLOGY - 20.5% |
Biotechnology - 20.5% |
Alexion Pharmaceuticals, Inc. (a) | 31,000 | | $ 1,142,970 |
Alkermes, Inc. (a) | 57,240 | | 656,543 |
Alnylam Pharmaceuticals, Inc. (a) | 52,137 | | 1,099,569 |
Amgen, Inc. (a) | 224,762 | | 12,328,196 |
Biogen Idec, Inc. (a) | 143,479 | | 6,980,253 |
BioMarin Pharmaceutical, Inc. (a)(d) | 109,037 | | 2,100,053 |
Cephalon, Inc. (a) | 15,310 | | 1,181,626 |
Cougar Biotechnology, Inc. (a) | 9,226 | | 269,215 |
CSL Ltd. | 37,585 | | 886,350 |
Cubist Pharmaceuticals, Inc. (a) | 9,500 | | 203,395 |
Emergent BioSolutions, Inc. (a) | 1,600 | | 35,088 |
Genentech, Inc. (a) | 252,690 | | 20,528,536 |
Genomic Health, Inc. (a) | 4,800 | | 102,720 |
Genzyme Corp. (a) | 138,100 | | 9,517,852 |
Gilead Sciences, Inc. (a) | 227,847 | | 11,567,792 |
GTx, Inc. (a)(d) | 60,617 | | 669,212 |
Molecular Insight Pharmaceuticals, Inc. (a)(d) | 7,967 | | 21,192 |
Myriad Genetics, Inc. (a) | 11,700 | | 872,469 |
ONYX Pharmaceuticals, Inc. (a) | 42,203 | | 1,284,237 |
OSI Pharmaceuticals, Inc. (a) | 21,900 | | 779,640 |
PDL BioPharma, Inc. | 68,426 | | 439,295 |
Theravance, Inc. (a) | 29,935 | | 394,543 |
United Therapeutics Corp. (a) | 31,400 | | 2,133,630 |
| | 75,194,376 |
CHEMICALS - 0.3% |
Fertilizers & Agricultural Chemicals - 0.3% |
Monsanto Co. | 11,400 | | 867,084 |
Specialty Chemicals - 0.0% |
Jubilant Organosys Ltd. | 46,246 | | 112,452 |
TOTAL CHEMICALS | | 979,536 |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Diversified Support Services - 0.0% |
PRG-Schultz International, Inc. (a) | 2,500 | | 7,825 |
DIVERSIFIED CONSUMER SERVICES - 0.4% |
Specialized Consumer Services - 0.4% |
Carriage Services, Inc. Class A (a) | 279,255 | | 617,154 |
Service Corp. International | 13,200 | | 60,060 |
Stewart Enterprises, Inc. Class A (d) | 245,783 | | 840,578 |
| | 1,517,792 |
FOOD & STAPLES RETAILING - 0.4% |
Drug Retail - 0.4% |
China Nepstar Chain Drugstore Ltd. ADR | 8,700 | | 33,147 |
CVS Caremark Corp. | 51,700 | | 1,389,696 |
| | 1,422,843 |
|
| Shares | | Value |
HEALTH CARE EQUIPMENT & SUPPLIES - 18.0% |
Health Care Equipment - 15.1% |
American Medical Systems Holdings, Inc. (a) | 72,194 | | $ 772,476 |
Aspect Medical Systems, Inc. (a) | 58,500 | | 222,300 |
Baxter International, Inc. | 294,241 | | 17,257,235 |
Boston Scientific Corp. (a) | 314,962 | | 2,793,713 |
C.R. Bard, Inc. | 3,200 | | 273,824 |
China Medical Technologies, Inc. sponsored ADR | 5,082 | | 77,958 |
Conceptus, Inc. (a) | 71,814 | | 1,031,249 |
Covidien Ltd. | 403,145 | | 15,456,579 |
Electro-Optical Sciences, Inc. (a) | 92,091 | | 477,952 |
Electro-Optical Sciences, Inc.: | | | |
warrants 11/2/11 (a)(g) | 60,018 | | 184,188 |
warrants 8/2/12 (a)(g) | 16,500 | | 53,931 |
ev3, Inc. (a) | 107,583 | | 582,024 |
Golden Meditech Co. Ltd. (a) | 1,760,000 | | 160,107 |
Hospira, Inc. (a) | 81,145 | | 2,020,511 |
I-Flow Corp. (a) | 9,500 | | 39,045 |
Integra LifeSciences Holdings Corp. (a) | 54,655 | | 1,516,130 |
Invacare Corp. | 6,802 | | 129,646 |
Kinetic Concepts, Inc. (a) | 33,900 | | 816,990 |
Masimo Corp. (a) | 22,900 | | 635,933 |
Medtronic, Inc. | 64,797 | | 2,170,052 |
Meridian Bioscience, Inc. | 7,800 | | 165,828 |
Micrus Endovascular Corp. (a) | 83,066 | | 936,984 |
Mindray Medical International Ltd. sponsored ADR (d) | 23,563 | | 486,812 |
Natus Medical, Inc. (a) | 439 | | 3,398 |
NeuroMetrix, Inc. (a) | 64,462 | | 118,610 |
NuVasive, Inc. (a) | 37,700 | | 1,407,718 |
St. Jude Medical, Inc. (a) | 93,900 | | 3,415,143 |
Stryker Corp. | 20,600 | | 870,144 |
Syneron Medical Ltd. (a) | 46,703 | | 329,723 |
Wright Medical Group, Inc. (a) | 42,800 | | 887,672 |
| | 55,293,875 |
Health Care Supplies - 2.9% |
Alcon, Inc. | 187 | | 16,015 |
Align Technology, Inc. (a) | 51,431 | | 405,276 |
Immucor, Inc. (a) | 16,440 | | 455,552 |
InfuSystems Holdings, Inc. (a) | 453,700 | | 807,586 |
InfuSystems Holdings, Inc. warrants 4/11/11 (a) | 41,900 | | 2,305 |
Inverness Medical Innovations, Inc. (a)(d) | 321,463 | | 7,866,200 |
RTI Biologics, Inc. (a) | 305,450 | | 748,353 |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 236,000 | | 401,412 |
| | 10,702,699 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 65,996,574 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 20.1% |
Health Care Distributors & Services - 1.5% |
Henry Schein, Inc. (a) | 30,003 | | $ 1,123,012 |
McKesson Corp. | 76,500 | | 3,381,300 |
Profarma Distribuidora de Produtos Farmaceuticos SA | 464,800 | | 1,141,966 |
| | 5,646,278 |
Health Care Facilities - 1.2% |
Hanger Orthopedic Group, Inc. (a) | 137,565 | | 1,877,762 |
Sun Healthcare Group, Inc. (a) | 96,469 | | 1,092,994 |
Tenet Healthcare Corp. (a) | 126,100 | | 134,927 |
Universal Health Services, Inc. Class B | 38,159 | | 1,444,318 |
| | 4,550,001 |
Health Care Services - 10.0% |
athenahealth, Inc. (a) | 33,200 | | 1,197,856 |
Diagnosticos da America SA | 23,500 | | 226,795 |
Emergency Medical Services Corp. Class A (a) | 100 | | 3,352 |
Express Scripts, Inc. (a) | 164,417 | | 8,839,058 |
Fresenius Medical Care AG sponsored ADR | 24,900 | | 1,114,524 |
Genoptix, Inc. (a) | 15,800 | | 535,620 |
Health Grades, Inc. (a) | 335,498 | | 785,065 |
Healthways, Inc. (a) | 34,800 | | 480,936 |
IPC The Hospitalist Co., Inc. | 7,940 | | 151,972 |
Laboratory Corp. of America Holdings (a) | 30,400 | | 1,799,680 |
LHC Group, Inc. (a) | 30,500 | | 811,605 |
Medco Health Solutions, Inc. (a) | 436,020 | | 19,590,379 |
NightHawk Radiology Holdings, Inc. (a) | 186,681 | | 795,261 |
Rural/Metro Corp. (a) | 95,400 | | 156,456 |
Virtual Radiologic Corp. (a)(d) | 12,100 | | 97,163 |
| | 36,585,722 |
Managed Health Care - 7.4% |
Coventry Health Care, Inc. (a) | 10,800 | | 163,404 |
Health Net, Inc. (a) | 56,200 | | 822,206 |
Humana, Inc. (a) | 149,190 | | 5,658,777 |
UnitedHealth Group, Inc. | 364,409 | | 10,323,707 |
Universal American Financial Corp. (a) | 37,394 | | 369,079 |
WellPoint, Inc. (a) | 237,100 | | 9,827,795 |
| | 27,164,968 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 73,946,969 |
HEALTH CARE TECHNOLOGY - 0.0% |
Health Care Technology - 0.0% |
HLTH Corp. (a) | 3,904 | | 44,428 |
|
| Shares | | Value |
LIFE SCIENCES TOOLS & SERVICES - 2.9% |
Life Sciences Tools & Services - 2.9% |
Albany Molecular Research, Inc. (a) | 2,330 | | $ 19,968 |
Bruker BioSciences Corp. (a) | 78,987 | | 318,318 |
Charles River Laboratories International, Inc. (a) | 3,785 | | 92,392 |
Illumina, Inc. (a)(d) | 148,544 | | 4,064,164 |
Lonza Group AG | 9,546 | | 873,205 |
Luminex Corp. (a) | 1,600 | | 32,592 |
Millipore Corp. (a) | 20,600 | | 1,136,296 |
PAREXEL International Corp. (a) | 15,250 | | 150,823 |
QIAGEN NV (a) | 153,000 | | 2,623,950 |
Thermo Fisher Scientific, Inc. (a) | 23,168 | | 832,426 |
Waters Corp. (a) | 17,200 | | 622,124 |
| | 10,766,258 |
PERSONAL PRODUCTS - 0.0% |
Personal Products - 0.0% |
Nutraceutical International Corp. (a) | 8,700 | | 76,038 |
PHARMACEUTICALS - 35.0% |
Pharmaceuticals - 35.0% |
Abbott Laboratories | 185,763 | | 10,298,701 |
Allergan, Inc. | 159,588 | | 6,083,495 |
Auxilium Pharmaceuticals, Inc. (a) | 33,300 | | 1,017,648 |
Bristol-Myers Squibb Co. | 379,525 | | 8,125,630 |
China Shineway Pharmaceutical Group Ltd. | 566,000 | | 317,542 |
Elan Corp. PLC sponsored ADR (a) | 23,000 | | 166,290 |
Eli Lilly & Co. | 15,000 | | 552,300 |
Johnson & Johnson | 120,442 | | 6,948,299 |
Merck & Co., Inc. | 828,691 | | 23,659,128 |
Pfizer, Inc. | 1,646,421 | | 24,004,818 |
Piramal Healthcare Ltd. | 25,301 | | 108,808 |
Schering-Plough Corp. | 731,700 | | 12,848,652 |
Shire PLC sponsored ADR | 58,500 | | 2,554,695 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 108,782 | | 4,509,014 |
Valeant Pharmaceuticals International (a)(d) | 40,900 | | 887,530 |
Wyeth | 583,295 | | 25,064,182 |
XenoPort, Inc. (a) | 52,553 | | 1,372,684 |
| | 128,519,416 |
TOTAL COMMON STOCKS (Cost $371,991,002) | 358,472,055 |
Convertible Preferred Stocks - 0.2% |
| | | |
PHARMACEUTICALS - 0.2% |
Pharmaceuticals - 0.2% |
Mylan, Inc. 6.50%
(Cost $610,071) | 1,000 | | 740,100 |
Corporate Bonds - 0.6% |
| Principal Amount | | Value |
Convertible Bonds - 0.3% |
BIOTECHNOLOGY - 0.1% |
Biotechnology - 0.1% |
Theravance, Inc. 3% 1/15/15 | | $ 400,000 | | $ 256,120 |
HEALTH CARE PROVIDERS & SERVICES - 0.2% |
Health Care Services - 0.2% |
Lincare Holdings, Inc. 2.75% 11/1/37 | | 1,030,000 | | 827,914 |
TOTAL CONVERTIBLE BONDS | | 1,084,034 |
Nonconvertible Bonds - 0.3% |
HEALTH CARE PROVIDERS & SERVICES - 0.1% |
Health Care Services - 0.1% |
DASA Finance Corp. 8.75% 5/29/18 (e) | | 640,000 | | 518,400 |
PHARMACEUTICALS - 0.2% |
Pharmaceuticals - 0.2% |
Elan Finance PLC/Elan Finance Corp. 6.1488% 11/15/11 (f) | | 925,000 | | 684,500 |
TOTAL NONCONVERTIBLE BONDS | | 1,202,900 |
TOTAL CORPORATE BONDS (Cost $2,408,051) | 2,286,934 |
Money Market Funds - 4.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 6,445,427 | | 6,445,427 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 11,112,325 | | 11,112,325 |
TOTAL MONEY MARKET FUNDS (Cost $17,557,752) | 17,557,752 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $392,566,876) | | 379,056,841 |
NET OTHER ASSETS - (3.2)% | | (11,644,783) |
NET ASSETS - 100% | $ 367,412,058 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $518,400 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $238,119 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Electro-Optical Sciences, Inc. warrants 11/2/11 | 11/1/06 | $ 6 |
Electro-Optical Sciences, Inc. warrants 8/2/12 | 8/1/07 | $ 17 |
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 | $ 63,928 |
Fidelity Securities Lending Cash Central Fund | 100,934 |
Total | $ 164,862 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 379,056,841 | $ 374,545,117 | $ 4,511,724 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Health Care Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $10,700,625) - See accompanying schedule: Unaffiliated issuers (cost $375,009,124) | $ 361,499,089 | |
Fidelity Central Funds (cost $17,557,752) | 17,557,752 | |
Total Investments (cost $392,566,876) | | $ 379,056,841 |
Foreign currency held at value (cost $189) | | 170 |
Receivable for investments sold | | 5,732,153 |
Receivable for fund shares sold | | 358,033 |
Dividends receivable | | 266,124 |
Interest receivable | | 29,085 |
Distributions receivable from Fidelity Central Funds | | 19,786 |
Prepaid expenses | | 4,378 |
Other receivables | | 41,690 |
Total assets | | 385,508,260 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,676,643 | |
Payable for fund shares redeemed | 834,424 | |
Accrued management fee | 173,622 | |
Distribution fees payable | 152,356 | |
Other affiliated payables | 101,393 | |
Other payables and accrued expenses | 45,439 | |
Collateral on securities loaned, at value | 11,112,325 | |
Total liabilities | | 18,096,202 |
| | |
Net Assets | | $ 367,412,058 |
Net Assets consist of: | | |
Paid in capital | | $ 458,911,364 |
Accumulated net investment loss | | (519,772) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (77,456,142) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (13,523,392) |
Net Assets | | $ 367,412,058 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($163,536,868 ÷ 10,966,366 shares) | | $ 14.91 |
| | |
Maximum offering price per share (100/94.25 of $14.91) | | $ 15.82 |
Class T:
Net Asset Value and redemption price per share ($100,104,105 ÷ 6,887,501 shares) | | $ 14.53 |
| | |
Maximum offering price per share (100/96.50 of $14.53) | | $ 15.06 |
Class B:
Net Asset Value and offering price per share ($32,462,061 ÷ 2,362,439 shares)A | | $ 13.74 |
| | |
Class C:
Net Asset Value and offering price per share ($58,799,603 ÷ 4,289,694 shares)A | | $ 13.71 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,509,421 ÷ 810,021 shares) | | $ 15.44 |
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.
Health Care
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,350,319 |
Interest | | 64,021 |
Income from Fidelity Central Funds | | 164,862 |
Total income | | 2,579,202 |
| | |
Expenses | | |
Management fee | $ 1,187,069 | |
Transfer agent fees | 631,728 | |
Distribution fees | 1,057,839 | |
Accounting and security lending fees | 83,922 | |
Custodian fees and expenses | 42,701 | |
Independent trustees' compensation | 1,238 | |
Registration fees | 42,540 | |
Audit | 31,129 | |
Legal | 2,246 | |
Miscellaneous | 27,376 | |
Total expenses before reductions | 3,107,788 | |
Expense reductions | (8,885) | 3,098,903 |
Net investment income (loss) | | (519,701) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (75,210,737) | |
Foreign currency transactions | (116,636) | |
Total net realized gain (loss) | | (75,327,373) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (42,980,174) | |
Assets and liabilities in foreign currencies | (7,220) | |
Total change in net unrealized appreciation (depreciation) | | (42,987,394) |
Net gain (loss) | | (118,314,767) |
Net increase (decrease) in net assets resulting from operations | | $ (118,834,468) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (519,701) | $ (2,555,905) |
Net realized gain (loss) | (75,327,373) | 27,558,745 |
Change in net unrealized appreciation (depreciation) | (42,987,394) | (58,670,581) |
Net increase (decrease) in net assets resulting from operations | (118,834,468) | (33,667,741) |
Distributions to shareholders from net realized gain | (9,966,416) | (58,232,148) |
Share transactions - net increase (decrease) | (25,464,935) | (48,796,453) |
Redemption fees | 5,696 | 7,557 |
Total increase (decrease) in net assets | (154,260,123) | (140,688,785) |
| | |
Net Assets | | |
Beginning of period | 521,672,181 | 662,360,966 |
End of period (including accumulated net investment loss of $519,772 and accumulated net investment loss of $71, respectively) | $ 367,412,058 | $ 521,672,181 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 | $ 18.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.03) | (.03) | (.09) | (.05) | (.05) |
Net realized and unrealized gain (loss) | (4.44) | (1.08) | 1.91 | .96 | 4.08 | .67 |
Total from investment operations | (4.44) | (1.11) | 1.88 | .87 | 4.03 | .62 |
Distributions from net realized gain | (.37) | (2.07) | (2.75) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 |
Total Return B, C, D | (22.95)% | (5.64)% | 8.54% | 3.79% | 21.31% | 3.39% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.22% A | 1.20% | 1.22% | 1.25% | 1.28% | 1.32% |
Expenses net of fee waivers, if any | 1.22% A | 1.20% | 1.22% | 1.25% | 1.28% | 1.32% |
Expenses net of all reductions | 1.22% A | 1.19% | 1.21% | 1.21% | 1.26% | 1.29% |
Net investment income (loss) | .01% A | (.13)% | (.14)% | (.38)% | (.22)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 163,537 | $ 220,888 | $ 234,656 | $ 199,221 | $ 139,158 | $ 104,258 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 | $ 18.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.09) | (.15) | (.09) | (.09) |
Net realized and unrealized gain (loss) | (4.34) | (1.06) | 1.87 | .95 | 3.99 | .66 |
Total from investment operations | (4.36) | (1.14) | 1.78 | .80 | 3.90 | .57 |
Distributions from net realized gain | (.37) | (1.99) | (2.65) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.53 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 |
Total Return B, C, D | (23.08)% | (5.86)% | 8.25% | 3.55% | 20.97% | 3.16% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.48% A | 1.46% | 1.48% | 1.50% | 1.53% | 1.56% |
Expenses net of fee waivers, if any | 1.48% A | 1.46% | 1.48% | 1.50% | 1.53% | 1.56% |
Expenses net of all reductions | 1.47% A | 1.45% | 1.47% | 1.47% | 1.51% | 1.53% |
Net investment income (loss) | (.25)% A | (.40)% | (.40)% | (.63)% | (.47)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 100,104 | $ 143,237 | $ 186,628 | $ 218,280 | $ 243,353 | $ 243,176 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.18) | (.20) | (.25) | (.19) | (.18) |
Net realized and unrealized gain (loss) | (4.10) | (.99) | 1.79 | .91 | 3.83 | .64 |
Total from investment operations | (4.16) | (1.17) | 1.59 | .66 | 3.64 | .46 |
Distributions from net realized gain | (.37) | (1.85) | (2.47) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 |
Total Return B, C, D | (23.24)% | (6.30)% | 7.66% | 3.06% | 20.32% | 2.64% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97% A | 1.95% | 1.99% | 2.01% | 2.04% | 2.06% |
Expenses net of fee waivers, if any | 1.97% A | 1.95% | 1.99% | 2.01% | 2.04% | 2.06% |
Expenses net of all reductions | 1.96% A | 1.94% | 1.98% | 1.98% | 2.01% | 2.03% |
Net investment income (loss) | (.74)% A | (.89)% | (.91)% | (1.14)% | (.98)% | (1.01)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 32,462 | $ 55,589 | $ 113,384 | $ 180,364 | $ 266,319 | $ 285,299 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 | $ 17.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.17) | (.19) | (.24) | (.17) | (.17) |
Net realized and unrealized gain (loss) | (4.09) | (1.00) | 1.79 | .91 | 3.84 | .64 |
Total from investment operations | (4.15) | (1.17) | 1.60 | .67 | 3.67 | .47 |
Distributions from net realized gain | (.37) | (1.89) | (2.55) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.71 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 |
Total Return B, C, D | (23.24)% | (6.31)% | 7.75% | 3.10% | 20.46% | 2.69% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97% A | 1.94% | 1.94% | 1.94% | 1.97% | 2.00% |
Expenses net of fee waivers, if any | 1.97% A | 1.94% | 1.94% | 1.94% | 1.97% | 2.00% |
Expenses net of all reductions | 1.97% A | 1.94% | 1.93% | 1.91% | 1.94% | 1.97% |
Net investment income (loss) | (.74)% A | (.88)% | (.86)% | (1.07)% | (.91)% | (.95)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,800 | $ 83,133 | $ 105,519 | $ 115,644 | $ 131,277 | $ 130,184 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 | $ 18.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .03 | .05 | - H | .04 | .03 |
Net realized and unrealized gain (loss) | (4.60) | (1.12) | 1.96 | .99 | 4.16 | .67 |
Total from investment operations | (4.58) | (1.09) | 2.01 | .99 | 4.20 | .70 |
Distributions from net realized gain | (.37) | (2.14) | (2.82) | (.04) | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 |
Total Return B, C | (22.88)% | (5.36)% | 8.90% | 4.21% | 21.78% | 3.77% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .97% A | .93% | .88% | .86% | .88% | .91% |
Expenses net of fee waivers, if any | .97% A | .93% | .88% | .86% | .88% | .91% |
Expenses net of all reductions | .97% A | .92% | .87% | .83% | .85% | .88% |
Net investment income (loss) | .26% A | .14% | .19% | .01% | .18% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,509 | $ 18,825 | $ 22,174 | $ 20,652 | $ 19,698 | $ 20,358 |
Portfolio turnover rate F | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Health Care Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 24,941,737 |
Unrealized depreciation | (47,637,581) |
Net unrealized appreciation (depreciation) | $ (22,695,844) |
Cost for federal income tax purposes | $ 401,752,685 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Health Care
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $390,182,116 and $425,181,353, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 228,249 | $ 4,554 |
Class T | .25% | .25% | 287,746 | 1,674 |
Class B | .75% | .25% | 206,275 | 154,706 |
Class C | .75% | .25% | 335,569 | 14,812 |
| | | $ 1,057,839 | $ 175,746 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 13,737 |
Class T | 7,641 |
Class B* | 36,712 |
Class C* | 1,541 |
| $ 59,631 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 271,784 | .30 |
Class T | 176,265 | .31 |
Class B | 61,339 | .30 |
Class C | 99,935 | .30 |
Institutional Class | 22,405 | .30 |
| $ 631,728 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $8,032 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $534 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $100,934.
Health Care
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $8,073 for the period. In addition through arrangements with each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 754 |
Institutional Class | 58 |
| $ 812 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ 4,165,896 | $ 21,294,782 |
Class T | 2,716,500 | 16,323,384 |
Class B | 1,072,948 | 9,098,884 |
Class C | 1,667,891 | 9,241,641 |
Institutional Class | 343,181 | 2,273,457 |
Total | $ 9,966,416 | $ 58,232,148 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,255,680 | 3,081,992 | $ 20,644,833 | $ 65,718,810 |
Reinvestment of distributions | 190,190 | 845,716 | 3,682,080 | 18,561,495 |
Shares redeemed | (1,678,837) | (2,977,484) | (26,607,764) | (63,109,379) |
Net increase (decrease) | (232,967) | 950,224 | $ (2,280,851) | $ 21,170,926 |
Class T | | | | |
Shares sold | 334,849 | 746,344 | $ 5,272,858 | $ 15,578,653 |
Reinvestment of distributions | 135,003 | 718,829 | 2,550,205 | 15,418,473 |
Shares redeemed | (1,020,577) | (2,364,110) | (15,838,024) | (48,580,585) |
Net increase (decrease) | (550,725) | (898,937) | $ (8,014,961) | $ (17,583,459) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class B | | | | |
Shares sold | 123,423 | 261,619 | $ 1,893,033 | $ 5,241,565 |
Reinvestment of distributions | 53,957 | 400,851 | 965,289 | 8,175,269 |
Shares redeemed | (857,593) | (2,945,003) | (12,895,613) | (58,341,596) |
Net increase (decrease) | (680,213) | (2,282,533) | $ (10,037,291) | $ (44,924,762) |
Class C | | | | |
Shares sold | 219,658 | 383,741 | $ 3,345,650 | $ 7,630,409 |
Reinvestment of distributions | 74,490 | 358,758 | 1,329,646 | 7,307,934 |
Shares redeemed | (565,623) | (1,138,609) | (8,268,501) | (22,157,508) |
Net increase (decrease) | (271,475) | (396,110) | $ (3,593,205) | $ (7,219,165) |
Institutional Class | | | | |
Shares sold | 118,404 | 423,102 | $ 2,134,553 | $ 9,559,061 |
Reinvestment of distributions | 12,578 | 64,316 | 251,944 | 1,455,613 |
Shares redeemed | (244,353) | (503,017) | (3,925,124) | (11,254,667) |
Net increase (decrease) | (113,371) | (15,599) | $ (1,538,627) | $ (239,993) |
Health Care
Advisor Industrials Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 588.10 | $ 4.84 |
Hypothetical A | | $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 587.30 | $ 5.84 |
Hypothetical A | | $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 585.70 | $ 7.87 |
Hypothetical A | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.96% | | | |
Actual | | $ 1,000.00 | $ 585.70 | $ 7.83 |
Hypothetical A | | $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .95% | | | |
Actual | | $ 1,000.00 | $ 588.60 | $ 3.80 |
Hypothetical A | | $ 1,000.00 | $ 1,020.42 | $ 4.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Industrials
Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Technologies Corp. | 6.9 | 5.2 |
Honeywell International, Inc. | 6.4 | 4.6 |
Danaher Corp. | 4.0 | 3.3 |
Union Pacific Corp. | 4.0 | 3.7 |
Lockheed Martin Corp. | 3.9 | 3.7 |
The Boeing Co. | 3.9 | 0.0 |
Cummins, Inc. | 3.3 | 3.5 |
Emerson Electric Co. | 3.3 | 1.7 |
Deere & Co. | 3.1 | 1.4 |
Siemens AG sponsored ADR | 3.1 | 2.7 |
| 41.9 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Aerospace & Defense | 28.6% | |
| Machinery | 18.4% | |
| Electrical Equipment | 10.5% | |
| Road & Rail | 9.1% | |
| Industrial Conglomerates | 7.8% | |
| All Others* | 25.6% | |
|
As of July 31, 2008 |
| Machinery | 23.2% | |
| Aerospace & Defense | 16.4% | |
| Electrical Equipment | 11.7% | |
| Industrial Conglomerates | 10.7% | |
| Road & Rail | 10.0% | |
| All Others* | 28.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Industrials Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.8% |
| Shares | | Value |
AEROSPACE & DEFENSE - 28.6% |
Aerospace & Defense - 28.6% |
Honeywell International, Inc. | 422,500 | | $ 13,862,225 |
Lockheed Martin Corp. | 104,500 | | 8,573,180 |
Northrop Grumman Corp. | 96,200 | | 4,629,144 |
Precision Castparts Corp. | 70,800 | | 4,598,460 |
Raytheon Co. | 129,500 | | 6,555,290 |
Stanley, Inc. (a) | 20,000 | | 605,200 |
The Boeing Co. | 200,600 | | 8,487,386 |
United Technologies Corp. | 312,600 | | 15,001,671 |
| | 62,312,556 |
AIR FREIGHT & LOGISTICS - 6.7% |
Air Freight & Logistics - 6.7% |
C.H. Robinson Worldwide, Inc. | 45,600 | | 2,096,688 |
FedEx Corp. | 91,100 | | 4,640,634 |
United Parcel Service, Inc. Class B | 155,500 | | 6,607,195 |
UTI Worldwide, Inc. | 112,700 | | 1,235,192 |
| | 14,579,709 |
AUTO COMPONENTS - 2.5% |
Auto Parts & Equipment - 1.0% |
Johnson Controls, Inc. | 169,400 | | 2,119,194 |
Tires & Rubber - 1.5% |
The Goodyear Tire & Rubber Co. (a) | 549,700 | | 3,391,649 |
TOTAL AUTO COMPONENTS | | 5,510,843 |
AUTOMOBILES - 0.2% |
Automobile Manufacturers - 0.2% |
Renault SA | 21,400 | | 415,360 |
BUILDING PRODUCTS - 2.1% |
Building Products - 2.1% |
Masco Corp. | 421,600 | | 3,296,912 |
Owens Corning (a) | 49,461 | | 659,810 |
USG Corp. (a)(d) | 108,300 | | 705,033 |
| | 4,661,755 |
CHEMICALS - 1.2% |
Specialty Chemicals - 1.2% |
Albemarle Corp. | 28,600 | | 636,350 |
Nalco Holding Co. | 105,200 | | 1,032,012 |
W.R. Grace & Co. (a) | 160,900 | | 928,393 |
| | 2,596,755 |
COMMERCIAL SERVICES & SUPPLIES - 2.4% |
Environmental & Facility Services - 2.0% |
Republic Services, Inc. | 169,560 | | 4,384,822 |
Office Services & Supplies - 0.4% |
United Stationers, Inc. (a) | 30,800 | | 862,708 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 5,247,530 |
|
| Shares | | Value |
CONSTRUCTION MATERIALS - 0.3% |
Construction Materials - 0.3% |
Martin Marietta Materials, Inc. (d) | 7,000 | | $ 563,640 |
DIVERSIFIED CONSUMER SERVICES - 0.7% |
Specialized Consumer Services - 0.7% |
Brinks Home Security Holdings, Inc. (a) | 65,010 | | 1,486,779 |
ELECTRICAL EQUIPMENT - 10.5% |
Electrical Components & Equipment - 9.9% |
Acuity Brands, Inc. | 73,242 | | 1,968,013 |
AMETEK, Inc. | 130,100 | | 4,157,996 |
Cooper Industries Ltd. Class A | 172,000 | | 4,628,520 |
Emerson Electric Co. | 217,320 | | 7,106,364 |
Ener1, Inc. (a)(d) | 93,573 | | 420,143 |
Regal-Beloit Corp. | 6,800 | | 230,928 |
Rockwell Automation, Inc. | 70,700 | | 1,841,028 |
Saft Groupe SA | 45,000 | | 1,105,027 |
| | 21,458,019 |
Heavy Electrical Equipment - 0.6% |
Vestas Wind Systems AS (a) | 27,342 | | 1,335,600 |
TOTAL ELECTRICAL EQUIPMENT | | 22,793,619 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Equipment & Instruments - 0.6% |
Itron, Inc. (a)(d) | 20,400 | | 1,332,120 |
HOUSEHOLD DURABLES - 0.2% |
Homebuilding - 0.2% |
Centex Corp. | 49,000 | | 416,990 |
INDUSTRIAL CONGLOMERATES - 7.8% |
Industrial Conglomerates - 7.8% |
General Electric Co. | 300,700 | | 3,647,491 |
McDermott International, Inc. (a) | 26,700 | | 276,879 |
Siemens AG sponsored ADR (d) | 119,435 | | 6,695,526 |
Textron, Inc. | 108,300 | | 977,949 |
Tyco International Ltd. | 262,725 | | 5,522,480 |
| | 17,120,325 |
MACHINERY - 18.4% |
Construction & Farm Machinery & Heavy Trucks - 10.7% |
Cummins, Inc. | 298,532 | | 7,158,797 |
Deere & Co. | 193,000 | | 6,704,820 |
Manitowoc Co., Inc. | 195,000 | | 1,072,500 |
Navistar International Corp. (a) | 123,500 | | 3,750,695 |
PACCAR, Inc. | 100,500 | | 2,652,195 |
Terex Corp. (a) | 91,200 | | 1,079,808 |
Toro Co. | 27,000 | | 799,470 |
| | 23,218,285 |
Industrial Machinery - 7.7% |
Danaher Corp. | 157,400 | | 8,803,382 |
Eaton Corp. | 66,900 | | 2,944,938 |
Ingersoll-Rand Co. Ltd. Class A | 107,400 | | 1,740,954 |
Common Stocks - continued |
| Shares | | Value |
MACHINERY - CONTINUED |
Industrial Machinery - continued |
Parker Hannifin Corp. | 72,800 | | $ 2,781,688 |
Sulzer AG (Reg.) | 11,212 | | 560,648 |
| | 16,831,610 |
TOTAL MACHINERY | | 40,049,895 |
MARINE - 0.4% |
Marine - 0.4% |
Safe Bulkers, Inc. | 74,000 | | 470,640 |
Ultrapetrol (Bahamas) Ltd. (a) | 175,033 | | 399,075 |
| | 869,715 |
PAPER & FOREST PRODUCTS - 0.5% |
Forest Products - 0.5% |
Weyerhaeuser Co. | 40,400 | | 1,104,536 |
PROFESSIONAL SERVICES - 1.6% |
Human Resource & Employment Services - 0.7% |
Manpower, Inc. | 53,900 | | 1,533,994 |
Research & Consulting Services - 0.9% |
Equifax, Inc. | 82,700 | | 2,044,344 |
TOTAL PROFESSIONAL SERVICES | | 3,578,338 |
ROAD & RAIL - 9.1% |
Railroads - 7.2% |
CSX Corp. | 86,700 | | 2,510,832 |
Norfolk Southern Corp. | 115,810 | | 4,442,472 |
Union Pacific Corp. | 199,000 | | 8,714,210 |
| | 15,667,514 |
Trucking - 1.9% |
Con-way, Inc. | 68,500 | | 1,509,055 |
Landstar System, Inc. | 33,700 | | 1,208,819 |
Old Dominion Freight Lines, Inc. (a) | 53,836 | | 1,350,207 |
| | 4,068,081 |
TOTAL ROAD & RAIL | | 19,735,595 |
TRADING COMPANIES & DISTRIBUTORS - 2.0% |
Trading Companies & Distributors - 2.0% |
Rush Enterprises, Inc. Class A (a) | 298,277 | | 2,714,321 |
W.W. Grainger, Inc. | 23,500 | | 1,714,325 |
| | 4,428,646 |
|
| Shares | | Value |
TRANSPORTATION INFRASTRUCTURE - 1.0% |
Marine Ports & Services - 1.0% |
Aegean Marine Petroleum Network, Inc. | 125,700 | | $ 2,150,727 |
TOTAL COMMON STOCKS (Cost $286,212,035) | 210,955,433 |
Nonconvertible Bonds - 0.0% |
| Principal Amount | | |
AIRLINES - 0.0% |
Airlines - 0.0% |
Delta Air Lines, Inc. 8.3% 12/15/29 (a)
(Cost $77,750) | | $ 2,690,000 | | 53,800 |
Money Market Funds - 6.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 4,802,160 | | 4,802,160 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 9,073,150 | | 9,073,150 |
TOTAL MONEY MARKET FUNDS (Cost $13,875,310) | 13,875,310 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $300,165,095) | | 224,884,543 |
NET OTHER ASSETS - (3.2)% | | (6,980,493) |
NET ASSETS - 100% | $ 217,904,050 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 77,978 |
Fidelity Securities Lending Cash Central Fund | 106,663 |
Total | $ 184,641 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 224,884,543 | $ 224,830,743 | $ - | $ 53,800 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ 33,625 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 20,175 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 53,800 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.8% |
Bermuda | 5.4% |
Germany | 3.1% |
Marshall Islands | 1.2% |
Others (individually less than 1%) | 2.5% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,342,576 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $8,610,536) - See accompanying schedule: Unaffiliated issuers (cost $286,289,785) | $ 211,009,233 | |
Fidelity Central Funds (cost $13,875,310) | 13,875,310 | |
Total Investments (cost $300,165,095) | | $ 224,884,543 |
Cash | | 24,276 |
Receivable for investments sold | | 5,945,427 |
Receivable for fund shares sold | | 237,453 |
Dividends receivable | | 462,649 |
Distributions receivable from Fidelity Central Funds | | 23,361 |
Prepaid expenses | | 3,002 |
Other receivables | | 3,130 |
Total assets | | 231,583,841 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,772,426 | |
Payable for fund shares redeemed | 538,386 | |
Accrued management fee | 110,686 | |
Distribution fees payable | 91,886 | |
Other affiliated payables | 65,991 | |
Other payables and accrued expenses | 27,266 | |
Collateral on securities loaned, at value | 9,073,150 | |
Total liabilities | | 13,679,791 |
| | |
Net Assets | | $ 217,904,050 |
Net Assets consist of: | | |
Paid in capital | | $ 379,882,302 |
Distributions in excess of net investment income | | (351,485) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (86,340,461) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (75,286,306) |
Net Assets | | $ 217,904,050 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($106,667,471 ÷ 8,336,497 shares) | | $ 12.80 |
| | |
Maximum offering price per share (100/94.25 of $12.80) | | $ 13.58 |
Class T:
Net Asset Value and redemption price per share ($46,200,842 ÷ 3,656,058 shares) | | $ 12.64 |
| | |
Maximum offering price per share (100/96.50 of $12.64) | | $ 13.10 |
Class B:
Net Asset Value and offering price per share ($21,553,504 ÷ 1,779,754 shares)A | | $ 12.11 |
| | |
Class C:
Net Asset Value and offering price per share ($31,111,023 ÷ 2,562,744 shares)A | | $ 12.14 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,371,210 ÷ 935,912 shares) | | $ 13.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,833,266 |
Interest | | 4 |
Income from Fidelity Central Funds | | 184,641 |
Total income | | 3,017,911 |
| | |
Expenses | | |
Management fee | $ 833,537 | |
Transfer agent fees | 424,742 | |
Distribution fees | 685,690 | |
Accounting and security lending fees | 59,123 | |
Custodian fees and expenses | 11,037 | |
Independent trustees' compensation | 883 | |
Registration fees | 51,664 | |
Audit | 28,305 | |
Legal | 1,157 | |
Miscellaneous | 14,454 | |
Total expenses before reductions | 2,110,592 | |
Expense reductions | (4,488) | 2,106,104 |
Net investment income (loss) | | 911,807 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (81,413,113) | |
Foreign currency transactions | 38,375 | |
Total net realized gain (loss) | | (81,374,738) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (86,879,601) | |
Assets and liabilities in foreign currencies | (4,951) | |
Total change in net unrealized appreciation (depreciation) | | (86,884,552) |
Net gain (loss) | | (168,259,290) |
Net increase (decrease) in net assets resulting from operations | | $ (167,347,483) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 911,807 | $ 880,536 |
Net realized gain (loss) | (81,374,738) | 5,734,188 |
Change in net unrealized appreciation (depreciation) | (86,884,552) | (28,847,344) |
Net increase (decrease) in net assets resulting from operations | (167,347,483) | (22,232,620) |
Distributions to shareholders from net investment income | (1,756,118) | - |
Distributions to shareholders from net realized gain | (285,855) | (36,229,373) |
Total distributions | (2,041,973) | (36,229,373) |
Share transactions - net increase (decrease) | (17,971,539) | 109,034,065 |
Redemption fees | 7,338 | 14,921 |
Total increase (decrease) in net assets | (187,353,657) | 50,586,993 |
| | |
Net Assets | | |
Beginning of period | 405,257,707 | 354,670,714 |
End of period (including distributions in excess of net investment income of $351,485 and undistributed net investment income of $809,200, respectively) | $ 217,904,050 | $ 405,257,707 |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 | $ 14.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .11 | .09 | .08 | .02 | (.02) |
Net realized and unrealized gain (loss) | (9.09) | (1.17) | 5.11 | 1.63 | 4.35 | 3.96 |
Total from investment operations | (9.02) | (1.06) | 5.20 | 1.71 | 4.37 | 3.94 |
Distributions from net investment income | (.13) | - | (.06) | - | - | - |
Distributions from net realized gain | (.02) | (2.46) | (1.81) | (1.08) | (.94) | - |
Total distributions | (.15) | (2.46) | (1.87) | (1.08) | (.94) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.80 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 |
Total Return B,C,D | (41.19)% | (4.71)% | 25.13% | 8.40% | 25.04% | 27.92% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.21% A | 1.17% | 1.21% | 1.26% | 1.34% | 1.65% |
Expenses net of fee waivers, if any | 1.21% A | 1.17% | 1.21% | 1.26% | 1.34% | 1.50% |
Expenses net of all reductions | 1.21% A | 1.16% | 1.21% | 1.24% | 1.29% | 1.47% |
Net investment income (loss) | .83% A | .46% | .38% | .34% | .09% | (.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 106,667 | $ 188,859 | $ 157,451 | $ 99,255 | $ 40,264 | $ 12,612 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 | $ 14.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .05 | .03 | .02 | (.03) | (.06) |
Net realized and unrealized gain (loss) | (8.98) | (1.15) | 5.05 | 1.61 | 4.31 | 3.93 |
Total from investment operations | (8.93) | (1.10) | 5.08 | 1.63 | 4.28 | 3.87 |
Distributions from net investment income | (.08) | - | (.03) | - | - | - |
Distributions from net realized gain | (.02) | (2.40) | (1.74) | (1.04) | (.91) | - |
Total distributions | (.10) | (2.40) | (1.77) | (1.04) | (.91) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 |
Total Return B,C,D | (41.27)% | (4.96)% | 24.82% | 8.13% | 24.78% | 27.67% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.46% A | 1.41% | 1.46% | 1.49% | 1.57% | 1.90% |
Expenses net of fee waivers, if any | 1.46% A | 1.41% | 1.46% | 1.49% | 1.57% | 1.75% |
Expenses net of all reductions | 1.46% A | 1.41% | 1.46% | 1.47% | 1.52% | 1.72% |
Net investment income (loss) | .58% A | .21% | .13% | .11% | (.14)% | (.36)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 46,201 | $ 85,025 | $ 75,530 | $ 55,936 | $ 40,126 | $ 13,089 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 | $ 13.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.07) | (.09) | (.09) | (.13) | (.14) |
Net realized and unrealized gain (loss) | (8.60) | (1.10) | 4.87 | 1.55 | 4.17 | 3.79 |
Total from investment operations | (8.59) | (1.17) | 4.78 | 1.46 | 4.04 | 3.65 |
Distributions from net investment income | (.04) | - | - | - | - | - |
Distributions from net realized gain | - | (2.28) | (1.61) | (.99) | (.76) | - |
Total distributions | (.04) | (2.28) | (1.61) | (.99) | (.76) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.11 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 |
Total Return B,C,D | (41.43)% | (5.46)% | 24.18% | 7.54% | 24.12% | 26.89% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.97% A | 1.95% | 2.00% | 2.04% | 2.11% | 2.37% |
Expenses net of fee waivers, if any | 1.97% A | 1.95% | 2.00% | 2.04% | 2.11% | 2.25% |
Expenses net of all reductions | 1.97% A | 1.95% | 2.00% | 2.02% | 2.07% | 2.22% |
Net investment income (loss) | .07% A | (.33)% | (.41)% | (.44)% | (.68)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 21,554 | $ 39,989 | $ 44,330 | $ 37,082 | $ 32,242 | $ 14,722 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 | $ 13.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.06) | (.08) | (.08) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (8.62) | (1.11) | 4.88 | 1.56 | 4.19 | 3.82 |
Total from investment operations | (8.61) | (1.17) | 4.80 | 1.48 | 4.07 | 3.68 |
Distributions from net investment income | (.04) | - | - | - | - | - |
Distributions from net realized gain | - | (2.30) | (1.70) | (1.00) | (.75) | - |
Total distributions | (.04) | (2.30) | (1.70) | (1.00) | (.75) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.14 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 |
Total Return B,C,D | (41.43)% | (5.44)% | 24.25% | 7.59% | 24.16% | 26.99% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.96% A | 1.91% | 1.94% | 1.99% | 2.07% | 2.28% |
Expenses net of fee waivers, if any | 1.96% A | 1.91% | 1.94% | 1.99% | 2.07% | 2.25% |
Expenses net of all reductions | 1.96% A | 1.90% | 1.94% | 1.97% | 2.02% | 2.22% |
Net investment income (loss) | .08% A | (.28)% | (.35)% | (.38)% | (.64)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 31,111 | $ 57,742 | $ 57,862 | $ 42,363 | $ 20,595 | $ 9,507 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 | $ 14.41 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .18 | .16 | .16 | .07 | .02 |
Net realized and unrealized gain (loss) | (9.41) | (1.19) | 5.27 | 1.66 | 4.46 | 4.04 |
Total from investment operations | (9.31) | (1.01) | 5.43 | 1.82 | 4.53 | 4.06 |
Distributions from net investment income | (.17) | - | (.13) | - | - | - |
Distributions from net realized gain | (.02) | (2.53) | (1.81) | (1.11) | (.95) | - |
Total distributions | (.19) | (2.53) | (1.94) | (1.11) | (.95) | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | .01 |
Net asset value, end of period | $ 13.22 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 |
Total Return B,C | (41.14)% | (4.40)% | 25.53% | 8.73% | 25.41% | 28.24% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .95% A | .88% | .92% | .91% | 1.06% | 1.38% |
Expenses net of fee waivers, if any | .95% A | .88% | .92% | .91% | 1.06% | 1.25% |
Expenses net of all reductions | .94% A | .87% | .91% | .89% | 1.01% | 1.22% |
Net investment income (loss) | 1.09% A | .75% | .67% | .69% | .37% | .13% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,371 | $ 33,642 | $ 19,498 | $ 13,043 | $ 4,379 | $ 1,490 |
Portfolio turnover rate F | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Industrials Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Industrials
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 3,040,856 |
Unrealized depreciation | (87,292,321) |
Net unrealized appreciation (depreciation) | $ (84,251,465) |
Cost for federal income tax purposes | $ 309,136,008 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $221,386,538 and $236,099,271, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 175,177 | $ 6,191 |
Class T | .25% | .25% | 155,294 | - |
Class B | .75% | .25% | 144,808 | 108,607 |
Class C | .75% | .25% | 210,411 | 48,746 |
| | | $ 685,690 | $ 163,544 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 45,587 |
Class T | 5,801 |
Class B* | 41,087 |
Class C* | 9,508 |
| $ 101,983 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Industrials
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 201,700 | .29 |
Class T | 89,064 | .29 |
Class B | 42,803 | .30 |
Class C | 60,397 | .29 |
Institutional Class | 30,778 | .27 |
| $ 424,742 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,287 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $382 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $106,663.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,319 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $169, respectively.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,066,448 | $ - |
Class T | 306,371 | - |
Class B | 68,325 | - |
Class C | 103,234 | - |
Institutional Class | 211,740 | - |
Total | $ 1,756,118 | $ - |
From net realized gain | | |
Class A | $ 176,460 | $ 16,681,692 |
Class T | 79,143 | 7,329,611 |
Class B | - | 4,260,086 |
Class C | - | 5,759,702 |
Institutional Class | 30,252 | 2,198,282 |
Total | $ 285,855 | $ 36,229,373 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ende
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,645,541 | 3,949,728 | $ 28,032,979 | $ 92,641,467 |
Reinvestment of distributions | 72,593 | 645,516 | 1,139,555 | 15,365,861 |
Shares redeemed | (1,977,652) | (2,176,163) | (30,968,780) | (50,202,759) |
Net increase (decrease) | (259,518) | 2,419,081 | $ (1,796,246) | $ 57,804,569 |
Class T | | | | |
Shares sold | 714,268 | 1,380,018 | $ 11,517,570 | $ 31,838,651 |
Reinvestment of distributions | 24,634 | 292,360 | 365,354 | 6,876,188 |
Shares redeemed | (1,006,037) | (750,047) | (15,619,525) | (16,849,781) |
Net increase (decrease) | (267,135) | 922,331 | $ (3,736,601) | $ 21,865,058 |
Class B | | | | |
Shares sold | 217,093 | 453,829 | $ 3,446,627 | $ 10,091,104 |
Reinvestment of distributions | 4,471 | 159,890 | 56,195 | 3,612,025 |
Shares redeemed | (369,787) | (518,209) | (5,472,537) | (11,329,079) |
Net increase (decrease) | (148,223) | 95,510 | $ (1,969,715) | $ 2,374,050 |
Class C | | | | |
Shares sold | 382,764 | 947,863 | $ 6,019,556 | $ 21,153,831 |
Reinvestment of distributions | 6,551 | 198,290 | 82,541 | 4,489,229 |
Shares redeemed | (603,563) | (754,472) | (8,871,423) | (16,433,752) |
Net increase (decrease) | (214,248) | 391,681 | $ (2,769,326) | $ 9,209,308 |
Institutional Class | | | | |
Shares sold | 194,300 | 1,095,024 | $ 3,444,229 | $ 26,168,229 |
Reinvestment of distributions | 10,868 | 66,827 | 192,321 | 1,640,412 |
Shares redeemed | (750,256) | (423,274) | (11,336,201) | (10,027,561) |
Net increase (decrease) | (545,088) | 738,577 | $ (7,699,651) | $ 17,781,080 |
Industrials
Advisor Technology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.22% | | | |
Actual | | $ 1,000.00 | $ 583.30 | $ 4.87 |
HypotheticalA | | $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 582.40 | $ 5.90 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 580.80 | $ 7.85 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 580.70 | $ 7.85 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 583.70 | $ 3.91 |
HypotheticalA | | $ 1,000.00 | $ 1,020.27 | $ 4.99 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Technology
Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 7.9 | 4.3 |
QUALCOMM, Inc. | 6.5 | 5.0 |
Microsoft Corp. | 3.5 | 0.1 |
Hewlett-Packard Co. | 3.4 | 0.3 |
Google, Inc. Class A (sub. vtg.) | 3.2 | 1.0 |
ASML Holding NV (NY Shares) | 2.8 | 0.7 |
Starent Networks Corp. | 2.7 | 1.7 |
Visa, Inc. | 2.4 | 2.1 |
Apple, Inc. | 2.2 | 11.2 |
Intel Corp. | 2.0 | 0.0 |
| 36.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Semiconductors & Semiconductor Equipment | 25.8% | |
| Communications Equipment | 22.2% | |
| Software | 16.1% | |
| Computers & Peripherals | 9.7% | |
| Electronic Equipment & Components | 6.3% | |
| All Others* | 19.9% | |
As of July 31, 2008 |
| Communications Equipment | 23.6% | |
| Semiconductors & Semiconductor Equipment | 18.4% | |
| Computers & Peripherals | 16.9% | |
| Software | 15.7% | |
| Health Care
Equipment & Supplies | 4.1% | |
| All Others* | 21.3% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Technology Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 22.0% |
Communications Equipment - 22.0% |
