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, 2010 |
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, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Biotechnology | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Communications Equipment | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Consumer Discretionary | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Electronics | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Energy | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Financial Services | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Health Care | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Industrials | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Technology | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Utilities | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
|
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Advisor Biotechnology Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.40 | $ 7.06 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.00 | $ 8.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 998.50 | $ 10.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 998.50 | $ 10.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.20 | $ 5.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
Amgen, Inc. | 20.9 | 21.5 |
Gilead Sciences, Inc. | 6.8 | 5.5 |
Alexion Pharmaceuticals, Inc. | 6.0 | 6.8 |
Vertex Pharmaceuticals, Inc. | 4.4 | 4.7 |
Acorda Therapeutics, Inc. | 4.3 | 3.3 |
United Therapeutics Corp. | 4.3 | 5.0 |
Biogen Idec, Inc. | 4.3 | 8.5 |
Genzyme Corp. | 4.2 | 3.7 |
Cephalon, Inc. | 4.1 | 3.5 |
BioMarin Pharmaceutical, Inc. | 3.8 | 2.5 |
| 63.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
 | Biotechnology | 93.1% |
|
 | Pharmaceuticals | 6.7% |
|
 | Health Care | 0.5% |
|
 | All Others † | (0.3)% |
|
As of July 31, 2009 | |||
| Biotechnology | 92.5% |
|
| Pharmaceuticals | 6.7% |
|
 | Life Sciences | 0.5% |
|
 | Health Care | 0.3% |
|
 | All Others* | 0.0% |
|
† Short-term investments and net other assets are not included in the pie chart. |
* Includes short-term investments and net other assets. |
Biotechnology
Advisor Biotechnology Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% | |||
Shares | Value | ||
BIOTECHNOLOGY - 92.9% | |||
Biotechnology - 92.9% | |||
Abraxis BioScience, Inc. (a) | 3,109 | $ 127,003 | |
Acadia Pharmaceuticals, Inc. (a) | 15,574 | 19,468 | |
Acorda Therapeutics, Inc. (a) | 80,016 | 2,238,848 | |
Affymax, Inc. (a) | 12,304 | 258,384 | |
Alexion Pharmaceuticals, Inc. (a) | 66,408 | 3,079,339 | |
Alkermes, Inc. (a) | 35,861 | 392,319 | |
Allos Therapeutics, Inc. (a)(c) | 108,330 | 786,476 | |
Alnylam Pharmaceuticals, Inc. (a)(c) | 8,900 | 150,410 | |
AMAG Pharmaceuticals, Inc. (a)(c) | 7,500 | 329,850 | |
Amgen, Inc. (a) | 184,375 | 10,782,248 | |
Amylin Pharmaceuticals, Inc. (a)(c) | 35,000 | 629,300 | |
Anadys Pharmaceuticals, Inc. (a) | 20,555 | 41,521 | |
Antigenics, Inc. (a)(c) | 53,000 | 39,856 | |
Antigenics, Inc. warrants 1/9/18 (a)(e) | 452,000 | 309,315 | |
Arena Pharmaceuticals, Inc. (a)(c) | 31,420 | 98,030 | |
Biogen Idec, Inc. (a) | 40,826 | 2,193,989 | |
BioMarin Pharmaceutical, Inc. (a) | 99,966 | 1,942,339 | |
Celera Corp. (a) | 28,200 | 189,786 | |
Celgene Corp. (a) | 22,215 | 1,261,368 | |
Cephalon, Inc. (a) | 32,694 | 2,087,185 | |
Cepheid, Inc. (a) | 6,000 | 88,140 | |
Clinical Data, Inc. (a)(c) | 19,584 | 301,006 | |
Cubist Pharmaceuticals, Inc. (a) | 3,692 | 75,649 | |
Dendreon Corp. (a)(c) | 59,700 | 1,653,690 | |
Enzon Pharmaceuticals, Inc. (a)(c) | 16,900 | 168,493 | |
Exelixis, Inc. (a) | 33,100 | 219,453 | |
Facet Biotech Corp. (a) | 14,600 | 229,950 | |
Genomic Health, Inc. (a) | 2,100 | 34,713 | |
Genzyme Corp. (a) | 39,832 | 2,161,284 | |
Gilead Sciences, Inc. (a) | 72,502 | 3,499,672 | |
Halozyme Therapeutics, Inc. (a) | 9,910 | 53,712 | |
Human Genome Sciences, Inc. (a)(c) | 53,508 | 1,416,357 | |
ImmunoGen, Inc. (a) | 1,000 | 6,990 | |
Incyte Corp. (a)(c) | 49,995 | 533,947 | |
InterMune, Inc. | 22,917 | 357,734 | |
Isis Pharmaceuticals, Inc. (a) | 37,900 | 422,964 | |
Lexicon Pharmaceuticals, Inc. (a)(c) | 164,993 | 293,688 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 23,700 | 41,949 | |
MannKind Corp. (a)(c) | 20,600 | 208,472 | |
Martek Biosciences (a) | 2,900 | 62,466 | |
Medivation, Inc. (a)(c) | 22,829 | 759,977 | |
Micromet, Inc. (a)(c) | 8,200 | 63,714 | |
Momenta Pharmaceuticals, Inc. (a)(c) | 21,729 | 317,026 | |
Myriad Genetics, Inc. (a) | 24,324 | 571,614 | |
Myriad Pharmaceuticals, Inc. (a) | 302 | 1,410 | |
ONYX Pharmaceuticals, Inc. (a) | 4,848 | 139,428 | |
OSI Pharmaceuticals, Inc. (a) | 9,203 | 314,927 | |
| |||
Shares | Value | ||
PDL BioPharma, Inc. (c) | 19,188 | $ 122,803 | |
Pharmasset, Inc. (a) | 12,442 | 260,038 | |
Progenics Pharmaceuticals, Inc. (a) | 4,500 | 20,250 | |
Regeneron Pharmaceuticals, Inc. (a) | 22,449 | 598,490 | |
Rigel Pharmaceuticals, Inc. (a) | 24,029 | 197,278 | |
Sangamo Biosciences, Inc. (a)(c) | 7,098 | 39,039 | |
Savient Pharmaceuticals, Inc. (a) | 17,955 | 230,363 | |
Seattle Genetics, Inc. (a) | 23,121 | 238,609 | |
Sinovac Biotech Ltd. (a) | 11,700 | 70,200 | |
Targacept, Inc. (a) | 15,109 | 316,534 | |
Theratechnologies, Inc. (a) | 1,900 | 8,245 | |
United Therapeutics Corp. (a) | 36,904 | 2,198,371 | |
Vanda Pharmaceuticals, Inc. (a)(c) | 28,500 | 285,285 | |
Vertex Pharmaceuticals, Inc. (a) | 58,704 | 2,254,234 | |
Zymogenetics, Inc. (a) | 8,495 | 48,167 | |
| 47,843,365 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5% | |||
Health Care Equipment - 0.2% | |||
Alsius Corp. (a) | 14,200 | 582 | |
Aradigm Corp. (a) | 21,800 | 3,052 | |
Delcath Systems, Inc. (a)(c) | 16,000 | 68,960 | |
| 72,594 | ||
Health Care Supplies - 0.3% | |||
Quidel Corp. (a) | 11,170 | 148,338 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 220,932 | ||
PHARMACEUTICALS - 6.7% | |||
Pharmaceuticals - 6.7% | |||
Adolor Corp. (a) | 28,099 | 44,115 | |
Akorn, Inc. (a) | 54,479 | 86,622 | |
Alexza Pharmaceuticals, Inc. (a) | 6,581 | 17,111 | |
Auxilium Pharmaceuticals, Inc. (a) | 47,258 | 1,330,785 | |
Biodel, Inc. (a) | 95,569 | 383,232 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 12,900 | 128,484 | |
Elan Corp. PLC sponsored ADR (a) | 72,250 | 538,263 | |
Inspire Pharmaceuticals, Inc. (a) | 1,370 | 7,549 | |
Jazz Pharmaceuticals, Inc. (a) | 6,435 | 60,489 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 25,988 | 320,172 | |
ViroPharma, Inc. (a) | 35,188 | 347,657 | |
XenoPort, Inc. (a) | 9,900 | 182,952 | |
| 3,447,431 | ||
TOTAL COMMON STOCKS (Cost $46,722,753) | 51,511,728 | ||
Convertible Bonds - 0.2% | ||||
| Principal Amount | Value | ||
BIOTECHNOLOGY - 0.2% | ||||
Biotechnology - 0.2% | ||||
OSI Pharmaceuticals, Inc. 3.25% 9/8/23 | $ 130,000 | $ 123,825 | ||
Money Market Funds - 6.6% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (d) | 410,736 | 410,736 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 3,008,845 | 3,008,845 | |
TOTAL MONEY MARKET FUNDS (Cost $3,419,581) | 3,419,581 | ||
TOTAL INVESTMENT PORTFOLIO - 106.9% (Cost $50,249,777) | 55,055,134 |
NET OTHER ASSETS - (6.9)% | (3,569,237) | ||
NET ASSETS - 100% | $ 51,485,897 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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. |
(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 $309,315 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Antigenics, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
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 | $ 319 |
Fidelity Securities Lending Cash Central Fund | 22,194 |
Total | $ 22,513 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 51,511,728 | $ 51,201,831 | $ 309,315 | $ 582 |
Convertible Bonds | 123,825 | - | 123,825 | - |
Money Market Funds | 3,419,581 | 3,419,581 | - | - |
Total Investments in Securities | $ 55,055,134 | $ 54,621,412 | $ 433,140 | $ 582 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (270) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | 852 |
Ending Balance | $ 582 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ (270) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $4,539,063 all of which will expire on July 31, 2017. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,897,800) - See accompanying schedule: Unaffiliated issuers (cost $46,830,196) | $ 51,635,553 |
|
Fidelity Central Funds (cost $3,419,581) | 3,419,581 |
|
Total Investments (cost $50,249,777) |
| $ 55,055,134 |
Receivable for investments sold | 2,210,133 | |
Receivable for fund shares sold | 86,735 | |
Interest receivable | 1,667 | |
Distributions receivable from Fidelity Central Funds | 2,577 | |
Prepaid expenses | 213 | |
Other receivables | 682 | |
Total assets | 57,357,141 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,700,396 | |
Payable for fund shares redeemed | 71,817 | |
Accrued management fee | 26,146 | |
Distribution fees payable | 24,344 | |
Other affiliated payables | 15,973 | |
Other payables and accrued expenses | 23,723 | |
Collateral on securities loaned, at value | 3,008,845 | |
Total liabilities | 5,871,244 | |
|
|
|
Net Assets | $ 51,485,897 | |
Net Assets consist of: |
| |
Paid in capital | $ 53,140,878 | |
Accumulated net investment loss | (347,860) | |
Accumulated undistributed net realized gain (loss) on investments | (6,112,478) | |
Net unrealized appreciation (depreciation) on investments | 4,805,357 | |
Net Assets | $ 51,485,897 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 6.95 | |
|
|
|
Maximum offering price per share (100/94.25 of $6.95) | $ 7.37 | |
Class T: | $ 6.78 | |
|
|
|
Maximum offering price per share (100/96.50 of $6.78) | $ 7.03 | |
Class B: | $ 6.46 | |
|
|
|
Class C: | $ 6.46 | |
|
|
|
Institutional Class: | $ 7.15 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Special dividends |
| $ 73,514 |
Interest |
| 2,698 |
Income from Fidelity Central Funds (including $22,194 from security lending) |
| 22,513 |
Total income |
| 98,725 |
|
|
|
Expenses | ||
Management fee | $ 145,821 | |
Transfer agent fees | 92,536 | |
Distribution fees | 148,329 | |
Accounting and security lending fees | 10,440 | |
Custodian fees and expenses | 6,412 | |
Independent trustees' compensation | 160 | |
Registration fees | 44,035 | |
Audit | 22,247 | |
Legal | 237 | |
Miscellaneous | 507 | |
Total expenses before reductions | 470,724 | |
Expense reductions | (24,044) | 446,680 |
Net investment income (loss) | (347,955) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (799,549) |
Change in net unrealized appreciation (depreciation) on investment securities | 1,034,158 | |
Net gain (loss) | 234,609 | |
Net increase (decrease) in net assets resulting from operations | $ (113,346) | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (347,955) | $ (837,247) |
Net realized gain (loss) | (799,549) | (282,180) |
Change in net unrealized appreciation (depreciation) | 1,034,158 | (7,383,033) |
Net increase (decrease) in net assets resulting from operations | (113,346) | (8,502,460) |
Share transactions - net increase (decrease) | (3,318,909) | 4,533,971 |
Redemption fees | 411 | 29,559 |
Total increase (decrease) in net assets | (3,431,844) | (3,938,930) |
|
|
|
Net Assets | ||
Beginning of period | 54,917,741 | 58,856,671 |
End of period (including accumulated net investment loss of $347,860 and undistributed net investment income of $95, respectively) | $ 51,485,897 | $ 54,917,741 |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.08) | (.09) I | (.09) | (.09) | (.08) J |
Net realized and unrealized gain (loss) | .04 | (.79) | 1.20 | .51 | .10 | .88 |
Total from investment operations | .01 | (.87) | 1.11 | .42 | .01 | .80 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.95 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 |
Total Return B, C, D | .14% | (11.14)% | 15.95% | 6.17% | .15% | 13.33% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.48% A | 1.40% | 1.37% | 1.42% | 1.48% | 1.56% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.37% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.39% A | 1.40% | 1.37% | 1.40% | 1.37% | 1.43% |
Net investment income (loss) | (1.02)% A, H | (1.27)% | (1.24)% I | (1.25)% | (1.29)% | (1.36)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 19,619 | $ 19,858 | $ 18,249 | $ 13,081 | $ 12,539 | $ 11,022 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.30)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) H | (.09) | (.11) I | (.11) | (.11) | (.10) J |
Net realized and unrealized gain (loss) | .04 | (.78) | 1.18 | .51 | .10 | .87 |
Total from investment operations | - | (.87) | 1.07 | .40 | (.01) | .77 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.78 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 |
Total Return B, C, D | -% | (11.37)% | 15.64% | 5.96% | (.15)% | 12.94% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.77% A | 1.71% | 1.69% | 1.75% | 1.79% | 1.93% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.70% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.62% | 1.68% |
Net investment income (loss) | (1.27)% A, H | (1.52)% | (1.53)% I | (1.49)% | (1.54)% | (1.61)% J |
Supplemental Data |
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|
|
|
Net assets, end of period (000 omitted) | $ 12,168 | $ 13,356 | $ 15,123 | $ 13,008 | $ 13,808 | $ 14,177 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.55)%. 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 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) | (.14) I | (.14) | (.14) | (.13) J |
Net realized and unrealized gain (loss) | .05 | (.75) | 1.13 | .50 | .10 | .85 |
Total from investment operations | (.01) | (.87) | .99 | .36 | (.04) | .72 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.46 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 |
Total Return B, C, D | (.15)% | (11.85)% | 14.96% | 5.52% | (.61)% | 12.33% |
Ratios to Average Net Assets F, K |
|
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|
|
|
Expenses before reductions | 2.23% A | 2.15% | 2.12% | 2.17% | 2.23% | 2.33% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.12% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.12% | 2.15% | 2.12% | 2.18% |
Net investment income (loss) | (1.77)% A, H | (2.02)% | (2.00)% I | (1.99)% | (2.04)% | (2.11)% J |
Supplemental Data |
|
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|
|
|
Net assets, end of period (000 omitted) | $ 6,498 | $ 7,377 | $ 11,044 | $ 12,656 | $ 14,938 | $ 16,921 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (2.05)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) | (.13) I | (.14) | (.14) | (.13) J |
Net realized and unrealized gain (loss) | .05 | (.75) | 1.12 | .50 | .09 | .86 |
Total from investment operations | (.01) | (.87) | .99 | .36 | (.05) | .73 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.46 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 |
Total Return B, C, D | (.15)% | (11.85)% | 14.96% | 5.52% | (.76)% | 12.50% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.23% A | 2.15% | 2.12% | 2.16% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.12% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.12% | 2.15% | 2.12% | 2.18% |
Net investment income (loss) | (1.77)% A, H | (2.02)% | (2.00)% I | (1.99)% | (2.04)% | (2.11)% J |
Supplemental Data |
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|
|
|
|
|
Net assets, end of period (000 omitted) | $ 11,616 | $ 12,426 | $ 13,323 | $ 11,813 | $ 13,787 | $ 12,538 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (2.05)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.06) | (.07) H | (.07) | (.07) | (.06) I |
Net realized and unrealized gain (loss) | .06 | (.82) | 1.23 | .53 | .09 | .89 |
Total from investment operations | .03 | (.88) | 1.16 | .46 | .02 | .83 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 7.15 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 |
Total Return B, C | .42% | (11.00)% | 16.35% | 6.66% | .29% | 13.70% |
Ratios to Average Net Assets E, J |
|
|
|
|
|
|
Expenses before reductions | 1.13% A | 1.11% | 1.06% | 1.06% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | 1.13% A | 1.11% | 1.06% | 1.06% | 1.05% | 1.10% |
Expenses net of all reductions | 1.13% A | 1.11% | 1.06% | 1.06% | 1.03% | 1.09% |
Net investment income (loss) | (.75)% A, G | (.98)% | (.94)% H | (.91)% | (.94)% | (1.02)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,586 | $ 1,901 | $ 1,117 | $ 991 | $ 1,268 | $ 1,243 |
Portfolio turnover rate F | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.03)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
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. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
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, market discount, net operating losses, capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 8,170,370 |
|
Gross unrealized depreciation | (4,292,214) |
|
Net unrealized appreciation (depreciation) | $ 3,878,156 |
|
|
|
|
Tax cost | $ 51,176,978 |
|
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.
Biotechnology
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $29,698,757 and $33,215,186, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 24,392 | $ 74 |
Class T | .25% | .25% | 31,364 | - |
Class B | .75% | .25% | 33,870 | 25,446 |
Class C | .75% | .25% | 58,703 | 8,815 |
|
|
| $ 148,329 | $ 34,335 |
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 |
Class A | $ 6,074 |
Class T | 3,310 |
Class B* | 8,581 |
Class C* | 678 |
| $ 18,643 |
* 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 |
Class A | $ 33,778 | .35 |
Class T | 24,568 | .39 |
Class B | 11,811 | .35 |
Class C | 20,407 | .35 |
Institutional Class | 1,972 | .25 |
| $ 92,536 |
|
* 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 $383 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $105 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 | Reimbursement |
Class A | 1.40% | $ 7,676 |
Class T | 1.65% | 7,647 |
Class B | 2.15% | 2,645 |
Class C | 2.15% | 4,664 |
|
| $ 22,632 |
Biotechnology
9. Expense Reductions - continued
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 $1,412 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 426,216 | 2,341,295 | $ 2,899,468 | $ 15,410,062 |
Shares redeemed | (467,676) | (1,815,151) | (3,145,068) | (11,129,933) |
Net increase (decrease) | (41,460) | 526,144 | $ (245,600) | $ 4,280,129 |
Class T |
|
|
|
|
Shares sold | 167,854 | 826,391 | $ 1,114,756 | $ 5,258,554 |
Shares redeemed | (345,484) | (832,503) | (2,262,400) | (5,110,823) |
Net increase (decrease) | (177,630) | (6,112) | $ (1,147,644) | $ 147,731 |
Class B |
|
|
|
|
Shares sold | 91,901 | 365,766 | $ 579,620 | $ 2,311,576 |
Shares redeemed | (226,477) | (730,232) | (1,416,559) | (4,256,288) |
Net increase (decrease) | (134,576) | (364,466) | $ (836,939) | $ (1,944,712) |
Class C |
|
|
|
|
Shares sold | 172,141 | 793,743 | $ 1,078,601 | $ 5,016,886 |
Shares redeemed | (295,043) | (688,414) | (1,857,592) | (3,988,392) |
Net increase (decrease) | (122,902) | 105,329 | $ (778,991) | $ 1,028,494 |
Institutional Class |
|
|
|
|
Shares sold | 45,061 | 390,521 | $ 317,311 | $ 2,696,069 |
Shares redeemed | (90,262) | (263,268) | (627,046) | (1,673,740) |
Net increase (decrease) | (45,201) | 127,253 | $ (309,735) | $ 1,022,329 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Advisor Communications Equipment Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.20 | $ 7.20 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,039.30 | $ 8.48 |
Hypothetical A |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,036.60 | $ 11.04 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,036.70 | $ 11.04 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.60 | $ 5.92 |
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).
Semiannual Report
Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Cisco Systems, Inc. | 13.5 | 16.0 |
QUALCOMM, Inc. | 9.7 | 10.8 |
Research In Motion Ltd. | 6.0 | 0.1 |
Juniper Networks, Inc. | 5.3 | 4.7 |
Polycom, Inc. | 4.6 | 1.9 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.2 | 0.2 |
Motorola, Inc. | 3.8 | 3.4 |
F5 Networks, Inc. | 2.7 | 2.1 |
Brocade Communications Systems, Inc. | 2.7 | 1.8 |
Adtran, Inc. | 2.6 | 3.2 |
| 55.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Communications Equipment | 79.8% |
|
 | Semiconductors & Semiconductor Equipment | 6.7% |
|
 | Wireless Telecommunication Services | 4.0% |
|
| Electronic Equipment | 3.2% |
|
| Internet Software | 2.1% |
|
| All Others* | 4.2% |
|
As of July 31, 2009 | |||
| Communications Equipment | 75.1% |
|
| Semiconductors & Semiconductor Equipment | 9.2% |
|
| Software | 6.2% |
|
| Internet Software | 2.8% |
|
| Wireless Telecommunication Services | 2.5% |
|
| All Others* | 4.2% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Communications Equipment Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 79.7% | |||
Communications Equipment - 79.7% | |||
Acme Packet, Inc. (a) | 26,640 | $ 275,724 | |
ADC Telecommunications, Inc. (a) | 22,700 | 120,537 | |
Adtran, Inc. | 16,383 | 347,320 | |
ADVA AG Optical Networking (a) | 7,013 | 24,128 | |
Alcatel-Lucent SA sponsored ADR (a) | 2,100 | 6,993 | |
Arris Group, Inc. (a) | 2,571 | 25,813 | |
Aruba Networks, Inc. (a) | 4,951 | 51,441 | |
Aviat Networks, Inc. (a) | 5,667 | 40,746 | |
BigBand Networks, Inc. (a) | 10,500 | 32,970 | |
Blue Coat Systems, Inc. (a) | 7,000 | 172,550 | |
Brocade Communications Systems, Inc. (a) | 51,909 | 356,615 | |
BYD Electronic International Co. Ltd. (a) | 24,000 | 20,309 | |
Ceragon Networks Ltd. (a) | 7,300 | 86,067 | |
Ciena Corp. (a) | 3,059 | 39,002 | |
Cisco Systems, Inc. (a) | 80,569 | 1,810,382 | |
CommScope, Inc. (a) | 12,600 | 342,846 | |
Comverse Technology, Inc. (a) | 3,806 | 36,195 | |
DragonWave, Inc. (a) | 8,400 | 94,110 | |
EchoStar Holding Corp. Class A (a) | 2,120 | 40,704 | |
EMCORE Corp. (a) | 4,600 | 4,370 | |
Emulex Corp. (a) | 16,000 | 179,840 | |
Extreme Networks, Inc. (a) | 15,600 | 38,532 | |
F5 Networks, Inc. (a) | 7,330 | 362,322 | |
Finisar Corp. (a) | 8,312 | 85,614 | |
Harmonic, Inc. (a) | 34,700 | 210,629 | |
Infinera Corp. (a) | 1,700 | 11,645 | |
Ixia (a) | 4,000 | 29,680 | |
JDS Uniphase Corp. (a) | 23,013 | 180,882 | |
Juniper Networks, Inc. (a) | 28,814 | 715,452 | |
Motorola, Inc. | 83,200 | 511,680 | |
Oclaro, Inc. (a) | 7,194 | 11,870 | |
Oplink Communications, Inc. (a) | 3,274 | 48,619 | |
Opnext, Inc. (a) | 15,501 | 29,297 | |
Palm, Inc. (a) | 1,700 | 17,663 | |
Polycom, Inc. (a) | 27,300 | 612,339 | |
QUALCOMM, Inc. | 33,320 | 1,305,811 | |
Research In Motion Ltd. (a) | 12,700 | 799,592 | |
Riverbed Technology, Inc. (a) | 7,779 | 174,405 | |
Sandvine Corp. (a) | 18,400 | 22,370 | |
Sandvine Corp. (U.K.) (a) | 56,400 | 68,932 | |
ShoreTel, Inc. (a) | 13,604 | 72,237 | |
Sierra Wireless, Inc. (a) | 12,100 | 133,527 | |
Sonus Networks, Inc. (a) | 15,367 | 32,424 | |
Tekelec (a) | 15,500 | 232,190 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 58,300 | 564,344 | |
Tellabs, Inc. | 46,967 | 301,998 | |
| 10,682,716 | ||
| |||
Shares | Value | ||
COMPUTERS & PERIPHERALS - 0.0% | |||
Computer Hardware - 0.0% | |||
Compal Electronics, Inc. | 28 | $ 39 | |
ELECTRICAL EQUIPMENT - 0.0% | |||
Electrical Components & Equipment - 0.0% | |||
A123 Systems, Inc. | 100 | 1,598 | |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.2% | |||
Electronic Components - 0.6% | |||
BYD Co. Ltd. (H Shares) (a) | 3,500 | 25,651 | |
Prime View International Co. Ltd. (a) | 16,000 | 29,332 | |
Universal Display Corp. (a) | 2,800 | 31,556 | |
| 86,539 | ||
Electronic Manufacturing Services - 2.6% | |||
Benchmark Electronics, Inc. (a) | 1,900 | 34,618 | |
Flextronics International Ltd. (a) | 4,000 | 25,360 | |
Foxconn International Holdings Ltd. (a) | 2,000 | 2,130 | |
Plexus Corp. | 1,000 | 34,010 | |
SMART Modular Technologies (WWH), Inc. (a) | 4,416 | 26,849 | |
Trimble Navigation Ltd. (a) | 9,719 | 222,468 | |
| 345,435 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 431,974 | ||
INTERNET SOFTWARE & SERVICES - 2.1% | |||
Internet Software & Services - 2.1% | |||
Equinix, Inc. (a) | 300 | 28,869 | |
NetEase.com, Inc. sponsored ADR (a) | 200 | 6,560 | |
Sina Corp. (a) | 900 | 32,544 | |
Tencent Holdings Ltd. | 4,100 | 76,677 | |
VeriSign, Inc. (a) | 5,800 | 132,878 | |
| 277,528 | ||
IT SERVICES - 0.1% | |||
Data Processing & Outsourced Services - 0.1% | |||
NeuStar, Inc. Class A (a) | 700 | 15,722 | |
IT Consulting & Other Services - 0.0% | |||
Yucheng Technologies Ltd. (a) | 1,200 | 4,260 | |
TOTAL IT SERVICES | 19,982 | ||
MEDIA - 0.6% | |||
Advertising - 0.3% | |||
VisionChina Media, Inc. ADR (a) | 4,700 | 40,843 | |
Cable & Satellite - 0.3% | |||
Virgin Media, Inc. | 3,050 | 43,280 | |
TOTAL MEDIA | 84,123 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.7% | |||
Semiconductor Equipment - 0.4% | |||
Tessera Technologies, Inc. (a) | 2,900 | 49,793 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - 6.3% | |||
Actel Corp. (a) | 451 | $ 4,970 | |
Altera Corp. | 1,200 | 25,584 | |
Applied Micro Circuits Corp. (a) | 2,758 | 20,216 | |
ARM Holdings PLC sponsored ADR | 1,600 | 14,512 | |
Avago Technologies Ltd. | 3,500 | 60,830 | |
Cavium Networks, Inc. (a) | 10,554 | 228,072 | |
Ceva, Inc. (a) | 2,900 | 34,481 | |
Conexant Systems, Inc. (a) | 1,280 | 4,890 | |
CSR PLC (a) | 7,686 | 54,884 | |
Exar Corp. (a) | 143 | 1,005 | |
Hittite Microwave Corp. (a) | 2,300 | 85,514 | |
Ikanos Communications, Inc. (a) | 3,985 | 8,568 | |
Infineon Technologies AG (a) | 2,376 | 12,949 | |
Lattice Semiconductor Corp. (a) | 6,700 | 17,353 | |
LSI Corp. (a) | 2,300 | 11,477 | |
Microsemi Corp. (a) | 449 | 6,708 | |
Netlogic Microsystems, Inc. (a) | 1,516 | 62,095 | |
Omnivision Technologies, Inc. (a) | 1,000 | 12,900 | |
ON Semiconductor Corp. (a) | 7,285 | 52,525 | |
Pericom Semiconductor Corp. (a) | 1,700 | 14,960 | |
Pixelplus Co. Ltd. ADR (a) | 900 | 333 | |
PLX Technology, Inc. (a) | 900 | 3,996 | |
PMC-Sierra, Inc. (a) | 3,100 | 24,645 | |
Silicon Storage Technology, Inc. (a) | 1,200 | 3,204 | |
Standard Microsystems Corp. (a) | 1,200 | 23,940 | |
TriQuint Semiconductor, Inc. (a) | 5,000 | 30,000 | |
Xilinx, Inc. | 900 | 21,222 | |
| 841,833 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 891,626 | ||
SOFTWARE - 2.0% | |||
Application Software - 1.4% | |||
Citrix Systems, Inc. (a) | 1,592 | 66,148 | |
KongZhong Corp. sponsored ADR (a) | 100 | 847 | |
NetScout Systems, Inc. (a) | 1,200 | 16,848 | |
Smith Micro Software, Inc. (a) | 3,768 | 29,202 | |
Synchronoss Technologies, Inc. (a) | 1,900 | 31,844 | |
Taleo Corp. Class A (a) | 100 | 2,031 | |
Ulticom, Inc. | 3,441 | 33,034 | |
| 179,954 | ||
Home Entertainment Software - 0.1% | |||
Giant Interactive Group, Inc. ADR | 2,000 | 14,640 | |
| |||
Shares | Value | ||
Systems Software - 0.5% | |||
Allot Communications Ltd. (a) | 300 | $ 1,269 | |
Opnet Technologies, Inc. | 400 | 4,700 | |
TeleCommunication Systems, Inc. Class A (a) | 6,977 | 61,119 | |
| 67,088 | ||
TOTAL SOFTWARE | 261,682 | ||
WIRELESS TELECOMMUNICATION SERVICES - 4.0% | |||
Wireless Telecommunication Services - 4.0% | |||
American Tower Corp. Class A (a) | 1,690 | 71,741 | |
Crown Castle International Corp. (a) | 1,900 | 70,186 | |
Leap Wireless International, Inc. (a) | 300 | 3,957 | |
SBA Communications Corp. Class A (a) | 2,052 | 67,901 | |
SOFTBANK CORP. | 6,000 | 152,941 | |
Sprint Nextel Corp. (a) | 25,400 | 83,312 | |
Syniverse Holdings, Inc. (a) | 5,021 | 84,403 | |
| 534,441 | ||
TOTAL COMMON STOCKS (Cost $13,064,345) | 13,185,709 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount |
| ||
COMMUNICATIONS EQUIPMENT - 0.1% | ||||
Communications Equipment - 0.1% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 20,000 | 16,332 | ||
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (b) | 254,704 | 254,704 | |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $13,339,049) | 13,456,745 | ||
NET OTHER ASSETS - (0.4)% | (53,030) | ||
NET ASSETS - 100% | $ 13,403,715 | ||
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. |
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 | $ 365 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 13,185,709 | $ 13,024,816 | $ 160,893 | $ - |
Convertible Bonds | 16,332 | - | 16,332 | - |
Money Market Funds | 254,704 | 254,704 | - | - |
Total Investments in Securities | $ 13,456,745 | $ 13,279,520 | $ 177,225 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 81.9% |
Canada | 8.4% |
Sweden | 4.2% |
Japan | 1.2% |
China | 1.1% |
Others (individually less than 1%) | 3.2% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $601,215 of which $207,917 and $393,298 will expire on July 31, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $1,583,417 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $13,084,345) | $ 13,202,041 |
|
Fidelity Central Funds (cost $254,704) | 254,704 |
|
Total Investments (cost $13,339,049) |
| $ 13,456,745 |
Receivable for investments sold | 423,399 | |
Receivable for fund shares sold | 59,945 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 38 | |
Prepaid expenses | 45 | |
Receivable from investment adviser for expense reductions | 2,034 | |
Other receivables | 927 | |
Total assets | 13,943,145 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 428,729 | |
Payable for fund shares redeemed | 69,599 | |
Accrued management fee | 6,825 | |
Distribution fees payable | 6,334 | |
Other affiliated payables | 4,323 | |
Other payables and accrued expenses | 23,620 | |
Total liabilities | 539,430 | |
|
|
|
Net Assets | $ 13,403,715 | |
Net Assets consist of: |
| |
Paid in capital | $ 14,833,679 | |
Accumulated net investment loss | (97,741) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,449,919) | |
Net unrealized appreciation (depreciation) on investments | 117,696 | |
Net Assets | $ 13,403,715 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.58) | $ 8.04 | |
Class T: | $ 7.41 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.41) | $ 7.68 | |
Class B: | $ 7.08 | |
|
|
|
Class C: | $ 7.07 | |
|
|
|
Institutional Class: | $ 7.76 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 12,853 |
Interest |
| 30 |
Income from Fidelity Central Funds |
| 365 |
Total income |
| 13,248 |
|
|
|
Expenses | ||
Management fee | $ 37,532 | |
Transfer agent fees | 23,736 | |
Distribution fees | 35,552 | |
Accounting fees and expenses | 2,611 | |
Custodian fees and expenses | 4,953 | |
Independent trustees' compensation | 37 | |
Registration fees | 43,154 | |
Audit | 22,665 | |
Legal | 41 | |
Miscellaneous | 82 | |
Total expenses before reductions | 170,363 | |
Expense reductions | (59,374) | 110,989 |
Net investment income (loss) | (97,741) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 879,797 | |
Foreign currency transactions | (394) | |
Total net realized gain (loss) |
| 879,403 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (407,137) | |
Assets and liabilities in foreign currencies | 424 | |
Total change in net unrealized appreciation (depreciation) |
| (406,713) |
Net gain (loss) | 472,690 | |
Net increase (decrease) in net assets resulting from operations | $ 374,949 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (97,741) | $ (3,392) |
Net realized gain (loss) | 879,403 | (2,045,448) |
Change in net unrealized appreciation (depreciation) | (406,713) | 1,654,393 |
Net increase (decrease) in net assets resulting from operations | 374,949 | (394,447) |
Share transactions - net increase (decrease) | 2,126,055 | 4,154,179 |
Redemption fees | 960 | 239 |
Total increase (decrease) in net assets | 2,501,964 | 3,759,971 |
|
|
|
Net Assets | ||
Beginning of period | 10,901,751 | 7,141,780 |
End of period (including accumulated net investment loss of $97,741 and $0, respectively) | $ 13,403,715 | $ 10,901,751 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
[Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .02 H | (.08) | (.09) | (.09) | (.07) |
Net realized and unrealized gain (loss) | .35 | (.56) | (1.45) | 2.29 | (.32) | 1.24 |
Total from investment operations | .30 | (.54) | (1.53) | 2.20 | (.41) | 1.17 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.58 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 |
Total Return B,C,D | 4.12% | (6.91)% | (16.43)% | 30.18% | (5.32)% | 17.92% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 2.27% A | 3.15% | 2.25% | 2.24% | 2.13% | 2.32% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.38% A | 1.40% | 1.39% | 1.40% | 1.32% | 1.28% |
Net investment income (loss) | (1.18)% A | .26% H | (.91)% | (1.00)% | (1.05)% | (.92)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,968 | $ 3,476 | $ 2,459 | $ 2,825 | $ 3,145 | $ 2,406 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 (.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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | - H,J | (.10) | (.11) | (.11) | (.08) |
Net realized and unrealized gain (loss) | .33 | (.55) | (1.42) | 2.26 | (.31) | 1.21 |
Total from investment operations | .28 | (.55) | (1.52) | 2.15 | (.42) | 1.13 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.41 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 |
Total Return B,C,D | 3.93% | (7.16)% | (16.59)% | 29.90% | (5.52)% | 17.44% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 2.57% A | 3.52% | 2.62% | 2.57% | 2.51% | 2.78% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.71% |
Expenses net of all reductions | 1.63% A | 1.65% | 1.65% | 1.64% | 1.57% | 1.54% |
Net investment income (loss) | (1.43)% A | .01% H | (1.16)% | (1.25)% | (1.30)% | (1.18)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,916 | $ 2,396 | $ 2,138 | $ 3,271 | $ 2,932 | $ 3,034 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | (.03) H | (.14) | (.14) | (.14) | (.12) |
Net realized and unrealized gain (loss) | .32 | (.53) | (1.36) | 2.18 | (.31) | 1.20 |
Total from investment operations | .25 | (.56) | (1.50) | 2.04 | (.45) | 1.08 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.08 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 |
Total Return B,C,D | 3.66% | (7.58)% | (16.94)% | 29.18% | (6.05)% | 16.98% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 3.03% A | 3.98% | 3.03% | 3.00% | 2.94% | 3.14% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.20% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.15% | 2.07% | 2.04% |
Net investment income (loss) | (1.93)% A | (.49)% H | (1.67)% | (1.75)% | (1.80)% | (1.68)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,377 | $ 1,281 | $ 1,219 | $ 2,225 | $ 2,406 | $ 2,864 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | (.03) H | (.14) | (.14) | (.15) | (.12) |
Net realized and unrealized gain (loss) | .32 | (.53) | (1.37) | 2.18 | (.30) | 1.20 |
Total from investment operations | .25 | (.56) | (1.51) | 2.04 | (.45) | 1.08 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.07 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 |
Total Return B,C,D | 3.67% | (7.59)% | (17.06)% | 29.18% | (6.05)% | 16.98% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 3.01% A | 3.63% | 3.02% | 2.98% | 2.86% | 3.07% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.15% | 2.07% | 2.02% |
Net investment income (loss) | (1.93)% A | (.49)% H | (1.67)% | (1.75)% | (1.81)% | (1.66)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 | $ 1,768 | $ 1,846 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | .03 G | (.06) | (.07) | (.07) | (.05) |
Net realized and unrealized gain (loss) | .35 | (.56) | (1.47) | 2.33 | (.33) | 1.24 |
Total from investment operations | .31 | (.53) | (1.53) | 2.26 | (.40) | 1.19 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 7.76 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 |
Total Return B,C | 4.16% | (6.64)% | (16.16)% | 30.58% | (5.13)% | 18.03% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | 1.89% A | 2.44% | 1.94% | 1.87% | 1.70% | 1.85% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.18% |
Expenses net of all reductions | 1.13% A | 1.15% | 1.14% | 1.15% | 1.07% | 1.01% |
Net investment income (loss) | (.93)% A | .51% G | (.66)% | (.75)% | (.80)% | (.65)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,114 | $ 957 | $ 229 | $ 324 | $ 379 | $ 319 |
Portfolio turnover rate F | 118% A | 97% | 63% | 58% | 174% | 250% |
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 (.63)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,310,340 |
Gross unrealized depreciation | (1,287,209) |
Net unrealized appreciation (depreciation) | $ 23,131 |
|
|
Tax cost | $ 13,433,614 |
Communications Equipment
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $9,482,140 and $7,487,917, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 5,185 | $ 39 |
Class T | .25% | .25% | 7,146 | - |
Class B | .75% | .25% | 7,772 | 5,829 |
Class C | .75% | .25% | 15,449 | 3,550 |
|
|
| $ 35,552 | $ 9,418 |
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 |
Class A | $ 2,928 |
Class T | 1,573 |
Class B* | 2,136 |
Class C* | 1,558 |
| $ 8,195 |
* 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 |
Class A | $ 7,452 | .36 |
Class T | 5,844 | .41 |
Class B | 2,799 | .36 |
Class C | 5,490 | .36 |
Institutional Class | 2,151 | .24 |
| $ 23,736 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
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 $251 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $25 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 | Reimbursement |
Class A | 1.40% | $ 18,087 |
Class T | 1.65% | 13,063 |
Class B | 2.15% | 6,830 |
Class C | 2.15% | 13,322 |
Institutional Class | 1.15% | 6,542 |
|
| $ 57,844 |
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 $1,530 for the period.
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 218,495 | 355,106 | $ 1,706,462 | $ 2,309,221 |
Shares redeemed | (172,247) | (192,148) | (1,349,713) | (977,112) |
Net increase (decrease) | 46,248 | 162,958 | $ 356,749 | $ 1,332,109 |
Class T |
|
|
|
|
Shares sold | 109,709 | 141,676 | $ 842,864 | $ 842,215 |
Shares redeemed | (52,211) | (84,049) | (402,467) | (471,168) |
Net increase (decrease) | 57,498 | 57,627 | $ 440,397 | $ 371,047 |
Class B |
|
|
|
|
Shares sold | 65,034 | 79,696 | $ 466,390 | $ 489,378 |
Shares redeemed | (58,074) | (57,101) | (426,721) | (282,381) |
Net increase (decrease) | 6,960 | 22,595 | $ 39,669 | $ 206,997 |
Class C |
|
|
|
|
Shares sold | 133,680 | 334,255 | $ 959,829 | $ 2,000,139 |
Shares redeemed | (114,575) | (73,743) | (807,981) | (434,705) |
Net increase (decrease) | 19,105 | 260,512 | $ 151,848 | $ 1,565,434 |
Communications Equipment
8. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Institutional Class |
|
|
|
|
Shares sold | 195,077 | 116,053 | $ 1,546,508 | $ 776,070 |
Shares redeemed | (51,156) | (16,263) | (409,116) | (97,478) |
Net increase (decrease) | 143,921 | 99,790 | $ 1,137,392 | $ 678,592 |
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
Advisor Consumer Discretionary Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.60 | $ 7.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.80 | $ 8.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.30 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.20 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.60 | $ 6.18 |
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).