ADC Telecommunications, Inc. (a) | 188,699 | | $ 956,704 |
ADVA AG Optical Networking (a)(d) | 442,449 | | 566,467 |
Alcatel-Lucent SA sponsored ADR (a) | 14,300 | | 28,171 |
Aruba Networks, Inc. (a) | 9,800 | | 26,166 |
AudioCodes Ltd. (a) | 288,850 | | 493,934 |
Balda AG (a) | 111,500 | | 69,949 |
Ciena Corp. (a) | 99,200 | | 619,008 |
Cisco Systems, Inc. (a) | 1,678,700 | | 25,130,140 |
Cogo Group, Inc. (a) | 228,675 | | 1,527,549 |
CommScope, Inc. (a) | 68,000 | | 980,560 |
Comverse Technology, Inc. (a) | 457,700 | | 2,892,664 |
Delta Networks, Inc. | 1,493,000 | | 208,456 |
F5 Networks, Inc. (a) | 15,000 | | 332,550 |
Infinera Corp. (a) | 116,200 | | 797,132 |
OZ Optics Ltd. unit (e) | 68,000 | | 320,960 |
Powerwave Technologies, Inc. (a) | 731,000 | | 328,950 |
QUALCOMM, Inc. | 595,100 | | 20,560,705 |
Research In Motion Ltd. (a) | 46,900 | | 2,598,260 |
Riverbed Technology, Inc. (a) | 100 | | 1,015 |
Sandvine Corp. (a) | 1,587,300 | | 880,503 |
Sandvine Corp. (U.K.) (a) | 1,078,100 | | 664,219 |
Sonus Networks, Inc. (a) | 167,560 | | 221,179 |
Starent Networks Corp. (a) | 591,177 | | 8,690,302 |
Tellabs, Inc. (a) | 182,400 | | 753,312 |
| | 69,648,855 |
COMPUTERS & PERIPHERALS - 9.7% |
Computer Hardware - 7.9% |
3PAR, Inc. (a) | 5,900 | | 50,091 |
Apple, Inc. (a) | 77,355 | | 6,972,006 |
Dell, Inc. (a) | 323,200 | | 3,070,400 |
Hewlett-Packard Co. | 314,500 | | 10,928,875 |
HTC Corp. | 105,180 | | 993,228 |
NCR Corp. (a) | 95,000 | | 1,192,250 |
Palm, Inc. (a)(d) | 96,800 | | 742,456 |
Stratasys, Inc. (a)(d) | 108,790 | | 1,165,141 |
| | 25,114,447 |
Computer Storage & Peripherals - 1.8% |
Chicony Electronics Co. Ltd. | 332,390 | | 298,626 |
EMC Corp. (a) | 142,600 | | 1,574,304 |
SanDisk Corp. (a) | 41,948 | | 479,466 |
Seagate Technology | 599,800 | | 2,273,242 |
Synaptics, Inc. (a)(d) | 29,700 | | 700,029 |
Western Digital Corp. (a) | 24,500 | | 359,660 |
| | 5,685,327 |
TOTAL COMPUTERS & PERIPHERALS | | 30,799,774 |
|
| Shares | | Value |
CONSTRUCTION & ENGINEERING - 0.1% |
Construction & Engineering - 0.1% |
Dycom Industries, Inc. (a) | 40,900 | | $ 278,529 |
MasTec, Inc. (a) | 14,500 | | 154,135 |
| | 432,664 |
DIVERSIFIED CONSUMER SERVICES - 0.0% |
Education Services - 0.0% |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 600 | | 28,704 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1% |
Integrated Telecommunication Services - 0.1% |
Vimpel Communications sponsored ADR | 65,100 | | 396,459 |
ELECTRICAL EQUIPMENT - 1.5% |
Electrical Components & Equipment - 1.5% |
centrotherm photovoltaics AG (a)(d) | 1,273 | | 24,594 |
Energy Conversion Devices, Inc. (a)(d) | 20,400 | | 513,468 |
First Solar, Inc. (a) | 4,514 | | 644,599 |
General Cable Corp. (a)(d) | 69,600 | | 1,145,616 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 108,400 | | 288,344 |
Neo-Neon Holdings Ltd. | 3,757,000 | | 565,653 |
Q-Cells SE (a) | 1,200 | | 29,498 |
Roth & Rau AG | 1,516 | | 25,252 |
Sunpower Corp. Class B (a) | 32,844 | | 867,738 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 37,700 | | 354,757 |
Yingli Green Energy Holding Co. Ltd. ADR (a) | 25,800 | | 144,222 |
| | 4,603,741 |
ELECTRONIC EQUIPMENT & COMPONENTS - 6.3% |
Electronic Components - 0.7% |
Amphenol Corp. Class A | 55,700 | | 1,456,555 |
Everlight Electronics Co. Ltd. | 587,376 | | 775,980 |
Vishay Intertechnology, Inc. (a) | 51,200 | | 151,552 |
| | 2,384,087 |
Electronic Equipment & Instruments - 1.0% |
Agilent Technologies, Inc. (a) | 9,100 | | 164,528 |
China Security & Surveillance Technology, Inc. (a)(d) | 161,734 | | 889,537 |
Chroma ATE, Inc. | 1,191,316 | | 629,948 |
Comverge, Inc. (a) | 10,189 | | 46,768 |
Coretronic Corp. | 270,300 | | 144,273 |
FLIR Systems, Inc. (a) | 21,700 | | 541,849 |
Mettler-Toledo International, Inc. (a) | 3,700 | | 246,346 |
National Instruments Corp. | 18,700 | | 401,489 |
| | 3,064,738 |
Electronic Manufacturing Services - 1.3% |
Flextronics International Ltd. (a) | 614,000 | | 1,602,540 |
Ju Teng International Holdings Ltd. (a) | 1,328,000 | | 314,073 |
Molex, Inc. | 16,400 | | 219,268 |
Multi-Fineline Electronix, Inc. (a) | 27,589 | | 511,224 |
Common Stocks - continued |
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED |
Electronic Manufacturing Services - continued |
Trimble Navigation Ltd. (a) | 68,400 | | $ 1,013,688 |
Tyco Electronics Ltd. | 30,600 | | 433,296 |
| | 4,094,089 |
Technology Distributors - 3.3% |
Anixter International, Inc. (a) | 12,100 | | 326,458 |
Arrow Electronics, Inc. (a) | 100,700 | | 1,920,349 |
Avnet, Inc. (a) | 163,600 | | 3,242,552 |
Ingram Micro, Inc. Class A (a) | 216,200 | | 2,652,774 |
Synnex Technology International Corp. | 956,000 | | 1,063,582 |
WPG Holding Co. Ltd. | 2,238,000 | | 1,175,938 |
| | 10,381,653 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 19,924,567 |
ENERGY EQUIPMENT & SERVICES - 0.0% |
Oil & Gas Equipment & Services - 0.0% |
IHS, Inc. Class A (a) | 1,100 | | 48,180 |
HEALTH CARE EQUIPMENT & SUPPLIES - 1.4% |
Health Care Equipment - 1.0% |
China Medical Technologies, Inc. sponsored ADR (d) | 72,900 | | 1,118,286 |
Golden Meditech Co. Ltd. (a) | 2,168,000 | | 197,222 |
I-Flow Corp. (a) | 77,610 | | 318,977 |
Mindray Medical International Ltd. sponsored ADR | 200 | | 4,132 |
Mingyuan Medicare Development Co. Ltd. (d) | 33,580,000 | | 1,575,017 |
| | 3,213,634 |
Health Care Supplies - 0.4% |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 730,000 | | 1,241,657 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 4,455,291 |
HEALTH CARE PROVIDERS & SERVICES - 0.0% |
Health Care Services - 0.0% |
athenahealth, Inc. (a) | 600 | | 21,648 |
HOTELS, RESTAURANTS & LEISURE - 0.0% |
Hotels, Resorts & Cruise Lines - 0.0% |
Ctrip.com International Ltd. sponsored ADR | 1,200 | | 25,188 |
HOUSEHOLD DURABLES - 0.0% |
Consumer Electronics - 0.0% |
TomTom Group BV (a) | 100 | | 534 |
INTERNET & CATALOG RETAIL - 0.8% |
Internet Retail - 0.8% |
Amazon.com, Inc. | 13,300 | | 782,306 |
|
| Shares | | Value |
Expedia, Inc. (a) | 112,760 | | $ 1,006,947 |
Priceline.com, Inc. (a) | 9,612 | | 644,869 |
| | 2,434,122 |
INTERNET SOFTWARE & SERVICES - 6.2% |
Internet Software & Services - 6.2% |
Ariba, Inc. (a) | 148,308 | | 1,133,073 |
Constant Contact, Inc. (a) | 8,924 | | 136,269 |
DealerTrack Holdings, Inc. (a) | 12,300 | | 140,097 |
eBay, Inc. (a) | 95,000 | | 1,141,900 |
Equinix, Inc. (a)(d) | 36,000 | | 1,920,600 |
Google, Inc. Class A (sub. vtg.) (a) | 30,200 | | 10,223,606 |
Omniture, Inc. (a) | 34,800 | | 316,332 |
Rackspace Hosting, Inc. | 38,391 | | 188,116 |
SAVVIS, Inc. (a) | 8,900 | | 56,782 |
Switch & Data Facilities Co., Inc. (a) | 12,600 | | 86,688 |
Tencent Holdings Ltd. | 148,000 | | 904,328 |
VeriSign, Inc. (a) | 85,400 | | 1,649,074 |
Yahoo!, Inc. (a) | 136,400 | | 1,599,972 |
| | 19,496,837 |
IT SERVICES - 4.0% |
Data Processing & Outsourced Services - 3.6% |
CyberSource Corp. (a) | 31,895 | | 380,507 |
Lender Processing Services, Inc. | 42,400 | | 1,099,008 |
MasterCard, Inc. Class A | 17,400 | | 2,362,572 |
Visa, Inc. | 154,000 | | 7,599,900 |
| | 11,441,987 |
IT Consulting & Other Services - 0.4% |
China Information Security Technology, Inc. (a)(d) | 8,917 | | 27,286 |
SAIC, Inc. (a) | 26,800 | | 529,032 |
Satyam Computer Services Ltd. sponsored ADR | 11,600 | | 22,040 |
Yucheng Technologies Ltd. (a) | 135,000 | | 591,300 |
| | 1,169,658 |
TOTAL IT SERVICES | | 12,611,645 |
LIFE SCIENCES TOOLS & SERVICES - 0.1% |
Life Sciences Tools & Services - 0.1% |
Thermo Fisher Scientific, Inc. (a) | 4,100 | | 147,313 |
MACHINERY - 0.4% |
Industrial Machinery - 0.4% |
China Fire & Security Group, Inc. (a)(d) | 24,900 | | 164,838 |
Meyer Burger Technology AG (a) | 270 | | 20,601 |
Shin Zu Shing Co. Ltd. | 438,424 | | 961,351 |
| | 1,146,790 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - 1.4% |
Advertising - 1.4% |
AirMedia Group, Inc. ADR (a) | 89,400 | | $ 440,742 |
VisionChina Media, Inc. ADR (a)(d) | 617,500 | | 3,816,150 |
| | 4,256,892 |
METALS & MINING - 0.0% |
Diversified Metals & Mining - 0.0% |
Timminco Ltd. (a) | 5,600 | | 15,806 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 25.1% |
Semiconductor Equipment - 8.9% |
Aixtron AG | 1,800 | | 9,310 |
Amkor Technology, Inc. (a) | 72,300 | | 167,736 |
Applied Materials, Inc. | 154,300 | | 1,445,791 |
ASML Holding NV (NY Shares) | 534,300 | | 8,837,322 |
Cymer, Inc. (a) | 101,200 | | 2,064,480 |
FormFactor, Inc. (a) | 63,400 | | 986,504 |
Global Unichip Corp. | 68,675 | | 252,902 |
Inotera Memories, Inc. (a) | 2,548,000 | | 775,343 |
Lam Research Corp. (a) | 198,500 | | 4,011,685 |
LTX-Credence Corp. (a) | 497,102 | | 144,160 |
MEMC Electronic Materials, Inc. (a) | 80,900 | | 1,100,240 |
Photronics, Inc. (a) | 82,700 | | 131,493 |
Tessera Technologies, Inc. (a) | 172,900 | | 2,033,304 |
Varian Semiconductor Equipment Associates, Inc. (a) | 248,900 | | 4,739,056 |
Verigy Ltd. (a) | 165,200 | | 1,372,812 |
| | 28,072,138 |
Semiconductors - 16.2% |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 625,980 | | 1,001,568 |
Applied Micro Circuits Corp. (a) | 8,650 | | 34,600 |
ARM Holdings PLC sponsored ADR | 219,200 | | 878,992 |
Atheros Communications, Inc. (a) | 72,400 | | 869,524 |
Atmel Corp. (a) | 257,400 | | 859,716 |
AuthenTec, Inc. (a) | 43,400 | | 72,044 |
Cavium Networks, Inc. (a) | 415,631 | | 3,782,242 |
Cree, Inc. (a)(d) | 137,650 | | 2,743,365 |
Cypress Semiconductor Corp. (a)(d) | 274,700 | | 1,238,897 |
Diodes, Inc. (a) | 39,100 | | 253,368 |
Elan Microelectronics Corp. | 195,000 | | 141,131 |
ENE Technology, Inc. | 69,415 | | 65,437 |
Epistar Corp. | 742,000 | | 671,953 |
Fairchild Semiconductor International, Inc. (a) | 316,600 | | 1,440,530 |
Hynix Semiconductor, Inc. (a) | 82,830 | | 522,720 |
Integrated Device Technology, Inc. (a) | 17,300 | | 99,302 |
Intel Corp. | 480,600 | | 6,199,740 |
International Rectifier Corp. (a) | 250,400 | | 3,410,448 |
Intersil Corp. Class A | 65,700 | | 611,667 |
LSI Corp. (a) | 323,800 | | 1,029,684 |
Marvell Technology Group Ltd. (a) | 397,400 | | 2,897,046 |
Maxim Integrated Products, Inc. | 74,900 | | 990,927 |
|
| Shares | | Value |
Micron Technology, Inc. (a) | 1,351,300 | | $ 5,026,836 |
Microsemi Corp. (a) | 28,700 | | 241,080 |
Monolithic Power Systems, Inc. (a) | 27,700 | | 336,555 |
MoSys, Inc. (a) | 32,100 | | 66,768 |
National Semiconductor Corp. | 182,700 | | 1,852,578 |
Netlogic Microsystems, Inc. (a) | 15,600 | | 330,876 |
NVIDIA Corp. (a) | 286,800 | | 2,280,060 |
PMC-Sierra, Inc. (a) | 138,300 | | 673,521 |
Power Integrations, Inc. | 16,600 | | 323,202 |
Powertech Technology, Inc. | 239,000 | | 323,000 |
Samsung Electronics Co. Ltd. | 7,064 | | 2,452,774 |
Semtech Corp. (a) | 8,900 | | 104,575 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 266,400 | | 1,100,232 |
SiRF Technology Holdings, Inc. (a) | 102,200 | | 104,244 |
Skyworks Solutions, Inc. (a) | 187,400 | | 809,568 |
Standard Microsystems Corp. (a) | 22,400 | | 310,240 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,496,000 | | 1,829,041 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 224,700 | | 1,694,238 |
Texas Instruments, Inc. | 105,400 | | 1,575,730 |
TriQuint Semiconductor, Inc. (a) | 31,500 | | 63,630 |
Volterra Semiconductor Corp. (a) | 8,300 | | 58,100 |
| | 51,371,749 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 79,443,887 |
SOFTWARE - 16.1% |
Application Software - 6.4% |
Ansys, Inc. (a) | 5,900 | | 146,674 |
Autodesk, Inc. (a) | 1,800 | | 29,808 |
Autonomy Corp. PLC (a) | 118,000 | | 1,871,382 |
Blackboard, Inc. (a) | 6,700 | | 170,247 |
Cadence Design Systems, Inc. (a) | 951,200 | | 3,595,536 |
Callidus Software, Inc. (a) | 107,291 | | 281,102 |
Citrix Systems, Inc. (a) | 34,500 | | 725,880 |
Concur Technologies, Inc. (a) | 43,900 | | 1,083,891 |
Epicor Software Corp. (a) | 31,500 | | 111,510 |
Informatica Corp. (a) | 49,500 | | 631,620 |
Kingdee International Software Group Co. Ltd. | 3,226,000 | | 288,104 |
Longtop Financial Technologies Ltd. ADR (a) | 54,300 | | 763,458 |
Nuance Communications, Inc. (a)(d) | 17,300 | | 170,578 |
Parametric Technology Corp. (a) | 79,900 | | 719,100 |
Salesforce.com, Inc. (a) | 116,400 | | 3,097,404 |
Smith Micro Software, Inc. (a) | 204,100 | | 1,081,730 |
SuccessFactors, Inc. (a) | 228,800 | | 1,539,824 |
Synchronoss Technologies, Inc. (a) | 141,048 | | 1,200,318 |
Synopsys, Inc. (a) | 1,700 | | 31,450 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Application Software - continued |
Taleo Corp. Class A (a) | 76,988 | | $ 649,009 |
Ulticom, Inc. (a) | 359,426 | | 2,066,700 |
| | 20,255,325 |
Home Entertainment Software - 2.3% |
Activision Blizzard, Inc. (a) | 15,000 | | 131,400 |
Nintendo Co. Ltd. | 13,200 | | 3,843,840 |
Perfect World Co. Ltd. sponsored ADR Class B (a)(d) | 213,300 | | 3,158,973 |
THQ, Inc. (a) | 49,400 | | 195,130 |
| | 7,329,343 |
Systems Software - 7.4% |
BMC Software, Inc. (a) | 18,600 | | 471,138 |
CA, Inc. | 91,800 | | 1,651,482 |
Check Point Software Technologies Ltd. (a) | 1,700 | | 38,539 |
Insyde Software Corp. | 881,239 | | 1,574,951 |
McAfee, Inc. (a) | 38,500 | | 1,173,865 |
Microsoft Corp. | 646,200 | | 11,050,020 |
Oracle Corp. (a) | 9,400 | | 158,202 |
Phoenix Technologies Ltd. (a) | 55,900 | | 144,222 |
Red Hat, Inc. (a) | 106,100 | | 1,554,365 |
Symantec Corp. (a) | 322,400 | | 4,942,392 |
VMware, Inc. Class A (a) | 24,600 | | 509,220 |
| | 23,268,396 |
TOTAL SOFTWARE | | 50,853,064 |
SPECIALTY RETAIL - 0.1% |
Computer & Electronics Retail - 0.1% |
The Game Group PLC | 162,100 | | 337,208 |
WIRELESS TELECOMMUNICATION SERVICES - 2.3% |
Wireless Telecommunication Services - 2.3% |
American Tower Corp. Class A (a) | 96,100 | | 2,915,674 |
Crown Castle International Corp. (a) | 64,200 | | 1,253,184 |
SBA Communications Corp. Class A (a) | 161,200 | | 3,207,880 |
| | 7,376,738 |
TOTAL COMMON STOCKS (Cost $454,324,609) | 308,505,907 |
Convertible Bonds - 0.9% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.2% |
Communications Equipment - 0.2% |
Ciena Corp. 0.25% 5/1/13 | | $ 1,270,000 | | 719,709 |
|
| Principal Amount | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.7% |
Semiconductors - 0.7% |
Advanced Micro Devices, Inc. 5.75% 8/15/12 | | $ 6,960,000 | | $ 2,166,300 |
TOTAL CONVERTIBLE BONDS (Cost $6,651,091) | 2,886,009 |
Money Market Funds - 4.6% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,530,154 | | 1,530,154 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 12,968,492 | | 12,968,492 |
TOTAL MONEY MARKET FUNDS (Cost $14,498,646) | 14,498,646 |
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $475,474,346) | | 325,890,562 |
NET OTHER ASSETS - (3.1)% | | (9,730,521) |
NET ASSETS - 100% | $ 316,160,041 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $320,960 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
OZ Optics Ltd. unit | 8/18/00 | $ 1,003,680 |
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 | $ 87,233 |
Fidelity Securities Lending Cash Central Fund | 653,139 |
Total | $ 740,372 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 325,890,562 | $ 298,893,065 | $ 26,676,537 | $ 320,960 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ 821,100 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (500,140) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 320,960 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 79.8% |
Taiwan | 4.6% |
Cayman Islands | 4.3% |
Netherlands | 2.8% |
Bermuda | 1.5% |
Canada | 1.4% |
Japan | 1.2% |
United Kingdom | 1.0% |
Korea (South) | 1.0% |
Others (individually less than 1%) | 2.4% |
| 100.0% |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $1,389,526,620 of which $889,719,837 and $499,806,783 will expire on July 31, 2010 and 2011, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $44,009,554 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Technology Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $12,135,460) - See accompanying schedule: Unaffiliated issuers (cost $460,975,700) | $ 311,391,916 | |
Fidelity Central Funds (cost $14,498,646) | 14,498,646 | |
Total Investments (cost $475,474,346) | | $ 325,890,562 |
Foreign currency held at value (cost $153) | | 151 |
Receivable for investments sold | | 21,982,875 |
Receivable for fund shares sold | | 390,092 |
Dividends receivable | | 46,270 |
Interest receivable | | 184,210 |
Distributions receivable from Fidelity Central Funds | | 52,015 |
Prepaid expenses | | 4,201 |
Other receivables | | 16,243 |
Total assets | | 348,566,619 |
| | |
Liabilities | | |
Payable for investments purchased | $ 18,408,579 | |
Payable for fund shares redeemed | 625,945 | |
Accrued management fee | 154,057 | |
Distribution fees payable | 121,496 | |
Other affiliated payables | 90,100 | |
Other payables and accrued expenses | 37,909 | |
Collateral on securities loaned, at value | 12,968,492 | |
Total liabilities | | 32,406,578 |
| | |
Net Assets | | $ 316,160,041 |
Net Assets consist of: | | |
Paid in capital | | $ 2,095,684,313 |
Accumulated net investment loss | | (691,382) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,629,248,138) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (149,584,752) |
Net Assets | | $ 316,160,041 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($155,435,941 ÷ 15,640,368 shares) | | $ 9.94 |
| | |
Maximum offering price per share (100/94.25 of $9.94) | | $ 10.55 |
Class T:
Net Asset Value and redemption price per share ($92,672,253 ÷ 9,574,410 shares) | | $ 9.68 |
| | |
Maximum offering price per share (100/96.50 of $9.68) | | $ 10.03 |
Class B:
Net Asset Value and offering price per share ($22,415,913 ÷ 2,454,599 shares)A | | $ 9.13 |
| | |
Class C:
Net Asset Value and offering price per share ($33,450,854 ÷ 3,647,091 shares)A | | $ 9.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,185,080 ÷ 1,180,552 shares) | | $ 10.32 |
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.
Technology
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,055,834 |
Interest | | 370,028 |
Income from Fidelity Central Funds (including $653,139 from security lending) | | 740,372 |
Total income | | 2,166,234 |
| | |
Expenses | | |
Management fee | $ 1,168,163 | |
Transfer agent fees | 606,800 | |
Distribution fees | 939,806 | |
Accounting and security lending fees | 83,187 | |
Custodian fees and expenses | 42,218 | |
Independent trustees' compensation | 1,250 | |
Registration fees | 42,585 | |
Audit | 29,050 | |
Legal | 4,518 | |
Miscellaneous | 48,108 | |
Total expenses before reductions | 2,965,685 | |
Expense reductions | (30,307) | 2,935,378 |
Net investment income (loss) | | (769,144) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (194,003,833) | |
Foreign currency transactions | (41,837) | |
Total net realized gain (loss) | | (194,045,670) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (43,287,844) | |
Assets and liabilities in foreign currencies | 14,072 | |
Total change in net unrealized appreciation (depreciation) | | (43,273,772) |
Net gain (loss) | | (237,319,442) |
Net increase (decrease) in net assets resulting from operations | | $ (238,088,586) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (769,144) | $ (5,177,940) |
Net realized gain (loss) | (194,045,670) | (11,273,810) |
Change in net unrealized appreciation (depreciation) | (43,273,772) | (114,740,676) |
Net increase (decrease) in net assets resulting from operations | (238,088,586) | (131,192,426) |
Share transactions - net increase (decrease) | (27,700,615) | (67,084,453) |
Redemption fees | 10,002 | 32,772 |
Total increase (decrease) in net assets | (265,779,199) | (198,244,107) |
| | |
Net Assets | | |
Beginning of period | 581,939,240 | 780,183,347 |
End of period (including accumulated net investment loss of $691,382 and undistributed net investment income of $77,762, respectively) | $ 316,160,041 | $ 581,939,240 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 | $ 13.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.17) | (.15) | .02 H | (.17) |
Net realized and unrealized gain (loss) | (7.09) | (3.41) | 5.13 | (.42) | 2.24 | .79 |
Total from investment operations | (7.10) | (3.51) | 4.96 | (.57) | 2.26 | .62 |
Distributions from net investment income | - | - | - | - | (.08) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.94 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 |
Total Return B, C, D | (41.67)% | (17.08)% | 31.82% | (3.53)% | 16.20% | 4.64% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.22% A | 1.21% | 1.25% | 1.30% | 1.37% | 1.44% |
Expenses net of fee waivers, if any | 1.22% A | 1.21% | 1.25% | 1.30% | 1.37% | 1.44% |
Expenses net of all reductions | 1.21% A | 1.19% | 1.24% | 1.20% | 1.26% | 1.35% |
Net investment income (loss) | (.17)% A | (.49)% | (.91)% | (.88)% | .12% H | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 155,436 | $ 275,117 | $ 309,105 | $ 189,054 | $ 144,970 | $ 123,389 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 | $ 13.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.14) | (.21) | (.19) | (.02) H | (.19) |
Net realized and unrealized gain (loss) | (6.91) | (3.33) | 5.02 | (.41) | 2.21 | .78 |
Total from investment operations | (6.94) | (3.47) | 4.81 | (.60) | 2.19 | .59 |
Distributions from net investment income | - | - | - | - | (.07) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.68 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 |
Total Return B, C, D | (41.76)% | (17.27)% | 31.48% | (3.78)% | 15.94% | 4.48% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.48% A | 1.46% | 1.51% | 1.55% | 1.60% | 1.62% |
Expenses net of fee waivers, if any | 1.48% A | 1.46% | 1.51% | 1.55% | 1.60% | 1.62% |
Expenses net of all reductions | 1.46% A | 1.45% | 1.49% | 1.44% | 1.48% | 1.53% |
Net investment income (loss) | (.42)% A | (.74)% | (1.16)% | (1.13)% | (.11)% H | (1.28)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 92,672 | $ 173,917 | $ 260,339 | $ 260,966 | $ 315,930 | $ 363,399 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been (1.10)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Technology
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 | $ 12.76 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.23) | (.28) | (.27) | (.09) H | (.27) |
Net realized and unrealized gain (loss) | (6.54) | (3.15) | 4.79 | (.38) | 2.12 | .76 |
Total from investment operations | (6.59) | (3.38) | 4.51 | (.65) | 2.03 | .49 |
Distributions from net investment income | - | - | - | - | (.04) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.13 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 |
Total Return B, C, D | (41.92)% | (17.70)% | 30.91% | (4.27) % | 15.33% | 3.84% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.97% A | 1.96% | 2.01% | 2.05% | 2.13% | 2.21% |
Expenses net of fee waivers, if any | 1.97% A | 1.96% | 2.01% | 2.05% | 2.13% | 2.21% |
Expenses net of all reductions | 1.96% A | 1.94% | 2.00% | 1.94% | 2.02% | 2.12% |
Net investment income (loss) | (.91)% A | (1.24)% | (1.67)% | (1.63)% | (.65)% H | (1.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,416 | $ 47,294 | $ 102,655 | $ 192,790 | $ 309,020 | $ 355,927 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.64)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.23) | (.29) | (.27) | (.08) H | (.26) |
Net realized and unrealized gain (loss) | (6.57) | (3.16) | 4.81 | (.38) | 2.12 | .77 |
Total from investment operations | (6.62) | (3.39) | 4.52 | (.65) | 2.04 | .51 |
Distributions from net investment income | - | - | - | - | (.04) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.17 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 |
Total Return B, C, D | (41.93)% | (17.67)% | 30.83% | (4.25)% | 15.34% | 3.98% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.97% A | 1.96% | 2.01% | 2.05% | 2.10% | 2.13% |
Expenses net of fee waivers, if any | 1.97% A | 1.96% | 2.01% | 2.05% | 2.10% | 2.13% |
Expenses net of all reductions | 1.96% A | 1.94% | 1.99% | 1.94% | 1.99% | 2.04% |
Net investment income (loss) | (.91)% A | (1.24)% | (1.66)% | (1.63)% | (.61)% H | (1.79)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 33,451 | $ 63,590 | $ 86,974 | $ 82,835 | $ 108,287 | $ 125,926 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 | $ 13.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | (.04) | (.11) | (.09) | .09 G | (.09) |
Net realized and unrealized gain (loss) | (7.37) | (3.54) | 5.30 | (.44) | 2.30 | .80 |
Total from investment operations | (7.36) | (3.58) | 5.19 | (.53) | 2.39 | .71 |
Distributions from net investment income | - | - | - | - | (.11) | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.32 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 |
Total Return B, C | (41.63)% | (16.84)% | 32.30% | (3.19)% | 16.73% | 5.22% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .98% A | .94% | .93% | .90% | .92% | .93% |
Expenses net of fee waivers, if any | .98% A | .94% | .93% | .90% | .92% | .93% |
Expenses net of all reductions | .96% A | .92% | .92% | .80% | .81% | .84% |
Net investment income (loss) | .08% A | (.22)% | (.59)% | (.49)% | .57% G | (.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,185 | $ 22,021 | $ 21,111 | $ 11,681 | $ 11,640 | $ 10,984 |
Portfolio turnover rate F | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.42)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Technology
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Technology Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 5,704,976 |
Unrealized depreciation | (162,985,892) |
Net unrealized appreciation (depreciation) | $ (157,280,916) |
Cost for federal income tax purposes | $ 483,171,478 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Technology
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $584,617,488 and $610,923,467, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 249,328 | $ 5,725 |
Class T | .25% | .25% | 307,908 | - |
Class B | .75% | .25% | 158,818 | 119,113 |
Class C | .75% | .25% | 223,752 | 10,269 |
| | | $ 939,806 | $ 135,107 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,708 |
Class T | 7,199 |
Class B* | 32,168 |
Class C* | 1,193 |
| $ 52,268 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 289,830 | .29 |
Class T | 182,762 | .30 |
Class B | 46,214 | .29 |
Class C | 65,255 | .29 |
Institutional Class | 22,739 | .29 |
| $ 606,800 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $16,478 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $542 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $29,176 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $967. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 75 |
Institutional Class | 89 |
| $ 164 |
Technology
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,603,231 | 5,381,278 | $ 19,994,395 | $ 105,720,351 |
Shares redeemed | (2,104,251) | (4,279,571) | (25,419,813) | (82,236,119) |
Net increase (decrease) | (501,020) | 1,101,707 | $ (5,425,418) | $ 23,484,232 |
Class T | | | | |
Shares sold | 638,606 | 2,146,310 | $ 7,650,614 | $ 41,674,472 |
Shares redeemed | (1,527,668) | (4,638,425) | (18,142,100) | (86,554,961) |
Net increase (decrease) | (889,062) | (2,492,115) | $ (10,491,486) | $ (44,880,489) |
Class B | | | | |
Shares sold | 137,258 | 406,127 | $ 1,502,922 | $ 7,558,898 |
Shares redeemed | (691,010) | (2,773,060) | (8,007,024) | (50,298,253) |
Net increase (decrease) | (553,752) | (2,366,933) | $ (6,504,102) | $ (42,739,355) |
Class C | | | | |
Shares sold | 165,052 | 550,177 | $ 1,869,483 | $ 10,400,107 |
Shares redeemed | (545,403) | (1,056,703) | (6,105,451) | (18,857,821) |
Net increase (decrease) | (380,351) | (506,526) | $ (4,235,968) | $ (8,457,714) |
Institutional Class | | | | |
Shares sold | 194,456 | 628,983 | $ 2,437,124 | $ 12,989,931 |
Shares redeemed | (259,444) | (376,415) | (3,480,765) | (7,481,058) |
Net increase (decrease) | (64,988) | 252,568 | $ (1,043,641) | $ 5,508,873 |
Semiannual Report
Advisor Utilities Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 726.00 | $ 5.44 |
Hypothetical A | | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% | | | |
Actual | | $ 1,000.00 | $ 725.80 | $ 6.57 |
Hypothetical A | | $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 724.00 | $ 8.65 |
Hypothetical A | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 724.00 | $ 8.65 |
Hypothetical A | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Institutional Class | .99% | | | |
Actual | | $ 1,000.00 | $ 727.50 | $ 4.31 |
Hypothetical A | | $ 1,000.00 | $ 1,020.21 | $ 5.04 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exelon Corp. | 11.4 | 9.5 |
FirstEnergy Corp. | 6.6 | 4.9 |
Public Service Enterprise Group, Inc. | 6.5 | 3.9 |
Progress Energy, Inc. | 6.1 | 0.0 |
Entergy Corp. | 5.7 | 6.0 |
American Electric Power Co., Inc. | 4.9 | 4.2 |
Sempra Energy | 4.9 | 5.0 |
PPL Corp. | 4.6 | 10.9 |
PG&E Corp. | 4.0 | 2.0 |
Wisconsin Energy Corp. | 3.8 | 0.0 |
| 58.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Electric Utilities | 58.9% | |
| Multi-utilities | 26.5% | |
| Independent Power Producers & Energy Traders | 9.0% | |
| Gas Utilities | 4.7% | |
| Diversified
Financial Services | 0.3% | |
| All Others* | 0.6% | |
|
As of July 31, 2008 |
| Electric Utilities | 54.3% | |
| Independent Power Producers & Energy Traders | 18.0% | |
| Multi-utilities | 14.1% | |
| Gas Utilities | 4.0% | |
| Electronic Equipment & Instruments | 0.4% | |
| All Others* | 9.2% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Utilities Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% |
| Shares | | Value |
DIVERSIFIED FINANCIAL SERVICES - 0.3% |
Other Diversifed Financial Services - 0.3% |
Hicks Acquisition Co. I, Inc. unit (a) | 39,200 | | $ 361,424 |
ELECTRIC UTILITIES - 58.9% |
Electric Utilities - 58.9% |
Allegheny Energy, Inc. | 91,700 | | 3,048,108 |
American Electric Power Co., Inc. | 226,700 | | 7,107,045 |
DPL, Inc. | 134,500 | | 2,898,475 |
Edison International | 108,200 | | 3,524,074 |
Entergy Corp. | 107,000 | | 8,170,520 |
Exelon Corp. | 305,000 | | 16,537,099 |
FirstEnergy Corp. | 191,800 | | 9,588,082 |
FPL Group, Inc. | 90,800 | | 4,680,740 |
Northeast Utilities | 182,300 | | 4,338,740 |
NV Energy, Inc. | 341,800 | | 3,667,514 |
Pepco Holdings, Inc. | 123,300 | | 2,195,973 |
Pinnacle West Capital Corp. | 65,300 | | 2,185,591 |
PPL Corp. | 218,075 | | 6,686,180 |
Progress Energy, Inc. | 227,500 | | 8,808,800 |
Southern Co. | 41,100 | | 1,374,795 |
Westar Energy, Inc. | 28,200 | | 566,256 |
| | 85,377,992 |
GAS UTILITIES - 4.7% |
Gas Utilities - 4.7% |
AGL Resources, Inc. | 29,200 | | 900,236 |
Equitable Resources, Inc. | 71,300 | | 2,440,599 |
Nicor, Inc. | 20,000 | | 684,200 |
Questar Corp. | 82,100 | | 2,789,758 |
Southwest Gas Corp. | 2,200 | | 56,672 |
| | 6,871,465 |
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 9.0% |
Independent Power Producers & Energy Traders - 9.0% |
AES Corp. (a) | 321,000 | | 2,539,110 |
Constellation Energy Group, Inc. | 136,000 | | 3,576,800 |
Dynegy, Inc. Class A (a) | 502,300 | | 1,059,853 |
Mirant Corp. (a) | 171,100 | | 2,937,787 |
|
| Shares | | Value |
NRG Energy, Inc. (a) | 97,100 | | $ 2,268,256 |
Reliant Energy, Inc. (a) | 142,900 | | 727,361 |
| | 13,109,167 |
MULTI-UTILITIES - 26.5% |
Multi-Utilities - 26.5% |
CMS Energy Corp. | 239,800 | | 2,817,650 |
Dominion Resources, Inc. | 103,600 | | 3,644,648 |
NiSource, Inc. | 173,700 | | 1,681,416 |
OGE Energy Corp. | 99,900 | | 2,465,532 |
PG&E Corp. | 151,804 | | 5,870,261 |
Public Service Enterprise Group, Inc. | 299,380 | | 9,451,427 |
Sempra Energy | 161,000 | | 7,058,240 |
Wisconsin Energy Corp. | 122,800 | | 5,474,424 |
| | 38,463,598 |
OIL, GAS & CONSUMABLE FUELS - 0.2% |
Oil & Gas Storage & Transport - 0.2% |
Southern Union Co. | 27,300 | | 351,897 |
TOTAL COMMON STOCKS (Cost $173,219,922) | 144,535,543 |
Money Market Funds - 0.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $703,937) | 703,937 | | 703,937 |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $173,923,859) | | 145,239,480 |
NET OTHER ASSETS - (0.1)% | | (211,288) |
NET ASSETS - 100% | $ 145,028,192 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 78,053 |
Fidelity Securities Lending Cash Central Fund | 18,651 |
Total | $ 96,704 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 145,239,480 | $ 145,239,480 | $ - | $ - |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $232,998,756 of which $78,586,224 and $154,412,532 will expire on July 31, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Advisor Utilities Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $173,219,922) | $ 144,535,543 | |
Fidelity Central Funds (cost $703,937) | 703,937 | |
Total Investments (cost $173,923,859) | | $ 145,239,480 |
Receivable for investments sold | | 4,406,741 |
Receivable for fund shares sold | | 82,376 |
Dividends receivable | | 261,235 |
Distributions receivable from Fidelity Central Funds | | 2,048 |
Prepaid expenses | | 1,635 |
Total assets | | 149,993,515 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,463,847 | |
Payable for fund shares redeemed | 307,510 | |
Accrued management fee | 69,467 | |
Distribution fees payable | 60,202 | |
Other affiliated payables | 40,886 | |
Other payables and accrued expenses | 23,411 | |
Total liabilities | | 4,965,323 |
| | |
Net Assets | | $ 145,028,192 |
Net Assets consist of: | | |
Paid in capital | | $ 438,297,270 |
Distributions in excess of net investment income | | (72,039) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (264,512,660) |
Net unrealized appreciation (depreciation) on investments | | (28,684,379) |
Net Assets | | $ 145,028,192 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($70,001,889 ÷ 4,832,738 shares) | | $ 14.48 |
| | |
Maximum offering price per share (100/94.25 of $14.48) | | $ 15.36 |
Class T:
Net Asset Value and redemption price per share ($35,904,676 ÷ 2,475,209 shares) | | $ 14.51 |
| | |
Maximum offering price per share (100/96.50 of $14.51) | | $ 15.04 |
Class B:
Net Asset Value and offering price per share ($12,004,016 ÷ 836,096 shares)A | | $ 14.36 |
| | |
Class C:
Net Asset Value and offering price per share ($23,631,177 ÷ 1,653,049 shares)A | | $ 14.30 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($3,486,434 ÷ 237,246 shares) | | $ 14.70 |
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.
Utilities
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,724,271 |
Interest | | 2,527 |
Income from Fidelity Central Funds | | 96,704 |
Total income | | 2,823,502 |
| | |
Expenses | | |
Management fee | $ 463,935 | |
Transfer agent fees | 246,247 | |
Distribution fees | 406,491 | |
Accounting and security lending fees | 32,895 | |
Custodian fees and expenses | 3,791 | |
Independent trustees' compensation | 495 | |
Registration fees | 38,100 | |
Audit | 23,185 | |
Legal | 1,840 | |
Miscellaneous | 11,093 | |
Total expenses before reductions | 1,228,072 | |
Expense reductions | (1,073) | 1,226,999 |
Net investment income (loss) | | 1,596,503 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (31,383,827) | |
Foreign currency transactions | 16,246 | |
Total net realized gain (loss) | | (31,367,581) |
Change in net unrealized appreciation (depreciation) on investment securities | | (30,376,331) |
Net gain (loss) | | (61,743,912) |
Net increase (decrease) in net assets resulting from operations | | $ (60,147,409) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,596,503 | $ 2,259,007 |
Net realized gain (loss) | (31,367,581) | 15,062,436 |
Change in net unrealized appreciation (depreciation) | (30,376,331) | (20,022,346) |
Net increase (decrease) in net assets resulting from operations | (60,147,409) | (2,700,903) |
Distributions to shareholders from net investment income | (2,162,851) | (2,837,541) |
Share transactions - net increase (decrease) | (16,066,498) | (28,461,258) |
Redemption fees | 2,130 | 9,517 |
Total increase (decrease) in net assets | (78,374,628) | (33,990,185) |
| | |
Net Assets | | |
Beginning of period | 223,402,820 | 257,393,005 |
End of period (including distributions in excess of net investment income of $72,039 and undistributed net investment income of $494,309, respectively) | $ 145,028,192 | $ 223,402,820 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 | $ 10.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .17 | .24 | .21 | .24 | .28 H | .10 |
Net realized and unrealized gain (loss) | (5.71) | (.38) | 3.56 | 2.06 | 3.01 | 1.72 |
Total from investment operations | (5.54) | (.14) | 3.77 | 2.30 | 3.29 | 1.82 |
Distributions from net investment income | (.26) | (.32) | (.23) | (.27) | (.21) | (.10) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 |
Total Return B,C,D | (27.40)% | (.82)% | 22.14% | 15.38% | 27.48% | 17.67% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.25% A | 1.21% | 1.27% | 1.34% | 1.39% | 1.51% |
Expenses net of fee waivers, if any | 1.25% A | 1.21% | 1.27% | 1.34% | 1.39% | 1.50% |
Expenses net of all reductions | 1.24% A | 1.21% | 1.26% | 1.32% | 1.36% | 1.45% |
Net investment income (loss) | 2.21% A | 1.11% | 1.04% | 1.51% | 2.03% H | .87% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,002 | $ 105,219 | $ 94,842 | $ 40,599 | $ 29,150 | $ 21,987 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.39%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 | $ 10.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .18 | .15 | .19 | .24 H | .07 |
Net realized and unrealized gain (loss) | (5.70) | (.39) | 3.56 | 2.08 | 2.99 | 1.72 |
Total from investment operations | (5.55) | (.21) | 3.71 | 2.27 | 3.23 | 1.79 |
Distributions from net investment income | (.20) | (.24) | (.18) | (.19) | (.17) | (.08) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.51 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 |
Total Return B,C,D | (27.42)% | (1.11)% | 21.74% | 15.20% | 27.03% | 17.42% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.51% A | 1.47% | 1.54% | 1.60% | 1.67% | 1.79% |
Expenses net of fee waivers, if any | 1.51% A | 1.47% | 1.54% | 1.60% | 1.67% | 1.75% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.54% | 1.58% | 1.64% | 1.70% |
Net investment income (loss) | 1.92% A | .84% | .76% | 1.25% | 1.76% H | .62% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,905 | $ 54,346 | $ 62,592 | $ 52,128 | $ 55,683 | $ 53,255 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 | $ 10.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .11 | .08 | .05 | .12 | .17 H | .01 |
Net realized and unrealized gain (loss) | (5.63) | (.39) | 3.52 | 2.03 | 2.95 | 1.69 |
Total from investment operations | (5.52) | (.31) | 3.57 | 2.15 | 3.12 | 1.70 |
Distributions from net investment income | (.13) | (.08) | (.07) | (.08) | (.11) | (.03) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 |
Total Return B,C,D | (27.60)% | (1.59)% | 21.18% | 14.57% | 26.51% | 16.79% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.99% A | 1.96% | 2.04% | 2.09% | 2.14% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 1.96% | 2.04% | 2.09% | 2.14% | 2.25% |
Expenses net of all reductions | 1.99% A | 1.95% | 2.03% | 2.06% | 2.11% | 2.20% |
Net investment income (loss) | 1.46% A | .36% | .27% | .76% | 1.28% H | .12% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,004 | $ 20,747 | $ 43,845 | $ 65,959 | $ 82,577 | $ 84,742 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .64%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 | $ 10.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .11 | .08 | .06 | .13 | .18 H | .02 |
Net realized and unrealized gain (loss) | (5.61) | (.39) | 3.51 | 2.04 | 2.94 | 1.70 |
Total from investment operations | (5.50) | (.31) | 3.57 | 2.17 | 3.12 | 1.72 |
Distributions from net investment income | (.13) | (.14) | (.10) | (.10) | (.12) | (.04) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.30 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 |
Total Return B,C,D | (27.60)% | (1.58)% | 21.23% | 14.72% | 26.48% | 16.98% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.99% A | 1.95% | 1.99% | 2.02% | 2.07% | 2.17% |
Expenses net of fee waivers, if any | 1.99% A | 1.95% | 1.99% | 2.02% | 2.07% | 2.17% |
Expenses net of all reductions | 1.99% A | 1.95% | 1.99% | 2.00% | 2.04% | 2.12% |
Net investment income (loss) | 1.46% A | .36% | .32% | .83% | 1.36% H | .21% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,631 | $ 37,387 | $ 43,292 | $ 32,823 | $ 34,827 | $ 35,038 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .72%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 | $ 10.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .20 | .31 | .29 | .30 | .33 G | .15 |
Net realized and unrealized gain (loss) | (5.79) | (.38) | 3.58 | 2.10 | 3.03 | 1.73 |
Total from investment operations | (5.59) | (.07) | 3.87 | 2.40 | 3.36 | 1.88 |
Distributions from net investment income | (.23) | (.36) | (.30) | (.33) | (.25) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.70 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 |
Total Return B,C | (27.25)% | (.49)% | 22.54% | 15.95% | 27.88% | 18.14% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .99% A | .91% | .92% | .94% | .99% | 1.09% |
Expenses net of fee waivers, if any | .99% A | .91% | .92% | .94% | .99% | 1.09% |
Expenses net of all reductions | .99% A | .90% | .92% | .92% | .96% | 1.04% |
Net investment income (loss) | 2.46% A | 1.41% | 1.39% | 1.91% | 2.44% G | 1.29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,486 | $ 5,704 | $ 12,822 | $ 6,479 | $ 1,766 | $ 2,254 |
Portfolio turnover rate F | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.80%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Utilities Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 1,605,251 |
Unrealized depreciation | (38,749,920) |
Net unrealized appreciation (depreciation) | $ (37,144,669) |
Cost for federal income tax purposes | $ 182,384,149 |
Short-term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a
Utilities
4. Operating Policies - continued
Repurchase Agreements - continued
default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $203,946,702 and $201,213,170, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | .0% | .25% | $ 98,293 | $ 5,070 |
Class T | .25% | .25% | 101,306 | - |
Class B | .75% | .25% | 72,078 | 54,058 |
Class C | .75% | .25% | 134,814 | 13,006 |
| | | $ 406,491 | $ 72,134 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 14,767 |
Class T | 2,959 |
Class B* | 17,849 |
Class C* | 2,144 |
| $ 37,719 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 116,611 | .30 |
Class T | 62,316 | .31 |
Class B | 21,418 | .30 |
Class C | 40,019 | .30 |
Institutional Class | 5,883 | .29 |
| $ 246,247 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment. The commissions paid to these affiliated firms were $4,522 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $214 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $18,651.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,012 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $61.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Utilities
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,280,064 | $ 1,513,480 |
Class T | 508,856 | 697,662 |
Class B | 107,816 | 116,029 |
Class C | 209,683 | 289,510 |
Institutional Class | 56,432 | 220,860 |
Total | $ 2,162,851 | $ 2,837,541 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 436,085 | 2,354,893 | $ 6,821,949 | $ 52,162,968 |
Reinvestment of distributions | 73,926 | 60,065 | 1,138,401 | 1,341,196 |
Shares redeemed | (866,814) | (1,798,285) | (13,572,635) | (38,893,897) |
Net increase (decrease) | (356,803) | 616,673 | $ (5,612,285) | $ 14,610,267 |
Class T | | | | |
Shares sold | 146,429 | 607,632 | $ 2,263,231 | $ 13,411,231 |
Reinvestment of distributions | 31,967 | 29,500 | 480,828 | 659,942 |
Shares redeemed | (385,196) | (977,155) | (5,993,053) | (21,255,306) |
Net increase (decrease) | (206,800) | (340,023) | $ (3,248,994) | $ (7,184,133) |
Class B | | | | |
Shares sold | 82,626 | 265,082 | $ 1,300,280 | $ 5,789,226 |
Reinvestment of distributions | 6,919 | 4,528 | 98,249 | 103,786 |
Shares redeemed | (290,211) | (1,382,108) | (4,521,376) | (29,771,682) |
Net increase (decrease) | (200,666) | (1,112,498) | $ (3,122,847) | $ (23,878,670) |
Class C | | | | |
Shares sold | 118,801 | 413,208 | $ 1,792,804 | $ 8,976,142 |
Reinvestment of distributions | 11,490 | 10,061 | 162,462 | 223,730 |
Shares redeemed | (353,253) | (671,632) | (5,397,372) | (14,302,911) |
Net increase (decrease) | (222,962) | (248,363) | $ (3,442,106) | $ (5,103,039) |
Institutional Class | | | | |
Shares sold | 36,155 | 1,285,993 | $ 558,778 | $ 28,765,131 |
Reinvestment of distributions | 2,995 | 7,559 | 45,330 | 173,189 |
Shares redeemed | (79,899) | (1,627,489) | (1,244,374) | (35,844,003) |
Net increase (decrease) | (40,749) | (333,937) | $ (640,266) | $ (6,905,683) |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank
New York, NY
Brown Brothers Harriman & Co. †
Boston, MA
State Street Bank and Trust ††
Quincy, MA
† Custodian for Fidelity Advisor Energy Fund only.
†† Custodian for Fidelity Advisor Biotechnology Fund, Fidelity Advisor
Communications Equipment Fund, and Fidelity Advisor Electronics Fund only.
AFOC-USAN-0309
1.789279.106
Fidelity Advisor
Focus Funds®
Institutional Class
Biotechnology
Communications Equipment
Consumer Discretionary
Electronics
Energy
Financial Services
Health Care
Industrials
Technology
Utilities
Semiannual Report
January 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Semiannual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies
indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Advisor Biotechnology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 791.30 | $ 6.32 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 790.80 | $ 7.45 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 788.80 | $ 9.69 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 788.80 | $ 9.69 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 792.50 | $ 5.20 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Amgen, Inc. | 18.3 | 19.6 |
Genentech, Inc. | 14.5 | 10.3 |
Gilead Sciences, Inc. | 9.3 | 8.4 |
Biogen Idec, Inc. | 5.3 | 4.4 |
Celgene Corp. | 5.0 | 2.7 |
Genzyme Corp. | 4.9 | 1.2 |
Alexion Pharmaceuticals, Inc. | 4.6 | 5.1 |
Cephalon, Inc. | 4.5 | 3.8 |
Vertex Pharmaceuticals, Inc. | 3.6 | 2.7 |
Acorda Therapeutics, Inc. | 3.4 | 3.3 |
| 73.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
 | Biotechnology | 88.6% | |
 | Pharmaceuticals | 7.4% | |
 | Health Care
Equipment & Supplies | 0.8% | |
 | Life Sciences
Tools & Services | 0.6% | |
 | All Others* | 2.6% | |
As of July 31, 2008 |
| Biotechnology | 81.7% | |
| Pharmaceuticals | 13.7% | |
| Health Care
Equipment & Supplies | 1.4% | |
| Life Sciences
Tools & Services | 0.7% | |
| All Others* | 2.5% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Biotechnology
Advisor Biotechnology Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% |
| Shares | | Value |
BIOTECHNOLOGY - 88.6% |
Biotechnology - 88.6% |
Acadia Pharmaceuticals, Inc. (a) | 28,874 | | $ 29,163 |
Acorda Therapeutics, Inc. (a) | 71,716 | | 1,759,193 |
Affymax, Inc. (a) | 7,300 | | 94,900 |
Alexion Pharmaceuticals, Inc. (a) | 64,738 | | 2,386,890 |
Alkermes, Inc. (a) | 22,800 | | 261,516 |
Allos Therapeutics, Inc. (a) | 5,530 | | 43,300 |
Alnylam Pharmaceuticals, Inc. (a) | 7,000 | | 147,630 |
Amgen, Inc. (a) | 172,373 | | 9,454,656 |
Amylin Pharmaceuticals, Inc. (a) | 3,684 | | 42,587 |
Anadys Pharmaceuticals, Inc. (a) | 62,397 | | 325,088 |
Antigenics, Inc. (a) | 452,000 | | 171,760 |
Antigenics, Inc.: | | | |
warrants 1/9/10 (a)(e) | 452,000 | | 5 |
warrants 1/9/18 (a)(e) | 452,000 | | 161,349 |
Arena Pharmaceuticals, Inc. (a) | 7,600 | | 31,464 |
Biogen Idec, Inc. (a) | 56,444 | | 2,746,001 |
BioMarin Pharmaceutical, Inc. (a) | 43,489 | | 837,598 |
Celera Corp. (a) | 9,800 | | 82,712 |
Celgene Corp. (a) | 49,015 | | 2,595,344 |
Cephalon, Inc. (a)(d) | 30,194 | | 2,330,373 |
Cepheid, Inc. (a) | 6,800 | | 50,592 |
Cougar Biotechnology, Inc. (a) | 12,700 | | 370,586 |
Cubist Pharmaceuticals, Inc. (a) | 4,892 | | 104,738 |
CV Therapeutics, Inc. (a) | 11,749 | | 183,872 |
Dendreon Corp. (a) | 9,700 | | 32,689 |
Enzon Pharmaceuticals, Inc. (a) | 5,400 | | 35,154 |
Facet Biotech Corp. (a) | 4,500 | | 27,360 |
Genentech, Inc. (a) | 92,111 | | 7,483,098 |
Genzyme Corp. (a) | 36,938 | | 2,545,767 |
Gilead Sciences, Inc. (a) | 95,048 | | 4,825,587 |
GTx, Inc. (a) | 2,670 | | 29,477 |
Halozyme Therapeutics, Inc. (a) | 4,410 | | 25,446 |
Human Genome Sciences, Inc. (a) | 42,777 | | 77,426 |
Incyte Corp. (a) | 13,195 | | 38,661 |
InterMune, Inc. (a) | 13,016 | | 148,903 |
Isis Pharmaceuticals, Inc. (a) | 17,700 | | 250,101 |
Ligand Pharmaceuticals, Inc. Class B (a) | 26,500 | | 56,180 |
Martek Biosciences | 2,900 | | 76,705 |
Momenta Pharmaceuticals, Inc. (a) | 4,000 | | 43,320 |
Myriad Genetics, Inc. (a) | 7,805 | | 582,019 |
ONYX Pharmaceuticals, Inc. (a) | 32,560 | | 990,801 |
OREXIGEN Therapeutics, Inc. (a) | 13,588 | | 54,488 |
OSI Pharmaceuticals, Inc. (a) | 17,800 | | 633,680 |
PDL BioPharma, Inc. | 22,500 | | 144,450 |
Poniard Pharmaceuticals, Inc. (a) | 7,700 | | 18,480 |
|
| Shares | | Value |
Progenics Pharmaceuticals, Inc. (a) | 4,500 | | $ 32,805 |
Regeneron Pharmaceuticals, Inc. (a) | 7,191 | | 125,699 |
Rigel Pharmaceuticals, Inc. (a) | 7,635 | | 53,369 |
Sangamo Biosciences, Inc. (a) | 7,098 | | 29,457 |
Savient Pharmaceuticals, Inc. (a) | 9,205 | | 50,996 |
Theratechnologies, Inc. (a) | 1,900 | | 2,154 |
Theravance, Inc. (a) | 13,965 | | 184,059 |
United Therapeutics Corp. (a) | 16,290 | | 1,106,906 |
Vertex Pharmaceuticals, Inc. (a) | 56,504 | | 1,867,457 |
Zymogenetics, Inc. (a) | 10,295 | | 43,754 |
| | 45,827,765 |
HEALTH CARE EQUIPMENT & SUPPLIES - 0.8% |
Health Care Equipment - 0.8% |
Alsius Corp. (a) | 14,200 | | 4,118 |
Aradigm Corp. (a) | 21,800 | | 4,360 |
Quidel Corp. (a) | 34,400 | | 423,120 |
| | 431,598 |
LIFE SCIENCES TOOLS & SERVICES - 0.6% |
Life Sciences Tools & Services - 0.6% |
AMAG Pharmaceuticals, Inc. (a) | 2,900 | | 102,225 |
Clinical Data, Inc. (a) | 4,547 | | 35,376 |
Exelixis, Inc. (a) | 30,600 | | 150,858 |
Medivation, Inc. (a) | 1,359 | | 25,481 |
| | 313,940 |
PHARMACEUTICALS - 7.4% |
Pharmaceuticals - 7.4% |
Adolor Corp. (a) | 22,768 | | 45,536 |
Akorn, Inc. (a) | 103,079 | | 229,866 |
Alexza Pharmaceuticals, Inc. (a) | 6,581 | | 19,019 |
Auxilium Pharmaceuticals, Inc. (a) | 47,658 | | 1,456,428 |
Biodel, Inc. (a) | 100,769 | | 445,399 |
Catalyst Pharmaceutical Partners, Inc. (a) | 21,241 | | 57,351 |
Elan Corp. PLC sponsored ADR (a) | 72,250 | | 522,368 |
Inspire Pharmaceuticals, Inc. (a) | 1,370 | | 5,206 |
Jazz Pharmaceuticals, Inc. (a) | 335 | | 322 |
Sepracor, Inc. (a) | 12,110 | | 184,072 |
Wyeth | 8,800 | | 378,136 |
XenoPort, Inc. (a) | 17,778 | | 464,361 |
| | 3,808,064 |
TOTAL COMMON STOCKS (Cost $51,244,755) | 50,381,367 |
Money Market Funds - 8.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,641,280 | | 1,641,280 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 2,775,300 | | 2,775,300 |
TOTAL MONEY MARKET FUNDS (Cost $4,416,580) | 4,416,580 |
Cash Equivalents - 0.1% |
| Maturity Amount | | Value |
Investments in repurchase agreements in a joint trading account at 0.24%, dated 1/30/09 due 2/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $30,000) | $ 30,001 | | $ 30,000 |
TOTAL INVESTMENT PORTFOLIO - 106.0% (Cost $55,691,335) | | 54,827,947 |
NET OTHER ASSETS - (6.0)% | | (3,120,133) |
NET ASSETS - 100% | $ 51,707,814 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $161,354 or 0.3% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Antigenics, Inc. warrants 1/9/10 | 1/9/08 | $ 3 |
Antigenics, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$30,000 due 2/02/09 at 0.24% |
J.P. Morgan Securities, Inc. | $ 22,214 |
UBS Securities LLC | 7,786 |
| $ 30,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 20,855 |
Fidelity Securities Lending Cash Central Fund | 7,926 |
Total | $ 28,781 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 54,827,947 | $ 54,636,593 | $ 191,354 | $ - |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,310,179 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Advisor Biotechnology Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $2,685,864 and repurchase agreements of $30,000) - See accompanying schedule: Unaffiliated issuers (cost $51,274,755) | $ 50,411,367 | |
Fidelity Central Funds (cost $4,416,580) | 4,416,580 | |
Total Investments (cost $55,691,335) | | $ 54,827,947 |
Cash | | 976 |
Receivable for investments sold | | 368,668 |
Receivable for fund shares sold | | 160,337 |
Distributions receivable from Fidelity Central Funds | | 2,946 |
Prepaid expenses | | 560 |
Total assets | | 55,361,434 |
| | |
Liabilities | | |
Payable for investments purchased | $ 726,604 | |
Payable for fund shares redeemed | 59,071 | |
Accrued management fee | 30,591 | |
Distribution fees payable | 25,286 | |
Other affiliated payables | 13,673 | |
Other payables and accrued expenses | 23,095 | |
Collateral on securities loaned, at value | 2,775,300 | |
Total liabilities | | 3,653,620 |
| | |
Net Assets | | $ 51,707,814 |
Net Assets consist of: | | |
Paid in capital | | $ 59,817,116 |
Accumulated net investment loss | | (432,813) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,813,101) |
Net unrealized appreciation (depreciation) on investments | | (863,388) |
Net Assets | | $ 51,707,814 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($17,500,550 ÷ 2,831,103 shares) | | $ 6.18 |
| | |
Maximum offering price per share (100/94.25 of $6.18) | | $ 6.56 |
Class T:
Net Asset Value and redemption price per share ($12,905,209 ÷ 2,134,660 shares) | | $ 6.05 |
| | |
Maximum offering price per share (100/96.50 of $6.05) | | $ 6.27 |
Class B:
Net Asset Value and offering price per share ($7,693,389 ÷ 1,329,242 shares)A | | $ 5.79 |
| | |
Class C:
Net Asset Value and offering price per share ($11,823,077 ÷ 2,042,226 shares)A | | $ 5.79 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,785,589 ÷ 281,835 shares) | | $ 6.34 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Biotechnology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 9,902 |
Interest | | 5 |
Income from Fidelity Central Funds (including $7,926 from security lending) | | 28,781 |
Total income | | 38,688 |
| | |
Expenses | | |
Management fee | $ 152,258 | |
Transfer agent fees | 84,962 | |
Distribution fees | 161,270 | |
Accounting and security lending fees | 11,819 | |
Custodian fees and expenses | 5,078 | |
Independent trustees' compensation | 153 | |
Registration fees | 43,401 | |
Audit | 22,421 | |
Legal | 195 | |
Miscellaneous | 3,963 | |
Total expenses before reductions | 485,520 | |
Expense reductions | (14,019) | 471,501 |
Net investment income (loss) | | (432,813) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,779,884) | |
Foreign currency transactions | (38) | |
Total net realized gain (loss) | | (1,779,922) |
Change in net unrealized appreciation (depreciation) on investment securities | | (12,017,620) |
Net gain (loss) | | (13,797,542) |
Net increase (decrease) in net assets resulting from operations | | $ (14,230,355) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (432,813) | $ (852,978) |
Net realized gain (loss) | (1,779,922) | (1,921,856) |
Change in net unrealized appreciation (depreciation) | (12,017,620) | 10,243,107 |
Net increase (decrease) in net assets resulting from operations | (14,230,355) | 7,468,273 |
Distributions to shareholders from net realized gain | - | (3,898,928) |
Share transactions - net increase (decrease) | 7,053,317 | 3,736,181 |
Redemption fees | 28,181 | 1,940 |
Total increase (decrease) in net assets | (7,148,857) | 7,307,466 |
| | |
Net Assets | | |
Beginning of period | 58,856,671 | 51,549,205 |
End of period (including accumulated net investment loss of $432,813 and $0, respectively) | $ 51,707,814 | $ 58,856,671 |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 | $ 5.94 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.09) I | (.09) | (.09) | (.08) H | (.09) |
Net realized and unrealized gain (loss) | (1.59) | 1.20 | .51 | .10 | .88 | .15 |
Total from investment operations | (1.63) | 1.11 | .42 | .01 | .80 | .06 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 6.18 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 |
Total Return B, C, D | (20.87)% | 15.95% | 6.17% | .15% | 13.33% | 1.01% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.45% A | 1.37% | 1.42% | 1.48% | 1.56% | 1.68% |
Expenses net of fee waivers, if any | 1.40% A | 1.37% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.37% | 1.40% | 1.37% | 1.43% | 1.48% |
Net investment income (loss) | (1.26)% A | (1.24)% I | (1.25)% | (1.29)% | (1.36)% H | (1.38)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,501 | $ 18,249 | $ 13,081 | $ 12,539 | $ 11,022 | $ 10,197 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.37)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 | $ 5.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.11) I | (.11) | (.11) | (.10) H | (.10) |
Net realized and unrealized gain (loss) | (1.55) | 1.18 | .51 | .10 | .87 | .15 |
Total from investment operations | (1.60) | 1.07 | .40 | (.01) | .77 | .05 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 6.05 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 |
Total Return B, C, D | (20.92)% | 15.64% | 5.96% | (.15)% | 12.94% | .85% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 1.74% A | 1.69% | 1.75% | 1.79% | 1.93% | 2.10% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.70% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.62% | 1.68% | 1.73% |
Net investment income (loss) | (1.51)% A | (1.53)% I | (1.49)% | (1.54)% | (1.61)% H | (1.63)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,905 | $ 15,123 | $ 13,008 | $ 13,808 | $ 14,177 | $ 13,367 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.61)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 | $ 5.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.14) I | (.14) | (.14) | (.13) H | (.13) |
Net realized and unrealized gain (loss) | (1.49) | 1.13 | .50 | .10 | .85 | .15 |
Total from investment operations | (1.55) | .99 | .36 | (.04) | .72 | .02 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 5.79 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 |
Total Return B, C, D | (21.12)% | 14.96% | 5.52% | (.61)% | 12.33% | .34% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 2.19% A | 2.12% | 2.17% | 2.23% | 2.33% | 2.46% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.12% | 2.15% | 2.12% | 2.18% | 2.22% |
Net investment income (loss) | (2.01)% A | (2.00)% I | (1.99)% | (2.04)% | (2.11)% H | (2.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,693 | $ 11,044 | $ 12,656 | $ 14,938 | $ 16,921 | $ 16,819 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.11)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 | $ 5.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.13) I | (.14) | (.14) | (.13) H | (.13) |
Net realized and unrealized gain (loss) | (1.49) | 1.12 | .50 | .09 | .86 | .15 |
Total from investment operations | (1.55) | .99 | .36 | (.05) | .73 | .02 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 5.79 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 |
Total Return B, C, D | (21.12)% | 14.96% | 5.52% | (.76)% | 12.50% | .34% |
Ratios to Average Net Assets F, J | | | | | | |
Expenses before reductions | 2.19% A | 2.12% | 2.16% | 2.17% | 2.24% | 2.31% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.12% | 2.15% | 2.12% | 2.18% | 2.23% |
Net investment income (loss) | (2.01)% A | (2.00)% I | (1.99)% | (2.04)% | (2.11)% H | (2.13)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,823 | $ 13,323 | $ 11,813 | $ 13,787 | $ 12,538 | $ 13,215 |
Portfolio turnover rate G | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.11)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 | $ 5.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.03) | (.07) H | (.07) | (.07) | (.06) G | (.06) |
Net realized and unrealized gain (loss) | (1.63) | 1.23 | .53 | .09 | .89 | .15 |
Total from investment operations | (1.66) | 1.16 | .46 | .02 | .83 | .09 |
Distributions from net realized gain | - | (.53) | - | - | - | - |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 6.34 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 |
Total Return B, C | (20.75)% | 16.35% | 6.66% | .29% | 13.70% | 1.51% |
Ratios to Average Net Assets E, I | | | | | | |
Expenses before reductions | 1.15% A | 1.06% | 1.06% | 1.05% | 1.10% | 1.16% |
Expenses net of fee waivers, if any | 1.15% A | 1.06% | 1.06% | 1.05% | 1.10% | 1.16% |
Expenses net of all reductions | 1.15% A | 1.06% | 1.06% | 1.03% | 1.09% | 1.14% |
Net investment income (loss) | (1.00)% A | (.94)% H | (.91)% | (.94)% | (1.02)% G | (1.04)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,786 | $ 1,117 | $ 991 | $ 1,268 | $ 1,243 | $ 1,146 |
Portfolio turnover rate F | 46% A | 132% | 120% | 62% | 30% | 50% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.0004 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Biotechnology Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
Biotechnology
3. Significant Accounting Policies - continued
Security Valuation - continued
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended July 31, 2008, dividend income has been reduced $20,082 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total return of the Fund. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 6,103,696 |
Unrealized depreciation | (7,657,860) |
Net unrealized appreciation (depreciation) | $ (1,554,164) |
Cost for federal income tax purposes | $ 56,382,111 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $19,056,888 and $12,170,952, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 22,405 | $ 172 |
Class T | .25% | .25% | 33,052 | - |
Class B | .75% | .25% | 44,551 | 33,591 |
Class C | .75% | .25% | 61,262 | 12,599 |
| | | $ 161,270 | $ 46,362 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,287 |
Class T | 3,978 |
Class B* | 11,870 |
Class C* | 2,043 |
| $ 29,178 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Biotechnology
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 27,311 | .31 |
Class T | 23,059 | .35 |
Class B | 13,633 | .31 |
Class C | 18,621 | .30 |
Institutional Class | 2,338 | .28 |
| $ 84,962 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $406 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $65 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 4,058 |
Class T | 1.65% | 5,673 |
Class B | 2.15% | 1,747 |
Class C | 2.15% | 2,541 |
| | $ 14,019 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 958,767 |
Class T | - | 975,566 |
Class B | - | 968,071 |
Class C | - | 911,566 |
Institutional Class | - | 84,958 |
Total | $ - | $ 3,898,928 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,653,511 | 968,364 | $ 11,241,667 | $ 6,960,029 |
Reinvestment of distributions | - | 116,475 | - | 854,207 |
Shares redeemed | (1,158,774) | (556,578) | (7,223,513) | (3,954,261) |
Net increase (decrease) | 494,737 | 528,261 | $ 4,018,154 | $ 3,859,975 |
Class T | | | | |
Shares sold | 536,239 | 558,497 | $ 3,546,760 | $ 3,914,836 |
Reinvestment of distributions | - | 133,154 | - | 959,165 |
Shares redeemed | (378,746) | (543,030) | (2,403,827) | (3,782,531) |
Net increase (decrease) | 157,493 | 148,621 | $ 1,142,933 | $ 1,091,470 |
Class B | | | | |
Shares sold | 243,395 | 270,835 | $ 1,616,496 | $ 1,836,564 |
Reinvestment of distributions | - | 123,818 | - | 860,151 |
Shares redeemed | (418,581) | (730,418) | (2,515,309) | (4,825,895) |
Net increase (decrease) | (175,186) | (335,765) | $ (898,813) | $ (2,129,180) |
Class C | | | | |
Shares sold | 554,889 | 452,084 | $ 3,656,689 | $ 3,145,989 |
Reinvestment of distributions | - | 110,151 | - | 765,068 |
Shares redeemed | (327,059) | (465,047) | (1,975,711) | (3,112,018) |
Net increase (decrease) | 227,830 | 97,188 | $ 1,680,978 | $ 799,039 |
Institutional Class | | | | |
Shares sold | 281,122 | 190,433 | $ 2,017,749 | $ 1,427,209 |
Reinvestment of distributions | - | 6,538 | - | 48,898 |
Shares redeemed | (138,981) | (191,649) | (907,684) | (1,361,230) |
Net increase (decrease) | 142,141 | 5,322 | $ 1,110,065 | $ 114,877 |
Biotechnology
Advisor Communications Equipment Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 578.00 | $ 5.57 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 576.80 | $ 6.56 |
Hypothetical A | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 575.10 | $ 8.54 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 575.90 | $ 8.54 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 578.90 | $ 4.58 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
QUALCOMM, Inc. | 19.0 | 16.4 |
Cisco Systems, Inc. | 16.7 | 10.1 |
Starent Networks Corp. | 10.7 | 5.2 |
Comverse Technology, Inc. | 4.8 | 6.7 |
ADC Telecommunications, Inc. | 3.7 | 3.0 |
Ulticom, Inc. | 3.0 | 1.7 |
Adtran, Inc. | 2.2 | 0.5 |
SBA Communications Corp.
Class A | 2.1 | 0.3 |
Research In Motion Ltd. | 2.1 | 8.6 |
Tellabs, Inc. | 2.0 | 0.0 |
| 66.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Communications Equipment | 76.1% | |
 | Semiconductors & Semiconductor Equipment | 8.6% | |
 | Software | 5.4% | |
 | Wireless Telecommunication Services | 4.7% | |
| Media | 2.0% | |
| All Others* | 3.2% | |
|
As of July 31, 2008 |
| Communications Equipment | 71.6% | |
| Computers & Peripherals | 7.7% | |
| Semiconductors & Semiconductor Equipment | 4.0% | |
| Software | 3.6% | |
| Commercial Services & Supplies | 2.2% | |
| All Others* | 10.9% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Communications Equipment Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 75.8% |
Communications Equipment - 75.8% |
Acme Packet, Inc. (a) | 100 | | $ 440 |
ADC Telecommunications, Inc. (a) | 27,000 | | 136,890 |
Adtran, Inc. | 5,283 | | 80,037 |
ADVA AG Optical Networking (a) | 7,013 | | 8,979 |
Alcatel-Lucent SA sponsored ADR (a) | 4,000 | | 7,880 |
Arris Group, Inc. (a) | 2,644 | | 18,825 |
Aruba Networks, Inc. (a) | 100 | | 267 |
AudioCodes Ltd. (a) | 20,500 | | 35,055 |
Avanex Corp. (a) | 773 | | 1,453 |
Ceragon Networks Ltd. (a) | 100 | | 564 |
China GrenTech Corp. Ltd. ADR (a) | 9,494 | | 9,494 |
Ciena Corp. (a) | 10,959 | | 68,384 |
Cisco Systems, Inc. (a) | 41,369 | | 619,294 |
Cogo Group, Inc. (a) | 10,801 | | 72,151 |
CommScope, Inc. (a) | 4,300 | | 62,006 |
Comverse Technology, Inc. (a) | 28,106 | | 177,630 |
F5 Networks, Inc. (a) | 2,200 | | 48,774 |
Finisar Corp. (a) | 2,800 | | 1,428 |
Foxconn International Holdings Ltd. (a) | 2,000 | | 732 |
Harris Stratex Networks, Inc. Class A (a) | 3,867 | | 26,682 |
Infinera Corp. (a) | 1,300 | | 8,918 |
Motorola, Inc. | 12,200 | | 54,046 |
Opnext, Inc. (a) | 5,900 | | 14,042 |
Powerwave Technologies, Inc. (a) | 32,500 | | 14,625 |
QUALCOMM, Inc. | 20,370 | | 703,784 |
Research In Motion Ltd. (a) | 1,400 | | 77,560 |
Sandvine Corp. (a) | 18,400 | | 10,207 |
Sandvine Corp. (U.K.) (a) | 56,400 | | 34,748 |
Sonus Networks, Inc. (a) | 15,167 | | 20,020 |
Starent Networks Corp. (a) | 26,976 | | 396,547 |
Tekelec (a) | 700 | | 8,694 |
Telefonaktiebolaget LM Ericsson
(B Shares) sponsored ADR | 1,200 | | 9,588 |
Tellabs, Inc. (a) | 18,200 | | 75,166 |
| | 2,804,910 |
COMPUTERS & PERIPHERALS - 0.7% |
Computer Hardware - 0.5% |
Compal Electronics, Inc. | 28 | | 14 |
HTC Corp. | 2,100 | | 19,831 |
| | 19,845 |
Computer Storage & Peripherals - 0.2% |
SanDisk Corp. (a) | 610 | | 6,972 |
TOTAL COMPUTERS & PERIPHERALS | | 26,817 |
ELECTRICAL EQUIPMENT - 0.2% |
Electrical Components & Equipment - 0.2% |
General Cable Corp. (a) | 400 | | 6,584 |
|
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - 1.6% |
Electronic Components - 0.1% |
Amphenol Corp. Class A | 200 | | $ 5,230 |
Electronic Equipment & Instruments - 0.7% |
China Security & Surveillance Technology, Inc. (a) | 4,430 | | 24,365 |
Electronic Manufacturing Services - 0.8% |
Flextronics International Ltd. (a) | 6,200 | | 16,182 |
SMART Modular Technologies (WWH), Inc. (a) | 4,100 | | 4,715 |
Trimble Navigation Ltd. (a) | 600 | | 8,892 |
| | 29,789 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 59,384 |
INTERNET SOFTWARE & SERVICES - 0.7% |
Internet Software & Services - 0.7% |
Switch & Data Facilities Co., Inc. (a) | 900 | | 6,192 |
Tencent Holdings Ltd. | 3,200 | | 19,553 |
| | 25,745 |
MEDIA - 2.0% |
Advertising - 1.5% |
VisionChina Media, Inc. ADR (a) | 8,800 | | 54,384 |
Cable & Satellite - 0.5% |
Virgin Media, Inc. | 4,600 | | 20,884 |
TOTAL MEDIA | | 75,268 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 8.6% |
Semiconductor Equipment - 0.2% |
EMCORE Corp. (a) | 4,600 | | 6,072 |
Semiconductors - 8.4% |
Actel Corp. (a) | 451 | | 4,068 |
ANADIGICS, Inc. (a) | 3,500 | | 7,105 |
Applied Micro Circuits Corp. (a) | 2,758 | | 11,032 |
ARM Holdings PLC sponsored ADR | 2,100 | | 8,421 |
Cavium Networks, Inc. (a) | 5,900 | | 53,690 |
Ceva, Inc. (a) | 1,400 | | 9,562 |
Conexant Systems, Inc. (a) | 1,280 | | 845 |
Cree, Inc. (a) | 1,100 | | 21,923 |
Exar Corp. (a) | 143 | | 968 |
Hittite Microwave Corp. (a) | 300 | | 7,686 |
Infineon Technologies AG sponsored ADR (a) | 4,300 | | 3,698 |
International Rectifier Corp. (a) | 1,400 | | 19,068 |
Marvell Technology Group Ltd. (a) | 1,400 | | 10,206 |
Microsemi Corp. (a) | 449 | | 3,772 |
Mindspeed Technologies, Inc. (a) | 2,501 | | 2,238 |
MIPS Technologies, Inc. (a) | 1,398 | | 2,349 |
Netlogic Microsystems, Inc. (a) | 1,716 | | 36,396 |
ON Semiconductor Corp. (a) | 6,785 | | 28,293 |
Pericom Semiconductor Corp. (a) | 1,700 | | 10,489 |
Pixelplus Co. Ltd. ADR (a) | 900 | | 243 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
PLX Technology, Inc. (a) | 1,400 | | $ 2,310 |
PMC-Sierra, Inc. (a) | 3,100 | | 15,097 |
Silicon Storage Technology, Inc. (a) | 1,200 | | 2,460 |
Skyworks Solutions, Inc. (a) | 5,300 | | 22,896 |
TriQuint Semiconductor, Inc. (a) | 13,200 | | 26,664 |
| | 311,479 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 317,551 |
SOFTWARE - 5.4% |
Application Software - 4.8% |
Smith Micro Software, Inc. (a) | 7,161 | | 37,953 |
Synchronoss Technologies, Inc. (a) | 3,000 | | 25,530 |
Taleo Corp. Class A (a) | 100 | | 843 |
Ulticom, Inc. (a) | 19,298 | | 110,964 |
| | 175,290 |
Home Entertainment Software - 0.6% |
Ubisoft Entertainment SA (a) | 1,600 | | 22,677 |
Systems Software - 0.0% |
Allot Communications Ltd. (a) | 300 | | 480 |
TOTAL SOFTWARE | | 198,447 |
WIRELESS TELECOMMUNICATION SERVICES - 4.7% |
Wireless Telecommunication Services - 4.7% |
American Tower Corp. Class A (a) | 1,340 | | 40,656 |
|
| Shares | | Value |
Crown Castle International Corp. (a) | 2,900 | | $ 56,608 |
SBA Communications Corp. Class A (a) | 3,900 | | 77,610 |
| | 174,874 |
TOTAL COMMON STOCKS (Cost $6,235,176) | 3,689,580 |
Convertible Bonds - 0.3% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.3% |
Communications Equipment - 0.3% |
Ciena Corp. 0.25% 5/1/13
(Cost $20,000) | | $ 20,000 | | 11,334 |
Money Market Funds - 0.3% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $10,396) | 10,396 | | 10,396 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $6,265,572) | | 3,711,310 |
NET OTHER ASSETS - (0.3)% | | (11,843) |
NET ASSETS - 100% | $ 3,699,467 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 2,933 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 3,711,310 | $ 3,659,846 | $ 51,464 | $ - |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $207,917 all of which will expire on July 31, 2016. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Advisor Communications Equipment Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $6,255,176) | $ 3,700,914 | |
Fidelity Central Funds (cost $10,396) | 10,396 | |
Total Investments (cost $6,265,572) | | $ 3,711,310 |
Receivable for investments sold | | 18,187 |
Receivable for fund shares sold | | 10,639 |
Dividends receivable | | 190 |
Interest receivable | | 12 |
Distributions receivable from Fidelity Central Funds | | 110 |
Prepaid expenses | | 52 |
Receivable from investment adviser for expense reductions | | 4,020 |
Other receivables | | 59 |
Total assets | | 3,744,579 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,582 | |
Payable for fund shares redeemed | 14,889 | |
Accrued management fee | 1,779 | |
Distribution fees payable | 1,783 | |
Other affiliated payables | 1,019 | |
Other payables and accrued expenses | 23,060 | |
Total liabilities | | 45,112 |
| | |
Net Assets | | $ 3,699,467 |
Net Assets consist of: | | |
Paid in capital | | $ 8,161,702 |
Accumulated net investment loss | | (27,230) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,880,743) |
Net unrealized appreciation (depreciation) on investments | | (2,554,262) |
Net Assets | | $ 3,699,467 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($1,242,844 ÷ 274,916 shares) | | $ 4.52 |
| | |
Maximum offering price per share (100/94.25 of $4.52) | | $ 4.80 |
Class T:
Net Asset Value and redemption price per share ($1,139,047 ÷ 257,054 shares) | | $ 4.43 |
| | |
Maximum offering price per share (100/96.50 of $4.43) | | $ 4.59 |
Class B:
Net Asset Value and offering price per share ($620,470 ÷ 145,889 shares)A | | $ 4.25 |
| | |
Class C:
Net Asset Value and offering price per share ($592,254 ÷ 139,328 shares)A | | $ 4.25 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($104,852 ÷ 22,715 shares) | | $ 4.62 |
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.
Communications Equipment
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 12,955 |
Interest | | 38 |
Income from Fidelity Central Funds | | 2,933 |
Total income | | 15,926 |
| | |
Expenses | | |
Management fee | $ 14,226 | |
Transfer agent fees | 8,815 | |
Distribution fees | 14,064 | |
Accounting fees and expenses | 982 | |
Custodian fees and expenses | 2,887 | |
Independent trustees' compensation | 15 | |
Registration fees | 41,370 | |
Audit | 23,536 | |
Legal | 27 | |
Miscellaneous | 838 | |
Total expenses before reductions | 106,760 | |
Expense reductions | (63,604) | 43,156 |
Net investment income (loss) | | (27,230) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (1,593,336) | |
Foreign currency transactions | (1,691) | |
Total net realized gain (loss) | | (1,595,027) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,424,393) | |
Assets and liabilities in foreign currencies | 115 | |
Total change in net unrealized appreciation (depreciation) | | (1,424,278) |
Net gain (loss) | | (3,019,305) |
Net increase (decrease) in net assets resulting from operations | | $ (3,046,535) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (27,230) | $ (110,235) |
Net realized gain (loss) | (1,595,027) | 45,848 |
Change in net unrealized appreciation (depreciation) | (1,424,278) | (1,477,802) |
Net increase (decrease) in net assets resulting from operations | (3,046,535) | (1,542,189) |
Distributions to shareholders from net realized gain | - | (150,546) |
Share transactions - net increase (decrease) | (395,890) | (1,556,420) |
Redemption fees | 112 | 979 |
Total increase (decrease) in net assets | (3,442,313) | (3,248,176) |
| | |
Net Assets | | |
Beginning of period | 7,141,780 | 10,389,956 |
End of period (including accumulated net investment loss of $27,230 and $0, respectively) | $ 3,699,467 | $ 7,141,780 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 | $ 5.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.09) | (.09) | (.07) | (.09) |
Net realized and unrealized gain (loss) | (3.28) | (1.45) | 2.29 | (.32) | 1.24 | 1.01 |
Total from investment operations | (3.30) | (1.53) | 2.20 | (.41) | 1.17 | .92 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.52 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 |
Total Return B,C,D | (42.20)% | (16.43)% | 30.18% | (5.32)% | 17.92% | 17.24% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.90% A | 2.25% | 2.24% | 2.13% | 2.32% | 2.38% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.39% | 1.40% | 1.32% | 1.28% | 1.35% |
Net investment income (loss) | (.77)% A | (.91)% | (1.00)% | (1.05)% | (.92)% | (1.18)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,243 | $ 2,459 | $ 2,825 | $ 3,145 | $ 2,406 | $ 3,480 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 | $ 5.54 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.10) | (.11) | (.11) | (.08) | (.10) |
Net realized and unrealized gain (loss) | (3.22) | (1.42) | 2.26 | (.31) | 1.21 | 1.00 |
Total from investment operations | (3.25) | (1.52) | 2.15 | (.42) | 1.13 | .90 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.43 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 |
Total Return B,C,D | (42.32)% | (16.59)% | 29.90% | (5.52)% | 17.44% | 16.97% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.21% A | 2.62% | 2.57% | 2.51% | 2.78% | 3.06% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.71% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.64% | 1.57% | 1.54% | 1.60% |
Net investment income (loss) | (1.02)% A | (1.16)% | (1.25)% | (1.30)% | (1.18)% | (1.43)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,139 | $ 2,138 | $ 3,271 | $ 2,932 | $ 3,034 | $ 3,250 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 | $ 5.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.14) | (.14) | (.14) | (.12) | (.13) |
Net realized and unrealized gain (loss) | (3.10) | (1.36) | 2.18 | (.31) | 1.20 | .98 |
Total from investment operations | (3.14) | (1.50) | 2.04 | (.45) | 1.08 | .85 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.25 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Total Return B,C,D | (42.49)% | (16.94)% | 29.18% | (6.05)% | 16.98% | 16.27% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.63% A | 3.03% | 3.00% | 2.94% | 3.14% | 3.48% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.20% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.07% | 2.04% | 2.11% |
Net investment income (loss) | (1.52)% A | (1.67)% | (1.75)% | (1.80)% | (1.68)% | (1.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 620 | $ 1,219 | $ 2,225 | $ 2,406 | $ 2,864 | $ 2,998 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 | $ 5.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.14) | (.14) | (.15) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (3.09) | (1.37) | 2.18 | (.30) | 1.20 | .99 |
Total from investment operations | (3.13) | (1.51) | 2.04 | (.45) | 1.08 | .85 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .04 |
Net asset value, end of period | $ 4.25 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Total Return B,C,D | (42.41)% | (17.06)% | 29.18% | (6.05)% | 16.98% | 16.27% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 4.63% A | 3.02% | 2.98% | 2.86% | 3.07% | 3.19% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.15% | 2.07% | 2.02% | 2.10% |
Net investment income (loss) | (1.52)% A | (1.67)% | (1.75)% | (1.81)% | (1.66)% | (1.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 592 | $ 1,097 | $ 1,745 | $ 1,768 | $ 1,846 | $ 3,180 |
Portfolio turnover rate G | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 | $ 5.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | (.02) | (.06) | (.07) | (.07) | (.05) | (.07) |
Net realized and unrealized gain (loss) | (3.34) | (1.47) | 2.33 | (.33) | 1.24 | 1.02 |
Total from investment operations | (3.36) | (1.53) | 2.26 | (.40) | 1.19 | .95 |
Distributions from net realized gain | - | (.14) | - | - | - | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | .04 |
Net asset value, end of period | $ 4.62 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 |
Total Return B,C | (42.11)% | (16.16)% | 30.58% | (5.13)% | 18.03% | 17.65% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 3.56% A | 1.94% | 1.87% | 1.70% | 1.85% | 1.55% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.18% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.15% | 1.07% | 1.01% | 1.11% |
Net investment income (loss) | (.52)% A | (.66)% | (.75)% | (.80)% | (.65)% | (.93)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 105 | $ 229 | $ 324 | $ 379 | $ 319 | $ 607 |
Portfolio turnover rate F | 96% A | 63% | 58% | 174% | 250% | 306% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Communications Equipment
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Communications Equipment Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institution-al Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 61,985 |
Unrealized depreciation | (2,720,974) |
Net unrealized appreciation (depreciation) | $ (2,658,989) |
Cost for federal income tax purposes | $ 6,370,299 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Communications Equipment
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,642,623 and $2,329,661, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 2,244 | $ 69 |
Class T | .25% | .25% | 3,706 | 2 |
Class B | .75% | .25% | 4,253 | 3,190 |
Class C | .75% | .25% | 3,861 | 449 |
| | | $ 14,064 | $ 3,710 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 514 |
Class T | 524 |
Class B* | 760 |
Class C* | 69 |
| $ 1,867 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 2,885 | .32 |
Class T | 3,086 | .42 |
Class B | 1,358 | .32 |
Class C | 1,257 | .32 |
Institutional Class | 229 | .30 |
| $ 8,815 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $56 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $7 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 22,498 |
Class T | 1.65% | 19,003 |
Class B | 2.15% | 10,558 |
Class C | 2.15% | 9,583 |
Institutional Class | 1.15% | 1,808 |
| | $ 63,450 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $154 for the period.
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.
Communications Equipment
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ - | $ 39,064 |
Class T | - | 47,716 |
Class B | - | 32,890 |
Class C | - | 26,349 |
Institutional Class | - | 4,527 |
Total | $ - | $ 150,546 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 58,915 | 160,354 | $ 421,857 | $ 1,394,318 |
Reinvestment of distributions | - | 4,001 | - | 38,211 |
Shares redeemed | (98,252) | (147,761) | (506,680) | (1,297,098) |
Net increase (decrease) | (39,337) | 16,594 | $ (84,823) | $ 135,431 |
Class T | | | | |
Shares sold | 27,178 | 64,977 | $ 145,500 | $ 556,295 |
Reinvestment of distributions | - | 5,010 | - | 47,041 |
Shares redeemed | (48,528) | (141,880) | (282,479) | (1,263,739) |
Net increase (decrease) | (21,350) | (71,893) | $ (136,979) | $ (660,403) |
Class B | | | | |
Shares sold | 6,007 | 20,643 | $ 35,730 | $ 176,765 |
Reinvestment of distributions | - | 3,437 | - | 31,211 |
Shares redeemed | (25,093) | (105,422) | (129,588) | (851,909) |
Net increase (decrease) | (19,086) | (81,342) | $ (93,858) | $ (643,933) |
Class C | | | | |
Shares sold | 19,440 | 39,088 | $ 128,166 | $ 340,813 |
Reinvestment of distributions | - | 2,609 | - | 23,659 |
Shares redeemed | (28,718) | (86,305) | (172,246) | (711,202) |
Net increase (decrease) | (9,278) | (44,608) | $ (44,080) | $ (346,730) |
Institutional Class | | | | |
Shares sold | 2,019 | 5,041 | $ 11,000 | $ 45,930 |
Reinvestment of distributions | - | 356 | - | 3,461 |
Shares redeemed | (8,035) | (10,196) | (47,150) | (90,176) |
Net increase (decrease) | (6,016) | (4,799) | $ (36,150) | $ (40,785) |
Semiannual Report
Advisor Consumer Discretionary Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 694.40 | $ 5.98 |
HypotheticalA | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 694.10 | $ 7.05 |
HypotheticalA | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 691.80 | $ 9.17 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 691.40 | $ 9.17 |
HypotheticalA | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 695.40 | $ 4.91 |
HypotheticalA | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
McDonald's Corp. | 8.8 | 6.4 |
Target Corp. | 6.4 | 5.8 |
Lowe's Companies, Inc. | 6.4 | 3.9 |
Time Warner, Inc. | 5.2 | 5.9 |
Comcast Corp. Class A | 5.0 | 4.6 |
The Walt Disney Co. | 4.6 | 3.7 |
Home Depot, Inc. | 3.8 | 3.8 |
Staples, Inc. | 3.3 | 3.0 |
Apollo Group, Inc. Class A (non-vtg.) | 3.3 | 2.0 |
The DIRECTV Group, Inc. | 2.5 | 2.0 |
| 49.3 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Media | 26.0% | |
| Specialty Retail | 22.7% | |
| Hotels,
Restaurants & Leisure | 18.9% | |
| Multiline Retail | 7.0% | |
| Textiles, Apparel & Luxury Goods | 6.5% | |
| All Others* | 18.9% | |
As of July 31, 2008 |
| Media | 29.5% | |
| Specialty Retail | 24.6% | |
| Hotels,
Restaurants & Leisure | 14.5% | |
| Multiline Retail | 6.7% | |
| Textiles, Apparel & Luxury Goods | 6.0% | |
| All Others* | 18.7% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Consumer Discretionary
Advisor Consumer Discretionary Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
AUTO COMPONENTS - 0.7% |
Auto Parts & Equipment - 0.7% |
Gentex Corp. | 12,800 | | $ 107,392 |
TRW Automotive Holdings Corp. (a) | 7,400 | | 22,866 |
| | 130,258 |
AUTOMOBILES - 0.4% |
Automobile Manufacturers - 0.4% |
Ford Motor Co. (a)(d) | 35,692 | | 66,744 |
Motorcycle Manufacturers - 0.0% |
Harley-Davidson, Inc. | 200 | | 2,436 |
TOTAL AUTOMOBILES | | 69,180 |
DISTRIBUTORS - 1.0% |
Distributors - 1.0% |
Li & Fung Ltd. | 96,000 | | 190,972 |
DIVERSIFIED CONSUMER SERVICES - 4.8% |
Education Services - 4.4% |
Apollo Group, Inc. Class A (non-vtg.) (a) | 7,600 | | 619,096 |
Princeton Review, Inc. (a) | 8,029 | | 39,422 |
Strayer Education, Inc. | 800 | | 173,144 |
| | 831,662 |
Specialized Consumer Services - 0.4% |
Coinstar, Inc. (a) | 3,700 | | 85,026 |
TOTAL DIVERSIFIED CONSUMER SERVICES | | 916,688 |
FOOD & STAPLES RETAILING - 4.1% |
Food Retail - 1.3% |
Susser Holdings Corp. (a) | 19,405 | | 253,623 |
Hypermarkets & Super Centers - 2.8% |
Costco Wholesale Corp. | 8,800 | | 396,264 |
Wal-Mart Stores, Inc. | 2,900 | | 136,648 |
| | 532,912 |
TOTAL FOOD & STAPLES RETAILING | | 786,535 |
HOTELS, RESTAURANTS & LEISURE - 18.9% |
Casinos & Gaming - 4.1% |
Bally Technologies, Inc. (a) | 6,300 | | 127,197 |
International Game Technology | 17,500 | | 185,500 |
Las Vegas Sands Corp. (a) | 12,230 | | 62,985 |
Las Vegas Sands Corp. unit (a) | 1,000 | | 85,500 |
Penn National Gaming, Inc. (a) | 9,100 | | 169,715 |
WMS Industries, Inc. (a) | 7,200 | | 159,984 |
| | 790,881 |
Hotels, Resorts & Cruise Lines - 1.2% |
Carnival Corp. unit | 13,100 | | 238,289 |
Restaurants - 13.6% |
Brinker International, Inc. | 8,000 | | 87,760 |
Burger King Holdings, Inc. | 10,400 | | 231,400 |
|
| Shares | | Value |
Darden Restaurants, Inc. | 9,600 | | $ 251,712 |
Jack in the Box, Inc. (a) | 2,700 | | 60,993 |
McDonald's Corp. | 28,900 | | 1,676,776 |
Sonic Corp. (a) | 18,600 | | 181,164 |
Wendy's/Arby's Group, Inc. | 20,900 | | 105,336 |
| | 2,595,141 |
TOTAL HOTELS, RESTAURANTS & LEISURE | | 3,624,311 |
HOUSEHOLD DURABLES - 1.8% |
Homebuilding - 1.3% |
Centex Corp. | 7,700 | | 65,527 |
Lennar Corp. Class A (d) | 5,830 | | 44,833 |
Pulte Homes, Inc. | 14,200 | | 144,130 |
| | 254,490 |
Household Appliances - 0.5% |
Whirlpool Corp. | 2,800 | | 93,604 |
TOTAL HOUSEHOLD DURABLES | | 348,094 |
INTERNET & CATALOG RETAIL - 2.4% |
Internet Retail - 2.4% |
Amazon.com, Inc. (d) | 7,900 | | 464,678 |
INTERNET SOFTWARE & SERVICES - 1.7% |
Internet Software & Services - 1.7% |
Dice Holdings, Inc. (a) | 4,699 | | 13,439 |
Google, Inc. Class A (sub. vtg.) (a) | 900 | | 304,677 |
| | 318,116 |
LEISURE EQUIPMENT & PRODUCTS - 1.0% |
Leisure Products - 1.0% |
Hasbro, Inc. | 8,316 | | 200,665 |
MEDIA - 26.0% |
Advertising - 2.5% |
Interpublic Group of Companies, Inc. (a) | 36,200 | | 120,546 |
Lamar Advertising Co. Class A (a)(d) | 5,100 | | 45,951 |
Omnicom Group, Inc. | 12,200 | | 315,858 |
| | 482,355 |
Broadcasting - 1.4% |
Grupo Televisa SA de CV (CPO) sponsored ADR | 18,400 | | 257,416 |
Cable & Satellite - 9.3% |
Comcast Corp. Class A | 65,450 | | 958,843 |
Liberty Media Corp. - Entertainment Class A (a) | 12,500 | | 229,375 |
The DIRECTV Group, Inc. (a) | 21,400 | | 468,660 |
Time Warner Cable, Inc. (a) | 4,600 | | 85,698 |
Virgin Media, Inc. | 8,800 | | 39,952 |
| | 1,782,528 |
Movies & Entertainment - 11.9% |
Ascent Media Corp. (a) | 1,300 | | 33,904 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - CONTINUED |
Movies & Entertainment - continued |
News Corp.: | | | |
Class A | 35,484 | | $ 226,743 |
Class B (d) | 3,700 | | 26,788 |
Regal Entertainment Group Class A | 9,940 | | 99,798 |
The Walt Disney Co. | 42,800 | | 885,104 |
Time Warner, Inc. | 107,100 | | 999,243 |
| | 2,271,580 |
Publishing - 0.9% |
McGraw-Hill Companies, Inc. | 7,700 | | 169,323 |
TOTAL MEDIA | | 4,963,202 |
MULTILINE RETAIL - 7.0% |
Department Stores - 0.6% |
Nordstrom, Inc. (d) | 8,100 | | 102,789 |
General Merchandise Stores - 6.4% |
Target Corp. | 39,400 | | 1,229,280 |
TOTAL MULTILINE RETAIL | | 1,332,069 |
SPECIALTY RETAIL - 22.7% |
Apparel Retail - 3.3% |
Abercrombie & Fitch Co. Class A | 7,600 | | 135,660 |
Citi Trends, Inc. (a) | 10,747 | | 102,419 |
Ross Stores, Inc. | 8,000 | | 235,360 |
Urban Outfitters, Inc. (a) | 6,300 | | 98,154 |
Zumiez, Inc. (a)(d) | 8,500 | | 60,775 |
| | 632,368 |
Automotive Retail - 2.8% |
Advance Auto Parts, Inc. | 11,800 | | 386,214 |
AutoZone, Inc. (a) | 1,100 | | 146,179 |
| | 532,393 |
Computer & Electronics Retail - 0.8% |
Gamestop Corp. Class A (a) | 6,300 | | 156,114 |
Home Improvement Retail - 10.8% |
Home Depot, Inc. | 34,067 | | 733,463 |
Lowe's Companies, Inc. | 66,700 | | 1,218,609 |
Sherwin-Williams Co. | 2,300 | | 109,825 |
| | 2,061,897 |
Homefurnishing Retail - 0.6% |
Williams-Sonoma, Inc. | 15,900 | | 125,928 |
Specialty Stores - 4.4% |
PetSmart, Inc. | 8,400 | | 157,668 |
|
| Shares | | Value |
Sally Beauty Holdings, Inc. (a) | 12,400 | | $ 58,652 |
Staples, Inc. | 38,938 | | 620,672 |
| | 836,992 |
TOTAL SPECIALTY RETAIL | | 4,345,692 |
TEXTILES, APPAREL & LUXURY GOODS - 6.5% |
Apparel, Accessories & Luxury Goods - 2.7% |
Coach, Inc. (a) | 8,400 | | 122,640 |
G-III Apparel Group Ltd. (a) | 9,700 | | 53,350 |
Hanesbrands, Inc. (a) | 10,100 | | 90,799 |
Polo Ralph Lauren Corp. Class A | 2,300 | | 94,369 |
VF Corp. | 2,900 | | 162,458 |
| | 523,616 |
Footwear - 3.8% |
Iconix Brand Group, Inc. (a) | 37,800 | | 312,606 |
NIKE, Inc. Class B | 9,200 | | 416,300 |
| | 728,906 |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | 1,252,522 |
TOTAL COMMON STOCKS (Cost $28,085,070) | 18,942,982 |
Money Market Funds - 4.6% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 188,192 | | 188,192 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 684,950 | | 684,950 |
TOTAL MONEY MARKET FUNDS (Cost $873,142) | 873,142 |
TOTAL INVESTMENT PORTFOLIO - 103.6% (Cost $28,958,212) | | 19,816,124 |
NET OTHER ASSETS - (3.6)% | | (693,038) |
NET ASSETS - 100% | $ 19,123,086 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 2,220 |
Fidelity Securities Lending Cash Central Fund | 26,297 |
Total | $ 28,517 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 19,816,124 | $ 19,539,652 | $ 190,972 | $ 85,500 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (14,500) |
Cost of Purchases | 100,000 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 85,500 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $2,972,883 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Consumer Discretionary Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $712,032) - See accompanying schedule: Unaffiliated issuers (cost $28,085,070) | $ 18,942,982 | |
Fidelity Central Funds (cost $873,142) | 873,142 | |
Total Investments (cost $28,958,212) | | $ 19,816,124 |
Cash | | 24,137 |
Foreign currency held at value (cost $5) | | 4 |
Receivable for investments sold | | 259,710 |
Receivable for fund shares sold | | 5,883 |
Dividends receivable | | 5,956 |
Distributions receivable from Fidelity Central Funds | | 1,728 |
Prepaid expenses | | 253 |
Receivable from investment adviser for expense reductions | | 148 |
Other receivables | | 11 |
Total assets | | 20,113,954 |
| | |
Liabilities | | |
Payable for investments purchased | $ 159,856 | |
Payable for fund shares redeemed | 97,570 | |
Accrued management fee | 9,708 | |
Distribution fees payable | 9,024 | |
Other affiliated payables | 5,734 | |
Other payables and accrued expenses | 24,026 | |
Collateral on securities loaned, at value | 684,950 | |
Total liabilities | | 990,868 |
| | |
Net Assets | | $ 19,123,086 |
Net Assets consist of: | | |
Paid in capital | | $ 35,674,939 |
Accumulated net investment loss | | (10,822) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (7,398,942) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (9,142,089) |
Net Assets | | $ 19,123,086 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($7,964,194 ÷ 1,007,812 shares) | | $ 7.90 |
| | |
Maximum offering price per share (100/94.25 of $7.90) | | $ 8.38 |
Class T:
Net Asset Value and redemption price per share ($5,631,513 ÷ 734,568 shares) | | $ 7.67 |
| | |
Maximum offering price per share (100/96.50 of $7.67) | | $ 7.95 |
Class B:
Net Asset Value and offering price per share ($2,989,075 ÷ 417,429 shares)A | | $ 7.16 |
| | |
Class C:
Net Asset Value and offering price per share ($2,282,126 ÷ 318,227 shares)A | | $ 7.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($256,178 ÷ 31,238 shares) | | $ 8.20 |
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.