Consumer Discretionary
Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Target Corp. | 6.1 | 6.6 |
Lowe's Companies, Inc. | 5.7 | 7.6 |
The Walt Disney Co. | 5.5 | 5.1 |
McDonald's Corp. | 5.4 | 5.6 |
Amazon.com, Inc. | 3.8 | 2.6 |
Staples, Inc. | 2.6 | 2.9 |
Advance Auto Parts, Inc. | 2.4 | 2.6 |
Ford Motor Co. | 2.3 | 1.7 |
Wyndham Worldwide Corp. | 2.1 | 1.3 |
Johnson Controls, Inc. | 2.0 | 2.1 |
| 37.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Media | 21.1% |
|
| Specialty Retail | 21.1% |
|
| Hotels, | 20.4% |
|
| Multiline Retail | 7.9% |
|
| Internet & Catalog Retail | 4.7% |
|
| All Others* | 24.8% |
|
As of July 31, 2009 | |||
| Specialty Retail | 25.4% |
|
| Media | 19.9% |
|
| Hotels, | 18.8% |
|
| Multiline Retail | 6.6% |
|
| Textiles, Apparel & Luxury Goods | 5.3% |
|
| All Others* | 24.0% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Consumer Discretionary Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
AUTO COMPONENTS - 2.9% | |||
Auto Parts & Equipment - 2.9% | |||
BorgWarner, Inc. | 9,400 | $ 329,846 | |
Gentex Corp. | 2,100 | 40,257 | |
Johnson Controls, Inc. | 28,600 | 795,938 | |
| 1,166,041 | ||
AUTOMOBILES - 3.1% | |||
Automobile Manufacturers - 2.3% | |||
Ford Motor Co. (a) | 84,800 | 919,232 | |
Motorcycle Manufacturers - 0.8% | |||
Harley-Davidson, Inc. | 13,400 | 304,716 | |
TOTAL AUTOMOBILES | 1,223,948 | ||
CONSUMER FINANCE - 0.3% | |||
Consumer Finance - 0.3% | |||
Capital One Financial Corp. | 2,800 | 103,208 | |
DISTRIBUTORS - 0.8% | |||
Distributors - 0.8% | |||
Li & Fung Ltd. | 72,000 | 330,141 | |
DIVERSIFIED CONSUMER SERVICES - 3.9% | |||
Education Services - 2.3% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 4,500 | 272,655 | |
DeVry, Inc. | 4,700 | 286,982 | |
Navitas Ltd. | 16,755 | 66,374 | |
Strayer Education, Inc. | 1,400 | 290,892 | |
| 916,903 | ||
Specialized Consumer Services - 1.6% | |||
Coinstar, Inc. (a) | 4,500 | 116,235 | |
Sotheby's Class A (ltd. vtg.) (c) | 15,488 | 359,941 | |
Steiner Leisure Ltd. (a) | 4,000 | 159,360 | |
| 635,536 | ||
TOTAL DIVERSIFIED CONSUMER SERVICES | 1,552,439 | ||
FOOD & STAPLES RETAILING - 1.6% | |||
Food Retail - 0.5% | |||
Susser Holdings Corp. (a) | 22,405 | 197,612 | |
Hypermarkets & Super Centers - 1.1% | |||
BJ's Wholesale Club, Inc. (a) | 1,900 | 64,201 | |
Costco Wholesale Corp. | 6,900 | 396,267 | |
| 460,468 | ||
TOTAL FOOD & STAPLES RETAILING | 658,080 | ||
HOTELS, RESTAURANTS & LEISURE - 20.4% | |||
Casinos & Gaming - 3.7% | |||
International Game Technology | 16,200 | 297,108 | |
Las Vegas Sands Corp. unit | 1,550 | 411,262 | |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a)(c) | 27,900 | 99,603 | |
| |||
Shares | Value | ||
MGM Mirage, Inc. (a)(c) | 7,500 | $ 82,950 | |
Sands China Ltd. | 43,600 | 61,660 | |
WMS Industries, Inc. (a) | 14,100 | 522,828 | |
| 1,475,411 | ||
Hotels, Resorts & Cruise Lines - 5.5% | |||
Carnival Corp. unit | 18,600 | 619,938 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 3,200 | 98,432 | |
Royal Caribbean Cruises Ltd. (a) | 4,800 | 125,232 | |
Starwood Hotels & Resorts Worldwide, Inc. | 16,300 | 543,116 | |
Wyndham Worldwide Corp. | 39,300 | 824,907 | |
| 2,211,625 | ||
Leisure Facilities - 0.4% | |||
Vail Resorts, Inc. (a)(c) | 5,000 | 168,500 | |
Restaurants - 10.8% | |||
BJ's Restaurants, Inc. (a) | 9,700 | 205,058 | |
Darden Restaurants, Inc. | 15,600 | 576,576 | |
Jack in the Box, Inc. (a) | 6,800 | 132,668 | |
McDonald's Corp. | 34,600 | 2,160,078 | |
P.F. Chang's China Bistro, Inc. (a)(c) | 4,400 | 169,840 | |
Sonic Corp. (a) | 15,700 | 132,351 | |
Starbucks Corp. (a) | 32,100 | 699,459 | |
Texas Roadhouse, Inc. Class A (a) | 18,700 | 217,481 | |
| 4,293,511 | ||
TOTAL HOTELS, RESTAURANTS & LEISURE | 8,149,047 | ||
HOUSEHOLD DURABLES - 3.9% | |||
Home Furnishings - 1.1% | |||
Mohawk Industries, Inc. (a) | 5,400 | 223,614 | |
Tempur-Pedic International, Inc. (a) | 8,400 | 209,076 | |
| 432,690 | ||
Homebuilding - 1.9% | |||
Lennar Corp. Class A | 7,930 | 121,805 | |
M.D.C. Holdings, Inc. | 1,500 | 50,400 | |
Meritage Homes Corp. (a) | 5,100 | 114,189 | |
NVR, Inc. (a) | 100 | 68,414 | |
Pulte Homes, Inc. | 27,607 | 290,426 | |
Toll Brothers, Inc. (a) | 7,000 | 129,290 | |
| 774,524 | ||
Household Appliances - 0.9% | |||
Black & Decker Corp. | 800 | 51,728 | |
Whirlpool Corp. | 3,800 | 285,684 | |
| 337,412 | ||
TOTAL HOUSEHOLD DURABLES | 1,544,626 | ||
INTERNET & CATALOG RETAIL - 4.7% | |||
Internet Retail - 4.7% | |||
Amazon.com, Inc. (a) | 12,200 | 1,530,002 | |
Common Stocks - continued | |||
Shares | Value | ||
INTERNET & CATALOG RETAIL - CONTINUED | |||
Internet Retail - continued | |||
Blue Nile, Inc. (a) | 2,105 | $ 108,513 | |
Expedia, Inc. (a) | 10,300 | 220,523 | |
| 1,859,038 | ||
INTERNET SOFTWARE & SERVICES - 2.4% | |||
Internet Software & Services - 2.4% | |||
Baidu.com, Inc. sponsored ADR (a) | 200 | 82,342 | |
Google, Inc. Class A (a) | 1,200 | 635,304 | |
GREE, Inc. | 1,300 | 75,751 | |
NetEase.com, Inc. sponsored ADR (a) | 1,700 | 55,760 | |
Tencent Holdings Ltd. | 4,900 | 91,639 | |
| 940,796 | ||
LEISURE EQUIPMENT & PRODUCTS - 0.4% | |||
Leisure Products - 0.4% | |||
Polaris Industries, Inc. (c) | 4,000 | 176,840 | |
MACHINERY - 0.5% | |||
Industrial Machinery - 0.5% | |||
The Stanley Works | 3,600 | 184,500 | |
MEDIA - 21.1% | |||
Advertising - 2.1% | |||
Interpublic Group of Companies, Inc. (a) | 60,774 | 392,600 | |
Lamar Advertising Co. Class A (a) | 7,496 | 214,386 | |
National CineMedia, Inc. | 14,300 | 214,214 | |
| 821,200 | ||
Broadcasting - 0.2% | |||
Discovery Communications, Inc. Class C (a) | 3,800 | 99,788 | |
Cable & Satellite - 7.4% | |||
Cablevision Systems Corp. - NY Group Class A | 14,500 | 371,780 | |
Comcast Corp. Class A | 44,050 | 697,312 | |
DIRECTV (a) | 21,802 | 661,691 | |
DISH Network Corp. Class A | 9,700 | 177,122 | |
Liberty Media Corp. Starz Series A (a) | 1,300 | 60,970 | |
Time Warner Cable, Inc. | 16,797 | 732,181 | |
Virgin Media, Inc. (c) | 16,700 | 236,973 | |
| 2,938,029 | ||
Movies & Entertainment - 10.2% | |||
DreamWorks Animation SKG, Inc. Class A (a) | 3,000 | 116,820 | |
News Corp.: | |||
Class A | 21,800 | 274,898 | |
Class B (c) | 15,000 | 220,200 | |
The Walt Disney Co. | 74,200 | 2,192,610 | |
Time Warner, Inc. | 19,885 | 545,843 | |
Viacom, Inc. Class B (non-vtg.) (a) | 25,200 | 734,328 | |
| 4,084,699 | ||
| |||
Shares | Value | ||
Publishing - 1.2% | |||
McGraw-Hill Companies, Inc. | 13,400 | $ 475,030 | |
TOTAL MEDIA | 8,418,746 | ||
MULTILINE RETAIL - 7.9% | |||
Department Stores - 1.8% | |||
Kohl's Corp. (a) | 8,600 | 433,182 | |
Nordstrom, Inc. (c) | 8,100 | 279,774 | |
| 712,956 | ||
General Merchandise Stores - 6.1% | |||
Target Corp. | 47,570 | 2,438,912 | |
TOTAL MULTILINE RETAIL | 3,151,868 | ||
PROFESSIONAL SERVICES - 0.3% | |||
Human Resource & Employment Services - 0.3% | |||
Monster Worldwide, Inc. (a) | 8,300 | 129,397 | |
SPECIALTY RETAIL - 21.1% | |||
Apparel Retail - 3.8% | |||
Citi Trends, Inc. (a) | 10,855 | 337,916 | |
Gymboree Corp. (a) | 8,300 | 323,783 | |
Ross Stores, Inc. | 8,700 | 399,591 | |
Urban Outfitters, Inc. (a) | 10,393 | 328,107 | |
Zumiez, Inc. (a)(c) | 10,500 | 133,665 | |
| 1,523,062 | ||
Automotive Retail - 3.1% | |||
Advance Auto Parts, Inc. | 24,100 | 950,745 | |
O'Reilly Automotive, Inc. (a) | 7,400 | 279,720 | |
| 1,230,465 | ||
Computer & Electronics Retail - 1.4% | |||
Best Buy Co., Inc. | 4,100 | 150,265 | |
Conn's, Inc. (a)(c) | 11,086 | 62,303 | |
hhgregg, Inc. (a)(c) | 9,900 | 210,870 | |
RadioShack Corp. | 6,200 | 121,024 | |
| 544,462 | ||
Home Improvement Retail - 7.6% | |||
Home Depot, Inc. | 17,355 | 486,114 | |
Lowe's Companies, Inc. | 104,700 | 2,266,755 | |
Lumber Liquidators Holdings, Inc. (a) | 12,725 | 301,328 | |
| 3,054,197 | ||
Homefurnishing Retail - 1.1% | |||
Bed Bath & Beyond, Inc. (a) | 7,900 | 305,730 | |
Williams-Sonoma, Inc. | 7,400 | 140,452 | |
| 446,182 | ||
Specialty Stores - 4.1% | |||
Cabela's, Inc. Class A (a)(c) | 9,900 | 159,588 | |
OfficeMax, Inc. (a) | 12,300 | 159,531 | |
Signet Jewelers Ltd. (a) | 4,600 | 125,856 | |
Staples, Inc. | 44,338 | 1,040,169 | |
Common Stocks - continued | |||
Shares | Value | ||
SPECIALTY RETAIL - CONTINUED | |||
Specialty Stores - continued | |||
Vitamin Shoppe, Inc. | 5,200 | $ 109,200 | |
West Marine, Inc. (a) | 4,901 | 41,119 | |
| 1,635,463 | ||
TOTAL SPECIALTY RETAIL | 8,433,831 | ||
TEXTILES, APPAREL & LUXURY GOODS - 3.4% | |||
Apparel, Accessories & Luxury Goods - 1.3% | |||
G-III Apparel Group Ltd. (a) | 8,968 | 156,133 | |
Phillips-Van Heusen Corp. | 3,900 | 153,231 | |
VF Corp. | 2,900 | 208,887 | |
| 518,251 | ||
Footwear - 2.1% | |||
Deckers Outdoor Corp. (a) | 2,100 | 206,157 | |
Iconix Brand Group, Inc. (a) | 9,700 | 122,414 | |
NIKE, Inc. Class B | 7,950 | 506,813 | |
| 835,384 | ||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 1,353,635 | ||
TOTAL COMMON STOCKS (Cost $38,028,891) | 39,376,181 | ||
Money Market Funds - 7.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 599,533 | $ 599,533 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 2,238,050 | 2,238,050 | |
TOTAL MONEY MARKET FUNDS (Cost $2,837,583) | 2,837,583 | ||
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $40,866,474) | 42,213,764 | ||
NET OTHER ASSETS - (5.8)% | (2,302,808) | ||
NET ASSETS - 100% | $ 39,910,956 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 547 |
Fidelity Securities Lending Cash Central Fund | 3,884 |
Total | $ 4,431 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 39,376,181 | $ 38,964,919 | $ 411,262 | $ - |
Money Market Funds | 2,837,583 | 2,837,583 | - | - |
Total Investments in Securities | $ 42,213,764 | $ 41,802,502 | $ 411,262 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $5,178,091 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $3,918,129 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Advisor Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $2,150,448) - See accompanying schedule: Unaffiliated issuers (cost $38,028,891) | $ 39,376,181 |
|
Fidelity Central Funds (cost $2,837,583) | 2,837,583 |
|
Total Investments (cost $40,866,474) |
| $ 42,213,764 |
Receivable for investments sold | 621,799 | |
Receivable for fund shares sold | 52,974 | |
Dividends receivable | 17,222 | |
Distributions receivable from Fidelity Central Funds | 1,271 | |
Prepaid expenses | 131 | |
Other receivables | 1,118 | |
Total assets | 42,908,279 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 658,879 | |
Payable for fund shares redeemed | 26,895 | |
Accrued management fee | 21,983 | |
Distribution fees payable | 15,014 | |
Other affiliated payables | 11,922 | |
Other payables and accrued expenses | 24,580 | |
Collateral on securities loaned, at value | 2,238,050 | |
Total liabilities | 2,997,323 | |
|
|
|
Net Assets | $ 39,910,956 | |
Net Assets consist of: |
| |
Paid in capital | $ 46,286,903 | |
Accumulated net investment loss | (42,186) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,681,076) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,347,315 | |
Net Assets | $ 39,910,956 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 11.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.59) | $ 12.30 | |
Class T: | $ 11.22 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.22) | $ 11.63 | |
Class B: | $ 10.43 | |
|
|
|
Class C: | $ 10.44 | |
|
|
|
Institutional Class: | $ 12.05 | |
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.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 251,447 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 4,431 |
Total income |
| 255,881 |
|
|
|
Expenses | ||
Management fee | $ 106,007 | |
Transfer agent fees | 61,531 | |
Distribution fees | 82,181 | |
Accounting and security lending fees | 7,574 | |
Custodian fees and expenses | 6,788 | |
Independent trustees' compensation | 113 | |
Registration fees | 33,228 | |
Audit | 22,448 | |
Legal | 123 | |
Miscellaneous | 283 | |
Total expenses before reductions | 320,276 | |
Expense reductions | (23,083) | 297,193 |
Net investment income (loss) | (41,312) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,747,248 | |
Foreign currency transactions | 200 | |
Total net realized gain (loss) |
| 1,747,448 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,572,388 | |
Assets and liabilities in foreign currencies | 26 | |
Total change in net unrealized appreciation (depreciation) |
| 2,572,414 |
Net gain (loss) | 4,319,862 | |
Net increase (decrease) in net assets resulting from operations | $ 4,278,550 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
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Operations |
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Net investment income (loss) | $ (41,312) | $ 41,542 |
Net realized gain (loss) | 1,747,448 | (6,306,395) |
Change in net unrealized appreciation (depreciation) | 2,572,414 | 3,085,863 |
Net increase (decrease) in net assets resulting from operations | 4,278,550 | (3,178,990) |
Distributions to shareholders from net investment income | (6,476) | (36,930) |
Share transactions - net increase (decrease) | 3,396,208 | 5,542,508 |
Redemption fees | 34 | 4,036 |
Total increase (decrease) in net assets | 7,668,316 | 2,330,624 |
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Net Assets | ||
Beginning of period | 32,242,640 | 29,912,016 |
End of period (including accumulated net investment loss of $42,186 and undistributed net investment income of $5,602, respectively) | $ 39,910,956 | $ 32,242,640 |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 |
Income from Investment Operations |
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Net investment income (loss) E | - J | .04 | .02 | .02 H | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.33 | (1.16) | (3.09) | 1.83 | (.07) | 2.71 |
Total from investment operations | 1.33 | (1.12) | (3.07) | 1.85 | (.11) | 2.64 |
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 | $ 11.59 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 |
Total Return B, C, D | 12.96% | (9.81)% | (21.24)% | 11.67% | (.69)% | 18.85% |
Ratios to Average Net Assets F, I |
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Expenses before reductions | 1.53% A | 1.62% | 1.40% | 1.42% | 1.42% | 1.47% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% |
Expenses net of all reductions | 1.38% A | 1.40% | 1.40% | 1.39% | 1.39% | 1.42% |
Net investment income (loss) | (.03)% A | .42% | .15% | .11% H | (.23)% | (.45)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 15,838 | $ 13,010 | $ 11,899 | $ 19,708 | $ 16,935 | $ 17,887 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 |
Income from Investment Operations |
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Net investment income (loss) E | (.02) | .01 | (.01) | (.02) H | (.07) | (.11) |
Net realized and unrealized gain (loss) | 1.30 | (1.12) | (3.00) | 1.79 | (.07) | 2.66 |
Total from investment operations | 1.28 | (1.11) | (3.01) | 1.77 | (.14) | 2.55 |
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 | $ 11.22 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 |
Total Return B, C, D | 12.88% | (10.04)% | (21.41)% | 11.43% | (.89)% | 18.52% |
Ratios to Average Net Assets F, I |
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Expenses before reductions | 1.81% A | 1.89% | 1.64% | 1.69% | 1.69% | 1.75% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.64% | 1.65% | 1.65% | 1.69% |
Expenses net of all reductions | 1.64% A | 1.65% | 1.62% | 1.61% | 1.62% | 1.67% |
Net investment income (loss) | (.29)% A | .17% | (.08)% | (.10)% H | (.46)% | (.70)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 7,189 | $ 6,738 | $ 9,095 | $ 14,787 | $ 14,267 | $ 16,782 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 |
Income from Investment Operations |
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Net investment income (loss) E | (.04) | (.03) | (.07) | (.10) H | (.15) | (.17) |
Net realized and unrealized gain (loss) | 1.21 | (1.06) | (2.81) | 1.70 | (.07) | 2.55 |
Total from investment operations | 1.17 | (1.09) | (2.88) | 1.60 | (.22) | 2.38 |
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 | $ 10.43 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 |
Total Return B, C, D | 12.63% | (10.53)% | (21.80)% | 10.82% | (1.45)% | 17.97% |
Ratios to Average Net Assets F, I |
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Expenses before reductions | 2.30% A | 2.38% | 2.14% | 2.20% | 2.19% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.14% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.15% | 2.14% | 2.16% |
Net investment income (loss) | (.79)% A | (.33)% | (.60)% | (.64)% H | (.98)% | (1.20)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 3,411 | $ 3,550 | $ 5,090 | $ 11,081 | $ 14,088 | $ 18,862 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 |
Income from Investment Operations |
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Net investment income (loss) E | (.04) | (.03) | (.07) | (.10) H | (.15) | (.17) |
Net realized and unrealized gain (loss) | 1.21 | (1.07) | (2.81) | 1.71 | (.07) | 2.55 |
Total from investment operations | 1.17 | (1.10) | (2.88) | 1.61 | (.22) | 2.38 |
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 | $ 10.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 |
Total Return B, C, D | 12.62% | (10.61)% | (21.77)% | 10.88% | (1.45)% | 17.94% |
Ratios to Average Net Assets F, I |
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Expenses before reductions | 2.22% A | 2.38% | 2.15% | 2.16% | 2.12% | 2.17% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.12% | 2.17% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.15% | 2.12% | 2.14% |
Net investment income (loss) | (.79)% A | (.33)% | (.60)% | (.64)% H | (.95)% | (1.18)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 6,439 | $ 2,955 | $ 3,430 | $ 8,051 | $ 7,160 | $ 8,505 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 |
Income from Investment Operations |
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Net investment income (loss) D | .01 | .06 | .06 | .06 G | - I | (.03) |
Net realized and unrealized gain (loss) | 1.39 | (1.20) | (3.22) | 1.89 | (.07) | 2.76 |
Total from investment operations | 1.40 | (1.14) | (3.16) | 1.95 | (.07) | 2.73 |
Distributions from net investment income | (.01) | (.04) | - | (.06) | - | - |
Distributions from net realized gain | - | - | (1.41) | (2.30) | (.12) | (.53) |
Total distributions | (.01) | (.04) | (1.41) | (2.36) | (.12) | (.53) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.05 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 |
Total Return B, C | 13.16% | (9.59)% | (21.09)% | 12.04% | (.44)% | 19.08% |
Ratios to Average Net Assets E, H |
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Expenses before reductions | 1.17% A | 1.15% | 1.14% | 1.15% | 1.18% | 1.26% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.14% | 1.15% | 1.15% | 1.20% |
Expenses net of all reductions | 1.13% A | 1.15% | 1.14% | 1.14% | 1.14% | 1.17% |
Net investment income (loss) | .22% A | .67% | .40% | .36% G | .02% | (.21)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 7,033 | $ 5,990 | $ 398 | $ 1,385 | $ 1,144 | $ 1,371 |
Portfolio turnover rate F | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Consumer Discretionary
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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 deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,075,559 |
|
Gross unrealized depreciation | (3,038,348) |
|
Net unrealized appreciation (depreciation) | $ 1,037,211 |
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|
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Tax cost | $ 41,176,553 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $26,143,749 and $22,890,760, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 18,889 | $ - |
Class T | .25% | .25% | 18,156 | - |
Class B | .75% | .25% | 18,328 | 13,765 |
Class C | .75% | .25% | 26,808 | 3,633 |
|
|
| $ 82,181 | $ 17,398 |
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 |
Class A | $ 4,495 |
Class T | 780 |
Class B* | 2,669 |
Class C* | 235 |
| $ 8,179 |
* 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 |
Class A | $ 26,127 | .35 |
Class T | 13,219 | .36 |
Class B | 6,428 | .35 |
Class C | 8,165 | .31 |
Institutional Class | 7,592 | .23 |
| $ 61,531 |
|
* Annualized
Consumer Discretionary
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $581 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $71 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $3,884.
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 | Reimbursement |
Class A | 1.40% | $ 9,971 |
Class T | 1.65% | 5,617 |
Class B | 2.15% | 2,652 |
Class C | 2.15% | 1,727 |
Institutional Class | 1.15% | 634 |
|
| $ 20,601 |
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 $2,482 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ - | $ 24,249 |
Class T | - | 11,523 |
Institutional Class | 6,476 | 1,158 |
Total | $ 6,476 | $ 36,930 |
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 | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 241,161 | 816,977 | $ 2,734,298 | $ 7,713,175 |
Reinvestment of distributions | - | 2,650 | - | 22,145 |
Shares redeemed | (143,448) | (593,853) | (1,640,927) | (5,358,348) |
Net increase (decrease) | 97,713 | 225,774 | $ 1,093,371 | $ 2,376,972 |
Class T |
|
|
|
|
Shares sold | 29,397 | 78,811 | $ 320,970 | $ 695,608 |
Reinvestment of distributions | - | 1,356 | - | 11,014 |
Shares redeemed | (66,582) | (223,538) | (736,980) | (1,973,930) |
Net increase (decrease) | (37,185) | (143,371) | $ (416,010) | $ (1,267,308) |
Class B |
|
|
|
|
Shares sold | 20,408 | 72,993 | $ 206,034 | $ 620,027 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (76,644) | (181,364) | (783,193) | (1,535,455) |
Net increase (decrease) | (56,236) | (108,371) | $ (577,159) | $ (915,428) |
Class C |
|
|
|
|
Shares sold | 331,567 | 90,426 | $ 3,340,053 | $ 763,994 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (33,594) | (102,729) | (336,022) | (841,041) |
Net increase (decrease) | 297,973 | (12,303) | $ 3,004,031 | $ (77,047) |
Institutional Class |
|
|
|
|
Shares sold | 100,845 | 581,111 | $ 1,182,890 | $ 5,891,294 |
Reinvestment of distributions | 555 | 104 | 6,322 | 903 |
Shares redeemed | (79,651) | (52,903) | (897,237) | (466,878) |
Net increase (decrease) | 21,749 | 528,312 | $ 291,975 | $ 5,425,319 |
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.
Consumer Discretionary
Advisor Electronics Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,053.90 | $ 7.25 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.40 | $ 8.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,050.10 | $ 11.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,050.20 | $ 11.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,055.30 | $ 5.96 |
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).
Electronics
Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Intel Corp. | 23.6 | 23.5 |
Texas Instruments, Inc. | 6.5 | 9.3 |
Applied Materials, Inc. | 5.5 | 6.0 |
Micron Technology, Inc. | 4.6 | 3.1 |
Marvell Technology Group Ltd. | 4.5 | 3.4 |
Fairchild Semiconductor International, Inc. | 3.0 | 1.9 |
Altera Corp. | 2.9 | 0.2 |
Xilinx, Inc. | 2.7 | 1.5 |
NVIDIA Corp. | 2.6 | 1.9 |
Amkor Technology, Inc. | 2.3 | 1.7 |
| 58.2 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Semiconductors & Semiconductor Equipment | 88.4% |
|
| Electronic Equipment & Components | 3.5% |
|
| Computers & Peripherals | 2.6% |
|
| Communications Equipment | 2.2% |
|
| Electrical Equipment | 0.5% |
|
| All Others* | 2.8% |
|
As of July 31, 2009 | |||
| Semiconductors & Semiconductor Equipment | 85.3% |
|
| Electronic Equipment & Components | 3.8% |
|
| Computers & Peripherals | 3.2% |
|
| Communications Equipment | 1.8% |
|
| Electrical Equipment | 0.4% |
|
| All Others* | 5.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Electronics Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 2.2% | |||
Communications Equipment - 2.2% | |||
QUALCOMM, Inc. | 8,976 | $ 351,769 | |
COMPUTERS & PERIPHERALS - 2.6% | |||
Computer Hardware - 0.5% | |||
Dell, Inc. (a) | 3,600 | 46,440 | |
Hewlett-Packard Co. | 725 | 34,126 | |
| 80,566 | ||
Computer Storage & Peripherals - 2.1% | |||
SanDisk Corp. (a) | 4,000 | 101,680 | |
Seagate Technology | 9,100 | 152,243 | |
Western Digital Corp. (a) | 2,000 | 75,980 | |
| 329,903 | ||
TOTAL COMPUTERS & PERIPHERALS | 410,469 | ||
ELECTRICAL EQUIPMENT - 0.4% | |||
Electrical Components & Equipment - 0.4% | |||
Motech Industries, Inc. | 1 | 4 | |
SunPower Corp. Class B (a) | 3,400 | 63,138 | |
| 63,142 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 3.5% | |||
Electronic Components - 0.1% | |||
Vishay Intertechnology, Inc. (a) | 2,999 | 22,612 | |
Electronic Manufacturing Services - 2.8% | |||
Benchmark Electronics, Inc. (a) | 4,565 | 83,174 | |
DDi Corp. (a) | 14,342 | 61,814 | |
Flextronics International Ltd. (a) | 33,100 | 209,854 | |
Jabil Circuit, Inc. | 2,346 | 33,970 | |
Tyco Electronics Ltd. | 2,200 | 54,736 | |
| 443,548 | ||
Technology Distributors - 0.6% | |||
Arrow Electronics, Inc. (a) | 1,600 | 42,032 | |
Avnet, Inc. (a) | 2,069 | 54,704 | |
| 96,736 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 562,896 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | 1 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 88.4% | |||
Semiconductor Equipment - 17.9% | |||
Advanced Energy Industries, Inc. (a) | 200 | 2,624 | |
Aixtron AG | 1,700 | 51,139 | |
Amkor Technology, Inc. (a)(c) | 64,567 | 367,386 | |
Applied Materials, Inc. | 71,400 | 869,652 | |
ASM International NV (NASDAQ) (a) | 2,500 | 57,350 | |
ASML Holding NV (NY Shares) | 5,430 | 169,688 | |
ATMI, Inc. (a) | 1,200 | 20,136 | |
| |||
Shares | Value | ||
Brooks Automation, Inc. (a) | 300 | $ 2,502 | |
Cabot Microelectronics Corp. (a) | 100 | 3,515 | |
Cohu, Inc. | 100 | 1,295 | |
Cymer, Inc. (a) | 3,100 | 97,247 | |
Entegris, Inc. (a) | 6,561 | 23,882 | |
KLA-Tencor Corp. | 2,930 | 82,626 | |
Kulicke & Soffa Industries, Inc. (a) | 17,066 | 78,674 | |
Lam Research Corp. (a) | 9,390 | 309,964 | |
LTX-Credence Corp. (a) | 2,444 | 6,134 | |
Mattson Technology, Inc. (a) | 8,330 | 27,489 | |
MEMC Electronic Materials, Inc. (a) | 15,936 | 200,475 | |
Novellus Systems, Inc. (a) | 1,000 | 20,900 | |
Teradyne, Inc. (a)(c) | 11,700 | 109,278 | |
Tessera Technologies, Inc. (a) | 4,446 | 76,338 | |
Ultratech, Inc. (a) | 200 | 2,728 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 5,600 | 164,248 | |
Verigy Ltd. (a) | 7,800 | 84,552 | |
| 2,829,822 | ||
Semiconductors - 70.5% | |||
Actel Corp. (a) | 100 | 1,102 | |
Advanced Analogic Technologies, Inc. (a) | 12,088 | 40,374 | |
Advanced Micro Devices, Inc. (a) | 10,200 | 76,092 | |
Altera Corp. | 21,538 | 459,190 | |
Analog Devices, Inc. | 1,610 | 43,406 | |
Applied Micro Circuits Corp. (a) | 11,878 | 87,066 | |
ARM Holdings PLC sponsored ADR | 6,100 | 55,327 | |
Atheros Communications, Inc. (a) | 2,078 | 66,641 | |
Atmel Corp. (a) | 66,571 | 308,889 | |
AuthenTec, Inc. (a) | 17,100 | 43,776 | |
Avago Technologies Ltd. | 17,000 | 295,460 | |
Broadcom Corp. Class A (a) | 11,640 | 311,021 | |
Cypress Semiconductor Corp. (a) | 1,300 | 13,065 | |
Diodes, Inc. (a) | 200 | 3,336 | |
DSP Group, Inc. (a) | 200 | 1,378 | |
Exar Corp. (a) | 200 | 1,406 | |
Fairchild Semiconductor International, Inc. (a) | 52,804 | 474,180 | |
Himax Technologies, Inc. sponsored ADR | 17,500 | 51,975 | |
Integrated Device Technology, Inc. (a) | 14,200 | 80,514 | |
Intel Corp. | 192,558 | 3,735,624 | |
International Rectifier Corp. (a) | 7,263 | 131,025 | |
Intersil Corp. Class A | 17,860 | 240,574 | |
Linear Technology Corp. | 400 | 10,440 | |
LSI Corp. (a) | 17,338 | 86,517 | |
Marvell Technology Group Ltd. (a) | 40,764 | 710,517 | |
Maxim Integrated Products, Inc. | 400 | 6,992 | |
Micron Technology, Inc. (a) | 83,292 | 726,306 | |
Microsemi Corp. (a) | 6,466 | 96,602 | |
Monolithic Power Systems, Inc. (a) | 3,668 | 75,634 | |
National Semiconductor Corp. | 20,268 | 268,754 | |
NVIDIA Corp. (a) | 26,980 | 415,222 | |
O2Micro International Ltd. sponsored ADR (a) | 3,100 | 14,539 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
Omnivision Technologies, Inc. (a) | 6,200 | $ 79,980 | |
ON Semiconductor Corp. (a) | 31,104 | 224,260 | |
PMC-Sierra, Inc. (a) | 7,200 | 57,240 | |
RF Micro Devices, Inc. (a) | 8,300 | 31,955 | |
Samsung Electronics Co. Ltd. | 129 | 87,269 | |
Silicon Storage Technology, Inc. (a) | 500 | 1,335 | |
Skyworks Solutions, Inc. (a) | 8,450 | 107,231 | |
Standard Microsystems Corp. (a) | 4,617 | 92,109 | |
STATS ChipPAC Ltd. (a) | 50,000 | 37,689 | |
Texas Instruments, Inc. | 45,677 | 1,027,733 | |
Volterra Semiconductor Corp. (a) | 2,300 | 44,827 | |
Xilinx, Inc. | 18,200 | 429,156 | |
Zoran Corp. (a) | 900 | 9,873 | |
| 11,163,601 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 13,993,423 | ||
TOTAL COMMON STOCKS (Cost $16,956,662) | 15,381,700 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount |
| ||
ELECTRICAL EQUIPMENT - 0.1% | ||||
Electrical Components & Equipment - 0.1% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 10,000 | 10,435 | ||
Money Market Funds - 1.7% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 153,318 | $ 153,318 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 111,750 | 111,750 | |
TOTAL MONEY MARKET FUNDS (Cost $265,068) | 265,068 | ||
TOTAL INVESTMENT PORTFOLIO - 98.9% (Cost $17,231,730) | 15,657,203 |
NET OTHER ASSETS - 1.1% | 179,567 | ||
NET ASSETS - 100% | $ 15,836,770 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 366 |
Fidelity Securities Lending Cash Central Fund | 105 |
Total | $ 471 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 15,381,700 | $ 15,330,560 | $ 51,139 | $ 1 |
Convertible Bonds | 10,435 | - | 10,435 | - |
Money Market Funds | 265,068 | 265,068 | - | - |
Total Investments in Securities | $ 15,657,203 | $ 15,595,628 | $ 61,574 | $ 1 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (23,884) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | 23,885 |
Ending Balance | $ 1 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ (23,884) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.1% |
Bermuda | 4.5% |
Singapore | 3.9% |
Netherlands | 1.5% |
Cayman Islands | 1.4% |
Others (individually less than 1%) | 1.6% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $12,832,682 of which $4,774,109, $2,265,871, $279,201, $310,663 and $5,202,838 will expire on July 31, 2011, 2012, 2013, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $2,011,669 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Advisor Electronics Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $106,820) - See accompanying schedule: Unaffiliated issuers (cost $16,966,662) | $ 15,392,135 |
|
Fidelity Central Funds (cost $265,068) | 265,068 |
|
Total Investments (cost $17,231,730) |
| $ 15,657,203 |
Cash | 22,559 | |
Receivable for investments sold | 706,826 | |
Receivable for fund shares sold | 49,440 | |
Dividends receivable | 6,161 | |
Interest receivable | 139 | |
Distributions receivable from Fidelity Central Funds | 54 | |
Prepaid expenses | 58 | |
Receivable from investment adviser for expense reductions | 4,005 | |
Other receivables | 217 | |
Total assets | 16,446,662 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 420,105 | |
Payable for fund shares redeemed | 32,195 | |
Accrued management fee | 8,094 | |
Distribution fees payable | 7,800 | |
Other affiliated payables | 5,199 | |
Other payables and accrued expenses | 24,749 | |
Collateral on securities loaned, at value | 111,750 | |
Total liabilities | 609,892 | |
|
|
|
Net Assets | $ 15,836,770 | |
Net Assets consist of: |
| |
Paid in capital | $ 31,454,091 | |
Accumulated net investment loss | (26,904) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (14,015,900) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,574,517) | |
Net Assets | $ 15,836,770 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 6.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $6.92) | $ 7.34 | |
Class T: | $ 6.79 | |
|
|
|
Maximum offering price per share (100/96.50 of $6.79) | $ 7.04 | |
Class B: | $ 6.50 | |
|
|
|
Class C: | $ 6.49 | |
|
|
|
Institutional Class: | $ 7.09 | |
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.
Electronics
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 92,148 |
Interest |
| 8,895 |
Income from Fidelity Central Funds |
| 471 |
Total income |
| 101,514 |
|
|
|
Expenses | ||
Management fee | $ 43,848 | |
Transfer agent fees | 28,414 | |
Distribution fees | 42,579 | |
Accounting and security lending fees | 3,060 | |
Custodian fees and expenses | 13,589 | |
Independent trustees' compensation | 45 | |
Registration fees | 42,191 | |
Audit | 21,821 | |
Legal | 91 | |
Miscellaneous | 120 | |
Total expenses before reductions | 195,758 | |
Expense reductions | (64,031) | 131,727 |
Net investment income (loss) | (30,213) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,334,374 | |
Foreign currency transactions | (308) | |
Total net realized gain (loss) |
| 1,334,066 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (657,177) | |
Assets and liabilities in foreign currencies | 27 | |
Total change in net unrealized appreciation (depreciation) |
| (657,150) |
Net gain (loss) | 676,916 | |
Net increase (decrease) in net assets resulting from operations | $ 646,703 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (30,213) | $ 34,721 |
Net realized gain (loss) | 1,334,066 | (3,412,258) |
Change in net unrealized appreciation (depreciation) | (657,150) | 2,662,881 |
Net increase (decrease) in net assets resulting from operations | 646,703 | (714,656) |
Distributions to shareholders from net investment income | (30,683) | - |
Share transactions - net increase (decrease) | 1,011,639 | 612,433 |
Redemption fees | 917 | 572 |
Total increase (decrease) in net assets | 1,628,576 | (101,651) |
|
|
|
Net Assets | ||
Beginning of period | 14,208,194 | 14,309,845 |
End of period (including accumulated net investment loss of $26,904 and undistributed net investment income of $33,992, respectively) | $ 15,836,770 | $ 14,208,194 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | .04 | - I | (.03) | (.04) | (.07) |
Net realized and unrealized gain (loss) | .36 | (.24) | (2.32) | 1.76 | (.62) | 1.53 |
Total from investment operations | .36 | (.20) | (2.32) | 1.73 | (.66) | 1.46 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.92 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 |
Total Return B, C, D | 5.39% | (2.95)% | (25.47)% | 23.44% | (8.21)% | 22.19% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.20% A | 2.44% | 1.72% | 1.60% | 1.50% | 1.59% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.39% A | 1.40% | 1.39% | 1.38% | 1.36% | 1.38% |
Net investment income (loss) | (.09)% A | .69% | (.02)% | (.35)% | (.52)% | (.96)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 6,103 | $ 5,433 | $ 3,970 | $ 7,551 | $ 7,916 | $ 11,397 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | .02 | (.02) | (.05) | (.06) | (.08) |
Net realized and unrealized gain (loss) | .35 | (.23) | (2.29) | 1.74 | (.61) | 1.51 |
Total from investment operations | .34 | (.21) | (2.31) | 1.69 | (.67) | 1.43 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.79 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 |
Total Return B, C, D | 5.24% | (3.15)% | (25.72)% | 23.18% | (8.42)% | 21.90% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.49% A | 2.77% | 2.02% | 1.89% | 1.82% | 1.89% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.69% |
Expenses net of all reductions | 1.64% A | 1.65% | 1.64% | 1.64% | 1.61% | 1.61% |
Net investment income (loss) | (.34)% A | .44% | (.27)% | (.60)% | (.77)% | (1.20)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,590 | $ 4,195 | $ 4,635 | $ 8,103 | $ 9,048 | $ 12,085 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | - I | (.06) | (.09) | (.10) | (.12) |
Net realized and unrealized gain (loss) | .34 | (.24) | (2.21) | 1.69 | (.58) | 1.48 |
Total from investment operations | .31 | (.24) | (2.27) | 1.60 | (.68) | 1.36 |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.50 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 |
Total Return B, C, D | 5.01% | (3.73)% | (26.09)% | 22.54% | (8.74)% | 21.18% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.96% A | 3.22% | 2.48% | 2.36% | 2.29% | 2.41% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.21% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.13% | 2.11% | 2.13% |
Net investment income (loss) | (.84)% A | (.06)% | (.77)% | (1.10)% | (1.27)% | (1.72)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,182 | $ 1,197 | $ 2,027 | $ 4,572 | $ 6,123 | $ 8,963 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | - I | (.06) | (.09) | (.10) | (.11) |
Net realized and unrealized gain (loss) | .34 | (.24) | (2.21) | 1.69 | (.58) | 1.47 |
Total from investment operations | .31 | (.24) | (2.27) | 1.60 | (.68) | 1.36 |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.49 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 |
Total Return B, C, D | 5.02% | (3.74)% | (26.12)% | 22.57% | (8.75)% | 21.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.96% A | 3.21% | 2.47% | 2.34% | 2.26% | 2.31% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.18% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.13% | 2.11% | 2.11% |
Net investment income (loss) | (.84)% A | (.06)% | (.77)% | (1.10)% | (1.27)% | (1.69)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,417 | $ 3,016 | $ 3,325 | $ 8,389 | $ 7,009 | $ 11,058 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .05 | .02 | (.01) | (.02) | (.05) |
Net realized and unrealized gain (loss) | .36 | (.24) | (2.38) | 1.80 | (.62) | 1.55 |
Total from investment operations | .37 | (.19) | (2.36) | 1.79 | (.64) | 1.50 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 7.09 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 |
Total Return B, C | 5.53% | (2.74)% | (25.38)% | 23.83% | (7.85)% | 22.56% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.90% A | 2.16% | 1.47% | 1.26% | 1.11% | 1.16% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.11% | 1.16% |
Expenses net of all reductions | 1.14% A | 1.15% | 1.14% | 1.13% | 1.07% | 1.08% |
Net investment income (loss) | .16% A | .94% | .23% | (.10)% | (.23)% | (.67)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 546 | $ 367 | $ 353 | $ 730 | $ 750 | $ 899 |
Portfolio turnover rate F | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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.
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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Electronics
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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. 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, market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,436,991 |
|
Gross unrealized depreciation | (3,447,335) |
|
Net unrealized appreciation (depreciation) | $ (2,010,344) |
|
|
|
|
Tax cost | $ 17,667,547 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,717,847 and $5,527,983, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 7,409 | $ 82 |
Class T | .25% | .25% | 11,400 | 6 |
Class B | .75% | .25% | 6,504 | 4,883 |
Class C | .75% | .25% | 17,266 | 1,837 |
|
|
| $ 42,579 | $ 6,808 |
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 |
Class A | $ 3,287 |
Class T | 2,124 |
Class B* | 681 |
Class C* | 45 |
| $ 6,137 |
* 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 |
Class A | $ 10,462 | .35 |
Class T | 8,848 | .39 |
Class B | 2,318 | .36 |
Class C | 6,119 | .36 |
Institutional Class | 667 | .30 |
| $ 28,414 |
|
* Annualized
Electronics
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $640 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $29 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $105.
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 | Reimbursement |
Class A | 1.40% | $ 23,542 |
Class T | 1.65% | 18,999 |
Class B | 2.15% | 5,257 |
Class C | 2.15% | 13,869 |
Institutional Class | 1.15% | 1,667 |
|
| $ 63,334 |
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 $697 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 22,913 | $ - |
Class T | 5,704 | - |
Institutional Class | 2,066 | - |
Total | $ 30,683 | $ - |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 279,559 | 454,229 | $ 1,993,246 | $ 2,515,743 |
Reinvestment of distributions | 3,053 | - | 21,642 | - |
Shares redeemed | (224,975) | (214,204) | (1,565,055) | (1,126,041) |
Net increase (decrease) | 57,637 | 240,025 | $ 449,833 | $ 1,389,702 |
Class T |
|
|
|
|
Shares sold | 103,904 | 211,424 | $ 734,159 | $ 1,046,750 |
Reinvestment of distributions | 793 | - | 5,519 | - |
Shares redeemed | (78,198) | (256,279) | (531,335) | (1,247,787) |
Net increase (decrease) | 26,499 | (44,855) | $ 208,343 | $ (201,037) |
Class B |
|
|
|
|
Shares sold | 39,310 | 57,656 | $ 264,373 | $ 278,136 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (50,749) | (179,676) | (336,375) | (832,636) |
Net increase (decrease) | (11,439) | (122,020) | $ (72,002) | $ (554,500) |
Class C |
|
|
|
|
Shares sold | 122,424 | 132,135 | $ 809,122 | $ 684,005 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (83,854) | (162,035) | (555,026) | (721,474) |
Net increase (decrease) | 38,570 | (29,900) | $ 254,096 | $ (37,469) |
Institutional Class |
|
|
|
|
Shares sold | 41,795 | 29,924 | $ 306,563 | $ 158,084 |
Reinvestment of distributions | 194 | - | 1,410 | - |
Shares redeemed | (19,426) | (26,319) | (136,604) | (142,347) |
Net increase (decrease) | 22,563 | 3,605 | $ 171,369 | $ 15,737 |
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.