Consumer Discretionary
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 202,343 |
Interest | | 5 |
Income from Fidelity Central Funds (including $26,297 from security lending) | | 28,517 |
Total income | | 230,865 |
| | |
Expenses | | |
Management fee | $ 68,438 | |
Transfer agent fees | 36,129 | |
Distribution fees | 64,439 | |
Accounting and security lending fees | 5,254 | |
Custodian fees and expenses | 2,960 | |
Independent trustees' compensation | 71 | |
Registration fees | 32,038 | |
Audit | 22,623 | |
Legal | 104 | |
Miscellaneous | 2,041 | |
Total expenses before reductions | 234,097 | |
Expense reductions | (29,344) | 204,753 |
Net investment income (loss) | | 26,112 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (4,277,816) | |
Foreign currency transactions | 9 | |
Total net realized gain (loss) | | (4,277,807) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (4,831,126) | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | | (4,831,127) |
Net gain (loss) | | (9,108,934) |
Net increase (decrease) in net assets resulting from operations | | $ (9,082,822) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,112 | $ (64,816) |
Net realized gain (loss) | (4,277,807) | (2,749,077) |
Change in net unrealized appreciation (depreciation) | (4,831,127) | (6,918,327) |
Net increase (decrease) in net assets resulting from operations | (9,082,822) | (9,732,220) |
Distributions to shareholders from net investment income | (36,930) | - |
Distributions to shareholders from net realized gain | - | (4,774,547) |
Total distributions | (36,930) | (4,774,547) |
Share transactions - net increase (decrease) | (1,672,477) | (10,594,844) |
Redemption fees | 3,299 | 847 |
Total increase (decrease) in net assets | (10,788,930) | (25,100,764) |
| | |
Net Assets | | |
Beginning of period | 29,912,016 | 55,012,780 |
End of period (including accumulated net investment loss of $10,822 and accumulated net investment loss of $4, respectively) | $ 19,123,086 | $ 29,912,016 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 | $ 13.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | .02 | .02 H | (.04) | (.07) | (.07) |
Net realized and unrealized gain (loss) | (3.50) | (3.09) | 1.83 | (.07) | 2.71 | .87 |
Total from investment operations | (3.48) | (3.07) | 1.85 | (.11) | 2.64 | .80 |
Distributions from net investment income | (.03) | - | (.05) | - | - | - |
Distributions from net realized gain | - | (1.41) | (2.30) | (.12) | (.53) | - |
Total distributions | (.03) | (1.41) | (2.35) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.90 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 |
Total Return B, C, D | (30.56)% | (21.24)% | 11.67% | (.69)% | 18.85% | 5.84% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.64% A | 1.40% | 1.42% | 1.42% | 1.47% | 1.55% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.44% | 1.50% |
Expenses net of all reductions | 1.40% A | 1.40% | 1.39% | 1.39% | 1.42% | 1.45% |
Net investment income (loss) | .50% A | .15% | .11% H | (.23)% | (.45)% | (.50)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,964 | $ 11,899 | $ 19,708 | $ 16,935 | $ 17,887 | $ 11,856 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.32)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 | $ 13.51 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.01) | (.02) H | (.07) | (.11) | (.11) |
Net realized and unrealized gain (loss) | (3.39) | (3.00) | 1.79 | (.07) | 2.66 | .87 |
Total from investment operations | (3.38) | (3.01) | 1.77 | (.14) | 2.55 | .76 |
Distributions from net investment income | (.02) | - | (.03) | - | - | - |
Distributions from net realized gain | - | (1.39) | (2.30) | (.12) | (.53) | - |
Total distributions | (.02) | (1.39) | (2.33) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.67 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 |
Total Return B, C, D | (30.59)% | (21.41) | 11.43% | (.89)% | 18.52% | 5.63% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.89% A | 1.64% | 1.69% | 1.69% | 1.75% | 1.81% |
Expenses net of fee waivers, if any | 1.65% A | 1.64% | 1.65% | 1.65% | 1.69% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.62% | 1.61% | 1.62% | 1.67% | 1.70% |
Net investment income (loss) | .25% A | (.08)% | (.10)% H | (.46)% | (.70)% | (.74)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,632 | $ 9,095 | $ 14,787 | $ 14,267 | $ 16,782 | $ 15,555 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.53)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 | $ 13.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.07) | (.10) H | (.15) | (.17) | (.18) |
Net realized and unrealized gain (loss) | (3.18) | (2.81) | 1.70 | (.07) | 2.55 | .85 |
Total from investment operations | (3.19) | (2.88) | 1.60 | (.22) | 2.38 | .67 |
Distributions from net realized gain | - | (1.33) | (2.30) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.16 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 |
Total Return B, C, D | (30.82)% | (21.80)% | 10.82% | (1.45)% | 17.97% | 5.12% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.39% A | 2.14% | 2.20% | 2.19% | 2.24% | 2.29% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.15% | 2.19% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.15% | 2.14% | 2.16% | 2.20% |
Net investment income (loss) | (.26)% A | (.60)% | (.64)% H | (.98)% | (1.20)% | (1.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,989 | $ 5,090 | $ 11,081 | $ 14,088 | $ 18,862 | $ 17,302 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 | $ 13.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.07) | (.10) H | (.15) | (.17) | (.18) |
Net realized and unrealized gain (loss) | (3.19) | (2.81) | 1.71 | (.07) | 2.55 | .85 |
Total from investment operations | (3.20) | (2.88) | 1.61 | (.22) | 2.38 | .67 |
Distributions from net realized gain | - | (1.34) | (2.30) | (.12) | (.53) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.17 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 |
Total Return B, C, D | (30.86)% | (21.77)% | 10.88% | (1.45)% | 17.94% | 5.11% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 2.40% A | 2.15% | 2.16% | 2.12% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.12% | 2.17% | 2.24% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.15% | 2.12% | 2.14% | 2.19% |
Net investment income (loss) | (.25)% A | (.60)% | (.64)% H | (.95)% | (1.18)% | (1.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,282 | $ 3,430 | $ 8,051 | $ 7,160 | $ 8,505 | $ 6,992 |
Portfolio turnover rate G | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.07)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 | $ 13.95 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .06 | .06 G | - | (.03) | (.04) |
Net realized and unrealized gain (loss) | (3.64) | (3.22) | 1.89 | (.07) | 2.76 | .90 |
Total from investment operations | (3.60) | (3.16) | 1.95 | (.07) | 2.73 | .86 |
Distributions from net investment income | (.04) | - | (.06) | - | - | - |
Distributions from net realized gain | - | (1.41) | (2.30) | (.12) | (.53) | - |
Total distributions | (.04) | (1.41) | (2.36) | (.12) | (.53) | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.20 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 |
Total Return B, C | (30.46)% | (21.09)% | 12.04% | (.44)% | 19.08% | 6.16% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | 1.41% A | 1.14% | 1.15% | 1.18% | 1.26% | 1.34% |
Expenses net of fee waivers, if any | 1.15% A | 1.14% | 1.15% | 1.15% | 1.20% | 1.25% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.14% | 1.14% | 1.17% | 1.20% |
Net investment income (loss) | .75% A | .40% | .36% G | .02% | (.21)% | (.25)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 256 | $ 398 | $ 1,385 | $ 1,144 | $ 1,371 | $ 907 |
Portfolio turnover rate F | 73% A | 63% | 164% | 81% | 66% | 152% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Consumer Discretionary Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 888,067 |
Unrealized depreciation | (10,274,546) |
Net unrealized appreciation (depreciation) | $ (9,386,479) |
Cost for federal income tax purposes | $ 29,202,603 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Consumer Discretionary
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $8,907,403 and $10,765,074, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 12,281 | $ 14 |
Class T | .25% | .25% | 18,294 | - |
Class B | .75% | .25% | 19,785 | 14,875 |
Class C | .75% | .25% | 14,079 | 1,118 |
| | | $ 64,439 | $ 16,007 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 3,210 |
Class T | 814 |
Class B* | 5,315 |
Class C* | 48 |
| $ 9,387 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 14,632 | .30 |
Class T | 10,846 | .30 |
Class B | 5,890 | .30 |
Class C | 4,202 | .30 |
Institutional Class | 559 | .30 |
| $ 36,129 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $734 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $31 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 11,859 |
Class T | 1.65% | 8,798 |
Class B | 2.15% | 4,763 |
Class C | 2.15% | 3,430 |
Institutional Class | 1.15% | 479 |
| | $ 29,329 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15 for the period.
Consumer Discretionary
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 24,249 | $ - |
Class T | 11,523 | - |
Institutional Class | 1,158 | - |
Total | $ 36,930 | $ - |
From net realized gain | | |
Class A | $ - | $ 1,697,903 |
Class T | - | 1,304,169 |
Class B | - | 954,937 |
Class C | - | 712,594 |
Institutional Class | - | 104,944 |
Total | $ - | $ 4,774,547 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 214,617 | 231,645 | $ 2,067,897 | $ 3,074,782 |
Reinvestment of distributions | 2,650 | 104,669 | 22,145 | 1,531,841 |
Shares redeemed | (251,930) | (533,803) | (2,272,898) | (7,132,154) |
Net increase (decrease) | (34,663) | (197,489) | $ (182,856) | $ (2,525,531) |
Class T | | | | |
Shares sold | 38,143 | 113,866 | $ 344,438 | $ 1,488,704 |
Reinvestment of distributions | 1,356 | 84,915 | 11,014 | 1,207,897 |
Shares redeemed | (126,207) | (333,215) | (1,161,320) | (4,304,558) |
Net increase (decrease) | (86,708) | (134,434) | $ (805,868) | $ (1,607,957) |
Class B | | | | |
Shares sold | 25,217 | 34,749 | $ 217,813 | $ 420,244 |
Reinvestment of distributions | - | 65,209 | - | 871,754 |
Shares redeemed | (99,539) | (369,099) | (884,619) | (4,475,959) |
Net increase (decrease) | (74,322) | (269,141) | $ (666,806) | $ (3,183,961) |
Class C | | | | |
Shares sold | 42,364 | 46,115 | $ 369,775 | $ 563,853 |
Reinvestment of distributions | - | 37,909 | - | 507,333 |
Shares redeemed | (55,019) | (304,893) | (468,148) | (3,642,610) |
Net increase (decrease) | (12,655) | (220,869) | $ (98,373) | $ (2,571,424) |
Institutional Class | | | | |
Shares sold | 32,212 | 41,241 | $ 374,691 | $ 586,738 |
Reinvestment of distributions | 104 | 5,683 | 903 | 86,193 |
Shares redeemed | (34,687) | (97,732) | (294,168) | (1,378,902) |
Net increase (decrease) | (2,371) | (50,808) | $ 81,426 | $ (705,971) |
Semiannual Report
Advisor Electronics Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.40% | | | |
Actual | | $ 1,000.00 | $ 595.00 | $ 5.63 |
Hypothetical A | | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% | | | |
Actual | | $ 1,000.00 | $ 595.20 | $ 6.63 |
Hypothetical A | | $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% | | | |
Actual | | $ 1,000.00 | $ 592.50 | $ 8.63 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% | | | |
Actual | | $ 1,000.00 | $ 593.50 | $ 8.64 |
Hypothetical A | | $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% | | | |
Actual | | $ 1,000.00 | $ 596.50 | $ 4.63 |
Hypothetical A | | $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Electronics
Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Intel Corp. | 24.0 | 23.7 |
Texas Instruments, Inc. | 10.1 | 7.8 |
Applied Materials, Inc. | 7.4 | 9.2 |
Marvell Technology Group Ltd. | 3.2 | 0.6 |
Analog Devices, Inc. | 2.9 | 0.0 |
Lam Research Corp. | 2.4 | 2.3 |
National Semiconductor Corp. | 2.4 | 0.0 |
Varian Semiconductor Equipment Associates, Inc. | 2.4 | 2.3 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 2.2 | 1.6 |
Broadcom Corp. Class A | 2.1 | 3.7 |
| 59.1 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Semiconductors & Semiconductor Equipment | 86.2% | |
| Electronic Equipment & Components | 4.5% | |
| Communications Equipment | 2.6% | |
| Electrical Equipment | 1.6% | |
| Computers & Peripherals | 1.0% | |
| All Others* | 4.1% | |
|
As of July 31, 2008 |
| Semiconductors & Semiconductor Equipment | 76.0% | |
| Communications Equipment | 6.0% | |
| Electrical Equipment | 4.9% | |
| Computers & Peripherals | 4.3% | |
| Electronic Equipment & Instruments | 2.3% | |
| All Others* | 6.5% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Electronics Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.1% |
| Shares | | Value |
CHEMICALS - 0.0% |
Specialty Chemicals - 0.0% |
Nanophase Technologies Corp. (a) | 1,945 | | $ 1,614 |
COMMUNICATIONS EQUIPMENT - 2.3% |
Communications Equipment - 2.3% |
Cisco Systems, Inc. (a) | 1,800 | | 26,946 |
QUALCOMM, Inc. | 3,900 | | 134,745 |
| | 161,691 |
COMPUTERS & PERIPHERALS - 0.9% |
Computer Hardware - 0.5% |
HTC Corp. | 4,080 | | 38,528 |
Computer Storage & Peripherals - 0.4% |
SanDisk Corp. (a) | 1,700 | | 19,431 |
Seagate Technology | 2,300 | | 8,717 |
| | 28,148 |
TOTAL COMPUTERS & PERIPHERALS | | 66,676 |
ELECTRICAL EQUIPMENT - 1.6% |
Electrical Components & Equipment - 1.6% |
First Solar, Inc. (a) | 300 | | 42,840 |
Motech Industries, Inc. | 1 | | 2 |
Q-Cells SE (a) | 800 | | 19,665 |
Renewable Energy Corp. AS (a) | 2,000 | | 20,178 |
SolarWorld AG | 1,000 | | 21,240 |
Sunpower Corp. Class B (a) | 400 | | 10,568 |
| | 114,493 |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.9% |
Electronic Components - 0.6% |
Everlight Electronics Co. Ltd. | 20,559 | | 27,160 |
Vishay Intertechnology, Inc. (a) | 4,700 | | 13,912 |
| | 41,072 |
Electronic Manufacturing Services - 0.7% |
DDi Corp. (a) | 2,200 | | 7,436 |
Flextronics International Ltd. (a) | 10,600 | | 27,666 |
Jabil Circuit, Inc. | 1,900 | | 11,058 |
| | 46,160 |
Technology Distributors - 2.6% |
Arrow Electronics, Inc. (a) | 1,700 | | 32,419 |
Avnet, Inc. (a) | 6,100 | | 120,902 |
Ingram Micro, Inc. Class A (a) | 2,700 | | 33,129 |
| | 186,450 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 273,682 |
|
| Shares | | Value |
LIFE SCIENCES TOOLS & SERVICES - 0.6% |
Life Sciences Tools & Services - 0.6% |
Arrowhead Research Corp. (a) | 4,216 | | $ 3,668 |
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | | 41,189 |
| | 44,857 |
METALS & MINING - 0.1% |
Diversified Metals & Mining - 0.1% |
Timminco Ltd. (a) | 2,600 | | 7,339 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 83.3% |
Semiconductor Equipment - 19.6% |
Advanced Energy Industries, Inc. (a) | 200 | | 1,796 |
Aixtron AG | 4,200 | | 21,724 |
Amkor Technology, Inc. (a) | 600 | | 1,392 |
Applied Materials, Inc. | 55,900 | | 523,783 |
ASML Holding NV (NY Shares) | 8,900 | | 147,206 |
ATMI, Inc. (a) | 1,600 | | 21,616 |
Brooks Automation, Inc. (a) | 300 | | 1,371 |
Cabot Microelectronics Corp. (a) | 100 | | 2,276 |
Cohu, Inc. | 100 | | 998 |
Cymer, Inc. (a) | 4,200 | | 85,680 |
Entegris, Inc. (a) | 600 | | 834 |
FEI Co. (a) | 200 | | 3,640 |
FormFactor, Inc. (a) | 1,450 | | 22,562 |
Global Unichip Corp. | 5,383 | | 19,823 |
KLA-Tencor Corp. | 1,000 | | 20,040 |
Lam Research Corp. (a) | 8,600 | | 173,806 |
MEMC Electronic Materials, Inc. (a) | 9,000 | | 122,400 |
MKS Instruments, Inc. (a) | 200 | | 2,810 |
Novellus Systems, Inc. (a) | 500 | | 6,895 |
Teradyne, Inc. (a) | 400 | | 1,924 |
Tessera Technologies, Inc. (a) | 3,700 | | 43,512 |
Ultratech, Inc. (a) | 100 | | 1,120 |
Varian Semiconductor Equipment Associates, Inc. (a) | 8,900 | | 169,456 |
Veeco Instruments, Inc. (a) | 200 | | 966 |
Verigy Ltd. (a) | 300 | | 2,493 |
| | 1,400,123 |
Semiconductors - 63.7% |
Actel Corp. (a) | 100 | | 902 |
Advanced Analogic Technologies, Inc. (a) | 11,200 | | 33,712 |
Advanced Micro Devices, Inc. (a) | 3,400 | | 7,446 |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 19,337 | | 30,939 |
Altera Corp. | 3,100 | | 47,678 |
Analog Devices, Inc. | 10,300 | | 205,794 |
Applied Micro Circuits Corp. (a) | 1,200 | | 4,800 |
ARM Holdings PLC sponsored ADR | 20,100 | | 80,601 |
Atmel Corp. (a) | 27,600 | | 92,184 |
Broadcom Corp. Class A (a) | 9,350 | | 148,198 |
California Micro Devices Corp. (a) | 3,500 | | 7,490 |
Cavium Networks, Inc. (a) | 2,500 | | 22,750 |
Common Stocks - continued |
| Shares | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED |
Semiconductors - continued |
Chartered Semiconductor Manufacturing Ltd. sponsored ADR (a) | 4,300 | | $ 6,321 |
Cree, Inc. (a) | 400 | | 7,972 |
Cypress Semiconductor Corp. (a) | 2,100 | | 9,471 |
Diodes, Inc. (a) | 200 | | 1,296 |
DSP Group, Inc. (a) | 200 | | 1,302 |
Exar Corp. (a) | 200 | | 1,354 |
Fairchild Semiconductor International, Inc. (a) | 14,400 | | 65,520 |
Integrated Device Technology, Inc. (a) | 6,600 | | 37,884 |
Intel Corp. | 132,890 | | 1,714,281 |
International Rectifier Corp. (a) | 400 | | 5,448 |
Intersil Corp. Class A | 5,600 | | 52,136 |
Linear Technology Corp. | 1,200 | | 28,104 |
LSI Corp. (a) | 3,300 | | 10,494 |
Marvell Technology Group Ltd. (a) | 30,850 | | 224,897 |
Maxim Integrated Products, Inc. | 4,800 | | 63,504 |
Micrel, Inc. | 300 | | 2,280 |
Microchip Technology, Inc. | 600 | | 11,382 |
Micron Technology, Inc. (a) | 28,500 | | 106,020 |
Microsemi Corp. (a) | 2,200 | | 18,480 |
National Semiconductor Corp. | 17,100 | | 173,394 |
Netlogic Microsystems, Inc. (a) | 100 | | 2,121 |
NVIDIA Corp. (a) | 11,500 | | 91,425 |
O2Micro International Ltd. sponsored ADR (a) | 3,100 | | 7,130 |
Omnivision Technologies, Inc. (a) | 300 | | 2,007 |
ON Semiconductor Corp. (a) | 2,700 | | 11,259 |
PMC-Sierra, Inc. (a) | 8,100 | | 39,447 |
Power Integrations, Inc. | 700 | | 13,629 |
Rambus, Inc. (a) | 500 | | 4,530 |
RF Micro Devices, Inc. (a) | 1,300 | | 1,404 |
Richtek Technology Corp. | 8,005 | | 29,241 |
Samsung Electronics Co. Ltd. | 255 | | 88,542 |
Semtech Corp. (a) | 400 | | 4,700 |
Sigma Designs, Inc. (a) | 100 | | 1,022 |
Silicon Image, Inc. (a) | 400 | | 1,468 |
Silicon Laboratories, Inc. (a) | 300 | | 6,909 |
Silicon Storage Technology, Inc. (a) | 500 | | 1,025 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 10,343 | | 42,717 |
Skyworks Solutions, Inc. (a) | 900 | | 3,888 |
Standard Microsystems Corp. (a) | 700 | | 9,695 |
Supertex, Inc. (a) | 60 | | 1,361 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 21,107 | | 159,147 |
Texas Instruments, Inc. | 48,300 | | 722,085 |
TriQuint Semiconductor, Inc. (a) | 800 | | 1,616 |
|
| Shares | | Value |
Xilinx, Inc. | 3,000 | | $ 50,550 |
Zoran Corp. (a) | 3,100 | | 18,414 |
| | 4,539,366 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 5,939,489 |
SOFTWARE - 0.4% |
Home Entertainment Software - 0.4% |
Nintendo Co. Ltd. | 100 | | 29,120 |
TOTAL COMMON STOCKS (Cost $12,531,941) | 6,638,961 |
Convertible Bonds - 3.9% |
| Principal Amount (c) | | |
COMMUNICATIONS EQUIPMENT - 0.3% |
Communications Equipment - 0.3% |
Lucent Technologies, Inc. 2.875% 6/15/25 | | $ 50,000 | | 22,875 |
COMPUTERS & PERIPHERALS - 0.1% |
Computer Storage & Peripherals - 0.1% |
Maxtor Corp. 2.375% 8/15/12 | | 20,000 | | 11,474 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Manufacturing Services - 0.6% |
TTM Technologies, Inc. 3.25% 5/15/15 | | 70,000 | | 40,236 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.9% |
Semiconductor Equipment - 0.7% |
Amkor Technology, Inc. 2.5% 5/15/11 | | 80,000 | | 48,160 |
Semiconductors - 2.2% |
Advanced Micro Devices, Inc. 6% 5/1/15 | | 220,000 | | 69,344 |
Diodes, Inc. 2.25% 10/1/26 | | 40,000 | | 27,176 |
Infineon Technologies Holding BV 5% 6/5/10 | EUR | 50,000 | | 22,245 |
Xilinx, Inc. 3.125% 3/15/37 | | 60,000 | | 39,378 |
| | 158,143 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 206,303 |
TOTAL CONVERTIBLE BONDS (Cost $305,685) | 280,888 |
Money Market Funds - 2.9% |
| Shares | | Value |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $204,417) | 204,417 | | $ 204,417 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $13,042,043) | | 7,124,266 |
NET OTHER ASSETS - 0.1% | | 9,394 |
NET ASSETS - 100% | $ 7,133,660 |
Currency Abbreviation |
EUR | - | European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Principal amount is stated in United States dollars unless otherwise noted. |
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 | $ 2,516 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 7,124,266 | $ 6,569,773 | $ 554,493 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 84.8% |
Taiwan | 4.8% |
Bermuda | 3.2% |
Netherlands | 2.4% |
Korea (South) | 1.3% |
United Kingdom | 1.1% |
Others (individually less than 1%) | 2.4% |
| 100.0% |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $7,629,844 of which $4,774,109, $2,265,871, $279,201 and $310,663 will expire on July 31, 2011, 2012, 2013 and 2016, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,004,653 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Advisor Electronics Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $12,837,626) | $ 6,919,849 | |
Fidelity Central Funds (cost $204,417) | 204,417 | |
Total Investments (cost $13,042,043) | | $ 7,124,266 |
Cash | | 29,604 |
Receivable for investments sold | | 33,862 |
Receivable for fund shares sold | | 13,246 |
Dividends receivable | | 6,258 |
Interest receivable | | 7,651 |
Distributions receivable from Fidelity Central Funds | | 286 |
Prepaid expenses | | 103 |
Receivable from investment adviser for expense reductions | | 3,477 |
Other receivables | | 71 |
Total assets | | 7,218,824 |
| | |
Liabilities | | |
Payable for investments purchased | $ 26,031 | |
Payable for fund shares redeemed | 29,030 | |
Accrued management fee | 3,535 | |
Distribution fees payable | 3,670 | |
Other affiliated payables | 2,141 | |
Other payables and accrued expenses | 20,757 | |
Total liabilities | | 85,164 |
| | |
Net Assets | | $ 7,133,660 |
Net Assets consist of: | | |
Paid in capital | | $ 28,088,378 |
Undistributed net investment income | | 6,598 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (15,043,336) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,917,980) |
Net Assets | | $ 7,133,660 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($2,134,048 ÷ 528,351 shares) | | $ 4.04 |
| | |
Maximum offering price per share (100/94.25 of $4.04) | | $ 4.29 |
Class T:
Net Asset Value and redemption price per share ($2,368,981 ÷ 597,420 shares) | | $ 3.97 |
| | |
Maximum offering price per share (100/96.50 of $3.97) | | $ 4.11 |
Class B:
Net Asset Value and offering price per share ($803,891 ÷ 210,962 shares)A | | $ 3.81 |
| | |
Class C:
Net Asset Value and offering price per share ($1,659,797 ÷ 436,056 shares)A | | $ 3.81 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($166,943 ÷ 40,370 shares) | | $ 4.14 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Electronics Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 88,520 |
Interest | | 3,374 |
Income from Fidelity Central Funds | | 2,516 |
Total income | | 94,410 |
| | |
Expenses | | |
Management fee | $ 28,121 | |
Transfer agent fees | 16,173 | |
Distribution fees | 30,104 | |
Accounting fees and expenses | 1,942 | |
Custodian fees and expenses | 6,873 | |
Independent trustees' compensation | 30 | |
Registration fees | 42,086 | |
Audit | 23,062 | |
Legal | 85 | |
Miscellaneous | 1,694 | |
Total expenses before reductions | 150,170 | |
Expense reductions | (62,358) | 87,812 |
Net investment income (loss) | | 6,598 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,103,813) | |
Foreign currency transactions | (1,086) | |
Total net realized gain (loss) | | (3,104,899) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,337,641) | |
Assets and liabilities in foreign currencies | (91) | |
Total change in net unrealized appreciation (depreciation) | | (2,337,732) |
Net gain (loss) | | (5,442,631) |
Net increase (decrease) in net assets resulting from operations | | $ (5,436,033) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,598 | $ (90,535) |
Net realized gain (loss) | (3,104,899) | (4,347,575) |
Change in net unrealized appreciation (depreciation) | (2,337,732) | (2,232,309) |
Net increase (decrease) in net assets resulting from operations | (5,436,033) | (6,670,419) |
Share transactions - net increase (decrease) | (1,740,402) | (8,363,960) |
Redemption fees | 250 | 266 |
Total increase (decrease) in net assets | (7,176,185) | (15,034,113) |
| | |
Net Assets | | |
Beginning of period | 14,309,845 | 29,343,958 |
End of period (including undistributed net investment income of $6,598 and $0, respectively) | $ 7,133,660 | $ 14,309,845 |
See accompanying notes which are an integral part of the financial statements.
Electronics
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 | $ 6.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | - I | (.03) | (.04) | (.07) | (.09) |
Net realized and unrealized gain (loss) | (2.76) | (2.32) | 1.76 | (.62) | 1.53 | .08 |
Total from investment operations | (2.75) | (2.32) | 1.73 | (.66) | 1.46 | (.01) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 4.04 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 |
Total Return B,C,D | (40.50)% | (25.47)% | 23.44% | (8.21)% | 22.19% | (.15)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.63% A | 1.72% | 1.60% | 1.50% | 1.59% | 1.55% |
Expenses net of fee waivers, if any | 1.40%A | 1.40% | 1.40% | 1.40% | 1.45% | 1.50% |
Expenses net of all reductions | 1.40%A | 1.39% | 1.38% | 1.36% | 1.38% | 1.48% |
Net investment income (loss) | .48%A | (.02)% | (.35)% | (.52)% | (.96)% | (1.15)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,134 | $ 3,970 | $ 7,551 | $ 7,916 | $ 11,397 | $ 8,374 |
Portfolio turnover rate G | 89%A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 | $ 6.56 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.02) | (.05) | (.06) | (.08) | (.11) |
Net realized and unrealized gain (loss) | (2.71) | (2.29) | 1.74 | (.61) | 1.51 | .08 |
Total from investment operations | (2.70) | (2.31) | 1.69 | (.67) | 1.43 | (.03) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.97 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 |
Total Return B,C,D | (40.48)% | (25.72)% | 23.18% | (8.42)% | 21.90% | (.46)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 2.94% A | 2.02% | 1.89% | 1.82% | 1.89% | 1.83% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.69% | 1.75% |
Expenses net of all reductions | 1.65% A | 1.64% | 1.64% | 1.61% | 1.61% | 1.72% |
Net investment income (loss) | .24% A | (.27)% | (.60)% | (.77)% | (1.20)% | (1.39)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,369 | $ 4,635 | $ 8,103 | $ 9,048 | $ 12,085 | $ 15,445 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 | $ 6.48 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.06) | (.09) | (.10) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (2.61) | (2.21) | 1.69 | (.58) | 1.48 | .08 |
Total from investment operations | (2.62) | (2.27) | 1.60 | (.68) | 1.36 | (.06) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.81 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 |
Total Return B,C,D | (40.75)% | (26.09)% | 22.54% | (8.74)% | 21.18% | (.93)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.36% A | 2.48% | 2.36% | 2.29% | 2.41% | 2.41% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.21% | 2.25% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.13% | 2.11% | 2.13% | 2.23% |
Net investment income (loss) | (.27)% A | (.77)% | (1.10)% | (1.27)% | (1.72)% | (1.90)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 804 | $ 2,027 | $ 4,572 | $ 6,123 | $ 8,963 | $ 8,498 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 | $ 6.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.06) | (.09) | (.10) | (.11) | (.14) |
Net realized and unrealized gain (loss) | (2.60) | (2.21) | 1.69 | (.58) | 1.47 | .08 |
Total from investment operations | (2.61) | (2.27) | 1.60 | (.68) | 1.36 | (.06) |
Redemption fees added to paid in capital E,I | - | - | - | - | - | - |
Net asset value, end of period | $ 3.81 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 |
Total Return B,C,D | (40.65)% | (26.12)% | 22.57% | (8.75)% | 21.22% | (.93)% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 3.40% A | 2.47% | 2.34% | 2.26% | 2.31% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.18% | 2.24% |
Expenses net of all reductions | 2.15% A | 2.14% | 2.13% | 2.11% | 2.11% | 2.21% |
Net investment income (loss) | (.27)% A | (.77)% | (1.10)% | (1.27)% | (1.69)% | (1.88)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,660 | $ 3,325 | $ 8,389 | $ 7,009 | $ 11,058 | $ 12,322 |
Portfolio turnover rate G | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 | $ 6.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .02 | (.01) | (.02) | (.05) | (.06) |
Net realized and unrealized gain (loss) | (2.82) | (2.38) | 1.80 | (.62) | 1.55 | .07 |
Total from investment operations | (2.80) | (2.36) | 1.79 | (.64) | 1.50 | .01 |
Redemption fees added to paid in capital D,H | - | - | - | - | - | - |
Net asset value, end of period | $ 4.14 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 |
Total Return B,C | (40.35)% | (25.38)% | 23.83% | (7.85)% | 22.56% | .15% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | 2.34% A | 1.47% | 1.26% | 1.11% | 1.16% | 1.12% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.11% | 1.16% | 1.12% |
Expenses net of all reductions | 1.15% A | 1.14% | 1.13% | 1.07% | 1.08% | 1.09% |
Net investment income (loss) | .74% A | .23% | (.10)% | (.23)% | (.67)% | (.76)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 167 | $ 353 | $ 730 | $ 750 | $ 899 | $ 687 |
Portfolio turnover rate F | 89% A | 93% | 97% | 95% | 128% | 84% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Electronics Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Electronics
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,497 |
Unrealized depreciation | (6,390,434) |
Net unrealized appreciation (depreciation) | $ (6,353,937) |
Cost for federal income tax purposes | $ 13,478,203 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $4,452,397 and $6,144,134, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 3,482 | $ 112 |
Class T | .25% | .25% | 8,245 | 81 |
Class B | .75% | .25% | 6,552 | 4,922 |
Class C | .75% | .25% | 11,825 | 657 |
| | | $ 30,104 | $ 5,772 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 274 |
Class T | 556 |
Class B* | 2,010 |
Class C* | 74 |
| $ 2,914 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size
Electronics
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 4,282 | .31 |
Class T | 5,892 | .36 |
Class B | 2,000 | .30 |
Class C | 3,644 | .31 |
Institutional Class | 355 | .32 |
| $ 16,173 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $315 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $13 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.40% | $ 17,038 |
Class T | 1.65% | 21,238 |
Class B | 2.15% | 7,924 |
Class C | 2.15% | 14,713 |
Institutional Class | 1.15% | 1,335 |
| | $ 62,248 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $110 for the period.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 64,497 | 161,701 | $ 310,871 | $ 1,242,418 |
Shares redeemed | (120,952) | (405,321) | (660,246) | (3,221,767) |
Net increase (decrease) | (56,455) | (243,620) | $ (349,375) | $ (1,979,349) |
Class T | | | | |
Shares sold | 66,917 | 93,832 | $ 320,940 | $ 747,770 |
Shares redeemed | (163,950) | (301,416) | (809,675) | (2,324,905) |
Net increase (decrease) | (97,033) | (207,584) | $ (488,735) | $ (1,577,135) |
Class B | | | | |
Shares sold | 8,581 | 35,607 | $ 39,343 | $ 276,103 |
Shares redeemed | (112,926) | (246,055) | (529,746) | (1,804,727) |
Net increase (decrease) | (104,345) | (210,448) | $ (490,403) | $ (1,528,624) |
Class C | | | | |
Shares sold | 20,155 | 107,517 | $ 109,996 | $ 865,728 |
Shares redeemed | (101,758) | (555,338) | (456,213) | (3,939,431) |
Net increase (decrease) | (81,603) | (447,821) | $ (346,217) | $ (3,073,703) |
Institutional Class | | | | |
Shares sold | 6,447 | 9,123 | $ 33,812 | $ 82,426 |
Shares redeemed | (16,893) | (36,772) | (99,484) | (287,575) |
Net increase (decrease) | (10,446) | (27,649) | $ (65,672) | $ (205,149) |
Electronics
Advisor Energy Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.20% | | | |
Actual | | $ 1,000.00 | $ 490.60 | $ 4.51 |
Hypothetical A | | $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.43% | | | |
Actual | | $ 1,000.00 | $ 490.00 | $ 5.37 |
Hypothetical A | | $ 1,000.00 | $ 1,018.00 | $ 7.27 |
Class B | 1.94% | | | |
Actual | | $ 1,000.00 | $ 488.90 | $ 7.28 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.94% | | | |
Actual | | $ 1,000.00 | $ 488.70 | $ 7.28 |
Hypothetical A | | $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .93% | | | |
Actual | | $ 1,000.00 | $ 491.40 | $ 3.50 |
Hypothetical A | | $ 1,000.00 | $ 1,020.52 | $ 4.74 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Noble Corp. | 4.9 | 0.5 |
Occidental Petroleum Corp. | 4.8 | 3.0 |
Southwestern Energy Co. | 4.8 | 2.0 |
Range Resources Corp. | 4.2 | 4.5 |
Cabot Oil & Gas Corp. | 4.0 | 2.8 |
Hess Corp. | 3.7 | 2.6 |
Valero Energy Corp. | 3.3 | 3.7 |
Chevron Corp. | 3.2 | 0.3 |
Petrohawk Energy Corp. | 2.9 | 2.9 |
Anadarko Petroleum Corp. | 2.6 | 0.0 |
| 38.4 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Oil, Gas &
Consumable Fuels | 69.1% | |
| Energy Equipment & Services | 26.1% | |
| Electrical Equipment | 1.9% | |
| Gas Utilities | 1.0% | |
| Construction & Engineering | 0.7% | |
| All Others* | 1.2% | |
|
As of July 31, 2008 |
| Oil, Gas &
Consumable Fuels | 61.9% | |
| Energy Equipment & Services | 31.2% | |
| Electrical Equipment | 5.0% | |
| Construction & Engineering | 0.6% | |
| Gas Utilities | 0.3% | |
| All Others* | 1.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Energy Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% |
| Shares | | Value |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Environmental & Facility Services - 0.0% |
Fuel Tech, Inc. (a) | 16,062 | | $ 160,781 |
CONSTRUCTION & ENGINEERING - 0.7% |
Construction & Engineering - 0.7% |
Jacobs Engineering Group, Inc. (a) | 85,000 | | 3,286,950 |
ELECTRICAL EQUIPMENT - 1.9% |
Electrical Components & Equipment - 1.8% |
Evergreen Solar, Inc. (a) | 242,942 | | 536,902 |
First Solar, Inc. (a) | 17,200 | | 2,456,160 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 435,318 | | 1,157,946 |
Q-Cells SE (a)(d) | 16,793 | | 412,801 |
Renewable Energy Corp. AS (a) | 65,700 | | 662,851 |
Sunpower Corp. Class B (a) | 90,100 | | 2,380,442 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 40,800 | | 383,928 |
| | 7,991,030 |
Heavy Electrical Equipment - 0.1% |
Vestas Wind Systems AS (a) | 12,700 | | 620,368 |
TOTAL ELECTRICAL EQUIPMENT | | 8,611,398 |
ENERGY EQUIPMENT & SERVICES - 26.1% |
Oil & Gas Drilling - 13.6% |
Atwood Oceanics, Inc. (a) | 333,989 | | 5,560,917 |
Helmerich & Payne, Inc. | 319,053 | | 7,165,930 |
Hercules Offshore, Inc. (a) | 214,494 | | 797,918 |
Nabors Industries Ltd. (a) | 771,411 | | 8,446,950 |
Noble Corp. | 837,909 | | 22,749,231 |
Patterson-UTI Energy, Inc. | 172,717 | | 1,651,175 |
Pioneer Drilling Co. (a) | 70,685 | | 351,304 |
Pride International, Inc. (a) | 252,200 | | 4,065,464 |
Transocean Ltd. (a) | 210,864 | | 11,517,392 |
| | 62,306,281 |
Oil & Gas Equipment & Services - 12.5% |
Baker Hughes, Inc. | 36,900 | | 1,229,508 |
BJ Services Co. | 218,274 | | 2,401,014 |
Complete Production Services, Inc. (a) | 26,300 | | 168,583 |
Dresser-Rand Group, Inc. (a) | 25,000 | | 487,000 |
Dril-Quip, Inc. (a) | 84,055 | | 2,059,348 |
Exterran Holdings, Inc. (a) | 77,875 | | 1,725,710 |
FMC Technologies, Inc. (a) | 55,100 | | 1,630,409 |
Fugro NV (Certificaten Van Aandelen) unit | 1,693 | | 46,017 |
Global Industries Ltd. (a) | 377,303 | | 1,301,695 |
Halliburton Co. | 236,160 | | 4,073,760 |
Helix Energy Solutions Group, Inc. (a) | 77,300 | | 398,095 |
National Oilwell Varco, Inc. (a) | 422,757 | | 11,177,695 |
Oceaneering International, Inc. (a) | 59,800 | | 2,060,708 |
Oil States International, Inc. (a) | 63,500 | | 1,162,685 |
Schlumberger Ltd. (NY Shares) | 253,600 | | 10,349,416 |
Smith International, Inc. | 60,500 | | 1,373,350 |
|
| Shares | | Value |
Superior Energy Services, Inc. (a) | 214,784 | | $ 3,346,335 |
Tenaris SA sponsored ADR | 19,100 | | 377,989 |
Tidewater, Inc. | 61,959 | | 2,578,114 |
TSC Offshore Group Ltd. (a) | 1,258,000 | | 83,793 |
Weatherford International Ltd. (a) | 710,364 | | 7,835,315 |
Willbros Group, Inc. (a) | 186,294 | | 1,814,504 |
| | 57,681,043 |
TOTAL ENERGY EQUIPMENT & SERVICES | | 119,987,324 |
GAS UTILITIES - 1.0% |
Gas Utilities - 1.0% |
Equitable Resources, Inc. | 52,100 | | 1,783,383 |
Questar Corp. | 75,800 | | 2,575,684 |
Zhongyu Gas Holdings Ltd. (a) | 6,538,000 | | 377,770 |
| | 4,736,837 |
INDUSTRIAL CONGLOMERATES - 0.5% |
Industrial Conglomerates - 0.5% |
McDermott International, Inc. (a) | 220,147 | | 2,282,924 |
METALS & MINING - 0.1% |
Diversified Metals & Mining - 0.1% |
Teck Cominco Ltd. Class B (sub. vtg.) | 59,900 | | 231,616 |
MULTI-UTILITIES - 0.0% |
Multi-Utilities - 0.0% |
Sempra Energy | 4 | | 175 |
OIL, GAS & CONSUMABLE FUELS - 69.1% |
Coal & Consumable Fuels - 4.5% |
Arch Coal, Inc. | 288,285 | | 4,379,049 |
CONSOL Energy, Inc. | 187,613 | | 5,114,330 |
Foundation Coal Holdings, Inc. | 326,986 | | 5,303,713 |
Massey Energy Co. | 189,044 | | 2,869,688 |
Peabody Energy Corp. | 108,540 | | 2,713,500 |
PT Bumi Resources Tbk | 2,851,800 | | 124,056 |
| | 20,504,336 |
Integrated Oil & Gas - 22.4% |
Chevron Corp. | 206,900 | | 14,590,588 |
ConocoPhillips | 141,300 | | 6,715,989 |
ENI SpA sponsored ADR | 143,200 | | 6,070,248 |
Exxon Mobil Corp. | 73,092 | | 5,590,076 |
Hess Corp. | 304,300 | | 16,922,123 |
Marathon Oil Corp. | 403,600 | | 10,990,028 |
Occidental Petroleum Corp. | 403,800 | | 22,027,290 |
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 205,100 | | 4,442,466 |
Royal Dutch Shell PLC Class A sponsored ADR | 191,000 | | 9,402,930 |
Total SA sponsored ADR | 124,700 | | 6,207,566 |
| | 102,959,304 |
Oil & Gas Exploration & Production - 30.2% |
Anadarko Petroleum Corp. | 328,200 | | 12,058,068 |
Apache Corp. | 15,600 | | 1,170,000 |
Common Stocks - continued |
| Shares | | Value |
OIL, GAS & CONSUMABLE FUELS - CONTINUED |
Oil & Gas Exploration & Production - continued |
Berry Petroleum Co. Class A | 2,950 | | $ 21,712 |
Cabot Oil & Gas Corp. | 668,725 | | 18,383,250 |
Canadian Natural Resources Ltd. | 52,800 | | 1,890,437 |
Chesapeake Energy Corp. | 44,630 | | 705,600 |
Comstock Resources, Inc. (a) | 211,011 | | 8,045,849 |
Concho Resources, Inc. (a) | 128,398 | | 3,238,198 |
Denbury Resources, Inc. (a) | 422,943 | | 5,176,822 |
Devon Energy Corp. | 21,300 | | 1,312,080 |
Encore Acquisition Co. (a) | 67,362 | | 1,830,899 |
EOG Resources, Inc. | 1,284 | | 87,017 |
EXCO Resources, Inc. (a) | 288,853 | | 2,928,969 |
Forest Oil Corp. (a) | 26,600 | | 399,000 |
Goodrich Petroleum Corp. (a)(d) | 65,000 | | 1,878,500 |
Nexen, Inc. | 121,400 | | 1,768,735 |
Noble Energy, Inc. | 127,000 | | 6,214,110 |
Oil Search Ltd. | 320,172 | | 866,864 |
OPTI Canada, Inc. (a) | 267,800 | | 349,537 |
Penn Virginia Corp. | 81,764 | | 1,684,338 |
Petrobank Energy & Resources Ltd. (a) | 25,100 | | 397,226 |
Petrohawk Energy Corp. (a) | 669,097 | | 13,187,902 |
Petroquest Energy, Inc. (a)(d) | 206,685 | | 1,308,316 |
Plains Exploration & Production Co. (a) | 259,769 | | 5,486,321 |
Quicksilver Resources, Inc. (a) | 464,500 | | 3,218,985 |
Range Resources Corp. | 541,788 | | 19,417,682 |
SandRidge Energy, Inc. (a) | 399,450 | | 2,660,337 |
Southwestern Energy Co. (a) | 692,600 | | 21,920,790 |
Talisman Energy, Inc. | 5,000 | | 47,355 |
Whiting Petroleum Corp. (a) | 33,300 | | 965,700 |
| | 138,620,599 |
Oil & Gas Refining & Marketing - 10.4% |
Frontier Oil Corp. | 750,859 | | 10,722,267 |
Holly Corp. | 145,479 | | 3,399,844 |
Sunoco, Inc. | 210,300 | | 9,741,096 |
|
| Shares | | Value |
Tesoro Corp. | 496,476 | | $ 8,554,281 |
Valero Energy Corp. | 632,463 | | 15,255,008 |
| | 47,672,496 |
Oil & Gas Storage & Transport - 1.6% |
El Paso Corp. | 278,900 | | 2,281,402 |
Williams Companies, Inc. | 372,677 | | 5,273,380 |
| | 7,554,782 |
TOTAL OIL, GAS & CONSUMABLE FUELS | | 317,311,517 |
TOTAL COMMON STOCKS (Cost $558,635,744) | 456,609,522 |
Money Market Funds - 1.0% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,310,453 | | 1,310,453 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 3,257,918 | | 3,257,918 |
TOTAL MONEY MARKET FUNDS (Cost $4,568,371) | 4,568,371 |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $563,204,115) | | 461,177,893 |
NET OTHER ASSETS - (0.4)% | | (2,060,547) |
NET ASSETS - 100% | $ 459,117,346 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 54,545 |
Fidelity Securities Lending Cash Central Fund | 160,421 |
Total | $ 214,966 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 461,177,893 | $ 459,725,410 | $ 1,452,483 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 81.5% |
Cayman Islands | 5.4% |
Switzerland | 2.5% |
Netherlands Antilles | 2.3% |
United Kingdom | 2.0% |
France | 1.3% |
Italy | 1.3% |
Canada | 1.1% |
Brazil | 1.0% |
Others (individually less than 1%) | 1.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Energy
Advisor Energy Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $3,059,313) - See accompanying schedule: Unaffiliated issuers (cost $558,635,744) | $ 456,609,522 | |
Fidelity Central Funds (cost $4,568,371) | 4,568,371 | |
Total Investments (cost $563,204,115) | | $ 461,177,893 |
Receivable for investments sold | | 22,901,664 |
Receivable for fund shares sold | | 1,133,025 |
Dividends receivable | | 58,156 |
Distributions receivable from Fidelity Central Funds | | 9,801 |
Prepaid expenses | | 5,549 |
Other receivables | | 5,537 |
Total assets | | 485,291,625 |
| | |
Liabilities | | |
Payable for investments purchased | $ 21,220,695 | |
Payable for fund shares redeemed | 1,026,354 | |
Accrued management fee | 219,902 | |
Distribution fees payable | 200,388 | |
Other affiliated payables | 123,378 | |
Other payables and accrued expenses | 125,644 | |
Collateral on securities loaned, at value | 3,257,918 | |
Total liabilities | | 26,174,279 |
| | |
Net Assets | | $ 459,117,346 |
Net Assets consist of: | | |
Paid in capital | | $ 765,140,543 |
Accumulated net investment loss | | (1,724,407) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (202,177,454) |
Net unrealized appreciation (depreciation) on investments | | (102,121,336) |
Net Assets | | $ 459,117,346 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($162,293,778 ÷ 7,833,991 shares) | | $ 20.72 |
| | |
Maximum offering price per share (100/94.25 of $20.72) | | $ 21.98 |
Class T:
Net Asset Value and redemption price per share ($181,853,620 ÷ 8,553,686 shares) | | $ 21.26 |
| | |
Maximum offering price per share (100/96.50 of $21.26) | | $ 22.03 |
Class B:
Net Asset Value and offering price per share ($40,713,455 ÷ 2,065,039 shares)A | | $ 19.72 |
| | |
Class C:
Net Asset Value and offering price per share ($64,941,508 ÷ 3,271,405 shares)A | | $ 19.85 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($9,314,985 ÷ 433,335 shares) | | $ 21.50 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,539,652 |
Interest | | 16 |
Income from Fidelity Central Funds (including $160,421 from security lending) | | 214,966 |
Total income | | 2,754,634 |
| | |
Expenses | | |
Management fee | $ 1,728,673 | |
Transfer agent fees | 869,054 | |
Distribution fees | 1,604,617 | |
Accounting and security lending fees | 113,994 | |
Custodian fees and expenses | 22,677 | |
Independent trustees' compensation | 1,496 | |
Registration fees | 83,859 | |
Audit | 27,861 | |
Legal | 3,130 | |
Interest | 2,024 | |
Miscellaneous | 30,604 | |
Total expenses before reductions | 4,487,989 | |
Expense reductions | (9,743) | 4,478,246 |
Net investment income (loss) | | (1,723,612) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (199,447,877) | |
Foreign currency transactions | (107,380) | |
Total net realized gain (loss) | | (199,555,257) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (303,699,869) | |
Assets and liabilities in foreign currencies | (9) | |
Total change in net unrealized appreciation (depreciation) | | (303,699,878) |
Net gain (loss) | | (503,255,135) |
Net increase (decrease) in net assets resulting from operations | | $ (504,978,747) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (1,723,612) | $ (6,384,696) |
Net realized gain (loss) | (199,555,257) | 190,336,922 |
Change in net unrealized appreciation (depreciation) | (303,699,878) | (81,040,623) |
Net increase (decrease) in net assets resulting from operations | (504,978,747) | 102,911,603 |
Distributions to shareholders from net realized gain | (137,594,817) | (64,657,747) |
Share transactions - net increase (decrease) | 61,420,306 | 82,916,045 |
Redemption fees | 40,689 | 43,632 |
Total increase (decrease) in net assets | (581,112,569) | 121,213,533 |
| | |
Net Assets | | |
Beginning of period | 1,040,229,915 | 919,016,382 |
End of period (including accumulated net investment loss of $1,724,407 and accumulated net investment loss of $795, respectively) | $ 459,117,346 | $ 1,040,229,915 |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 | $ 21.65 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | (.17) | (.02) H | (.04) | .06 | .07 |
Net realized and unrealized gain (loss) | (22.58) | 5.59 | 8.42 | 12.30 | 12.21 | 7.50 |
Total from investment operations | (22.62) | 5.42 | 8.40 | 12.26 | 12.27 | 7.57 |
Distributions from net investment income | - | - | - | - | (.06) | (.10) |
Distributions from net realized gain | (6.90) | (3.46) | (6.51) | (6.81) | (.41) | - |
Total distributions | (6.90) | (3.46) | (6.51) | (6.81) | (.47) | (.10) |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 20.72 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 |
Total Return B,C,D | (50.94)% | 11.52% | 22.08% | 32.90% | 42.69% | 35.08% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.20% A | 1.14% | 1.19% | 1.21% | 1.25% | 1.30% |
Expenses net of fee waivers, if any | 1.20% A | 1.14% | 1.19% | 1.21% | 1.25% | 1.30% |
Expenses net of all reductions | 1.19% A | 1.14% | 1.19% | 1.17% | 1.19% | 1.29% |
Net investment income (loss) | (.30)% A | (.32)% | (.05)% H | (.09)% | .19% | .28% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 162,294 | $ 355,200 | $ 268,108 | $ 204,391 | $ 90,342 | $ 44,315 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.17)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 | $ 21.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.08) | (.29) | (.11) H | (.13) | - J | .03 |
Net realized and unrealized gain (loss) | (23.16) | 5.72 | 8.61 | 12.49 | 12.37 | 7.60 |
Total from investment operations | (23.24) | 5.43 | 8.50 | 12.36 | 12.37 | 7.63 |
Distributions from net investment income | - | - | - | - | (.03) | (.08) |
Distributions from net realized gain | (6.90) | (3.29) | (6.42) | (6.65) | (.41) | - |
Total distributions | (6.90) | (3.29) | (6.42) | (6.65) | (.44) | (.08) |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 21.26 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 |
Total Return B,C,D | (51.00)% | 11.27% | 21.84% | 32.60% | 42.41% | 34.82% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.43% A | 1.36% | 1.40% | 1.42% | 1.44% | 1.48% |
Expenses net of fee waivers, if any | 1.43% A | 1.36% | 1.40% | 1.42% | 1.44% | 1.48% |
Expenses net of all reductions | 1.42% A | 1.35% | 1.39% | 1.38% | 1.39% | 1.47% |
Net investment income (loss) | (.53)% A | (.54)% | (.26)% H | (.29)% | (.01)% | .10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 181,854 | $ 407,784 | $ 382,222 | $ 362,272 | $ 280,820 | $ 201,187 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.37)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 | $ 21.28 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.56) | (.34) H | (.35) | (.18) | (.11) |
Net realized and unrealized gain (loss) | (21.59) | 5.41 | 8.17 | 11.98 | 11.93 | 7.37 |
Total from investment operations | (21.73) | 4.85 | 7.83 | 11.63 | 11.75 | 7.26 |
Distributions from net realized gain | (6.90) | (3.14) | (6.29) | (6.43) | (.41) | - |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 19.72 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 |
Total Return B,C,D | (51.11)% | 10.62% | 21.18% | 31.86% | 41.66% | 34.12% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.94% A | 1.93% | 1.96% | 1.96% | 1.98% | 2.02% |
Expenses net of fee waivers, if any | 1.94% A | 1.93% | 1.96% | 1.96% | 1.98% | 2.02% |
Expenses net of all reductions | 1.94% A | 1.93% | 1.95% | 1.92% | 1.93% | 2.01% |
Net investment income (loss) | (1.04)% A | (1.11)% | (.82)% H | (.84)% | (.55)% | (.44)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 40,713 | $ 98,602 | $ 116,487 | $ 130,973 | $ 102,003 | $ 68,347 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 | $ 21.38 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.14) | (.54) | (.32) H | (.34) | (.17) | (.10) |
Net realized and unrealized gain (loss) | (21.74) | 5.45 | 8.20 | 12.06 | 11.99 | 7.40 |
Total from investment operations | (21.88) | 4.91 | 7.88 | 11.72 | 11.82 | 7.30 |
Distributions from net realized gain | (6.90) | (3.16) | (6.33) | (6.50) | (.41) | - |
Redemption fees added to paid in capital E | - J | - J | - J | .01 | .01 | - J |
Net asset value, end of period | $ 19.85 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 |
Total Return B,C,D | (51.13)% | 10.71% | 21.22% | 31.96% | 41.70% | 34.14% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.94% A | 1.87% | 1.91% | 1.92% | 1.94% | 1.99% |
Expenses net of fee waivers, if any | 1.94% A | 1.87% | 1.91% | 1.92% | 1.94% | 1.99% |
Expenses net of all reductions | 1.93% A | 1.87% | 1.91% | 1.88% | 1.89% | 1.97% |
Net investment income (loss) | (1.04)% A | (1.05)% | (.77)% H | (.79)% | (.51)% | (.41)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 64,942 | $ 156,393 | $ 135,072 | $ 125,424 | $ 72,832 | $ 37,206 |
Portfolio turnover rate G | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.88)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 | $ 22.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - I | (.02) | .11 G | .12 | .19 | .18 |
Net realized and unrealized gain (loss) | (23.36) | 5.74 | 8.67 | 12.56 | 12.44 | 7.62 |
Total from investment operations | (23.36) | 5.72 | 8.78 | 12.68 | 12.63 | 7.80 |
Distributions from net investment income | - | - | - | - | (.11) | (.19) |
Distributions from net realized gain | (6.90) | (3.64) | (6.58) | (6.97) | (.41) | - |
Total distributions | (6.90) | (3.64) | (6.58) | (6.97) | (.52) | (.19) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | .01 | - I |
Net asset value, end of period | $ 21.50 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 |
Total Return B,C | (50.86)% | 11.83% | 22.47% | 33.35% | 43.21% | 35.60% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .93% A | .85% | .88% | .87% | .89% | .90% |
Expenses net of fee waivers, if any | .93% A | .85% | .88% | .87% | .89% | .90% |
Expenses net of all reductions | .93% A | .85% | .88% | .83% | .84% | .89% |
Net investment income (loss) | (.03)% A | (.03)% | .25% G | .26% | .54% | .68% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,315 | $ 22,250 | $ 17,127 | $ 19,553 | $ 9,433 | $ 4,206 |
Portfolio turnover rate F | 174% A | 90% | 80% | 139% | 125% | 40% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.05 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .14%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Energy Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 54,580,556 |
Unrealized depreciation | (178,075,862) |
Net unrealized appreciation (depreciation) | $ (123,495,306) |
Cost for federal income tax purposes | $ 584,673,199 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Energy
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $577,989,815 and $652,872,430, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 264,262 | $ 7,576 |
Class T | .25% | .25% | 608,172 | 4,054 |
Class B | .75% | .25% | 283,864 | 212,897 |
Class C | .75% | .25% | 448,319 | 77,580 |
| | | $ 1,604,617 | $ 302,107 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 76,082 |
Class T | 17,211 |
Class B* | 84,290 |
Class C* | 18,616 |
| $ 196,199 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 308,914 | .29 |
Class T | 333,001 | .27 |
Class B | 82,754 | .29 |
Class C | 127,032 | .28 |
Institutional Class | 17,353 | .27 |
| $ 869,054 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,018 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 10,970,000 | 2.87% | $ 875 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $843 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income.
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $6,162,000. The weighted average interest rate was 3.36%. The interest expense amounted to $1,149 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
Energy
10. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $9,200 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $535. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Institutional Class | $ 8 |
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.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
12. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ 46,996,956 | $ 20,341,408 |
Class T | 53,170,678 | 25,677,389 |
Class B | 13,492,639 | 7,474,589 |
Class C | 21,034,355 | 9,397,317 |
Institutional Class | 2,900,189 | 1,767,044 |
Total | $ 137,594,817 | $ 64,657,747 |
13. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,641,683 | 3,202,103 | $ 42,511,379 | $ 169,499,687 |
Reinvestment of distributions | 1,158,179 | 375,188 | 42,134,538 | 18,473,322 |
Shares redeemed | (2,036,595) | (2,059,529) | (58,885,655) | (107,985,396) |
Net increase (decrease) | 763,267 | 1,517,762 | $ 25,760,262 | $ 79,987,613 |
Class T | | | | |
Shares sold | 1,029,424 | 1,610,611 | $ 27,029,939 | $ 87,007,613 |
Reinvestment of distributions | 1,332,408 | 478,816 | 49,792,078 | 24,107,280 |
Shares redeemed | (1,742,154) | (1,914,780) | (49,500,182) | (102,045,896) |
Net increase (decrease) | 619,678 | 174,647 | $ 27,321,835 | $ 9,068,997 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
13. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class B | | | | |
Shares sold | 258,351 | 504,843 | $ 6,675,369 | $ 25,728,046 |
Reinvestment of distributions | 339,480 | 135,516 | 11,786,728 | 6,434,106 |
Shares redeemed | (572,086) | (1,098,735) | (15,560,668) | (55,433,977) |
Net increase (decrease) | 25,745 | (458,376) | $ 2,901,429 | $ (23,271,825) |
Class C | | | | |
Shares sold | 521,317 | 993,512 | $ 13,550,834 | $ 51,238,082 |
Reinvestment of distributions | 507,053 | 161,795 | 17,726,560 | 7,736,565 |
Shares redeemed | (973,025) | (820,290) | (26,587,387) | (41,459,377) |
Net increase (decrease) | 55,345 | 335,017 | $ 4,690,007 | $ 17,515,270 |
Institutional Class | | | | |
Shares sold | 139,930 | 839,635 | $ 4,252,222 | $ 44,656,187 |
Reinvestment of distributions | 54,219 | 25,669 | 2,044,586 | 1,318,208 |
Shares redeemed | (190,656) | (780,213) | (5,550,035) | (46,358,405) |
Net increase (decrease) | 3,493 | 85,091 | $ 746,773 | $ (384,010) |
Energy
Advisor Financial Services Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.27% | | | |
Actual | | $ 1,000.00 | $ 539.90 | $ 4.93 |
HypotheticalA | | $ 1,000.00 | $ 1,018.80 | $ 6.46 |
Class T | 1.53% | | | |
Actual | | $ 1,000.00 | $ 539.40 | $ 5.94 |
HypotheticalA | | $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Class B | 2.02% | | | |
Actual | | $ 1,000.00 | $ 538.40 | $ 7.83 |
HypotheticalA | | $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Class C | 2.02% | | | |
Actual | | $ 1,000.00 | $ 538.00 | $ 7.83 |
HypotheticalA | | $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Institutional Class | 1.02% | | | |
Actual | | $ 1,000.00 | $ 540.70 | $ 3.96 |
HypotheticalA | | $ 1,000.00 | $ 1,020.06 | $ 5.19 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio/Sector
Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
JPMorgan Chase & Co. | 5.7 | 5.8 |
Goldman Sachs Group, Inc. | 5.1 | 2.1 |
Bank of America Corp. | 4.7 | 7.8 |
Morgan Stanley | 4.4 | 1.7 |
Fidelity National Financial, Inc. Class A | 3.5 | 0.0 |
Wells Fargo & Co. | 3.5 | 5.2 |
EPIQ Systems, Inc. | 3.3 | 0.0 |
Credit Suisse Group sponsored ADR | 3.2 | 0.0 |
Citigroup, Inc. | 3.1 | 2.6 |
Everest Re Group Ltd. | 3.1 | 2.1 |
| 39.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Capital Markets | 27.3% | |
| Insurance | 23.6% | |
| Diversified
Financial Services | 17.5% | |
| Commercial Banks | 9.5% | |
| It Services | 4.9% | |
| All Others* | 17.2% | |
As of July 31, 2008 |
| Insurance | 24.4% | |
| Diversified
Financial Services | 19.7% | |
| Capital Markets | 18.4% | |
| Commercial Banks | 15.7% | |
| Real Estate
Investment Trusts | 6.1% | |
| All Others* | 15.7% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Financial Services Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% |
| Shares | | Value |
AUTOMOBILES - 0.7% |
Automobile Manufacturers - 0.7% |
Ford Motor Co. (a)(d) | 418,300 | | $ 782,220 |
CAPITAL MARKETS - 27.3% |
Asset Management & Custody Banks - 9.0% |
Bank of New York Mellon Corp. | 78,100 | | 2,010,294 |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 8,961 | | 215,932 |
EFG International | 53,680 | | 652,546 |
Fortress Investment Group LLC | 21,800 | | 32,700 |
Franklin Resources, Inc. | 38,705 | | 1,874,096 |
GLG Partners, Inc. | 27,700 | | 56,785 |
Janus Capital Group, Inc. | 57,100 | | 299,775 |
Julius Baer Holding Ltd. | 44,383 | | 1,323,187 |
KKR Private Equity Investors, LP (a) | 10,600 | | 24,804 |
KKR Private Equity Investors, LP Restricted Depositary Units (a)(e) | 17,200 | | 40,248 |
Legg Mason, Inc. (d) | 117,757 | | 1,891,177 |
State Street Corp. | 46,882 | | 1,090,944 |
T. Rowe Price Group, Inc. | 16,100 | | 444,038 |
The Blackstone Group LP | 20,400 | | 92,004 |
| | 10,048,530 |
Diversified Capital Markets - 5.4% |
Credit Suisse Group sponsored ADR (d) | 140,033 | | 3,569,441 |
UBS AG (NY Shares) | 193,200 | | 2,405,340 |
| | 5,974,781 |
Investment Banking & Brokerage - 12.9% |
Charles Schwab Corp. | 67,100 | | 911,889 |
Evercore Partners, Inc. Class A | 52,000 | | 583,960 |
GFI Group, Inc. | 667,378 | | 2,095,567 |
Goldman Sachs Group, Inc. | 69,500 | | 5,610,735 |
Lazard Ltd. Class A | 9,800 | | 259,700 |
Morgan Stanley | 240,100 | | 4,857,223 |
| | 14,319,074 |
TOTAL CAPITAL MARKETS | | 30,342,385 |
COMMERCIAL BANKS - 9.3% |
Diversified Banks - 4.6% |
Banco Latin Americano de Exporaciones SA (BLADEX) Series E | 14,000 | | 146,860 |
ICICI Bank Ltd. sponsored ADR (d) | 5,500 | | 90,640 |
U.S. Bancorp, Delaware | 69,100 | | 1,025,444 |
Wells Fargo & Co. | 203,979 | | 3,855,203 |
| | 5,118,147 |
Regional Banks - 4.7% |
Associated Banc-Corp. (d) | 72,200 | | 1,129,930 |
Boston Private Financial Holdings, Inc. | 49,400 | | 232,674 |
Cathay General Bancorp (d) | 22,088 | | 280,518 |
Center Financial Corp., California | 6,900 | | 33,120 |
Huntington Bancshares, Inc. | 69,500 | | 200,160 |
KeyCorp | 82,000 | | 596,960 |
M&T Bank Corp. (d) | 14,700 | | 571,977 |
|
| Shares | | Value |
PNC Financial Services Group, Inc. | 49,881 | | $ 1,622,130 |
UCBH Holdings, Inc. | 10,900 | | 25,397 |
Wintrust Financial Corp. | 31,900 | | 426,503 |
Zions Bancorp (d) | 8,100 | | 120,852 |
| | 5,240,221 |
TOTAL COMMERCIAL BANKS | | 10,358,368 |
CONSUMER FINANCE - 3.4% |
Consumer Finance - 3.4% |
American Express Co. | 37,800 | | 632,394 |
Capital One Financial Corp. | 31,630 | | 501,019 |
Discover Financial Services | 51,800 | | 370,370 |
Dollar Financial Corp. (a) | 33,362 | | 261,892 |
Promise Co. Ltd. (d) | 34,150 | | 626,802 |
SLM Corp. (a) | 122,300 | | 1,400,335 |
| | 3,792,812 |
DIVERSIFIED FINANCIAL SERVICES - 17.4% |
Other Diversifed Financial Services - 13.5% |
Bank of America Corp. | 800,341 | | 5,266,244 |
Citigroup, Inc. (d) | 964,162 | | 3,422,775 |
JPMorgan Chase & Co. (d) | 247,794 | | 6,321,224 |
| | 15,010,243 |
Specialized Finance - 3.9% |
BM&F BOVESPA SA | 908,000 | | 2,637,897 |
CIT Group, Inc. (d) | 121,100 | | 337,869 |
CME Group, Inc. | 4,600 | | 799,986 |
Deutsche Boerse AG | 7,400 | | 374,232 |
JSE Ltd. | 30,200 | | 116,939 |
KKR Financial Holdings LLC | 52,200 | | 74,124 |
| | 4,341,047 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | 19,351,290 |
INSURANCE - 23.6% |
Insurance Brokers - 0.3% |
National Financial Partners Corp. | 28,600 | | 73,502 |
Willis Group Holdings Ltd. | 9,600 | | 237,696 |
| | 311,198 |
Life & Health Insurance - 3.4% |
AFLAC, Inc. | 29,300 | | 680,053 |
MetLife, Inc. | 75,700 | | 2,174,861 |
Prudential Financial, Inc. | 37,600 | | 968,200 |
| | 3,823,114 |
Multi-Line Insurance - 0.5% |
American International Group, Inc. | 20,700 | | 26,496 |
Assurant, Inc. | 10,900 | | 287,760 |
Hartford Financial Services Group, Inc. | 16,200 | | 213,192 |
| | 527,448 |
Property & Casualty Insurance - 12.2% |
ACE Ltd. | 62,100 | | 2,711,286 |
AMBAC Financial Group, Inc. (d) | 153,400 | | 174,876 |
Common Stocks - continued |
| Shares | | Value |
INSURANCE - CONTINUED |
Property & Casualty Insurance - continued |
Argo Group International Holdings, Ltd. (a) | 25,211 | | $ 784,314 |
Aspen Insurance Holdings Ltd. | 100 | | 2,210 |
Axis Capital Holdings Ltd. | 10,600 | | 257,156 |
Berkshire Hathaway, Inc. Class A (a) | 16 | | 1,432,032 |
Fidelity National Financial, Inc. Class A | 265,900 | | 3,887,458 |
LandAmerica Financial Group, Inc. | 7,200 | | 407 |
MBIA, Inc. (d) | 18,900 | | 72,954 |
The First American Corp. | 126,950 | | 2,772,588 |
The Travelers Companies, Inc. | 28,500 | | 1,101,240 |
United America Indemnity Ltd. Class A (a) | 19,000 | | 201,020 |
XL Capital Ltd. Class A | 39,100 | | 113,390 |
| | 13,510,931 |
Reinsurance - 7.2% |
Everest Re Group Ltd. | 54,100 | | 3,408,300 |
IPC Holdings Ltd. | 29,266 | | 750,966 |
Max Capital Group Ltd. | 42,576 | | 724,218 |
Montpelier Re Holdings Ltd. | 9,000 | | 127,260 |
Platinum Underwriters Holdings Ltd. | 41,400 | | 1,151,334 |
RenaissanceRe Holdings Ltd. | 30,400 | | 1,358,576 |
Validus Holdings Ltd. | 23,100 | | 527,142 |
| | 8,047,796 |
TOTAL INSURANCE | | 26,220,487 |
INTERNET SOFTWARE & SERVICES - 1.8% |
Internet Software & Services - 1.8% |
China Finance Online Co. Ltd. ADR (a)(d) | 247,115 | | 1,989,276 |
IT SERVICES - 4.9% |
Data Processing & Outsourced Services - 4.9% |
CyberSource Corp. (a) | 257,499 | | 3,071,963 |
MasterCard, Inc. Class A | 5,700 | | 773,946 |
MoneyGram International, Inc. | 140,475 | | 217,736 |
Visa, Inc. | 27,600 | | 1,362,060 |
| | 5,425,705 |
PROFESSIONAL SERVICES - 1.6% |
Research & Consulting Services - 1.6% |
First Advantage Corp. Class A (a) | 139,250 | | 1,774,045 |
REAL ESTATE INVESTMENT TRUSTS - 3.2% |
Mortgage REITs - 1.1% |
Annaly Capital Management, Inc. | 80,300 | | 1,215,742 |
Chimera Investment Corp. | 17,100 | | 56,430 |
| | 1,272,172 |
|
| Shares | | Value |
Residential REITs - 1.4% |
Equity Lifestyle Properties, Inc. | 26,900 | | $ 1,014,937 |
UDR, Inc. | 44,200 | | 518,466 |
| | 1,533,403 |
Retail REITs - 0.7% |
CBL & Associates Properties, Inc. (d) | 11,200 | | 45,584 |
Developers Diversified Realty Corp. | 34,500 | | 165,600 |
Simon Property Group, Inc. | 13,600 | | 584,528 |
| | 795,712 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 3,601,287 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.0% |
Diversified Real Estate Activities - 0.7% |
Meruelo Maddux Properties, Inc. (a) | 45,200 | | 18,532 |
Mitsubishi Estate Co. Ltd. | 54,000 | | 708,163 |
| | 726,695 |
Real Estate Development - 0.3% |
Xinyuan Real Estate Co. Ltd. ADR (a) | 109,725 | | 371,968 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 1,098,663 |
SOFTWARE - 3.3% |
Application Software - 3.3% |
EPIQ Systems, Inc. (a) | 210,015 | | 3,721,466 |
SPECIALTY RETAIL - 0.1% |
Home Improvement Retail - 0.1% |
Home Depot, Inc. | 6,600 | | 142,098 |
THRIFTS & MORTGAGE FINANCE - 1.0% |
Thrifts & Mortgage Finance - 1.0% |
FirstFed Financial Corp. (a)(d) | 15,100 | | 12,835 |
Hudson City Bancorp, Inc. | 73,775 | | 855,790 |
IndyMac Bancorp, Inc. (a) | 33,000 | | 3,630 |
Radian Group, Inc. | 76,400 | | 246,008 |
Washington Mutual, Inc. | 121,371 | | 4,855 |
| | 1,123,118 |
TOTAL COMMON STOCKS (Cost $154,126,996) | 109,723,220 |
Convertible Preferred Stocks - 0.3% |
| | | |
COMMERCIAL BANKS - 0.2% |
Regional Banks - 0.2% |
Huntington Bancshares, Inc. 8.50% | 500 | | 219,220 |
DIVERSIFIED FINANCIAL SERVICES - 0.1% |
Specialized Finance - 0.1% |
CIT Group, Inc. Series C, 8.75% | 2,000 | | 38,200 |
Convertible Preferred Stocks - continued |
| Shares | | Value |
INSURANCE - 0.0% |
Multi-Line Insurance - 0.0% |
American International Group, Inc. Series A, 8.50% | 2,900 | | $ 25,694 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $817,500) | 283,114 |
Money Market Funds - 14.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,013,196 | | 1,013,196 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 15,111,848 | | 15,111,848 |
TOTAL MONEY MARKET FUNDS (Cost $16,125,044) | 16,125,044 |
Cash Equivalents - 0.0% |
| Maturity Amount | | |
Investments in repurchase agreements in a joint trading account at 0.24%, dated 1/30/09 due 2/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $38,000) | $ 38,001 | | 38,000 |
TOTAL INVESTMENT PORTFOLIO - 113.4% (Cost $171,107,540) | | 126,169,378 |
NET OTHER ASSETS - (13.4)% | | (14,864,663) |
NET ASSETS - 100% | $ 111,304,715 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $40,248 or 0.0% of net assets. |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$38,000 due 2/02/09 at 0.24% |
J.P. Morgan Securities, Inc. | $ 28,137 |
UBS Securities LLC | 9,863 |
| $ 38,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 71,548 |
Fidelity Securities Lending Cash Central Fund | 200,929 |
Total | $ 272,477 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 126,169,378 | $ 124,615,580 | $ 1,553,798 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 75.1% |
Switzerland | 9.8% |
Bermuda | 8.5% |
Brazil | 2.4% |
Hong Kong | 1.8% |
Japan | 1.3% |
Others (individually less than 1%) | 1.1% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $26,184,414 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Financial Services Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $14,185,933 and repurchase agreements of $38,000) - - See accompanying schedule: Unaffiliated issuers (cost $154,982,496) | $ 110,044,334 | |
Fidelity Central Funds (cost $16,125,044) | 16,125,044 | |
Total Investments (cost $171,107,540) | | $ 126,169,378 |
Cash | | 17,221 |
Foreign currency held at value (cost $3) | | 3 |
Receivable for investments sold | | 532,629 |
Receivable for fund shares sold | | 239,125 |
Dividends receivable | | 224,475 |
Distributions receivable from Fidelity Central Funds | | 29,226 |
Prepaid expenses | | 1,719 |
Other receivables | | 3,883 |
Total assets | | 127,217,659 |
| | |
Liabilities | | |
Payable for investments purchased | $ 400,547 | |
Payable for fund shares redeemed | 224,508 | |
Accrued management fee | 57,200 | |
Distribution fees payable | 52,166 | |
Other affiliated payables | 36,557 | |
Other payables and accrued expenses | 30,118 | |
Collateral on securities loaned, at value | 15,111,848 | |
Total liabilities | | 15,912,944 |
| | |
Net Assets | | $ 111,304,715 |
Net Assets consist of: | | |
Paid in capital | | $ 252,332,029 |
Undistributed net investment income | | 460,122 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (96,548,223) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (44,939,213) |
Net Assets | | $ 111,304,715 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($50,254,466 ÷ 7,238,786 shares) | | $ 6.94 |
| | |
Maximum offering price per share (100/94.25 of $6.94) | | $ 7.36 |
Class T:
Net Asset Value and redemption price per share ($27,045,095 ÷ 3,896,194 shares) | | $ 6.94 |
| | |
Maximum offering price per share (100/96.50 of $6.94) | | $ 7.19 |
Class B:
Net Asset Value and offering price per share ($9,805,219 ÷ 1,437,993 shares)A | | $ 6.82 |
| | |
Class C:
Net Asset Value and offering price per share ($21,573,880 ÷ 3,190,979 shares)A | | $ 6.76 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,626,055 ÷ 372,489 shares) | | $ 7.05 |
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.
Financial Services
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,860,667 |
Interest | | 2,846 |
Income from Fidelity Central Funds (including $200,929 from security lending) | | 272,477 |
Total income | | 3,135,990 |
| | |
Expenses | | |
Management fee | $ 446,076 | |
Transfer agent fees | 236,013 | |
Distribution fees | 410,047 | |
Accounting and security lending fees | 33,407 | |
Custodian fees and expenses | 14,143 | |
Independent trustees' compensation | 471 | |
Registration fees | 42,595 | |
Audit | 24,390 | |
Legal | 1,185 | |
Miscellaneous | 13,525 | |
Total expenses before reductions | 1,221,852 | |
Expense reductions | (3,969) | 1,217,883 |
Net investment income (loss) | | 1,918,107 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (66,286,377) | |
Investment not meeting investment restrictions | (1,265) | |
Foreign currency transactions | (6,119) | |
Payment from investment advisor for loss on investment not meeting investment restrictions | 1,265 | |
Total net realized gain (loss) | | (66,292,496) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (32,398,814) | |
Assets and liabilities in foreign currencies | (1,374) | |
Total change in net unrealized appreciation (depreciation) | | (32,400,188) |
Net gain (loss) | | (98,692,684) |
Net increase (decrease) in net assets resulting from operations | | $ (96,774,577) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,918,107 | $ 3,920,838 |
Net realized gain (loss) | (66,292,496) | (25,372,931) |
Change in net unrealized appreciation (depreciation) | (32,400,188) | (75,621,214) |
Net increase (decrease) in net assets resulting from operations | (96,774,577) | (97,073,307) |
Distributions to shareholders from net investment income | (3,219,812) | (2,830,191) |
Distributions to shareholders from net realized gain | (320,527) | (22,361,262) |
Total distributions | (3,540,339) | (25,191,453) |
Share transactions - net increase (decrease) | 4,030,212 | (845,081) |
Redemption fees | 9,988 | 10,552 |
Total increase (decrease) in net assets | (96,274,716) | (123,099,289) |
| | |
Net Assets | | |
Beginning of period | 207,579,431 | 330,678,720 |
End of period (including undistributed net investment income of $460,122 and undistributed net investment income of $2,125,111, respectively) | $ 111,304,715 | $ 207,579,431 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 | $ 19.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .30 | .23 | .20 | .19 | .14 |
Net realized and unrealized gain (loss) | (6.11) | (6.41) | .92 | 2.02 | 2.48 | 2.20 |
Total from investment operations | (5.98) | (6.11) | 1.15 | 2.22 | 2.67 | 2.34 |
Distributions from net investment income | (.24) | (.27) | (.22) | (.26) | (.07) | (.15) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.26) | (1.73) | (3.47) J | (1.89) | (1.83) | (.15) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.94 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 |
Total Return B, C, D | (46.01)% | (31.67)% | 4.54% | 10.32% | 12.60% | 11.76% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.27% A | 1.21% | 1.23% | 1.25% | 1.26% | 1.27% |
Expenses net of fee waivers, if any | 1.27% A | 1.21% | 1.23% | 1.25% | 1.26% | 1.27% |
Expenses net of all reductions | 1.27% A | 1.21% | 1.22% | 1.23% | 1.23% | 1.25% |
Net investment income (loss) | 2.69% A | 1.75% | 1.01% | .87% | .88% | .63% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 50,254 | $ 90,037 | $ 106,722 | $ 85,356 | $ 68,012 | $ 58,222 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.47 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $3.250 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 | $ 19.90 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .26 | .18 | .15 | .14 | .09 |
Net realized and unrealized gain (loss) | (6.10) | (6.41) | .91 | 2.02 | 2.47 | 2.19 |
Total from investment operations | (5.98) | (6.15) | 1.09 | 2.17 | 2.61 | 2.28 |
Distributions from net investment income | (.20) | (.19) | (.16) | (.15) | (.05) | (.11) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.22) | (1.65) | (3.41) J | (1.78) | (1.81) | (.11) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.94 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 |
Total Return B, C, D | (46.06)% | (31.85)% | 4.25% | 10.11% | 12.37% | 11.49% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.53% A | 1.47% | 1.46% | 1.47% | 1.48% | 1.50% |
Expenses net of fee waivers, if any | 1.53% A | 1.47% | 1.46% | 1.47% | 1.48% | 1.50% |
Expenses net of all reductions | 1.52% A | 1.47% | 1.46% | 1.46% | 1.46% | 1.48% |
Net investment income (loss) | 2.43% A | 1.50% | .77% | .65% | .66% | .41% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 27,045 | $ 53,526 | $ 95,426 | $ 113,344 | $ 128,388 | $ 144,887 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.41 per share is comprised of distributions from net investment income of $.156 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 | $ 19.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .18 | .06 | .03 | .03 | (.02) |
Net realized and unrealized gain (loss) | (5.98) | (6.29) | .89 | 1.97 | 2.41 | 2.16 |
Total from investment operations | (5.89) | (6.11) | .95 | 2.00 | 2.44 | 2.14 |
Distributions from net investment income | (.12) | (.04) | (.02) | (.01) | - | (.02) |
Distributions from net realized gain | (.02) | (1.44) | (3.25) | (1.57) | (1.76) | - |
Total distributions | (.14) | (1.48) | (3.26) J | (1.58) | (1.76) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.82 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 |
Total Return B, C, D | (46.16)% | (32.21)% | 3.71% | 9.52% | 11.78% | 10.96% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.02% A | 1.96% | 1.98% | 1.99% | 2.00% | 2.02% |
Expenses net of fee waivers, if any | 2.02% A | 1.96% | 1.98% | 1.99% | 2.00% | 2.02% |
Expenses net of all reductions | 2.01% A | 1.96% | 1.98% | 1.98% | 1.98% | 2.00% |
Net investment income (loss) | 1.94% A | 1.01% | .25% | .13% | .14% | (.11)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,805 | $ 20,420 | $ 64,837 | $ 113,652 | $ 145,046 | $ 179,873 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.26 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $3.247 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 | $ 19.53 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .17 | .06 | .04 | .04 | (.01) |
Net realized and unrealized gain (loss) | (5.94) | (6.24) | .90 | 1.98 | 2.42 | 2.15 |
Total from investment operations | (5.85) | (6.07) | .96 | 2.02 | 2.46 | 2.14 |
Distributions from net investment income | (.15) | (.09) | (.05) | (.02) | (.01) | (.02) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.60) | (1.76) | - |
Total distributions | (.17) | (1.55) | (3.30) J | (1.62) | (1.77) | (.02) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.76 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 |
Total Return B, C, D | (46.20)% | (32.18)% | 3.75% | 9.58% | 11.88% | 10.96% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 2.02% A | 1.96% | 1.94% | 1.94% | 1.95% | 1.97% |
Expenses net of fee waivers, if any | 2.02% A | 1.96% | 1.94% | 1.94% | 1.95% | 1.97% |
Expenses net of all reductions | 2.02% A | 1.96% | 1.94% | 1.93% | 1.92% | 1.95% |
Net investment income (loss) | 1.94% A | 1.01% | .29% | .18% | .19% | (.06)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 21,574 | $ 37,777 | $ 55,219 | $ 62,469 | $ 72,181 | $ 86,199 |
Portfolio turnover rate G | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. J Total distributions of $3.30 per share is comprised of distributions from net investment income of $.049 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 | $ 20.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .15 | .36 | .31 | .29 | .29 | .23 |
Net realized and unrealized gain (loss) | (6.21) | (6.51) | .93 | 2.05 | 2.50 | 2.21 |
Total from investment operations | (6.06) | (6.15) | 1.24 | 2.34 | 2.79 | 2.44 |
Distributions from net investment income | (.25) | (.33) | (.30) | (.37) | (.11) | (.24) |
Distributions from net realized gain | (.02) | (1.46) | (3.25) | (1.63) | (1.76) | - |
Total distributions | (.27) | (1.79) | (3.55) I | (2.00) | (1.87) | (.24) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 7.05 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 |
Total Return B, C | (45.93)% | (31.47)% | 4.88% | 10.78% | 13.06% | 12.18% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | 1.02% A | .93% | .89% | .86% | .86% | .88% |
Expenses net of fee waivers, if any | 1.02% A | .93% | .89% | .86% | .86% | .88% |
Expenses net of all reductions | 1.01% A | .92% | .88% | .85% | .84% | .85% |
Net investment income (loss) | 2.94% A | 2.04% | 1.34% | 1.26% | 1.28% | 1.03% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 2,626 | $ 5,819 | $ 8,474 | $ 11,892 | $ 12,629 | $ 13,008 |
Portfolio turnover rate F | 158% A | 48% | 53% | 33% | 61% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. I Total distributions of $3.55 per share is comprised of distributions from net investment income of $.298 and distributions from net realized gain of $3.250 per share. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Financial Services Fund (the Fund) is a fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 9,258,441 |
Unrealized depreciation | (62,077,753) |
Net unrealized appreciation (depreciation) | $ (52,819,312) |
Cost for federal income tax purposes | $ 178,988,690 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Financial Services
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities short-term securities, aggregated $138,800,682 and $123,643,765, respectively.