Electronics
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 6.52 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.42% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 7.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.00 | $ 10.56 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.22 | $ 10.06 |
Class C | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.00 | $ 10.40 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,121.90 | $ 4.81 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.67 | $ 4.58 |
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 Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Schlumberger Ltd. | 6.9 | 5.8 |
XTO Energy, Inc. | 6.0 | 0.0 |
Southwestern Energy Co. | 5.2 | 4.9 |
Occidental Petroleum Corp. | 5.2 | 6.2 |
BJ Services Co. | 4.0 | 2.3 |
Petrohawk Energy Corp. | 3.7 | 4.0 |
Anadarko Petroleum Corp. | 3.5 | 1.8 |
Transocean Ltd. | 3.4 | 3.8 |
Alpha Natural Resources, Inc. | 3.1 | 0.5 |
Noble Corp. | 3.1 | 3.3 |
| 44.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Oil, Gas & | 57.5% |
|
| Energy Equipment & Services | 37.2% |
|
| Electrical Equipment | 2.2% |
|
| Construction & Engineering | 0.7% |
|
| Gas Utilities | 0.6% |
|
| All Others* | 1.8% |
|
As of July 31, 2009 | |||
| Oil, Gas & | 58.0% |
|
| Energy Equipment & Services | 37.0% |
|
| Electrical Equipment | 3.1% |
|
| Gas Utilities | 1.1% |
|
| Construction & Engineering | 0.5% |
|
| All Others* | 0.3% |
|
* Includes short-term investments and net other assets. |
Energy
Advisor Energy Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CHEMICALS - 0.1% | |||
Commodity Chemicals - 0.1% | |||
STR Holdings, Inc. | 20,500 | $ 341,940 | |
CONSTRUCTION & ENGINEERING - 0.7% | |||
Construction & Engineering - 0.7% | |||
Jacobs Engineering Group, Inc. (a) | 127,700 | 4,825,783 | |
ELECTRICAL EQUIPMENT - 2.2% | |||
Electrical Components & Equipment - 2.1% | |||
centrotherm photovoltaics AG (a) | 25,223 | 1,406,388 | |
First Solar, Inc. (a)(c) | 49,700 | 5,631,010 | |
JA Solar Holdings Co. Ltd. ADR (a)(c) | 854,495 | 3,674,329 | |
SunPower Corp.: | |||
Class A (a) | 22,200 | 452,658 | |
Class B (a) | 153,700 | 2,854,209 | |
| 14,018,594 | ||
Heavy Electrical Equipment - 0.1% | |||
Vestas Wind Systems AS (a) | 12,700 | 667,951 | |
TOTAL ELECTRICAL EQUIPMENT | 14,686,545 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.2% | |||
Electronic Equipment & Instruments - 0.2% | |||
Itron, Inc. (a) | 21,147 | 1,301,386 | |
ENERGY EQUIPMENT & SERVICES - 37.2% | |||
Oil & Gas Drilling - 12.1% | |||
Atwood Oceanics, Inc. (a) | 31,346 | 1,050,718 | |
Diamond Offshore Drilling, Inc. | 100 | 9,153 | |
Ensco International Ltd. ADR | 89,000 | 3,473,670 | |
Helmerich & Payne, Inc. | 226,353 | 9,468,346 | |
Hercules Offshore, Inc. (a) | 164,594 | 641,917 | |
Nabors Industries Ltd. (a) | 660,322 | 14,725,181 | |
Noble Corp. | 504,343 | 20,335,110 | |
Northern Offshore Ltd. (a) | 1,086,500 | 1,879,220 | |
Patterson-UTI Energy, Inc. | 116,517 | 1,789,701 | |
Pride International, Inc. (a) | 131,287 | 3,886,095 | |
Transocean Ltd. (a) | 260,864 | 22,105,615 | |
| 79,364,726 | ||
Oil & Gas Equipment & Services - 25.1% | |||
Baker Hughes, Inc. | 107,890 | 4,885,259 | |
Basic Energy Services, Inc. (a) | 28,240 | 265,174 | |
BJ Services Co. | 1,276,350 | 26,382,155 | |
Cameron International Corp. (a) | 20,200 | 760,732 | |
Complete Production Services, Inc. (a) | 44,054 | 551,997 | |
Core Laboratories NV | 23,200 | 2,713,240 | |
Dresser-Rand Group, Inc. (a) | 35,900 | 1,061,922 | |
Global Industries Ltd. (a) | 318,103 | 2,217,178 | |
Halliburton Co. | 391,860 | 11,446,231 | |
Helix Energy Solutions Group, Inc. (a) | 69,700 | 739,517 | |
Key Energy Services, Inc. (a) | 73,600 | 711,712 | |
National Oilwell Varco, Inc. | 492,257 | 20,133,311 | |
Newpark Resources, Inc. (a) | 19,781 | 78,926 | |
| |||
Shares | Value | ||
Oceaneering International, Inc. (a) | 89,300 | $ 4,884,710 | |
Oil States International, Inc. (a) | 25,900 | 954,156 | |
Schlumberger Ltd. | 711,300 | 45,139,096 | |
Smith International, Inc. | 461,511 | 13,993,014 | |
Superior Energy Services, Inc. (a) | 184,784 | 4,244,488 | |
Superior Well Services, Inc. (a) | 8,700 | 137,721 | |
TSC Offshore Group Ltd. (a) | 1,705,000 | 562,188 | |
Weatherford International Ltd. (a) | 1,243,964 | 19,505,356 | |
Willbros Group, Inc. (a) | 200,494 | 3,065,553 | |
| 164,433,636 | ||
TOTAL ENERGY EQUIPMENT & SERVICES | 243,798,362 | ||
GAS UTILITIES - 0.6% | |||
Gas Utilities - 0.6% | |||
Questar Corp. | 81,700 | 3,388,916 | |
Zhongyu Gas Holdings Ltd. (a) | 6,538,000 | 665,257 | |
| 4,054,173 | ||
METALS & MINING - 0.2% | |||
Diversified Metals & Mining - 0.2% | |||
Teck Resources Ltd. Class B (sub. vtg.) (a) | 46,300 | 1,515,910 | |
OIL, GAS & CONSUMABLE FUELS - 57.5% | |||
Coal & Consumable Fuels - 10.3% | |||
Alpha Natural Resources, Inc. (a) | 505,964 | 20,547,198 | |
Arch Coal, Inc. | 654,485 | 13,789,999 | |
Centennial Coal Co. Ltd. | 229,855 | 741,860 | |
Cloud Peak Energy, Inc. | 111,100 | 1,500,961 | |
CONSOL Energy, Inc. | 215,713 | 10,054,383 | |
Massey Energy Co. | 525,723 | 20,250,850 | |
PT Bumi Resources Tbk | 2,851,800 | 754,889 | |
SouthGobi Energy Resources Ltd. (a)(d) | 3,900 | 57,809 | |
| 67,697,949 | ||
Integrated Oil & Gas - 11.8% | |||
BG Group PLC | 109,801 | 2,018,497 | |
BP PLC sponsored ADR | 227,500 | 12,767,300 | |
Chevron Corp. | 18,400 | 1,327,008 | |
ConocoPhillips | 1,946 | 93,408 | |
Hess Corp. | 1,253 | 72,411 | |
Marathon Oil Corp. | 677,253 | 20,188,912 | |
Occidental Petroleum Corp. | 433,179 | 33,935,243 | |
Royal Dutch Shell PLC Class A sponsored ADR | 120,700 | 6,685,573 | |
| 77,088,352 | ||
Oil & Gas Exploration & Production - 33.4% | |||
Anadarko Petroleum Corp. | 355,484 | 22,672,770 | |
Apache Corp. | 120,100 | 11,862,277 | |
Arena Resources, Inc. (a) | 86,690 | 3,323,695 | |
Berry Petroleum Co. Class A | 36,900 | 999,252 | |
Brigham Exploration Co. (a) | 118,700 | 1,547,848 | |
Cabot Oil & Gas Corp. | 437,702 | 16,750,856 | |
Canadian Natural Resources Ltd. | 94,300 | 6,018,867 | |
Comstock Resources, Inc. (a) | 181,611 | 7,081,013 | |
Common Stocks - continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - CONTINUED | |||
Oil & Gas Exploration & Production - continued | |||
Denbury Resources, Inc. (a) | 132,543 | $ 1,795,958 | |
EOG Resources, Inc. | 58,984 | 5,333,333 | |
EXCO Resources, Inc. | 737,426 | 12,934,452 | |
Mariner Energy, Inc. (a) | 1,000 | 14,450 | |
Newfield Exploration Co. (a) | 160,050 | 7,832,847 | |
Niko Resources Ltd. | 16,500 | 1,523,623 | |
OPTI Canada, Inc. (a) | 144,200 | 260,269 | |
Painted Pony Petroleum Ltd. Class A (a) | 123,500 | 808,473 | |
Petrobank Energy & Resources Ltd. (a) | 25,100 | 1,240,094 | |
Petrohawk Energy Corp. (a) | 1,079,362 | 24,102,153 | |
Range Resources Corp. | 80,784 | 3,716,064 | |
Southwestern Energy Co. (a) | 793,800 | 34,038,144 | |
Ultra Petroleum Corp. (a) | 109,700 | 5,039,618 | |
Whiting Petroleum Corp. (a) | 160,610 | 10,690,202 | |
XTO Energy, Inc. | 886,510 | 39,511,751 | |
| 219,098,009 | ||
Oil & Gas Refining & Marketing - 2.0% | |||
Frontier Oil Corp. | 413,223 | 5,148,759 | |
Tesoro Corp. | 43,800 | 547,500 | |
Valero Energy Corp. | 311,263 | 5,733,464 | |
World Fuel Services Corp. | 65,800 | 1,581,174 | |
| 13,010,897 | ||
TOTAL OIL, GAS & CONSUMABLE FUELS | 376,895,207 | ||
TOTAL COMMON STOCKS (Cost $592,917,240) | 647,419,306 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
ELECTRICAL EQUIPMENT - 0.0% | ||||
Electrical Components & Equipment - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 320,000 | 333,920 | ||
Money Market Funds - 2.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 6,539,112 | $ 6,539,112 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 7,690,800 | 7,690,800 | |
TOTAL MONEY MARKET FUNDS (Cost $14,229,912) | 14,229,912 | ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $607,467,152) | 661,983,138 | ||
NET OTHER ASSETS - (0.9)% | (6,000,008) | ||
NET ASSETS - 100% | $ 655,983,130 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $57,809 or 0.0% of net assets. |
(e) 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 | $ 6,509 |
Fidelity Securities Lending Cash Central Fund | 112,477 |
Total | $ 118,986 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 647,419,306 | $ 641,447,250 | $ 5,972,056 | $ - |
Convertible Bonds | 333,920 | - | 333,920 | - |
Money Market Funds | 14,229,912 | 14,229,912 | - | - |
Total Investments in Securities | $ 661,983,138 | $ 655,677,162 | $ 6,305,976 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 75.4% |
Switzerland | 9.5% |
Netherlands Antilles | 6.9% |
United Kingdom | 3.8% |
Canada | 2.4% |
Others (individually less than 1%) | 2.0% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $106,222,894 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $79,621,140 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $7,339,680) - See accompanying schedule: Unaffiliated issuers (cost $593,237,240) | $ 647,753,226 |
|
Fidelity Central Funds (cost $14,229,912) | 14,229,912 |
|
Total Investments (cost $607,467,152) |
| $ 661,983,138 |
Receivable for investments sold | 8,295,777 | |
Receivable for fund shares sold | 977,238 | |
Dividends receivable | 39,183 | |
Interest receivable | 4,433 | |
Distributions receivable from Fidelity Central Funds | 12,817 | |
Prepaid expenses | 2,376 | |
Other receivables | 13,204 | |
Total assets | 671,328,166 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,371,864 | |
Payable for fund shares redeemed | 2,424,797 | |
Accrued management fee | 334,493 | |
Distribution fees payable | 301,722 | |
Other affiliated payables | 192,130 | |
Other payables and accrued expenses | 29,230 | |
Collateral on securities loaned, at value | 7,690,800 | |
Total liabilities | 15,345,036 | |
|
|
|
Net Assets | $ 655,983,130 | |
Net Assets consist of: |
| |
Paid in capital | $ 776,128,124 | |
Accumulated net investment loss | (1,337,581) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (173,324,766) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 54,517,353 | |
Net Assets | $ 655,983,130 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 28.93 | |
|
|
|
Maximum offering price per share (100/94.25 of $28.93) | $ 30.69 | |
Class T: | $ 29.62 | |
|
|
|
Maximum offering price per share (100/96.50 of $29.62) | $ 30.69 | |
Class B: | $ 27.32 | |
|
|
|
Class C: | $ 27.51 | |
|
|
|
Institutional Class: | $ 30.10 | |
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 Energy Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,320,774 |
Interest |
| 7,599 |
Income from Fidelity Central Funds |
| 118,986 |
Total income |
| 3,447,359 |
|
|
|
Expenses | ||
Management fee | $ 1,856,811 | |
Transfer agent fees | 1,022,638 | |
Distribution fees | 1,677,663 | |
Accounting and security lending fees | 130,603 | |
Custodian fees and expenses | 16,877 | |
Independent trustees' compensation | 1,984 | |
Registration fees | 64,316 | |
Audit | 28,111 | |
Legal | 2,329 | |
Miscellaneous | 5,621 | |
Total expenses before reductions | 4,806,953 | |
Expense reductions | (22,121) | 4,784,832 |
Net investment income (loss) | (1,337,473) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 35,019,719 | |
Foreign currency transactions | (65,889) | |
Total net realized gain (loss) |
| 34,953,830 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 36,284,116 | |
Assets and liabilities in foreign currencies | 1,309 | |
Total change in net unrealized appreciation (depreciation) |
| 36,285,425 |
Net gain (loss) | 71,239,255 | |
Net increase (decrease) in net assets resulting from operations | $ 69,901,782 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,337,473) | $ (2,256,368) |
Net realized gain (loss) | 34,953,830 | (205,660,800) |
Change in net unrealized appreciation (depreciation) | 36,285,425 | (183,346,614) |
Net increase (decrease) in net assets resulting from operations | 69,901,782 | (391,263,782) |
Distributions to shareholders from net realized gain | - | (137,595,735) |
Share transactions - net increase (decrease) | (7,985,447) | 82,598,513 |
Redemption fees | 19,549 | 78,335 |
Total increase (decrease) in net assets | 61,935,884 | (446,182,669) |
|
|
|
Net Assets | ||
Beginning of period | 594,047,246 | 1,040,229,915 |
End of period (including accumulated net investment loss of $1,337,581 and accumulated net investment loss of $108, respectively) | $ 655,983,130 | $ 594,047,246 |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)E | (.02) | (.04) | (.17) | (.02) H | (.04) | .06 |
Net realized and unrealized gain (loss) | 3.13 | (17.48) | 5.59 | 8.42 | 12.30 | 12.21 |
Total from investment operations | 3.11 | (17.52) | 5.42 | 8.40 | 12.26 | 12.27 |
Distributions from net investment income | - | - | - | - | - | (.06) |
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) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 28.93 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 |
Total Return B,C,D | 12.04% | (38.86)% | 11.52% | 22.08% | 32.90% | 42.69% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.22% A | 1.22% | 1.14% | 1.19% | 1.21% | 1.25% |
Expenses net of fee waivers, if any | 1.22% A | 1.22% | 1.14% | 1.19% | 1.21% | 1.25% |
Expenses net of all reductions | 1.21% A | 1.21% | 1.14% | 1.19% | 1.17% | 1.19% |
Net investment income (loss) | (.17)% A | (.14)% | (.32)% | (.05)% H | (.09)% | .19% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 238,742 | $ 216,595 | $ 355,200 | $ 268,108 | $ 204,391 | $ 90,342 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.29) | (.11) H | (.13) | - J |
Net realized and unrealized gain (loss) | 3.21 | (17.93) | 5.72 | 8.61 | 12.49 | 12.37 |
Total from investment operations | 3.15 | (18.03) | 5.43 | 8.50 | 12.36 | 12.37 |
Distributions from net investment income | - | - | - | - | - | (.03) |
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) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 29.62 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 |
Total Return B,C,D | 11.90% | (38.99)% | 11.27% | 21.84% | 32.60% | 42.41% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.42% A | 1.45% | 1.36% | 1.40% | 1.42% | 1.44% |
Expenses net of fee waivers, if any | 1.42% A | 1.45% | 1.36% | 1.40% | 1.42% | 1.44% |
Expenses net of all reductions | 1.41% A | 1.45% | 1.35% | 1.39% | 1.38% | 1.39% |
Net investment income (loss) | (.37)% A | (.38)% | (.54)% | (.26)% H | (.29)% | (.01)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 245,561 | $ 224,376 | $ 407,784 | $ 382,222 | $ 362,272 | $ 280,820 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.13) | (.22) | (.56) | (.34) H | (.35) | (.18) |
Net realized and unrealized gain (loss) | 2.97 | (16.75) | 5.41 | 8.17 | 11.98 | 11.93 |
Total from investment operations | 2.84 | (16.97) | 4.85 | 7.83 | 11.63 | 11.75 |
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 | - J | .01 | .01 |
Net asset value, end of period | $ 27.32 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 |
Total Return B,C,D | 11.60% | (39.31)% | 10.62% | 21.18% | 31.86% | 41.66% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.98% A | 1.96% | 1.93% | 1.96% | 1.96% | 1.98% |
Expenses net of fee waivers, if any | 1.98% A | 1.96% | 1.93% | 1.96% | 1.96% | 1.98% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.93% | 1.95% | 1.92% | 1.93% |
Net investment income (loss) | (.93)% A | (.89)% | (1.11)% | (.82)% H | (.84)% | (.55)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 50,207 | $ 47,795 | $ 98,602 | $ 116,487 | $ 130,973 | $ 102,003 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.21) | (.54) | (.32) H | (.34) | (.17) |
Net realized and unrealized gain (loss) | 2.98 | (16.87) | 5.45 | 8.20 | 12.06 | 11.99 |
Total from investment operations | 2.86 | (17.08) | 4.91 | 7.88 | 11.72 | 11.82 |
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 | - J | .01 | .01 |
Net asset value, end of period | $ 27.51 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 |
Total Return B,C,D | 11.60% | (39.31)% | 10.71% | 21.22% | 31.96% | 41.70% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.96% | 1.87% | 1.91% | 1.92% | 1.94% |
Expenses net of fee waivers, if any | 1.95% A | 1.96% | 1.87% | 1.91% | 1.92% | 1.94% |
Expenses net of all reductions | 1.94% A | 1.95% | 1.87% | 1.91% | 1.88% | 1.89% |
Net investment income (loss) | (.90)% A | (.88)% | (1.05)% | (.77)% H | (.79)% | (.51)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 97,944 | $ 86,650 | $ 156,393 | $ 135,072 | $ 125,424 | $ 72,832 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .03 | (.02) | .11 G | .12 | .19 |
Net realized and unrealized gain (loss) | 3.25 | (18.06) | 5.74 | 8.67 | 12.56 | 12.44 |
Total from investment operations | 3.27 | (18.03) | 5.72 | 8.78 | 12.68 | 12.63 |
Distributions from net investment income | - | - | - | - | - | (.11) |
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) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 30.10 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 |
Total Return B,C | 12.19% | (38.68)% | 11.83% | 22.47% | 33.35% | 43.21% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | .90% A | .95% | .85% | .88% | .87% | .89% |
Expenses net of fee waivers, if any | .90% A | .95% | .85% | .88% | .87% | .89% |
Expenses net of all reductions | .90% A | .94% | .85% | .88% | .83% | .84% |
Net investment income (loss) | .14% A | .13% | (.03)% | .25% G | .26% | .54% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,529 | $ 18,631 | $ 22,250 | $ 17,127 | $ 19,553 | $ 9,433 |
Portfolio turnover rate F | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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, capital loss carryforwards, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses and losses deferred due to wash sales and excise tax regulations.
Energy
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 105,669,575 |
|
Gross unrealized depreciation | (64,915,306) |
|
Net unrealized appreciation (depreciation) | $ 40,754,269 |
|
|
|
|
Tax cost | $ 621,228,869 |
|
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.
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 $263,757,280 and $280,345,727, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 302,416 | $ 5,821 |
Class T | .25% | .25% | 622,784 | - |
Class B | .75% | .25% | 260,909 | 195,703 |
Class C | .75% | .25% | 491,554 | 87,519 |
|
|
| $ 1,677,663 | $ 289,043 |
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 |
Class A | $ 96,440 |
Class T | 16,146 |
Class B* | 49,718 |
Class C* | 6,635 |
| $ 168,939 |
* 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 |
Class A | $ 398,775 | .33 |
Class T | 352,309 | .28 |
Class B | 89,583 | .34 |
Class C | 151,835 | .31 |
Institutional Class | 30,136 | .27 |
| $ 1,022,638 |
|
* 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 $1,010 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,267 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 $112,477.
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 $22,121 for the period.
Energy
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 46,997,290 |
Class T | - | 53,170,678 |
Class B | - | 13,492,835 |
Class C | - | 21,034,743 |
Institutional Class | - | 2,900,189 |
Total | $ - | $ 137,595,735 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,422,169 | 3,517,345 | $ 41,549,317 | $ 85,305,714 |
Reinvestment of distributions | - | 1,158,188 | - | 42,134,872 |
Shares redeemed | (1,556,199) | (3,358,560) | (45,256,399) | (88,397,497) |
Net increase (decrease) | (134,030) | 1,316,973 | $ (3,707,082) | $ 39,043,089 |
Class T |
|
|
|
|
Shares sold | 730,883 | 2,191,463 | $ 22,039,019 | $ 53,583,018 |
Reinvestment of distributions | - | 1,332,408 | - | 49,792,078 |
Shares redeemed | (917,123) | (2,980,646) | (27,358,608) | (77,608,101) |
Net increase (decrease) | (186,240) | 543,225 | $ (5,319,589) | $ 25,766,995 |
Class B |
|
|
|
|
Shares sold | 162,044 | 529,128 | $ 4,493,526 | $ 12,513,157 |
Reinvestment of distributions | - | 339,485 | - | 11,786,924 |
Shares redeemed | (276,495) | (955,690) | (7,593,884) | (23,571,286) |
Net increase (decrease) | (114,451) | (87,077) | $ (3,100,358) | $ 728,795 |
Class C |
|
|
|
|
Shares sold | 453,094 | 1,217,008 | $ 12,751,292 | $ 28,382,837 |
Reinvestment of distributions | - | 507,064 | - | 17,726,948 |
Shares redeemed | (408,105) | (1,425,212) | (11,275,471) | (35,998,056) |
Net increase (decrease) | 44,989 | 298,860 | $ 1,475,821 | $ 10,111,729 |
Institutional Class |
|
|
|
|
Shares sold | 338,222 | 470,080 | $ 10,517,450 | $ 12,030,140 |
Reinvestment of distributions | - | 54,219 | - | 2,044,586 |
Shares redeemed | (250,943) | (259,760) | (7,851,689) | (7,126,821) |
Net increase (decrease) | 87,279 | 264,539 | $ 2,665,761 | $ 6,947,905 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Advisor Financial Services Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.70 | $ 6.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.56 |
Class T | 1.55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.30 | $ 8.23 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.39 | $ 7.88 |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.90 | $ 10.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.87 | $ 10.41 |
Class C | 2.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.10 | $ 10.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,108.20 | $ 5.31 |
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).
Financial Services
Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 5.0 | 3.6 |
Zions Bancorp | 4.8 | 0.5 |
Citigroup, Inc. | 4.8 | 1.0 |
Bank of America Corp. | 4.7 | 2.8 |
McGraw-Hill Companies, Inc. | 4.4 | 3.5 |
Morgan Stanley | 4.2 | 5.1 |
Wells Fargo & Co. | 3.5 | 1.0 |
Sumitomo Mitsui Financial Group, Inc. | 3.5 | 0.0 |
Comerica, Inc. | 3.5 | 0.0 |
KeyCorp | 3.3 | 2.5 |
| 41.7 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Commercial Banks | 39.9% |
|
| Capital Markets | 23.9% |
|
| Diversified Financial Services | 18.0% |
|
| Insurance | 7.1% |
|
| Media | 4.7% |
|
| All Others* | 6.4% |
|
As of July 31, 2009 | |||
| Capital Markets | 28.9% |
|
| Commercial Banks | 18.3% |
|
| Insurance | 16.1% |
|
| Diversified Financial Services | 10.9% |
|
| IT Services | 8.6% |
|
| All Others* | 17.2% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Financial Services Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CAPITAL MARKETS - 23.9% | |||
Asset Management & Custody Banks - 7.7% | |||
AllianceBernstein Holding LP | 67,900 | $ 1,747,746 | |
Bank of New York Mellon Corp. | 55,598 | 1,617,346 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) (a) | 12,172 | 415,604 | |
EFG International | 187,118 | 2,682,456 | |
Franklin Resources, Inc. | 16,205 | 1,604,781 | |
Janus Capital Group, Inc. | 38,900 | 474,969 | |
Legg Mason, Inc. | 43,353 | 1,117,640 | |
State Street Corp. | 16,761 | 718,712 | |
The Blackstone Group LP | 101,300 | 1,228,769 | |
U.S. Global Investments, Inc. Class A | 31,848 | 306,059 | |
| 11,914,082 | ||
Investment Banking & Brokerage - 16.2% | |||
Broadpoint Gleacher Securities Group, Inc. (a) | 665,522 | 2,695,364 | |
Charles Schwab Corp. | 213,400 | 3,903,086 | |
Evercore Partners, Inc. Class A | 49,600 | 1,481,552 | |
GFI Group, Inc. | 465,278 | 2,265,904 | |
Goldman Sachs Group, Inc. | 17,947 | 2,669,078 | |
Jefferies Group, Inc. (c) | 80,009 | 2,043,430 | |
MF Global Holdings Ltd. (a) | 513,825 | 3,365,554 | |
Morgan Stanley | 241,800 | 6,475,404 | |
TD Ameritrade Holding Corp. (a) | 20,500 | 364,080 | |
| 25,263,452 | ||
TOTAL CAPITAL MARKETS | 37,177,534 | ||
COMMERCIAL BANKS - 39.9% | |||
Diversified Banks - 20.8% | |||
Alpha Bank AE (a) | 218,500 | 2,097,122 | |
Banco Macro SA sponsored ADR | 13,543 | 386,111 | |
Barclays PLC Sponsored ADR (c) | 254,900 | 4,361,339 | |
BBVA Banco Frances SA sponsored ADR (c) | 74,683 | 474,237 | |
China Citic Bank Corp. Ltd. Class H | 1,918,000 | 1,292,015 | |
China Merchants Bank Co. Ltd. (H Shares) | 120,000 | 279,136 | |
Comerica, Inc. | 156,862 | 5,413,308 | |
Mizuho Financial Group, Inc. | 698,000 | 1,353,163 | |
National Bank of Greece SA (a) | 141,300 | 3,088,578 | |
National Bank of Greece SA sponsored ADR | 288,177 | 1,285,269 | |
Sumitomo Mitsui Financial Group, Inc. | 166,500 | 5,413,509 | |
U.S. Bancorp, Delaware | 59,500 | 1,492,260 | |
Wells Fargo & Co. | 191,800 | 5,452,874 | |
| 32,388,921 | ||
Regional Banks - 19.1% | |||
1st Pacific Bancorp (a) | 8,600 | 5,591 | |
Atlantic Southern Financial Group, Inc. (a) | 2,402 | 5,044 | |
Bancorp New Jersey, Inc. | 462 | 5,234 | |
| |||
Shares | Value | ||
BancTrust Financial Group, Inc. (c) | 13,100 | $ 51,090 | |
Bar Harbor Bankshares | 1,132 | 30,575 | |
Boston Private Financial Holdings, Inc. | 31,200 | 223,704 | |
Bridge Capital Holdings (a) | 1,770 | 14,372 | |
Chicopee Bancorp, Inc. (a) | 1,500 | 19,425 | |
Citizens Banking Corp., Michigan (a) | 1,265,700 | 961,932 | |
CoBiz, Inc. | 43,312 | 231,286 | |
Evans Bancorp, Inc. | 600 | 7,350 | |
Fifth Third Bancorp | 115,462 | 1,436,347 | |
First Bancorp, Puerto Rico | 69,900 | 159,372 | |
Frontier Financial Corp. (a)(c) | 44,628 | 190,115 | |
Glacier Bancorp, Inc. (c) | 81,829 | 1,173,428 | |
Huntington Bancshares, Inc. | 93,000 | 445,470 | |
KeyCorp | 708,700 | 5,088,466 | |
Landmark Bancorp, Inc. | 100 | 1,523 | |
MidWestOne Financial Group, Inc. | 900 | 8,550 | |
Monroe Bancorp | 300 | 2,025 | |
Nara Bancorp, Inc. | 36,404 | 332,733 | |
Oriental Financial Group, Inc. | 47,600 | 541,688 | |
PNC Financial Services Group, Inc. | 1,845 | 102,268 | |
Preferred Bank, Los Angeles California | 17,300 | 27,680 | |
Regions Financial Corp. | 474,726 | 3,014,510 | |
Salisbury Bancorp, Inc. | 1,500 | 34,575 | |
Smithtown Bancorp, Inc. | 31,720 | 171,605 | |
Southwest Bancorp, Inc., Oklahoma | 7,300 | 54,677 | |
Sterling Bancshares, Inc. | 67,900 | 346,969 | |
Sun Bancorp, Inc., New Jersey | 21,747 | 82,856 | |
SunTrust Banks, Inc. | 74,153 | 1,804,142 | |
SVB Financial Group (a) | 40,312 | 1,749,138 | |
Tamalpais Bancorp | 25,822 | 22,982 | |
Umpqua Holdings Corp. | 97,184 | 1,201,194 | |
United Security Bancshares, California | 5,950 | 30,048 | |
W Holding Co., Inc. | 7,571 | 143,092 | |
West Bancorp., Inc. | 6,500 | 33,150 | |
Wintrust Financial Corp. | 70,619 | 2,453,304 | |
Zions Bancorp | 396,100 | 7,514,017 | |
| 29,721,527 | ||
TOTAL COMMERCIAL BANKS | 62,110,448 | ||
CONSUMER FINANCE - 0.2% | |||
Consumer Finance - 0.2% | |||
Promise Co. Ltd. (a)(c) | 25,300 | 234,306 | |
DIVERSIFIED FINANCIAL SERVICES - 17.3% | |||
Other Diversified Financial Services - 14.5% | |||
Bank of America Corp. (c) | 483,635 | 7,341,579 | |
Citigroup, Inc. | 2,262,100 | 7,510,172 | |
JPMorgan Chase & Co. | 198,048 | 7,711,990 | |
| 22,563,741 | ||
Specialized Finance - 2.8% | |||
BM&F BOVESPA SA | 10,900 | 73,264 | |
Common Stocks - continued | |||
Shares | Value | ||
DIVERSIFIED FINANCIAL SERVICES - CONTINUED | |||
Specialized Finance - continued | |||
JSE Ltd. | 20,600 | $ 152,691 | |
Moody's Corp. (c) | 146,627 | 4,045,439 | |
| 4,271,394 | ||
TOTAL DIVERSIFIED FINANCIAL SERVICES | 26,835,135 | ||
HOTELS, RESTAURANTS & LEISURE - 0.2% | |||
Casinos & Gaming - 0.2% | |||
Wynn Macau Ltd. | 252,800 | 321,049 | |
INSURANCE - 7.1% | |||
Insurance Brokers - 0.3% | |||
Aon Corp. | 10,500 | 408,450 | |
Multi-Line Insurance - 3.7% | |||
Assurant, Inc. | 26,304 | 826,735 | |
Genworth Financial, Inc. Class A (a) | 267,635 | 3,704,068 | |
Hartford Financial Services Group, Inc. | 48,600 | 1,165,914 | |
| 5,696,717 | ||
Property & Casualty Insurance - 2.0% | |||
CNA Financial Corp. (a) | 72,804 | 1,710,166 | |
XL Capital Ltd. Class A | 87,489 | 1,467,191 | |
| 3,177,357 | ||
Reinsurance - 1.1% | |||
Everest Re Group Ltd. | 19,000 | 1,629,060 | |
Transatlantic Holdings, Inc. | 2,100 | 104,349 | |
| 1,733,409 | ||
TOTAL INSURANCE | 11,015,933 | ||
INTERNET SOFTWARE & SERVICES - 0.9% | |||
Internet Software & Services - 0.9% | |||
China Finance Online Co. Ltd. ADR (a)(c) | 195,815 | 1,452,947 | |
IT SERVICES - 2.6% | |||
Data Processing & Outsourced Services - 2.5% | |||
Euronet Worldwide, Inc. (a) | 90,785 | 1,853,830 | |
MasterCard, Inc. Class A | 2,200 | 549,780 | |
MoneyGram International, Inc. (a)(c) | 471,430 | 1,414,290 | |
| 3,817,900 | ||
IT Consulting & Other Services - 0.1% | |||
Satyam Computer Services Ltd. sponsored ADR (a)(c) | 44,900 | 219,561 | |
TOTAL IT SERVICES | 4,037,461 | ||
MEDIA - 4.7% | |||
Advertising - 0.3% | |||
SearchMedia Holdings Ltd. (a) | 81,000 | 490,860 | |
| |||
Shares | Value | ||
Publishing - 4.4% | |||
McGraw-Hill Companies, Inc. | 192,249 | $ 6,815,227 | |
TOTAL MEDIA | 7,306,087 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% | |||
Diversified Real Estate Activities - 0.4% | |||
Mitsubishi Estate Co. Ltd. | 36,000 | 585,444 | |
Real Estate Development - 1.8% | |||
Central China Real Estate Ltd. | 2,061,000 | 499,060 | |
Xinyuan Real Estate Co. Ltd. ADR (a)(c) | 594,902 | 2,361,761 | |
| 2,860,821 | ||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 3,446,265 | ||
SPECIALTY RETAIL - 0.1% | |||
Home Improvement Retail - 0.1% | |||
Home Depot, Inc. | 6,600 | 184,866 | |
THRIFTS & MORTGAGE FINANCE - 0.6% | |||
Thrifts & Mortgage Finance - 0.6% | |||
BofI Holding, Inc. (a) | 16,300 | 193,481 | |
Cheviot Financial Corp. | 1,500 | 12,135 | |
First Financial Northwest, Inc. | 4,800 | 29,712 | |
Meridian Interstate Bancorp, Inc. (a) | 8,977 | 85,461 | |
Ocean Shore Holding Co. | 3,300 | 30,855 | |
Osage Bancshares, Inc. | 2,800 | 25,200 | |
United Western Bancorp, Inc. | 48,868 | 162,730 | |
Washington Federal, Inc. | 23,304 | 434,620 | |
| 974,194 | ||
TOTAL COMMON STOCKS (Cost $153,988,251) | 155,096,225 | ||
Convertible Preferred Stocks - 0.7% | |||
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 0.7% | |||
Other Diversified Financial Services - 0.7% | |||
Bank of America Corp. | 74,200 | 1,120,420 | |
Money Market Funds - 8.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 707,981 | $ 707,981 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 13,084,748 | 13,084,748 | |
TOTAL MONEY MARKET FUNDS (Cost $13,792,729) | 13,792,729 | ||
TOTAL INVESTMENT PORTFOLIO - 109.3% (Cost $168,893,980) | 170,009,374 |
NET OTHER ASSETS - (9.3)% | (14,480,597) | ||
NET ASSETS - 100% | $ 155,528,777 | ||
Legend |
(a) Non-income producing |
(b) Includes investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 4,736 |
Fidelity Securities Lending Cash Central Fund | 38,939 |
Total | $ 43,675 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 155,096,225 | $ 146,812,465 | $ 8,283,760 | $ - |
Convertible Preferred Stocks | 1,120,420 | 1,120,420 | - | - |
Money Market Funds | 13,792,729 | 13,792,729 | - | - |
Total Investments in Securities | $ 170,009,374 | $ 161,725,614 | $ 8,283,760 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.1% |
Japan | 5.0% |
Greece | 4.1% |
United Kingdom | 2.8% |
Cayman Islands | 2.3% |
Switzerland | 2.0% |
China | 1.9% |
Bermuda | 1.0% |
Others (individually less than 1%) | 0.8% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $55,672,202 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $56,712,899 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Advisor Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,434,169) - See accompanying schedule: Unaffiliated issuers (cost $155,101,251) | $ 156,216,645 |
|
Fidelity Central Funds (cost $13,792,729) | 13,792,729 |
|
Total Investments (cost $168,893,980) |
| $ 170,009,374 |
Cash | 48,089 | |
Receivable for investments sold | 14,430,615 | |
Receivable for fund shares sold | 241,939 | |
Dividends receivable | 46,819 | |
Distributions receivable from Fidelity Central Funds | 4,831 | |
Prepaid expenses | 628 | |
Other receivables | 16,150 | |
Total assets | 184,798,445 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 15,337,904 | |
Payable for fund shares redeemed | 625,621 | |
Accrued management fee | 75,034 | |
Distribution fees payable | 67,885 | |
Other affiliated payables | 49,781 | |
Other payables and accrued expenses | 28,695 | |
Collateral on securities loaned, at value | 13,084,748 | |
Total liabilities | 29,269,668 | |
|
|
|
Net Assets | $ 155,528,777 | |
Net Assets consist of: |
| |
Paid in capital | $ 241,622,297 | |
Accumulated net investment loss | (468,452) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (86,747,598) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,122,530 | |
Net Assets | $ 155,528,777 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 10.45 | |
|
|
|
Maximum offering price per share (100/94.25 of $10.45) | $ 11.09 | |
Class T: | $ 10.44 | |
|
|
|
Maximum offering price per share (100/96.50 of $10.44) | $ 10.82 | |
Class B: | $ 10.23 | |
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|
|
Class C: | $ 10.13 | |
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|
Institutional Class: | $ 10.63 | |
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 Financial Services Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 756,881 |
Interest |
| 41 |
Income from Fidelity Central Funds |
| 43,675 |
Total income |
| 800,597 |
|
|
|
Expenses | ||
Management fee | $ 450,733 | |
Transfer agent fees | 276,311 | |
Distribution fees | 410,854 | |
Accounting and security lending fees | 32,461 | |
Custodian fees and expenses | 18,644 | |
Independent trustees' compensation | 520 | |
Registration fees | 36,600 | |
Audit | 23,877 | |
Legal | 725 | |
Miscellaneous | 1,553 | |
Total expenses before reductions | 1,252,278 | |
Expense reductions | (47,711) | 1,204,567 |
Net investment income (loss) | (403,970) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 32,421,307 | |
Foreign currency transactions | 32,855 | |
Total net realized gain (loss) |
| 32,454,162 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (16,393,071) | |
Assets and liabilities in foreign currencies | 6,853 | |
Total change in net unrealized appreciation (depreciation) |
| (16,386,218) |
Net gain (loss) | 16,067,944 | |
Net increase (decrease) in net assets resulting from operations | $ 15,663,974 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (403,970) | $ 2,607,315 |
Net realized gain (loss) | 32,454,162 | (88,858,385) |
Change in net unrealized appreciation (depreciation) | (16,386,218) | 30,047,773 |
Net increase (decrease) in net assets resulting from operations | 15,663,974 | (56,203,297) |
Distributions to shareholders from net investment income | (1,313,190) | (3,219,822) |
Distributions to shareholders from net realized gain | - | (320,528) |
Total distributions | (1,313,190) | (3,540,350) |
Share transactions - net increase (decrease) | (8,117,453) | 1,444,825 |
Redemption fees | 1,540 | 13,297 |
Total increase (decrease) in net assets | 6,234,871 | (58,285,525) |
|
|
|
Net Assets | ||
Beginning of period | 149,293,906 | 207,579,431 |
End of period (including accumulated net investment loss of $468,452 and undistributed net investment income of $1,248,708, respectively) | $ 155,528,777 | $ 149,293,906 |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | .19 | .30 | .23 | .20 | .19 |
Net realized and unrealized gain (loss) | 1.03 | (3.58) | (6.41) | .92 | 2.02 | 2.48 |
Total from investment operations | 1.02 | (3.39) | (6.11) | 1.15 | 2.22 | 2.67 |
Distributions from net investment income | (.10) | (.24) | (.27) | (.22) | (.26) | (.07) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.10) | (.26) | (1.73) | (3.47) J | (1.89) | (1.83) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.45 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 |
Total Return B, C, D | 10.67% | (25.87)% | (31.67)% | 4.54% | 10.32% | 12.60% |
Ratios to Average Net Assets F, H |
|
|
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|
|
|
Expenses before reductions | 1.29% A | 1.29% | 1.21% | 1.23% | 1.25% | 1.26% |
Expenses net of fee waivers, if any | 1.29% A | 1.29% | 1.21% | 1.23% | 1.25% | 1.26% |
Expenses net of all reductions | 1.24% A | 1.28% | 1.21% | 1.22% | 1.23% | 1.23% |
Net investment income (loss) | (.24)% A | 2.12% | 1.75% | 1.01% | .87% | .88% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 72,234 | $ 68,245 | $ 90,037 | $ 106,722 | $ 85,356 | $ 68,012 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | .16 | .26 | .18 | .15 | .14 |
Net realized and unrealized gain (loss) | 1.03 | (3.56) | (6.41) | .91 | 2.02 | 2.47 |
Total from investment operations | 1.00 | (3.40) | (6.15) | 1.09 | 2.17 | 2.61 |
Distributions from net investment income | (.08) | (.20) | (.19) | (.16) | (.15) | (.05) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.08) | (.22) | (1.65) | (3.41) J | (1.78) | (1.81) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.44 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 |
Total Return B, C, D | 10.53% | (26.00)% | (31.85)% | 4.25% | 10.11% | 12.37% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.55% A | 1.55% | 1.47% | 1.46% | 1.47% | 1.48% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.47% | 1.46% | 1.47% | 1.48% |
Expenses net of all reductions | 1.49% A | 1.54% | 1.47% | 1.46% | 1.46% | 1.46% |
Net investment income (loss) | (.50)% A | 1.86% | 1.50% | .77% | .65% | .66% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 35,671 | $ 34,927 | $ 53,526 | $ 95,426 | $ 113,344 | $ 128,388 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .12 | .18 | .06 | .03 | .03 |
Net realized and unrealized gain (loss) | 1.01 | (3.50) | (6.29) | .89 | 1.97 | 2.41 |
Total from investment operations | .96 | (3.38) | (6.11) | .95 | 2.00 | 2.44 |
Distributions from net investment income | (.06) | (.12) | (.04) | (.02) | (.01) | - |
Distributions from net realized gain | - | (.02) | (1.44) | (3.25) | (1.57) | (1.76) |
Total distributions | (.06) | (.14) | (1.48) | (3.26) J | (1.58) | (1.76) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.23 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 |
Total Return B, C, D | 10.29% | (26.35)% | (32.21)% | 3.71% | 9.52% | 11.78% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.05% A | 2.04% | 1.96% | 1.98% | 1.99% | 2.00% |
Expenses net of fee waivers, if any | 2.05% A | 2.04% | 1.96% | 1.98% | 1.99% | 2.00% |
Expenses net of all reductions | 1.99% A | 2.03% | 1.96% | 1.98% | 1.98% | 1.98% |
Net investment income (loss) | (.99)% A | 1.38% | 1.01% | .25% | .13% | .14% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,211 | $ 12,477 | $ 20,420 | $ 64,837 | $ 113,652 | $ 145,046 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .12 | .17 | .06 | .04 | .04 |
Net realized and unrealized gain (loss) | .99 | (3.48) | (6.24) | .90 | 1.98 | 2.42 |
Total from investment operations | .94 | (3.36) | (6.07) | .96 | 2.02 | 2.46 |
Distributions from net investment income | (.06) | (.15) | (.09) | (.05) | (.02) | (.01) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.60) | (1.76) |
Total distributions | (.06) | (.17) | (1.55) | (3.30) J | (1.62) | (1.77) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 |
Total Return B, C, D | 10.21% | (26.38)% | (32.18)% | 3.75% | 9.58% | 11.88% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.04% A | 2.04% | 1.96% | 1.94% | 1.94% | 1.95% |
Expenses net of fee waivers, if any | 2.04% A | 2.04% | 1.96% | 1.94% | 1.94% | 1.95% |
Expenses net of all reductions | 1.98% A | 2.03% | 1.96% | 1.94% | 1.93% | 1.92% |
Net investment income (loss) | (.99)% A | 1.37% | 1.01% | .29% | .18% | .19% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 30,627 | $ 29,849 | $ 37,777 | $ 55,219 | $ 62,469 | $ 72,181 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | - H | .21 | .36 | .31 | .29 | .29 |
Net realized and unrealized gain (loss) | 1.05 | (3.63) | (6.51) | .93 | 2.05 | 2.50 |
Total from investment operations | 1.05 | (3.42) | (6.15) | 1.24 | 2.34 | 2.79 |
Distributions from net investment income | (.11) | (.25) | (.33) | (.30) | (.37) | (.11) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.11) | (.27) | (1.79) | (3.55) I | (2.00) | (1.87) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.63 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 |
Total Return B, C | 10.82% | (25.68)% | (31.47)% | 4.88% | 10.78% | 13.06% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.04% | .93% | .89% | .86% | .86% |
Expenses net of fee waivers, if any | 1.00% A | 1.04% | .93% | .89% | .86% | .86% |
Expenses net of all reductions | .94% A | 1.03% | .92% | .88% | .85% | .84% |
Net investment income (loss) | .05% A | 2.37% | 2.04% | 1.34% | 1.26% | 1.28% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,786 | $ 3,797 | $ 5,819 | $ 8,474 | $ 11,892 | $ 12,629 |
Portfolio turnover rate F | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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.
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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Financial Services
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 12,621,899 |
|
Gross unrealized depreciation | (16,292,914) |
|
Net unrealized appreciation (depreciation) | $ (3,671,015) |
|
|
|
|
Tax cost | $ 173,680,389 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $207,342,589 and $214,064,423, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 93,129 | $ 182 |
Class T | .25% | .25% | 93,270 | - |
Class B | .75% | .25% | 65,026 | 48,770 |
Class C | .75% | .25% | 159,429 | 29,362 |
|
|
| $ 410,854 | $ 78,314 |
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 |
Class A | $ 15,068 |
Class T | 3,584 |
Class B* | 15,424 |
Class C* | 2,913 |
| $ 36,989 |
* 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 applicable class were as follows:
| Amount | % of |
Class A | $ 127,527 | .34 |
Class T | 65,168 | .35 |
Class B | 22,365 | .34 |
Class C | 54,511 | .34 |
Institutional Class | 6,740 | .30 |
| $ 276,311 |
|
* Annualized
Financial Services
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $6,795 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $314 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $38,939.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $47,711 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 686,640 | $ 1,698,174 |
Class T | 298,090 | 781,807 |
Class B | 78,308 | 182,682 |
Class C | 206,470 | 461,265 |
Institutional Class | 43,682 | 95,894 |
Total | $ 1,313,190 | $ 3,219,822 |
From net realized gain |
|
|
Class A | $ - | $ 139,687 |
Class T | - | 80,989 |
Class B | - | 31,565 |
Class C | - | 60,568 |
Institutional Class | - | 7,719 |
Total | $ - | $ 320,528 |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 902,972 | 2,723,908 | $ 9,502,325 | $ 24,853,928 |
Reinvestment of distributions | 58,808 | 159,397 | 610,428 | 1,638,390 |
Shares redeemed | (1,213,327) | (2,556,039) | (12,701,303) | (22,026,835) |
Net increase (decrease) | (251,547) | 327,266 | $ (2,588,550) | $ 4,465,483 |
Class T |
|
|
|
|
Shares sold | 233,203 | 995,392 | $ 2,449,212 | $ 8,604,735 |
Reinvestment of distributions | 27,047 | 77,111 | 280,751 | 791,775 |
Shares redeemed | (513,643) | (1,475,806) | (5,338,720) | (12,935,480) |
Net increase (decrease) | (253,393) | (403,303) | $ (2,608,757) | $ (3,538,970) |
Class B |
|
|
|
|
Shares sold | 99,832 | 506,058 | $ 1,017,700 | $ 4,460,037 |
Reinvestment of distributions | 6,452 | 19,064 | 65,677 | 185,301 |
Shares redeemed | (250,070) | (776,048) | (2,544,446) | (6,568,493) |
Net increase (decrease) | (143,786) | (250,926) | $ (1,461,069) | $ (1,923,155) |
Class C |
|
|
|
|
Shares sold | 252,172 | 1,273,214 | $ 2,541,990 | $ 11,448,111 |
Reinvestment of distributions | 17,064 | 43,964 | 172,172 | 431,812 |
Shares redeemed | (475,254) | (1,045,476) | (4,796,939) | (8,677,353) |
Net increase (decrease) | (206,018) | 271,702 | $ (2,082,777) | $ 3,202,570 |
Institutional Class |
|
|
|
|
Shares sold | 127,332 | 270,723 | $ 1,358,113 | $ 2,262,133 |
Reinvestment of distributions | 3,007 | 6,287 | 31,721 | 65,572 |
Shares redeemed | (72,130) | (320,256) | (766,134) | (3,088,808) |
Net increase (decrease) | 58,209 | (43,246) | $ 623,700 | $ (761,103) |
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.
Financial Services
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.24% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.20 | $ 6.70 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.95 | $ 6.31 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,143.80 | $ 8.11 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,141.00 | $ 10.74 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,141.40 | $ 10.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,146.80 | $ 5.30 |
Hypothetical A |
| $ 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).
Portfolio/Sector
Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Pfizer, Inc. | 8.1 | 7.6 |
Covidien PLC | 5.7 | 5.5 |
Medco Health Solutions, Inc. | 5.1 | 5.1 |
Express Scripts, Inc. | 4.3 | 4.0 |
Merck & Co., Inc. | 4.0 | 4.7 |
Illumina, Inc. | 3.7 | 3.0 |
Allergan, Inc. | 3.6 | 5.3 |
C. R. Bard, Inc. | 3.2 | 2.6 |
Biogen Idec, Inc. | 3.2 | 2.2 |
WellPoint, Inc. | 2.9 | 0.8 |
| 43.8 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Health Care | 23.8% |
|
| Pharmaceuticals | 23.7% |
|
| Health Care | 20.1% |
|
| Biotechnology | 14.4% |
|
| Life Sciences | 10.2% |
|
| All Others* | 7.8% |
|
As of July 31, 2009 | |||
| Pharmaceuticals | 25.4% |
|
| Health Care | 23.3% |
|
| Health Care | 21.3% |
|
| Biotechnology | 14.4% |
|
| Life Sciences | 10.7% |
|
| All Others* | 4.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Health Care Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 14.4% | |||
Biotechnology - 14.4% | |||
Acorda Therapeutics, Inc. (a) | 71,200 | $ 1,992,176 | |
Affymax, Inc. (a) | 37,500 | 787,500 | |
Alexion Pharmaceuticals, Inc. (a) | 76,498 | 3,547,212 | |
Alnylam Pharmaceuticals, Inc. (a)(c) | 52,137 | 881,115 | |
Amgen, Inc. (a) | 151,812 | 8,877,966 | |
Biogen Idec, Inc. (a) | 250,379 | 13,455,367 | |
BioMarin Pharmaceutical, Inc. (a) | 250,767 | 4,872,403 | |
Cephalon, Inc. (a) | 12,900 | 823,536 | |
Dendreon Corp. (a)(c) | 38,700 | 1,071,990 | |
Genzyme Corp. (a) | 25,300 | 1,372,778 | |
Gilead Sciences, Inc. (a) | 50,811 | 2,452,647 | |
Human Genome Sciences, Inc. (a) | 47,500 | 1,257,325 | |
Incyte Corp. (a)(c) | 313,001 | 3,342,851 | |
Micromet, Inc. (a) | 53,400 | 414,918 | |
Myriad Genetics, Inc. (a) | 82,846 | 1,946,881 | |
OSI Pharmaceuticals, Inc. (a) | 58,500 | 2,001,870 | |
PDL BioPharma, Inc. | 309,400 | 1,980,160 | |
Protalix BioTherapeutics, Inc. (a)(c) | 165,724 | 1,135,209 | |
Targacept, Inc. (a) | 70,898 | 1,485,313 | |
Theravance, Inc. (a) | 56,513 | 619,948 | |
United Therapeutics Corp. (a) | 94,400 | 5,623,408 | |
| 59,942,573 | ||
CHEMICALS - 1.1% | |||
Fertilizers & Agricultural Chemicals - 1.1% | |||
Monsanto Co. | 58,400 | 4,431,392 | |
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Carriage Services, Inc. (a) | 252,255 | 971,182 | |
Stewart Enterprises, Inc. Class A | 186,543 | 945,773 | |
| 1,916,955 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 1.7% | |||
Electronic Equipment & Instruments - 1.7% | |||
Agilent Technologies, Inc. | 250,400 | 7,018,712 | |
FOOD & STAPLES RETAILING - 1.5% | |||
Drug Retail - 1.5% | |||
Walgreen Co. | 175,308 | 6,319,853 | |
HEALTH CARE EQUIPMENT & SUPPLIES - 20.1% | |||
Health Care Equipment - 17.6% | |||
Abiomed, Inc. (a) | 35,909 | 284,399 | |
ArthroCare Corp. (a) | 72,900 | 1,942,785 | |
Baxter International, Inc. | 62,946 | 3,625,060 | |
C. R. Bard, Inc. | 162,765 | 13,491,591 | |
CareFusion Corp. (a) | 103,200 | 2,657,400 | |
Conceptus, Inc. (a) | 94,879 | 1,841,601 | |
Covidien PLC | 470,345 | 23,780,643 | |
Edwards Lifesciences Corp. (a) | 78,568 | 7,041,264 | |
ev3, Inc. (a) | 178,283 | 2,599,366 | |
HeartWare International, Inc. (a) | 27,784 | 1,073,852 | |
| |||
Shares | Value | ||
HeartWare International, Inc. CDI unit (a) | 668,258 | $ 697,270 | |
Micrus Endovascular Corp. (a) | 163,273 | 2,739,721 | |
Nobel Biocare Holding AG (Switzerland) | 98,697 | 2,902,931 | |
NuVasive, Inc. (a)(c) | 69,300 | 1,912,680 | |
Orthofix International NV (a) | 47,417 | 1,428,674 | |
Orthovita, Inc. (a) | 438,153 | 1,594,877 | |
Osmetech PLC (a) | 13,820,627 | 445,320 | |
William Demant Holding AS (a) | 15,123 | 1,180,199 | |
Wright Medical Group, Inc. (a) | 114,571 | 2,048,529 | |
| 73,288,162 | ||
Health Care Supplies - 2.5% | |||
AGA Medical Holdings, Inc. | 46,700 | 669,211 | |
Cooper Companies, Inc. (c) | 90,911 | 3,210,977 | |
InfuSystems Holdings, Inc. (a) | 344,700 | 861,750 | |
InfuSystems Holdings, Inc. warrants 4/11/11 (a) | 41,900 | 2,933 | |
Inverness Medical Innovations, Inc. (a)(c) | 116,978 | 4,722,402 | |
RTI Biologics, Inc. (a) | 234,676 | 741,576 | |
| 10,208,849 | ||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 83,497,011 | ||
HEALTH CARE PROVIDERS & SERVICES - 23.8% | |||
Health Care Distributors & Services - 2.2% | |||
Henry Schein, Inc. (a) | 120,903 | 6,534,807 | |
Profarma Distribuidora de Produtos Farmaceuticos SA | 156,400 | 1,481,029 | |
Sinopharm Group Co. Ltd. Class H | 234,400 | 884,591 | |
| 8,900,427 | ||
Health Care Facilities - 2.4% | |||
Community Health Systems, Inc. (a) | 74,800 | 2,439,976 | |
Emeritus Corp. (a)(c) | 88,371 | 1,608,352 | |
Hanger Orthopedic Group, Inc. (a) | 155,165 | 2,522,983 | |
Sunrise Senior Living, Inc. (a) | 245,575 | 729,358 | |
Universal Health Services, Inc. Class B | 91,418 | 2,665,749 | |
| 9,966,418 | ||
Health Care Services - 10.5% | |||
Clarient, Inc. (a) | 241,600 | 546,016 | |
Emergency Medical Services Corp. | 18,700 | 981,937 | |
Express Scripts, Inc. (a) | 212,843 | 17,849,014 | |
Health Grades, Inc. (a) | 253,898 | 1,101,917 | |
LHC Group, Inc. (a) | 43,300 | 1,333,207 | |
Medco Health Solutions, Inc. (a) | 343,019 | 21,088,808 | |
RehabCare Group, Inc. (a) | 28,800 | 836,928 | |
| 43,737,827 | ||
Managed Health Care - 8.7% | |||
Aetna, Inc. | 175,300 | 5,253,741 | |
CIGNA Corp. | 262,900 | 8,878,133 | |
Health Net, Inc. (a) | 109,447 | 2,655,184 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - CONTINUED | |||
Managed Health Care - continued | |||
UnitedHealth Group, Inc. | 227,300 | $ 7,500,900 | |
WellPoint, Inc. (a) | 189,200 | 12,055,824 | |
| 36,343,782 | ||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 98,948,454 | ||
HEALTH CARE TECHNOLOGY - 2.1% | |||
Health Care Technology - 2.1% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 154,127 | 2,536,930 | |
Cerner Corp. (a) | 66,027 | 4,994,943 | |
Computer Programs & Systems, Inc. | 27,421 | 1,031,852 | |
| 8,563,725 | ||
INTERNET SOFTWARE & SERVICES - 0.4% | |||
Internet Software & Services - 0.4% | |||
WebMD Health Corp. (a) | 42,857 | 1,670,566 | |
LIFE SCIENCES TOOLS & SERVICES - 10.2% | |||
Life Sciences Tools & Services - 10.2% | |||
Covance, Inc. (a) | 131,900 | 7,664,709 | |
ICON PLC sponsored ADR (a) | 101,900 | 2,531,196 | |
Illumina, Inc. (a)(c) | 420,584 | 15,431,227 | |
Life Technologies Corp. (a) | 82,719 | 4,111,961 | |
PAREXEL International Corp. (a) | 125,782 | 2,432,624 | |
PerkinElmer, Inc. | 127,000 | 2,557,780 | |
QIAGEN NV (a)(c) | 364,571 | 7,933,065 | |
| 42,662,562 | ||
PHARMACEUTICALS - 23.7% | |||
Pharmaceuticals - 23.7% | |||
Abbott Laboratories | 126,763 | 6,710,833 | |
Allergan, Inc. | 261,763 | 15,051,373 | |
Ardea Biosciences, Inc. (a) | 101,150 | 1,480,836 | |
Auxilium Pharmaceuticals, Inc. (a) | 21,400 | 602,624 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 142,086 | 1,415,177 | |
Hikma Pharmaceuticals PLC | 105,757 | 923,339 | |
| |||
Shares | Value | ||
King Pharmaceuticals, Inc. (a) | 428,400 | $ 5,145,084 | |
Merck & Co., Inc. | 430,751 | 16,446,073 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 78,527 | 967,453 | |
Pfizer, Inc. | 1,810,251 | 33,779,285 | |
Piramal Healthcare Ltd. | 76,277 | 605,255 | |
Pronova BioPharma ASA (a)(c) | 352,800 | 1,038,058 | |
Shire PLC sponsored ADR | 115,200 | 6,865,920 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 86,382 | 4,899,587 | |
ViroPharma, Inc. (a) | 278,004 | 2,746,680 | |
| 98,677,577 | ||
TOTAL COMMON STOCKS (Cost $351,713,587) | 413,649,380 | ||
Money Market Funds - 6.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 349,771 | 349,771 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 27,353,640 | 27,353,640 | |
TOTAL MONEY MARKET FUNDS (Cost $27,703,411) | 27,703,411 | ||
TOTAL INVESTMENT PORTFOLIO - 106.1% (Cost $379,416,998) | 441,352,791 | ||
NET OTHER ASSETS - (6.1)% | (25,468,381) | ||
NET ASSETS - 100% | $ 415,884,410 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 3,353 |
Fidelity Securities Lending Cash Central Fund | 16,747 |
Total | $ 20,100 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 413,649,380 | $ 407,159,533 | $ 6,489,847 | $ - |
Money Market Funds | 27,703,411 | 27,703,411 | - | - |
Total Investments in Securities | $ 441,352,791 | $ 434,862,944 | $ 6,489,847 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.6% |
Ireland | 6.3% |
Netherlands | 1.9% |
Bailiwick of Jersey | 1.7% |
Israel | 1.2% |
Others (individually less than 1%) | 2.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $30,833,729 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $34,215,799 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $26,588,334) - See accompanying schedule: Unaffiliated issuers (cost $351,713,587) | $ 413,649,380 |
|
Fidelity Central Funds (cost $27,703,411) | 27,703,411 |
|
Total Investments (cost $379,416,998) |
| $ 441,352,791 |
Receivable for investments sold | 12,118,196 | |
Receivable for fund shares sold | 316,408 | |
Dividends receivable | 210,309 | |
Distributions receivable from Fidelity Central Funds | 3,372 | |
Prepaid expenses | 1,556 | |
Other receivables | 44,674 | |
Total assets | 454,047,306 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 325,655 | |
Payable for investments purchased | 9,059,541 | |
Payable for fund shares redeemed | 897,280 | |
Accrued management fee | 198,090 | |
Distribution fees payable | 171,298 | |
Other affiliated payables | 128,300 | |
Other payables and accrued expenses | 29,092 | |
Collateral on securities loaned, at value | 27,353,640 | |
Total liabilities | 38,162,896 | |
|
|
|
Net Assets | $ 415,884,410 | |
Net Assets consist of: |
| |
Paid in capital | $ 402,609,737 | |
Accumulated net investment loss | (1,302,047) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,354,505) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 61,931,225 | |
Net Assets | $ 415,884,410 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 19.64 | |
|
|
|
Maximum offering price per share (100/94.25 of $19.64) | $ 20.84 | |
Class T: | $ 19.09 | |
|
|
|
Maximum offering price per share (100/96.50 of $19.09) | $ 19.78 | |
Class B: | $ 17.96 | |
|
|
|
Class C: | $ 17.92 | |
|
|
|
Institutional Class: | $ 20.39 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,564,950 |
Interest |
| 27,273 |
Income from Fidelity Central Funds |
| 20,100 |
Total income |
| 1,612,323 |
|
|
|
Expenses | ||
Management fee | $ 1,135,080 | |
Transfer agent fees | 686,834 | |
Distribution fees | 985,763 | |
Accounting and security lending fees | 80,722 | |
Custodian fees and expenses | 22,112 | |
Independent trustees' compensation | 1,272 | |
Registration fees | 38,344 | |
Audit | 29,422 | |
Legal | 2,218 | |
Miscellaneous | 3,909 | |
Total expenses before reductions | 2,985,676 | |
Expense reductions | (27,484) | 2,958,192 |
Net investment income (loss) | (1,345,869) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 26,621,107 | |
Foreign currency transactions | 9,557 | |
Total net realized gain (loss) |
| 26,630,664 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,675,873 | |
Assets and liabilities in foreign currencies | 1,672 | |
Total change in net unrealized appreciation (depreciation) |
| 28,677,545 |
Net gain (loss) | 55,308,209 | |
Net increase (decrease) in net assets resulting from operations | $ 53,962,340 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,345,869) | $ (546,482) |
Net realized gain (loss) | 26,630,664 | (71,981,218) |
Change in net unrealized appreciation (depreciation) | 28,677,545 | 3,789,678 |
Net increase (decrease) in net assets resulting from operations | 53,962,340 | (68,738,022) |
Distributions to shareholders from net realized gain | - | (9,966,416) |
Share transactions - net increase (decrease) | (26,577,287) | (54,481,101) |
Redemption fees | 2,447 | 10,268 |
Total increase (decrease) in net assets | 27,387,500 | (133,175,271) |
|
|
|
Net Assets | ||
Beginning of period | 388,496,910 | 521,672,181 |
End of period (including accumulated net investment loss of $1,302,047 and undistributed net investment income of $43,822, respectively) | $ 415,884,410 | $ 388,496,910 |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | .02 | (.03) | (.03) | (.09) | (.05) |
Net realized and unrealized gain (loss) | 2.53 | (2.22) | (1.08) | 1.91 | .96 | 4.08 |
Total from investment operations | 2.49 | (2.20) | (1.11) | 1.88 | .87 | 4.03 |
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 | $ 19.64 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 |
Total Return B,C,D | 14.52% | (11.37)% | (5.64)% | 8.54% | 3.79% | 21.31% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.24% A | 1.23% | 1.20% | 1.22% | 1.25% | 1.28% |
Expenses net of fee waivers, if any | 1.24% A | 1.23% | 1.20% | 1.22% | 1.25% | 1.28% |
Expenses net of all reductions | 1.23% A | 1.23% | 1.19% | 1.21% | 1.21% | 1.26% |
Net investment income (loss) | (.43)% A | .11% | (.13)% | (.14)% | (.38)% | (.22)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 191,250 | $ 177,890 | $ 220,888 | $ 234,656 | $ 199,221 | $ 139,158 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.02) | (.08) | (.09) | (.15) | (.09) |
Net realized and unrealized gain (loss) | 2.46 | (2.18) | (1.06) | 1.87 | .95 | 3.99 |
Total from investment operations | 2.40 | (2.20) | (1.14) | 1.78 | .80 | 3.90 |
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 | $ 19.09 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 |
Total Return B,C,D | 14.38% | (11.65)% | (5.86)% | 8.25% | 3.55% | 20.97% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.50% A | 1.49% | 1.46% | 1.48% | 1.50% | 1.53% |
Expenses net of fee waivers, if any | 1.50% A | 1.49% | 1.46% | 1.48% | 1.50% | 1.53% |
Expenses net of all reductions | 1.48% A | 1.49% | 1.45% | 1.47% | 1.47% | 1.51% |
Net investment income (loss) | (.69)% A | (.15)% | (.40)% | (.40)% | (.63)% | (.47)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 113,742 | $ 103,772 | $ 143,237 | $ 186,628 | $ 218,280 | $ 243,353 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) | (.09) | (.18) | (.20) | (.25) | (.19) |
Net realized and unrealized gain (loss) | 2.32 | (2.07) | (.99) | 1.79 | .91 | 3.83 |
Total from investment operations | 2.22 | (2.16) | (1.17) | 1.59 | .66 | 3.64 |
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 | $ 17.96 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 |
Total Return B,C,D | 14.10% | (12.07)% | (6.30)% | 7.66% | 3.06% | 20.32% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.95% | 1.99% | 2.01% | 2.04% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.95% | 1.99% | 2.01% | 2.04% |
Expenses net of all reductions | 1.98% A | 1.98% | 1.94% | 1.98% | 1.98% | 2.01% |
Net investment income (loss) | (1.18)% A | (.64)% | (.89)% | (.91)% | (1.14)% | (.98)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29,181 | $ 29,381 | $ 55,589 | $ 113,384 | $ 180,364 | $ 266,319 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) | (.09) | (.17) | (.19) | (.24) | (.17) |
Net realized and unrealized gain (loss) | 2.32 | (2.07) | (1.00) | 1.79 | .91 | 3.84 |
Total from investment operations | 2.22 | (2.16) | (1.17) | 1.60 | .67 | 3.67 |
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 | $ 17.92 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 |
Total Return B,C,D | 14.14% | (12.09)% | (6.31)% | 7.75% | 3.10% | 20.46% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.96% A | 1.98% | 1.94% | 1.94% | 1.94% | 1.97% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 1.94% | 1.94% | 1.94% | 1.97% |
Expenses net of all reductions | 1.94% A | 1.98% | 1.94% | 1.93% | 1.91% | 1.94% |
Net investment income (loss) | (1.15)% A | (.64)% | (.88)% | (.86)% | (1.07)% | (.91)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 66,811 | $ 64,002 | $ 83,133 | $ 105,519 | $ 115,644 | $ 131,277 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.02) | .06 | .03 | .05 | - H | .04 |
Net realized and unrealized gain (loss) | 2.63 | (2.30) | (1.12) | 1.96 | .99 | 4.16 |
Total from investment operations | 2.61 | (2.24) | (1.09) | 2.01 | .99 | 4.20 |
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 | $ 20.39 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 |
Total Return B,C | 14.68% | (11.19)% | (5.36)% | 8.90% | 4.21% | 21.78% |
Ratios to Average Net Assets E,G |
|
|
|
|
|
|
Expenses before reductions | .98% A | .98% | .93% | .88% | .86% | .88% |
Expenses net of fee waivers, if any | .98% A | .98% | .93% | .88% | .86% | .88% |
Expenses net of all reductions | .96% A | .98% | .92% | .87% | .83% | .85% |
Net investment income (loss) | (.17)% A | .36% | .14% | .19% | .01% | .18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,900 | $ 13,452 | $ 18,825 | $ 22,174 | $ 20,652 | $ 19,698 |
Portfolio turnover rate F | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Health Care
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 68,942,062 |
|
Gross unrealized depreciation | (11,150,282) |
|
Net unrealized appreciation (depreciation) | $ 57,791,780 |
|
|
|
|
Tax cost | $ 383,561,011 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $194,269,334 and $219,824,627, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 233,412 | $ - |
Class T | .25% | .25% | 273,228 | - |
Class B | .75% | .25% | 149,305 | 111,979 |
Class C | .75% | .25% | 329,818 | 11,017 |
|
|
| $ 985,763 | $ 122,996 |
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 |
Class A | $ 13,537 |
Class T | 6,400 |
Class B* | 16,044 |
Class C* | 657 |
| $ 36,638 |
* 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 |
Class A | $ 320,635 | .34 |
Class T | 190,484 | .35 |
Class B | 51,411 | .34 |
Class C | 100,936 | .31 |
Institutional Class | 23,368 | .33 |
| $ 686,834 |
|
* 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 $1,287 for the period.
Health Care
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $796 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $16,747.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,484 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 4,165,896 |
Class T | - | 2,716,500 |
Class B | - | 1,072,948 |
Class C | - | 1,667,891 |
Institutional Class | - | 343,181 |
Total | $ - | $ 9,966,416 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 675,723 | 2,119,806 | $ 12,724,193 | $ 33,600,941 |
Reinvestment of distributions | - | 190,190 | - | 3,682,080 |
Shares redeemed | (1,310,014) | (3,135,479) | (24,434,895) | (48,422,714) |
Net increase (decrease) | (634,291) | (825,483) | $ (11,710,702) | $ (11,139,693) |
Class T |
|
|
|
|
Shares sold | 368,741 | 602,296 | $ 6,951,711 | $ 9,206,132 |
Reinvestment of distributions | - | 135,003 | - | 2,550,205 |
Shares redeemed | (627,411) | (1,958,228) | (11,383,654) | (29,483,941) |
Net increase (decrease) | (258,670) | (1,220,929) | $ (4,431,943) | $ (17,727,604) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class B |
|
|
|
|
Shares sold | 69,694 | 212,561 | $ 1,201,524 | $ 3,135,162 |
Reinvestment of distributions | - | 53,957 | - | 965,289 |
Shares redeemed | (311,238) | (1,442,718) | (5,336,487) | (20,918,367) |
Net increase (decrease) | (241,544) | (1,176,200) | $ (4,134,963) | $ (16,817,916) |
Class C |
|
|
|
|
Shares sold | 131,201 | 511,934 | $ 2,270,942 | $ 7,440,670 |
Reinvestment of distributions | - | 74,490 | - | 1,329,646 |
Shares redeemed | (478,247) | (1,071,755) | (8,111,130) | (15,223,014) |
Net increase (decrease) | (347,046) | (485,331) | $ (5,840,188) | $ (6,452,698) |
Institutional Class |
|
|
|
|
Shares sold | 73,028 | 260,510 | $ 1,432,423 | $ 4,409,032 |
Reinvestment of distributions | - | 12,578 | - | 251,944 |
Shares redeemed | (98,750) | (439,916) | (1,891,914) | (7,004,166) |
Net increase (decrease) | (25,722) | (166,828) | $ (459,491) | $ (2,343,190) |
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.
Health Care
Advisor Industrials Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Ending | Expenses Paid |
Class A | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.45 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.47% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.60 | $ 7.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.80 | $ 7.48 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,127.70 | $ 10.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.00 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
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 Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
United Technologies Corp. | 6.7 | 5.6 |
General Electric Co. | 6.1 | 4.4 |
3M Co. | 4.6 | 3.1 |
Union Pacific Corp. | 4.4 | 5.0 |
Honeywell International, Inc. | 3.5 | 4.6 |
Cummins, Inc. | 3.2 | 3.2 |
Danaher Corp. | 3.2 | 3.1 |
Ingersoll-Rand Co. Ltd. | 3.0 | 2.6 |
Raytheon Co. | 2.5 | 2.0 |
Lockheed Martin Corp. | 2.3 | 2.8 |
| 39.5 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Machinery | 22.8% |
|
| Aerospace & Defense | 20.8% |
|
| Industrial Conglomerates | 13.7% |
|
| Road & Rail | 12.2% |
|
| Electrical Equipment | 5.7% |
|
 | All Others* | 24.8% |
|
As of July 31, 2009 | |||
| Aerospace & Defense | 19.0% |
|
| Machinery | 18.5% |
|
| Road & Rail | 14.0% |
|
| Industrial Conglomerates | 10.3% |
|
| Electrical Equipment | 8.8% |
|
| All Others* | 29.4% |
|
* Includes short-term investments and net other assets. |
Industrials
Advisor Industrials Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
AEROSPACE & DEFENSE - 20.8% | |||
Aerospace & Defense - 20.8% | |||
BE Aerospace, Inc. (a) | 78,599 | $ 1,762,976 | |
Honeywell International, Inc. | 261,800 | 10,115,952 | |
Lockheed Martin Corp. | 90,500 | 6,744,060 | |
Precision Castparts Corp. | 61,500 | 6,472,875 | |
Raytheon Co. | 135,000 | 7,078,050 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 105,300 | 2,258,685 | |
The Boeing Co. | 102,400 | 6,205,440 | |
United Technologies Corp. | 283,600 | 19,137,328 | |
| 59,775,366 | ||
AUTO COMPONENTS - 2.7% | |||
Auto Parts & Equipment - 1.9% | |||
BorgWarner, Inc. | 61,300 | 2,151,017 | |
Johnson Controls, Inc. | 103,400 | 2,877,622 | |
Stoneridge, Inc. (a) | 68,714 | 479,624 | |
| 5,508,263 | ||
Tires & Rubber - 0.8% | |||
The Goodyear Tire & Rubber Co. (a) | 164,600 | 2,195,764 | |
TOTAL AUTO COMPONENTS | 7,704,027 | ||
BEVERAGES - 0.2% | |||
Soft Drinks - 0.2% | |||
Heckmann Corp. (a) | 146,000 | 711,020 | |
BUILDING PRODUCTS - 4.5% | |||
Building Products - 4.5% | |||
AAON, Inc. | 53,000 | 1,091,270 | |
Armstrong World Industries, Inc. (a) | 44,875 | 1,634,796 | |
Lennox International, Inc. | 30,296 | 1,157,913 | |
Masco Corp. | 465,800 | 6,316,248 | |
Owens Corning (a) | 109,661 | 2,821,578 | |
| 13,021,805 | ||
COMMERCIAL SERVICES & SUPPLIES - 4.2% | |||
Commercial Printing - 0.5% | |||
R.R. Donnelley & Sons Co. | 69,800 | 1,383,436 | |
Diversified Support Services - 0.7% | |||
Cintas Corp. | 82,600 | 2,074,086 | |
Environmental & Facility Services - 1.9% | |||
Casella Waste Systems, Inc. Class A (a) | 268,122 | 1,166,331 | |
Republic Services, Inc. | 136,660 | 3,661,121 | |
RINO International Corp. (a)(c) | 27,200 | 548,080 | |
| 5,375,532 | ||
Office Services & Supplies - 0.6% | |||
United Stationers, Inc. (a) | 29,000 | 1,582,240 | |
Security & Alarm Services - 0.5% | |||
The Brink's Co. | 66,100 | 1,545,418 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 11,960,712 | ||
| |||
Shares | Value | ||
CONSTRUCTION & ENGINEERING - 3.2% | |||
Construction & Engineering - 3.2% | |||
AECOM Technology Corp. (a) | 37,701 | $ 1,016,796 | |
Fluor Corp. | 86,100 | 3,903,774 | |
Jacobs Engineering Group, Inc. (a) | 84,800 | 3,204,592 | |
MasTec, Inc. (a) | 88,700 | 1,090,123 | |
| 9,215,285 | ||
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Brinks Home Security Holdings, Inc. (a) | 35,660 | 1,462,060 | |
ELECTRICAL EQUIPMENT - 5.7% | |||
Electrical Components & Equipment - 5.7% | |||
Acuity Brands, Inc. (c) | 77,642 | 2,778,031 | |
AMETEK, Inc. | 93,200 | 3,396,208 | |
Cooper Industries PLC Class A | 89,100 | 3,822,390 | |
Fushi Copperweld, Inc. (a) | 99,300 | 915,546 | |
General Cable Corp. (a) | 59,100 | 1,719,810 | |
Regal-Beloit Corp. | 66,504 | 3,152,290 | |
Zumtobel AG (a) | 33,926 | 725,765 | |
| 16,510,040 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 1.5% | |||
Electronic Equipment & Instruments - 0.5% | |||
Agilent Technologies, Inc. | 50,800 | 1,423,924 | |
Electronic Manufacturing Services - 0.5% | |||
Tyco Electronics Ltd. | 59,100 | 1,470,408 | |
Technology Distributors - 0.5% | |||
Anixter International, Inc. (a) | 32,758 | 1,365,353 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 4,259,685 | ||
HOUSEHOLD DURABLES - 1.9% | |||
Homebuilding - 0.4% | |||
PDG Realty S.A. Empreendimentos e Participacoes | 136,400 | 1,076,004 | |
Household Appliances - 1.5% | |||
Black & Decker Corp. | 69,300 | 4,480,938 | |
TOTAL HOUSEHOLD DURABLES | 5,556,942 | ||
INDUSTRIAL CONGLOMERATES - 13.7% | |||
Industrial Conglomerates - 13.7% | |||
3M Co. | 163,500 | 13,160,115 | |
Carlisle Companies, Inc. | 52,457 | 1,758,359 | |
General Electric Co. | 1,101,429 | 17,710,978 | |
Koninklijke Philips Electronics NV | 26,100 | 788,143 | |
Textron, Inc. | 172,200 | 3,363,066 | |
Tyco International Ltd. | 77,125 | 2,732,539 | |
| 39,513,200 | ||
MACHINERY - 22.8% | |||
Construction & Farm Machinery & Heavy Trucks - 12.1% | |||
Bucyrus International, Inc. Class A | 55,000 | 2,880,900 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - CONTINUED | |||
Construction & Farm Machinery & Heavy Trucks - continued | |||
Caterpillar, Inc. | 52,900 | $ 2,763,496 | |
Cummins, Inc. | 206,191 | 9,311,586 | |
Deere & Co. | 133,900 | 6,688,305 | |
Joy Global, Inc. | 39,900 | 1,825,026 | |
Navistar International Corp. (a) | 120,388 | 4,453,152 | |
Oshkosh Co. | 33,926 | 1,223,711 | |
PACCAR, Inc. | 141,600 | 5,101,848 | |
Sany Heavy Equipment International Holdings Co. Ltd. | 646,000 | 669,801 | |
| 34,917,825 | ||
Industrial Machinery - 10.7% | |||
Actuant Corp. Class A | 43,900 | 736,203 | |
Altra Holdings, Inc. (a) | 106,408 | 1,172,616 | |
Barnes Group, Inc. | 69,960 | 1,122,158 | |
Blount International, Inc. (a) | 54,661 | 608,924 | |
Danaher Corp. | 128,600 | 9,175,610 | |
Ingersoll-Rand Co. Ltd. | 266,300 | 8,644,098 | |
Kennametal, Inc. | 72,900 | 1,784,592 | |
NSK Ltd. | 133,000 | 967,996 | |
SPX Corp. | 26,300 | 1,431,772 | |
The Weir Group PLC | 23,700 | 291,647 | |
Timken Co. | 99,462 | 2,228,943 | |
TriMas Corp. (a) | 194,139 | 1,149,303 | |
Weg SA | 134,600 | 1,288,875 | |
| 30,602,737 | ||
TOTAL MACHINERY | 65,520,562 | ||
MARINE - 0.3% | |||
Marine - 0.3% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 175,033 | 812,153 | |
PROFESSIONAL SERVICES - 2.0% | |||
Human Resource & Employment Services - 0.8% | |||
Manpower, Inc. | 43,700 | 2,263,223 | |
Research & Consulting Services - 1.2% | |||
Equifax, Inc. | 81,007 | 2,592,224 | |
ICF International, Inc. (a) | 38,881 | 910,204 | |
| 3,502,428 | ||
TOTAL PROFESSIONAL SERVICES | 5,765,651 | ||
ROAD & RAIL - 12.2% | |||
Railroads - 9.2% | |||
America Latina Logistica SA unit | 150,200 | 1,192,835 | |
CSX Corp. | 124,600 | 5,340,356 | |
| |||
Shares | Value | ||
Genesee & Wyoming, Inc. Class A (a) | 26,600 | $ 783,902 | |
Kansas City Southern (a) | 54,600 | 1,621,620 | |
Norfolk Southern Corp. | 106,810 | 5,026,479 | |
Union Pacific Corp. | 208,900 | 12,638,450 | |
| 26,603,642 | ||
Trucking - 3.0% | |||
Arkansas Best Corp. | 51,100 | 1,151,794 | |
Avis Budget Group, Inc. (a)(c) | 343,676 | 3,718,574 | |
Con-way, Inc. | 26,500 | 758,430 | |
Hertz Global Holdings, Inc. (a)(c) | 174,100 | 1,803,676 | |
Saia, Inc. (a) | 92,316 | 1,107,792 | |
| 8,540,266 | ||
TOTAL ROAD & RAIL | 35,143,908 | ||
TRADING COMPANIES & DISTRIBUTORS - 2.8% | |||
Trading Companies & Distributors - 2.8% | |||
Interline Brands, Inc. (a) | 167,073 | 2,806,826 | |
Rush Enterprises, Inc. Class A (a) | 453,657 | 5,153,544 | |
| 7,960,370 | ||
TOTAL COMMON STOCKS (Cost $276,260,851) | 284,892,786 | ||
Money Market Funds - 3.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 2,893,607 | 2,893,607 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 5,873,275 | 5,873,275 | |
TOTAL MONEY MARKET FUNDS (Cost $8,766,882) | 8,766,882 | ||
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $285,027,733) | 293,659,668 | |
NET OTHER ASSETS - (2.1)% | (5,940,956) | |
NET ASSETS - 100% | $ 287,718,712 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 5,298 |
Fidelity Securities Lending Cash Central Fund | 22,750 |
Total | $ 28,048 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 284,892,786 | $ 283,087,231 | $ 1,805,555 | $ - |
Money Market Funds | 8,766,882 | 8,766,882 | - | - |
Total Investments in Securities: | $ 293,659,668 | $ 291,854,113 | $ 1,805,555 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $29,658,388 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $69,957,535 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,618,149) - See accompanying schedule: Unaffiliated issuers (cost $276,260,851) | $ 284,892,786 |
|
Fidelity Central Funds (cost $8,766,882) | 8,766,882 |
|
Total Investments (cost $285,027,733) |
| $ 293,659,668 |
Receivable for investments sold | 7,497,982 | |
Receivable for fund shares sold | 759,341 | |
Dividends receivable | 133,021 | |
Distributions receivable from Fidelity Central Funds | 4,936 | |
Prepaid expenses | 1,046 | |
Other receivables | 6,529 | |
Total assets | 302,062,523 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,657,582 | |
Payable for fund shares redeemed | 444,212 | |
Accrued management fee | 142,289 | |
Distribution fees payable | 119,785 | |
Other affiliated payables | 80,366 | |
Other payables and accrued expenses | 26,302 | |
Collateral on securities loaned, at value | 5,873,275 | |
Total liabilities | 14,343,811 | |
|
|
|
Net Assets | $ 287,718,712 | |
Net Assets consist of: |
| |
Paid in capital | $ 357,633,337 | |
Distributions in excess of net investment income | (291,793) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (78,255,041) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 8,632,209 | |
Net Assets | $ 287,718,712 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 19.03 | |
|
|
|
Maximum offering price per share (100/94.25 of $19.03) | $ 20.19 | |
Class T: | $ 18.79 | |
|
|
|
Maximum offering price per share (100/96.50 of $18.79) | $ 19.47 | |
Class B: | $ 17.93 | |
|
|
|
Class C: | $ 17.98 | |
|
|
|
Institutional Class: | $ 19.67 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,046,433 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 28,048 |
Total income |
| 2,074,483 |
|
|
|
Expenses | ||
Management fee | $ 795,307 | |
Transfer agent fees | 422,395 | |
Distribution fees | 668,958 | |
Accounting and security lending fees | 55,992 | |
Custodian fees and expenses | 10,974 | |
Independent trustees' compensation | 826 | |
Registration fees | 41,705 | |
Audit | 27,728 | |
Legal | 953 | |
Miscellaneous | 2,656 | |
Total expenses before reductions | 2,027,494 | |
Expense reductions | (9,800) | 2,017,694 |
Net investment income (loss) | 56,789 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 29,288,947 | |
Foreign currency transactions | (66,825) | |
Total net realized gain (loss) |
| 29,222,122 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,501,290 | |
Assets and liabilities in foreign currencies | 2,219 | |
Total change in net unrealized appreciation (depreciation) |
| 3,503,509 |
Net gain (loss) | 32,725,631 | |
Net increase (decrease) in net assets resulting from operations | $ 32,782,420 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 56,789 | $ 1,715,553 |
Net realized gain (loss) | 29,222,122 | (102,654,173) |
Change in net unrealized appreciation (depreciation) | 3,503,509 | (6,469,546) |
Net increase (decrease) in net assets resulting from operations | 32,782,420 | (107,408,166) |
Distributions to shareholders from net investment income | (658,110) | (1,756,118) |
Distributions to shareholders from net realized gain | - | (285,855) |
Total distributions | (658,110) | (2,041,973) |
Share transactions - net increase (decrease) | 842,172 | (41,067,612) |
Redemption fees | 2,175 | 10,099 |
Total increase (decrease) in net assets | 32,968,657 | (150,507,652) |
|
|
|
Net Assets | ||
Beginning of period | 254,750,055 | 405,257,707 |
End of period (including distributions in excess of net investment income of $291,793 and undistributed net investment income of $309,528, respectively) | $ 287,718,712 | $ 254,750,055 |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .09 | .08 | .02 |
Net realized and unrealized gain (loss) | 2.20 | (5.08) | (1.17) | 5.11 | 1.63 | 4.35 |
Total from investment operations | 2.23 | (4.95) | (1.06) | 5.20 | 1.71 | 4.37 |
Distributions from net investment income | (.07) | (.13) | - | (.06) | - | - |
Distributions from net realized gain | - | (.02) | (2.46) | (1.81) | (1.08) | (.94) |
Total distributions | (.07) | (.15) | (2.46) | (1.87) | (1.08) | (.94) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.03 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 |
Total Return B, C, D | 13.20% | (22.49)% | (4.71)% | 25.13% | 8.40% | 25.04% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.20% A | 1.23% | 1.17% | 1.21% | 1.26% | 1.34% |
Expenses net of fee waivers, if any | 1.20% A | 1.23% | 1.17% | 1.21% | 1.26% | 1.34% |
Expenses net of all reductions | 1.19% A | 1.23% | 1.16% | 1.21% | 1.24% | 1.29% |
Net investment income (loss) | .27% A | .89% | .46% | .38% | .34% | .09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 145,764 | $ 130,860 | $ 188,859 | $ 157,451 | $ 99,255 | $ 40,264 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | .10 | .05 | .03 | .02 | (.03) |
Net realized and unrealized gain (loss) | 2.17 | (5.03) | (1.15) | 5.05 | 1.61 | 4.31 |
Total from investment operations | 2.17 | (4.93) | (1.10) | 5.08 | 1.63 | 4.28 |
Distributions from net investment income | (.02) | (.08) | - | (.03) | - | - |
Distributions from net realized gain | - | (.02) | (2.40) | (1.74) | (1.04) | (.91) |
Total distributions | (.02) | (.10) | (2.40) | (1.77) | (1.04) | (.91) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.79 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 |
Total Return B, C, D | 13.06% | (22.68)% | (4.96)% | 24.82% | 8.13% | 24.78% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.47% A | 1.48% | 1.41% | 1.46% | 1.49% | 1.57% |
Expenses net of fee waivers, if any | 1.47% A | 1.48% | 1.41% | 1.46% | 1.49% | 1.57% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.41% | 1.46% | 1.47% | 1.52% |
Net investment income (loss) | -% A, H | .63% | .21% | .13% | .11% | (.14)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 56,501 | $ 48,054 | $ 85,025 | $ 75,530 | $ 55,936 | $ 40,126 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 Amount represents less than .01%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .02 | (.07) | (.09) | (.09) | (.13) |
Net realized and unrealized gain (loss) | 2.08 | (4.82) | (1.10) | 4.87 | 1.55 | 4.17 |
Total from investment operations | 2.03 | (4.80) | (1.17) | 4.78 | 1.46 | 4.04 |
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 | - | - | - | - | - | - |
Net asset value, end of period | $ 17.93 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 |
Total Return B, C, D | 12.77% | (23.10)% | (5.46)% | 24.18% | 7.54% | 24.12% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.00% A | 1.98% | 1.95% | 2.00% | 2.04% | 2.11% |
Expenses net of fee waivers, if any | 2.00% A | 1.98% | 1.95% | 2.00% | 2.04% | 2.11% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.95% | 2.00% | 2.02% | 2.07% |
Net investment income (loss) | (.54)% A | .13% | (.33)% | (.41)% | (.44)% | (.68)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,932 | $ 25,212 | $ 39,989 | $ 44,330 | $ 37,082 | $ 32,242 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | .02 | (.06) | (.08) | (.08) | (.12) |
Net realized and unrealized gain (loss) | 2.08 | (4.83) | (1.11) | 4.88 | 1.56 | 4.19 |
Total from investment operations | 2.04 | (4.81) | (1.17) | 4.80 | 1.48 | 4.07 |
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 | - | - | - | - | - | - |
Net asset value, end of period | $ 17.98 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 |
Total Return B, C, D | 12.80% | (23.09)% | (5.44)% | 24.25% | 7.59% | 24.16% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.96% A | 1.98% | 1.91% | 1.94% | 1.99% | 2.07% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 1.91% | 1.94% | 1.99% | 2.07% |
Expenses net of all reductions | 1.95% A | 1.98% | 1.90% | 1.94% | 1.97% | 2.02% |
Net investment income (loss) | (.49)% A | .14% | (.28)% | (.35)% | (.38)% | (.64)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 43,676 | $ 37,862 | $ 57,742 | $ 57,862 | $ 42,363 | $ 20,595 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .19 | .18 | .16 | .16 | .07 |
Net realized and unrealized gain (loss) | 2.28 | (5.27) | (1.19) | 5.27 | 1.66 | 4.46 |
Total from investment operations | 2.33 | (5.08) | (1.01) | 5.43 | 1.82 | 4.53 |
Distributions from net investment income | (.11) | (.17) | - | (.13) | - | - |
Distributions from net realized gain | - | (.02) | (2.53) | (1.81) | (1.11) | (.95) |
Total distributions | (.11) | (.19) | (2.53) | (1.94) | (1.11) | (.95) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 19.67 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 |
Total Return B, C | 13.36% | (22.31)% | (4.40)% | 25.53% | 8.73% | 25.41% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .91% A | .96% | .88% | .92% | .91% | 1.06% |
Expenses net of fee waivers, if any | .91% A | .96% | .88% | .92% | .91% | 1.06% |
Expenses net of all reductions | .91% A | .95% | .87% | .91% | .89% | 1.01% |
Net investment income (loss) | .55% A | 1.16% | .75% | .67% | .69% | .37% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,845 | $ 12,762 | $ 33,642 | $ 19,498 | $ 13,043 | $ 4,379 |
Portfolio turnover rate F | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Industrials
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
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. 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, capital loss carryforwards, deferred trustee compensation, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,397,521 |
Gross unrealized depreciation | (21,690,902) |
Net unrealized appreciation (depreciation) | $ 3,706,619 |
Tax cost | $ 289,953,049 |
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $153,764,914 and $153,596,907, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 180,677 | $ 487 |
Class T | .25% | .25% | 137,997 | - |
Class B | .75% | .25% | 136,975 | 102,731 |
Class C | .75% | .25% | 213,309 | 27,188 |
|
|
| $ 668,958 | $ 130,406 |
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 |
Class A | $ 20,615 |
Class T | 4,283 |
Class B* | 32,646 |
Class C* | 2,020 |
| $ 59,564 |
* 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 |
Class A | $ 209,728 | .29 |
Class T | 84,607 | .31 |
Class B | 46,908 | .34 |
Class C | 62,428 | .29 |
Institutional Class | 18,724 | .26 |
| $ 422,395 |
|
* Annualized
Industrials
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,596 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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.
7. 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 $22,750.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $9,799 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 $1.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 508,658 | $ 1,066,448 |
Class T | 67,515 | 306,371 |
Class B | - | 68,325 |
Class C | - | 103,234 |
Institutional Class | 81,937 | 211,740 |
Total | $ 658,110 | $ 1,756,118 |
From net realized gain |
|
|
Class A | $ - | $ 176,460 |
Class T | - | 79,143 |
Institutional Class | - | 30,252 |
Total | $ - | $ 285,855 |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 962,811 | 2,551,802 | $ 18,382,098 | $ 40,597,092 |
Reinvestment of distributions | 24,478 | 72,593 | 465,084 | 1,139,555 |
Shares redeemed | (1,085,802) | (3,461,949) | (20,353,787) | (50,255,155) |
Net increase (decrease) | (98,513) | (837,554) | $ (1,506,605) | $ (8,518,508) |
Class T |
|
|
|
|
Shares sold | 405,237 | 1,041,987 | $ 7,577,852 | $ 15,774,329 |
Reinvestment of distributions | 3,441 | 24,634 | 64,970 | 365,354 |
Shares redeemed | (289,781) | (2,101,374) | (5,332,260) | (29,010,054) |
Net increase (decrease) | 118,897 | (1,034,753) | $ 2,310,562 | $ (12,870,371) |
Class B |
|
|
|
|
Shares sold | 92,304 | 339,206 | $ 1,643,738 | $ 5,035,039 |
Reinvestment of distributions | - | 4,471 | - | 56,194 |
Shares redeemed | (175,886) | (686,403) | (3,110,150) | (9,410,134) |
Net increase (decrease) | (83,582) | (342,726) | $ (1,466,412) | $ (4,318,901) |
Class C |
|
|
|
|
Shares sold | 323,330 | 638,949 | $ 5,816,590 | $ 9,440,300 |
Reinvestment of distributions | - | 6,551 | - | 82,541 |
Shares redeemed | (269,373) | (1,047,655) | (4,803,942) | (14,427,567) |
Net increase (decrease) | 53,957 | (402,155) | $ 1,012,648 | $ (4,904,726) |
Institutional Class |
|
|
|
|
Shares sold | 236,982 | 291,640 | $ 4,614,850 | $ 4,730,735 |
Reinvestment of distributions | 3,299 | 10,868 | 64,789 | 192,321 |
Shares redeemed | (217,068) | (1,052,089) | (4,187,660) | (15,378,162) |
Net increase (decrease) | 23,213 | (749,581) | $ 491,979 | $ (10,455,106) |
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.