The Fund realized a loss on the sale of an investment not meeting the investment restrictions of the Fund. The loss was fully reimbursed by the Fund's investment advisor.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 87,734 | $ 919 |
Class T | .25% | .25% | 98,442 | 402 |
Class B | .75% | .25% | 74,707 | 56,031 |
Class C | .75% | .25% | 149,164 | 37,309 |
| | | $ 410,047 | $ 94,661 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 41,706 |
Class T | 4,856 |
Class B* | 14,283 |
Class C* | 7,706 |
| $ 68,551 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 104,273 | .30 |
Class T | 59,698 | .30 |
Class B | 22,055 | .29 |
Class C | 44,209 | .30 |
Institutional Class | 5,778 | .29 |
| $ 236,013 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $32,534 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $203 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,883 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $86.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Financial Services
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,698,164 | $ 1,429,035 |
Class T | 781,807 | 833,715 |
Class B | 182,682 | 103,026 |
Class C | 461,265 | 241,388 |
Institutional Class | 95,894 | 223,027 |
Total | $ 3,219,812 | $ 2,830,191 |
From net realized gain | | |
Class A | $ 139,686 | $ 7,599,793 |
Class T | 80,989 | 6,343,916 |
Class B | 31,565 | 3,935,726 |
Class C | 60,568 | 3,829,942 |
Institutional Class | 7,719 | 651,885 |
Total | $ 320,527 | $ 22,361,262 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,529,467 | 3,476,462 | $ 15,817,183 | $ 58,217,275 |
Reinvestment of distributions | 159,396 | 413,881 | 1,638,379 | 8,062,306 |
Shares redeemed | (1,283,732) | (2,133,725) | (12,538,875) | (36,028,050) |
Net increase (decrease) | 405,131 | 1,756,618 | $ 4,916,687 | $ 30,251,531 |
Class T | | | | |
Shares sold | 567,503 | 825,338 | $ 5,492,757 | $ 13,397,557 |
Reinvestment of distributions | 77,111 | 344,513 | 791,775 | 6,720,713 |
Shares redeemed | (821,971) | (1,652,503) | (7,992,905) | (28,919,771) |
Net increase (decrease) | (177,357) | (482,652) | $ (1,708,373) | $ (8,801,501) |
Class B | | | | |
Shares sold | 272,427 | 511,474 | $ 2,765,907 | $ 8,246,792 |
Reinvestment of distributions | 19,064 | 187,873 | 185,301 | 3,607,784 |
Shares redeemed | (442,386) | (2,282,248) | (4,193,643) | (40,060,805) |
Net increase (decrease) | (150,895) | (1,582,901) | $ (1,242,435) | $ (28,206,229) |
Class C | | | | |
Shares sold | 765,610 | 1,114,854 | $ 7,728,077 | $ 17,550,045 |
Reinvestment of distributions | 43,964 | 173,040 | 431,812 | 3,294,216 |
Shares redeemed | (575,076) | (1,038,077) | (5,293,610) | (17,222,702) |
Net increase (decrease) | 234,498 | 249,817 | $ 2,866,279 | $ 3,621,559 |
Institutional Class | | | | |
Shares sold | 101,115 | 1,075,511 | $ 993,534 | $ 20,129,434 |
Reinvestment of distributions | 6,287 | 36,137 | 65,572 | 687,993 |
Shares redeemed | (169,999) | (1,074,000) | (1,861,052) | (18,527,868) |
Net increase (decrease) | (62,597) | 37,648 | $ (801,946) | $ 2,289,559 |
Semiannual Report
Advisor Health Care Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.22% | | | |
Actual | | $ 1,000.00 | $ 770.50 | $ 5.44 |
HypotheticalA | | $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 769.20 | $ 6.60 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 767.60 | $ 8.78 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 767.60 | $ 8.78 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .97% | | | |
Actual | | $ 1,000.00 | $ 771.20 | $ 4.33 |
HypotheticalA | | $ 1,000.00 | $ 1,020.32 | $ 4.94 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Health Care
Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Wyeth | 6.8 | 5.3 |
Pfizer, Inc. | 6.5 | 2.3 |
Merck & Co., Inc. | 6.4 | 0.3 |
Genentech, Inc. | 5.6 | 4.6 |
Medco Health Solutions, Inc. | 5.3 | 1.0 |
Baxter International, Inc. | 4.7 | 3.9 |
Covidien Ltd. | 4.2 | 4.4 |
Schering-Plough Corp. | 3.5 | 0.0 |
Amgen, Inc. | 3.4 | 2.7 |
Gilead Sciences, Inc. | 3.1 | 0.0 |
| 49.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Pharmaceuticals | 35.4% | |
| Biotechnology | 20.6% | |
| Health Care
Providers & Services | 20.4% | |
| Health Care
Equipment & Supplies | 18.0% | |
| Life Sciences
Tools & Services | 2.9% | |
| All Others* | 2.7% | |
As of July 31, 2008 |
| Health Care
Equipment & Supplies | 24.8% | |
| Pharmaceuticals | 20.8% | |
| Biotechnology | 16.4% | |
| Health Care
Providers & Services | 14.9% | |
| Life Sciences
Tools & Services | 12.1% | |
| All Others* | 11.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Health Care Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% |
| Shares | | Value |
BIOTECHNOLOGY - 20.5% |
Biotechnology - 20.5% |
Alexion Pharmaceuticals, Inc. (a) | 31,000 | | $ 1,142,970 |
Alkermes, Inc. (a) | 57,240 | | 656,543 |
Alnylam Pharmaceuticals, Inc. (a) | 52,137 | | 1,099,569 |
Amgen, Inc. (a) | 224,762 | | 12,328,196 |
Biogen Idec, Inc. (a) | 143,479 | | 6,980,253 |
BioMarin Pharmaceutical, Inc. (a)(d) | 109,037 | | 2,100,053 |
Cephalon, Inc. (a) | 15,310 | | 1,181,626 |
Cougar Biotechnology, Inc. (a) | 9,226 | | 269,215 |
CSL Ltd. | 37,585 | | 886,350 |
Cubist Pharmaceuticals, Inc. (a) | 9,500 | | 203,395 |
Emergent BioSolutions, Inc. (a) | 1,600 | | 35,088 |
Genentech, Inc. (a) | 252,690 | | 20,528,536 |
Genomic Health, Inc. (a) | 4,800 | | 102,720 |
Genzyme Corp. (a) | 138,100 | | 9,517,852 |
Gilead Sciences, Inc. (a) | 227,847 | | 11,567,792 |
GTx, Inc. (a)(d) | 60,617 | | 669,212 |
Molecular Insight Pharmaceuticals, Inc. (a)(d) | 7,967 | | 21,192 |
Myriad Genetics, Inc. (a) | 11,700 | | 872,469 |
ONYX Pharmaceuticals, Inc. (a) | 42,203 | | 1,284,237 |
OSI Pharmaceuticals, Inc. (a) | 21,900 | | 779,640 |
PDL BioPharma, Inc. | 68,426 | | 439,295 |
Theravance, Inc. (a) | 29,935 | | 394,543 |
United Therapeutics Corp. (a) | 31,400 | | 2,133,630 |
| | 75,194,376 |
CHEMICALS - 0.3% |
Fertilizers & Agricultural Chemicals - 0.3% |
Monsanto Co. | 11,400 | | 867,084 |
Specialty Chemicals - 0.0% |
Jubilant Organosys Ltd. | 46,246 | | 112,452 |
TOTAL CHEMICALS | | 979,536 |
COMMERCIAL SERVICES & SUPPLIES - 0.0% |
Diversified Support Services - 0.0% |
PRG-Schultz International, Inc. (a) | 2,500 | | 7,825 |
DIVERSIFIED CONSUMER SERVICES - 0.4% |
Specialized Consumer Services - 0.4% |
Carriage Services, Inc. Class A (a) | 279,255 | | 617,154 |
Service Corp. International | 13,200 | | 60,060 |
Stewart Enterprises, Inc. Class A (d) | 245,783 | | 840,578 |
| | 1,517,792 |
FOOD & STAPLES RETAILING - 0.4% |
Drug Retail - 0.4% |
China Nepstar Chain Drugstore Ltd. ADR | 8,700 | | 33,147 |
CVS Caremark Corp. | 51,700 | | 1,389,696 |
| | 1,422,843 |
|
| Shares | | Value |
HEALTH CARE EQUIPMENT & SUPPLIES - 18.0% |
Health Care Equipment - 15.1% |
American Medical Systems Holdings, Inc. (a) | 72,194 | | $ 772,476 |
Aspect Medical Systems, Inc. (a) | 58,500 | | 222,300 |
Baxter International, Inc. | 294,241 | | 17,257,235 |
Boston Scientific Corp. (a) | 314,962 | | 2,793,713 |
C.R. Bard, Inc. | 3,200 | | 273,824 |
China Medical Technologies, Inc. sponsored ADR | 5,082 | | 77,958 |
Conceptus, Inc. (a) | 71,814 | | 1,031,249 |
Covidien Ltd. | 403,145 | | 15,456,579 |
Electro-Optical Sciences, Inc. (a) | 92,091 | | 477,952 |
Electro-Optical Sciences, Inc.: | | | |
warrants 11/2/11 (a)(g) | 60,018 | | 184,188 |
warrants 8/2/12 (a)(g) | 16,500 | | 53,931 |
ev3, Inc. (a) | 107,583 | | 582,024 |
Golden Meditech Co. Ltd. (a) | 1,760,000 | | 160,107 |
Hospira, Inc. (a) | 81,145 | | 2,020,511 |
I-Flow Corp. (a) | 9,500 | | 39,045 |
Integra LifeSciences Holdings Corp. (a) | 54,655 | | 1,516,130 |
Invacare Corp. | 6,802 | | 129,646 |
Kinetic Concepts, Inc. (a) | 33,900 | | 816,990 |
Masimo Corp. (a) | 22,900 | | 635,933 |
Medtronic, Inc. | 64,797 | | 2,170,052 |
Meridian Bioscience, Inc. | 7,800 | | 165,828 |
Micrus Endovascular Corp. (a) | 83,066 | | 936,984 |
Mindray Medical International Ltd. sponsored ADR (d) | 23,563 | | 486,812 |
Natus Medical, Inc. (a) | 439 | | 3,398 |
NeuroMetrix, Inc. (a) | 64,462 | | 118,610 |
NuVasive, Inc. (a) | 37,700 | | 1,407,718 |
St. Jude Medical, Inc. (a) | 93,900 | | 3,415,143 |
Stryker Corp. | 20,600 | | 870,144 |
Syneron Medical Ltd. (a) | 46,703 | | 329,723 |
Wright Medical Group, Inc. (a) | 42,800 | | 887,672 |
| | 55,293,875 |
Health Care Supplies - 2.9% |
Alcon, Inc. | 187 | | 16,015 |
Align Technology, Inc. (a) | 51,431 | | 405,276 |
Immucor, Inc. (a) | 16,440 | | 455,552 |
InfuSystems Holdings, Inc. (a) | 453,700 | | 807,586 |
InfuSystems Holdings, Inc. warrants 4/11/11 (a) | 41,900 | | 2,305 |
Inverness Medical Innovations, Inc. (a)(d) | 321,463 | | 7,866,200 |
RTI Biologics, Inc. (a) | 305,450 | | 748,353 |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 236,000 | | 401,412 |
| | 10,702,699 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 65,996,574 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 20.1% |
Health Care Distributors & Services - 1.5% |
Henry Schein, Inc. (a) | 30,003 | | $ 1,123,012 |
McKesson Corp. | 76,500 | | 3,381,300 |
Profarma Distribuidora de Produtos Farmaceuticos SA | 464,800 | | 1,141,966 |
| | 5,646,278 |
Health Care Facilities - 1.2% |
Hanger Orthopedic Group, Inc. (a) | 137,565 | | 1,877,762 |
Sun Healthcare Group, Inc. (a) | 96,469 | | 1,092,994 |
Tenet Healthcare Corp. (a) | 126,100 | | 134,927 |
Universal Health Services, Inc. Class B | 38,159 | | 1,444,318 |
| | 4,550,001 |
Health Care Services - 10.0% |
athenahealth, Inc. (a) | 33,200 | | 1,197,856 |
Diagnosticos da America SA | 23,500 | | 226,795 |
Emergency Medical Services Corp. Class A (a) | 100 | | 3,352 |
Express Scripts, Inc. (a) | 164,417 | | 8,839,058 |
Fresenius Medical Care AG sponsored ADR | 24,900 | | 1,114,524 |
Genoptix, Inc. (a) | 15,800 | | 535,620 |
Health Grades, Inc. (a) | 335,498 | | 785,065 |
Healthways, Inc. (a) | 34,800 | | 480,936 |
IPC The Hospitalist Co., Inc. | 7,940 | | 151,972 |
Laboratory Corp. of America Holdings (a) | 30,400 | | 1,799,680 |
LHC Group, Inc. (a) | 30,500 | | 811,605 |
Medco Health Solutions, Inc. (a) | 436,020 | | 19,590,379 |
NightHawk Radiology Holdings, Inc. (a) | 186,681 | | 795,261 |
Rural/Metro Corp. (a) | 95,400 | | 156,456 |
Virtual Radiologic Corp. (a)(d) | 12,100 | | 97,163 |
| | 36,585,722 |
Managed Health Care - 7.4% |
Coventry Health Care, Inc. (a) | 10,800 | | 163,404 |
Health Net, Inc. (a) | 56,200 | | 822,206 |
Humana, Inc. (a) | 149,190 | | 5,658,777 |
UnitedHealth Group, Inc. | 364,409 | | 10,323,707 |
Universal American Financial Corp. (a) | 37,394 | | 369,079 |
WellPoint, Inc. (a) | 237,100 | | 9,827,795 |
| | 27,164,968 |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | 73,946,969 |
HEALTH CARE TECHNOLOGY - 0.0% |
Health Care Technology - 0.0% |
HLTH Corp. (a) | 3,904 | | 44,428 |
|
| Shares | | Value |
LIFE SCIENCES TOOLS & SERVICES - 2.9% |
Life Sciences Tools & Services - 2.9% |
Albany Molecular Research, Inc. (a) | 2,330 | | $ 19,968 |
Bruker BioSciences Corp. (a) | 78,987 | | 318,318 |
Charles River Laboratories International, Inc. (a) | 3,785 | | 92,392 |
Illumina, Inc. (a)(d) | 148,544 | | 4,064,164 |
Lonza Group AG | 9,546 | | 873,205 |
Luminex Corp. (a) | 1,600 | | 32,592 |
Millipore Corp. (a) | 20,600 | | 1,136,296 |
PAREXEL International Corp. (a) | 15,250 | | 150,823 |
QIAGEN NV (a) | 153,000 | | 2,623,950 |
Thermo Fisher Scientific, Inc. (a) | 23,168 | | 832,426 |
Waters Corp. (a) | 17,200 | | 622,124 |
| | 10,766,258 |
PERSONAL PRODUCTS - 0.0% |
Personal Products - 0.0% |
Nutraceutical International Corp. (a) | 8,700 | | 76,038 |
PHARMACEUTICALS - 35.0% |
Pharmaceuticals - 35.0% |
Abbott Laboratories | 185,763 | | 10,298,701 |
Allergan, Inc. | 159,588 | | 6,083,495 |
Auxilium Pharmaceuticals, Inc. (a) | 33,300 | | 1,017,648 |
Bristol-Myers Squibb Co. | 379,525 | | 8,125,630 |
China Shineway Pharmaceutical Group Ltd. | 566,000 | | 317,542 |
Elan Corp. PLC sponsored ADR (a) | 23,000 | | 166,290 |
Eli Lilly & Co. | 15,000 | | 552,300 |
Johnson & Johnson | 120,442 | | 6,948,299 |
Merck & Co., Inc. | 828,691 | | 23,659,128 |
Pfizer, Inc. | 1,646,421 | | 24,004,818 |
Piramal Healthcare Ltd. | 25,301 | | 108,808 |
Schering-Plough Corp. | 731,700 | | 12,848,652 |
Shire PLC sponsored ADR | 58,500 | | 2,554,695 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 108,782 | | 4,509,014 |
Valeant Pharmaceuticals International (a)(d) | 40,900 | | 887,530 |
Wyeth | 583,295 | | 25,064,182 |
XenoPort, Inc. (a) | 52,553 | | 1,372,684 |
| | 128,519,416 |
TOTAL COMMON STOCKS (Cost $371,991,002) | 358,472,055 |
Convertible Preferred Stocks - 0.2% |
| | | |
PHARMACEUTICALS - 0.2% |
Pharmaceuticals - 0.2% |
Mylan, Inc. 6.50%
(Cost $610,071) | 1,000 | | 740,100 |
Corporate Bonds - 0.6% |
| Principal Amount | | Value |
Convertible Bonds - 0.3% |
BIOTECHNOLOGY - 0.1% |
Biotechnology - 0.1% |
Theravance, Inc. 3% 1/15/15 | | $ 400,000 | | $ 256,120 |
HEALTH CARE PROVIDERS & SERVICES - 0.2% |
Health Care Services - 0.2% |
Lincare Holdings, Inc. 2.75% 11/1/37 | | 1,030,000 | | 827,914 |
TOTAL CONVERTIBLE BONDS | | 1,084,034 |
Nonconvertible Bonds - 0.3% |
HEALTH CARE PROVIDERS & SERVICES - 0.1% |
Health Care Services - 0.1% |
DASA Finance Corp. 8.75% 5/29/18 (e) | | 640,000 | | 518,400 |
PHARMACEUTICALS - 0.2% |
Pharmaceuticals - 0.2% |
Elan Finance PLC/Elan Finance Corp. 6.1488% 11/15/11 (f) | | 925,000 | | 684,500 |
TOTAL NONCONVERTIBLE BONDS | | 1,202,900 |
TOTAL CORPORATE BONDS (Cost $2,408,051) | 2,286,934 |
Money Market Funds - 4.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 6,445,427 | | 6,445,427 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 11,112,325 | | 11,112,325 |
TOTAL MONEY MARKET FUNDS (Cost $17,557,752) | 17,557,752 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $392,566,876) | | 379,056,841 |
NET OTHER ASSETS - (3.2)% | | (11,644,783) |
NET ASSETS - 100% | $ 367,412,058 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $518,400 or 0.1% of net assets. |
(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $238,119 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Electro-Optical Sciences, Inc. warrants 11/2/11 | 11/1/06 | $ 6 |
Electro-Optical Sciences, Inc. warrants 8/2/12 | 8/1/07 | $ 17 |
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 | $ 63,928 |
Fidelity Securities Lending Cash Central Fund | 100,934 |
Total | $ 164,862 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 379,056,841 | $ 374,545,117 | $ 4,511,724 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Health Care Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $10,700,625) - See accompanying schedule: Unaffiliated issuers (cost $375,009,124) | $ 361,499,089 | |
Fidelity Central Funds (cost $17,557,752) | 17,557,752 | |
Total Investments (cost $392,566,876) | | $ 379,056,841 |
Foreign currency held at value (cost $189) | | 170 |
Receivable for investments sold | | 5,732,153 |
Receivable for fund shares sold | | 358,033 |
Dividends receivable | | 266,124 |
Interest receivable | | 29,085 |
Distributions receivable from Fidelity Central Funds | | 19,786 |
Prepaid expenses | | 4,378 |
Other receivables | | 41,690 |
Total assets | | 385,508,260 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,676,643 | |
Payable for fund shares redeemed | 834,424 | |
Accrued management fee | 173,622 | |
Distribution fees payable | 152,356 | |
Other affiliated payables | 101,393 | |
Other payables and accrued expenses | 45,439 | |
Collateral on securities loaned, at value | 11,112,325 | |
Total liabilities | | 18,096,202 |
| | |
Net Assets | | $ 367,412,058 |
Net Assets consist of: | | |
Paid in capital | | $ 458,911,364 |
Accumulated net investment loss | | (519,772) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (77,456,142) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (13,523,392) |
Net Assets | | $ 367,412,058 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($163,536,868 ÷ 10,966,366 shares) | | $ 14.91 |
| | |
Maximum offering price per share (100/94.25 of $14.91) | | $ 15.82 |
Class T:
Net Asset Value and redemption price per share ($100,104,105 ÷ 6,887,501 shares) | | $ 14.53 |
| | |
Maximum offering price per share (100/96.50 of $14.53) | | $ 15.06 |
Class B:
Net Asset Value and offering price per share ($32,462,061 ÷ 2,362,439 shares)A | | $ 13.74 |
| | |
Class C:
Net Asset Value and offering price per share ($58,799,603 ÷ 4,289,694 shares)A | | $ 13.71 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,509,421 ÷ 810,021 shares) | | $ 15.44 |
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.
Health Care
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,350,319 |
Interest | | 64,021 |
Income from Fidelity Central Funds | | 164,862 |
Total income | | 2,579,202 |
| | |
Expenses | | |
Management fee | $ 1,187,069 | |
Transfer agent fees | 631,728 | |
Distribution fees | 1,057,839 | |
Accounting and security lending fees | 83,922 | |
Custodian fees and expenses | 42,701 | |
Independent trustees' compensation | 1,238 | |
Registration fees | 42,540 | |
Audit | 31,129 | |
Legal | 2,246 | |
Miscellaneous | 27,376 | |
Total expenses before reductions | 3,107,788 | |
Expense reductions | (8,885) | 3,098,903 |
Net investment income (loss) | | (519,701) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (75,210,737) | |
Foreign currency transactions | (116,636) | |
Total net realized gain (loss) | | (75,327,373) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (42,980,174) | |
Assets and liabilities in foreign currencies | (7,220) | |
Total change in net unrealized appreciation (depreciation) | | (42,987,394) |
Net gain (loss) | | (118,314,767) |
Net increase (decrease) in net assets resulting from operations | | $ (118,834,468) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (519,701) | $ (2,555,905) |
Net realized gain (loss) | (75,327,373) | 27,558,745 |
Change in net unrealized appreciation (depreciation) | (42,987,394) | (58,670,581) |
Net increase (decrease) in net assets resulting from operations | (118,834,468) | (33,667,741) |
Distributions to shareholders from net realized gain | (9,966,416) | (58,232,148) |
Share transactions - net increase (decrease) | (25,464,935) | (48,796,453) |
Redemption fees | 5,696 | 7,557 |
Total increase (decrease) in net assets | (154,260,123) | (140,688,785) |
| | |
Net Assets | | |
Beginning of period | 521,672,181 | 662,360,966 |
End of period (including accumulated net investment loss of $519,772 and accumulated net investment loss of $71, respectively) | $ 367,412,058 | $ 521,672,181 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 | $ 18.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.03) | (.03) | (.09) | (.05) | (.05) |
Net realized and unrealized gain (loss) | (4.44) | (1.08) | 1.91 | .96 | 4.08 | .67 |
Total from investment operations | (4.44) | (1.11) | 1.88 | .87 | 4.03 | .62 |
Distributions from net realized gain | (.37) | (2.07) | (2.75) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.91 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 |
Total Return B, C, D | (22.95)% | (5.64)% | 8.54% | 3.79% | 21.31% | 3.39% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.22% A | 1.20% | 1.22% | 1.25% | 1.28% | 1.32% |
Expenses net of fee waivers, if any | 1.22% A | 1.20% | 1.22% | 1.25% | 1.28% | 1.32% |
Expenses net of all reductions | 1.22% A | 1.19% | 1.21% | 1.21% | 1.26% | 1.29% |
Net investment income (loss) | .01% A | (.13)% | (.14)% | (.38)% | (.22)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 163,537 | $ 220,888 | $ 234,656 | $ 199,221 | $ 139,158 | $ 104,258 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 | $ 18.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.09) | (.15) | (.09) | (.09) |
Net realized and unrealized gain (loss) | (4.34) | (1.06) | 1.87 | .95 | 3.99 | .66 |
Total from investment operations | (4.36) | (1.14) | 1.78 | .80 | 3.90 | .57 |
Distributions from net realized gain | (.37) | (1.99) | (2.65) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.53 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 |
Total Return B, C, D | (23.08)% | (5.86)% | 8.25% | 3.55% | 20.97% | 3.16% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.48% A | 1.46% | 1.48% | 1.50% | 1.53% | 1.56% |
Expenses net of fee waivers, if any | 1.48% A | 1.46% | 1.48% | 1.50% | 1.53% | 1.56% |
Expenses net of all reductions | 1.47% A | 1.45% | 1.47% | 1.47% | 1.51% | 1.53% |
Net investment income (loss) | (.25)% A | (.40)% | (.40)% | (.63)% | (.47)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 100,104 | $ 143,237 | $ 186,628 | $ 218,280 | $ 243,353 | $ 243,176 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 | $ 17.45 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.18) | (.20) | (.25) | (.19) | (.18) |
Net realized and unrealized gain (loss) | (4.10) | (.99) | 1.79 | .91 | 3.83 | .64 |
Total from investment operations | (4.16) | (1.17) | 1.59 | .66 | 3.64 | .46 |
Distributions from net realized gain | (.37) | (1.85) | (2.47) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 |
Total Return B, C, D | (23.24)% | (6.30)% | 7.66% | 3.06% | 20.32% | 2.64% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97% A | 1.95% | 1.99% | 2.01% | 2.04% | 2.06% |
Expenses net of fee waivers, if any | 1.97% A | 1.95% | 1.99% | 2.01% | 2.04% | 2.06% |
Expenses net of all reductions | 1.96% A | 1.94% | 1.98% | 1.98% | 2.01% | 2.03% |
Net investment income (loss) | (.74)% A | (.89)% | (.91)% | (1.14)% | (.98)% | (1.01)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 32,462 | $ 55,589 | $ 113,384 | $ 180,364 | $ 266,319 | $ 285,299 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 | $ 17.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.06) | (.17) | (.19) | (.24) | (.17) | (.17) |
Net realized and unrealized gain (loss) | (4.09) | (1.00) | 1.79 | .91 | 3.84 | .64 |
Total from investment operations | (4.15) | (1.17) | 1.60 | .67 | 3.67 | .47 |
Distributions from net realized gain | (.37) | (1.89) | (2.55) | (.04) | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 13.71 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 |
Total Return B, C, D | (23.24)% | (6.31)% | 7.75% | 3.10% | 20.46% | 2.69% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | 1.97% A | 1.94% | 1.94% | 1.94% | 1.97% | 2.00% |
Expenses net of fee waivers, if any | 1.97% A | 1.94% | 1.94% | 1.94% | 1.97% | 2.00% |
Expenses net of all reductions | 1.97% A | 1.94% | 1.93% | 1.91% | 1.94% | 1.97% |
Net investment income (loss) | (.74)% A | (.88)% | (.86)% | (1.07)% | (.91)% | (.95)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,800 | $ 83,133 | $ 105,519 | $ 115,644 | $ 131,277 | $ 130,184 |
Portfolio turnover rate G | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 | $ 18.58 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .02 | .03 | .05 | - H | .04 | .03 |
Net realized and unrealized gain (loss) | (4.60) | (1.12) | 1.96 | .99 | 4.16 | .67 |
Total from investment operations | (4.58) | (1.09) | 2.01 | .99 | 4.20 | .70 |
Distributions from net realized gain | (.37) | (2.14) | (2.82) | (.04) | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 |
Total Return B, C | (22.88)% | (5.36)% | 8.90% | 4.21% | 21.78% | 3.77% |
Ratios to Average Net Assets E, G | | | | | | |
Expenses before reductions | .97% A | .93% | .88% | .86% | .88% | .91% |
Expenses net of fee waivers, if any | .97% A | .93% | .88% | .86% | .88% | .91% |
Expenses net of all reductions | .97% A | .92% | .87% | .83% | .85% | .88% |
Net investment income (loss) | .26% A | .14% | .19% | .01% | .18% | .14% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,509 | $ 18,825 | $ 22,174 | $ 20,652 | $ 19,698 | $ 20,358 |
Portfolio turnover rate F | 185% A | 134% | 141% | 99% | 71% | 60% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Health Care Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 24,941,737 |
Unrealized depreciation | (47,637,581) |
Net unrealized appreciation (depreciation) | $ (22,695,844) |
Cost for federal income tax purposes | $ 401,752,685 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Health Care
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $390,182,116 and $425,181,353, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 228,249 | $ 4,554 |
Class T | .25% | .25% | 287,746 | 1,674 |
Class B | .75% | .25% | 206,275 | 154,706 |
Class C | .75% | .25% | 335,569 | 14,812 |
| | | $ 1,057,839 | $ 175,746 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 13,737 |
Class T | 7,641 |
Class B* | 36,712 |
Class C* | 1,541 |
| $ 59,631 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 271,784 | .30 |
Class T | 176,265 | .31 |
Class B | 61,339 | .30 |
Class C | 99,935 | .30 |
Institutional Class | 22,405 | .30 |
| $ 631,728 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $8,032 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $534 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $100,934.
Health Care
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $8,073 for the period. In addition through arrangements with each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 754 |
Institutional Class | 58 |
| $ 812 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, Lehman Brothers Holdings, Inc. and certain of its affiliates (LBHI) sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. At the time LBHI's insolvency proceedings were instituted, the Fund had outstanding securities trades with counterparties affiliated with LBHI. As a result of the insolvency proceedings, LBHI is unable to fulfill its commitments and, in certain cases, the Fund may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. FMR believes that the financial impact to the Fund relating to the terminated trades and agreements is immaterial.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net realized gain | | |
Class A | $ 4,165,896 | $ 21,294,782 |
Class T | 2,716,500 | 16,323,384 |
Class B | 1,072,948 | 9,098,884 |
Class C | 1,667,891 | 9,241,641 |
Institutional Class | 343,181 | 2,273,457 |
Total | $ 9,966,416 | $ 58,232,148 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,255,680 | 3,081,992 | $ 20,644,833 | $ 65,718,810 |
Reinvestment of distributions | 190,190 | 845,716 | 3,682,080 | 18,561,495 |
Shares redeemed | (1,678,837) | (2,977,484) | (26,607,764) | (63,109,379) |
Net increase (decrease) | (232,967) | 950,224 | $ (2,280,851) | $ 21,170,926 |
Class T | | | | |
Shares sold | 334,849 | 746,344 | $ 5,272,858 | $ 15,578,653 |
Reinvestment of distributions | 135,003 | 718,829 | 2,550,205 | 15,418,473 |
Shares redeemed | (1,020,577) | (2,364,110) | (15,838,024) | (48,580,585) |
Net increase (decrease) | (550,725) | (898,937) | $ (8,014,961) | $ (17,583,459) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class B | | | | |
Shares sold | 123,423 | 261,619 | $ 1,893,033 | $ 5,241,565 |
Reinvestment of distributions | 53,957 | 400,851 | 965,289 | 8,175,269 |
Shares redeemed | (857,593) | (2,945,003) | (12,895,613) | (58,341,596) |
Net increase (decrease) | (680,213) | (2,282,533) | $ (10,037,291) | $ (44,924,762) |
Class C | | | | |
Shares sold | 219,658 | 383,741 | $ 3,345,650 | $ 7,630,409 |
Reinvestment of distributions | 74,490 | 358,758 | 1,329,646 | 7,307,934 |
Shares redeemed | (565,623) | (1,138,609) | (8,268,501) | (22,157,508) |
Net increase (decrease) | (271,475) | (396,110) | $ (3,593,205) | $ (7,219,165) |
Institutional Class | | | | |
Shares sold | 118,404 | 423,102 | $ 2,134,553 | $ 9,559,061 |
Reinvestment of distributions | 12,578 | 64,316 | 251,944 | 1,455,613 |
Shares redeemed | (244,353) | (503,017) | (3,925,124) | (11,254,667) |
Net increase (decrease) | (113,371) | (15,599) | $ (1,538,627) | $ (239,993) |
Health Care
Advisor Industrials Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.21% | | | |
Actual | | $ 1,000.00 | $ 588.10 | $ 4.84 |
Hypothetical A | | $ 1,000.00 | $ 1,019.11 | $ 6.16 |
Class T | 1.46% | | | |
Actual | | $ 1,000.00 | $ 587.30 | $ 5.84 |
Hypothetical A | | $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 585.70 | $ 7.87 |
Hypothetical A | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.96% | | | |
Actual | | $ 1,000.00 | $ 585.70 | $ 7.83 |
Hypothetical A | | $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .95% | | | |
Actual | | $ 1,000.00 | $ 588.60 | $ 3.80 |
Hypothetical A | | $ 1,000.00 | $ 1,020.42 | $ 4.84 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Industrials
Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
United Technologies Corp. | 6.9 | 5.2 |
Honeywell International, Inc. | 6.4 | 4.6 |
Danaher Corp. | 4.0 | 3.3 |
Union Pacific Corp. | 4.0 | 3.7 |
Lockheed Martin Corp. | 3.9 | 3.7 |
The Boeing Co. | 3.9 | 0.0 |
Cummins, Inc. | 3.3 | 3.5 |
Emerson Electric Co. | 3.3 | 1.7 |
Deere & Co. | 3.1 | 1.4 |
Siemens AG sponsored ADR | 3.1 | 2.7 |
| 41.9 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Aerospace & Defense | 28.6% | |
| Machinery | 18.4% | |
| Electrical Equipment | 10.5% | |
| Road & Rail | 9.1% | |
| Industrial Conglomerates | 7.8% | |
| All Others* | 25.6% | |
|
As of July 31, 2008 |
| Machinery | 23.2% | |
| Aerospace & Defense | 16.4% | |
| Electrical Equipment | 11.7% | |
| Industrial Conglomerates | 10.7% | |
| Road & Rail | 10.0% | |
| All Others* | 28.0% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Industrials Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.8% |
| Shares | | Value |
AEROSPACE & DEFENSE - 28.6% |
Aerospace & Defense - 28.6% |
Honeywell International, Inc. | 422,500 | | $ 13,862,225 |
Lockheed Martin Corp. | 104,500 | | 8,573,180 |
Northrop Grumman Corp. | 96,200 | | 4,629,144 |
Precision Castparts Corp. | 70,800 | | 4,598,460 |
Raytheon Co. | 129,500 | | 6,555,290 |
Stanley, Inc. (a) | 20,000 | | 605,200 |
The Boeing Co. | 200,600 | | 8,487,386 |
United Technologies Corp. | 312,600 | | 15,001,671 |
| | 62,312,556 |
AIR FREIGHT & LOGISTICS - 6.7% |
Air Freight & Logistics - 6.7% |
C.H. Robinson Worldwide, Inc. | 45,600 | | 2,096,688 |
FedEx Corp. | 91,100 | | 4,640,634 |
United Parcel Service, Inc. Class B | 155,500 | | 6,607,195 |
UTI Worldwide, Inc. | 112,700 | | 1,235,192 |
| | 14,579,709 |
AUTO COMPONENTS - 2.5% |
Auto Parts & Equipment - 1.0% |
Johnson Controls, Inc. | 169,400 | | 2,119,194 |
Tires & Rubber - 1.5% |
The Goodyear Tire & Rubber Co. (a) | 549,700 | | 3,391,649 |
TOTAL AUTO COMPONENTS | | 5,510,843 |
AUTOMOBILES - 0.2% |
Automobile Manufacturers - 0.2% |
Renault SA | 21,400 | | 415,360 |
BUILDING PRODUCTS - 2.1% |
Building Products - 2.1% |
Masco Corp. | 421,600 | | 3,296,912 |
Owens Corning (a) | 49,461 | | 659,810 |
USG Corp. (a)(d) | 108,300 | | 705,033 |
| | 4,661,755 |
CHEMICALS - 1.2% |
Specialty Chemicals - 1.2% |
Albemarle Corp. | 28,600 | | 636,350 |
Nalco Holding Co. | 105,200 | | 1,032,012 |
W.R. Grace & Co. (a) | 160,900 | | 928,393 |
| | 2,596,755 |
COMMERCIAL SERVICES & SUPPLIES - 2.4% |
Environmental & Facility Services - 2.0% |
Republic Services, Inc. | 169,560 | | 4,384,822 |
Office Services & Supplies - 0.4% |
United Stationers, Inc. (a) | 30,800 | | 862,708 |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | 5,247,530 |
|
| Shares | | Value |
CONSTRUCTION MATERIALS - 0.3% |
Construction Materials - 0.3% |
Martin Marietta Materials, Inc. (d) | 7,000 | | $ 563,640 |
DIVERSIFIED CONSUMER SERVICES - 0.7% |
Specialized Consumer Services - 0.7% |
Brinks Home Security Holdings, Inc. (a) | 65,010 | | 1,486,779 |
ELECTRICAL EQUIPMENT - 10.5% |
Electrical Components & Equipment - 9.9% |
Acuity Brands, Inc. | 73,242 | | 1,968,013 |
AMETEK, Inc. | 130,100 | | 4,157,996 |
Cooper Industries Ltd. Class A | 172,000 | | 4,628,520 |
Emerson Electric Co. | 217,320 | | 7,106,364 |
Ener1, Inc. (a)(d) | 93,573 | | 420,143 |
Regal-Beloit Corp. | 6,800 | | 230,928 |
Rockwell Automation, Inc. | 70,700 | | 1,841,028 |
Saft Groupe SA | 45,000 | | 1,105,027 |
| | 21,458,019 |
Heavy Electrical Equipment - 0.6% |
Vestas Wind Systems AS (a) | 27,342 | | 1,335,600 |
TOTAL ELECTRICAL EQUIPMENT | | 22,793,619 |
ELECTRONIC EQUIPMENT & COMPONENTS - 0.6% |
Electronic Equipment & Instruments - 0.6% |
Itron, Inc. (a)(d) | 20,400 | | 1,332,120 |
HOUSEHOLD DURABLES - 0.2% |
Homebuilding - 0.2% |
Centex Corp. | 49,000 | | 416,990 |
INDUSTRIAL CONGLOMERATES - 7.8% |
Industrial Conglomerates - 7.8% |
General Electric Co. | 300,700 | | 3,647,491 |
McDermott International, Inc. (a) | 26,700 | | 276,879 |
Siemens AG sponsored ADR (d) | 119,435 | | 6,695,526 |
Textron, Inc. | 108,300 | | 977,949 |
Tyco International Ltd. | 262,725 | | 5,522,480 |
| | 17,120,325 |
MACHINERY - 18.4% |
Construction & Farm Machinery & Heavy Trucks - 10.7% |
Cummins, Inc. | 298,532 | | 7,158,797 |
Deere & Co. | 193,000 | | 6,704,820 |
Manitowoc Co., Inc. | 195,000 | | 1,072,500 |
Navistar International Corp. (a) | 123,500 | | 3,750,695 |
PACCAR, Inc. | 100,500 | | 2,652,195 |
Terex Corp. (a) | 91,200 | | 1,079,808 |
Toro Co. | 27,000 | | 799,470 |
| | 23,218,285 |
Industrial Machinery - 7.7% |
Danaher Corp. | 157,400 | | 8,803,382 |
Eaton Corp. | 66,900 | | 2,944,938 |
Ingersoll-Rand Co. Ltd. Class A | 107,400 | | 1,740,954 |
Common Stocks - continued |
| Shares | | Value |
MACHINERY - CONTINUED |
Industrial Machinery - continued |
Parker Hannifin Corp. | 72,800 | | $ 2,781,688 |
Sulzer AG (Reg.) | 11,212 | | 560,648 |
| | 16,831,610 |
TOTAL MACHINERY | | 40,049,895 |
MARINE - 0.4% |
Marine - 0.4% |
Safe Bulkers, Inc. | 74,000 | | 470,640 |
Ultrapetrol (Bahamas) Ltd. (a) | 175,033 | | 399,075 |
| | 869,715 |
PAPER & FOREST PRODUCTS - 0.5% |
Forest Products - 0.5% |
Weyerhaeuser Co. | 40,400 | | 1,104,536 |
PROFESSIONAL SERVICES - 1.6% |
Human Resource & Employment Services - 0.7% |
Manpower, Inc. | 53,900 | | 1,533,994 |
Research & Consulting Services - 0.9% |
Equifax, Inc. | 82,700 | | 2,044,344 |
TOTAL PROFESSIONAL SERVICES | | 3,578,338 |
ROAD & RAIL - 9.1% |
Railroads - 7.2% |
CSX Corp. | 86,700 | | 2,510,832 |
Norfolk Southern Corp. | 115,810 | | 4,442,472 |
Union Pacific Corp. | 199,000 | | 8,714,210 |
| | 15,667,514 |
Trucking - 1.9% |
Con-way, Inc. | 68,500 | | 1,509,055 |
Landstar System, Inc. | 33,700 | | 1,208,819 |
Old Dominion Freight Lines, Inc. (a) | 53,836 | | 1,350,207 |
| | 4,068,081 |
TOTAL ROAD & RAIL | | 19,735,595 |
TRADING COMPANIES & DISTRIBUTORS - 2.0% |
Trading Companies & Distributors - 2.0% |
Rush Enterprises, Inc. Class A (a) | 298,277 | | 2,714,321 |
W.W. Grainger, Inc. | 23,500 | | 1,714,325 |
| | 4,428,646 |
|
| Shares | | Value |
TRANSPORTATION INFRASTRUCTURE - 1.0% |
Marine Ports & Services - 1.0% |
Aegean Marine Petroleum Network, Inc. | 125,700 | | $ 2,150,727 |
TOTAL COMMON STOCKS (Cost $286,212,035) | 210,955,433 |
Nonconvertible Bonds - 0.0% |
| Principal Amount | | |
AIRLINES - 0.0% |
Airlines - 0.0% |
Delta Air Lines, Inc. 8.3% 12/15/29 (a)
(Cost $77,750) | | $ 2,690,000 | | 53,800 |
Money Market Funds - 6.4% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 4,802,160 | | 4,802,160 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 9,073,150 | | 9,073,150 |
TOTAL MONEY MARKET FUNDS (Cost $13,875,310) | 13,875,310 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $300,165,095) | | 224,884,543 |
NET OTHER ASSETS - (3.2)% | | (6,980,493) |
NET ASSETS - 100% | $ 217,904,050 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 77,978 |
Fidelity Securities Lending Cash Central Fund | 106,663 |
Total | $ 184,641 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 224,884,543 | $ 224,830,743 | $ - | $ 53,800 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ 33,625 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | 20,175 |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 53,800 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.8% |
Bermuda | 5.4% |
Germany | 3.1% |
Marshall Islands | 1.2% |
Others (individually less than 1%) | 2.5% |
| 100.0% |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $4,342,576 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $8,610,536) - See accompanying schedule: Unaffiliated issuers (cost $286,289,785) | $ 211,009,233 | |
Fidelity Central Funds (cost $13,875,310) | 13,875,310 | |
Total Investments (cost $300,165,095) | | $ 224,884,543 |
Cash | | 24,276 |
Receivable for investments sold | | 5,945,427 |
Receivable for fund shares sold | | 237,453 |
Dividends receivable | | 462,649 |
Distributions receivable from Fidelity Central Funds | | 23,361 |
Prepaid expenses | | 3,002 |
Other receivables | | 3,130 |
Total assets | | 231,583,841 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,772,426 | |
Payable for fund shares redeemed | 538,386 | |
Accrued management fee | 110,686 | |
Distribution fees payable | 91,886 | |
Other affiliated payables | 65,991 | |
Other payables and accrued expenses | 27,266 | |
Collateral on securities loaned, at value | 9,073,150 | |
Total liabilities | | 13,679,791 |
| | |
Net Assets | | $ 217,904,050 |
Net Assets consist of: | | |
Paid in capital | | $ 379,882,302 |
Distributions in excess of net investment income | | (351,485) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (86,340,461) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (75,286,306) |
Net Assets | | $ 217,904,050 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($106,667,471 ÷ 8,336,497 shares) | | $ 12.80 |
| | |
Maximum offering price per share (100/94.25 of $12.80) | | $ 13.58 |
Class T:
Net Asset Value and redemption price per share ($46,200,842 ÷ 3,656,058 shares) | | $ 12.64 |
| | |
Maximum offering price per share (100/96.50 of $12.64) | | $ 13.10 |
Class B:
Net Asset Value and offering price per share ($21,553,504 ÷ 1,779,754 shares)A | | $ 12.11 |
| | |
Class C:
Net Asset Value and offering price per share ($31,111,023 ÷ 2,562,744 shares)A | | $ 12.14 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,371,210 ÷ 935,912 shares) | | $ 13.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,833,266 |
Interest | | 4 |
Income from Fidelity Central Funds | | 184,641 |
Total income | | 3,017,911 |
| | |
Expenses | | |
Management fee | $ 833,537 | |
Transfer agent fees | 424,742 | |
Distribution fees | 685,690 | |
Accounting and security lending fees | 59,123 | |
Custodian fees and expenses | 11,037 | |
Independent trustees' compensation | 883 | |
Registration fees | 51,664 | |
Audit | 28,305 | |
Legal | 1,157 | |
Miscellaneous | 14,454 | |
Total expenses before reductions | 2,110,592 | |
Expense reductions | (4,488) | 2,106,104 |
Net investment income (loss) | | 911,807 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (81,413,113) | |
Foreign currency transactions | 38,375 | |
Total net realized gain (loss) | | (81,374,738) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (86,879,601) | |
Assets and liabilities in foreign currencies | (4,951) | |
Total change in net unrealized appreciation (depreciation) | | (86,884,552) |
Net gain (loss) | | (168,259,290) |
Net increase (decrease) in net assets resulting from operations | | $ (167,347,483) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 911,807 | $ 880,536 |
Net realized gain (loss) | (81,374,738) | 5,734,188 |
Change in net unrealized appreciation (depreciation) | (86,884,552) | (28,847,344) |
Net increase (decrease) in net assets resulting from operations | (167,347,483) | (22,232,620) |
Distributions to shareholders from net investment income | (1,756,118) | - |
Distributions to shareholders from net realized gain | (285,855) | (36,229,373) |
Total distributions | (2,041,973) | (36,229,373) |
Share transactions - net increase (decrease) | (17,971,539) | 109,034,065 |
Redemption fees | 7,338 | 14,921 |
Total increase (decrease) in net assets | (187,353,657) | 50,586,993 |
| | |
Net Assets | | |
Beginning of period | 405,257,707 | 354,670,714 |
End of period (including distributions in excess of net investment income of $351,485 and undistributed net investment income of $809,200, respectively) | $ 217,904,050 | $ 405,257,707 |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 | $ 14.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .07 | .11 | .09 | .08 | .02 | (.02) |
Net realized and unrealized gain (loss) | (9.09) | (1.17) | 5.11 | 1.63 | 4.35 | 3.96 |
Total from investment operations | (9.02) | (1.06) | 5.20 | 1.71 | 4.37 | 3.94 |
Distributions from net investment income | (.13) | - | (.06) | - | - | - |
Distributions from net realized gain | (.02) | (2.46) | (1.81) | (1.08) | (.94) | - |
Total distributions | (.15) | (2.46) | (1.87) | (1.08) | (.94) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.80 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 |
Total Return B,C,D | (41.19)% | (4.71)% | 25.13% | 8.40% | 25.04% | 27.92% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.21% A | 1.17% | 1.21% | 1.26% | 1.34% | 1.65% |
Expenses net of fee waivers, if any | 1.21% A | 1.17% | 1.21% | 1.26% | 1.34% | 1.50% |
Expenses net of all reductions | 1.21% A | 1.16% | 1.21% | 1.24% | 1.29% | 1.47% |
Net investment income (loss) | .83% A | .46% | .38% | .34% | .09% | (.12)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 106,667 | $ 188,859 | $ 157,451 | $ 99,255 | $ 40,264 | $ 12,612 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 | $ 14.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .05 | .03 | .02 | (.03) | (.06) |
Net realized and unrealized gain (loss) | (8.98) | (1.15) | 5.05 | 1.61 | 4.31 | 3.93 |
Total from investment operations | (8.93) | (1.10) | 5.08 | 1.63 | 4.28 | 3.87 |
Distributions from net investment income | (.08) | - | (.03) | - | - | - |
Distributions from net realized gain | (.02) | (2.40) | (1.74) | (1.04) | (.91) | - |
Total distributions | (.10) | (2.40) | (1.77) | (1.04) | (.91) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 |
Total Return B,C,D | (41.27)% | (4.96)% | 24.82% | 8.13% | 24.78% | 27.67% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.46% A | 1.41% | 1.46% | 1.49% | 1.57% | 1.90% |
Expenses net of fee waivers, if any | 1.46% A | 1.41% | 1.46% | 1.49% | 1.57% | 1.75% |
Expenses net of all reductions | 1.46% A | 1.41% | 1.46% | 1.47% | 1.52% | 1.72% |
Net investment income (loss) | .58% A | .21% | .13% | .11% | (.14)% | (.36)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 46,201 | $ 85,025 | $ 75,530 | $ 55,936 | $ 40,126 | $ 13,089 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 | $ 13.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.07) | (.09) | (.09) | (.13) | (.14) |
Net realized and unrealized gain (loss) | (8.60) | (1.10) | 4.87 | 1.55 | 4.17 | 3.79 |
Total from investment operations | (8.59) | (1.17) | 4.78 | 1.46 | 4.04 | 3.65 |
Distributions from net investment income | (.04) | - | - | - | - | - |
Distributions from net realized gain | - | (2.28) | (1.61) | (.99) | (.76) | - |
Total distributions | (.04) | (2.28) | (1.61) | (.99) | (.76) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.11 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 |
Total Return B,C,D | (41.43)% | (5.46)% | 24.18% | 7.54% | 24.12% | 26.89% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.97% A | 1.95% | 2.00% | 2.04% | 2.11% | 2.37% |
Expenses net of fee waivers, if any | 1.97% A | 1.95% | 2.00% | 2.04% | 2.11% | 2.25% |
Expenses net of all reductions | 1.97% A | 1.95% | 2.00% | 2.02% | 2.07% | 2.22% |
Net investment income (loss) | .07% A | (.33)% | (.41)% | (.44)% | (.68)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 21,554 | $ 39,989 | $ 44,330 | $ 37,082 | $ 32,242 | $ 14,722 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 | $ 13.67 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.06) | (.08) | (.08) | (.12) | (.14) |
Net realized and unrealized gain (loss) | (8.62) | (1.11) | 4.88 | 1.56 | 4.19 | 3.82 |
Total from investment operations | (8.61) | (1.17) | 4.80 | 1.48 | 4.07 | 3.68 |
Distributions from net investment income | (.04) | - | - | - | - | - |
Distributions from net realized gain | - | (2.30) | (1.70) | (1.00) | (.75) | - |
Total distributions | (.04) | (2.30) | (1.70) | (1.00) | (.75) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 12.14 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 |
Total Return B,C,D | (41.43)% | (5.44)% | 24.25% | 7.59% | 24.16% | 26.99% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | 1.96% A | 1.91% | 1.94% | 1.99% | 2.07% | 2.28% |
Expenses net of fee waivers, if any | 1.96% A | 1.91% | 1.94% | 1.99% | 2.07% | 2.25% |
Expenses net of all reductions | 1.96% A | 1.90% | 1.94% | 1.97% | 2.02% | 2.22% |
Net investment income (loss) | .08% A | (.28)% | (.35)% | (.38)% | (.64)% | (.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 31,111 | $ 57,742 | $ 57,862 | $ 42,363 | $ 20,595 | $ 9,507 |
Portfolio turnover rate G | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 | $ 14.41 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .10 | .18 | .16 | .16 | .07 | .02 |
Net realized and unrealized gain (loss) | (9.41) | (1.19) | 5.27 | 1.66 | 4.46 | 4.04 |
Total from investment operations | (9.31) | (1.01) | 5.43 | 1.82 | 4.53 | 4.06 |
Distributions from net investment income | (.17) | - | (.13) | - | - | - |
Distributions from net realized gain | (.02) | (2.53) | (1.81) | (1.11) | (.95) | - |
Total distributions | (.19) | (2.53) | (1.94) | (1.11) | (.95) | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | .01 |
Net asset value, end of period | $ 13.22 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 |
Total Return B,C | (41.14)% | (4.40)% | 25.53% | 8.73% | 25.41% | 28.24% |
Ratios to Average Net Assets E,G | | | | | | |
Expenses before reductions | .95% A | .88% | .92% | .91% | 1.06% | 1.38% |
Expenses net of fee waivers, if any | .95% A | .88% | .92% | .91% | 1.06% | 1.25% |
Expenses net of all reductions | .94% A | .87% | .91% | .89% | 1.01% | 1.22% |
Net investment income (loss) | 1.09% A | .75% | .67% | .69% | .37% | .13% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,371 | $ 33,642 | $ 19,498 | $ 13,043 | $ 4,379 | $ 1,490 |
Portfolio turnover rate F | 149% A | 91% | 130% | 94% | 116% | 106% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Industrials Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Industrials
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 3,040,856 |
Unrealized depreciation | (87,292,321) |
Net unrealized appreciation (depreciation) | $ (84,251,465) |
Cost for federal income tax purposes | $ 309,136,008 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $221,386,538 and $236,099,271, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 175,177 | $ 6,191 |
Class T | .25% | .25% | 155,294 | - |
Class B | .75% | .25% | 144,808 | 108,607 |
Class C | .75% | .25% | 210,411 | 48,746 |
| | | $ 685,690 | $ 163,544 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 45,587 |
Class T | 5,801 |
Class B* | 41,087 |
Class C* | 9,508 |
| $ 101,983 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Industrials
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 201,700 | .29 |
Class T | 89,064 | .29 |
Class B | 42,803 | .30 |
Class C | 60,397 | .29 |
Institutional Class | 30,778 | .27 |
| $ 424,742 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,287 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $382 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $106,663.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $4,319 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $169, respectively.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,066,448 | $ - |
Class T | 306,371 | - |
Class B | 68,325 | - |
Class C | 103,234 | - |
Institutional Class | 211,740 | - |
Total | $ 1,756,118 | $ - |
From net realized gain | | |
Class A | $ 176,460 | $ 16,681,692 |
Class T | 79,143 | 7,329,611 |
Class B | - | 4,260,086 |
Class C | - | 5,759,702 |
Institutional Class | 30,252 | 2,198,282 |
Total | $ 285,855 | $ 36,229,373 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ende
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,645,541 | 3,949,728 | $ 28,032,979 | $ 92,641,467 |
Reinvestment of distributions | 72,593 | 645,516 | 1,139,555 | 15,365,861 |
Shares redeemed | (1,977,652) | (2,176,163) | (30,968,780) | (50,202,759) |
Net increase (decrease) | (259,518) | 2,419,081 | $ (1,796,246) | $ 57,804,569 |
Class T | | | | |
Shares sold | 714,268 | 1,380,018 | $ 11,517,570 | $ 31,838,651 |
Reinvestment of distributions | 24,634 | 292,360 | 365,354 | 6,876,188 |
Shares redeemed | (1,006,037) | (750,047) | (15,619,525) | (16,849,781) |
Net increase (decrease) | (267,135) | 922,331 | $ (3,736,601) | $ 21,865,058 |
Class B | | | | |
Shares sold | 217,093 | 453,829 | $ 3,446,627 | $ 10,091,104 |
Reinvestment of distributions | 4,471 | 159,890 | 56,195 | 3,612,025 |
Shares redeemed | (369,787) | (518,209) | (5,472,537) | (11,329,079) |
Net increase (decrease) | (148,223) | 95,510 | $ (1,969,715) | $ 2,374,050 |
Class C | | | | |
Shares sold | 382,764 | 947,863 | $ 6,019,556 | $ 21,153,831 |
Reinvestment of distributions | 6,551 | 198,290 | 82,541 | 4,489,229 |
Shares redeemed | (603,563) | (754,472) | (8,871,423) | (16,433,752) |
Net increase (decrease) | (214,248) | 391,681 | $ (2,769,326) | $ 9,209,308 |
Institutional Class | | | | |