Industrials
Advisor Technology Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Ending | Expenses Paid |
Class A | 1.24% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.80 | $ 6.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.31 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,123.20 | $ 8.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.70 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.10 | $ 10.63 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.00 | $ 5.04 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 10.7 | 8.7 |
Apple, Inc. | 8.2 | 7.5 |
Google, Inc. Class A | 5.1 | 4.8 |
Hewlett-Packard Co. | 3.9 | 3.2 |
Oracle Corp. | 3.7 | 3.1 |
Cisco Systems, Inc. | 3.1 | 0.8 |
QUALCOMM, Inc. | 2.6 | 2.2 |
BMC Software, Inc. | 2.1 | 2.1 |
Intel Corp. | 2.0 | 5.4 |
SanDisk Corp. | 1.5 | 1.0 |
| 42.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Software | 28.8% |
|
| Semiconductors & Semiconductor Equipment | 17.5% |
|
| Computers & Peripherals | 16.7% |
|
| Communications Equipment | 10.6% |
|
| Internet Software & Services | 10.2% |
|
| All Others* | 16.2% |
|
As of July 31, 2009 | |||
| Software | 26.7% |
|
| Semiconductors & Semiconductor Equipment | 25.6% |
|
| Computers & Peripherals | 14.4% |
|
| Internet Software & Services | 11.9% |
|
| Communications Equipment | 9.8% |
|
| All Others* | 11.6% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Technology Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
CHEMICALS - 0.2% | |||
Specialty Chemicals - 0.2% | |||
Shin-Etsu Chemical Co., Ltd. | 17,500 | $ 916,971 | |
COMMERCIAL SERVICES & SUPPLIES - 0.0% | |||
Commercial Printing - 0.0% | |||
Nissha Printing Co. Ltd. | 5,400 | 229,113 | |
COMMUNICATIONS EQUIPMENT - 10.4% | |||
Communications Equipment - 10.4% | |||
Acme Packet, Inc. (a) | 42,600 | 440,910 | |
Adtran, Inc. | 56,500 | 1,197,800 | |
Aruba Networks, Inc. (a) | 9,800 | 101,822 | |
Brocade Communications Systems, Inc. (a) | 294,800 | 2,025,276 | |
Cisco Systems, Inc. (a) | 800,163 | 17,979,663 | |
Emulex Corp. (a) | 50,100 | 563,124 | |
F5 Networks, Inc. (a) | 62,308 | 3,079,884 | |
Infinera Corp. (a) | 70,900 | 485,665 | |
Juniper Networks, Inc. (a) | 221,300 | 5,494,879 | |
Motorola, Inc. | 295,400 | 1,816,710 | |
Netronix, Inc. (a) | 115,000 | 332,786 | |
OZ Optics Ltd. unit (a)(f) | 68,000 | 320,960 | |
Palm, Inc. (a) | 120,000 | 1,246,800 | |
Polycom, Inc. (a) | 135,900 | 3,048,237 | |
QUALCOMM, Inc. | 392,866 | 15,396,419 | |
Research In Motion Ltd. (a) | 28,900 | 1,819,544 | |
Riverbed Technology, Inc. (a) | 85,400 | 1,914,668 | |
Sandvine Corp. (a) | 1,450,464 | 1,763,400 | |
Sandvine Corp. (U.K.) (a) | 1,078,100 | 1,317,644 | |
Sonus Networks, Inc. (a) | 29,060 | 61,317 | |
Tekelec (a) | 35,500 | 531,790 | |
| 60,939,298 | ||
COMPUTERS & PERIPHERALS - 16.7% | |||
Computer Hardware - 12.7% | |||
3PAR, Inc. (a) | 71,337 | 689,829 | |
Apple, Inc. (a) | 252,255 | 48,463,231 | |
Hewlett-Packard Co. | 483,883 | 22,776,373 | |
Stratasys, Inc. (a)(c) | 108,790 | 2,502,170 | |
Toshiba Corp. (a) | 58,000 | 319,331 | |
| 74,750,934 | ||
Computer Storage & Peripherals - 4.0% | |||
Chicony Electronics Co. Ltd. | 189,284 | 467,214 | |
Compellent Technologies, Inc. (a) | 13,900 | 276,332 | |
EMC Corp. (a) | 178,200 | 2,970,594 | |
NetApp, Inc. (a) | 26,300 | 766,119 | |
Netezza Corp. (a) | 6,100 | 55,449 | |
Qisda Corp. (a) | 828,000 | 431,290 | |
SanDisk Corp. (a) | 346,313 | 8,803,276 | |
Seagate Technology | 326,000 | 5,453,980 | |
SIMPLO Technology Co. Ltd. | 68,200 | 389,379 | |
| |||
Shares | Value | ||
Synaptics, Inc. (a) | 88,018 | $ 2,227,736 | |
Western Digital Corp. (a) | 36,300 | 1,379,037 | |
| 23,220,406 | ||
TOTAL COMPUTERS & PERIPHERALS | 97,971,340 | ||
DIVERSIFIED CONSUMER SERVICES - 0.0% | |||
Education Services - 0.0% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a)(c) | 809 | 55,012 | |
ELECTRICAL EQUIPMENT - 1.3% | |||
Electrical Components & Equipment - 1.3% | |||
A123 Systems, Inc. (c) | 2,200 | 35,156 | |
Canadian Solar, Inc. (a) | 37,300 | 788,149 | |
centrotherm photovoltaics AG (a) | 19,273 | 1,074,627 | |
Energy Conversion Devices, Inc. (a) | 8,000 | 72,880 | |
First Solar, Inc. (a) | 514 | 58,236 | |
GT Solar International, Inc. (a)(c) | 268,000 | 1,541,000 | |
JA Solar Holdings Co. Ltd. ADR (a) | 14,500 | 62,350 | |
Q-Cells SE (a) | 1,200 | 16,427 | |
Roth & Rau AG (a) | 16,416 | 661,182 | |
SunPower Corp.: | |||
Class A (a) | 27,100 | 552,569 | |
Class B (a) | 46,044 | 855,037 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(c) | 3,200 | 43,232 | |
Trina Solar Ltd. ADR (a)(c) | 94,800 | 2,078,964 | |
| 7,839,809 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 6.4% | |||
Electronic Components - 2.0% | |||
Amphenol Corp. Class A | 1,400 | 55,776 | |
BYD Co. Ltd. (H Shares) (a) | 88,500 | 648,594 | |
Corning, Inc. | 198,092 | 3,581,503 | |
DTS, Inc. (a) | 20,300 | 574,490 | |
Everlight Electronics Co. Ltd. | 91,999 | 283,207 | |
Prime View International Co. Ltd. (a) | 2,859,000 | 5,241,276 | |
Prime View International Co. Ltd. sponsored GDR (a)(d) | 4,700 | 86,214 | |
TDK Corp. | 9,400 | 610,214 | |
Vishay Intertechnology, Inc. (a) | 108,991 | 821,792 | |
| 11,903,066 | ||
Electronic Equipment & Instruments - 1.2% | |||
Agilent Technologies, Inc. | 94,800 | 2,657,244 | |
China Security & Surveillance Technology, Inc. warrants 8/25/10 (a)(f) | 42,000 | 34,684 | |
Chroma ATE, Inc. | 1,111,641 | 2,190,940 | |
Coretronic Corp. | 174,300 | 248,104 | |
Itron, Inc. (a) | 900 | 55,386 | |
National Instruments Corp. | 51,863 | 1,524,254 | |
Wasion Group Holdings Ltd. | 928,000 | 643,054 | |
| 7,353,666 | ||
Common Stocks - continued | |||
Shares | Value | ||
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED | |||
Electronic Manufacturing Services - 1.9% | |||
Benchmark Electronics, Inc. (a) | 31,800 | $ 579,396 | |
Flextronics International Ltd. (a) | 359,200 | 2,277,328 | |
Ju Teng International Holdings Ltd. | 476,000 | 407,705 | |
Multi-Fineline Electronix, Inc. (a) | 2,289 | 54,638 | |
Trimble Navigation Ltd. (a) | 331,515 | 7,588,378 | |
| 10,907,445 | ||
Technology Distributors - 1.3% | |||
Digital China Holdings Ltd. (H Shares) | 2,949,000 | 4,702,325 | |
Inspur International Ltd. | 1,899,000 | 271,497 | |
Supreme Electronics Co. Ltd. (a) | 798,000 | 595,411 | |
Synnex Technology International Corp. | 273,500 | 563,000 | |
WPG Holding Co. Ltd. | 948,000 | 1,476,940 | |
| 7,609,173 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 37,773,350 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% | |||
Health Care Equipment - 0.1% | |||
China Medical Technologies, Inc. sponsored ADR (c) | 1,900 | 24,833 | |
Golden Meditech Co. Ltd. (a)(c) | 2,168,000 | 427,236 | |
Mindray Medical International Ltd. sponsored ADR | 200 | 6,974 | |
Mingyuan Medicare Development Co. Ltd. (a) | 1,020,000 | 162,907 | |
| 621,950 | ||
Health Care Supplies - 0.3% | |||
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 410,000 | 1,499,752 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 2,121,702 | ||
HEALTH CARE TECHNOLOGY - 0.3% | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a) | 600 | 23,604 | |
Cerner Corp. (a) | 22,200 | 1,679,430 | |
| 1,703,034 | ||
HOTELS, RESTAURANTS & LEISURE - 0.6% | |||
Hotels, Resorts & Cruise Lines - 0.6% | |||
Ctrip.com International Ltd. sponsored ADR (a) | 105,700 | 3,307,353 | |
HOUSEHOLD DURABLES - 0.7% | |||
Consumer Electronics - 0.7% | |||
Panasonic Corp. | 113,600 | 1,774,826 | |
Panasonic Corp. ADR | 17,600 | 276,496 | |
Sony Corp. sponsored ADR | 64,800 | 2,153,304 | |
TomTom Group BV (a) | 160 | 1,297 | |
| 4,205,923 | ||
| |||
Shares | Value | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.0% | |||
Independent Power Producers & Energy Traders - 0.0% | |||
GCL-Poly Energy Holdings Ltd. | 578,000 | $ 136,982 | |
INTERNET & CATALOG RETAIL - 1.5% | |||
Internet Retail - 1.5% | |||
Amazon.com, Inc. (a) | 36,500 | 4,577,465 | |
Expedia, Inc. (a) | 53,000 | 1,134,730 | |
Priceline.com, Inc. (a) | 15,112 | 2,952,129 | |
| 8,664,324 | ||
INTERNET SOFTWARE & SERVICES - 10.2% | |||
Internet Software & Services - 10.2% | |||
Akamai Technologies, Inc. (a) | 100 | 2,470 | |
Alibaba.com Ltd. | 259,000 | 587,124 | |
AOL, Inc. (a) | 49,800 | 1,193,706 | |
Art Technology Group, Inc. (a) | 73,824 | 330,732 | |
Baidu.com, Inc. sponsored ADR (a) | 1,507 | 620,447 | |
DealerTrack Holdings, Inc. (a) | 12,300 | 221,031 | |
eBay, Inc. (a) | 349,500 | 8,045,490 | |
Google, Inc. Class A (a) | 56,600 | 29,965,172 | |
GREE, Inc. | 16,000 | 932,314 | |
LogMeIn, Inc. | 4,100 | 69,495 | |
Mercadolibre, Inc. (a) | 43,234 | 1,644,189 | |
NetEase.com, Inc. sponsored ADR (a) | 59,800 | 1,961,440 | |
NHN Corp. (a) | 3,754 | 560,395 | |
Open Text Corp. (a) | 83,100 | 3,274,107 | |
OpenTable, Inc. | 400 | 9,956 | |
Rackspace Hosting, Inc. (a) | 14,100 | 256,902 | |
Tencent Holdings Ltd. | 162,800 | 3,044,656 | |
VeriSign, Inc. (a) | 133,600 | 3,060,776 | |
VistaPrint Ltd. (a) | 66,800 | 3,741,468 | |
Vocus, Inc. (a) | 10,300 | 166,036 | |
| 59,687,906 | ||
IT SERVICES - 1.9% | |||
Data Processing & Outsourced Services - 0.8% | |||
Visa, Inc. Class A | 57,900 | 4,749,537 | |
IT Consulting & Other Services - 1.1% | |||
Atos Origin SA (a) | 22,032 | 1,024,615 | |
China Information Security Technology, Inc. (a) | 17 | 83 | |
Cognizant Technology Solutions Corp. Class A (a) | 69,800 | 3,047,468 | |
RightNow Technologies, Inc. (a) | 117,400 | 1,877,226 | |
Yucheng Technologies Ltd. (a)(c) | 89,400 | 317,370 | |
| 6,266,762 | ||
TOTAL IT SERVICES | 11,016,299 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
Life Technologies Corp. (a) | 6,000 | 298,260 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - 0.2% | |||
Industrial Machinery - 0.2% | |||
Meyer Burger Technology AG (a) | 24,700 | $ 622,675 | |
Shin Zu Shing Co. Ltd. | 156,732 | 637,421 | |
| 1,260,096 | ||
MEDIA - 0.9% | |||
Advertising - 0.8% | |||
AirMedia Group, Inc. ADR (a) | 128,600 | 997,936 | |
Focus Media Holding Ltd. ADR (a)(c) | 114,100 | 1,531,222 | |
VisionChina Media, Inc. ADR (a) | 274,900 | 2,388,881 | |
| 4,918,039 | ||
Cable & Satellite - 0.1% | |||
Virgin Media, Inc. | 40,700 | 577,533 | |
TOTAL MEDIA | 5,495,572 | ||
METALS & MINING - 0.0% | |||
Diversified Metals & Mining - 0.0% | |||
Globe Specialty Metals, Inc. | 22,200 | 206,238 | |
Timminco Ltd. (a) | 5,600 | 6,127 | |
| 212,365 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 17.5% | |||
Semiconductor Equipment - 4.1% | |||
Aixtron AG | 84,800 | 2,550,943 | |
Amkor Technology, Inc. (a) | 251,255 | 1,429,641 | |
ASM International NV (NASDAQ) (a) | 12,900 | 295,926 | |
ASML Holding NV (NY Shares) | 258,300 | 8,071,875 | |
Cymer, Inc. (a) | 16,400 | 514,468 | |
Lam Research Corp. (a) | 78,200 | 2,581,382 | |
LTX-Credence Corp. (a) | 497,102 | 1,247,726 | |
MEMC Electronic Materials, Inc. (a) | 80,900 | 1,017,722 | |
Photronics, Inc. (a) | 82,700 | 318,395 | |
Sumco Corp. | 35,000 | 604,077 | |
Tessera Technologies, Inc. (a) | 129,100 | 2,216,647 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 107,800 | 3,161,774 | |
Veeco Instruments, Inc. (a) | 12,398 | 394,504 | |
| 24,405,080 | ||
Semiconductors - 13.4% | |||
Advanced Micro Devices, Inc. (a) | 185,200 | 1,381,592 | |
Altera Corp. | 41,300 | 880,516 | |
Applied Micro Circuits Corp. (a) | 8,650 | 63,405 | |
Atmel Corp. (a) | 215,785 | 1,001,242 | |
Avago Technologies Ltd. | 487,600 | 8,474,488 | |
Broadcom Corp. Class A (a) | 172,400 | 4,606,528 | |
Cavium Networks, Inc. (a) | 250,018 | 5,402,889 | |
Cree, Inc. (a) | 95,040 | 5,313,686 | |
CSR PLC (a) | 177,985 | 1,270,944 | |
Cypress Semiconductor Corp. (a) | 230,800 | 2,319,540 | |
Epistar Corp. | 366,000 | 1,162,177 | |
| |||
Shares | Value | ||
Fairchild Semiconductor International, Inc. (a) | 73,300 | $ 658,234 | |
Global Unichip Corp. | 182,291 | 835,465 | |
Hittite Microwave Corp. (a) | 22,479 | 835,769 | |
Hynix Semiconductor, Inc. (a) | 56,830 | 1,115,612 | |
Infineon Technologies AG (a) | 106,796 | 582,038 | |
Inotera Memories, Inc. (a) | 997,000 | 718,938 | |
Inotera Memories, Inc. rights 2/3/10 (a) | 128,337 | 2,208 | |
Integrated Device Technology, Inc. (a) | 262,850 | 1,490,360 | |
Intel Corp. | 617,400 | 11,977,560 | |
International Rectifier Corp. (a) | 120,000 | 2,164,800 | |
Intersil Corp. Class A | 117,800 | 1,586,766 | |
LSI Corp. (a) | 111,500 | 556,385 | |
Marvell Technology Group Ltd. (a) | 325,705 | 5,677,038 | |
MediaTek, Inc. | 19,038 | 309,706 | |
Micron Technology, Inc. (a) | 469,785 | 4,096,525 | |
Microsemi Corp. (a) | 4,100 | 61,254 | |
Monolithic Power Systems, Inc. (a) | 50,500 | 1,041,310 | |
Netlogic Microsystems, Inc. (a) | 20,500 | 839,680 | |
NVIDIA Corp. (a) | 326,800 | 5,029,452 | |
Omnivision Technologies, Inc. (a) | 4,499 | 58,037 | |
Power Integrations, Inc. | 12,400 | 387,004 | |
Radiant Opto-Electronics Corp. | 334,750 | 463,403 | |
Rambus, Inc. (a) | 35,400 | 776,676 | |
Silicon Laboratories, Inc. (a) | 39,900 | 1,685,376 | |
Spreadtrum Communications, Inc. ADR (a) | 110,400 | 698,832 | |
Standard Microsystems Corp. (a) | 83,000 | 1,655,850 | |
Volterra Semiconductor Corp. (a) | 15,500 | 302,095 | |
Xilinx, Inc. | 37,600 | 886,608 | |
YoungTek Electronics Corp. | 83,000 | 186,954 | |
| 78,556,942 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 102,962,022 | ||
SOFTWARE - 28.8% | |||
Application Software - 9.3% | |||
ANSYS, Inc. (a) | 5,900 | 246,974 | |
AsiaInfo Holdings, Inc. (a) | 32,000 | 764,800 | |
Citrix Systems, Inc. (a) | 148,000 | 6,149,400 | |
Concur Technologies, Inc. (a) | 69,300 | 2,747,745 | |
Epicor Software Corp. (a) | 203,705 | 1,562,417 | |
Informatica Corp. (a) | 192,600 | 4,562,694 | |
JDA Software Group, Inc. (a) | 51,690 | 1,354,795 | |
Kingdee International Software Group Co. Ltd. | 13,588,000 | 3,360,269 | |
Longtop Financial Technologies Ltd. ADR (a) | 46,800 | 1,622,088 | |
Manhattan Associates, Inc. (a) | 14,412 | 302,220 | |
Mentor Graphics Corp. (a) | 113,900 | 913,478 | |
MicroStrategy, Inc. Class A (a) | 22,660 | 2,123,695 | |
Nuance Communications, Inc. (a) | 210,900 | 3,167,718 | |
Parametric Technology Corp. (a) | 254,700 | 4,217,832 | |
Common Stocks - continued | |||
Shares | Value | ||
SOFTWARE - CONTINUED | |||
Application Software - continued | |||
Pegasystems, Inc. | 50,500 | $ 1,679,125 | |
Salesforce.com, Inc. (a) | 133,100 | 8,458,505 | |
Smith Micro Software, Inc. (a) | 84,400 | 654,100 | |
SolarWinds, Inc. | 2,700 | 52,461 | |
SuccessFactors, Inc. (a) | 212,200 | 3,458,860 | |
Synchronoss Technologies, Inc. (a) | 69,848 | 1,170,652 | |
Synopsys, Inc. (a) | 100 | 2,127 | |
Taleo Corp. Class A (a) | 103,788 | 2,107,934 | |
TIBCO Software, Inc. (a) | 282,900 | 2,534,784 | |
Ulticom, Inc. | 79,731 | 765,418 | |
VanceInfo Technologies, Inc. ADR (a) | 22,000 | 352,660 | |
| 54,332,751 | ||
Home Entertainment Software - 0.5% | |||
Activision Blizzard, Inc. (a) | 114,000 | 1,158,240 | |
Changyou.com Ltd. (A Shares) ADR | 800 | 26,872 | |
Giant Interactive Group, Inc. ADR | 79,211 | 579,825 | |
NCsoft Corp. | 12,016 | 1,353,083 | |
Neowiz Games Corp. | 3,456 | 95,727 | |
| 3,213,747 | ||
Systems Software - 19.0% | |||
Ariba, Inc. (a) | 139,707 | 1,758,911 | |
BMC Software, Inc. (a) | 315,200 | 12,179,328 | |
Check Point Software Technologies Ltd. (a) | 1,700 | 54,366 | |
CommVault Systems, Inc. (a) | 33,100 | 701,389 | |
Fortinet, Inc. | 10,401 | 179,209 | |
Insyde Software Corp. | 209,539 | 845,629 | |
Microsoft Corp. | 2,222,375 | 62,626,529 | |
Oracle Corp. | 942,558 | 21,735,387 | |
Red Hat, Inc. (a) | 243,000 | 6,614,460 | |
Rovi Corp. (a) | 30,500 | 880,535 | |
Symantec Corp. (a) | 14,300 | 242,385 | |
VMware, Inc. Class A (a) | 80,426 | 3,652,145 | |
| 111,470,273 | ||
TOTAL SOFTWARE | 169,016,771 | ||
WIRELESS TELECOMMUNICATION SERVICES - 0.9% | |||
Wireless Telecommunication Services - 0.9% | |||
American Tower Corp. Class A (a) | 22,000 | 933,900 | |
Crown Castle International Corp. (a) | 25,100 | 927,194 | |
SBA Communications Corp. Class A (a) | 27,047 | 894,985 | |
Sprint Nextel Corp. (a) | 459,800 | 1,508,144 | |
Syniverse Holdings, Inc. (a) | 69,057 | 1,160,848 | |
| 5,425,071 | ||
TOTAL COMMON STOCKS (Cost $532,262,045) | 581,238,573 | ||
Convertible Bonds - 0.2% | ||||
| Principal Amount | Value | ||
COMMUNICATIONS EQUIPMENT - 0.2% | ||||
Communications Equipment - 0.2% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 1,270,000 | $ 1,037,082 | ||
Money Market Funds - 2.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (e) | 6,122,884 | 6,122,884 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 6,267,263 | 6,267,263 | |
TOTAL MONEY MARKET FUNDS (Cost $12,390,147) | 12,390,147 | ||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $545,922,192) | 594,665,802 | |
NET OTHER ASSETS - (1.3)% | (7,522,569) | |
NET ASSETS - 100% | $ 587,143,233 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $86,214 or 0.0% of net assets. |
(e) 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. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $355,644 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
China Security & Surveillance Technology, Inc. warrants 8/25/10 | 8/25/09 | $ 4 |
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 | $ 1,846 |
Fidelity Securities Lending Cash Central Fund | 78,852 |
Total | $ 80,698 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 581,238,573 | $ 569,983,503 | $ 10,934,110 | $ 320,960 |
Convertible Bonds | 1,037,082 | - | 1,037,082 | - |
Money Market Funds | 12,390,147 | 12,390,147 | - | - |
Total Investments in Securities: | $ 594,665,802 | $ 582,373,650 | $ 11,971,192 | $ 320,960 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 320,960 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 320,960 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.7% |
Cayman Islands | 4.0% |
Taiwan | 3.2% |
China | 2.3% |
Singapore | 1.8% |
Bermuda | 1.6% |
Canada | 1.6% |
Netherlands | 1.4% |
Japan | 1.4% |
Others (individually less than 1%) | 2.0% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $1,522,364,216 of which $889,719,837, $499,806,783 and $132,837,596 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $110,337,017 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Technology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,795,545) - See accompanying schedule: Unaffiliated issuers (cost $533,532,045) | $ 582,275,655 |
|
Fidelity Central Funds (cost $12,390,147) | 12,390,147 |
|
Total Investments (cost $545,922,192) |
| $ 594,665,802 |
Cash | 83,820 | |
Foreign currency held at value (cost $23) | 23 | |
Receivable for investments sold | 7,098,787 | |
Receivable for fund shares sold | 679,783 | |
Dividends receivable | 57,369 | |
Interest receivable | 785 | |
Distributions receivable from Fidelity Central Funds | 10,739 | |
Prepaid expenses | 2,084 | |
Other receivables | 47,891 | |
Total assets | 602,647,083 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,664,202 | |
Payable for fund shares redeemed | 1,818,837 | |
Accrued management fee | 296,894 | |
Distribution fees payable | 227,784 | |
Other affiliated payables | 195,975 | |
Other payables and accrued expenses | 32,895 | |
Collateral on securities loaned, at value | 6,267,263 | |
Total liabilities | 15,503,850 | |
|
|
|
Net Assets | $ 587,143,233 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,109,828,793 | |
Accumulated net investment loss | (2,207,064) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,569,214,212) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 48,735,716 | |
Net Assets | $ 587,143,233 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 18.03 | |
|
|
|
Maximum offering price per share (100/94.25 of $18.03) | $ 19.13 | |
Class T: | $ 17.51 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.51) | $ 18.15 | |
Class B: | $ 16.44 | |
|
|
|
Class C: | $ 16.51 | |
|
|
|
Institutional Class: | $ 18.77 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,163,814 |
Interest |
| 170,630 |
Income from Fidelity Central Funds (including $78,852 from security lending) |
| 80,698 |
Total income |
| 1,415,142 |
|
|
|
Expenses | ||
Management fee | $ 1,636,534 | |
Transfer agent fees | 1,003,399 | |
Distribution fees | 1,261,156 | |
Accounting and security lending fees | 115,296 | |
Custodian fees and expenses | 45,127 | |
Independent trustees' compensation | 1,783 | |
Registration fees | 51,271 | |
Audit | 28,611 | |
Legal | 2,650 | |
Interest | 52 | |
Miscellaneous | 4,570 | |
Total expenses before reductions | 4,150,449 | |
Expense reductions | (102,715) | 4,047,734 |
Net investment income (loss) | (2,632,592) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 72,881,270 | |
Foreign currency transactions | (8,557) | |
Capital gain distributions from Fidelity Central Funds | 1,063 | |
Total net realized gain (loss) |
| 72,873,776 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,983,619) | |
Assets and liabilities in foreign currencies | (8,946) | |
Total change in net unrealized appreciation (depreciation) |
| (6,992,565) |
Net gain (loss) | 65,881,211 | |
Net increase (decrease) in net assets resulting from operations | $ 63,248,619 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,632,592) | $ (112,131) |
Net realized gain (loss) | 72,873,776 | (206,821,306) |
Change in net unrealized appreciation (depreciation) | (6,992,565) | 162,039,261 |
Net increase (decrease) in net assets resulting from operations | 63,248,619 | (44,894,176) |
Share transactions - net increase (decrease) | 1,764,420 | (14,948,367) |
Redemption fees | 17,539 | 15,958 |
Total increase (decrease) in net assets | 65,030,578 | (59,826,585) |
|
|
|
Net Assets | ||
Beginning of period | 522,112,655 | 581,939,240 |
End of period (including accumulated net investment loss of $2,207,064 and undistributed net investment income of $425,528, respectively) | $ 587,143,233 | $ 522,112,655 |
See accompanying notes which are an integral part of the financial statements.
Technology
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | .02 H | (.10) | (.17) | (.15) | .02 I |
Net realized and unrealized gain (loss) | 2.07 | (1.03) | (3.41) | 5.13 | (.42) | 2.24 |
Total from investment operations | 2.00 | (1.01) | (3.51) | 4.96 | (.57) | 2.26 |
Distributions from net investment income | - | - | - | - | - | (.08) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 18.03 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 |
Total Return B, C, D | 12.48% | (5.93)% | (17.08)% | 31.82% | (3.53)% | 16.20% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.24% A | 1.23% | 1.21% | 1.25% | 1.30% | 1.37% |
Expenses net of fee waivers, if any | 1.24% A | 1.23% | 1.21% | 1.25% | 1.30% | 1.37% |
Expenses net of all reductions | 1.21% A | 1.22% | 1.19% | 1.24% | 1.20% | 1.26% |
Net investment income (loss) | (.72)% A | .17% H | (.49)% | (.91)% | (.88)% | .12% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 294,903 | $ 258,433 | $ 275,117 | $ 309,105 | $ 189,054 | $ 144,970 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.09) | (.01) H | (.14) | (.21) | (.19) | (.02) I |
Net realized and unrealized gain (loss) | 2.01 | (1.02) | (3.33) | 5.02 | (.41) | 2.21 |
Total from investment operations | 1.92 | (1.03) | (3.47) | 4.81 | (.60) | 2.19 |
Distributions from net investment income | - | - | - | - | - | (.07) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.51 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 |
Total Return B, C, D | 12.32% | (6.20)% | (17.27)% | 31.48% | (3.78)% | 15.94% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.50% A | 1.49% | 1.46% | 1.51% | 1.55% | 1.60% |
Expenses net of fee waivers, if any | 1.50% A | 1.49% | 1.46% | 1.51% | 1.55% | 1.60% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.45% | 1.49% | 1.44% | 1.48% |
Net investment income (loss) | (.98)% A | (.09)% H | (.74)% | (1.16)% | (1.13)% | (.11)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 161,773 | $ 151,170 | $ 173,917 | $ 260,339 | $ 260,966 | $ 315,930 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.44)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.07) H | (.23) | (.28) | (.27) | (.09) I |
Net realized and unrealized gain (loss) | 1.89 | (.98) | (3.15) | 4.79 | (.38) | 2.12 |
Total from investment operations | 1.77 | (1.05) | (3.38) | 4.51 | (.65) | 2.03 |
Distributions from net investment income | - | - | - | - | - | (.04) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.44 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 |
Total Return B, C, D | 12.07% | (6.68)% | (17.70)% | 30.91% | (4.27)% | 15.33% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.13% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.13% |
Expenses net of all reductions | 1.96% A | 1.97% | 1.94% | 2.00% | 1.94% | 2.02% |
Net investment income (loss) | (1.47)% A | (.58)% H | (1.24)% | (1.67)% | (1.63)% | (.65)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 31,088 | $ 30,580 | $ 47,294 | $ 102,655 | $ 192,790 | $ 309,020 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.07) H | (.23) | (.29) | (.27) | (.08) I |
Net realized and unrealized gain (loss) | 1.89 | (.98) | (3.16) | 4.81 | (.38) | 2.12 |
Total from investment operations | 1.77 | (1.05) | (3.39) | 4.52 | (.65) | 2.04 |
Distributions from net investment income | - | - | - | - | - | (.04) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.51 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 |
Total Return B, C, D | 12.01% | (6.65)% | (17.67)% | 30.83% | (4.25)% | 15.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.10% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.10% |
Expenses net of all reductions | 1.96% A | 1.97% | 1.94% | 1.99% | 1.94% | 1.99% |
Net investment income (loss) | (1.47)% A | (.58)% H | (1.24)% | (1.66)% | (1.63)% | (.61)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 65,483 | $ 55,645 | $ 63,590 | $ 86,974 | $ 82,835 | $ 108,287 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | .06 G | (.04) | (.11) | (.09) | .09 H |
Net realized and unrealized gain (loss) | 2.14 | (1.07) | (3.54) | 5.30 | (.44) | 2.30 |
Total from investment operations | 2.10 | (1.01) | (3.58) | 5.19 | (.53) | 2.39 |
Distributions from net investment income | - | - | - | - | - | (.11) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.77 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 |
Total Return B, C | 12.60% | (5.71)% | (16.84)% | 32.30% | (3.19)% | 16.73% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions | .94% A | .98% | .94% | .93% | .90% | .92% |
Expenses net of fee waivers, if any | .94% A | .98% | .94% | .93% | .90% | .92% |
Expenses net of all reductions | .90% A | .97% | .92% | .92% | .80% | .81% |
Net investment income (loss) | (.42)% A | .42% G | (.22)% | (.59)% | (.49)% | .57% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,896 | $ 26,285 | $ 22,021 | $ 21,111 | $ 11,681 | $ 11,640 |
Portfolio turnover rate F | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .07%. 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 (.42)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 (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 Securities and Exchange Commission
(the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon
request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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, net operating losses, market discount, capital loss carryforwards, and losses deferred to wash sales and excise tax regulations.
Technology
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 88,149,170 |
Gross unrealized depreciation | (44,784,086) |
Net unrealized appreciation (depreciation) | $ 43,365,084 |
|
|
Tax cost | $ 551,300,718 |
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.
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 $379,072,768 and $385,577,454, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 366,188 | $ 3,567 |
Class T | .25% | .25% | 412,310 | - |
Class B | .75% | .25% | 162,923 | 122,193 |
Class C | .75% | .25% | 319,735 | 32,476 |
|
|
| $ 1,261,156 | $ 158,236 |
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 |
Class A | $ 51,710 |
Class T | 10,200 |
Class B* | 22,806 |
Class C* | 1,707 |
| $ 86,423 |
* 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 |
Class A | $ 504,326 | .35 |
Class T | 287,528 | .35 |
Class B | 56,473 | .35 |
Class C | 110,072 | .35 |
Institutional Class | 45,000 | .29 |
| $ 1,003,399 |
|
* 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 $7,551 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 | Weighted Average | Interest |
Borrower | $ 5,042,000 | .37% | $ 52 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,110 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Technology
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 in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $102,715 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 2,567,733 | 3,881,770 | $ 47,062,667 | $ 49,340,225 |
Shares redeemed | (2,330,855) | (3,900,491) | (42,481,210) | (47,190,702) |
Net increase (decrease) | 236,878 | (18,721) | $ 4,581,457 | $ 2,149,523 |
Class T |
|
|
|
|
Shares sold | 887,760 | 2,072,898 | $ 15,740,848 | $ 24,512,394 |
Shares redeemed | (1,345,529) | (2,840,598) | (23,220,777) | (33,936,510) |
Net increase (decrease) | (457,769) | (767,700) | $ (7,479,929) | $ (9,424,116) |
Class B |
|
|
|
|
Shares sold | 214,176 | 327,585 | $ 3,573,195 | $ 3,794,593 |
Shares redeemed | (407,165) | (1,251,978) | (6,703,065) | (14,128,827) |
Net increase (decrease) | (192,989) | (924,393) | $ (3,129,870) | $ (10,334,234) |
Class C |
|
|
|
|
Shares sold | 555,406 | 654,688 | $ 9,319,120 | $ 7,947,929 |
Shares redeemed | (365,265) | (906,545) | (6,039,782) | (10,144,084) |
Net increase (decrease) | 190,141 | (251,857) | $ 3,279,338 | $ (2,196,155) |
Institutional Class |
|
|
|
|
Shares sold | 588,408 | 753,599 | $ 11,338,105 | $ 10,483,415 |
Shares redeemed | (359,829) | (422,236) | (6,824,681) | (5,626,800) |
Net increase (decrease) | 228,579 | 331,363 | $ 4,513,424 | $ 4,856,615 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.30% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,046.30 | $ 6.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.65 | $ 6.61 |
Class T | 1.56% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.00 | $ 8.04 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.34 | $ 7.93 |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,042.20 | $ 10.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.87 | $ 10.41 |
Class C | 2.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.60 | $ 10.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Institutional Class | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.70 | $ 5.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
American Electric Power Co., Inc. | 9.5 | 13.3 |
FirstEnergy Corp. | 9.1 | 9.6 |
PG&E Corp. | 8.8 | 4.9 |
Entergy Corp. | 8.2 | 4.8 |
CenterPoint Energy, Inc. | 6.9 | 6.2 |
FPL Group, Inc. | 6.8 | 6.8 |
Wisconsin Energy Corp. | 4.9 | 0.0 |
TECO Energy, Inc. | 4.9 | 5.0 |
Alliant Energy Corp. | 4.9 | 0.0 |
CMS Energy Corp. | 4.9 | 3.4 |
| 68.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Electric Utilities | 45.7% |
|
| Multi-Utilities | 35.3% |
|
| Independent Power Producers & Energy Traders | 12.5% |
|
| Gas Utilities | 5.5% |
|
| All Others* | 1.0% |
|
| |||
As of July 31, 2009 | |||
| Electric Utilities | 51.3% |
|
| Multi-Utilities | 29.9% |
|
| Independent Power Producers & Energy Traders | 17.1% |
|
| Commercial Services & Supplies | 0.9% |
|
| Electrical Equipment | 0.5% |
|
| All Others* | 0.3% |
|
* Includes short-term investments and net other assets. |
Utilities
Advisor Utilities Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
ELECTRIC UTILITIES - 45.7% | |||
Electric Utilities - 45.7% | |||
American Electric Power Co., Inc. | 371,600 | $ 12,875,940 | |
Entergy Corp. | 145,000 | 11,064,950 | |
FirstEnergy Corp. | 280,500 | 12,235,410 | |
FPL Group, Inc. | 188,200 | 9,176,632 | |
Hawaiian Electric Industries, Inc. (c) | 132,000 | 2,610,960 | |
ITC Holdings Corp. | 95,801 | 5,146,430 | |
NV Energy, Inc. | 417,100 | 4,804,992 | |
Pinnacle West Capital Corp. | 106,000 | 3,796,920 | |
| 61,712,234 | ||
GAS UTILITIES - 5.5% | |||
Gas Utilities - 5.5% | |||
Questar Corp. | 62,100 | 2,575,908 | |
UGI Corp. | 196,837 | 4,824,475 | |
| 7,400,383 | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 12.5% | |||
Independent Power Producers & Energy Traders - 12.5% | |||
AES Corp. | 306,700 | 3,873,621 | |
Calpine Corp. (a) | 598,200 | 6,550,290 | |
Constellation Energy Group, Inc. | 199,200 | 6,430,176 | |
| 16,854,087 | ||
MULTI-UTILITIES - 35.3% | |||
Multi-Utilities - 35.3% | |||
Alliant Energy Corp. | 212,300 | 6,623,760 | |
CenterPoint Energy, Inc. | 664,100 | 9,264,195 | |
CMS Energy Corp. | 436,600 | 6,623,222 | |
PG&E Corp. | 281,204 | 11,878,057 | |
| |||
Shares | Value | ||
TECO Energy, Inc. | 425,600 | $ 6,626,592 | |
Wisconsin Energy Corp. | 136,692 | 6,689,706 | |
| 47,705,532 | ||
TOTAL COMMON STOCKS (Cost $131,291,472) | 133,672,236 | ||
Money Market Funds - 2.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 2,571,923 | 2,571,923 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 473,550 | 473,550 | |
TOTAL MONEY MARKET FUNDS (Cost $3,045,473) | 3,045,473 | ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $134,336,945) | 136,717,709 | |
NET OTHER ASSETS - (1.2)% | (1,682,828) | |
NET ASSETS - 100% | $ 135,034,881 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 1,482 |
Fidelity Securities Lending Cash Central Fund | 2,560 |
Total | $ 4,042 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $246,849,971 of which $78,569,521, $154,412,532 and $13,867,918 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $34,108,371 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $456,918) - See accompanying schedule: Unaffiliated issuers (cost $131,291,472) | $ 133,672,236 |
|
Fidelity Central Funds (cost $3,045,473) | 3,045,473 |
|
Total Investments (cost $134,336,945) |
| $ 136,717,709 |
Receivable for investments sold | 9,462,882 | |
Receivable for fund shares sold | 91,819 | |
Dividends receivable | 86,744 | |
Distributions receivable from Fidelity Central Funds | 327 | |
Prepaid expenses | 551 | |
Other receivables | 10,750 | |
Total assets | 146,370,782 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,240,664 | |
Payable for fund shares redeemed | 430,593 | |
Accrued management fee | 65,780 | |
Distribution fees payable | 56,085 | |
Other affiliated payables | 44,778 | |
Other payables and accrued expenses | 24,451 | |
Collateral on securities loaned, at value | 473,550 | |
Total liabilities | 11,335,901 | |
|
|
|
Net Assets | $ 135,034,881 | |
Net Assets consist of: |
| |
Paid in capital | $ 419,785,584 | |
Distributions in excess of net investment income | (156,372) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (286,980,162) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,385,831 | |
Net Assets | $ 135,034,881 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.58) | $ 16.53 | |
Class T: | $ 15.60 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.60) | $ 16.17 | |
Class B: | $ 15.44 | |
|
|
|
Class C: | $ 15.36 | |
|
|
|
Institutional Class: | $ 15.81 | |
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 Utilities Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,628,021 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 4,042 |
Total income |
| 2,632,065 |
|
|
|
Expenses | ||
Management fee | $ 385,919 | |
Transfer agent fees | 241,570 | |
Distribution fees | 332,199 | |
Accounting and security lending fees | 27,139 | |
Custodian fees and expenses | 3,920 | |
Independent trustees' compensation | 433 | |
Registration fees | 34,787 | |
Audit | 25,715 | |
Legal | 1,796 | |
Miscellaneous | 1,428 | |
Total expenses before reductions | 1,054,906 | |
Expense reductions | (23,031) | 1,031,875 |
Net investment income (loss) | 1,600,190 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,929,466 | |
Foreign currency transactions | 742 | |
Total net realized gain (loss) |
| 1,930,208 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,485,902 | |
Assets and liabilities in foreign currencies | 4,883 | |
Total change in net unrealized appreciation (depreciation) |
| 2,490,785 |
Net gain (loss) | 4,420,993 | |
Net increase (decrease) in net assets resulting from operations | $ 6,021,183 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,600,190 | $ 3,120,844 |
Net realized gain (loss) | 1,930,208 | (55,782,452) |
Change in net unrealized appreciation (depreciation) | 2,490,785 | (1,796,906) |
Net increase (decrease) in net assets resulting from operations | 6,021,183 | (54,458,514) |
Distributions to shareholders from net investment income | (3,192,007) | (2,162,549) |
Share transactions - net increase (decrease) | (5,208,027) | (29,372,654) |
Redemption fees | 553 | 4,076 |
Total increase (decrease) in net assets | (2,378,298) | (85,989,641) |
|
|
|
Net Assets | ||
Beginning of period | 137,413,179 | 223,402,820 |
End of period (including distributions in excess of net investment income of $156,372 and undistributed net investment income of $1,435,445, respectively) | $ 135,034,881 | $ 137,413,179 |
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .20 | .35 | .24 | .21 | .24 | .28 H |
Net realized and unrealized gain (loss) | .51 | (5.10) | (.38) | 3.56 | 2.06 | 3.01 |
Total from investment operations | .71 | (4.75) | (.14) | 3.77 | 2.30 | 3.29 |
Distributions from net investment income | (.40) | (.26) | (.32) | (.23) | (.27) | (.21) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.58 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 |
Total Return B, C, D | 4.63% | (23.44)% | (.82)% | 22.14% | 15.38% | 27.48% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.30% A | 1.26% | 1.21% | 1.27% | 1.34% | 1.39% |
Expenses net of fee waivers, if any | 1.30% A | 1.26% | 1.21% | 1.27% | 1.34% | 1.39% |
Expenses net of all reductions | 1.26% A | 1.26% | 1.21% | 1.26% | 1.32% | 1.36% |
Net investment income (loss) | 2.55% A | 2.37% | 1.11% | 1.04% | 1.51% | 2.03% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 64,523 | $ 66,064 | $ 105,219 | $ 94,842 | $ 40,599 | $ 29,150 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .18 | .31 | .18 | .15 | .19 | .24 H |
Net realized and unrealized gain (loss) | .51 | (5.10) | (.39) | 3.56 | 2.08 | 2.99 |
Total from investment operations | .69 | (4.79) | (.21) | 3.71 | 2.27 | 3.23 |
Distributions from net investment income | (.36) | (.20) | (.24) | (.18) | (.19) | (.17) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.60 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 |
Total Return B, C, D | 4.50% | (23.61)% | (1.11)% | 21.74% | 15.20% | 27.03% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.56% A | 1.52% | 1.47% | 1.54% | 1.60% | 1.67% |
Expenses net of fee waivers, if any | 1.56% A | 1.52% | 1.47% | 1.54% | 1.60% | 1.67% |
Expenses net of all reductions | 1.52% A | 1.52% | 1.47% | 1.54% | 1.58% | 1.64% |
Net investment income (loss) | 2.29% A | 2.11% | .84% | .76% | 1.25% | 1.76% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,545 | $ 33,989 | $ 54,346 | $ 62,592 | $ 52,128 | $ 55,683 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .24 | .08 | .05 | .12 | .17 H |
Net realized and unrealized gain (loss) | .50 | (5.04) | (.39) | 3.52 | 2.03 | 2.95 |
Total from investment operations | .64 | (4.80) | (.31) | 3.57 | 2.15 | 3.12 |
Distributions from net investment income | (.28) | (.13) | (.08) | (.07) | (.08) | (.11) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 |
Total Return B, C, D | 4.22% | (23.97)% | (1.59)% | 21.18% | 14.57% | 26.51% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.05% A | 2.01% | 1.96% | 2.04% | 2.09% | 2.14% |
Expenses net of fee waivers, if any | 2.05% A | 2.01% | 1.96% | 2.04% | 2.09% | 2.14% |
Expenses net of all reductions | 2.01% A | 2.01% | 1.95% | 2.03% | 2.06% | 2.11% |
Net investment income (loss) | 1.80% A | 1.62% | .36% | .27% | .76% | 1.28% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,424 | $ 10,634 | $ 20,747 | $ 43,845 | $ 65,959 | $ 82,577 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .24 | .08 | .06 | .13 | .18 H |
Net realized and unrealized gain (loss) | .49 | (5.02) | (.39) | 3.51 | 2.04 | 2.94 |
Total from investment operations | .63 | (4.78) | (.31) | 3.57 | 2.17 | 3.12 |
Distributions from net investment income | (.29) | (.13) | (.14) | (.10) | (.10) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.36 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 |
Total Return B, C, D | 4.16% | (23.96)% | (1.58)% | 21.23% | 14.72% | 26.48% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.04% A | 2.01% | 1.95% | 1.99% | 2.02% | 2.07% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 1.95% | 1.99% | 2.02% | 2.07% |
Expenses net of all reductions | 2.01% A | 2.01% | 1.95% | 1.99% | 2.00% | 2.04% |
Net investment income (loss) | 1.80% A | 1.62% | .36% | .32% | .83% | 1.36% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 21,856 | $ 22,352 | $ 37,387 | $ 43,292 | $ 32,823 | $ 34,827 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .23 | .39 | .31 | .29 | .30 | .33 G |
Net realized and unrealized gain (loss) | .52 | (5.17) | (.38) | 3.58 | 2.10 | 3.03 |
Total from investment operations | .75 | (4.78) | (.07) | 3.87 | 2.40 | 3.36 |
Distributions from net investment income | (.45) | (.23) | (.36) | (.30) | (.33) | (.25) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 |
Total Return B, C | 4.77% | (23.24)% | (.49)% | 22.54% | 15.95% | 27.88% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.03% A | 1.00% | .91% | .92% | .94% | .99% |
Expenses net of fee waivers, if any | 1.03% A | 1.00% | .91% | .92% | .94% | .99% |
Expenses net of all reductions | .99% A | 1.00% | .90% | .92% | .92% | .96% |
Net investment income (loss) | 2.82% A | 2.63% | 1.41% | 1.39% | 1.91% | 2.44% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,687 | $ 4,373 | $ 5,704 | $ 12,822 | $ 6,479 | $ 1,766 |
Portfolio turnover rate F | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Utilities
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
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. 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, market discount, capital loss carryforwards, and losses deferred to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 8,118,601 |
Gross unrealized depreciation | (13,743,068) |
Net unrealized appreciation (depreciation) | $ (5,624,467) |
|
|
Tax cost | $ 142,342,176 |
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $137,612,401 and $145,244,727, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 83,589 | $ 1,659 |
Class T | .25% | .25% | 86,000 | - |
Class B | .75% | .25% | 51,619 | 38,714 |
Class C | .75% | .25% | 110,991 | 7,036 |
|
|
| $ 332,199 | $ 47,409 |
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 |
Class A | $ 12,290 |
Class T | 3,450 |
Class B* | 11,117 |
Class C* | 473 |
| $ 27,330 |
* 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 |
Class A | $ 116,248 | .35 |
Class T | 61,891 | .36 |
Class B | 18,078 | .35 |
Class C | 38,412 | .35 |
Institutional Class | 6,941 | .33 |
| $ 241,570 |
|
* Annualized
Utilities
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $539 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $275 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $2,560.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $23,031 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2010 | Year ended | |
From net investment income |
|
|
Class A | $ 1,700,299 | $ 1,279,763 |
Class T | 782,544 | 508,856 |
Class B | 184,052 | 107,816 |
Class C | 413,373 | 209,682 |
Institutional Class | 111,739 | 56,432 |
Total | $ 3,192,007 | $ 2,162,549 |
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, 2010 | Year ended | Six months ended January 31, 2010 | Year ended | |
Class A |
|
|
|
|
Shares sold | 318,418 | 856,135 | $ 5,058,639 | $ 12,539,810 |
Reinvestment of distributions | 96,455 | 73,926 | 1,532,368 | 1,138,401 |
Shares redeemed | (598,478) | (1,794,060) | (9,489,270) | (25,956,960) |
Net increase (decrease) | (183,605) | (863,999) | $ (2,898,263) | $ (12,278,749) |
Class T |
|
|
|
|
Shares sold | 130,816 | 257,339 | $ 2,085,489 | $ 3,753,639 |
Reinvestment of distributions | 46,549 | 31,967 | 741,068 | 480,828 |
Shares redeemed | (252,246) | (746,038) | (3,990,532) | (10,889,452) |
Net increase (decrease) | (74,881) | (456,732) | $ (1,163,975) | $ (6,654,985) |
Class B |
|
|
|
|
Shares sold | 38,033 | 154,111 | $ 596,720 | $ 2,249,187 |
Reinvestment of distributions | 10,581 | 6,919 | 167,054 | 98,250 |
Shares redeemed | (143,424) | (492,642) | (2,243,240) | (7,223,742) |
Net increase (decrease) | (94,810) | (331,612) | $ (1,479,466) | $ (4,876,305) |
Class C |
|
|
|
|
Shares sold | 112,885 | 216,794 | $ 1,784,938 | $ 3,077,077 |
Reinvestment of distributions | 20,487 | 11,490 | 322,152 | 162,462 |
Shares redeemed | (199,276) | (615,787) | (3,098,449) | (8,815,385) |
Net increase (decrease) | (65,904) | (387,503) | $ (991,359) | $ (5,575,846) |
Institutional Class |
|
|
|
|
Shares sold | 170,310 | 137,801 | $ 2,803,315 | $ 1,988,698 |
Reinvestment of distributions | 5,221 | 2,995 | 84,041 | 45,330 |
Shares redeemed | (97,698) | (136,905) | (1,562,320) | (2,020,797) |
Net increase (decrease) | 77,833 | 3,891 | $ 1,325,036 | $ 13,231 |
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.
Utilities
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
FIL 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-0310
1.789279.107
Fidelity Advisor
Focus Funds®
Institutional Class
Biotechnology
Communications Equipment
Consumer Discretionary
Electronics
Energy
Financial Services
Health Care
Industrials
Technology
Utilities
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Biotechnology | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Communications Equipment | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Consumer Discretionary | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Electronics | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Energy | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Financial Services | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Health Care | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Industrials | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Technology | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Utilities | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the 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
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
Edward C. Johnson 3d
Semiannual Report
Advisor Biotechnology Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.40 | $ 7.06 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.00 | $ 8.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 998.50 | $ 10.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 998.50 | $ 10.83 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.20 | $ 5.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.51 | $ 5.75 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
Amgen, Inc. | 20.9 | 21.5 |
Gilead Sciences, Inc. | 6.8 | 5.5 |
Alexion Pharmaceuticals, Inc. | 6.0 | 6.8 |
Vertex Pharmaceuticals, Inc. | 4.4 | 4.7 |
Acorda Therapeutics, Inc. | 4.3 | 3.3 |
United Therapeutics Corp. | 4.3 | 5.0 |
Biogen Idec, Inc. | 4.3 | 8.5 |
Genzyme Corp. | 4.2 | 3.7 |
Cephalon, Inc. | 4.1 | 3.5 |
BioMarin Pharmaceutical, Inc. | 3.8 | 2.5 |
| 63.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
 | Biotechnology | 93.1% |
|
 | Pharmaceuticals | 6.7% |
|
 | Health Care | 0.5% |
|
 | All Others † | (0.3)% |
|
As of July 31, 2009 | |||
| Biotechnology | 92.5% |
|
| Pharmaceuticals | 6.7% |
|
 | Life Sciences | 0.5% |
|
 | Health Care | 0.3% |
|
 | All Others* | 0.0% |
|
† Short-term investments and net other assets are not included in the pie chart. |
* Includes short-term investments and net other assets. |
Biotechnology
Advisor Biotechnology Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.1% | |||
Shares | Value | ||
BIOTECHNOLOGY - 92.9% | |||
Biotechnology - 92.9% | |||
Abraxis BioScience, Inc. (a) | 3,109 | $ 127,003 | |
Acadia Pharmaceuticals, Inc. (a) | 15,574 | 19,468 | |
Acorda Therapeutics, Inc. (a) | 80,016 | 2,238,848 | |
Affymax, Inc. (a) | 12,304 | 258,384 | |
Alexion Pharmaceuticals, Inc. (a) | 66,408 | 3,079,339 | |
Alkermes, Inc. (a) | 35,861 | 392,319 | |
Allos Therapeutics, Inc. (a)(c) | 108,330 | 786,476 | |
Alnylam Pharmaceuticals, Inc. (a)(c) | 8,900 | 150,410 | |
AMAG Pharmaceuticals, Inc. (a)(c) | 7,500 | 329,850 | |
Amgen, Inc. (a) | 184,375 | 10,782,248 | |
Amylin Pharmaceuticals, Inc. (a)(c) | 35,000 | 629,300 | |
Anadys Pharmaceuticals, Inc. (a) | 20,555 | 41,521 | |
Antigenics, Inc. (a)(c) | 53,000 | 39,856 | |
Antigenics, Inc. warrants 1/9/18 (a)(e) | 452,000 | 309,315 | |
Arena Pharmaceuticals, Inc. (a)(c) | 31,420 | 98,030 | |
Biogen Idec, Inc. (a) | 40,826 | 2,193,989 | |
BioMarin Pharmaceutical, Inc. (a) | 99,966 | 1,942,339 | |
Celera Corp. (a) | 28,200 | 189,786 | |
Celgene Corp. (a) | 22,215 | 1,261,368 | |
Cephalon, Inc. (a) | 32,694 | 2,087,185 | |
Cepheid, Inc. (a) | 6,000 | 88,140 | |
Clinical Data, Inc. (a)(c) | 19,584 | 301,006 | |
Cubist Pharmaceuticals, Inc. (a) | 3,692 | 75,649 | |
Dendreon Corp. (a)(c) | 59,700 | 1,653,690 | |
Enzon Pharmaceuticals, Inc. (a)(c) | 16,900 | 168,493 | |
Exelixis, Inc. (a) | 33,100 | 219,453 | |
Facet Biotech Corp. (a) | 14,600 | 229,950 | |
Genomic Health, Inc. (a) | 2,100 | 34,713 | |
Genzyme Corp. (a) | 39,832 | 2,161,284 | |
Gilead Sciences, Inc. (a) | 72,502 | 3,499,672 | |
Halozyme Therapeutics, Inc. (a) | 9,910 | 53,712 | |
Human Genome Sciences, Inc. (a)(c) | 53,508 | 1,416,357 | |
ImmunoGen, Inc. (a) | 1,000 | 6,990 | |
Incyte Corp. (a)(c) | 49,995 | 533,947 | |
InterMune, Inc. | 22,917 | 357,734 | |
Isis Pharmaceuticals, Inc. (a) | 37,900 | 422,964 | |
Lexicon Pharmaceuticals, Inc. (a)(c) | 164,993 | 293,688 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 23,700 | 41,949 | |
MannKind Corp. (a)(c) | 20,600 | 208,472 | |
Martek Biosciences (a) | 2,900 | 62,466 | |
Medivation, Inc. (a)(c) | 22,829 | 759,977 | |
Micromet, Inc. (a)(c) | 8,200 | 63,714 | |
Momenta Pharmaceuticals, Inc. (a)(c) | 21,729 | 317,026 | |
Myriad Genetics, Inc. (a) | 24,324 | 571,614 | |
Myriad Pharmaceuticals, Inc. (a) | 302 | 1,410 | |
ONYX Pharmaceuticals, Inc. (a) | 4,848 | 139,428 | |
OSI Pharmaceuticals, Inc. (a) | 9,203 | 314,927 | |
| |||
Shares | Value | ||
PDL BioPharma, Inc. (c) | 19,188 | $ 122,803 | |
Pharmasset, Inc. (a) | 12,442 | 260,038 | |
Progenics Pharmaceuticals, Inc. (a) | 4,500 | 20,250 | |
Regeneron Pharmaceuticals, Inc. (a) | 22,449 | 598,490 | |
Rigel Pharmaceuticals, Inc. (a) | 24,029 | 197,278 | |
Sangamo Biosciences, Inc. (a)(c) | 7,098 | 39,039 | |
Savient Pharmaceuticals, Inc. (a) | 17,955 | 230,363 | |
Seattle Genetics, Inc. (a) | 23,121 | 238,609 | |
Sinovac Biotech Ltd. (a) | 11,700 | 70,200 | |
Targacept, Inc. (a) | 15,109 | 316,534 | |
Theratechnologies, Inc. (a) | 1,900 | 8,245 | |
United Therapeutics Corp. (a) | 36,904 | 2,198,371 | |
Vanda Pharmaceuticals, Inc. (a)(c) | 28,500 | 285,285 | |
Vertex Pharmaceuticals, Inc. (a) | 58,704 | 2,254,234 | |
Zymogenetics, Inc. (a) | 8,495 | 48,167 | |
| 47,843,365 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5% | |||
Health Care Equipment - 0.2% | |||
Alsius Corp. (a) | 14,200 | 582 | |
Aradigm Corp. (a) | 21,800 | 3,052 | |
Delcath Systems, Inc. (a)(c) | 16,000 | 68,960 | |
| 72,594 | ||
Health Care Supplies - 0.3% | |||
Quidel Corp. (a) | 11,170 | 148,338 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 220,932 | ||
PHARMACEUTICALS - 6.7% | |||
Pharmaceuticals - 6.7% | |||
Adolor Corp. (a) | 28,099 | 44,115 | |
Akorn, Inc. (a) | 54,479 | 86,622 | |
Alexza Pharmaceuticals, Inc. (a) | 6,581 | 17,111 | |
Auxilium Pharmaceuticals, Inc. (a) | 47,258 | 1,330,785 | |
Biodel, Inc. (a) | 95,569 | 383,232 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 12,900 | 128,484 | |
Elan Corp. PLC sponsored ADR (a) | 72,250 | 538,263 | |
Inspire Pharmaceuticals, Inc. (a) | 1,370 | 7,549 | |
Jazz Pharmaceuticals, Inc. (a) | 6,435 | 60,489 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 25,988 | 320,172 | |
ViroPharma, Inc. (a) | 35,188 | 347,657 | |
XenoPort, Inc. (a) | 9,900 | 182,952 | |
| 3,447,431 | ||
TOTAL COMMON STOCKS (Cost $46,722,753) | 51,511,728 | ||
Convertible Bonds - 0.2% | ||||
| Principal Amount | Value | ||
BIOTECHNOLOGY - 0.2% | ||||
Biotechnology - 0.2% | ||||
OSI Pharmaceuticals, Inc. 3.25% 9/8/23 | $ 130,000 | $ 123,825 | ||
Money Market Funds - 6.6% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (d) | 410,736 | 410,736 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 3,008,845 | 3,008,845 | |
TOTAL MONEY MARKET FUNDS (Cost $3,419,581) | 3,419,581 | ||
TOTAL INVESTMENT PORTFOLIO - 106.9% (Cost $50,249,777) | 55,055,134 |
NET OTHER ASSETS - (6.9)% | (3,569,237) | ||
NET ASSETS - 100% | $ 51,485,897 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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. |
(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 $309,315 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Antigenics, Inc. warrants 1/9/18 | 1/9/08 | $ 563,722 |
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 | $ 319 |
Fidelity Securities Lending Cash Central Fund | 22,194 |
Total | $ 22,513 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 51,511,728 | $ 51,201,831 | $ 309,315 | $ 582 |
Convertible Bonds | 123,825 | - | 123,825 | - |
Money Market Funds | 3,419,581 | 3,419,581 | - | - |
Total Investments in Securities | $ 55,055,134 | $ 54,621,412 | $ 433,140 | $ 582 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (270) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | 852 |
Ending Balance | $ 582 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ (270) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $4,539,063 all of which will expire on July 31, 2017. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,897,800) - See accompanying schedule: Unaffiliated issuers (cost $46,830,196) | $ 51,635,553 |
|
Fidelity Central Funds (cost $3,419,581) | 3,419,581 |
|
Total Investments (cost $50,249,777) |
| $ 55,055,134 |
Receivable for investments sold | 2,210,133 | |
Receivable for fund shares sold | 86,735 | |
Interest receivable | 1,667 | |
Distributions receivable from Fidelity Central Funds | 2,577 | |
Prepaid expenses | 213 | |
Other receivables | 682 | |
Total assets | 57,357,141 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,700,396 | |
Payable for fund shares redeemed | 71,817 | |
Accrued management fee | 26,146 | |
Distribution fees payable | 24,344 | |
Other affiliated payables | 15,973 | |
Other payables and accrued expenses | 23,723 | |
Collateral on securities loaned, at value | 3,008,845 | |
Total liabilities | 5,871,244 | |
|
|
|
Net Assets | $ 51,485,897 | |
Net Assets consist of: |
| |
Paid in capital | $ 53,140,878 | |
Accumulated net investment loss | (347,860) | |
Accumulated undistributed net realized gain (loss) on investments | (6,112,478) | |
Net unrealized appreciation (depreciation) on investments | 4,805,357 | |
Net Assets | $ 51,485,897 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 6.95 | |
|
|
|
Maximum offering price per share (100/94.25 of $6.95) | $ 7.37 | |
Class T: | $ 6.78 | |
|
|
|
Maximum offering price per share (100/96.50 of $6.78) | $ 7.03 | |
Class B: | $ 6.46 | |
|
|
|
Class C: | $ 6.46 | |
|
|
|
Institutional Class: | $ 7.15 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Special dividends |
| $ 73,514 |
Interest |
| 2,698 |
Income from Fidelity Central Funds (including $22,194 from security lending) |
| 22,513 |
Total income |
| 98,725 |
|
|
|
Expenses | ||
Management fee | $ 145,821 | |
Transfer agent fees | 92,536 | |
Distribution fees | 148,329 | |
Accounting and security lending fees | 10,440 | |
Custodian fees and expenses | 6,412 | |
Independent trustees' compensation | 160 | |
Registration fees | 44,035 | |
Audit | 22,247 | |
Legal | 237 | |
Miscellaneous | 507 | |
Total expenses before reductions | 470,724 | |
Expense reductions | (24,044) | 446,680 |
Net investment income (loss) | (347,955) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (799,549) |
Change in net unrealized appreciation (depreciation) on investment securities | 1,034,158 | |
Net gain (loss) | 234,609 | |
Net increase (decrease) in net assets resulting from operations | $ (113,346) | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (347,955) | $ (837,247) |
Net realized gain (loss) | (799,549) | (282,180) |
Change in net unrealized appreciation (depreciation) | 1,034,158 | (7,383,033) |
Net increase (decrease) in net assets resulting from operations | (113,346) | (8,502,460) |
Share transactions - net increase (decrease) | (3,318,909) | 4,533,971 |
Redemption fees | 411 | 29,559 |
Total increase (decrease) in net assets | (3,431,844) | (3,938,930) |
|
|
|
Net Assets | ||
Beginning of period | 54,917,741 | 58,856,671 |
End of period (including accumulated net investment loss of $347,860 and undistributed net investment income of $95, respectively) | $ 51,485,897 | $ 54,917,741 |
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 | $ 6.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.08) | (.09) I | (.09) | (.09) | (.08) J |
Net realized and unrealized gain (loss) | .04 | (.79) | 1.20 | .51 | .10 | .88 |
Total from investment operations | .01 | (.87) | 1.11 | .42 | .01 | .80 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.95 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 |
Total Return B, C, D | .14% | (11.14)% | 15.95% | 6.17% | .15% | 13.33% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.48% A | 1.40% | 1.37% | 1.42% | 1.48% | 1.56% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.37% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.39% A | 1.40% | 1.37% | 1.40% | 1.37% | 1.43% |
Net investment income (loss) | (1.02)% A, H | (1.27)% | (1.24)% I | (1.25)% | (1.29)% | (1.36)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 19,619 | $ 19,858 | $ 18,249 | $ 13,081 | $ 12,539 | $ 11,022 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.30)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 | $ 5.95 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) H | (.09) | (.11) I | (.11) | (.11) | (.10) J |
Net realized and unrealized gain (loss) | .04 | (.78) | 1.18 | .51 | .10 | .87 |
Total from investment operations | - | (.87) | 1.07 | .40 | (.01) | .77 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.78 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 |
Total Return B, C, D | -% | (11.37)% | 15.64% | 5.96% | (.15)% | 12.94% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.77% A | 1.71% | 1.69% | 1.75% | 1.79% | 1.93% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.70% |
Expenses net of all reductions | 1.65% A | 1.65% | 1.65% | 1.65% | 1.62% | 1.68% |
Net investment income (loss) | (1.27)% A, H | (1.52)% | (1.53)% I | (1.49)% | (1.54)% | (1.61)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,168 | $ 13,356 | $ 15,123 | $ 13,008 | $ 13,808 | $ 14,177 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.55)%. 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 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 | $ 5.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) | (.14) I | (.14) | (.14) | (.13) J |
Net realized and unrealized gain (loss) | .05 | (.75) | 1.13 | .50 | .10 | .85 |
Total from investment operations | (.01) | (.87) | .99 | .36 | (.04) | .72 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.46 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 |
Total Return B, C, D | (.15)% | (11.85)% | 14.96% | 5.52% | (.61)% | 12.33% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.23% A | 2.15% | 2.12% | 2.17% | 2.23% | 2.33% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.12% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.15% A | 2.15% | 2.12% | 2.15% | 2.12% | 2.18% |
Net investment income (loss) | (1.77)% A, H | (2.02)% | (2.00)% I | (1.99)% | (2.04)% | (2.11)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 6,498 | $ 7,377 | $ 11,044 | $ 12,656 | $ 14,938 | $ 16,921 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (2.05)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 | $ 5.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) | (.13) I | (.14) | (.14) | (.13) J |
Net realized and unrealized gain (loss) | .05 | (.75) | 1.12 | .50 | .09 | .86 |
Total from investment operations | (.01) | (.87) | .99 | .36 | (.05) | .73 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 6.46 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 |
Total Return B, C, D | (.15)% | (11.85)% | 14.96% | 5.52% | (.76)% | 12.50% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.23% A | 2.15% | 2.12% | 2.16% | 2.17% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.12% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.12% | 2.15% | 2.12% | 2.18% |
Net investment income (loss) | (1.77)% A, H | (2.02)% | (2.00)% I | (1.99)% | (2.04)% | (2.11)% J |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 11,616 | $ 12,426 | $ 13,323 | $ 11,813 | $ 13,787 | $ 12,538 |
Portfolio turnover rate G | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (2.05)%. I Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. J 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)%. K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Biotechnology
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 | $ 6.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.06) | (.07) H | (.07) | (.07) | (.06) I |
Net realized and unrealized gain (loss) | .06 | (.82) | 1.23 | .53 | .09 | .89 |
Total from investment operations | .03 | (.88) | 1.16 | .46 | .02 | .83 |
Distributions from net realized gain | - | - | (.53) | - | - | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 7.15 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 |
Total Return B, C | .42% | (11.00)% | 16.35% | 6.66% | .29% | 13.70% |
Ratios to Average Net Assets E, J |
|
|
|
|
|
|
Expenses before reductions | 1.13% A | 1.11% | 1.06% | 1.06% | 1.05% | 1.10% |
Expenses net of fee waivers, if any | 1.13% A | 1.11% | 1.06% | 1.06% | 1.05% | 1.10% |
Expenses net of all reductions | 1.13% A | 1.11% | 1.06% | 1.06% | 1.03% | 1.09% |
Net investment income (loss) | (.75)% A, G | (.98)% | (.94)% H | (.91)% | (.94)% | (1.02)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,586 | $ 1,901 | $ 1,117 | $ 991 | $ 1,268 | $ 1,243 |
Portfolio turnover rate F | 115% A | 73% | 132% | 120% | 62% | 30% |
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 special dividends which amounted to $.01 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been (1.03)%. H Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
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. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
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, market discount, net operating losses, capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 8,170,370 |
|
Gross unrealized depreciation | (4,292,214) |
|
Net unrealized appreciation (depreciation) | $ 3,878,156 |
|
|
|
|
Tax cost | $ 51,176,978 |
|
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.
Biotechnology
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $29,698,757 and $33,215,186, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 24,392 | $ 74 |
Class T | .25% | .25% | 31,364 | - |
Class B | .75% | .25% | 33,870 | 25,446 |
Class C | .75% | .25% | 58,703 | 8,815 |
|
|
| $ 148,329 | $ 34,335 |
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 |
Class A | $ 6,074 |
Class T | 3,310 |
Class B* | 8,581 |
Class C* | 678 |
| $ 18,643 |
* 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 |
Class A | $ 33,778 | .35 |
Class T | 24,568 | .39 |
Class B | 11,811 | .35 |
Class C | 20,407 | .35 |
Institutional Class | 1,972 | .25 |
| $ 92,536 |
|
* 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 $383 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $105 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 | Reimbursement |
Class A | 1.40% | $ 7,676 |
Class T | 1.65% | 7,647 |
Class B | 2.15% | 2,645 |
Class C | 2.15% | 4,664 |
|
| $ 22,632 |
Biotechnology
9. Expense Reductions - continued
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 $1,412 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 426,216 | 2,341,295 | $ 2,899,468 | $ 15,410,062 |
Shares redeemed | (467,676) | (1,815,151) | (3,145,068) | (11,129,933) |
Net increase (decrease) | (41,460) | 526,144 | $ (245,600) | $ 4,280,129 |
Class T |
|
|
|
|
Shares sold | 167,854 | 826,391 | $ 1,114,756 | $ 5,258,554 |
Shares redeemed | (345,484) | (832,503) | (2,262,400) | (5,110,823) |
Net increase (decrease) | (177,630) | (6,112) | $ (1,147,644) | $ 147,731 |
Class B |
|
|
|
|
Shares sold | 91,901 | 365,766 | $ 579,620 | $ 2,311,576 |
Shares redeemed | (226,477) | (730,232) | (1,416,559) | (4,256,288) |
Net increase (decrease) | (134,576) | (364,466) | $ (836,939) | $ (1,944,712) |
Class C |
|
|
|
|
Shares sold | 172,141 | 793,743 | $ 1,078,601 | $ 5,016,886 |
Shares redeemed | (295,043) | (688,414) | (1,857,592) | (3,988,392) |
Net increase (decrease) | (122,902) | 105,329 | $ (778,991) | $ 1,028,494 |
Institutional Class |
|
|
|
|
Shares sold | 45,061 | 390,521 | $ 317,311 | $ 2,696,069 |
Shares redeemed | (90,262) | (263,268) | (627,046) | (1,673,740) |
Net increase (decrease) | (45,201) | 127,253 | $ (309,735) | $ 1,022,329 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Advisor Communications Equipment Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.20 | $ 7.20 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,039.30 | $ 8.48 |
Hypothetical A |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,036.60 | $ 11.04 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,036.70 | $ 11.04 |
Hypothetical A |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.60 | $ 5.92 |
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).
Semiannual Report
Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Cisco Systems, Inc. | 13.5 | 16.0 |
QUALCOMM, Inc. | 9.7 | 10.8 |
Research In Motion Ltd. | 6.0 | 0.1 |
Juniper Networks, Inc. | 5.3 | 4.7 |
Polycom, Inc. | 4.6 | 1.9 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.2 | 0.2 |
Motorola, Inc. | 3.8 | 3.4 |
F5 Networks, Inc. | 2.7 | 2.1 |
Brocade Communications Systems, Inc. | 2.7 | 1.8 |
Adtran, Inc. | 2.6 | 3.2 |
| 55.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Communications Equipment | 79.8% |
|
 | Semiconductors & Semiconductor Equipment | 6.7% |
|
 | Wireless Telecommunication Services | 4.0% |
|
| Electronic Equipment | 3.2% |
|
| Internet Software | 2.1% |
|
| All Others* | 4.2% |
|
As of July 31, 2009 | |||
| Communications Equipment | 75.1% |
|
| Semiconductors & Semiconductor Equipment | 9.2% |
|
| Software | 6.2% |
|
| Internet Software | 2.8% |
|
| Wireless Telecommunication Services | 2.5% |
|
| All Others* | 4.2% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Communications Equipment Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 79.7% | |||
Communications Equipment - 79.7% | |||
Acme Packet, Inc. (a) | 26,640 | $ 275,724 | |
ADC Telecommunications, Inc. (a) | 22,700 | 120,537 | |
Adtran, Inc. | 16,383 | 347,320 | |
ADVA AG Optical Networking (a) | 7,013 | 24,128 | |
Alcatel-Lucent SA sponsored ADR (a) | 2,100 | 6,993 | |
Arris Group, Inc. (a) | 2,571 | 25,813 | |
Aruba Networks, Inc. (a) | 4,951 | 51,441 | |
Aviat Networks, Inc. (a) | 5,667 | 40,746 | |
BigBand Networks, Inc. (a) | 10,500 | 32,970 | |
Blue Coat Systems, Inc. (a) | 7,000 | 172,550 | |
Brocade Communications Systems, Inc. (a) | 51,909 | 356,615 | |
BYD Electronic International Co. Ltd. (a) | 24,000 | 20,309 | |
Ceragon Networks Ltd. (a) | 7,300 | 86,067 | |
Ciena Corp. (a) | 3,059 | 39,002 | |
Cisco Systems, Inc. (a) | 80,569 | 1,810,382 | |
CommScope, Inc. (a) | 12,600 | 342,846 | |
Comverse Technology, Inc. (a) | 3,806 | 36,195 | |
DragonWave, Inc. (a) | 8,400 | 94,110 | |
EchoStar Holding Corp. Class A (a) | 2,120 | 40,704 | |
EMCORE Corp. (a) | 4,600 | 4,370 | |
Emulex Corp. (a) | 16,000 | 179,840 | |
Extreme Networks, Inc. (a) | 15,600 | 38,532 | |
F5 Networks, Inc. (a) | 7,330 | 362,322 | |
Finisar Corp. (a) | 8,312 | 85,614 | |
Harmonic, Inc. (a) | 34,700 | 210,629 | |
Infinera Corp. (a) | 1,700 | 11,645 | |
Ixia (a) | 4,000 | 29,680 | |
JDS Uniphase Corp. (a) | 23,013 | 180,882 | |
Juniper Networks, Inc. (a) | 28,814 | 715,452 | |
Motorola, Inc. | 83,200 | 511,680 | |
Oclaro, Inc. (a) | 7,194 | 11,870 | |
Oplink Communications, Inc. (a) | 3,274 | 48,619 | |
Opnext, Inc. (a) | 15,501 | 29,297 | |
Palm, Inc. (a) | 1,700 | 17,663 | |
Polycom, Inc. (a) | 27,300 | 612,339 | |
QUALCOMM, Inc. | 33,320 | 1,305,811 | |
Research In Motion Ltd. (a) | 12,700 | 799,592 | |
Riverbed Technology, Inc. (a) | 7,779 | 174,405 | |
Sandvine Corp. (a) | 18,400 | 22,370 | |
Sandvine Corp. (U.K.) (a) | 56,400 | 68,932 | |
ShoreTel, Inc. (a) | 13,604 | 72,237 | |
Sierra Wireless, Inc. (a) | 12,100 | 133,527 | |
Sonus Networks, Inc. (a) | 15,367 | 32,424 | |
Tekelec (a) | 15,500 | 232,190 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 58,300 | 564,344 | |
Tellabs, Inc. | 46,967 | 301,998 | |
| 10,682,716 | ||
| |||
Shares | Value | ||
COMPUTERS & PERIPHERALS - 0.0% | |||
Computer Hardware - 0.0% | |||
Compal Electronics, Inc. | 28 | $ 39 | |
ELECTRICAL EQUIPMENT - 0.0% | |||
Electrical Components & Equipment - 0.0% | |||
A123 Systems, Inc. | 100 | 1,598 | |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.2% | |||
Electronic Components - 0.6% | |||
BYD Co. Ltd. (H Shares) (a) | 3,500 | 25,651 | |
Prime View International Co. Ltd. (a) | 16,000 | 29,332 | |
Universal Display Corp. (a) | 2,800 | 31,556 | |
| 86,539 | ||
Electronic Manufacturing Services - 2.6% | |||
Benchmark Electronics, Inc. (a) | 1,900 | 34,618 | |
Flextronics International Ltd. (a) | 4,000 | 25,360 | |
Foxconn International Holdings Ltd. (a) | 2,000 | 2,130 | |
Plexus Corp. | 1,000 | 34,010 | |
SMART Modular Technologies (WWH), Inc. (a) | 4,416 | 26,849 | |
Trimble Navigation Ltd. (a) | 9,719 | 222,468 | |
| 345,435 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 431,974 | ||
INTERNET SOFTWARE & SERVICES - 2.1% | |||
Internet Software & Services - 2.1% | |||
Equinix, Inc. (a) | 300 | 28,869 | |
NetEase.com, Inc. sponsored ADR (a) | 200 | 6,560 | |
Sina Corp. (a) | 900 | 32,544 | |
Tencent Holdings Ltd. | 4,100 | 76,677 | |
VeriSign, Inc. (a) | 5,800 | 132,878 | |
| 277,528 | ||
IT SERVICES - 0.1% | |||
Data Processing & Outsourced Services - 0.1% | |||
NeuStar, Inc. Class A (a) | 700 | 15,722 | |
IT Consulting & Other Services - 0.0% | |||
Yucheng Technologies Ltd. (a) | 1,200 | 4,260 | |
TOTAL IT SERVICES | 19,982 | ||
MEDIA - 0.6% | |||
Advertising - 0.3% | |||
VisionChina Media, Inc. ADR (a) | 4,700 | 40,843 | |
Cable & Satellite - 0.3% | |||
Virgin Media, Inc. | 3,050 | 43,280 | |
TOTAL MEDIA | 84,123 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.7% | |||
Semiconductor Equipment - 0.4% | |||
Tessera Technologies, Inc. (a) | 2,900 | 49,793 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - 6.3% | |||
Actel Corp. (a) | 451 | $ 4,970 | |
Altera Corp. | 1,200 | 25,584 | |
Applied Micro Circuits Corp. (a) | 2,758 | 20,216 | |
ARM Holdings PLC sponsored ADR | 1,600 | 14,512 | |
Avago Technologies Ltd. | 3,500 | 60,830 | |
Cavium Networks, Inc. (a) | 10,554 | 228,072 | |
Ceva, Inc. (a) | 2,900 | 34,481 | |
Conexant Systems, Inc. (a) | 1,280 | 4,890 | |
CSR PLC (a) | 7,686 | 54,884 | |
Exar Corp. (a) | 143 | 1,005 | |
Hittite Microwave Corp. (a) | 2,300 | 85,514 | |
Ikanos Communications, Inc. (a) | 3,985 | 8,568 | |
Infineon Technologies AG (a) | 2,376 | 12,949 | |
Lattice Semiconductor Corp. (a) | 6,700 | 17,353 | |
LSI Corp. (a) | 2,300 | 11,477 | |
Microsemi Corp. (a) | 449 | 6,708 | |
Netlogic Microsystems, Inc. (a) | 1,516 | 62,095 | |
Omnivision Technologies, Inc. (a) | 1,000 | 12,900 | |
ON Semiconductor Corp. (a) | 7,285 | 52,525 | |
Pericom Semiconductor Corp. (a) | 1,700 | 14,960 | |
Pixelplus Co. Ltd. ADR (a) | 900 | 333 | |
PLX Technology, Inc. (a) | 900 | 3,996 | |
PMC-Sierra, Inc. (a) | 3,100 | 24,645 | |
Silicon Storage Technology, Inc. (a) | 1,200 | 3,204 | |
Standard Microsystems Corp. (a) | 1,200 | 23,940 | |
TriQuint Semiconductor, Inc. (a) | 5,000 | 30,000 | |
Xilinx, Inc. | 900 | 21,222 | |
| 841,833 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 891,626 | ||
SOFTWARE - 2.0% | |||
Application Software - 1.4% | |||
Citrix Systems, Inc. (a) | 1,592 | 66,148 | |
KongZhong Corp. sponsored ADR (a) | 100 | 847 | |
NetScout Systems, Inc. (a) | 1,200 | 16,848 | |
Smith Micro Software, Inc. (a) | 3,768 | 29,202 | |
Synchronoss Technologies, Inc. (a) | 1,900 | 31,844 | |
Taleo Corp. Class A (a) | 100 | 2,031 | |
Ulticom, Inc. | 3,441 | 33,034 | |
| 179,954 | ||
Home Entertainment Software - 0.1% | |||
Giant Interactive Group, Inc. ADR | 2,000 | 14,640 | |
| |||
Shares | Value | ||
Systems Software - 0.5% | |||
Allot Communications Ltd. (a) | 300 | $ 1,269 | |
Opnet Technologies, Inc. | 400 | 4,700 | |
TeleCommunication Systems, Inc. Class A (a) | 6,977 | 61,119 | |
| 67,088 | ||
TOTAL SOFTWARE | 261,682 | ||
WIRELESS TELECOMMUNICATION SERVICES - 4.0% | |||
Wireless Telecommunication Services - 4.0% | |||
American Tower Corp. Class A (a) | 1,690 | 71,741 | |
Crown Castle International Corp. (a) | 1,900 | 70,186 | |
Leap Wireless International, Inc. (a) | 300 | 3,957 | |
SBA Communications Corp. Class A (a) | 2,052 | 67,901 | |
SOFTBANK CORP. | 6,000 | 152,941 | |
Sprint Nextel Corp. (a) | 25,400 | 83,312 | |
Syniverse Holdings, Inc. (a) | 5,021 | 84,403 | |
| 534,441 | ||
TOTAL COMMON STOCKS (Cost $13,064,345) | 13,185,709 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount |
| ||
COMMUNICATIONS EQUIPMENT - 0.1% | ||||
Communications Equipment - 0.1% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 20,000 | 16,332 | ||
Money Market Funds - 1.9% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (b) | 254,704 | 254,704 | |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $13,339,049) | 13,456,745 | ||
NET OTHER ASSETS - (0.4)% | (53,030) | ||
NET ASSETS - 100% | $ 13,403,715 | ||
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. |
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 | $ 365 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 13,185,709 | $ 13,024,816 | $ 160,893 | $ - |
Convertible Bonds | 16,332 | - | 16,332 | - |
Money Market Funds | 254,704 | 254,704 | - | - |
Total Investments in Securities | $ 13,456,745 | $ 13,279,520 | $ 177,225 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 81.9% |
Canada | 8.4% |
Sweden | 4.2% |
Japan | 1.2% |
China | 1.1% |
Others (individually less than 1%) | 3.2% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $601,215 of which $207,917 and $393,298 will expire on July 31, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $1,583,417 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $13,084,345) | $ 13,202,041 |
|
Fidelity Central Funds (cost $254,704) | 254,704 |
|
Total Investments (cost $13,339,049) |
| $ 13,456,745 |
Receivable for investments sold | 423,399 | |
Receivable for fund shares sold | 59,945 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 38 | |
Prepaid expenses | 45 | |
Receivable from investment adviser for expense reductions | 2,034 | |
Other receivables | 927 | |
Total assets | 13,943,145 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 428,729 | |
Payable for fund shares redeemed | 69,599 | |
Accrued management fee | 6,825 | |
Distribution fees payable | 6,334 | |
Other affiliated payables | 4,323 | |
Other payables and accrued expenses | 23,620 | |
Total liabilities | 539,430 | |
|
|
|
Net Assets | $ 13,403,715 | |
Net Assets consist of: |
| |
Paid in capital | $ 14,833,679 | |
Accumulated net investment loss | (97,741) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,449,919) | |
Net unrealized appreciation (depreciation) on investments | 117,696 | |
Net Assets | $ 13,403,715 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.58) | $ 8.04 | |
Class T: | $ 7.41 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.41) | $ 7.68 | |
Class B: | $ 7.08 | |
|
|
|
Class C: | $ 7.07 | |
|
|
|
Institutional Class: | $ 7.76 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 12,853 |
Interest |
| 30 |
Income from Fidelity Central Funds |
| 365 |
Total income |
| 13,248 |
|
|
|
Expenses | ||
Management fee | $ 37,532 | |
Transfer agent fees | 23,736 | |
Distribution fees | 35,552 | |
Accounting fees and expenses | 2,611 | |
Custodian fees and expenses | 4,953 | |
Independent trustees' compensation | 37 | |
Registration fees | 43,154 | |
Audit | 22,665 | |
Legal | 41 | |
Miscellaneous | 82 | |
Total expenses before reductions | 170,363 | |
Expense reductions | (59,374) | 110,989 |
Net investment income (loss) | (97,741) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 879,797 | |
Foreign currency transactions | (394) | |
Total net realized gain (loss) |
| 879,403 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (407,137) | |
Assets and liabilities in foreign currencies | 424 | |
Total change in net unrealized appreciation (depreciation) |
| (406,713) |
Net gain (loss) | 472,690 | |
Net increase (decrease) in net assets resulting from operations | $ 374,949 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (97,741) | $ (3,392) |
Net realized gain (loss) | 879,403 | (2,045,448) |
Change in net unrealized appreciation (depreciation) | (406,713) | 1,654,393 |
Net increase (decrease) in net assets resulting from operations | 374,949 | (394,447) |
Share transactions - net increase (decrease) | 2,126,055 | 4,154,179 |
Redemption fees | 960 | 239 |
Total increase (decrease) in net assets | 2,501,964 | 3,759,971 |
|
|
|
Net Assets | ||
Beginning of period | 10,901,751 | 7,141,780 |
End of period (including accumulated net investment loss of $97,741 and $0, respectively) | $ 13,403,715 | $ 10,901,751 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
[Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 | $ 6.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .02 H | (.08) | (.09) | (.09) | (.07) |
Net realized and unrealized gain (loss) | .35 | (.56) | (1.45) | 2.29 | (.32) | 1.24 |
Total from investment operations | .30 | (.54) | (1.53) | 2.20 | (.41) | 1.17 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.58 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 |
Total Return B,C,D | 4.12% | (6.91)% | (16.43)% | 30.18% | (5.32)% | 17.92% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 2.27% A | 3.15% | 2.25% | 2.24% | 2.13% | 2.32% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.38% A | 1.40% | 1.39% | 1.40% | 1.32% | 1.28% |
Net investment income (loss) | (1.18)% A | .26% H | (.91)% | (1.00)% | (1.05)% | (.92)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,968 | $ 3,476 | $ 2,459 | $ 2,825 | $ 3,145 | $ 2,406 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 (.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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 | $ 6.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | - H,J | (.10) | (.11) | (.11) | (.08) |
Net realized and unrealized gain (loss) | .33 | (.55) | (1.42) | 2.26 | (.31) | 1.21 |
Total from investment operations | .28 | (.55) | (1.52) | 2.15 | (.42) | 1.13 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.41 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 |
Total Return B,C,D | 3.93% | (7.16)% | (16.59)% | 29.90% | (5.52)% | 17.44% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 2.57% A | 3.52% | 2.62% | 2.57% | 2.51% | 2.78% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.71% |
Expenses net of all reductions | 1.63% A | 1.65% | 1.65% | 1.64% | 1.57% | 1.54% |
Net investment income (loss) | (1.43)% A | .01% H | (1.16)% | (1.25)% | (1.30)% | (1.18)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,916 | $ 2,396 | $ 2,138 | $ 3,271 | $ 2,932 | $ 3,034 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.13)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | (.03) H | (.14) | (.14) | (.14) | (.12) |
Net realized and unrealized gain (loss) | .32 | (.53) | (1.36) | 2.18 | (.31) | 1.20 |
Total from investment operations | .25 | (.56) | (1.50) | 2.04 | (.45) | 1.08 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.08 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 |
Total Return B,C,D | 3.66% | (7.58)% | (16.94)% | 29.18% | (6.05)% | 16.98% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 3.03% A | 3.98% | 3.03% | 3.00% | 2.94% | 3.14% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.20% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.15% | 2.07% | 2.04% |
Net investment income (loss) | (1.93)% A | (.49)% H | (1.67)% | (1.75)% | (1.80)% | (1.68)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,377 | $ 1,281 | $ 1,219 | $ 2,225 | $ 2,406 | $ 2,864 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 | $ 6.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | (.03) H | (.14) | (.14) | (.15) | (.12) |
Net realized and unrealized gain (loss) | .32 | (.53) | (1.37) | 2.18 | (.30) | 1.20 |
Total from investment operations | .25 | (.56) | (1.51) | 2.04 | (.45) | 1.08 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital E,J | - | - | - | - | - | - |
Net asset value, end of period | $ 7.07 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 |
Total Return B,C,D | 3.67% | (7.59)% | (17.06)% | 29.18% | (6.05)% | 16.98% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 3.01% A | 3.63% | 3.02% | 2.98% | 2.86% | 3.07% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.15% | 2.07% | 2.02% |
Net investment income (loss) | (1.93)% A | (.49)% H | (1.67)% | (1.75)% | (1.81)% | (1.66)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 | $ 1,768 | $ 1,846 |
Portfolio turnover rate G | 118% A | 97% | 63% | 58% | 174% | 250% |
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 $.06 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.63)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 | $ 6.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | .03 G | (.06) | (.07) | (.07) | (.05) |
Net realized and unrealized gain (loss) | .35 | (.56) | (1.47) | 2.33 | (.33) | 1.24 |
Total from investment operations | .31 | (.53) | (1.53) | 2.26 | (.40) | 1.19 |
Distributions from net realized gain | - | - | (.14) | - | - | - |
Redemption fees added to paid in capital D,I | - | - | - | - | - | - |
Net asset value, end of period | $ 7.76 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 |
Total Return B,C | 4.16% | (6.64)% | (16.16)% | 30.58% | (5.13)% | 18.03% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | 1.89% A | 2.44% | 1.94% | 1.87% | 1.70% | 1.85% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.18% |
Expenses net of all reductions | 1.13% A | 1.15% | 1.14% | 1.15% | 1.07% | 1.01% |
Net investment income (loss) | (.93)% A | .51% G | (.66)% | (.75)% | (.80)% | (.65)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,114 | $ 957 | $ 229 | $ 324 | $ 379 | $ 319 |
Portfolio turnover rate F | 118% A | 97% | 63% | 58% | 174% | 250% |
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 (.63)%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,310,340 |
Gross unrealized depreciation | (1,287,209) |
Net unrealized appreciation (depreciation) | $ 23,131 |
|
|
Tax cost | $ 13,433,614 |
Communications Equipment
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $9,482,140 and $7,487,917, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 5,185 | $ 39 |
Class T | .25% | .25% | 7,146 | - |
Class B | .75% | .25% | 7,772 | 5,829 |
Class C | .75% | .25% | 15,449 | 3,550 |
|
|
| $ 35,552 | $ 9,418 |
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 |
Class A | $ 2,928 |
Class T | 1,573 |
Class B* | 2,136 |
Class C* | 1,558 |
| $ 8,195 |
* 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 |
Class A | $ 7,452 | .36 |
Class T | 5,844 | .41 |
Class B | 2,799 | .36 |
Class C | 5,490 | .36 |
Institutional Class | 2,151 | .24 |
| $ 23,736 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
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 $251 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $25 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 | Reimbursement |
Class A | 1.40% | $ 18,087 |
Class T | 1.65% | 13,063 |
Class B | 2.15% | 6,830 |
Class C | 2.15% | 13,322 |
Institutional Class | 1.15% | 6,542 |
|
| $ 57,844 |
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 $1,530 for the period.
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 218,495 | 355,106 | $ 1,706,462 | $ 2,309,221 |
Shares redeemed | (172,247) | (192,148) | (1,349,713) | (977,112) |
Net increase (decrease) | 46,248 | 162,958 | $ 356,749 | $ 1,332,109 |
Class T |
|
|
|
|
Shares sold | 109,709 | 141,676 | $ 842,864 | $ 842,215 |
Shares redeemed | (52,211) | (84,049) | (402,467) | (471,168) |
Net increase (decrease) | 57,498 | 57,627 | $ 440,397 | $ 371,047 |
Class B |
|
|
|
|
Shares sold | 65,034 | 79,696 | $ 466,390 | $ 489,378 |
Shares redeemed | (58,074) | (57,101) | (426,721) | (282,381) |
Net increase (decrease) | 6,960 | 22,595 | $ 39,669 | $ 206,997 |
Class C |
|
|
|
|
Shares sold | 133,680 | 334,255 | $ 959,829 | $ 2,000,139 |
Shares redeemed | (114,575) | (73,743) | (807,981) | (434,705) |
Net increase (decrease) | 19,105 | 260,512 | $ 151,848 | $ 1,565,434 |
Communications Equipment
8. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Institutional Class |
|
|
|
|
Shares sold | 195,077 | 116,053 | $ 1,546,508 | $ 776,070 |
Shares redeemed | (51,156) | (16,263) | (409,116) | (97,478) |
Net increase (decrease) | 143,921 | 99,790 | $ 1,137,392 | $ 678,592 |
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
Advisor Consumer Discretionary Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,129.60 | $ 7.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.80 | $ 8.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.30 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.20 | $ 11.52 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,131.60 | $ 6.18 |
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).
Consumer Discretionary
Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Target Corp. | 6.1 | 6.6 |
Lowe's Companies, Inc. | 5.7 | 7.6 |
The Walt Disney Co. | 5.5 | 5.1 |
McDonald's Corp. | 5.4 | 5.6 |
Amazon.com, Inc. | 3.8 | 2.6 |
Staples, Inc. | 2.6 | 2.9 |
Advance Auto Parts, Inc. | 2.4 | 2.6 |
Ford Motor Co. | 2.3 | 1.7 |
Wyndham Worldwide Corp. | 2.1 | 1.3 |
Johnson Controls, Inc. | 2.0 | 2.1 |
| 37.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Media | 21.1% |
|
| Specialty Retail | 21.1% |
|
| Hotels, | 20.4% |
|
| Multiline Retail | 7.9% |
|
| Internet & Catalog Retail | 4.7% |
|
| All Others* | 24.8% |
|
As of July 31, 2009 | |||
| Specialty Retail | 25.4% |
|
| Media | 19.9% |
|
| Hotels, | 18.8% |
|
| Multiline Retail | 6.6% |
|
| Textiles, Apparel & Luxury Goods | 5.3% |
|
| All Others* | 24.0% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Consumer Discretionary Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
AUTO COMPONENTS - 2.9% | |||
Auto Parts & Equipment - 2.9% | |||
BorgWarner, Inc. | 9,400 | $ 329,846 | |
Gentex Corp. | 2,100 | 40,257 | |
Johnson Controls, Inc. | 28,600 | 795,938 | |
| 1,166,041 | ||
AUTOMOBILES - 3.1% | |||
Automobile Manufacturers - 2.3% | |||
Ford Motor Co. (a) | 84,800 | 919,232 | |
Motorcycle Manufacturers - 0.8% | |||
Harley-Davidson, Inc. | 13,400 | 304,716 | |
TOTAL AUTOMOBILES | 1,223,948 | ||
CONSUMER FINANCE - 0.3% | |||
Consumer Finance - 0.3% | |||
Capital One Financial Corp. | 2,800 | 103,208 | |
DISTRIBUTORS - 0.8% | |||
Distributors - 0.8% | |||
Li & Fung Ltd. | 72,000 | 330,141 | |
DIVERSIFIED CONSUMER SERVICES - 3.9% | |||
Education Services - 2.3% | |||
Apollo Group, Inc. Class A (non-vtg.) (a) | 4,500 | 272,655 | |
DeVry, Inc. | 4,700 | 286,982 | |
Navitas Ltd. | 16,755 | 66,374 | |
Strayer Education, Inc. | 1,400 | 290,892 | |
| 916,903 | ||
Specialized Consumer Services - 1.6% | |||
Coinstar, Inc. (a) | 4,500 | 116,235 | |
Sotheby's Class A (ltd. vtg.) (c) | 15,488 | 359,941 | |
Steiner Leisure Ltd. (a) | 4,000 | 159,360 | |
| 635,536 | ||
TOTAL DIVERSIFIED CONSUMER SERVICES | 1,552,439 | ||
FOOD & STAPLES RETAILING - 1.6% | |||
Food Retail - 0.5% | |||
Susser Holdings Corp. (a) | 22,405 | 197,612 | |
Hypermarkets & Super Centers - 1.1% | |||
BJ's Wholesale Club, Inc. (a) | 1,900 | 64,201 | |
Costco Wholesale Corp. | 6,900 | 396,267 | |
| 460,468 | ||
TOTAL FOOD & STAPLES RETAILING | 658,080 | ||
HOTELS, RESTAURANTS & LEISURE - 20.4% | |||
Casinos & Gaming - 3.7% | |||
International Game Technology | 16,200 | 297,108 | |
Las Vegas Sands Corp. unit | 1,550 | 411,262 | |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a)(c) | 27,900 | 99,603 | |
| |||
Shares | Value | ||
MGM Mirage, Inc. (a)(c) | 7,500 | $ 82,950 | |
Sands China Ltd. | 43,600 | 61,660 | |
WMS Industries, Inc. (a) | 14,100 | 522,828 | |
| 1,475,411 | ||
Hotels, Resorts & Cruise Lines - 5.5% | |||
Carnival Corp. unit | 18,600 | 619,938 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 3,200 | 98,432 | |
Royal Caribbean Cruises Ltd. (a) | 4,800 | 125,232 | |
Starwood Hotels & Resorts Worldwide, Inc. | 16,300 | 543,116 | |
Wyndham Worldwide Corp. | 39,300 | 824,907 | |
| 2,211,625 | ||
Leisure Facilities - 0.4% | |||
Vail Resorts, Inc. (a)(c) | 5,000 | 168,500 | |
Restaurants - 10.8% | |||
BJ's Restaurants, Inc. (a) | 9,700 | 205,058 | |
Darden Restaurants, Inc. | 15,600 | 576,576 | |
Jack in the Box, Inc. (a) | 6,800 | 132,668 | |
McDonald's Corp. | 34,600 | 2,160,078 | |
P.F. Chang's China Bistro, Inc. (a)(c) | 4,400 | 169,840 | |
Sonic Corp. (a) | 15,700 | 132,351 | |
Starbucks Corp. (a) | 32,100 | 699,459 | |
Texas Roadhouse, Inc. Class A (a) | 18,700 | 217,481 | |
| 4,293,511 | ||
TOTAL HOTELS, RESTAURANTS & LEISURE | 8,149,047 | ||
HOUSEHOLD DURABLES - 3.9% | |||
Home Furnishings - 1.1% | |||
Mohawk Industries, Inc. (a) | 5,400 | 223,614 | |
Tempur-Pedic International, Inc. (a) | 8,400 | 209,076 | |
| 432,690 | ||
Homebuilding - 1.9% | |||
Lennar Corp. Class A | 7,930 | 121,805 | |
M.D.C. Holdings, Inc. | 1,500 | 50,400 | |
Meritage Homes Corp. (a) | 5,100 | 114,189 | |
NVR, Inc. (a) | 100 | 68,414 | |
Pulte Homes, Inc. | 27,607 | 290,426 | |
Toll Brothers, Inc. (a) | 7,000 | 129,290 | |
| 774,524 | ||
Household Appliances - 0.9% | |||
Black & Decker Corp. | 800 | 51,728 | |
Whirlpool Corp. | 3,800 | 285,684 | |
| 337,412 | ||
TOTAL HOUSEHOLD DURABLES | 1,544,626 | ||
INTERNET & CATALOG RETAIL - 4.7% | |||
Internet Retail - 4.7% | |||
Amazon.com, Inc. (a) | 12,200 | 1,530,002 | |
Common Stocks - continued | |||
Shares | Value | ||
INTERNET & CATALOG RETAIL - CONTINUED | |||
Internet Retail - continued | |||
Blue Nile, Inc. (a) | 2,105 | $ 108,513 | |
Expedia, Inc. (a) | 10,300 | 220,523 | |
| 1,859,038 | ||
INTERNET SOFTWARE & SERVICES - 2.4% | |||
Internet Software & Services - 2.4% | |||
Baidu.com, Inc. sponsored ADR (a) | 200 | 82,342 | |
Google, Inc. Class A (a) | 1,200 | 635,304 | |
GREE, Inc. | 1,300 | 75,751 | |
NetEase.com, Inc. sponsored ADR (a) | 1,700 | 55,760 | |
Tencent Holdings Ltd. | 4,900 | 91,639 | |
| 940,796 | ||
LEISURE EQUIPMENT & PRODUCTS - 0.4% | |||
Leisure Products - 0.4% | |||
Polaris Industries, Inc. (c) | 4,000 | 176,840 | |
MACHINERY - 0.5% | |||
Industrial Machinery - 0.5% | |||
The Stanley Works | 3,600 | 184,500 | |
MEDIA - 21.1% | |||
Advertising - 2.1% | |||
Interpublic Group of Companies, Inc. (a) | 60,774 | 392,600 | |
Lamar Advertising Co. Class A (a) | 7,496 | 214,386 | |
National CineMedia, Inc. | 14,300 | 214,214 | |
| 821,200 | ||
Broadcasting - 0.2% | |||
Discovery Communications, Inc. Class C (a) | 3,800 | 99,788 | |
Cable & Satellite - 7.4% | |||
Cablevision Systems Corp. - NY Group Class A | 14,500 | 371,780 | |
Comcast Corp. Class A | 44,050 | 697,312 | |
DIRECTV (a) | 21,802 | 661,691 | |
DISH Network Corp. Class A | 9,700 | 177,122 | |
Liberty Media Corp. Starz Series A (a) | 1,300 | 60,970 | |
Time Warner Cable, Inc. | 16,797 | 732,181 | |
Virgin Media, Inc. (c) | 16,700 | 236,973 | |
| 2,938,029 | ||
Movies & Entertainment - 10.2% | |||
DreamWorks Animation SKG, Inc. Class A (a) | 3,000 | 116,820 | |
News Corp.: | |||
Class A | 21,800 | 274,898 | |
Class B (c) | 15,000 | 220,200 | |
The Walt Disney Co. | 74,200 | 2,192,610 | |
Time Warner, Inc. | 19,885 | 545,843 | |
Viacom, Inc. Class B (non-vtg.) (a) | 25,200 | 734,328 | |
| 4,084,699 | ||
| |||
Shares | Value | ||
Publishing - 1.2% | |||
McGraw-Hill Companies, Inc. | 13,400 | $ 475,030 | |
TOTAL MEDIA | 8,418,746 | ||
MULTILINE RETAIL - 7.9% | |||
Department Stores - 1.8% | |||
Kohl's Corp. (a) | 8,600 | 433,182 | |
Nordstrom, Inc. (c) | 8,100 | 279,774 | |
| 712,956 | ||
General Merchandise Stores - 6.1% | |||
Target Corp. | 47,570 | 2,438,912 | |
TOTAL MULTILINE RETAIL | 3,151,868 | ||
PROFESSIONAL SERVICES - 0.3% | |||
Human Resource & Employment Services - 0.3% | |||
Monster Worldwide, Inc. (a) | 8,300 | 129,397 | |
SPECIALTY RETAIL - 21.1% | |||
Apparel Retail - 3.8% | |||
Citi Trends, Inc. (a) | 10,855 | 337,916 | |
Gymboree Corp. (a) | 8,300 | 323,783 | |
Ross Stores, Inc. | 8,700 | 399,591 | |
Urban Outfitters, Inc. (a) | 10,393 | 328,107 | |
Zumiez, Inc. (a)(c) | 10,500 | 133,665 | |
| 1,523,062 | ||
Automotive Retail - 3.1% | |||
Advance Auto Parts, Inc. | 24,100 | 950,745 | |
O'Reilly Automotive, Inc. (a) | 7,400 | 279,720 | |
| 1,230,465 | ||
Computer & Electronics Retail - 1.4% | |||
Best Buy Co., Inc. | 4,100 | 150,265 | |
Conn's, Inc. (a)(c) | 11,086 | 62,303 | |
hhgregg, Inc. (a)(c) | 9,900 | 210,870 | |
RadioShack Corp. | 6,200 | 121,024 | |
| 544,462 | ||
Home Improvement Retail - 7.6% | |||
Home Depot, Inc. | 17,355 | 486,114 | |
Lowe's Companies, Inc. | 104,700 | 2,266,755 | |
Lumber Liquidators Holdings, Inc. (a) | 12,725 | 301,328 | |
| 3,054,197 | ||
Homefurnishing Retail - 1.1% | |||
Bed Bath & Beyond, Inc. (a) | 7,900 | 305,730 | |
Williams-Sonoma, Inc. | 7,400 | 140,452 | |
| 446,182 | ||
Specialty Stores - 4.1% | |||
Cabela's, Inc. Class A (a)(c) | 9,900 | 159,588 | |
OfficeMax, Inc. (a) | 12,300 | 159,531 | |
Signet Jewelers Ltd. (a) | 4,600 | 125,856 | |
Staples, Inc. | 44,338 | 1,040,169 | |
Common Stocks - continued | |||
Shares | Value | ||
SPECIALTY RETAIL - CONTINUED | |||
Specialty Stores - continued | |||
Vitamin Shoppe, Inc. | 5,200 | $ 109,200 | |
West Marine, Inc. (a) | 4,901 | 41,119 | |
| 1,635,463 | ||
TOTAL SPECIALTY RETAIL | 8,433,831 | ||
TEXTILES, APPAREL & LUXURY GOODS - 3.4% | |||
Apparel, Accessories & Luxury Goods - 1.3% | |||
G-III Apparel Group Ltd. (a) | 8,968 | 156,133 | |
Phillips-Van Heusen Corp. | 3,900 | 153,231 | |
VF Corp. | 2,900 | 208,887 | |
| 518,251 | ||
Footwear - 2.1% | |||
Deckers Outdoor Corp. (a) | 2,100 | 206,157 | |
Iconix Brand Group, Inc. (a) | 9,700 | 122,414 | |
NIKE, Inc. Class B | 7,950 | 506,813 | |
| 835,384 | ||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 1,353,635 | ||
TOTAL COMMON STOCKS (Cost $38,028,891) | 39,376,181 | ||
Money Market Funds - 7.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 599,533 | $ 599,533 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 2,238,050 | 2,238,050 | |
TOTAL MONEY MARKET FUNDS (Cost $2,837,583) | 2,837,583 | ||
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $40,866,474) | 42,213,764 | ||
NET OTHER ASSETS - (5.8)% | (2,302,808) | ||
NET ASSETS - 100% | $ 39,910,956 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 547 |
Fidelity Securities Lending Cash Central Fund | 3,884 |
Total | $ 4,431 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 39,376,181 | $ 38,964,919 | $ 411,262 | $ - |
Money Market Funds | 2,837,583 | 2,837,583 | - | - |
Total Investments in Securities | $ 42,213,764 | $ 41,802,502 | $ 411,262 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $5,178,091 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $3,918,129 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Advisor Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $2,150,448) - See accompanying schedule: Unaffiliated issuers (cost $38,028,891) | $ 39,376,181 |
|
Fidelity Central Funds (cost $2,837,583) | 2,837,583 |
|
Total Investments (cost $40,866,474) |
| $ 42,213,764 |
Receivable for investments sold | 621,799 | |
Receivable for fund shares sold | 52,974 | |
Dividends receivable | 17,222 | |
Distributions receivable from Fidelity Central Funds | 1,271 | |
Prepaid expenses | 131 | |
Other receivables | 1,118 | |
Total assets | 42,908,279 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 658,879 | |
Payable for fund shares redeemed | 26,895 | |
Accrued management fee | 21,983 | |
Distribution fees payable | 15,014 | |
Other affiliated payables | 11,922 | |
Other payables and accrued expenses | 24,580 | |
Collateral on securities loaned, at value | 2,238,050 | |
Total liabilities | 2,997,323 | |
|
|
|
Net Assets | $ 39,910,956 | |
Net Assets consist of: |
| |
Paid in capital | $ 46,286,903 | |
Accumulated net investment loss | (42,186) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,681,076) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,347,315 | |
Net Assets | $ 39,910,956 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 11.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.59) | $ 12.30 | |
Class T: | $ 11.22 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.22) | $ 11.63 | |
Class B: | $ 10.43 | |
|
|
|
Class C: | $ 10.44 | |
|
|
|
Institutional Class: | $ 12.05 | |
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.