Shares sold | 194,300 | 1,095,024 | $ 3,444,229 | $ 26,168,229 |
Reinvestment of distributions | 10,868 | 66,827 | 192,321 | 1,640,412 |
Shares redeemed | (750,256) | (423,274) | (11,336,201) | (10,027,561) |
Net increase (decrease) | (545,088) | 738,577 | $ (7,699,651) | $ 17,781,080 |
Industrials
Advisor Technology Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.22% | | | |
Actual | | $ 1,000.00 | $ 583.30 | $ 4.87 |
HypotheticalA | | $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.48% | | | |
Actual | | $ 1,000.00 | $ 582.40 | $ 5.90 |
HypotheticalA | | $ 1,000.00 | $ 1,017.74 | $ 7.53 |
Class B | 1.97% | | | |
Actual | | $ 1,000.00 | $ 580.80 | $ 7.85 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Class C | 1.97% | | | |
Actual | | $ 1,000.00 | $ 580.70 | $ 7.85 |
HypotheticalA | | $ 1,000.00 | $ 1,015.27 | $ 10.01 |
Institutional Class | .98% | | | |
Actual | | $ 1,000.00 | $ 583.70 | $ 3.91 |
HypotheticalA | | $ 1,000.00 | $ 1,020.27 | $ 4.99 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Technology
Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Cisco Systems, Inc. | 7.9 | 4.3 |
QUALCOMM, Inc. | 6.5 | 5.0 |
Microsoft Corp. | 3.5 | 0.1 |
Hewlett-Packard Co. | 3.4 | 0.3 |
Google, Inc. Class A (sub. vtg.) | 3.2 | 1.0 |
ASML Holding NV (NY Shares) | 2.8 | 0.7 |
Starent Networks Corp. | 2.7 | 1.7 |
Visa, Inc. | 2.4 | 2.1 |
Apple, Inc. | 2.2 | 11.2 |
Intel Corp. | 2.0 | 0.0 |
| 36.6 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Semiconductors & Semiconductor Equipment | 25.8% | |
| Communications Equipment | 22.2% | |
| Software | 16.1% | |
| Computers & Peripherals | 9.7% | |
| Electronic Equipment & Components | 6.3% | |
| All Others* | 19.9% | |
As of July 31, 2008 |
| Communications Equipment | 23.6% | |
| Semiconductors & Semiconductor Equipment | 18.4% | |
| Computers & Peripherals | 16.9% | |
| Software | 15.7% | |
| Health Care
Equipment & Supplies | 4.1% | |
| All Others* | 21.3% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Technology Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% |
| Shares | | Value |
COMMUNICATIONS EQUIPMENT - 22.0% |
Communications Equipment - 22.0% |
ADC Telecommunications, Inc. (a) | 188,699 | | $ 956,704 |
ADVA AG Optical Networking (a)(d) | 442,449 | | 566,467 |
Alcatel-Lucent SA sponsored ADR (a) | 14,300 | | 28,171 |
Aruba Networks, Inc. (a) | 9,800 | | 26,166 |
AudioCodes Ltd. (a) | 288,850 | | 493,934 |
Balda AG (a) | 111,500 | | 69,949 |
Ciena Corp. (a) | 99,200 | | 619,008 |
Cisco Systems, Inc. (a) | 1,678,700 | | 25,130,140 |
Cogo Group, Inc. (a) | 228,675 | | 1,527,549 |
CommScope, Inc. (a) | 68,000 | | 980,560 |
Comverse Technology, Inc. (a) | 457,700 | | 2,892,664 |
Delta Networks, Inc. | 1,493,000 | | 208,456 |
F5 Networks, Inc. (a) | 15,000 | | 332,550 |
Infinera Corp. (a) | 116,200 | | 797,132 |
OZ Optics Ltd. unit (e) | 68,000 | | 320,960 |
Powerwave Technologies, Inc. (a) | 731,000 | | 328,950 |
QUALCOMM, Inc. | 595,100 | | 20,560,705 |
Research In Motion Ltd. (a) | 46,900 | | 2,598,260 |
Riverbed Technology, Inc. (a) | 100 | | 1,015 |
Sandvine Corp. (a) | 1,587,300 | | 880,503 |
Sandvine Corp. (U.K.) (a) | 1,078,100 | | 664,219 |
Sonus Networks, Inc. (a) | 167,560 | | 221,179 |
Starent Networks Corp. (a) | 591,177 | | 8,690,302 |
Tellabs, Inc. (a) | 182,400 | | 753,312 |
| | 69,648,855 |
COMPUTERS & PERIPHERALS - 9.7% |
Computer Hardware - 7.9% |
3PAR, Inc. (a) | 5,900 | | 50,091 |
Apple, Inc. (a) | 77,355 | | 6,972,006 |
Dell, Inc. (a) | 323,200 | | 3,070,400 |
Hewlett-Packard Co. | 314,500 | | 10,928,875 |
HTC Corp. | 105,180 | | 993,228 |
NCR Corp. (a) | 95,000 | | 1,192,250 |
Palm, Inc. (a)(d) | 96,800 | | 742,456 |
Stratasys, Inc. (a)(d) | 108,790 | | 1,165,141 |
| | 25,114,447 |
Computer Storage & Peripherals - 1.8% |
Chicony Electronics Co. Ltd. | 332,390 | | 298,626 |
EMC Corp. (a) | 142,600 | | 1,574,304 |
SanDisk Corp. (a) | 41,948 | | 479,466 |
Seagate Technology | 599,800 | | 2,273,242 |
Synaptics, Inc. (a)(d) | 29,700 | | 700,029 |
Western Digital Corp. (a) | 24,500 | | 359,660 |
| | 5,685,327 |
TOTAL COMPUTERS & PERIPHERALS | | 30,799,774 |
|
| Shares | | Value |
CONSTRUCTION & ENGINEERING - 0.1% |
Construction & Engineering - 0.1% |
Dycom Industries, Inc. (a) | 40,900 | | $ 278,529 |
MasTec, Inc. (a) | 14,500 | | 154,135 |
| | 432,664 |
DIVERSIFIED CONSUMER SERVICES - 0.0% |
Education Services - 0.0% |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 600 | | 28,704 |
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.1% |
Integrated Telecommunication Services - 0.1% |
Vimpel Communications sponsored ADR | 65,100 | | 396,459 |
ELECTRICAL EQUIPMENT - 1.5% |
Electrical Components & Equipment - 1.5% |
centrotherm photovoltaics AG (a)(d) | 1,273 | | 24,594 |
Energy Conversion Devices, Inc. (a)(d) | 20,400 | | 513,468 |
First Solar, Inc. (a) | 4,514 | | 644,599 |
General Cable Corp. (a)(d) | 69,600 | | 1,145,616 |
JA Solar Holdings Co. Ltd. ADR (a)(d) | 108,400 | | 288,344 |
Neo-Neon Holdings Ltd. | 3,757,000 | | 565,653 |
Q-Cells SE (a) | 1,200 | | 29,498 |
Roth & Rau AG | 1,516 | | 25,252 |
Sunpower Corp. Class B (a) | 32,844 | | 867,738 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 37,700 | | 354,757 |
Yingli Green Energy Holding Co. Ltd. ADR (a) | 25,800 | | 144,222 |
| | 4,603,741 |
ELECTRONIC EQUIPMENT & COMPONENTS - 6.3% |
Electronic Components - 0.7% |
Amphenol Corp. Class A | 55,700 | | 1,456,555 |
Everlight Electronics Co. Ltd. | 587,376 | | 775,980 |
Vishay Intertechnology, Inc. (a) | 51,200 | | 151,552 |
| | 2,384,087 |
Electronic Equipment & Instruments - 1.0% |
Agilent Technologies, Inc. (a) | 9,100 | | 164,528 |
China Security & Surveillance Technology, Inc. (a)(d) | 161,734 | | 889,537 |
Chroma ATE, Inc. | 1,191,316 | | 629,948 |
Comverge, Inc. (a) | 10,189 | | 46,768 |
Coretronic Corp. | 270,300 | | 144,273 |
FLIR Systems, Inc. (a) | 21,700 | | 541,849 |
Mettler-Toledo International, Inc. (a) | 3,700 | | 246,346 |
National Instruments Corp. | 18,700 | | 401,489 |
| | 3,064,738 |
Electronic Manufacturing Services - 1.3% |
Flextronics International Ltd. (a) | 614,000 | | 1,602,540 |
Ju Teng International Holdings Ltd. (a) | 1,328,000 | | 314,073 |
Molex, Inc. | 16,400 | | 219,268 |
Multi-Fineline Electronix, Inc. (a) | 27,589 | | 511,224 |
Common Stocks - continued |
| Shares | | Value |
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED |
Electronic Manufacturing Services - continued |
Trimble Navigation Ltd. (a) | 68,400 | | $ 1,013,688 |
Tyco Electronics Ltd. | 30,600 | | 433,296 |
| | 4,094,089 |
Technology Distributors - 3.3% |
Anixter International, Inc. (a) | 12,100 | | 326,458 |
Arrow Electronics, Inc. (a) | 100,700 | | 1,920,349 |
Avnet, Inc. (a) | 163,600 | | 3,242,552 |
Ingram Micro, Inc. Class A (a) | 216,200 | | 2,652,774 |
Synnex Technology International Corp. | 956,000 | | 1,063,582 |
WPG Holding Co. Ltd. | 2,238,000 | | 1,175,938 |
| | 10,381,653 |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | | 19,924,567 |
ENERGY EQUIPMENT & SERVICES - 0.0% |
Oil & Gas Equipment & Services - 0.0% |
IHS, Inc. Class A (a) | 1,100 | | 48,180 |
HEALTH CARE EQUIPMENT & SUPPLIES - 1.4% |
Health Care Equipment - 1.0% |
China Medical Technologies, Inc. sponsored ADR (d) | 72,900 | | 1,118,286 |
Golden Meditech Co. Ltd. (a) | 2,168,000 | | 197,222 |
I-Flow Corp. (a) | 77,610 | | 318,977 |
Mindray Medical International Ltd. sponsored ADR | 200 | | 4,132 |
Mingyuan Medicare Development Co. Ltd. (d) | 33,580,000 | | 1,575,017 |
| | 3,213,634 |
Health Care Supplies - 0.4% |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 730,000 | | 1,241,657 |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | 4,455,291 |
HEALTH CARE PROVIDERS & SERVICES - 0.0% |
Health Care Services - 0.0% |
athenahealth, Inc. (a) | 600 | | 21,648 |
HOTELS, RESTAURANTS & LEISURE - 0.0% |
Hotels, Resorts & Cruise Lines - 0.0% |
Ctrip.com International Ltd. sponsored ADR | 1,200 | | 25,188 |
HOUSEHOLD DURABLES - 0.0% |
Consumer Electronics - 0.0% |
TomTom Group BV (a) | 100 | | 534 |
INTERNET & CATALOG RETAIL - 0.8% |
Internet Retail - 0.8% |
Amazon.com, Inc. | 13,300 | | 782,306 |
|
| Shares | | Value |
Expedia, Inc. (a) | 112,760 | | $ 1,006,947 |
Priceline.com, Inc. (a) | 9,612 | | 644,869 |
| | 2,434,122 |
INTERNET SOFTWARE & SERVICES - 6.2% |
Internet Software & Services - 6.2% |
Ariba, Inc. (a) | 148,308 | | 1,133,073 |
Constant Contact, Inc. (a) | 8,924 | | 136,269 |
DealerTrack Holdings, Inc. (a) | 12,300 | | 140,097 |
eBay, Inc. (a) | 95,000 | | 1,141,900 |
Equinix, Inc. (a)(d) | 36,000 | | 1,920,600 |
Google, Inc. Class A (sub. vtg.) (a) | 30,200 | | 10,223,606 |
Omniture, Inc. (a) | 34,800 | | 316,332 |
Rackspace Hosting, Inc. | 38,391 | | 188,116 |
SAVVIS, Inc. (a) | 8,900 | | 56,782 |
Switch & Data Facilities Co., Inc. (a) | 12,600 | | 86,688 |
Tencent Holdings Ltd. | 148,000 | | 904,328 |
VeriSign, Inc. (a) | 85,400 | | 1,649,074 |
Yahoo!, Inc. (a) | 136,400 | | 1,599,972 |
| | 19,496,837 |
IT SERVICES - 4.0% |
Data Processing & Outsourced Services - 3.6% |
CyberSource Corp. (a) | 31,895 | | 380,507 |
Lender Processing Services, Inc. | 42,400 | | 1,099,008 |
MasterCard, Inc. Class A | 17,400 | | 2,362,572 |
Visa, Inc. | 154,000 | | 7,599,900 |
| | 11,441,987 |
IT Consulting & Other Services - 0.4% |
China Information Security Technology, Inc. (a)(d) | 8,917 | | 27,286 |
SAIC, Inc. (a) | 26,800 | | 529,032 |
Satyam Computer Services Ltd. sponsored ADR | 11,600 | | 22,040 |
Yucheng Technologies Ltd. (a) | 135,000 | | 591,300 |
| | 1,169,658 |
TOTAL IT SERVICES | | 12,611,645 |
LIFE SCIENCES TOOLS & SERVICES - 0.1% |
Life Sciences Tools & Services - 0.1% |
Thermo Fisher Scientific, Inc. (a) | 4,100 | | 147,313 |
MACHINERY - 0.4% |
Industrial Machinery - 0.4% |
China Fire & Security Group, Inc. (a)(d) | 24,900 | | 164,838 |
Meyer Burger Technology AG (a) | 270 | | 20,601 |
Shin Zu Shing Co. Ltd. | 438,424 | | 961,351 |
| | 1,146,790 |
Common Stocks - continued |
| Shares | | Value |
MEDIA - 1.4% |
Advertising - 1.4% |
AirMedia Group, Inc. ADR (a) | 89,400 | | $ 440,742 |
VisionChina Media, Inc. ADR (a)(d) | 617,500 | | 3,816,150 |
| | 4,256,892 |
METALS & MINING - 0.0% |
Diversified Metals & Mining - 0.0% |
Timminco Ltd. (a) | 5,600 | | 15,806 |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 25.1% |
Semiconductor Equipment - 8.9% |
Aixtron AG | 1,800 | | 9,310 |
Amkor Technology, Inc. (a) | 72,300 | | 167,736 |
Applied Materials, Inc. | 154,300 | | 1,445,791 |
ASML Holding NV (NY Shares) | 534,300 | | 8,837,322 |
Cymer, Inc. (a) | 101,200 | | 2,064,480 |
FormFactor, Inc. (a) | 63,400 | | 986,504 |
Global Unichip Corp. | 68,675 | | 252,902 |
Inotera Memories, Inc. (a) | 2,548,000 | | 775,343 |
Lam Research Corp. (a) | 198,500 | | 4,011,685 |
LTX-Credence Corp. (a) | 497,102 | | 144,160 |
MEMC Electronic Materials, Inc. (a) | 80,900 | | 1,100,240 |
Photronics, Inc. (a) | 82,700 | | 131,493 |
Tessera Technologies, Inc. (a) | 172,900 | | 2,033,304 |
Varian Semiconductor Equipment Associates, Inc. (a) | 248,900 | | 4,739,056 |
Verigy Ltd. (a) | 165,200 | | 1,372,812 |
| | 28,072,138 |
Semiconductors - 16.2% |
Advanced Semiconductor Engineering, Inc. sponsored ADR | 625,980 | | 1,001,568 |
Applied Micro Circuits Corp. (a) | 8,650 | | 34,600 |
ARM Holdings PLC sponsored ADR | 219,200 | | 878,992 |
Atheros Communications, Inc. (a) | 72,400 | | 869,524 |
Atmel Corp. (a) | 257,400 | | 859,716 |
AuthenTec, Inc. (a) | 43,400 | | 72,044 |
Cavium Networks, Inc. (a) | 415,631 | | 3,782,242 |
Cree, Inc. (a)(d) | 137,650 | | 2,743,365 |
Cypress Semiconductor Corp. (a)(d) | 274,700 | | 1,238,897 |
Diodes, Inc. (a) | 39,100 | | 253,368 |
Elan Microelectronics Corp. | 195,000 | | 141,131 |
ENE Technology, Inc. | 69,415 | | 65,437 |
Epistar Corp. | 742,000 | | 671,953 |
Fairchild Semiconductor International, Inc. (a) | 316,600 | | 1,440,530 |
Hynix Semiconductor, Inc. (a) | 82,830 | | 522,720 |
Integrated Device Technology, Inc. (a) | 17,300 | | 99,302 |
Intel Corp. | 480,600 | | 6,199,740 |
International Rectifier Corp. (a) | 250,400 | | 3,410,448 |
Intersil Corp. Class A | 65,700 | | 611,667 |
LSI Corp. (a) | 323,800 | | 1,029,684 |
Marvell Technology Group Ltd. (a) | 397,400 | | 2,897,046 |
Maxim Integrated Products, Inc. | 74,900 | | 990,927 |
|
| Shares | | Value |
Micron Technology, Inc. (a) | 1,351,300 | | $ 5,026,836 |
Microsemi Corp. (a) | 28,700 | | 241,080 |
Monolithic Power Systems, Inc. (a) | 27,700 | | 336,555 |
MoSys, Inc. (a) | 32,100 | | 66,768 |
National Semiconductor Corp. | 182,700 | | 1,852,578 |
Netlogic Microsystems, Inc. (a) | 15,600 | | 330,876 |
NVIDIA Corp. (a) | 286,800 | | 2,280,060 |
PMC-Sierra, Inc. (a) | 138,300 | | 673,521 |
Power Integrations, Inc. | 16,600 | | 323,202 |
Powertech Technology, Inc. | 239,000 | | 323,000 |
Samsung Electronics Co. Ltd. | 7,064 | | 2,452,774 |
Semtech Corp. (a) | 8,900 | | 104,575 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 266,400 | | 1,100,232 |
SiRF Technology Holdings, Inc. (a) | 102,200 | | 104,244 |
Skyworks Solutions, Inc. (a) | 187,400 | | 809,568 |
Standard Microsystems Corp. (a) | 22,400 | | 310,240 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,496,000 | | 1,829,041 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 224,700 | | 1,694,238 |
Texas Instruments, Inc. | 105,400 | | 1,575,730 |
TriQuint Semiconductor, Inc. (a) | 31,500 | | 63,630 |
Volterra Semiconductor Corp. (a) | 8,300 | | 58,100 |
| | 51,371,749 |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | 79,443,887 |
SOFTWARE - 16.1% |
Application Software - 6.4% |
Ansys, Inc. (a) | 5,900 | | 146,674 |
Autodesk, Inc. (a) | 1,800 | | 29,808 |
Autonomy Corp. PLC (a) | 118,000 | | 1,871,382 |
Blackboard, Inc. (a) | 6,700 | | 170,247 |
Cadence Design Systems, Inc. (a) | 951,200 | | 3,595,536 |
Callidus Software, Inc. (a) | 107,291 | | 281,102 |
Citrix Systems, Inc. (a) | 34,500 | | 725,880 |
Concur Technologies, Inc. (a) | 43,900 | | 1,083,891 |
Epicor Software Corp. (a) | 31,500 | | 111,510 |
Informatica Corp. (a) | 49,500 | | 631,620 |
Kingdee International Software Group Co. Ltd. | 3,226,000 | | 288,104 |
Longtop Financial Technologies Ltd. ADR (a) | 54,300 | | 763,458 |
Nuance Communications, Inc. (a)(d) | 17,300 | | 170,578 |
Parametric Technology Corp. (a) | 79,900 | | 719,100 |
Salesforce.com, Inc. (a) | 116,400 | | 3,097,404 |
Smith Micro Software, Inc. (a) | 204,100 | | 1,081,730 |
SuccessFactors, Inc. (a) | 228,800 | | 1,539,824 |
Synchronoss Technologies, Inc. (a) | 141,048 | | 1,200,318 |
Synopsys, Inc. (a) | 1,700 | | 31,450 |
Common Stocks - continued |
| Shares | | Value |
SOFTWARE - CONTINUED |
Application Software - continued |
Taleo Corp. Class A (a) | 76,988 | | $ 649,009 |
Ulticom, Inc. (a) | 359,426 | | 2,066,700 |
| | 20,255,325 |
Home Entertainment Software - 2.3% |
Activision Blizzard, Inc. (a) | 15,000 | | 131,400 |
Nintendo Co. Ltd. | 13,200 | | 3,843,840 |
Perfect World Co. Ltd. sponsored ADR Class B (a)(d) | 213,300 | | 3,158,973 |
THQ, Inc. (a) | 49,400 | | 195,130 |
| | 7,329,343 |
Systems Software - 7.4% |
BMC Software, Inc. (a) | 18,600 | | 471,138 |
CA, Inc. | 91,800 | | 1,651,482 |
Check Point Software Technologies Ltd. (a) | 1,700 | | 38,539 |
Insyde Software Corp. | 881,239 | | 1,574,951 |
McAfee, Inc. (a) | 38,500 | | 1,173,865 |
Microsoft Corp. | 646,200 | | 11,050,020 |
Oracle Corp. (a) | 9,400 | | 158,202 |
Phoenix Technologies Ltd. (a) | 55,900 | | 144,222 |
Red Hat, Inc. (a) | 106,100 | | 1,554,365 |
Symantec Corp. (a) | 322,400 | | 4,942,392 |
VMware, Inc. Class A (a) | 24,600 | | 509,220 |
| | 23,268,396 |
TOTAL SOFTWARE | | 50,853,064 |
SPECIALTY RETAIL - 0.1% |
Computer & Electronics Retail - 0.1% |
The Game Group PLC | 162,100 | | 337,208 |
WIRELESS TELECOMMUNICATION SERVICES - 2.3% |
Wireless Telecommunication Services - 2.3% |
American Tower Corp. Class A (a) | 96,100 | | 2,915,674 |
Crown Castle International Corp. (a) | 64,200 | | 1,253,184 |
SBA Communications Corp. Class A (a) | 161,200 | | 3,207,880 |
| | 7,376,738 |
TOTAL COMMON STOCKS (Cost $454,324,609) | 308,505,907 |
Convertible Bonds - 0.9% |
| Principal Amount | | |
COMMUNICATIONS EQUIPMENT - 0.2% |
Communications Equipment - 0.2% |
Ciena Corp. 0.25% 5/1/13 | | $ 1,270,000 | | 719,709 |
|
| Principal Amount | | Value |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.7% |
Semiconductors - 0.7% |
Advanced Micro Devices, Inc. 5.75% 8/15/12 | | $ 6,960,000 | | $ 2,166,300 |
TOTAL CONVERTIBLE BONDS (Cost $6,651,091) | 2,886,009 |
Money Market Funds - 4.6% |
| Shares | | |
Fidelity Cash Central Fund, 0.78% (b) | 1,530,154 | | 1,530,154 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 12,968,492 | | 12,968,492 |
TOTAL MONEY MARKET FUNDS (Cost $14,498,646) | 14,498,646 |
TOTAL INVESTMENT PORTFOLIO - 103.1% (Cost $475,474,346) | | 325,890,562 |
NET OTHER ASSETS - (3.1)% | | (9,730,521) |
NET ASSETS - 100% | $ 316,160,041 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $320,960 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
OZ Optics Ltd. unit | 8/18/00 | $ 1,003,680 |
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 | $ 87,233 |
Fidelity Securities Lending Cash Central Fund | 653,139 |
Total | $ 740,372 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 325,890,562 | $ 298,893,065 | $ 26,676,537 | $ 320,960 |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
| Investments in Securities |
Beginning Balance | $ 821,100 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (500,140) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfer in/out of Level 3 | - |
Ending Balance | $ 320,960 |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows:
(Unaudited) |
United States of America | 79.8% |
Taiwan | 4.6% |
Cayman Islands | 4.3% |
Netherlands | 2.8% |
Bermuda | 1.5% |
Canada | 1.4% |
Japan | 1.2% |
United Kingdom | 1.0% |
Korea (South) | 1.0% |
Others (individually less than 1%) | 2.4% |
| 100.0% |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $1,389,526,620 of which $889,719,837 and $499,806,783 will expire on July 31, 2010 and 2011, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $44,009,554 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Technology Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $12,135,460) - See accompanying schedule: Unaffiliated issuers (cost $460,975,700) | $ 311,391,916 | |
Fidelity Central Funds (cost $14,498,646) | 14,498,646 | |
Total Investments (cost $475,474,346) | | $ 325,890,562 |
Foreign currency held at value (cost $153) | | 151 |
Receivable for investments sold | | 21,982,875 |
Receivable for fund shares sold | | 390,092 |
Dividends receivable | | 46,270 |
Interest receivable | | 184,210 |
Distributions receivable from Fidelity Central Funds | | 52,015 |
Prepaid expenses | | 4,201 |
Other receivables | | 16,243 |
Total assets | | 348,566,619 |
| | |
Liabilities | | |
Payable for investments purchased | $ 18,408,579 | |
Payable for fund shares redeemed | 625,945 | |
Accrued management fee | 154,057 | |
Distribution fees payable | 121,496 | |
Other affiliated payables | 90,100 | |
Other payables and accrued expenses | 37,909 | |
Collateral on securities loaned, at value | 12,968,492 | |
Total liabilities | | 32,406,578 |
| | |
Net Assets | | $ 316,160,041 |
Net Assets consist of: | | |
Paid in capital | | $ 2,095,684,313 |
Accumulated net investment loss | | (691,382) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,629,248,138) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (149,584,752) |
Net Assets | | $ 316,160,041 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($155,435,941 ÷ 15,640,368 shares) | | $ 9.94 |
| | |
Maximum offering price per share (100/94.25 of $9.94) | | $ 10.55 |
Class T:
Net Asset Value and redemption price per share ($92,672,253 ÷ 9,574,410 shares) | | $ 9.68 |
| | |
Maximum offering price per share (100/96.50 of $9.68) | | $ 10.03 |
Class B:
Net Asset Value and offering price per share ($22,415,913 ÷ 2,454,599 shares)A | | $ 9.13 |
| | |
Class C:
Net Asset Value and offering price per share ($33,450,854 ÷ 3,647,091 shares)A | | $ 9.17 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($12,185,080 ÷ 1,180,552 shares) | | $ 10.32 |
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.
Technology
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,055,834 |
Interest | | 370,028 |
Income from Fidelity Central Funds (including $653,139 from security lending) | | 740,372 |
Total income | | 2,166,234 |
| | |
Expenses | | |
Management fee | $ 1,168,163 | |
Transfer agent fees | 606,800 | |
Distribution fees | 939,806 | |
Accounting and security lending fees | 83,187 | |
Custodian fees and expenses | 42,218 | |
Independent trustees' compensation | 1,250 | |
Registration fees | 42,585 | |
Audit | 29,050 | |
Legal | 4,518 | |
Miscellaneous | 48,108 | |
Total expenses before reductions | 2,965,685 | |
Expense reductions | (30,307) | 2,935,378 |
Net investment income (loss) | | (769,144) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (194,003,833) | |
Foreign currency transactions | (41,837) | |
Total net realized gain (loss) | | (194,045,670) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (43,287,844) | |
Assets and liabilities in foreign currencies | 14,072 | |
Total change in net unrealized appreciation (depreciation) | | (43,273,772) |
Net gain (loss) | | (237,319,442) |
Net increase (decrease) in net assets resulting from operations | | $ (238,088,586) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (769,144) | $ (5,177,940) |
Net realized gain (loss) | (194,045,670) | (11,273,810) |
Change in net unrealized appreciation (depreciation) | (43,273,772) | (114,740,676) |
Net increase (decrease) in net assets resulting from operations | (238,088,586) | (131,192,426) |
Share transactions - net increase (decrease) | (27,700,615) | (67,084,453) |
Redemption fees | 10,002 | 32,772 |
Total increase (decrease) in net assets | (265,779,199) | (198,244,107) |
| | |
Net Assets | | |
Beginning of period | 581,939,240 | 780,183,347 |
End of period (including accumulated net investment loss of $691,382 and undistributed net investment income of $77,762, respectively) | $ 316,160,041 | $ 581,939,240 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 | $ 13.36 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.17) | (.15) | .02 H | (.17) |
Net realized and unrealized gain (loss) | (7.09) | (3.41) | 5.13 | (.42) | 2.24 | .79 |
Total from investment operations | (7.10) | (3.51) | 4.96 | (.57) | 2.26 | .62 |
Distributions from net investment income | - | - | - | - | (.08) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.94 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 |
Total Return B, C, D | (41.67)% | (17.08)% | 31.82% | (3.53)% | 16.20% | 4.64% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.22% A | 1.21% | 1.25% | 1.30% | 1.37% | 1.44% |
Expenses net of fee waivers, if any | 1.22% A | 1.21% | 1.25% | 1.30% | 1.37% | 1.44% |
Expenses net of all reductions | 1.21% A | 1.19% | 1.24% | 1.20% | 1.26% | 1.35% |
Net investment income (loss) | (.17)% A | (.49)% | (.91)% | (.88)% | .12% H | (1.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 155,436 | $ 275,117 | $ 309,105 | $ 189,054 | $ 144,970 | $ 123,389 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 | $ 13.17 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.14) | (.21) | (.19) | (.02) H | (.19) |
Net realized and unrealized gain (loss) | (6.91) | (3.33) | 5.02 | (.41) | 2.21 | .78 |
Total from investment operations | (6.94) | (3.47) | 4.81 | (.60) | 2.19 | .59 |
Distributions from net investment income | - | - | - | - | (.07) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.68 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 |
Total Return B, C, D | (41.76)% | (17.27)% | 31.48% | (3.78)% | 15.94% | 4.48% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.48% A | 1.46% | 1.51% | 1.55% | 1.60% | 1.62% |
Expenses net of fee waivers, if any | 1.48% A | 1.46% | 1.51% | 1.55% | 1.60% | 1.62% |
Expenses net of all reductions | 1.46% A | 1.45% | 1.49% | 1.44% | 1.48% | 1.53% |
Net investment income (loss) | (.42)% A | (.74)% | (1.16)% | (1.13)% | (.11)% H | (1.28)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 92,672 | $ 173,917 | $ 260,339 | $ 260,966 | $ 315,930 | $ 363,399 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend the ratio of net investment income (loss) to average net assets would have been (1.10)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Technology
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 | $ 12.76 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.23) | (.28) | (.27) | (.09) H | (.27) |
Net realized and unrealized gain (loss) | (6.54) | (3.15) | 4.79 | (.38) | 2.12 | .76 |
Total from investment operations | (6.59) | (3.38) | 4.51 | (.65) | 2.03 | .49 |
Distributions from net investment income | - | - | - | - | (.04) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.13 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 |
Total Return B, C, D | (41.92)% | (17.70)% | 30.91% | (4.27) % | 15.33% | 3.84% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.97% A | 1.96% | 2.01% | 2.05% | 2.13% | 2.21% |
Expenses net of fee waivers, if any | 1.97% A | 1.96% | 2.01% | 2.05% | 2.13% | 2.21% |
Expenses net of all reductions | 1.96% A | 1.94% | 2.00% | 1.94% | 2.02% | 2.12% |
Net investment income (loss) | (.91)% A | (1.24)% | (1.67)% | (1.63)% | (.65)% H | (1.87)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,416 | $ 47,294 | $ 102,655 | $ 192,790 | $ 309,020 | $ 355,927 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.64)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 | $ 12.80 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.23) | (.29) | (.27) | (.08) H | (.26) |
Net realized and unrealized gain (loss) | (6.57) | (3.16) | 4.81 | (.38) | 2.12 | .77 |
Total from investment operations | (6.62) | (3.39) | 4.52 | (.65) | 2.04 | .51 |
Distributions from net investment income | - | - | - | - | (.04) | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 9.17 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 |
Total Return B, C, D | (41.93)% | (17.67)% | 30.83% | (4.25)% | 15.34% | 3.98% |
Ratios to Average Net Assets F, I | | | | | | |
Expenses before reductions | 1.97% A | 1.96% | 2.01% | 2.05% | 2.10% | 2.13% |
Expenses net of fee waivers, if any | 1.97% A | 1.96% | 2.01% | 2.05% | 2.10% | 2.13% |
Expenses net of all reductions | 1.96% A | 1.94% | 1.99% | 1.94% | 1.99% | 2.04% |
Net investment income (loss) | (.91)% A | (1.24)% | (1.66)% | (1.63)% | (.61)% H | (1.79)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 33,451 | $ 63,590 | $ 86,974 | $ 82,835 | $ 108,287 | $ 125,926 |
Portfolio turnover rate G | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.60)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 | $ 13.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .01 | (.04) | (.11) | (.09) | .09 G | (.09) |
Net realized and unrealized gain (loss) | (7.37) | (3.54) | 5.30 | (.44) | 2.30 | .80 |
Total from investment operations | (7.36) | (3.58) | 5.19 | (.53) | 2.39 | .71 |
Distributions from net investment income | - | - | - | - | (.11) | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.32 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 |
Total Return B, C | (41.63)% | (16.84)% | 32.30% | (3.19)% | 16.73% | 5.22% |
Ratios to Average Net Assets E, H | | | | | | |
Expenses before reductions | .98% A | .94% | .93% | .90% | .92% | .93% |
Expenses net of fee waivers, if any | .98% A | .94% | .93% | .90% | .92% | .93% |
Expenses net of all reductions | .96% A | .92% | .92% | .80% | .81% | .84% |
Net investment income (loss) | .08% A | (.22)% | (.59)% | (.49)% | .57% G | (.59)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,185 | $ 22,021 | $ 21,111 | $ 11,681 | $ 11,640 | $ 10,984 |
Portfolio turnover rate F | 283% A | 214% | 208% | 258% | 180% | 105% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.42)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Technology
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Technology Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 5,704,976 |
Unrealized depreciation | (162,985,892) |
Net unrealized appreciation (depreciation) | $ (157,280,916) |
Cost for federal income tax purposes | $ 483,171,478 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Technology
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $584,617,488 and $610,923,467, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 249,328 | $ 5,725 |
Class T | .25% | .25% | 307,908 | - |
Class B | .75% | .25% | 158,818 | 119,113 |
Class C | .75% | .25% | 223,752 | 10,269 |
| | | $ 939,806 | $ 135,107 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,708 |
Class T | 7,199 |
Class B* | 32,168 |
Class C* | 1,193 |
| $ 52,268 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 289,830 | .29 |
Class T | 182,762 | .30 |
Class B | 46,214 | .29 |
Class C | 65,255 | .29 |
Institutional Class | 22,739 | .29 |
| $ 606,800 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $16,478 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $542 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $29,176 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $967. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 75 |
Institutional Class | 89 |
| $ 164 |
Technology
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended January 31,
2009 | Year ended
July 31,
2008 | Six months ended January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,603,231 | 5,381,278 | $ 19,994,395 | $ 105,720,351 |
Shares redeemed | (2,104,251) | (4,279,571) | (25,419,813) | (82,236,119) |
Net increase (decrease) | (501,020) | 1,101,707 | $ (5,425,418) | $ 23,484,232 |
Class T | | | | |
Shares sold | 638,606 | 2,146,310 | $ 7,650,614 | $ 41,674,472 |
Shares redeemed | (1,527,668) | (4,638,425) | (18,142,100) | (86,554,961) |
Net increase (decrease) | (889,062) | (2,492,115) | $ (10,491,486) | $ (44,880,489) |
Class B | | | | |
Shares sold | 137,258 | 406,127 | $ 1,502,922 | $ 7,558,898 |
Shares redeemed | (691,010) | (2,773,060) | (8,007,024) | (50,298,253) |
Net increase (decrease) | (553,752) | (2,366,933) | $ (6,504,102) | $ (42,739,355) |
Class C | | | | |
Shares sold | 165,052 | 550,177 | $ 1,869,483 | $ 10,400,107 |
Shares redeemed | (545,403) | (1,056,703) | (6,105,451) | (18,857,821) |
Net increase (decrease) | (380,351) | (506,526) | $ (4,235,968) | $ (8,457,714) |
Institutional Class | | | | |
Shares sold | 194,456 | 628,983 | $ 2,437,124 | $ 12,989,931 |
Shares redeemed | (259,444) | (376,415) | (3,480,765) | (7,481,058) |
Net increase (decrease) | (64,988) | 252,568 | $ (1,043,641) | $ 5,508,873 |
Semiannual Report
Advisor Utilities Fund
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized
Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008 to January 31, 2009 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 726.00 | $ 5.44 |
Hypothetical A | | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.51% | | | |
Actual | | $ 1,000.00 | $ 725.80 | $ 6.57 |
Hypothetical A | | $ 1,000.00 | $ 1,017.59 | $ 7.68 |
Class B | 1.99% | | | |
Actual | | $ 1,000.00 | $ 724.00 | $ 8.65 |
Hypothetical A | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% | | | |
Actual | | $ 1,000.00 | $ 724.00 | $ 8.65 |
Hypothetical A | | $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Institutional Class | .99% | | | |
Actual | | $ 1,000.00 | $ 727.50 | $ 4.31 |
Hypothetical A | | $ 1,000.00 | $ 1,020.21 | $ 5.04 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Exelon Corp. | 11.4 | 9.5 |
FirstEnergy Corp. | 6.6 | 4.9 |
Public Service Enterprise Group, Inc. | 6.5 | 3.9 |
Progress Energy, Inc. | 6.1 | 0.0 |
Entergy Corp. | 5.7 | 6.0 |
American Electric Power Co., Inc. | 4.9 | 4.2 |
Sempra Energy | 4.9 | 5.0 |
PPL Corp. | 4.6 | 10.9 |
PG&E Corp. | 4.0 | 2.0 |
Wisconsin Energy Corp. | 3.8 | 0.0 |
| 58.5 | |
Top Industries (% of fund's net assets) |
As of January 31, 2009 |
| Electric Utilities | 58.9% | |
| Multi-utilities | 26.5% | |
| Independent Power Producers & Energy Traders | 9.0% | |
| Gas Utilities | 4.7% | |
| Diversified
Financial Services | 0.3% | |
| All Others* | 0.6% | |
|
As of July 31, 2008 |
| Electric Utilities | 54.3% | |
| Independent Power Producers & Energy Traders | 18.0% | |
| Multi-utilities | 14.1% | |
| Gas Utilities | 4.0% | |
| Electronic Equipment & Instruments | 0.4% | |
| All Others* | 9.2% | |
* Includes short-term investments and net other assets. |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. |
Semiannual Report
Advisor Utilities Fund
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% |
| Shares | | Value |
DIVERSIFIED FINANCIAL SERVICES - 0.3% |
Other Diversifed Financial Services - 0.3% |
Hicks Acquisition Co. I, Inc. unit (a) | 39,200 | | $ 361,424 |
ELECTRIC UTILITIES - 58.9% |
Electric Utilities - 58.9% |
Allegheny Energy, Inc. | 91,700 | | 3,048,108 |
American Electric Power Co., Inc. | 226,700 | | 7,107,045 |
DPL, Inc. | 134,500 | | 2,898,475 |
Edison International | 108,200 | | 3,524,074 |
Entergy Corp. | 107,000 | | 8,170,520 |
Exelon Corp. | 305,000 | | 16,537,099 |
FirstEnergy Corp. | 191,800 | | 9,588,082 |
FPL Group, Inc. | 90,800 | | 4,680,740 |
Northeast Utilities | 182,300 | | 4,338,740 |
NV Energy, Inc. | 341,800 | | 3,667,514 |
Pepco Holdings, Inc. | 123,300 | | 2,195,973 |
Pinnacle West Capital Corp. | 65,300 | | 2,185,591 |
PPL Corp. | 218,075 | | 6,686,180 |
Progress Energy, Inc. | 227,500 | | 8,808,800 |
Southern Co. | 41,100 | | 1,374,795 |
Westar Energy, Inc. | 28,200 | | 566,256 |
| | 85,377,992 |
GAS UTILITIES - 4.7% |
Gas Utilities - 4.7% |
AGL Resources, Inc. | 29,200 | | 900,236 |
Equitable Resources, Inc. | 71,300 | | 2,440,599 |
Nicor, Inc. | 20,000 | | 684,200 |
Questar Corp. | 82,100 | | 2,789,758 |
Southwest Gas Corp. | 2,200 | | 56,672 |
| | 6,871,465 |
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 9.0% |
Independent Power Producers & Energy Traders - 9.0% |
AES Corp. (a) | 321,000 | | 2,539,110 |
Constellation Energy Group, Inc. | 136,000 | | 3,576,800 |
Dynegy, Inc. Class A (a) | 502,300 | | 1,059,853 |
Mirant Corp. (a) | 171,100 | | 2,937,787 |
|
| Shares | | Value |
NRG Energy, Inc. (a) | 97,100 | | $ 2,268,256 |
Reliant Energy, Inc. (a) | 142,900 | | 727,361 |
| | 13,109,167 |
MULTI-UTILITIES - 26.5% |
Multi-Utilities - 26.5% |
CMS Energy Corp. | 239,800 | | 2,817,650 |
Dominion Resources, Inc. | 103,600 | | 3,644,648 |
NiSource, Inc. | 173,700 | | 1,681,416 |
OGE Energy Corp. | 99,900 | | 2,465,532 |
PG&E Corp. | 151,804 | | 5,870,261 |
Public Service Enterprise Group, Inc. | 299,380 | | 9,451,427 |
Sempra Energy | 161,000 | | 7,058,240 |
Wisconsin Energy Corp. | 122,800 | | 5,474,424 |
| | 38,463,598 |
OIL, GAS & CONSUMABLE FUELS - 0.2% |
Oil & Gas Storage & Transport - 0.2% |
Southern Union Co. | 27,300 | | 351,897 |
TOTAL COMMON STOCKS (Cost $173,219,922) | 144,535,543 |
Money Market Funds - 0.5% |
| | | |
Fidelity Cash Central Fund, 0.78% (b)
(Cost $703,937) | 703,937 | | 703,937 |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $173,923,859) | | 145,239,480 |
NET OTHER ASSETS - (0.1)% | | (211,288) |
NET ASSETS - 100% | $ 145,028,192 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
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 | $ 78,053 |
Fidelity Securities Lending Cash Central Fund | 18,651 |
Total | $ 96,704 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 145,239,480 | $ 145,239,480 | $ - | $ - |
Income Tax Information |
At July 31, 2008, the fund had a capital loss carryforward of approximately $232,998,756 of which $78,586,224 and $154,412,532 will expire on July 31, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Advisor Utilities Fund
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $173,219,922) | $ 144,535,543 | |
Fidelity Central Funds (cost $703,937) | 703,937 | |
Total Investments (cost $173,923,859) | | $ 145,239,480 |
Receivable for investments sold | | 4,406,741 |
Receivable for fund shares sold | | 82,376 |
Dividends receivable | | 261,235 |
Distributions receivable from Fidelity Central Funds | | 2,048 |
Prepaid expenses | | 1,635 |
Total assets | | 149,993,515 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,463,847 | |
Payable for fund shares redeemed | 307,510 | |
Accrued management fee | 69,467 | |
Distribution fees payable | 60,202 | |
Other affiliated payables | 40,886 | |
Other payables and accrued expenses | 23,411 | |
Total liabilities | | 4,965,323 |
| | |
Net Assets | | $ 145,028,192 |
Net Assets consist of: | | |
Paid in capital | | $ 438,297,270 |
Distributions in excess of net investment income | | (72,039) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (264,512,660) |
Net unrealized appreciation (depreciation) on investments | | (28,684,379) |
Net Assets | | $ 145,028,192 |
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($70,001,889 ÷ 4,832,738 shares) | | $ 14.48 |
| | |
Maximum offering price per share (100/94.25 of $14.48) | | $ 15.36 |
Class T:
Net Asset Value and redemption price per share ($35,904,676 ÷ 2,475,209 shares) | | $ 14.51 |
| | |
Maximum offering price per share (100/96.50 of $14.51) | | $ 15.04 |
Class B:
Net Asset Value and offering price per share ($12,004,016 ÷ 836,096 shares)A | | $ 14.36 |
| | |
Class C:
Net Asset Value and offering price per share ($23,631,177 ÷ 1,653,049 shares)A | | $ 14.30 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($3,486,434 ÷ 237,246 shares) | | $ 14.70 |
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.
Utilities
Statement of Operations
Six months ended January 31, 2009 (Unaudited) |
Investment Income | | |
Dividends | | $ 2,724,271 |
Interest | | 2,527 |
Income from Fidelity Central Funds | | 96,704 |
Total income | | 2,823,502 |
| | |
Expenses | | |
Management fee | $ 463,935 | |
Transfer agent fees | 246,247 | |
Distribution fees | 406,491 | |
Accounting and security lending fees | 32,895 | |
Custodian fees and expenses | 3,791 | |
Independent trustees' compensation | 495 | |
Registration fees | 38,100 | |
Audit | 23,185 | |
Legal | 1,840 | |
Miscellaneous | 11,093 | |
Total expenses before reductions | 1,228,072 | |
Expense reductions | (1,073) | 1,226,999 |
Net investment income (loss) | | 1,596,503 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (31,383,827) | |
Foreign currency transactions | 16,246 | |
Total net realized gain (loss) | | (31,367,581) |
Change in net unrealized appreciation (depreciation) on investment securities | | (30,376,331) |
Net gain (loss) | | (61,743,912) |
Net increase (decrease) in net assets resulting from operations | | $ (60,147,409) |
Statement of Changes in Net Assets
| Six months ended January 31, 2009 (Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,596,503 | $ 2,259,007 |
Net realized gain (loss) | (31,367,581) | 15,062,436 |
Change in net unrealized appreciation (depreciation) | (30,376,331) | (20,022,346) |
Net increase (decrease) in net assets resulting from operations | (60,147,409) | (2,700,903) |
Distributions to shareholders from net investment income | (2,162,851) | (2,837,541) |
Share transactions - net increase (decrease) | (16,066,498) | (28,461,258) |
Redemption fees | 2,130 | 9,517 |
Total increase (decrease) in net assets | (78,374,628) | (33,990,185) |
| | |
Net Assets | | |
Beginning of period | 223,402,820 | 257,393,005 |
End of period (including distributions in excess of net investment income of $72,039 and undistributed net investment income of $494,309, respectively) | $ 145,028,192 | $ 223,402,820 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 | $ 10.37 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .17 | .24 | .21 | .24 | .28 H | .10 |
Net realized and unrealized gain (loss) | (5.71) | (.38) | 3.56 | 2.06 | 3.01 | 1.72 |
Total from investment operations | (5.54) | (.14) | 3.77 | 2.30 | 3.29 | 1.82 |
Distributions from net investment income | (.26) | (.32) | (.23) | (.27) | (.21) | (.10) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.48 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 |
Total Return B,C,D | (27.40)% | (.82)% | 22.14% | 15.38% | 27.48% | 17.67% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.25% A | 1.21% | 1.27% | 1.34% | 1.39% | 1.51% |
Expenses net of fee waivers, if any | 1.25% A | 1.21% | 1.27% | 1.34% | 1.39% | 1.50% |
Expenses net of all reductions | 1.24% A | 1.21% | 1.26% | 1.32% | 1.36% | 1.45% |
Net investment income (loss) | 2.21% A | 1.11% | 1.04% | 1.51% | 2.03% H | .87% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,002 | $ 105,219 | $ 94,842 | $ 40,599 | $ 29,150 | $ 21,987 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.39%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 | $ 10.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .18 | .15 | .19 | .24 H | .07 |
Net realized and unrealized gain (loss) | (5.70) | (.39) | 3.56 | 2.08 | 2.99 | 1.72 |
Total from investment operations | (5.55) | (.21) | 3.71 | 2.27 | 3.23 | 1.79 |
Distributions from net investment income | (.20) | (.24) | (.18) | (.19) | (.17) | (.08) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.51 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 |
Total Return B,C,D | (27.42)% | (1.11)% | 21.74% | 15.20% | 27.03% | 17.42% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.51% A | 1.47% | 1.54% | 1.60% | 1.67% | 1.79% |
Expenses net of fee waivers, if any | 1.51% A | 1.47% | 1.54% | 1.60% | 1.67% | 1.75% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.54% | 1.58% | 1.64% | 1.70% |
Net investment income (loss) | 1.92% A | .84% | .76% | 1.25% | 1.76% H | .62% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,905 | $ 54,346 | $ 62,592 | $ 52,128 | $ 55,683 | $ 53,255 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.12%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Class B
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 | $ 10.15 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .11 | .08 | .05 | .12 | .17 H | .01 |
Net realized and unrealized gain (loss) | (5.63) | (.39) | 3.52 | 2.03 | 2.95 | 1.69 |
Total from investment operations | (5.52) | (.31) | 3.57 | 2.15 | 3.12 | 1.70 |
Distributions from net investment income | (.13) | (.08) | (.07) | (.08) | (.11) | (.03) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.36 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 |
Total Return B,C,D | (27.60)% | (1.59)% | 21.18% | 14.57% | 26.51% | 16.79% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.99% A | 1.96% | 2.04% | 2.09% | 2.14% | 2.25% |
Expenses net of fee waivers, if any | 1.99% A | 1.96% | 2.04% | 2.09% | 2.14% | 2.25% |
Expenses net of all reductions | 1.99% A | 1.95% | 2.03% | 2.06% | 2.11% | 2.20% |
Net investment income (loss) | 1.46% A | .36% | .27% | .76% | 1.28% H | .12% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 12,004 | $ 20,747 | $ 43,845 | $ 65,959 | $ 82,577 | $ 84,742 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .64%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 | $ 10.16 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .11 | .08 | .06 | .13 | .18 H | .02 |
Net realized and unrealized gain (loss) | (5.61) | (.39) | 3.51 | 2.04 | 2.94 | 1.70 |
Total from investment operations | (5.50) | (.31) | 3.57 | 2.17 | 3.12 | 1.72 |
Distributions from net investment income | (.13) | (.14) | (.10) | (.10) | (.12) | (.04) |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.30 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 |
Total Return B,C,D | (27.60)% | (1.58)% | 21.23% | 14.72% | 26.48% | 16.98% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.99% A | 1.95% | 1.99% | 2.02% | 2.07% | 2.17% |
Expenses net of fee waivers, if any | 1.99% A | 1.95% | 1.99% | 2.02% | 2.07% | 2.17% |
Expenses net of all reductions | 1.99% A | 1.95% | 1.99% | 2.00% | 2.04% | 2.12% |
Net investment income (loss) | 1.46% A | .36% | .32% | .83% | 1.36% H | .21% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,631 | $ 37,387 | $ 43,292 | $ 32,823 | $ 34,827 | $ 35,038 |
Portfolio turnover rate G | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .72%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 | $ 10.47 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .20 | .31 | .29 | .30 | .33 G | .15 |
Net realized and unrealized gain (loss) | (5.79) | (.38) | 3.58 | 2.10 | 3.03 | 1.73 |
Total from investment operations | (5.59) | (.07) | 3.87 | 2.40 | 3.36 | 1.88 |
Distributions from net investment income | (.23) | (.36) | (.30) | (.33) | (.25) | (.15) |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 14.70 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 |
Total Return B,C | (27.25)% | (.49)% | 22.54% | 15.95% | 27.88% | 18.14% |
Ratios to Average Net Assets E,H | | | | | | |
Expenses before reductions | .99% A | .91% | .92% | .94% | .99% | 1.09% |
Expenses net of fee waivers, if any | .99% A | .91% | .92% | .94% | .99% | 1.09% |
Expenses net of all reductions | .99% A | .90% | .92% | .92% | .96% | 1.04% |
Net investment income (loss) | 2.46% A | 1.41% | 1.39% | 1.91% | 2.44% G | 1.29% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 3,486 | $ 5,704 | $ 12,822 | $ 6,479 | $ 1,766 | $ 2,254 |
Portfolio turnover rate F | 244% A | 77% | 118% | 64% | 44% | 38% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a special dividend which amounted to $.09 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.80%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Utilities
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Utilities Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 1,605,251 |
Unrealized depreciation | (38,749,920) |
Net unrealized appreciation (depreciation) | $ (37,144,669) |
Cost for federal income tax purposes | $ 182,384,149 |
Short-term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .75% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a
Utilities
4. Operating Policies - continued
Repurchase Agreements - continued
default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $203,946,702 and $201,213,170, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | .0% | .25% | $ 98,293 | $ 5,070 |
Class T | .25% | .25% | 101,306 | - |
Class B | .75% | .25% | 72,078 | 54,058 |
Class C | .75% | .25% | 134,814 | 13,006 |
| | | $ 406,491 | $ 72,134 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 14,767 |
Class T | 2,959 |
Class B* | 17,849 |
Class C* | 2,144 |
| $ 37,719 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 116,611 | .30 |
Class T | 62,316 | .31 |
Class B | 21,418 | .30 |
Class C | 40,019 | .30 |
Institutional Class | 5,883 | .29 |
| $ 246,247 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment. The commissions paid to these affiliated firms were $4,522 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $214 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $18,651.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,012 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $61.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Utilities
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,280,064 | $ 1,513,480 |
Class T | 508,856 | 697,662 |
Class B | 107,816 | 116,029 |
Class C | 209,683 | 289,510 |
Institutional Class | 56,432 | 220,860 |
Total | $ 2,162,851 | $ 2,837,541 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 436,085 | 2,354,893 | $ 6,821,949 | $ 52,162,968 |
Reinvestment of distributions | 73,926 | 60,065 | 1,138,401 | 1,341,196 |
Shares redeemed | (866,814) | (1,798,285) | (13,572,635) | (38,893,897) |
Net increase (decrease) | (356,803) | 616,673 | $ (5,612,285) | $ 14,610,267 |
Class T | | | | |
Shares sold | 146,429 | 607,632 | $ 2,263,231 | $ 13,411,231 |
Reinvestment of distributions | 31,967 | 29,500 | 480,828 | 659,942 |
Shares redeemed | (385,196) | (977,155) | (5,993,053) | (21,255,306) |
Net increase (decrease) | (206,800) | (340,023) | $ (3,248,994) | $ (7,184,133) |
Class B | | | | |
Shares sold | 82,626 | 265,082 | $ 1,300,280 | $ 5,789,226 |
Reinvestment of distributions | 6,919 | 4,528 | 98,249 | 103,786 |
Shares redeemed | (290,211) | (1,382,108) | (4,521,376) | (29,771,682) |
Net increase (decrease) | (200,666) | (1,112,498) | $ (3,122,847) | $ (23,878,670) |
Class C | | | | |
Shares sold | 118,801 | 413,208 | $ 1,792,804 | $ 8,976,142 |
Reinvestment of distributions | 11,490 | 10,061 | 162,462 | 223,730 |
Shares redeemed | (353,253) | (671,632) | (5,397,372) | (14,302,911) |
Net increase (decrease) | (222,962) | (248,363) | $ (3,442,106) | $ (5,103,039) |
Institutional Class | | | | |
Shares sold | 36,155 | 1,285,993 | $ 558,778 | $ 28,765,131 |
Reinvestment of distributions | 2,995 | 7,559 | 45,330 | 173,189 |
Shares redeemed | (79,899) | (1,627,489) | (1,244,374) | (35,844,003) |
Net increase (decrease) | (40,749) | (333,937) | $ (640,266) | $ (6,905,683) |
Semiannual Report
Investments
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank
New York, NY
Brown Brothers Harriman & Co. †
Boston, MA
State Street Bank and Trust ††
Quincy, MA
† Custodian for Fidelity Advisor Energy Fund only.