Semiannual Report
Fund Name
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 251,447 |
Interest |
| 3 |
Income from Fidelity Central Funds |
| 4,431 |
Total income |
| 255,881 |
|
|
|
Expenses | ||
Management fee | $ 106,007 | |
Transfer agent fees | 61,531 | |
Distribution fees | 82,181 | |
Accounting and security lending fees | 7,574 | |
Custodian fees and expenses | 6,788 | |
Independent trustees' compensation | 113 | |
Registration fees | 33,228 | |
Audit | 22,448 | |
Legal | 123 | |
Miscellaneous | 283 | |
Total expenses before reductions | 320,276 | |
Expense reductions | (23,083) | 297,193 |
Net investment income (loss) | (41,312) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,747,248 | |
Foreign currency transactions | 200 | |
Total net realized gain (loss) |
| 1,747,448 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,572,388 | |
Assets and liabilities in foreign currencies | 26 | |
Total change in net unrealized appreciation (depreciation) |
| 2,572,414 |
Net gain (loss) | 4,319,862 | |
Net increase (decrease) in net assets resulting from operations | $ 4,278,550 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (41,312) | $ 41,542 |
Net realized gain (loss) | 1,747,448 | (6,306,395) |
Change in net unrealized appreciation (depreciation) | 2,572,414 | 3,085,863 |
Net increase (decrease) in net assets resulting from operations | 4,278,550 | (3,178,990) |
Distributions to shareholders from net investment income | (6,476) | (36,930) |
Share transactions - net increase (decrease) | 3,396,208 | 5,542,508 |
Redemption fees | 34 | 4,036 |
Total increase (decrease) in net assets | 7,668,316 | 2,330,624 |
|
|
|
Net Assets | ||
Beginning of period | 32,242,640 | 29,912,016 |
End of period (including accumulated net investment loss of $42,186 and undistributed net investment income of $5,602, respectively) | $ 39,910,956 | $ 32,242,640 |
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 | $ 14.51 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | .04 | .02 | .02 H | (.04) | (.07) |
Net realized and unrealized gain (loss) | 1.33 | (1.16) | (3.09) | 1.83 | (.07) | 2.71 |
Total from investment operations | 1.33 | (1.12) | (3.07) | 1.85 | (.11) | 2.64 |
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 | $ 11.59 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 |
Total Return B, C, D | 12.96% | (9.81)% | (21.24)% | 11.67% | (.69)% | 18.85% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.53% A | 1.62% | 1.40% | 1.42% | 1.42% | 1.47% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.44% |
Expenses net of all reductions | 1.38% A | 1.40% | 1.40% | 1.39% | 1.39% | 1.42% |
Net investment income (loss) | (.03)% A | .42% | .15% | .11% H | (.23)% | (.45)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 15,838 | $ 13,010 | $ 11,899 | $ 19,708 | $ 16,935 | $ 17,887 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 | $ 14.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | .01 | (.01) | (.02) H | (.07) | (.11) |
Net realized and unrealized gain (loss) | 1.30 | (1.12) | (3.00) | 1.79 | (.07) | 2.66 |
Total from investment operations | 1.28 | (1.11) | (3.01) | 1.77 | (.14) | 2.55 |
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 | $ 11.22 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 |
Total Return B, C, D | 12.88% | (10.04)% | (21.41)% | 11.43% | (.89)% | 18.52% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.81% A | 1.89% | 1.64% | 1.69% | 1.69% | 1.75% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.64% | 1.65% | 1.65% | 1.69% |
Expenses net of all reductions | 1.64% A | 1.65% | 1.62% | 1.61% | 1.62% | 1.67% |
Net investment income (loss) | (.29)% A | .17% | (.08)% | (.10)% H | (.46)% | (.70)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,189 | $ 6,738 | $ 9,095 | $ 14,787 | $ 14,267 | $ 16,782 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 | $ 13.75 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.03) | (.07) | (.10) H | (.15) | (.17) |
Net realized and unrealized gain (loss) | 1.21 | (1.06) | (2.81) | 1.70 | (.07) | 2.55 |
Total from investment operations | 1.17 | (1.09) | (2.88) | 1.60 | (.22) | 2.38 |
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 | $ 10.43 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 |
Total Return B, C, D | 12.63% | (10.53)% | (21.80)% | 10.82% | (1.45)% | 17.97% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.30% A | 2.38% | 2.14% | 2.20% | 2.19% | 2.24% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.14% | 2.15% | 2.15% | 2.19% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.15% | 2.14% | 2.16% |
Net investment income (loss) | (.79)% A | (.33)% | (.60)% | (.64)% H | (.98)% | (1.20)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,411 | $ 3,550 | $ 5,090 | $ 11,081 | $ 14,088 | $ 18,862 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 | $ 13.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.03) | (.07) | (.10) H | (.15) | (.17) |
Net realized and unrealized gain (loss) | 1.21 | (1.07) | (2.81) | 1.71 | (.07) | 2.55 |
Total from investment operations | 1.17 | (1.10) | (2.88) | 1.61 | (.22) | 2.38 |
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 | $ 10.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 |
Total Return B, C, D | 12.62% | (10.61)% | (21.77)% | 10.88% | (1.45)% | 17.94% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.22% A | 2.38% | 2.15% | 2.16% | 2.12% | 2.17% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.12% | 2.17% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.15% | 2.12% | 2.14% |
Net investment income (loss) | (.79)% A | (.33)% | (.60)% | (.64)% H | (.95)% | (1.18)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 6,439 | $ 2,955 | $ 3,430 | $ 8,051 | $ 7,160 | $ 8,505 |
Portfolio turnover rate G | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Consumer Discretionary
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 | $ 14.81 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .06 | .06 | .06 G | - I | (.03) |
Net realized and unrealized gain (loss) | 1.39 | (1.20) | (3.22) | 1.89 | (.07) | 2.76 |
Total from investment operations | 1.40 | (1.14) | (3.16) | 1.95 | (.07) | 2.73 |
Distributions from net investment income | (.01) | (.04) | - | (.06) | - | - |
Distributions from net realized gain | - | - | (1.41) | (2.30) | (.12) | (.53) |
Total distributions | (.01) | (.04) | (1.41) | (2.36) | (.12) | (.53) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 12.05 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 |
Total Return B, C | 13.16% | (9.59)% | (21.09)% | 12.04% | (.44)% | 19.08% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.17% A | 1.15% | 1.14% | 1.15% | 1.18% | 1.26% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.14% | 1.15% | 1.15% | 1.20% |
Expenses net of all reductions | 1.13% A | 1.15% | 1.14% | 1.14% | 1.14% | 1.17% |
Net investment income (loss) | .22% A | .67% | .40% | .36% G | .02% | (.21)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,033 | $ 5,990 | $ 398 | $ 1,385 | $ 1,144 | $ 1,371 |
Portfolio turnover rate F | 124% A | 99% | 63% | 164% | 81% | 66% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Consumer Discretionary
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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 deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 4,075,559 |
|
Gross unrealized depreciation | (3,038,348) |
|
Net unrealized appreciation (depreciation) | $ 1,037,211 |
|
|
|
|
Tax cost | $ 41,176,553 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $26,143,749 and $22,890,760, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 18,889 | $ - |
Class T | .25% | .25% | 18,156 | - |
Class B | .75% | .25% | 18,328 | 13,765 |
Class C | .75% | .25% | 26,808 | 3,633 |
|
|
| $ 82,181 | $ 17,398 |
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 |
Class A | $ 4,495 |
Class T | 780 |
Class B* | 2,669 |
Class C* | 235 |
| $ 8,179 |
* 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 |
Class A | $ 26,127 | .35 |
Class T | 13,219 | .36 |
Class B | 6,428 | .35 |
Class C | 8,165 | .31 |
Institutional Class | 7,592 | .23 |
| $ 61,531 |
|
* Annualized
Consumer Discretionary
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $581 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $71 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $3,884.
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 | Reimbursement |
Class A | 1.40% | $ 9,971 |
Class T | 1.65% | 5,617 |
Class B | 2.15% | 2,652 |
Class C | 2.15% | 1,727 |
Institutional Class | 1.15% | 634 |
|
| $ 20,601 |
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 $2,482 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ - | $ 24,249 |
Class T | - | 11,523 |
Institutional Class | 6,476 | 1,158 |
Total | $ 6,476 | $ 36,930 |
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 | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 241,161 | 816,977 | $ 2,734,298 | $ 7,713,175 |
Reinvestment of distributions | - | 2,650 | - | 22,145 |
Shares redeemed | (143,448) | (593,853) | (1,640,927) | (5,358,348) |
Net increase (decrease) | 97,713 | 225,774 | $ 1,093,371 | $ 2,376,972 |
Class T |
|
|
|
|
Shares sold | 29,397 | 78,811 | $ 320,970 | $ 695,608 |
Reinvestment of distributions | - | 1,356 | - | 11,014 |
Shares redeemed | (66,582) | (223,538) | (736,980) | (1,973,930) |
Net increase (decrease) | (37,185) | (143,371) | $ (416,010) | $ (1,267,308) |
Class B |
|
|
|
|
Shares sold | 20,408 | 72,993 | $ 206,034 | $ 620,027 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (76,644) | (181,364) | (783,193) | (1,535,455) |
Net increase (decrease) | (56,236) | (108,371) | $ (577,159) | $ (915,428) |
Class C |
|
|
|
|
Shares sold | 331,567 | 90,426 | $ 3,340,053 | $ 763,994 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (33,594) | (102,729) | (336,022) | (841,041) |
Net increase (decrease) | 297,973 | (12,303) | $ 3,004,031 | $ (77,047) |
Institutional Class |
|
|
|
|
Shares sold | 100,845 | 581,111 | $ 1,182,890 | $ 5,891,294 |
Reinvestment of distributions | 555 | 104 | 6,322 | 903 |
Shares redeemed | (79,651) | (52,903) | (897,237) | (466,878) |
Net increase (decrease) | 21,749 | 528,312 | $ 291,975 | $ 5,425,319 |
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.
Consumer Discretionary
Advisor Electronics Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,053.90 | $ 7.25 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.40 | $ 8.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,050.10 | $ 11.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,050.20 | $ 11.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,055.30 | $ 5.96 |
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).
Electronics
Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Intel Corp. | 23.6 | 23.5 |
Texas Instruments, Inc. | 6.5 | 9.3 |
Applied Materials, Inc. | 5.5 | 6.0 |
Micron Technology, Inc. | 4.6 | 3.1 |
Marvell Technology Group Ltd. | 4.5 | 3.4 |
Fairchild Semiconductor International, Inc. | 3.0 | 1.9 |
Altera Corp. | 2.9 | 0.2 |
Xilinx, Inc. | 2.7 | 1.5 |
NVIDIA Corp. | 2.6 | 1.9 |
Amkor Technology, Inc. | 2.3 | 1.7 |
| 58.2 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Semiconductors & Semiconductor Equipment | 88.4% |
|
| Electronic Equipment & Components | 3.5% |
|
| Computers & Peripherals | 2.6% |
|
| Communications Equipment | 2.2% |
|
| Electrical Equipment | 0.5% |
|
| All Others* | 2.8% |
|
As of July 31, 2009 | |||
| Semiconductors & Semiconductor Equipment | 85.3% |
|
| Electronic Equipment & Components | 3.8% |
|
| Computers & Peripherals | 3.2% |
|
| Communications Equipment | 1.8% |
|
| Electrical Equipment | 0.4% |
|
| All Others* | 5.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Electronics Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 2.2% | |||
Communications Equipment - 2.2% | |||
QUALCOMM, Inc. | 8,976 | $ 351,769 | |
COMPUTERS & PERIPHERALS - 2.6% | |||
Computer Hardware - 0.5% | |||
Dell, Inc. (a) | 3,600 | 46,440 | |
Hewlett-Packard Co. | 725 | 34,126 | |
| 80,566 | ||
Computer Storage & Peripherals - 2.1% | |||
SanDisk Corp. (a) | 4,000 | 101,680 | |
Seagate Technology | 9,100 | 152,243 | |
Western Digital Corp. (a) | 2,000 | 75,980 | |
| 329,903 | ||
TOTAL COMPUTERS & PERIPHERALS | 410,469 | ||
ELECTRICAL EQUIPMENT - 0.4% | |||
Electrical Components & Equipment - 0.4% | |||
Motech Industries, Inc. | 1 | 4 | |
SunPower Corp. Class B (a) | 3,400 | 63,138 | |
| 63,142 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 3.5% | |||
Electronic Components - 0.1% | |||
Vishay Intertechnology, Inc. (a) | 2,999 | 22,612 | |
Electronic Manufacturing Services - 2.8% | |||
Benchmark Electronics, Inc. (a) | 4,565 | 83,174 | |
DDi Corp. (a) | 14,342 | 61,814 | |
Flextronics International Ltd. (a) | 33,100 | 209,854 | |
Jabil Circuit, Inc. | 2,346 | 33,970 | |
Tyco Electronics Ltd. | 2,200 | 54,736 | |
| 443,548 | ||
Technology Distributors - 0.6% | |||
Arrow Electronics, Inc. (a) | 1,600 | 42,032 | |
Avnet, Inc. (a) | 2,069 | 54,704 | |
| 96,736 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 562,896 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.0% | |||
Life Sciences Tools & Services - 0.0% | |||
Arrowhead Research Corp. warrants 5/21/17 (a) | 64,879 | 1 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 88.4% | |||
Semiconductor Equipment - 17.9% | |||
Advanced Energy Industries, Inc. (a) | 200 | 2,624 | |
Aixtron AG | 1,700 | 51,139 | |
Amkor Technology, Inc. (a)(c) | 64,567 | 367,386 | |
Applied Materials, Inc. | 71,400 | 869,652 | |
ASM International NV (NASDAQ) (a) | 2,500 | 57,350 | |
ASML Holding NV (NY Shares) | 5,430 | 169,688 | |
ATMI, Inc. (a) | 1,200 | 20,136 | |
| |||
Shares | Value | ||
Brooks Automation, Inc. (a) | 300 | $ 2,502 | |
Cabot Microelectronics Corp. (a) | 100 | 3,515 | |
Cohu, Inc. | 100 | 1,295 | |
Cymer, Inc. (a) | 3,100 | 97,247 | |
Entegris, Inc. (a) | 6,561 | 23,882 | |
KLA-Tencor Corp. | 2,930 | 82,626 | |
Kulicke & Soffa Industries, Inc. (a) | 17,066 | 78,674 | |
Lam Research Corp. (a) | 9,390 | 309,964 | |
LTX-Credence Corp. (a) | 2,444 | 6,134 | |
Mattson Technology, Inc. (a) | 8,330 | 27,489 | |
MEMC Electronic Materials, Inc. (a) | 15,936 | 200,475 | |
Novellus Systems, Inc. (a) | 1,000 | 20,900 | |
Teradyne, Inc. (a)(c) | 11,700 | 109,278 | |
Tessera Technologies, Inc. (a) | 4,446 | 76,338 | |
Ultratech, Inc. (a) | 200 | 2,728 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 5,600 | 164,248 | |
Verigy Ltd. (a) | 7,800 | 84,552 | |
| 2,829,822 | ||
Semiconductors - 70.5% | |||
Actel Corp. (a) | 100 | 1,102 | |
Advanced Analogic Technologies, Inc. (a) | 12,088 | 40,374 | |
Advanced Micro Devices, Inc. (a) | 10,200 | 76,092 | |
Altera Corp. | 21,538 | 459,190 | |
Analog Devices, Inc. | 1,610 | 43,406 | |
Applied Micro Circuits Corp. (a) | 11,878 | 87,066 | |
ARM Holdings PLC sponsored ADR | 6,100 | 55,327 | |
Atheros Communications, Inc. (a) | 2,078 | 66,641 | |
Atmel Corp. (a) | 66,571 | 308,889 | |
AuthenTec, Inc. (a) | 17,100 | 43,776 | |
Avago Technologies Ltd. | 17,000 | 295,460 | |
Broadcom Corp. Class A (a) | 11,640 | 311,021 | |
Cypress Semiconductor Corp. (a) | 1,300 | 13,065 | |
Diodes, Inc. (a) | 200 | 3,336 | |
DSP Group, Inc. (a) | 200 | 1,378 | |
Exar Corp. (a) | 200 | 1,406 | |
Fairchild Semiconductor International, Inc. (a) | 52,804 | 474,180 | |
Himax Technologies, Inc. sponsored ADR | 17,500 | 51,975 | |
Integrated Device Technology, Inc. (a) | 14,200 | 80,514 | |
Intel Corp. | 192,558 | 3,735,624 | |
International Rectifier Corp. (a) | 7,263 | 131,025 | |
Intersil Corp. Class A | 17,860 | 240,574 | |
Linear Technology Corp. | 400 | 10,440 | |
LSI Corp. (a) | 17,338 | 86,517 | |
Marvell Technology Group Ltd. (a) | 40,764 | 710,517 | |
Maxim Integrated Products, Inc. | 400 | 6,992 | |
Micron Technology, Inc. (a) | 83,292 | 726,306 | |
Microsemi Corp. (a) | 6,466 | 96,602 | |
Monolithic Power Systems, Inc. (a) | 3,668 | 75,634 | |
National Semiconductor Corp. | 20,268 | 268,754 | |
NVIDIA Corp. (a) | 26,980 | 415,222 | |
O2Micro International Ltd. sponsored ADR (a) | 3,100 | 14,539 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
Omnivision Technologies, Inc. (a) | 6,200 | $ 79,980 | |
ON Semiconductor Corp. (a) | 31,104 | 224,260 | |
PMC-Sierra, Inc. (a) | 7,200 | 57,240 | |
RF Micro Devices, Inc. (a) | 8,300 | 31,955 | |
Samsung Electronics Co. Ltd. | 129 | 87,269 | |
Silicon Storage Technology, Inc. (a) | 500 | 1,335 | |
Skyworks Solutions, Inc. (a) | 8,450 | 107,231 | |
Standard Microsystems Corp. (a) | 4,617 | 92,109 | |
STATS ChipPAC Ltd. (a) | 50,000 | 37,689 | |
Texas Instruments, Inc. | 45,677 | 1,027,733 | |
Volterra Semiconductor Corp. (a) | 2,300 | 44,827 | |
Xilinx, Inc. | 18,200 | 429,156 | |
Zoran Corp. (a) | 900 | 9,873 | |
| 11,163,601 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 13,993,423 | ||
TOTAL COMMON STOCKS (Cost $16,956,662) | 15,381,700 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount |
| ||
ELECTRICAL EQUIPMENT - 0.1% | ||||
Electrical Components & Equipment - 0.1% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 10,000 | 10,435 | ||
Money Market Funds - 1.7% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 153,318 | $ 153,318 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 111,750 | 111,750 | |
TOTAL MONEY MARKET FUNDS (Cost $265,068) | 265,068 | ||
TOTAL INVESTMENT PORTFOLIO - 98.9% (Cost $17,231,730) | 15,657,203 |
NET OTHER ASSETS - 1.1% | 179,567 | ||
NET ASSETS - 100% | $ 15,836,770 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 366 |
Fidelity Securities Lending Cash Central Fund | 105 |
Total | $ 471 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 15,381,700 | $ 15,330,560 | $ 51,139 | $ 1 |
Convertible Bonds | 10,435 | - | 10,435 | - |
Money Market Funds | 265,068 | 265,068 | - | - |
Total Investments in Securities | $ 15,657,203 | $ 15,595,628 | $ 61,574 | $ 1 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ - |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | (23,884) |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | 23,885 |
Ending Balance | $ 1 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ (23,884) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.1% |
Bermuda | 4.5% |
Singapore | 3.9% |
Netherlands | 1.5% |
Cayman Islands | 1.4% |
Others (individually less than 1%) | 1.6% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $12,832,682 of which $4,774,109, $2,265,871, $279,201, $310,663 and $5,202,838 will expire on July 31, 2011, 2012, 2013, 2016 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $2,011,669 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Electronics
Advisor Electronics Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $106,820) - See accompanying schedule: Unaffiliated issuers (cost $16,966,662) | $ 15,392,135 |
|
Fidelity Central Funds (cost $265,068) | 265,068 |
|
Total Investments (cost $17,231,730) |
| $ 15,657,203 |
Cash | 22,559 | |
Receivable for investments sold | 706,826 | |
Receivable for fund shares sold | 49,440 | |
Dividends receivable | 6,161 | |
Interest receivable | 139 | |
Distributions receivable from Fidelity Central Funds | 54 | |
Prepaid expenses | 58 | |
Receivable from investment adviser for expense reductions | 4,005 | |
Other receivables | 217 | |
Total assets | 16,446,662 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 420,105 | |
Payable for fund shares redeemed | 32,195 | |
Accrued management fee | 8,094 | |
Distribution fees payable | 7,800 | |
Other affiliated payables | 5,199 | |
Other payables and accrued expenses | 24,749 | |
Collateral on securities loaned, at value | 111,750 | |
Total liabilities | 609,892 | |
|
|
|
Net Assets | $ 15,836,770 | |
Net Assets consist of: |
| |
Paid in capital | $ 31,454,091 | |
Accumulated net investment loss | (26,904) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (14,015,900) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (1,574,517) | |
Net Assets | $ 15,836,770 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 6.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $6.92) | $ 7.34 | |
Class T: | $ 6.79 | |
|
|
|
Maximum offering price per share (100/96.50 of $6.79) | $ 7.04 | |
Class B: | $ 6.50 | |
|
|
|
Class C: | $ 6.49 | |
|
|
|
Institutional Class: | $ 7.09 | |
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.
Electronics
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 92,148 |
Interest |
| 8,895 |
Income from Fidelity Central Funds |
| 471 |
Total income |
| 101,514 |
|
|
|
Expenses | ||
Management fee | $ 43,848 | |
Transfer agent fees | 28,414 | |
Distribution fees | 42,579 | |
Accounting and security lending fees | 3,060 | |
Custodian fees and expenses | 13,589 | |
Independent trustees' compensation | 45 | |
Registration fees | 42,191 | |
Audit | 21,821 | |
Legal | 91 | |
Miscellaneous | 120 | |
Total expenses before reductions | 195,758 | |
Expense reductions | (64,031) | 131,727 |
Net investment income (loss) | (30,213) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,334,374 | |
Foreign currency transactions | (308) | |
Total net realized gain (loss) |
| 1,334,066 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (657,177) | |
Assets and liabilities in foreign currencies | 27 | |
Total change in net unrealized appreciation (depreciation) |
| (657,150) |
Net gain (loss) | 676,916 | |
Net increase (decrease) in net assets resulting from operations | $ 646,703 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (30,213) | $ 34,721 |
Net realized gain (loss) | 1,334,066 | (3,412,258) |
Change in net unrealized appreciation (depreciation) | (657,150) | 2,662,881 |
Net increase (decrease) in net assets resulting from operations | 646,703 | (714,656) |
Distributions to shareholders from net investment income | (30,683) | - |
Share transactions - net increase (decrease) | 1,011,639 | 612,433 |
Redemption fees | 917 | 572 |
Total increase (decrease) in net assets | 1,628,576 | (101,651) |
|
|
|
Net Assets | ||
Beginning of period | 14,208,194 | 14,309,845 |
End of period (including accumulated net investment loss of $26,904 and undistributed net investment income of $33,992, respectively) | $ 15,836,770 | $ 14,208,194 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 | $ 6.58 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | .04 | - I | (.03) | (.04) | (.07) |
Net realized and unrealized gain (loss) | .36 | (.24) | (2.32) | 1.76 | (.62) | 1.53 |
Total from investment operations | .36 | (.20) | (2.32) | 1.73 | (.66) | 1.46 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.92 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 |
Total Return B, C, D | 5.39% | (2.95)% | (25.47)% | 23.44% | (8.21)% | 22.19% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.20% A | 2.44% | 1.72% | 1.60% | 1.50% | 1.59% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.45% |
Expenses net of all reductions | 1.39% A | 1.40% | 1.39% | 1.38% | 1.36% | 1.38% |
Net investment income (loss) | (.09)% A | .69% | (.02)% | (.35)% | (.52)% | (.96)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 6,103 | $ 5,433 | $ 3,970 | $ 7,551 | $ 7,916 | $ 11,397 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 | $ 6.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | .02 | (.02) | (.05) | (.06) | (.08) |
Net realized and unrealized gain (loss) | .35 | (.23) | (2.29) | 1.74 | (.61) | 1.51 |
Total from investment operations | .34 | (.21) | (2.31) | 1.69 | (.67) | 1.43 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.79 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 |
Total Return B, C, D | 5.24% | (3.15)% | (25.72)% | 23.18% | (8.42)% | 21.90% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.49% A | 2.77% | 2.02% | 1.89% | 1.82% | 1.89% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.69% |
Expenses net of all reductions | 1.64% A | 1.65% | 1.64% | 1.64% | 1.61% | 1.61% |
Net investment income (loss) | (.34)% A | .44% | (.27)% | (.60)% | (.77)% | (1.20)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,590 | $ 4,195 | $ 4,635 | $ 8,103 | $ 9,048 | $ 12,085 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 | $ 6.42 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | - I | (.06) | (.09) | (.10) | (.12) |
Net realized and unrealized gain (loss) | .34 | (.24) | (2.21) | 1.69 | (.58) | 1.48 |
Total from investment operations | .31 | (.24) | (2.27) | 1.60 | (.68) | 1.36 |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.50 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 |
Total Return B, C, D | 5.01% | (3.73)% | (26.09)% | 22.54% | (8.74)% | 21.18% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.96% A | 3.22% | 2.48% | 2.36% | 2.29% | 2.41% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.21% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.13% | 2.11% | 2.13% |
Net investment income (loss) | (.84)% A | (.06)% | (.77)% | (1.10)% | (1.27)% | (1.72)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,182 | $ 1,197 | $ 2,027 | $ 4,572 | $ 6,123 | $ 8,963 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 | $ 6.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | - I | (.06) | (.09) | (.10) | (.11) |
Net realized and unrealized gain (loss) | .34 | (.24) | (2.21) | 1.69 | (.58) | 1.47 |
Total from investment operations | .31 | (.24) | (2.27) | 1.60 | (.68) | 1.36 |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 6.49 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 |
Total Return B, C, D | 5.02% | (3.74)% | (26.12)% | 22.57% | (8.75)% | 21.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.96% A | 3.21% | 2.47% | 2.34% | 2.26% | 2.31% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.18% |
Expenses net of all reductions | 2.14% A | 2.15% | 2.14% | 2.13% | 2.11% | 2.11% |
Net investment income (loss) | (.84)% A | (.06)% | (.77)% | (1.10)% | (1.27)% | (1.69)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,417 | $ 3,016 | $ 3,325 | $ 8,389 | $ 7,009 | $ 11,058 |
Portfolio turnover rate G | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 | $ 6.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .05 | .02 | (.01) | (.02) | (.05) |
Net realized and unrealized gain (loss) | .36 | (.24) | (2.38) | 1.80 | (.62) | 1.55 |
Total from investment operations | .37 | (.19) | (2.36) | 1.79 | (.64) | 1.50 |
Distributions from net investment income | (.03) | - | - | - | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 7.09 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 |
Total Return B, C | 5.53% | (2.74)% | (25.38)% | 23.83% | (7.85)% | 22.56% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.90% A | 2.16% | 1.47% | 1.26% | 1.11% | 1.16% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.11% | 1.16% |
Expenses net of all reductions | 1.14% A | 1.15% | 1.14% | 1.13% | 1.07% | 1.08% |
Net investment income (loss) | .16% A | .94% | .23% | (.10)% | (.23)% | (.67)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 546 | $ 367 | $ 353 | $ 730 | $ 750 | $ 899 |
Portfolio turnover rate F | 74% A | 92% | 93% | 97% | 95% | 128% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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.
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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Electronics
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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. 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, market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 1,436,991 |
|
Gross unrealized depreciation | (3,447,335) |
|
Net unrealized appreciation (depreciation) | $ (2,010,344) |
|
|
|
|
Tax cost | $ 17,667,547 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,717,847 and $5,527,983, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 7,409 | $ 82 |
Class T | .25% | .25% | 11,400 | 6 |
Class B | .75% | .25% | 6,504 | 4,883 |
Class C | .75% | .25% | 17,266 | 1,837 |
|
|
| $ 42,579 | $ 6,808 |
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 |
Class A | $ 3,287 |
Class T | 2,124 |
Class B* | 681 |
Class C* | 45 |
| $ 6,137 |
* 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 |
Class A | $ 10,462 | .35 |
Class T | 8,848 | .39 |
Class B | 2,318 | .36 |
Class C | 6,119 | .36 |
Institutional Class | 667 | .30 |
| $ 28,414 |
|
* Annualized
Electronics
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $640 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $29 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $105.
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 | Reimbursement |
Class A | 1.40% | $ 23,542 |
Class T | 1.65% | 18,999 |
Class B | 2.15% | 5,257 |
Class C | 2.15% | 13,869 |
Institutional Class | 1.15% | 1,667 |
|
| $ 63,334 |
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 $697 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 22,913 | $ - |
Class T | 5,704 | - |
Institutional Class | 2,066 | - |
Total | $ 30,683 | $ - |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 279,559 | 454,229 | $ 1,993,246 | $ 2,515,743 |
Reinvestment of distributions | 3,053 | - | 21,642 | - |
Shares redeemed | (224,975) | (214,204) | (1,565,055) | (1,126,041) |
Net increase (decrease) | 57,637 | 240,025 | $ 449,833 | $ 1,389,702 |
Class T |
|
|
|
|
Shares sold | 103,904 | 211,424 | $ 734,159 | $ 1,046,750 |
Reinvestment of distributions | 793 | - | 5,519 | - |
Shares redeemed | (78,198) | (256,279) | (531,335) | (1,247,787) |
Net increase (decrease) | 26,499 | (44,855) | $ 208,343 | $ (201,037) |
Class B |
|
|
|
|
Shares sold | 39,310 | 57,656 | $ 264,373 | $ 278,136 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (50,749) | (179,676) | (336,375) | (832,636) |
Net increase (decrease) | (11,439) | (122,020) | $ (72,002) | $ (554,500) |
Class C |
|
|
|
|
Shares sold | 122,424 | 132,135 | $ 809,122 | $ 684,005 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (83,854) | (162,035) | (555,026) | (721,474) |
Net increase (decrease) | 38,570 | (29,900) | $ 254,096 | $ (37,469) |
Institutional Class |
|
|
|
|
Shares sold | 41,795 | 29,924 | $ 306,563 | $ 158,084 |
Reinvestment of distributions | 194 | - | 1,410 | - |
Shares redeemed | (19,426) | (26,319) | (136,604) | (142,347) |
Net increase (decrease) | 22,563 | 3,605 | $ 171,369 | $ 15,737 |
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.
Electronics
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.22% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.40 | $ 6.52 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.06 | $ 6.21 |
Class T | 1.42% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,119.00 | $ 7.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.05 | $ 7.22 |
Class B | 1.98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.00 | $ 10.56 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.22 | $ 10.06 |
Class C | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,116.00 | $ 10.40 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,121.90 | $ 4.81 |
Hypothetical A |
| $ 1,000.00 | $ 1,020.67 | $ 4.58 |
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 Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Schlumberger Ltd. | 6.9 | 5.8 |
XTO Energy, Inc. | 6.0 | 0.0 |
Southwestern Energy Co. | 5.2 | 4.9 |
Occidental Petroleum Corp. | 5.2 | 6.2 |
BJ Services Co. | 4.0 | 2.3 |
Petrohawk Energy Corp. | 3.7 | 4.0 |
Anadarko Petroleum Corp. | 3.5 | 1.8 |
Transocean Ltd. | 3.4 | 3.8 |
Alpha Natural Resources, Inc. | 3.1 | 0.5 |
Noble Corp. | 3.1 | 3.3 |
| 44.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Oil, Gas & | 57.5% |
|
| Energy Equipment & Services | 37.2% |
|
| Electrical Equipment | 2.2% |
|
| Construction & Engineering | 0.7% |
|
| Gas Utilities | 0.6% |
|
| All Others* | 1.8% |
|
As of July 31, 2009 | |||
| Oil, Gas & | 58.0% |
|
| Energy Equipment & Services | 37.0% |
|
| Electrical Equipment | 3.1% |
|
| Gas Utilities | 1.1% |
|
| Construction & Engineering | 0.5% |
|
| All Others* | 0.3% |
|
* Includes short-term investments and net other assets. |
Energy
Advisor Energy Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
CHEMICALS - 0.1% | |||
Commodity Chemicals - 0.1% | |||
STR Holdings, Inc. | 20,500 | $ 341,940 | |
CONSTRUCTION & ENGINEERING - 0.7% | |||
Construction & Engineering - 0.7% | |||
Jacobs Engineering Group, Inc. (a) | 127,700 | 4,825,783 | |
ELECTRICAL EQUIPMENT - 2.2% | |||
Electrical Components & Equipment - 2.1% | |||
centrotherm photovoltaics AG (a) | 25,223 | 1,406,388 | |
First Solar, Inc. (a)(c) | 49,700 | 5,631,010 | |
JA Solar Holdings Co. Ltd. ADR (a)(c) | 854,495 | 3,674,329 | |
SunPower Corp.: | |||
Class A (a) | 22,200 | 452,658 | |
Class B (a) | 153,700 | 2,854,209 | |
| 14,018,594 | ||
Heavy Electrical Equipment - 0.1% | |||
Vestas Wind Systems AS (a) | 12,700 | 667,951 | |
TOTAL ELECTRICAL EQUIPMENT | 14,686,545 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.2% | |||
Electronic Equipment & Instruments - 0.2% | |||
Itron, Inc. (a) | 21,147 | 1,301,386 | |
ENERGY EQUIPMENT & SERVICES - 37.2% | |||
Oil & Gas Drilling - 12.1% | |||
Atwood Oceanics, Inc. (a) | 31,346 | 1,050,718 | |
Diamond Offshore Drilling, Inc. | 100 | 9,153 | |
Ensco International Ltd. ADR | 89,000 | 3,473,670 | |
Helmerich & Payne, Inc. | 226,353 | 9,468,346 | |
Hercules Offshore, Inc. (a) | 164,594 | 641,917 | |
Nabors Industries Ltd. (a) | 660,322 | 14,725,181 | |
Noble Corp. | 504,343 | 20,335,110 | |
Northern Offshore Ltd. (a) | 1,086,500 | 1,879,220 | |
Patterson-UTI Energy, Inc. | 116,517 | 1,789,701 | |
Pride International, Inc. (a) | 131,287 | 3,886,095 | |
Transocean Ltd. (a) | 260,864 | 22,105,615 | |
| 79,364,726 | ||
Oil & Gas Equipment & Services - 25.1% | |||
Baker Hughes, Inc. | 107,890 | 4,885,259 | |
Basic Energy Services, Inc. (a) | 28,240 | 265,174 | |
BJ Services Co. | 1,276,350 | 26,382,155 | |
Cameron International Corp. (a) | 20,200 | 760,732 | |
Complete Production Services, Inc. (a) | 44,054 | 551,997 | |
Core Laboratories NV | 23,200 | 2,713,240 | |
Dresser-Rand Group, Inc. (a) | 35,900 | 1,061,922 | |
Global Industries Ltd. (a) | 318,103 | 2,217,178 | |
Halliburton Co. | 391,860 | 11,446,231 | |
Helix Energy Solutions Group, Inc. (a) | 69,700 | 739,517 | |
Key Energy Services, Inc. (a) | 73,600 | 711,712 | |
National Oilwell Varco, Inc. | 492,257 | 20,133,311 | |
Newpark Resources, Inc. (a) | 19,781 | 78,926 | |
| |||
Shares | Value | ||
Oceaneering International, Inc. (a) | 89,300 | $ 4,884,710 | |
Oil States International, Inc. (a) | 25,900 | 954,156 | |
Schlumberger Ltd. | 711,300 | 45,139,096 | |
Smith International, Inc. | 461,511 | 13,993,014 | |
Superior Energy Services, Inc. (a) | 184,784 | 4,244,488 | |
Superior Well Services, Inc. (a) | 8,700 | 137,721 | |
TSC Offshore Group Ltd. (a) | 1,705,000 | 562,188 | |
Weatherford International Ltd. (a) | 1,243,964 | 19,505,356 | |
Willbros Group, Inc. (a) | 200,494 | 3,065,553 | |
| 164,433,636 | ||
TOTAL ENERGY EQUIPMENT & SERVICES | 243,798,362 | ||
GAS UTILITIES - 0.6% | |||
Gas Utilities - 0.6% | |||
Questar Corp. | 81,700 | 3,388,916 | |
Zhongyu Gas Holdings Ltd. (a) | 6,538,000 | 665,257 | |
| 4,054,173 | ||
METALS & MINING - 0.2% | |||
Diversified Metals & Mining - 0.2% | |||
Teck Resources Ltd. Class B (sub. vtg.) (a) | 46,300 | 1,515,910 | |
OIL, GAS & CONSUMABLE FUELS - 57.5% | |||
Coal & Consumable Fuels - 10.3% | |||
Alpha Natural Resources, Inc. (a) | 505,964 | 20,547,198 | |
Arch Coal, Inc. | 654,485 | 13,789,999 | |
Centennial Coal Co. Ltd. | 229,855 | 741,860 | |
Cloud Peak Energy, Inc. | 111,100 | 1,500,961 | |
CONSOL Energy, Inc. | 215,713 | 10,054,383 | |
Massey Energy Co. | 525,723 | 20,250,850 | |
PT Bumi Resources Tbk | 2,851,800 | 754,889 | |
SouthGobi Energy Resources Ltd. (a)(d) | 3,900 | 57,809 | |
| 67,697,949 | ||
Integrated Oil & Gas - 11.8% | |||
BG Group PLC | 109,801 | 2,018,497 | |
BP PLC sponsored ADR | 227,500 | 12,767,300 | |
Chevron Corp. | 18,400 | 1,327,008 | |
ConocoPhillips | 1,946 | 93,408 | |
Hess Corp. | 1,253 | 72,411 | |
Marathon Oil Corp. | 677,253 | 20,188,912 | |
Occidental Petroleum Corp. | 433,179 | 33,935,243 | |
Royal Dutch Shell PLC Class A sponsored ADR | 120,700 | 6,685,573 | |
| 77,088,352 | ||
Oil & Gas Exploration & Production - 33.4% | |||
Anadarko Petroleum Corp. | 355,484 | 22,672,770 | |
Apache Corp. | 120,100 | 11,862,277 | |
Arena Resources, Inc. (a) | 86,690 | 3,323,695 | |
Berry Petroleum Co. Class A | 36,900 | 999,252 | |
Brigham Exploration Co. (a) | 118,700 | 1,547,848 | |
Cabot Oil & Gas Corp. | 437,702 | 16,750,856 | |
Canadian Natural Resources Ltd. | 94,300 | 6,018,867 | |
Comstock Resources, Inc. (a) | 181,611 | 7,081,013 | |
Common Stocks - continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - CONTINUED | |||
Oil & Gas Exploration & Production - continued | |||
Denbury Resources, Inc. (a) | 132,543 | $ 1,795,958 | |
EOG Resources, Inc. | 58,984 | 5,333,333 | |
EXCO Resources, Inc. | 737,426 | 12,934,452 | |
Mariner Energy, Inc. (a) | 1,000 | 14,450 | |
Newfield Exploration Co. (a) | 160,050 | 7,832,847 | |
Niko Resources Ltd. | 16,500 | 1,523,623 | |
OPTI Canada, Inc. (a) | 144,200 | 260,269 | |
Painted Pony Petroleum Ltd. Class A (a) | 123,500 | 808,473 | |
Petrobank Energy & Resources Ltd. (a) | 25,100 | 1,240,094 | |
Petrohawk Energy Corp. (a) | 1,079,362 | 24,102,153 | |
Range Resources Corp. | 80,784 | 3,716,064 | |
Southwestern Energy Co. (a) | 793,800 | 34,038,144 | |
Ultra Petroleum Corp. (a) | 109,700 | 5,039,618 | |
Whiting Petroleum Corp. (a) | 160,610 | 10,690,202 | |
XTO Energy, Inc. | 886,510 | 39,511,751 | |
| 219,098,009 | ||
Oil & Gas Refining & Marketing - 2.0% | |||
Frontier Oil Corp. | 413,223 | 5,148,759 | |
Tesoro Corp. | 43,800 | 547,500 | |
Valero Energy Corp. | 311,263 | 5,733,464 | |
World Fuel Services Corp. | 65,800 | 1,581,174 | |
| 13,010,897 | ||
TOTAL OIL, GAS & CONSUMABLE FUELS | 376,895,207 | ||
TOTAL COMMON STOCKS (Cost $592,917,240) | 647,419,306 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
ELECTRICAL EQUIPMENT - 0.0% | ||||
Electrical Components & Equipment - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 320,000 | 333,920 | ||
Money Market Funds - 2.2% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (e) | 6,539,112 | $ 6,539,112 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 7,690,800 | 7,690,800 | |
TOTAL MONEY MARKET FUNDS (Cost $14,229,912) | 14,229,912 | ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $607,467,152) | 661,983,138 | ||
NET OTHER ASSETS - (0.9)% | (6,000,008) | ||
NET ASSETS - 100% | $ 655,983,130 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $57,809 or 0.0% of net assets. |
(e) 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 | $ 6,509 |
Fidelity Securities Lending Cash Central Fund | 112,477 |
Total | $ 118,986 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 647,419,306 | $ 641,447,250 | $ 5,972,056 | $ - |
Convertible Bonds | 333,920 | - | 333,920 | - |
Money Market Funds | 14,229,912 | 14,229,912 | - | - |
Total Investments in Securities | $ 661,983,138 | $ 655,677,162 | $ 6,305,976 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 75.4% |
Switzerland | 9.5% |
Netherlands Antilles | 6.9% |
United Kingdom | 3.8% |
Canada | 2.4% |
Others (individually less than 1%) | 2.0% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $106,222,894 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $79,621,140 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $7,339,680) - See accompanying schedule: Unaffiliated issuers (cost $593,237,240) | $ 647,753,226 |
|
Fidelity Central Funds (cost $14,229,912) | 14,229,912 |
|
Total Investments (cost $607,467,152) |
| $ 661,983,138 |
Receivable for investments sold | 8,295,777 | |
Receivable for fund shares sold | 977,238 | |
Dividends receivable | 39,183 | |
Interest receivable | 4,433 | |
Distributions receivable from Fidelity Central Funds | 12,817 | |
Prepaid expenses | 2,376 | |
Other receivables | 13,204 | |
Total assets | 671,328,166 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,371,864 | |
Payable for fund shares redeemed | 2,424,797 | |
Accrued management fee | 334,493 | |
Distribution fees payable | 301,722 | |
Other affiliated payables | 192,130 | |
Other payables and accrued expenses | 29,230 | |
Collateral on securities loaned, at value | 7,690,800 | |
Total liabilities | 15,345,036 | |
|
|
|
Net Assets | $ 655,983,130 | |
Net Assets consist of: |
| |
Paid in capital | $ 776,128,124 | |
Accumulated net investment loss | (1,337,581) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (173,324,766) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 54,517,353 | |
Net Assets | $ 655,983,130 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 28.93 | |
|
|
|
Maximum offering price per share (100/94.25 of $28.93) | $ 30.69 | |
Class T: | $ 29.62 | |
|
|
|
Maximum offering price per share (100/96.50 of $29.62) | $ 30.69 | |
Class B: | $ 27.32 | |
|
|
|
Class C: | $ 27.51 | |
|
|
|
Institutional Class: | $ 30.10 | |
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 Energy Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 3,320,774 |
Interest |
| 7,599 |
Income from Fidelity Central Funds |
| 118,986 |
Total income |
| 3,447,359 |
|
|
|
Expenses | ||
Management fee | $ 1,856,811 | |
Transfer agent fees | 1,022,638 | |
Distribution fees | 1,677,663 | |
Accounting and security lending fees | 130,603 | |
Custodian fees and expenses | 16,877 | |
Independent trustees' compensation | 1,984 | |
Registration fees | 64,316 | |
Audit | 28,111 | |
Legal | 2,329 | |
Miscellaneous | 5,621 | |
Total expenses before reductions | 4,806,953 | |
Expense reductions | (22,121) | 4,784,832 |
Net investment income (loss) | (1,337,473) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 35,019,719 | |
Foreign currency transactions | (65,889) | |
Total net realized gain (loss) |
| 34,953,830 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 36,284,116 | |
Assets and liabilities in foreign currencies | 1,309 | |
Total change in net unrealized appreciation (depreciation) |
| 36,285,425 |
Net gain (loss) | 71,239,255 | |
Net increase (decrease) in net assets resulting from operations | $ 69,901,782 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,337,473) | $ (2,256,368) |
Net realized gain (loss) | 34,953,830 | (205,660,800) |
Change in net unrealized appreciation (depreciation) | 36,285,425 | (183,346,614) |
Net increase (decrease) in net assets resulting from operations | 69,901,782 | (391,263,782) |
Distributions to shareholders from net realized gain | - | (137,595,735) |
Share transactions - net increase (decrease) | (7,985,447) | 82,598,513 |
Redemption fees | 19,549 | 78,335 |
Total increase (decrease) in net assets | 61,935,884 | (446,182,669) |
|
|
|
Net Assets | ||
Beginning of period | 594,047,246 | 1,040,229,915 |
End of period (including accumulated net investment loss of $1,337,581 and accumulated net investment loss of $108, respectively) | $ 655,983,130 | $ 594,047,246 |
See accompanying notes which are an integral part of the financial statements.