†† Custodian for Fidelity Advisor Biotechnology Fund, Fidelity Advisor
Communications Equipment Fund, and Fidelity Advisor Electronics Fund only.
AFOCI-USAN-0309
1.789280.106
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Real Estate
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
January 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008
to January 31, 2009 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 493.70 | $ 4.71 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 493.20 | $ 5.65 |
HypotheticalA | | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 492.00 | $ 7.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 492.10 | $ 7.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 494.40 | $ 3.77 |
HypotheticalA | | $ 1,000.00 | $ 1,020.16 | $ 5.09 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 7.3 | 7.3 |
Vornado Realty Trust | 6.5 | 4.9 |
Public Storage | 6.5 | 6.4 |
Ventas, Inc. | 6.4 | 1.9 |
Highwoods Properties, Inc. (SBI) | 4.6 | 4.3 |
Digital Realty Trust, Inc. | 4.4 | 1.6 |
ProLogis Trust | 3.9 | 6.5 |
Equity Residential (SBI) | 3.8 | 2.6 |
Corporate Office Properties Trust (SBI) | 3.8 | 2.5 |
Home Properties, Inc. | 3.5 | 3.4 |
| 50.7 | |
Top Five REIT Sectors as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 18.0 | 19.0 |
REITs - Office Buildings | 17.4 | 18.9 |
REITs - Shopping Centers | 14.3 | 11.9 |
REITs - Health Care Facilities | 11.9 | 6.9 |
REITs - Industrial Buildings | 11.0 | 15.2 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2009 * | As of July 31, 2008 ** |
 | Stocks 97.2% | | | Stocks 97.2% | |
 | Short-Term
Investments and
Net Other Assets 2.8% | | | Short-Term
Investments and
Net Other Assets 2.8% | |
* Foreign investments | 1.4% | | ** Foreign investments | 2.8% | |
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 1.6% |
Health Care Facilities - 1.6% |
Capital Senior Living Corp. (a) | 11,300 | | $ 29,719 |
Emeritus Corp. (a)(d) | 253,154 | | 2,093,584 |
TOTAL HEALTH CARE FACILITIES | | 2,123,303 |
HOTELS, RESTAURANTS & LEISURE - 1.3% |
Hotels, Resorts & Cruise Lines - 1.3% |
Gaylord Entertainment Co. (a)(d) | 83,800 | | 888,280 |
Starwood Hotels & Resorts Worldwide, Inc. | 52,300 | | 790,776 |
TOTAL HOTELS, RESORTS & CRUISE LINES | | 1,679,056 |
HOUSEHOLD DURABLES - 0.6% |
Homebuilding - 0.6% |
Centex Corp. | 16,900 | | 143,819 |
D.R. Horton, Inc. | 13,800 | | 82,248 |
Meritage Homes Corp. (a) | 14,000 | | 154,280 |
Pulte Homes, Inc. | 43,600 | | 442,540 |
TOTAL HOMEBUILDING | | 822,887 |
REAL ESTATE INVESTMENT TRUSTS - 91.5% |
REITs - Apartments - 18.0% |
American Campus Communities, Inc. | 93,600 | | 2,000,232 |
Apartment Investment & Management Co. Class A | 356,747 | | 3,171,481 |
AvalonBay Communities, Inc. (d) | 57,131 | | 2,959,957 |
Camden Property Trust (SBI) (d) | 150,700 | | 3,972,452 |
Equity Residential (SBI) | 210,900 | | 5,046,837 |
Essex Property Trust, Inc. | 10,300 | | 680,315 |
Home Properties, Inc. (d) | 127,500 | | 4,575,975 |
UDR, Inc. | 118,400 | | 1,388,832 |
TOTAL REITS - APARTMENTS | | 23,796,081 |
REITs - Factory Outlets - 1.6% |
Tanger Factory Outlet Centers, Inc. (d) | 70,300 | | 2,130,090 |
REITs - Health Care Facilities - 11.9% |
HCP, Inc. (d) | 123,400 | | 2,880,156 |
Healthcare Realty Trust, Inc. | 232,709 | | 3,842,026 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Health Care Facilities - continued |
Medical Properties Trust, Inc. | 9,900 | | $ 45,045 |
Omega Healthcare Investors, Inc. | 30,300 | | 443,289 |
Ventas, Inc. | 303,700 | | 8,464,119 |
TOTAL REITS - HEALTH CARE FACILITIES | | 15,674,635 |
REITs - Hotels - 4.6% |
DiamondRock Hospitality Co. | 295,300 | | 1,210,730 |
Host Hotels & Resorts, Inc. | 233,894 | | 1,258,350 |
LaSalle Hotel Properties (SBI) (d) | 206,982 | | 1,724,160 |
Sunstone Hotel Investors, Inc. | 435,484 | | 1,876,936 |
TOTAL REITS - HOTELS | | 6,070,176 |
REITs - Industrial Buildings - 11.0% |
Duke Realty LP | 90,000 | | 828,900 |
ProLogis Trust | 510,423 | | 5,109,334 |
Public Storage | 137,918 | | 8,532,987 |
TOTAL REITS - INDUSTRIAL BUILDINGS | | 14,471,221 |
REITs - Malls - 8.3% |
CBL & Associates Properties, Inc. (d) | 192,000 | | 781,440 |
Simon Property Group, Inc. | 224,850 | | 9,664,052 |
The Macerich Co. (d) | 36,500 | | 538,010 |
TOTAL REITS - MALLS | | 10,983,502 |
REITs - Management/Investment - 4.4% |
Digital Realty Trust, Inc. | 180,400 | | 5,754,760 |
REITs - Office Buildings - 17.4% |
Alexandria Real Estate Equities, Inc. | 67,000 | | 3,975,780 |
Boston Properties, Inc. | 78,300 | | 3,390,390 |
Corporate Office Properties Trust (SBI) | 188,000 | | 4,959,440 |
Highwoods Properties, Inc. (SBI) | 269,500 | | 6,079,920 |
Kilroy Realty Corp. | 69,900 | | 1,597,914 |
SL Green Realty Corp. | 187,800 | | 2,950,338 |
TOTAL REITS - OFFICE BUILDINGS | | 22,953,782 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Shopping Centers - 14.3% |
Developers Diversified Realty Corp. (d) | 309,750 | | $ 1,486,800 |
Inland Real Estate Corp. | 290,906 | | 2,871,242 |
Kimco Realty Corp. | 159,490 | | 2,293,466 |
Regency Centers Corp. | 101,300 | | 3,575,890 |
Vornado Realty Trust | 168,450 | | 8,558,945 |
TOTAL REITS - SHOPPING CENTERS | | 18,786,343 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 120,620,590 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% |
Real Estate Operating Companies - 1.4% |
Brookfield Properties Corp. | 360,200 | | 1,941,480 |
Real Estate Services - 0.8% |
CB Richard Ellis Group, Inc. Class A (a) | 287,123 | | 1,033,643 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 2,975,123 |
TOTAL COMMON STOCKS (Cost $225,622,042) | 128,220,959 |
Money Market Funds - 14.7% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 2,836,446 | | 2,836,446 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 16,481,175 | | 16,481,175 |
TOTAL MONEY MARKET FUNDS (Cost $19,317,621) | 19,317,621 |
TOTAL INVESTMENT PORTFOLIO - 111.9% (Cost $244,939,663) | | 147,538,580 |
NET OTHER ASSETS - (11.9)% | | (15,681,440) |
NET ASSETS - 100% | $ 131,857,140 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 50,856 |
Fidelity Securities Lending Cash Central Fund | 108,198 |
Total | $ 159,054 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 147,538,580 | $ 147,538,580 | $ - | $ - |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $3,400,782 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $15,368,094) - See accompanying schedule: Unaffiliated issuers (cost $225,622,042) | $ 128,220,959 | |
Fidelity Central Funds (cost $19,317,621) | 19,317,621 | |
Total Investments (cost $244,939,663) | | $ 147,538,580 |
Cash | | 46,328 |
Foreign currency held at value (cost $21) | | 17 |
Receivable for investments sold | | 3,195,364 |
Receivable for fund shares sold | | 233,783 |
Dividends receivable | | 597,402 |
Distributions receivable from Fidelity Central Funds | | 9,829 |
Prepaid expenses | | 2,265 |
Other receivables | | 1,268 |
Total assets | | 151,624,836 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,711,927 | |
Payable for fund shares redeemed | 381,464 | |
Accrued management fee | 72,749 | |
Distribution fees payable | 46,897 | |
Other affiliated payables | 41,618 | |
Other payables and accrued expenses | 31,866 | |
Collateral on securities loaned, at value | 16,481,175 | |
Total liabilities | | 19,767,696 |
| | |
Net Assets | | $ 131,857,140 |
Net Assets consist of: | | |
Paid in capital | | $ 288,372,412 |
Distributions in excess of net investment income | | (556,401) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (58,558,259) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (97,400,612) |
Net Assets | | $ 131,857,140 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,790,236 ÷ 6,545,525 shares) | | $ 7.91 |
| | |
Maximum offering price per share (100/94.25 of $7.91) | | $ 8.39 |
Class T:
Net Asset Value and redemption price per share ($37,544,577 ÷ 4,740,486 shares) | | $ 7.92 |
| | |
Maximum offering price per share (100/96.50 of $7.92) | | $ 8.21 |
Class B:
Net Asset Value and offering price per share ($7,142,074 ÷ 908,522 shares)A | | $ 7.86 |
| | |
Class C:
Net Asset Value and offering price per share ($11,516,583 ÷ 1,465,538 shares)A | | $ 7.86 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($23,863,670 ÷ 3,001,638 shares) | | $ 7.95 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,746,265 |
Interest | | 5 |
Income from Fidelity Central Funds | | 159,054 |
Total income | | 3,905,324 |
| | |
Expenses | | |
Management fee | $ 596,798 | |
Transfer agent fees | 322,477 | |
Distribution fees | 393,603 | |
Accounting and security lending fees | 45,574 | |
Custodian fees and expenses | 14,145 | |
Independent trustees' compensation | 642 | |
Registration fees | 54,911 | |
Audit | 24,630 | |
Legal | 906 | |
Miscellaneous | 19,873 | |
Total expenses before reductions | 1,473,559 | |
Expense reductions | (13,131) | 1,460,428 |
Net investment income (loss) | | 2,444,896 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (51,633,363) | |
Foreign currency transactions | (3,289) | |
Total net realized gain (loss) | | (51,636,652) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (101,279,136) | |
Assets and liabilities in foreign currencies | 471 | |
Total change in net unrealized appreciation (depreciation) | | (101,278,665) |
Net gain (loss) | | (152,915,317) |
Net increase (decrease) in net assets resulting from operations | | $ (150,470,421) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
January 31, 2009
(Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,444,896 | $ 4,557,574 |
Net realized gain (loss) | (51,636,652) | (4,638,718) |
Change in net unrealized appreciation (depreciation) | (101,278,665) | (14,457,064) |
Net increase (decrease) in net assets resulting from operations | (150,470,421) | (14,538,208) |
Distributions to shareholders from net investment income | (3,777,762) | (3,429,631) |
Distributions to shareholders from net realized gain | (564,327) | (15,771,090) |
Total distributions | (4,342,089) | (19,200,721) |
Share transactions - net increase (decrease) | (19,352,957) | 47,082,496 |
Total increase (decrease) in net assets | (174,165,467) | 13,343,567 |
| | |
Net Assets | | |
Beginning of period | 306,022,607 | 292,679,040 |
End of period (including distributions in excess of net investment income of $556,401 and undistributed net investment income of $776,465, respectively) | $ 131,857,140 | $ 306,022,607 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 | $ 11.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .30 | .18 | .29 | .31 | .27 |
Net realized and unrealized gain (loss) | (8.36) | (1.24) | (.17) | 2.85 | 5.52 | 2.03 |
Total from investment operations | (8.22) | (.94) | .01 | 3.14 | 5.83 | 2.30 |
Distributions from net investment income | (.23) | (.26) | (.18) | (.23) | (.29) | (.30) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.26) | (1.34) I | (1.68) | (1.03) | (.82) | (.41) |
Net asset value, end of period | $ 7.91 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 |
Total Return B, C, D | (50.63)% | (5.66)% | (.65)% | 18.32% | 45.48% | 20.59% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.26% A | 1.22% | 1.25% | 1.29% | 1.31% | 1.54% |
Expenses net of fee waivers, if any | 1.25% A | 1.22% | 1.25% | 1.25% | 1.28% | 1.54% |
Expenses net of all reductions | 1.25% A | 1.21% | 1.25% | 1.24% | 1.25% | 1.52% |
Net investment income (loss) | 2.42% A | 1.71% | .81% | 1.59% | 1.98% | 2.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,790 | $ 109,442 | $ 117,831 | $ 85,000 | $ 53,097 | $ 22,273 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.341 per share is comprised of distributions from net investment income of $.256 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 | $ 11.32 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .26 | .12 | .24 | .26 | .23 |
Net realized and unrealized gain (loss) | (8.37) | (1.24) | (.16) | 2.84 | 5.53 | 2.02 |
Total from investment operations | (8.24) | (.98) | (.04) | 3.08 | 5.79 | 2.25 |
Distributions from net investment income | (.21) | (.17) | (.13) | (.20) | (.24) | (.25) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.24) | (1.26) I | (1.63) | (1.00) | (.77) | (.36) |
Net asset value, end of period | $ 7.92 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 |
Total Return B, C, D | (50.68)% | (5.88)% | (.89)% | 17.98% | 45.12% | 20.12% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.53% A | 1.47% | 1.50% | 1.55% | 1.61% | 1.86% |
Expenses net of fee waivers, if any | 1.50% A | 1.47% | 1.50% | 1.50% | 1.57% | 1.85% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.49% | 1.49% | 1.54% | 1.83% |
Net investment income (loss) | 2.17% A | 1.45% | .57% | 1.34% | 1.70% | 1.80% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 37,545 | $ 81,938 | $ 100,621 | $ 91,224 | $ 66,303 | $ 26,037 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.258 per share is comprised of distributions from net investment income of $.173 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 | $ 11.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 | .17 | .01 | .15 | .18 | .16 |
Net realized and unrealized gain (loss) | (8.30) | (1.23) | (.16) | 2.83 | 5.50 | 2.04 |
Total from investment operations | (8.20) | (1.06) | (.15) | 2.98 | 5.68 | 2.20 |
Distributions from net investment income | (.17) | (.10) | (.05) | (.15) | (.17) | (.20) |
Distributions from net realized gain | (.03) | (1.09) | (1.48) | (.80) | (.53) | (.11) |
Total distributions | (.20) | (1.19) I | (1.53) | (.95) | (.70) | (.31) |
Net asset value, end of period | $ 7.86 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 |
Total Return B, C, D | (50.80)% | (6.37)% | (1.45)% | 17.42% | 44.31% | 19.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.03% A | 1.96% | 2.02% | 2.05% | 2.10% | 2.33% |
Expenses net of fee waivers, if any | 2.00% A | 1.96% | 2.00% | 2.00% | 2.07% | 2.33% |
Expenses net of all reductions | 2.00% A | 1.96% | 2.00% | 1.98% | 2.03% | 2.31% |
Net investment income (loss) | 1.67% A | .96% | .07% | .84% | 1.20% | 1.31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,142 | $ 16,879 | $ 25,114 | $ 27,397 | $ 26,349 | $ 12,910 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.187 per share is comprised of distributions from net investment income of $.102 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 | $ 11.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 | .17 | .01 | .15 | .19 | .17 |
Net realized and unrealized gain (loss) | (8.30) | (1.23) | (.16) | 2.84 | 5.50 | 2.03 |
Total from investment operations | (8.20) | (1.06) | (.15) | 2.99 | 5.69 | 2.20 |
Distributions from net investment income | (.17) | (.11) | (.05) | (.15) | (.17) | (.20) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.20) | (1.19) I | (1.55) | (.95) | (.70) | (.31) |
Net asset value, end of period | $ 7.86 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 |
Total Return B, C, D | (50.79)% | (6.35)% | (1.45)% | 17.46% | 44.38% | 19.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.00% A | 1.96% | 2.01% | 2.05% | 2.09% | 2.29% |
Expenses net of fee waivers, if any | 2.00% A | 1.96% | 2.00% | 2.00% | 2.05% | 2.29% |
Expenses net of all reductions | 2.00% A | 1.96% | 2.00% | 1.98% | 2.02% | 2.27% |
Net investment income (loss) | 1.67% A | .96% | .06% | .84% | 1.22% | 1.35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,517 | $ 24,984 | $ 36,854 | $ 36,669 | $ 29,410 | $ 13,671 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.191 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 | $ 11.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .17 | .34 | .24 | .35 | .36 | .32 |
Net realized and unrealized gain (loss) | (8.42) | (1.23) | (.17) | 2.85 | 5.56 | 2.04 |
Total from investment operations | (8.25) | (.89) | .07 | 3.20 | 5.92 | 2.36 |
Distributions from net investment income | (.24) | (.35) | (.24) | (.26) | (.34) | (.32) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.27) | (1.44)H | (1.74) | (1.06) | (.87) | (.43) |
Net asset value, end of period | $ 7.95 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 |
Total Return B, C | (50.56)% | (5.39)% | (.37)% | 18.61% | 46.05% | 21.11% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.00% A | .95% | .98% | .94% | .91% | 1.12% |
Expenses net of fee waivers, if any | 1.00% A | .95% | .98% | .94% | .91% | 1.12% |
Expenses net of all reductions | .99% A | .95% | .97% | .92% | .88% | 1.10% |
Net investment income (loss) | 2.68% A | 1.97% | 1.09% | 1.90% | 2.35% | 2.53% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,864 | $ 72,780 | $ 12,259 | $ 7,152 | $ 4,162 | $ 2,478 |
Portfolio turnover rate F | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $1.437 per share is comprised of distributions from net investment income of $.352 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 2,830,925 |
Unrealized depreciation | (106,570,550) |
Net unrealized appreciation (depreciation) | $ (103,739,625) |
Cost for federal income tax purposes | $ 251,278,205 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $90,435,665 and $103,509,160, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | .00% | .25% | $ 99,860 | $ 3,780 |
Class T | .25% | .25% | 145,912 | - |
Class B | .75% | .25% | 58,633 | 43,975 |
Class C | .75% | .25% | 89,198 | 12,785 |
| | | $ 393,603 | $ 60,540 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 17,550 |
Class T | 4,757 |
Class B* | 14,679 |
Class C* | 2,122 |
| $ 39,108 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 121,277 | .30 |
Class T | 92,542 | .32 |
Class B | 19,076 | .32 |
Class C | 26,590 | .30 |
Institutional Class | 62,992 | .28 |
| $ 322,477 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,462 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $279 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
8. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $108,198.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 3,910 |
Class T | 1.50% | 6,330 |
Class B | 2.00% | 1,517 |
| | $ 11,757 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,374 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,534,770 | $ 1,522,432 |
Class T | 1,023,419 | 826,361 |
Class B | 161,788 | 112,289 |
Class C | 250,825 | 169,086 |
Institutional Class | 806,960 | 799,463 |
Total | $ 3,777,762 | $ 3,429,631 |
From net realized gain | | |
Class A | $ 204,885 | $ 6,384,487 |
Class T | 150,062 | 5,512,568 |
Class B | 31,214 | 1,322,405 |
Class C | 46,270 | 1,826,579 |
Institutional Class | 131,896 | 725,051 |
Total | $ 564,327 | $ 15,771,090 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,450,961 | 3,084,736 | $ 17,062,264 | $ 53,959,357 |
Reinvestment of distributions | 147,793 | 414,796 | 1,671,456 | 7,549,476 |
Shares redeemed | (1,730,172) | (3,133,970) | (17,670,515) | (55,521,726) |
Net increase (decrease) | (131,418) | 365,562 | $ 1,063,205 | $ 5,987,107 |
Class T | | | | |
Shares sold | 864,623 | 1,683,774 | $ 9,665,657 | $ 29,339,323 |
Reinvestment of distributions | 95,481 | 335,605 | 1,087,597 | 6,128,515 |
Shares redeemed | (1,215,825) | (2,420,642) | (13,201,511) | (42,866,254) |
Net increase (decrease) | (255,721) | (401,263) | $ (2,448,257) | $ (7,398,416) |
Class B | | | | |
Shares sold | 72,489 | 196,548 | $ 920,136 | $ 3,413,355 |
Reinvestment of distributions | 15,686 | 70,595 | 174,954 | 1,284,671 |
Shares redeemed | (217,435) | (586,018) | (2,401,534) | (10,346,901) |
Net increase (decrease) | (129,260) | (318,875) | $ (1,306,444) | $ (5,648,875) |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class C | | | | |
Shares sold | 242,509 | 442,357 | $ 2,901,985 | $ 7,808,076 |
Reinvestment of distributions | 24,087 | 97,814 | 266,115 | 1,779,201 |
Shares redeemed | (337,551) | (994,473) | (3,659,130) | (17,624,265) |
Net increase (decrease) | (70,955) | (454,302) | $ (491,030) | $ (8,036,988) |
Institutional Class | | | | |
Shares sold | 2,795,839 | 6,261,402 | $ 26,752,474 | $ 103,513,317 |
Reinvestment of distributions | 32,306 | 48,936 | 399,341 | 883,388 |
Shares redeemed | (4,246,311) | (2,542,604) | (43,322,246) | (42,217,037) |
Net increase (decrease) | (1,418,166) | 3,767,734 | $ (16,170,431) | $ 62,179,668 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
ARE-USAN-0309
1.789730.106
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2008 to January 31, 2009).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
August 1, 2008 | Ending
Account Value
January 31, 2009 | Expenses Paid
During Period*
August 1, 2008
to January 31, 2009 |
Class A | 1.25% | | | |
Actual | | $ 1,000.00 | $ 493.70 | $ 4.71 |
HypotheticalA | | $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.50% | | | |
Actual | | $ 1,000.00 | $ 493.20 | $ 5.65 |
HypotheticalA | | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.00% | | | |
Actual | | $ 1,000.00 | $ 492.00 | $ 7.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% | | | |
Actual | | $ 1,000.00 | $ 492.10 | $ 7.52 |
HypotheticalA | | $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Institutional Class | 1.00% | | | |
Actual | | $ 1,000.00 | $ 494.40 | $ 3.77 |
HypotheticalA | | $ 1,000.00 | $ 1,020.16 | $ 5.09 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Simon Property Group, Inc. | 7.3 | 7.3 |
Vornado Realty Trust | 6.5 | 4.9 |
Public Storage | 6.5 | 6.4 |
Ventas, Inc. | 6.4 | 1.9 |
Highwoods Properties, Inc. (SBI) | 4.6 | 4.3 |
Digital Realty Trust, Inc. | 4.4 | 1.6 |
ProLogis Trust | 3.9 | 6.5 |
Equity Residential (SBI) | 3.8 | 2.6 |
Corporate Office Properties Trust (SBI) | 3.8 | 2.5 |
Home Properties, Inc. | 3.5 | 3.4 |
| 50.7 | |
Top Five REIT Sectors as of January 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
REITs - Apartments | 18.0 | 19.0 |
REITs - Office Buildings | 17.4 | 18.9 |
REITs - Shopping Centers | 14.3 | 11.9 |
REITs - Health Care Facilities | 11.9 | 6.9 |
REITs - Industrial Buildings | 11.0 | 15.2 |
Asset Allocation (% of fund's net assets) |
As of January 31, 2009 * | As of July 31, 2008 ** |
| Stocks 97.2% | | | Stocks 97.2% | |
| Short-Term
Investments and
Net Other Assets 2.8% | | | Short-Term
Investments and
Net Other Assets 2.8% | |
* Foreign investments | 1.4% | | ** Foreign investments | 2.8% | |
Semiannual Report
Investments January 31, 2009 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
| Shares | | Value |
HEALTH CARE PROVIDERS & SERVICES - 1.6% |
Health Care Facilities - 1.6% |
Capital Senior Living Corp. (a) | 11,300 | | $ 29,719 |
Emeritus Corp. (a)(d) | 253,154 | | 2,093,584 |
TOTAL HEALTH CARE FACILITIES | | 2,123,303 |
HOTELS, RESTAURANTS & LEISURE - 1.3% |
Hotels, Resorts & Cruise Lines - 1.3% |
Gaylord Entertainment Co. (a)(d) | 83,800 | | 888,280 |
Starwood Hotels & Resorts Worldwide, Inc. | 52,300 | | 790,776 |
TOTAL HOTELS, RESORTS & CRUISE LINES | | 1,679,056 |
HOUSEHOLD DURABLES - 0.6% |
Homebuilding - 0.6% |
Centex Corp. | 16,900 | | 143,819 |
D.R. Horton, Inc. | 13,800 | | 82,248 |
Meritage Homes Corp. (a) | 14,000 | | 154,280 |
Pulte Homes, Inc. | 43,600 | | 442,540 |
TOTAL HOMEBUILDING | | 822,887 |
REAL ESTATE INVESTMENT TRUSTS - 91.5% |
REITs - Apartments - 18.0% |
American Campus Communities, Inc. | 93,600 | | 2,000,232 |
Apartment Investment & Management Co. Class A | 356,747 | | 3,171,481 |
AvalonBay Communities, Inc. (d) | 57,131 | | 2,959,957 |
Camden Property Trust (SBI) (d) | 150,700 | | 3,972,452 |
Equity Residential (SBI) | 210,900 | | 5,046,837 |
Essex Property Trust, Inc. | 10,300 | | 680,315 |
Home Properties, Inc. (d) | 127,500 | | 4,575,975 |
UDR, Inc. | 118,400 | | 1,388,832 |
TOTAL REITS - APARTMENTS | | 23,796,081 |
REITs - Factory Outlets - 1.6% |
Tanger Factory Outlet Centers, Inc. (d) | 70,300 | | 2,130,090 |
REITs - Health Care Facilities - 11.9% |
HCP, Inc. (d) | 123,400 | | 2,880,156 |
Healthcare Realty Trust, Inc. | 232,709 | | 3,842,026 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Health Care Facilities - continued |
Medical Properties Trust, Inc. | 9,900 | | $ 45,045 |
Omega Healthcare Investors, Inc. | 30,300 | | 443,289 |
Ventas, Inc. | 303,700 | | 8,464,119 |
TOTAL REITS - HEALTH CARE FACILITIES | | 15,674,635 |
REITs - Hotels - 4.6% |
DiamondRock Hospitality Co. | 295,300 | | 1,210,730 |
Host Hotels & Resorts, Inc. | 233,894 | | 1,258,350 |
LaSalle Hotel Properties (SBI) (d) | 206,982 | | 1,724,160 |
Sunstone Hotel Investors, Inc. | 435,484 | | 1,876,936 |
TOTAL REITS - HOTELS | | 6,070,176 |
REITs - Industrial Buildings - 11.0% |
Duke Realty LP | 90,000 | | 828,900 |
ProLogis Trust | 510,423 | | 5,109,334 |
Public Storage | 137,918 | | 8,532,987 |
TOTAL REITS - INDUSTRIAL BUILDINGS | | 14,471,221 |
REITs - Malls - 8.3% |
CBL & Associates Properties, Inc. (d) | 192,000 | | 781,440 |
Simon Property Group, Inc. | 224,850 | | 9,664,052 |
The Macerich Co. (d) | 36,500 | | 538,010 |
TOTAL REITS - MALLS | | 10,983,502 |
REITs - Management/Investment - 4.4% |
Digital Realty Trust, Inc. | 180,400 | | 5,754,760 |
REITs - Office Buildings - 17.4% |
Alexandria Real Estate Equities, Inc. | 67,000 | | 3,975,780 |
Boston Properties, Inc. | 78,300 | | 3,390,390 |
Corporate Office Properties Trust (SBI) | 188,000 | | 4,959,440 |
Highwoods Properties, Inc. (SBI) | 269,500 | | 6,079,920 |
Kilroy Realty Corp. | 69,900 | | 1,597,914 |
SL Green Realty Corp. | 187,800 | | 2,950,338 |
TOTAL REITS - OFFICE BUILDINGS | | 22,953,782 |
Common Stocks - continued |
| Shares | | Value |
REAL ESTATE INVESTMENT TRUSTS - CONTINUED |
REITs - Shopping Centers - 14.3% |
Developers Diversified Realty Corp. (d) | 309,750 | | $ 1,486,800 |
Inland Real Estate Corp. | 290,906 | | 2,871,242 |
Kimco Realty Corp. | 159,490 | | 2,293,466 |
Regency Centers Corp. | 101,300 | | 3,575,890 |
Vornado Realty Trust | 168,450 | | 8,558,945 |
TOTAL REITS - SHOPPING CENTERS | | 18,786,343 |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | 120,620,590 |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% |
Real Estate Operating Companies - 1.4% |
Brookfield Properties Corp. | 360,200 | | 1,941,480 |
Real Estate Services - 0.8% |
CB Richard Ellis Group, Inc. Class A (a) | 287,123 | | 1,033,643 |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | 2,975,123 |
TOTAL COMMON STOCKS (Cost $225,622,042) | 128,220,959 |
Money Market Funds - 14.7% |
| | | |
Fidelity Cash Central Fund, 0.78% (b) | 2,836,446 | | 2,836,446 |
Fidelity Securities Lending Cash Central Fund, 0.71% (b)(c) | 16,481,175 | | 16,481,175 |
TOTAL MONEY MARKET FUNDS (Cost $19,317,621) | 19,317,621 |
TOTAL INVESTMENT PORTFOLIO - 111.9% (Cost $244,939,663) | | 147,538,580 |
NET OTHER ASSETS - (11.9)% | | (15,681,440) |
NET ASSETS - 100% | $ 131,857,140 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 50,856 |
Fidelity Securities Lending Cash Central Fund | 108,198 |
Total | $ 159,054 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 147,538,580 | $ 147,538,580 | $ - | $ - |
Income Tax Information |
The fund intends to elect to defer to its fiscal year ending July 31, 2009 approximately $3,400,782 of losses recognized during the period November 1, 2007 to July 31, 2008. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| January 31, 2009 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $15,368,094) - See accompanying schedule: Unaffiliated issuers (cost $225,622,042) | $ 128,220,959 | |
Fidelity Central Funds (cost $19,317,621) | 19,317,621 | |
Total Investments (cost $244,939,663) | | $ 147,538,580 |
Cash | | 46,328 |
Foreign currency held at value (cost $21) | | 17 |
Receivable for investments sold | | 3,195,364 |
Receivable for fund shares sold | | 233,783 |
Dividends receivable | | 597,402 |
Distributions receivable from Fidelity Central Funds | | 9,829 |
Prepaid expenses | | 2,265 |
Other receivables | | 1,268 |
Total assets | | 151,624,836 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,711,927 | |
Payable for fund shares redeemed | 381,464 | |
Accrued management fee | 72,749 | |
Distribution fees payable | 46,897 | |
Other affiliated payables | 41,618 | |
Other payables and accrued expenses | 31,866 | |
Collateral on securities loaned, at value | 16,481,175 | |
Total liabilities | | 19,767,696 |
| | |
Net Assets | | $ 131,857,140 |
Net Assets consist of: | | |
Paid in capital | | $ 288,372,412 |
Distributions in excess of net investment income | | (556,401) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (58,558,259) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (97,400,612) |
Net Assets | | $ 131,857,140 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| January 31, 2009 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($51,790,236 ÷ 6,545,525 shares) | | $ 7.91 |
| | |
Maximum offering price per share (100/94.25 of $7.91) | | $ 8.39 |
Class T:
Net Asset Value and redemption price per share ($37,544,577 ÷ 4,740,486 shares) | | $ 7.92 |
| | |
Maximum offering price per share (100/96.50 of $7.92) | | $ 8.21 |
Class B:
Net Asset Value and offering price per share ($7,142,074 ÷ 908,522 shares)A | | $ 7.86 |
| | |
Class C:
Net Asset Value and offering price per share ($11,516,583 ÷ 1,465,538 shares)A | | $ 7.86 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($23,863,670 ÷ 3,001,638 shares) | | $ 7.95 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended January 31, 2009 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,746,265 |
Interest | | 5 |
Income from Fidelity Central Funds | | 159,054 |
Total income | | 3,905,324 |
| | |
Expenses | | |
Management fee | $ 596,798 | |
Transfer agent fees | 322,477 | |
Distribution fees | 393,603 | |
Accounting and security lending fees | 45,574 | |
Custodian fees and expenses | 14,145 | |
Independent trustees' compensation | 642 | |
Registration fees | 54,911 | |
Audit | 24,630 | |
Legal | 906 | |
Miscellaneous | 19,873 | |
Total expenses before reductions | 1,473,559 | |
Expense reductions | (13,131) | 1,460,428 |
Net investment income (loss) | | 2,444,896 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (51,633,363) | |
Foreign currency transactions | (3,289) | |
Total net realized gain (loss) | | (51,636,652) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (101,279,136) | |
Assets and liabilities in foreign currencies | 471 | |
Total change in net unrealized appreciation (depreciation) | | (101,278,665) |
Net gain (loss) | | (152,915,317) |
Net increase (decrease) in net assets resulting from operations | | $ (150,470,421) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
January 31, 2009
(Unaudited) | Year ended
July 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,444,896 | $ 4,557,574 |
Net realized gain (loss) | (51,636,652) | (4,638,718) |
Change in net unrealized appreciation (depreciation) | (101,278,665) | (14,457,064) |
Net increase (decrease) in net assets resulting from operations | (150,470,421) | (14,538,208) |
Distributions to shareholders from net investment income | (3,777,762) | (3,429,631) |
Distributions to shareholders from net realized gain | (564,327) | (15,771,090) |
Total distributions | (4,342,089) | (19,200,721) |
Share transactions - net increase (decrease) | (19,352,957) | 47,082,496 |
Total increase (decrease) in net assets | (174,165,467) | 13,343,567 |
| | |
Net Assets | | |
Beginning of period | 306,022,607 | 292,679,040 |
End of period (including distributions in excess of net investment income of $556,401 and undistributed net investment income of $776,465, respectively) | $ 131,857,140 | $ 306,022,607 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 | $ 11.33 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 | .30 | .18 | .29 | .31 | .27 |
Net realized and unrealized gain (loss) | (8.36) | (1.24) | (.17) | 2.85 | 5.52 | 2.03 |
Total from investment operations | (8.22) | (.94) | .01 | 3.14 | 5.83 | 2.30 |
Distributions from net investment income | (.23) | (.26) | (.18) | (.23) | (.29) | (.30) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.26) | (1.34) I | (1.68) | (1.03) | (.82) | (.41) |
Net asset value, end of period | $ 7.91 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 |
Total Return B, C, D | (50.63)% | (5.66)% | (.65)% | 18.32% | 45.48% | 20.59% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.26% A | 1.22% | 1.25% | 1.29% | 1.31% | 1.54% |
Expenses net of fee waivers, if any | 1.25% A | 1.22% | 1.25% | 1.25% | 1.28% | 1.54% |
Expenses net of all reductions | 1.25% A | 1.21% | 1.25% | 1.24% | 1.25% | 1.52% |
Net investment income (loss) | 2.42% A | 1.71% | .81% | 1.59% | 1.98% | 2.10% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 51,790 | $ 109,442 | $ 117,831 | $ 85,000 | $ 53,097 | $ 22,273 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.341 per share is comprised of distributions from net investment income of $.256 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 | $ 11.32 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .13 | .26 | .12 | .24 | .26 | .23 |
Net realized and unrealized gain (loss) | (8.37) | (1.24) | (.16) | 2.84 | 5.53 | 2.02 |
Total from investment operations | (8.24) | (.98) | (.04) | 3.08 | 5.79 | 2.25 |
Distributions from net investment income | (.21) | (.17) | (.13) | (.20) | (.24) | (.25) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.24) | (1.26) I | (1.63) | (1.00) | (.77) | (.36) |
Net asset value, end of period | $ 7.92 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 |
Total Return B, C, D | (50.68)% | (5.88)% | (.89)% | 17.98% | 45.12% | 20.12% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.53% A | 1.47% | 1.50% | 1.55% | 1.61% | 1.86% |
Expenses net of fee waivers, if any | 1.50% A | 1.47% | 1.50% | 1.50% | 1.57% | 1.85% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.49% | 1.49% | 1.54% | 1.83% |
Net investment income (loss) | 2.17% A | 1.45% | .57% | 1.34% | 1.70% | 1.80% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 37,545 | $ 81,938 | $ 100,621 | $ 91,224 | $ 66,303 | $ 26,037 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.258 per share is comprised of distributions from net investment income of $.173 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 | $ 11.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 | .17 | .01 | .15 | .18 | .16 |
Net realized and unrealized gain (loss) | (8.30) | (1.23) | (.16) | 2.83 | 5.50 | 2.04 |
Total from investment operations | (8.20) | (1.06) | (.15) | 2.98 | 5.68 | 2.20 |
Distributions from net investment income | (.17) | (.10) | (.05) | (.15) | (.17) | (.20) |
Distributions from net realized gain | (.03) | (1.09) | (1.48) | (.80) | (.53) | (.11) |
Total distributions | (.20) | (1.19) I | (1.53) | (.95) | (.70) | (.31) |
Net asset value, end of period | $ 7.86 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 |
Total Return B, C, D | (50.80)% | (6.37)% | (1.45)% | 17.42% | 44.31% | 19.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.03% A | 1.96% | 2.02% | 2.05% | 2.10% | 2.33% |
Expenses net of fee waivers, if any | 2.00% A | 1.96% | 2.00% | 2.00% | 2.07% | 2.33% |
Expenses net of all reductions | 2.00% A | 1.96% | 2.00% | 1.98% | 2.03% | 2.31% |
Net investment income (loss) | 1.67% A | .96% | .07% | .84% | 1.20% | 1.31% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 7,142 | $ 16,879 | $ 25,114 | $ 27,397 | $ 26,349 | $ 12,910 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.187 per share is comprised of distributions from net investment income of $.102 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 | $ 11.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .10 | .17 | .01 | .15 | .19 | .17 |
Net realized and unrealized gain (loss) | (8.30) | (1.23) | (.16) | 2.84 | 5.50 | 2.03 |
Total from investment operations | (8.20) | (1.06) | (.15) | 2.99 | 5.69 | 2.20 |
Distributions from net investment income | (.17) | (.11) | (.05) | (.15) | (.17) | (.20) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.20) | (1.19) I | (1.55) | (.95) | (.70) | (.31) |
Net asset value, end of period | $ 7.86 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 |
Total Return B, C, D | (50.79)% | (6.35)% | (1.45)% | 17.46% | 44.38% | 19.67% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.00% A | 1.96% | 2.01% | 2.05% | 2.09% | 2.29% |
Expenses net of fee waivers, if any | 2.00% A | 1.96% | 2.00% | 2.00% | 2.05% | 2.29% |
Expenses net of all reductions | 2.00% A | 1.96% | 2.00% | 1.98% | 2.02% | 2.27% |
Net investment income (loss) | 1.67% A | .96% | .06% | .84% | 1.22% | 1.35% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,517 | $ 24,984 | $ 36,854 | $ 36,669 | $ 29,410 | $ 13,671 |
Portfolio turnover rate G | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $1.191 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
January 31, 2009 | Years ended July 31, |
| (Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 | $ 11.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .17 | .34 | .24 | .35 | .36 | .32 |
Net realized and unrealized gain (loss) | (8.42) | (1.23) | (.17) | 2.85 | 5.56 | 2.04 |
Total from investment operations | (8.25) | (.89) | .07 | 3.20 | 5.92 | 2.36 |
Distributions from net investment income | (.24) | (.35) | (.24) | (.26) | (.34) | (.32) |
Distributions from net realized gain | (.03) | (1.09) | (1.50) | (.80) | (.53) | (.11) |
Total distributions | (.27) | (1.44)H | (1.74) | (1.06) | (.87) | (.43) |
Net asset value, end of period | $ 7.95 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 |
Total Return B, C | (50.56)% | (5.39)% | (.37)% | 18.61% | 46.05% | 21.11% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.00% A | .95% | .98% | .94% | .91% | 1.12% |
Expenses net of fee waivers, if any | 1.00% A | .95% | .98% | .94% | .91% | 1.12% |
Expenses net of all reductions | .99% A | .95% | .97% | .92% | .88% | 1.10% |
Net investment income (loss) | 2.68% A | 1.97% | 1.09% | 1.90% | 2.35% | 2.53% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 23,864 | $ 72,780 | $ 12,259 | $ 7,152 | $ 4,162 | $ 2,478 |
Portfolio turnover rate F | 84% A | 86% | 84% | 65% | 62% | 52% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $1.437 per share is comprised of distributions from net investment income of $.352 and distributions from net realized gain of $1.085 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2009 (Unaudited)
1. Organization.
Fidelity Advisor Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of January 31, 2009, for the Fund's investments is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 2,830,925 |
Unrealized depreciation | (106,570,550) |
Net unrealized appreciation (depreciation) | $ (103,739,625) |
Cost for federal income tax purposes | $ 251,278,205 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $90,435,665 and $103,509,160, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | .00% | .25% | $ 99,860 | $ 3,780 |
Class T | .25% | .25% | 145,912 | - |
Class B | .75% | .25% | 58,633 | 43,975 |
Class C | .75% | .25% | 89,198 | 12,785 |
| | | $ 393,603 | $ 60,540 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 17,550 |
Class T | 4,757 |
Class B* | 14,679 |
Class C* | 2,122 |
| $ 39,108 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class A | $ 121,277 | .30 |
Class T | 92,542 | .32 |
Class B | 19,076 | .32 |
Class C | 26,590 | .30 |
Institutional Class | 62,992 | .28 |
| $ 322,477 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,462 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $279 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation
Semiannual Report
8. Security Lending - continued
to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $108,198.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.25% | $ 3,910 |
Class T | 1.50% | 6,330 |
Class B | 2.00% | 1,517 |
| | $ 11,757 |
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $1,374 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
From net investment income | | |
Class A | $ 1,534,770 | $ 1,522,432 |
Class T | 1,023,419 | 826,361 |
Class B | 161,788 | 112,289 |
Class C | 250,825 | 169,086 |
Institutional Class | 806,960 | 799,463 |
Total | $ 3,777,762 | $ 3,429,631 |
From net realized gain | | |
Class A | $ 204,885 | $ 6,384,487 |
Class T | 150,062 | 5,512,568 |
Class B | 31,214 | 1,322,405 |
Class C | 46,270 | 1,826,579 |
Institutional Class | 131,896 | 725,051 |
Total | $ 564,327 | $ 15,771,090 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
January 31, 2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class A | | | | |
Shares sold | 1,450,961 | 3,084,736 | $ 17,062,264 | $ 53,959,357 |
Reinvestment of distributions | 147,793 | 414,796 | 1,671,456 | 7,549,476 |
Shares redeemed | (1,730,172) | (3,133,970) | (17,670,515) | (55,521,726) |
Net increase (decrease) | (131,418) | 365,562 | $ 1,063,205 | $ 5,987,107 |
Class T | | | | |
Shares sold | 864,623 | 1,683,774 | $ 9,665,657 | $ 29,339,323 |
Reinvestment of distributions | 95,481 | 335,605 | 1,087,597 | 6,128,515 |
Shares redeemed | (1,215,825) | (2,420,642) | (13,201,511) | (42,866,254) |
Net increase (decrease) | (255,721) | (401,263) | $ (2,448,257) | $ (7,398,416) |
Class B | | | | |
Shares sold | 72,489 | 196,548 | $ 920,136 | $ 3,413,355 |
Reinvestment of distributions | 15,686 | 70,595 | 174,954 | 1,284,671 |
Shares redeemed | (217,435) | (586,018) | (2,401,534) | (10,346,901) |
Net increase (decrease) | (129,260) | (318,875) | $ (1,306,444) | $ (5,648,875) |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
January 31, 2009 | Year ended
July 31,
2008 | Six months ended
January 31,
2009 | Year ended
July 31,
2008 |
Class C | | | | |
Shares sold | 242,509 | 442,357 | $ 2,901,985 | $ 7,808,076 |
Reinvestment of distributions | 24,087 | 97,814 | 266,115 | 1,779,201 |
Shares redeemed | (337,551) | (994,473) | (3,659,130) | (17,624,265) |
Net increase (decrease) | (70,955) | (454,302) | $ (491,030) | $ (8,036,988) |
Institutional Class | | | | |
Shares sold | 2,795,839 | 6,261,402 | $ 26,752,474 | $ 103,513,317 |
Reinvestment of distributions | 32,306 | 48,936 | 399,341 | 883,388 |
Shares redeemed | (4,246,311) | (2,542,604) | (43,322,246) | (42,217,037) |
Net increase (decrease) | (1,418,166) | 3,767,734 | $ (16,170,431) | $ 62,179,668 |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
FIL Investment Advisors
FIL Investment Advisors
(U.K.) Ltd.
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
AREI-USAN-0309
1.789731.106
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series VII's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series VII's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series VII
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | April 3, 2009 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | April 3, 2009 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | April 3, 2009 |