Energy
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 | $ 29.12 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss)E | (.02) | (.04) | (.17) | (.02) H | (.04) | .06 |
Net realized and unrealized gain (loss) | 3.13 | (17.48) | 5.59 | 8.42 | 12.30 | 12.21 |
Total from investment operations | 3.11 | (17.52) | 5.42 | 8.40 | 12.26 | 12.27 |
Distributions from net investment income | - | - | - | - | - | (.06) |
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) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 28.93 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 |
Total Return B,C,D | 12.04% | (38.86)% | 11.52% | 22.08% | 32.90% | 42.69% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.22% A | 1.22% | 1.14% | 1.19% | 1.21% | 1.25% |
Expenses net of fee waivers, if any | 1.22% A | 1.22% | 1.14% | 1.19% | 1.21% | 1.25% |
Expenses net of all reductions | 1.21% A | 1.21% | 1.14% | 1.19% | 1.17% | 1.19% |
Net investment income (loss) | (.17)% A | (.14)% | (.32)% | (.05)% H | (.09)% | .19% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 238,742 | $ 216,595 | $ 355,200 | $ 268,108 | $ 204,391 | $ 90,342 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 | $ 29.52 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.29) | (.11) H | (.13) | - J |
Net realized and unrealized gain (loss) | 3.21 | (17.93) | 5.72 | 8.61 | 12.49 | 12.37 |
Total from investment operations | 3.15 | (18.03) | 5.43 | 8.50 | 12.36 | 12.37 |
Distributions from net investment income | - | - | - | - | - | (.03) |
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) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | .01 | .01 |
Net asset value, end of period | $ 29.62 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 |
Total Return B,C,D | 11.90% | (38.99)% | 11.27% | 21.84% | 32.60% | 42.41% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.42% A | 1.45% | 1.36% | 1.40% | 1.42% | 1.44% |
Expenses net of fee waivers, if any | 1.42% A | 1.45% | 1.36% | 1.40% | 1.42% | 1.44% |
Expenses net of all reductions | 1.41% A | 1.45% | 1.35% | 1.39% | 1.38% | 1.39% |
Net investment income (loss) | (.37)% A | (.38)% | (.54)% | (.26)% H | (.29)% | (.01)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 245,561 | $ 224,376 | $ 407,784 | $ 382,222 | $ 362,272 | $ 280,820 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 | $ 28.54 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.13) | (.22) | (.56) | (.34) H | (.35) | (.18) |
Net realized and unrealized gain (loss) | 2.97 | (16.75) | 5.41 | 8.17 | 11.98 | 11.93 |
Total from investment operations | 2.84 | (16.97) | 4.85 | 7.83 | 11.63 | 11.75 |
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 | - J | .01 | .01 |
Net asset value, end of period | $ 27.32 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 |
Total Return B,C,D | 11.60% | (39.31)% | 10.62% | 21.18% | 31.86% | 41.66% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.98% A | 1.96% | 1.93% | 1.96% | 1.96% | 1.98% |
Expenses net of fee waivers, if any | 1.98% A | 1.96% | 1.93% | 1.96% | 1.96% | 1.98% |
Expenses net of all reductions | 1.98% A | 1.96% | 1.93% | 1.95% | 1.92% | 1.93% |
Net investment income (loss) | (.93)% A | (.89)% | (1.11)% | (.82)% H | (.84)% | (.55)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 50,207 | $ 47,795 | $ 98,602 | $ 116,487 | $ 130,973 | $ 102,003 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 | $ 28.68 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.21) | (.54) | (.32) H | (.34) | (.17) |
Net realized and unrealized gain (loss) | 2.98 | (16.87) | 5.45 | 8.20 | 12.06 | 11.99 |
Total from investment operations | 2.86 | (17.08) | 4.91 | 7.88 | 11.72 | 11.82 |
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 | - J | .01 | .01 |
Net asset value, end of period | $ 27.51 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 |
Total Return B,C,D | 11.60% | (39.31)% | 10.71% | 21.22% | 31.96% | 41.70% |
Ratios to Average Net Assets F,I |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.96% | 1.87% | 1.91% | 1.92% | 1.94% |
Expenses net of fee waivers, if any | 1.95% A | 1.96% | 1.87% | 1.91% | 1.92% | 1.94% |
Expenses net of all reductions | 1.94% A | 1.95% | 1.87% | 1.91% | 1.88% | 1.89% |
Net investment income (loss) | (.90)% A | (.88)% | (1.05)% | (.77)% H | (.79)% | (.51)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 97,944 | $ 86,650 | $ 156,393 | $ 135,072 | $ 125,424 | $ 72,832 |
Portfolio turnover rate G | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 | $ 29.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .02 | .03 | (.02) | .11 G | .12 | .19 |
Net realized and unrealized gain (loss) | 3.25 | (18.06) | 5.74 | 8.67 | 12.56 | 12.44 |
Total from investment operations | 3.27 | (18.03) | 5.72 | 8.78 | 12.68 | 12.63 |
Distributions from net investment income | - | - | - | - | - | (.11) |
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) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | .01 | .01 |
Net asset value, end of period | $ 30.10 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 |
Total Return B,C | 12.19% | (38.68)% | 11.83% | 22.47% | 33.35% | 43.21% |
Ratios to Average Net Assets E,H |
|
|
|
|
|
|
Expenses before reductions | .90% A | .95% | .85% | .88% | .87% | .89% |
Expenses net of fee waivers, if any | .90% A | .95% | .85% | .88% | .87% | .89% |
Expenses net of all reductions | .90% A | .94% | .85% | .88% | .83% | .84% |
Net investment income (loss) | .14% A | .13% | (.03)% | .25% G | .26% | .54% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,529 | $ 18,631 | $ 22,250 | $ 17,127 | $ 19,553 | $ 9,433 |
Portfolio turnover rate F | 83% A | 148% | 90% | 80% | 139% | 125% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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, capital loss carryforwards, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, net operating losses and losses deferred due to wash sales and excise tax regulations.
Energy
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 105,669,575 |
|
Gross unrealized depreciation | (64,915,306) |
|
Net unrealized appreciation (depreciation) | $ 40,754,269 |
|
|
|
|
Tax cost | $ 621,228,869 |
|
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.
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 $263,757,280 and $280,345,727, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 302,416 | $ 5,821 |
Class T | .25% | .25% | 622,784 | - |
Class B | .75% | .25% | 260,909 | 195,703 |
Class C | .75% | .25% | 491,554 | 87,519 |
|
|
| $ 1,677,663 | $ 289,043 |
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 |
Class A | $ 96,440 |
Class T | 16,146 |
Class B* | 49,718 |
Class C* | 6,635 |
| $ 168,939 |
* 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 |
Class A | $ 398,775 | .33 |
Class T | 352,309 | .28 |
Class B | 89,583 | .34 |
Class C | 151,835 | .31 |
Institutional Class | 30,136 | .27 |
| $ 1,022,638 |
|
* 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 $1,010 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,267 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 $112,477.
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 $22,121 for the period.
Energy
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 46,997,290 |
Class T | - | 53,170,678 |
Class B | - | 13,492,835 |
Class C | - | 21,034,743 |
Institutional Class | - | 2,900,189 |
Total | $ - | $ 137,595,735 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,422,169 | 3,517,345 | $ 41,549,317 | $ 85,305,714 |
Reinvestment of distributions | - | 1,158,188 | - | 42,134,872 |
Shares redeemed | (1,556,199) | (3,358,560) | (45,256,399) | (88,397,497) |
Net increase (decrease) | (134,030) | 1,316,973 | $ (3,707,082) | $ 39,043,089 |
Class T |
|
|
|
|
Shares sold | 730,883 | 2,191,463 | $ 22,039,019 | $ 53,583,018 |
Reinvestment of distributions | - | 1,332,408 | - | 49,792,078 |
Shares redeemed | (917,123) | (2,980,646) | (27,358,608) | (77,608,101) |
Net increase (decrease) | (186,240) | 543,225 | $ (5,319,589) | $ 25,766,995 |
Class B |
|
|
|
|
Shares sold | 162,044 | 529,128 | $ 4,493,526 | $ 12,513,157 |
Reinvestment of distributions | - | 339,485 | - | 11,786,924 |
Shares redeemed | (276,495) | (955,690) | (7,593,884) | (23,571,286) |
Net increase (decrease) | (114,451) | (87,077) | $ (3,100,358) | $ 728,795 |
Class C |
|
|
|
|
Shares sold | 453,094 | 1,217,008 | $ 12,751,292 | $ 28,382,837 |
Reinvestment of distributions | - | 507,064 | - | 17,726,948 |
Shares redeemed | (408,105) | (1,425,212) | (11,275,471) | (35,998,056) |
Net increase (decrease) | 44,989 | 298,860 | $ 1,475,821 | $ 10,111,729 |
Institutional Class |
|
|
|
|
Shares sold | 338,222 | 470,080 | $ 10,517,450 | $ 12,030,140 |
Reinvestment of distributions | - | 54,219 | - | 2,044,586 |
Shares redeemed | (250,943) | (259,760) | (7,851,689) | (7,126,821) |
Net increase (decrease) | 87,279 | 264,539 | $ 2,665,761 | $ 6,947,905 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Advisor Financial Services Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.70 | $ 6.85 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.70 | $ 6.56 |
Class T | 1.55% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.30 | $ 8.23 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.39 | $ 7.88 |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.90 | $ 10.87 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.87 | $ 10.41 |
Class C | 2.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,102.10 | $ 10.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,108.20 | $ 5.31 |
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).
Financial Services
Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
JPMorgan Chase & Co. | 5.0 | 3.6 |
Zions Bancorp | 4.8 | 0.5 |
Citigroup, Inc. | 4.8 | 1.0 |
Bank of America Corp. | 4.7 | 2.8 |
McGraw-Hill Companies, Inc. | 4.4 | 3.5 |
Morgan Stanley | 4.2 | 5.1 |
Wells Fargo & Co. | 3.5 | 1.0 |
Sumitomo Mitsui Financial Group, Inc. | 3.5 | 0.0 |
Comerica, Inc. | 3.5 | 0.0 |
KeyCorp | 3.3 | 2.5 |
| 41.7 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Commercial Banks | 39.9% |
|
| Capital Markets | 23.9% |
|
| Diversified Financial Services | 18.0% |
|
| Insurance | 7.1% |
|
| Media | 4.7% |
|
| All Others* | 6.4% |
|
As of July 31, 2009 | |||
| Capital Markets | 28.9% |
|
| Commercial Banks | 18.3% |
|
| Insurance | 16.1% |
|
| Diversified Financial Services | 10.9% |
|
| IT Services | 8.6% |
|
| All Others* | 17.2% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Financial Services Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CAPITAL MARKETS - 23.9% | |||
Asset Management & Custody Banks - 7.7% | |||
AllianceBernstein Holding LP | 67,900 | $ 1,747,746 | |
Bank of New York Mellon Corp. | 55,598 | 1,617,346 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) (a) | 12,172 | 415,604 | |
EFG International | 187,118 | 2,682,456 | |
Franklin Resources, Inc. | 16,205 | 1,604,781 | |
Janus Capital Group, Inc. | 38,900 | 474,969 | |
Legg Mason, Inc. | 43,353 | 1,117,640 | |
State Street Corp. | 16,761 | 718,712 | |
The Blackstone Group LP | 101,300 | 1,228,769 | |
U.S. Global Investments, Inc. Class A | 31,848 | 306,059 | |
| 11,914,082 | ||
Investment Banking & Brokerage - 16.2% | |||
Broadpoint Gleacher Securities Group, Inc. (a) | 665,522 | 2,695,364 | |
Charles Schwab Corp. | 213,400 | 3,903,086 | |
Evercore Partners, Inc. Class A | 49,600 | 1,481,552 | |
GFI Group, Inc. | 465,278 | 2,265,904 | |
Goldman Sachs Group, Inc. | 17,947 | 2,669,078 | |
Jefferies Group, Inc. (c) | 80,009 | 2,043,430 | |
MF Global Holdings Ltd. (a) | 513,825 | 3,365,554 | |
Morgan Stanley | 241,800 | 6,475,404 | |
TD Ameritrade Holding Corp. (a) | 20,500 | 364,080 | |
| 25,263,452 | ||
TOTAL CAPITAL MARKETS | 37,177,534 | ||
COMMERCIAL BANKS - 39.9% | |||
Diversified Banks - 20.8% | |||
Alpha Bank AE (a) | 218,500 | 2,097,122 | |
Banco Macro SA sponsored ADR | 13,543 | 386,111 | |
Barclays PLC Sponsored ADR (c) | 254,900 | 4,361,339 | |
BBVA Banco Frances SA sponsored ADR (c) | 74,683 | 474,237 | |
China Citic Bank Corp. Ltd. Class H | 1,918,000 | 1,292,015 | |
China Merchants Bank Co. Ltd. (H Shares) | 120,000 | 279,136 | |
Comerica, Inc. | 156,862 | 5,413,308 | |
Mizuho Financial Group, Inc. | 698,000 | 1,353,163 | |
National Bank of Greece SA (a) | 141,300 | 3,088,578 | |
National Bank of Greece SA sponsored ADR | 288,177 | 1,285,269 | |
Sumitomo Mitsui Financial Group, Inc. | 166,500 | 5,413,509 | |
U.S. Bancorp, Delaware | 59,500 | 1,492,260 | |
Wells Fargo & Co. | 191,800 | 5,452,874 | |
| 32,388,921 | ||
Regional Banks - 19.1% | |||
1st Pacific Bancorp (a) | 8,600 | 5,591 | |
Atlantic Southern Financial Group, Inc. (a) | 2,402 | 5,044 | |
Bancorp New Jersey, Inc. | 462 | 5,234 | |
| |||
Shares | Value | ||
BancTrust Financial Group, Inc. (c) | 13,100 | $ 51,090 | |
Bar Harbor Bankshares | 1,132 | 30,575 | |
Boston Private Financial Holdings, Inc. | 31,200 | 223,704 | |
Bridge Capital Holdings (a) | 1,770 | 14,372 | |
Chicopee Bancorp, Inc. (a) | 1,500 | 19,425 | |
Citizens Banking Corp., Michigan (a) | 1,265,700 | 961,932 | |
CoBiz, Inc. | 43,312 | 231,286 | |
Evans Bancorp, Inc. | 600 | 7,350 | |
Fifth Third Bancorp | 115,462 | 1,436,347 | |
First Bancorp, Puerto Rico | 69,900 | 159,372 | |
Frontier Financial Corp. (a)(c) | 44,628 | 190,115 | |
Glacier Bancorp, Inc. (c) | 81,829 | 1,173,428 | |
Huntington Bancshares, Inc. | 93,000 | 445,470 | |
KeyCorp | 708,700 | 5,088,466 | |
Landmark Bancorp, Inc. | 100 | 1,523 | |
MidWestOne Financial Group, Inc. | 900 | 8,550 | |
Monroe Bancorp | 300 | 2,025 | |
Nara Bancorp, Inc. | 36,404 | 332,733 | |
Oriental Financial Group, Inc. | 47,600 | 541,688 | |
PNC Financial Services Group, Inc. | 1,845 | 102,268 | |
Preferred Bank, Los Angeles California | 17,300 | 27,680 | |
Regions Financial Corp. | 474,726 | 3,014,510 | |
Salisbury Bancorp, Inc. | 1,500 | 34,575 | |
Smithtown Bancorp, Inc. | 31,720 | 171,605 | |
Southwest Bancorp, Inc., Oklahoma | 7,300 | 54,677 | |
Sterling Bancshares, Inc. | 67,900 | 346,969 | |
Sun Bancorp, Inc., New Jersey | 21,747 | 82,856 | |
SunTrust Banks, Inc. | 74,153 | 1,804,142 | |
SVB Financial Group (a) | 40,312 | 1,749,138 | |
Tamalpais Bancorp | 25,822 | 22,982 | |
Umpqua Holdings Corp. | 97,184 | 1,201,194 | |
United Security Bancshares, California | 5,950 | 30,048 | |
W Holding Co., Inc. | 7,571 | 143,092 | |
West Bancorp., Inc. | 6,500 | 33,150 | |
Wintrust Financial Corp. | 70,619 | 2,453,304 | |
Zions Bancorp | 396,100 | 7,514,017 | |
| 29,721,527 | ||
TOTAL COMMERCIAL BANKS | 62,110,448 | ||
CONSUMER FINANCE - 0.2% | |||
Consumer Finance - 0.2% | |||
Promise Co. Ltd. (a)(c) | 25,300 | 234,306 | |
DIVERSIFIED FINANCIAL SERVICES - 17.3% | |||
Other Diversified Financial Services - 14.5% | |||
Bank of America Corp. (c) | 483,635 | 7,341,579 | |
Citigroup, Inc. | 2,262,100 | 7,510,172 | |
JPMorgan Chase & Co. | 198,048 | 7,711,990 | |
| 22,563,741 | ||
Specialized Finance - 2.8% | |||
BM&F BOVESPA SA | 10,900 | 73,264 | |
Common Stocks - continued | |||
Shares | Value | ||
DIVERSIFIED FINANCIAL SERVICES - CONTINUED | |||
Specialized Finance - continued | |||
JSE Ltd. | 20,600 | $ 152,691 | |
Moody's Corp. (c) | 146,627 | 4,045,439 | |
| 4,271,394 | ||
TOTAL DIVERSIFIED FINANCIAL SERVICES | 26,835,135 | ||
HOTELS, RESTAURANTS & LEISURE - 0.2% | |||
Casinos & Gaming - 0.2% | |||
Wynn Macau Ltd. | 252,800 | 321,049 | |
INSURANCE - 7.1% | |||
Insurance Brokers - 0.3% | |||
Aon Corp. | 10,500 | 408,450 | |
Multi-Line Insurance - 3.7% | |||
Assurant, Inc. | 26,304 | 826,735 | |
Genworth Financial, Inc. Class A (a) | 267,635 | 3,704,068 | |
Hartford Financial Services Group, Inc. | 48,600 | 1,165,914 | |
| 5,696,717 | ||
Property & Casualty Insurance - 2.0% | |||
CNA Financial Corp. (a) | 72,804 | 1,710,166 | |
XL Capital Ltd. Class A | 87,489 | 1,467,191 | |
| 3,177,357 | ||
Reinsurance - 1.1% | |||
Everest Re Group Ltd. | 19,000 | 1,629,060 | |
Transatlantic Holdings, Inc. | 2,100 | 104,349 | |
| 1,733,409 | ||
TOTAL INSURANCE | 11,015,933 | ||
INTERNET SOFTWARE & SERVICES - 0.9% | |||
Internet Software & Services - 0.9% | |||
China Finance Online Co. Ltd. ADR (a)(c) | 195,815 | 1,452,947 | |
IT SERVICES - 2.6% | |||
Data Processing & Outsourced Services - 2.5% | |||
Euronet Worldwide, Inc. (a) | 90,785 | 1,853,830 | |
MasterCard, Inc. Class A | 2,200 | 549,780 | |
MoneyGram International, Inc. (a)(c) | 471,430 | 1,414,290 | |
| 3,817,900 | ||
IT Consulting & Other Services - 0.1% | |||
Satyam Computer Services Ltd. sponsored ADR (a)(c) | 44,900 | 219,561 | |
TOTAL IT SERVICES | 4,037,461 | ||
MEDIA - 4.7% | |||
Advertising - 0.3% | |||
SearchMedia Holdings Ltd. (a) | 81,000 | 490,860 | |
| |||
Shares | Value | ||
Publishing - 4.4% | |||
McGraw-Hill Companies, Inc. | 192,249 | $ 6,815,227 | |
TOTAL MEDIA | 7,306,087 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.2% | |||
Diversified Real Estate Activities - 0.4% | |||
Mitsubishi Estate Co. Ltd. | 36,000 | 585,444 | |
Real Estate Development - 1.8% | |||
Central China Real Estate Ltd. | 2,061,000 | 499,060 | |
Xinyuan Real Estate Co. Ltd. ADR (a)(c) | 594,902 | 2,361,761 | |
| 2,860,821 | ||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 3,446,265 | ||
SPECIALTY RETAIL - 0.1% | |||
Home Improvement Retail - 0.1% | |||
Home Depot, Inc. | 6,600 | 184,866 | |
THRIFTS & MORTGAGE FINANCE - 0.6% | |||
Thrifts & Mortgage Finance - 0.6% | |||
BofI Holding, Inc. (a) | 16,300 | 193,481 | |
Cheviot Financial Corp. | 1,500 | 12,135 | |
First Financial Northwest, Inc. | 4,800 | 29,712 | |
Meridian Interstate Bancorp, Inc. (a) | 8,977 | 85,461 | |
Ocean Shore Holding Co. | 3,300 | 30,855 | |
Osage Bancshares, Inc. | 2,800 | 25,200 | |
United Western Bancorp, Inc. | 48,868 | 162,730 | |
Washington Federal, Inc. | 23,304 | 434,620 | |
| 974,194 | ||
TOTAL COMMON STOCKS (Cost $153,988,251) | 155,096,225 | ||
Convertible Preferred Stocks - 0.7% | |||
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 0.7% | |||
Other Diversified Financial Services - 0.7% | |||
Bank of America Corp. | 74,200 | 1,120,420 | |
Money Market Funds - 8.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.17% (d) | 707,981 | $ 707,981 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 13,084,748 | 13,084,748 | |
TOTAL MONEY MARKET FUNDS (Cost $13,792,729) | 13,792,729 | ||
TOTAL INVESTMENT PORTFOLIO - 109.3% (Cost $168,893,980) | 170,009,374 |
NET OTHER ASSETS - (9.3)% | (14,480,597) | ||
NET ASSETS - 100% | $ 155,528,777 | ||
Legend |
(a) Non-income producing |
(b) Includes investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 4,736 |
Fidelity Securities Lending Cash Central Fund | 38,939 |
Total | $ 43,675 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 155,096,225 | $ 146,812,465 | $ 8,283,760 | $ - |
Convertible Preferred Stocks | 1,120,420 | 1,120,420 | - | - |
Money Market Funds | 13,792,729 | 13,792,729 | - | - |
Total Investments in Securities | $ 170,009,374 | $ 161,725,614 | $ 8,283,760 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.1% |
Japan | 5.0% |
Greece | 4.1% |
United Kingdom | 2.8% |
Cayman Islands | 2.3% |
Switzerland | 2.0% |
China | 1.9% |
Bermuda | 1.0% |
Others (individually less than 1%) | 0.8% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $55,672,202 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $56,712,899 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Advisor Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,434,169) - See accompanying schedule: Unaffiliated issuers (cost $155,101,251) | $ 156,216,645 |
|
Fidelity Central Funds (cost $13,792,729) | 13,792,729 |
|
Total Investments (cost $168,893,980) |
| $ 170,009,374 |
Cash | 48,089 | |
Receivable for investments sold | 14,430,615 | |
Receivable for fund shares sold | 241,939 | |
Dividends receivable | 46,819 | |
Distributions receivable from Fidelity Central Funds | 4,831 | |
Prepaid expenses | 628 | |
Other receivables | 16,150 | |
Total assets | 184,798,445 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 15,337,904 | |
Payable for fund shares redeemed | 625,621 | |
Accrued management fee | 75,034 | |
Distribution fees payable | 67,885 | |
Other affiliated payables | 49,781 | |
Other payables and accrued expenses | 28,695 | |
Collateral on securities loaned, at value | 13,084,748 | |
Total liabilities | 29,269,668 | |
|
|
|
Net Assets | $ 155,528,777 | |
Net Assets consist of: |
| |
Paid in capital | $ 241,622,297 | |
Accumulated net investment loss | (468,452) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (86,747,598) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,122,530 | |
Net Assets | $ 155,528,777 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 10.45 | |
|
|
|
Maximum offering price per share (100/94.25 of $10.45) | $ 11.09 | |
Class T: | $ 10.44 | |
|
|
|
Maximum offering price per share (100/96.50 of $10.44) | $ 10.82 | |
Class B: | $ 10.23 | |
|
|
|
Class C: | $ 10.13 | |
|
|
|
Institutional Class: | $ 10.63 | |
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 Financial Services Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 756,881 |
Interest |
| 41 |
Income from Fidelity Central Funds |
| 43,675 |
Total income |
| 800,597 |
|
|
|
Expenses | ||
Management fee | $ 450,733 | |
Transfer agent fees | 276,311 | |
Distribution fees | 410,854 | |
Accounting and security lending fees | 32,461 | |
Custodian fees and expenses | 18,644 | |
Independent trustees' compensation | 520 | |
Registration fees | 36,600 | |
Audit | 23,877 | |
Legal | 725 | |
Miscellaneous | 1,553 | |
Total expenses before reductions | 1,252,278 | |
Expense reductions | (47,711) | 1,204,567 |
Net investment income (loss) | (403,970) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 32,421,307 | |
Foreign currency transactions | 32,855 | |
Total net realized gain (loss) |
| 32,454,162 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (16,393,071) | |
Assets and liabilities in foreign currencies | 6,853 | |
Total change in net unrealized appreciation (depreciation) |
| (16,386,218) |
Net gain (loss) | 16,067,944 | |
Net increase (decrease) in net assets resulting from operations | $ 15,663,974 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (403,970) | $ 2,607,315 |
Net realized gain (loss) | 32,454,162 | (88,858,385) |
Change in net unrealized appreciation (depreciation) | (16,386,218) | 30,047,773 |
Net increase (decrease) in net assets resulting from operations | 15,663,974 | (56,203,297) |
Distributions to shareholders from net investment income | (1,313,190) | (3,219,822) |
Distributions to shareholders from net realized gain | - | (320,528) |
Total distributions | (1,313,190) | (3,540,350) |
Share transactions - net increase (decrease) | (8,117,453) | 1,444,825 |
Redemption fees | 1,540 | 13,297 |
Total increase (decrease) in net assets | 6,234,871 | (58,285,525) |
|
|
|
Net Assets | ||
Beginning of period | 149,293,906 | 207,579,431 |
End of period (including accumulated net investment loss of $468,452 and undistributed net investment income of $1,248,708, respectively) | $ 155,528,777 | $ 149,293,906 |
See accompanying notes which are an integral part of the financial statements.
Financial Services
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 | $ 22.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | .19 | .30 | .23 | .20 | .19 |
Net realized and unrealized gain (loss) | 1.03 | (3.58) | (6.41) | .92 | 2.02 | 2.48 |
Total from investment operations | 1.02 | (3.39) | (6.11) | 1.15 | 2.22 | 2.67 |
Distributions from net investment income | (.10) | (.24) | (.27) | (.22) | (.26) | (.07) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.10) | (.26) | (1.73) | (3.47) J | (1.89) | (1.83) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.45 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 |
Total Return B, C, D | 10.67% | (25.87)% | (31.67)% | 4.54% | 10.32% | 12.60% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.29% A | 1.29% | 1.21% | 1.23% | 1.25% | 1.26% |
Expenses net of fee waivers, if any | 1.29% A | 1.29% | 1.21% | 1.23% | 1.25% | 1.26% |
Expenses net of all reductions | 1.24% A | 1.28% | 1.21% | 1.22% | 1.23% | 1.23% |
Net investment income (loss) | (.24)% A | 2.12% | 1.75% | 1.01% | .87% | .88% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 72,234 | $ 68,245 | $ 90,037 | $ 106,722 | $ 85,356 | $ 68,012 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 | $ 22.07 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | .16 | .26 | .18 | .15 | .14 |
Net realized and unrealized gain (loss) | 1.03 | (3.56) | (6.41) | .91 | 2.02 | 2.47 |
Total from investment operations | 1.00 | (3.40) | (6.15) | 1.09 | 2.17 | 2.61 |
Distributions from net investment income | (.08) | (.20) | (.19) | (.16) | (.15) | (.05) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.08) | (.22) | (1.65) | (3.41) J | (1.78) | (1.81) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.44 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 |
Total Return B, C, D | 10.53% | (26.00)% | (31.85)% | 4.25% | 10.11% | 12.37% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.55% A | 1.55% | 1.47% | 1.46% | 1.47% | 1.48% |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.47% | 1.46% | 1.47% | 1.48% |
Expenses net of all reductions | 1.49% A | 1.54% | 1.47% | 1.46% | 1.46% | 1.46% |
Net investment income (loss) | (.50)% A | 1.86% | 1.50% | .77% | .65% | .66% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 35,671 | $ 34,927 | $ 53,526 | $ 95,426 | $ 113,344 | $ 128,388 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 | $ 21.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .12 | .18 | .06 | .03 | .03 |
Net realized and unrealized gain (loss) | 1.01 | (3.50) | (6.29) | .89 | 1.97 | 2.41 |
Total from investment operations | .96 | (3.38) | (6.11) | .95 | 2.00 | 2.44 |
Distributions from net investment income | (.06) | (.12) | (.04) | (.02) | (.01) | - |
Distributions from net realized gain | - | (.02) | (1.44) | (3.25) | (1.57) | (1.76) |
Total distributions | (.06) | (.14) | (1.48) | (3.26) J | (1.58) | (1.76) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.23 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 |
Total Return B, C, D | 10.29% | (26.35)% | (32.21)% | 3.71% | 9.52% | 11.78% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.05% A | 2.04% | 1.96% | 1.98% | 1.99% | 2.00% |
Expenses net of fee waivers, if any | 2.05% A | 2.04% | 1.96% | 1.98% | 1.99% | 2.00% |
Expenses net of all reductions | 1.99% A | 2.03% | 1.96% | 1.98% | 1.98% | 1.98% |
Net investment income (loss) | (.99)% A | 1.38% | 1.01% | .25% | .13% | .14% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,211 | $ 12,477 | $ 20,420 | $ 64,837 | $ 113,652 | $ 145,046 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 | $ 21.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .12 | .17 | .06 | .04 | .04 |
Net realized and unrealized gain (loss) | .99 | (3.48) | (6.24) | .90 | 1.98 | 2.42 |
Total from investment operations | .94 | (3.36) | (6.07) | .96 | 2.02 | 2.46 |
Distributions from net investment income | (.06) | (.15) | (.09) | (.05) | (.02) | (.01) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.60) | (1.76) |
Total distributions | (.06) | (.17) | (1.55) | (3.30) J | (1.62) | (1.77) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 |
Total Return B, C, D | 10.21% | (26.38)% | (32.18)% | 3.75% | 9.58% | 11.88% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.04% A | 2.04% | 1.96% | 1.94% | 1.94% | 1.95% |
Expenses net of fee waivers, if any | 2.04% A | 2.04% | 1.96% | 1.94% | 1.94% | 1.95% |
Expenses net of all reductions | 1.98% A | 2.03% | 1.96% | 1.94% | 1.93% | 1.92% |
Net investment income (loss) | (.99)% A | 1.37% | 1.01% | .29% | .18% | .19% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 30,627 | $ 29,849 | $ 37,777 | $ 55,219 | $ 62,469 | $ 72,181 |
Portfolio turnover rate G | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 | $ 22.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | - H | .21 | .36 | .31 | .29 | .29 |
Net realized and unrealized gain (loss) | 1.05 | (3.63) | (6.51) | .93 | 2.05 | 2.50 |
Total from investment operations | 1.05 | (3.42) | (6.15) | 1.24 | 2.34 | 2.79 |
Distributions from net investment income | (.11) | (.25) | (.33) | (.30) | (.37) | (.11) |
Distributions from net realized gain | - | (.02) | (1.46) | (3.25) | (1.63) | (1.76) |
Total distributions | (.11) | (.27) | (1.79) | (3.55) I | (2.00) | (1.87) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 10.63 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 |
Total Return B, C | 10.82% | (25.68)% | (31.47)% | 4.88% | 10.78% | 13.06% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.00% A | 1.04% | .93% | .89% | .86% | .86% |
Expenses net of fee waivers, if any | 1.00% A | 1.04% | .93% | .89% | .86% | .86% |
Expenses net of all reductions | .94% A | 1.03% | .92% | .88% | .85% | .84% |
Net investment income (loss) | .05% A | 2.37% | 2.04% | 1.34% | 1.26% | 1.28% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,786 | $ 3,797 | $ 5,819 | $ 8,474 | $ 11,892 | $ 12,629 |
Portfolio turnover rate F | 267% A | 269% | 48% | 53% | 33% | 61% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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.
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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Financial Services
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 12,621,899 |
|
Gross unrealized depreciation | (16,292,914) |
|
Net unrealized appreciation (depreciation) | $ (3,671,015) |
|
|
|
|
Tax cost | $ 173,680,389 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $207,342,589 and $214,064,423, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 93,129 | $ 182 |
Class T | .25% | .25% | 93,270 | - |
Class B | .75% | .25% | 65,026 | 48,770 |
Class C | .75% | .25% | 159,429 | 29,362 |
|
|
| $ 410,854 | $ 78,314 |
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 |
Class A | $ 15,068 |
Class T | 3,584 |
Class B* | 15,424 |
Class C* | 2,913 |
| $ 36,989 |
* 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 applicable class were as follows:
| Amount | % of |
Class A | $ 127,527 | .34 |
Class T | 65,168 | .35 |
Class B | 22,365 | .34 |
Class C | 54,511 | .34 |
Institutional Class | 6,740 | .30 |
| $ 276,311 |
|
* Annualized
Financial Services
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $6,795 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $314 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $38,939.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $47,711 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 686,640 | $ 1,698,174 |
Class T | 298,090 | 781,807 |
Class B | 78,308 | 182,682 |
Class C | 206,470 | 461,265 |
Institutional Class | 43,682 | 95,894 |
Total | $ 1,313,190 | $ 3,219,822 |
From net realized gain |
|
|
Class A | $ - | $ 139,687 |
Class T | - | 80,989 |
Class B | - | 31,565 |
Class C | - | 60,568 |
Institutional Class | - | 7,719 |
Total | $ - | $ 320,528 |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 902,972 | 2,723,908 | $ 9,502,325 | $ 24,853,928 |
Reinvestment of distributions | 58,808 | 159,397 | 610,428 | 1,638,390 |
Shares redeemed | (1,213,327) | (2,556,039) | (12,701,303) | (22,026,835) |
Net increase (decrease) | (251,547) | 327,266 | $ (2,588,550) | $ 4,465,483 |
Class T |
|
|
|
|
Shares sold | 233,203 | 995,392 | $ 2,449,212 | $ 8,604,735 |
Reinvestment of distributions | 27,047 | 77,111 | 280,751 | 791,775 |
Shares redeemed | (513,643) | (1,475,806) | (5,338,720) | (12,935,480) |
Net increase (decrease) | (253,393) | (403,303) | $ (2,608,757) | $ (3,538,970) |
Class B |
|
|
|
|
Shares sold | 99,832 | 506,058 | $ 1,017,700 | $ 4,460,037 |
Reinvestment of distributions | 6,452 | 19,064 | 65,677 | 185,301 |
Shares redeemed | (250,070) | (776,048) | (2,544,446) | (6,568,493) |
Net increase (decrease) | (143,786) | (250,926) | $ (1,461,069) | $ (1,923,155) |
Class C |
|
|
|
|
Shares sold | 252,172 | 1,273,214 | $ 2,541,990 | $ 11,448,111 |
Reinvestment of distributions | 17,064 | 43,964 | 172,172 | 431,812 |
Shares redeemed | (475,254) | (1,045,476) | (4,796,939) | (8,677,353) |
Net increase (decrease) | (206,018) | 271,702 | $ (2,082,777) | $ 3,202,570 |
Institutional Class |
|
|
|
|
Shares sold | 127,332 | 270,723 | $ 1,358,113 | $ 2,262,133 |
Reinvestment of distributions | 3,007 | 6,287 | 31,721 | 65,572 |
Shares redeemed | (72,130) | (320,256) | (766,134) | (3,088,808) |
Net increase (decrease) | 58,209 | (43,246) | $ 623,700 | $ (761,103) |
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.
Financial Services
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.24% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.20 | $ 6.70 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.95 | $ 6.31 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,143.80 | $ 8.11 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,141.00 | $ 10.74 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,141.40 | $ 10.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,146.80 | $ 5.30 |
Hypothetical A |
| $ 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).
Portfolio/Sector
Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
Pfizer, Inc. | 8.1 | 7.6 |
Covidien PLC | 5.7 | 5.5 |
Medco Health Solutions, Inc. | 5.1 | 5.1 |
Express Scripts, Inc. | 4.3 | 4.0 |
Merck & Co., Inc. | 4.0 | 4.7 |
Illumina, Inc. | 3.7 | 3.0 |
Allergan, Inc. | 3.6 | 5.3 |
C. R. Bard, Inc. | 3.2 | 2.6 |
Biogen Idec, Inc. | 3.2 | 2.2 |
WellPoint, Inc. | 2.9 | 0.8 |
| 43.8 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Health Care | 23.8% |
|
| Pharmaceuticals | 23.7% |
|
| Health Care | 20.1% |
|
| Biotechnology | 14.4% |
|
| Life Sciences | 10.2% |
|
| All Others* | 7.8% |
|
As of July 31, 2009 | |||
| Pharmaceuticals | 25.4% |
|
| Health Care | 23.3% |
|
| Health Care | 21.3% |
|
| Biotechnology | 14.4% |
|
| Life Sciences | 10.7% |
|
| All Others* | 4.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Health Care Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 14.4% | |||
Biotechnology - 14.4% | |||
Acorda Therapeutics, Inc. (a) | 71,200 | $ 1,992,176 | |
Affymax, Inc. (a) | 37,500 | 787,500 | |
Alexion Pharmaceuticals, Inc. (a) | 76,498 | 3,547,212 | |
Alnylam Pharmaceuticals, Inc. (a)(c) | 52,137 | 881,115 | |
Amgen, Inc. (a) | 151,812 | 8,877,966 | |
Biogen Idec, Inc. (a) | 250,379 | 13,455,367 | |
BioMarin Pharmaceutical, Inc. (a) | 250,767 | 4,872,403 | |
Cephalon, Inc. (a) | 12,900 | 823,536 | |
Dendreon Corp. (a)(c) | 38,700 | 1,071,990 | |
Genzyme Corp. (a) | 25,300 | 1,372,778 | |
Gilead Sciences, Inc. (a) | 50,811 | 2,452,647 | |
Human Genome Sciences, Inc. (a) | 47,500 | 1,257,325 | |
Incyte Corp. (a)(c) | 313,001 | 3,342,851 | |
Micromet, Inc. (a) | 53,400 | 414,918 | |
Myriad Genetics, Inc. (a) | 82,846 | 1,946,881 | |
OSI Pharmaceuticals, Inc. (a) | 58,500 | 2,001,870 | |
PDL BioPharma, Inc. | 309,400 | 1,980,160 | |
Protalix BioTherapeutics, Inc. (a)(c) | 165,724 | 1,135,209 | |
Targacept, Inc. (a) | 70,898 | 1,485,313 | |
Theravance, Inc. (a) | 56,513 | 619,948 | |
United Therapeutics Corp. (a) | 94,400 | 5,623,408 | |
| 59,942,573 | ||
CHEMICALS - 1.1% | |||
Fertilizers & Agricultural Chemicals - 1.1% | |||
Monsanto Co. | 58,400 | 4,431,392 | |
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Carriage Services, Inc. (a) | 252,255 | 971,182 | |
Stewart Enterprises, Inc. Class A | 186,543 | 945,773 | |
| 1,916,955 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 1.7% | |||
Electronic Equipment & Instruments - 1.7% | |||
Agilent Technologies, Inc. | 250,400 | 7,018,712 | |
FOOD & STAPLES RETAILING - 1.5% | |||
Drug Retail - 1.5% | |||
Walgreen Co. | 175,308 | 6,319,853 | |
HEALTH CARE EQUIPMENT & SUPPLIES - 20.1% | |||
Health Care Equipment - 17.6% | |||
Abiomed, Inc. (a) | 35,909 | 284,399 | |
ArthroCare Corp. (a) | 72,900 | 1,942,785 | |
Baxter International, Inc. | 62,946 | 3,625,060 | |
C. R. Bard, Inc. | 162,765 | 13,491,591 | |
CareFusion Corp. (a) | 103,200 | 2,657,400 | |
Conceptus, Inc. (a) | 94,879 | 1,841,601 | |
Covidien PLC | 470,345 | 23,780,643 | |
Edwards Lifesciences Corp. (a) | 78,568 | 7,041,264 | |
ev3, Inc. (a) | 178,283 | 2,599,366 | |
HeartWare International, Inc. (a) | 27,784 | 1,073,852 | |
| |||
Shares | Value | ||
HeartWare International, Inc. CDI unit (a) | 668,258 | $ 697,270 | |
Micrus Endovascular Corp. (a) | 163,273 | 2,739,721 | |
Nobel Biocare Holding AG (Switzerland) | 98,697 | 2,902,931 | |
NuVasive, Inc. (a)(c) | 69,300 | 1,912,680 | |
Orthofix International NV (a) | 47,417 | 1,428,674 | |
Orthovita, Inc. (a) | 438,153 | 1,594,877 | |
Osmetech PLC (a) | 13,820,627 | 445,320 | |
William Demant Holding AS (a) | 15,123 | 1,180,199 | |
Wright Medical Group, Inc. (a) | 114,571 | 2,048,529 | |
| 73,288,162 | ||
Health Care Supplies - 2.5% | |||
AGA Medical Holdings, Inc. | 46,700 | 669,211 | |
Cooper Companies, Inc. (c) | 90,911 | 3,210,977 | |
InfuSystems Holdings, Inc. (a) | 344,700 | 861,750 | |
InfuSystems Holdings, Inc. warrants 4/11/11 (a) | 41,900 | 2,933 | |
Inverness Medical Innovations, Inc. (a)(c) | 116,978 | 4,722,402 | |
RTI Biologics, Inc. (a) | 234,676 | 741,576 | |
| 10,208,849 | ||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 83,497,011 | ||
HEALTH CARE PROVIDERS & SERVICES - 23.8% | |||
Health Care Distributors & Services - 2.2% | |||
Henry Schein, Inc. (a) | 120,903 | 6,534,807 | |
Profarma Distribuidora de Produtos Farmaceuticos SA | 156,400 | 1,481,029 | |
Sinopharm Group Co. Ltd. Class H | 234,400 | 884,591 | |
| 8,900,427 | ||
Health Care Facilities - 2.4% | |||
Community Health Systems, Inc. (a) | 74,800 | 2,439,976 | |
Emeritus Corp. (a)(c) | 88,371 | 1,608,352 | |
Hanger Orthopedic Group, Inc. (a) | 155,165 | 2,522,983 | |
Sunrise Senior Living, Inc. (a) | 245,575 | 729,358 | |
Universal Health Services, Inc. Class B | 91,418 | 2,665,749 | |
| 9,966,418 | ||
Health Care Services - 10.5% | |||
Clarient, Inc. (a) | 241,600 | 546,016 | |
Emergency Medical Services Corp. | 18,700 | 981,937 | |
Express Scripts, Inc. (a) | 212,843 | 17,849,014 | |
Health Grades, Inc. (a) | 253,898 | 1,101,917 | |
LHC Group, Inc. (a) | 43,300 | 1,333,207 | |
Medco Health Solutions, Inc. (a) | 343,019 | 21,088,808 | |
RehabCare Group, Inc. (a) | 28,800 | 836,928 | |
| 43,737,827 | ||
Managed Health Care - 8.7% | |||
Aetna, Inc. | 175,300 | 5,253,741 | |
CIGNA Corp. | 262,900 | 8,878,133 | |
Health Net, Inc. (a) | 109,447 | 2,655,184 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - CONTINUED | |||
Managed Health Care - continued | |||
UnitedHealth Group, Inc. | 227,300 | $ 7,500,900 | |
WellPoint, Inc. (a) | 189,200 | 12,055,824 | |
| 36,343,782 | ||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 98,948,454 | ||
HEALTH CARE TECHNOLOGY - 2.1% | |||
Health Care Technology - 2.1% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 154,127 | 2,536,930 | |
Cerner Corp. (a) | 66,027 | 4,994,943 | |
Computer Programs & Systems, Inc. | 27,421 | 1,031,852 | |
| 8,563,725 | ||
INTERNET SOFTWARE & SERVICES - 0.4% | |||
Internet Software & Services - 0.4% | |||
WebMD Health Corp. (a) | 42,857 | 1,670,566 | |
LIFE SCIENCES TOOLS & SERVICES - 10.2% | |||
Life Sciences Tools & Services - 10.2% | |||
Covance, Inc. (a) | 131,900 | 7,664,709 | |
ICON PLC sponsored ADR (a) | 101,900 | 2,531,196 | |
Illumina, Inc. (a)(c) | 420,584 | 15,431,227 | |
Life Technologies Corp. (a) | 82,719 | 4,111,961 | |
PAREXEL International Corp. (a) | 125,782 | 2,432,624 | |
PerkinElmer, Inc. | 127,000 | 2,557,780 | |
QIAGEN NV (a)(c) | 364,571 | 7,933,065 | |
| 42,662,562 | ||
PHARMACEUTICALS - 23.7% | |||
Pharmaceuticals - 23.7% | |||
Abbott Laboratories | 126,763 | 6,710,833 | |
Allergan, Inc. | 261,763 | 15,051,373 | |
Ardea Biosciences, Inc. (a) | 101,150 | 1,480,836 | |
Auxilium Pharmaceuticals, Inc. (a) | 21,400 | 602,624 | |
Cadence Pharmaceuticals, Inc. (a)(c) | 142,086 | 1,415,177 | |
Hikma Pharmaceuticals PLC | 105,757 | 923,339 | |
| |||
Shares | Value | ||
King Pharmaceuticals, Inc. (a) | 428,400 | $ 5,145,084 | |
Merck & Co., Inc. | 430,751 | 16,446,073 | |
Optimer Pharmaceuticals, Inc. (a)(c) | 78,527 | 967,453 | |
Pfizer, Inc. | 1,810,251 | 33,779,285 | |
Piramal Healthcare Ltd. | 76,277 | 605,255 | |
Pronova BioPharma ASA (a)(c) | 352,800 | 1,038,058 | |
Shire PLC sponsored ADR | 115,200 | 6,865,920 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 86,382 | 4,899,587 | |
ViroPharma, Inc. (a) | 278,004 | 2,746,680 | |
| 98,677,577 | ||
TOTAL COMMON STOCKS (Cost $351,713,587) | 413,649,380 | ||
Money Market Funds - 6.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 349,771 | 349,771 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 27,353,640 | 27,353,640 | |
TOTAL MONEY MARKET FUNDS (Cost $27,703,411) | 27,703,411 | ||
TOTAL INVESTMENT PORTFOLIO - 106.1% (Cost $379,416,998) | 441,352,791 | ||
NET OTHER ASSETS - (6.1)% | (25,468,381) | ||
NET ASSETS - 100% | $ 415,884,410 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 3,353 |
Fidelity Securities Lending Cash Central Fund | 16,747 |
Total | $ 20,100 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 413,649,380 | $ 407,159,533 | $ 6,489,847 | $ - |
Money Market Funds | 27,703,411 | 27,703,411 | - | - |
Total Investments in Securities | $ 441,352,791 | $ 434,862,944 | $ 6,489,847 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 86.6% |
Ireland | 6.3% |
Netherlands | 1.9% |
Bailiwick of Jersey | 1.7% |
Israel | 1.2% |
Others (individually less than 1%) | 2.3% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $30,833,729 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $34,215,799 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $26,588,334) - See accompanying schedule: Unaffiliated issuers (cost $351,713,587) | $ 413,649,380 |
|
Fidelity Central Funds (cost $27,703,411) | 27,703,411 |
|
Total Investments (cost $379,416,998) |
| $ 441,352,791 |
Receivable for investments sold | 12,118,196 | |
Receivable for fund shares sold | 316,408 | |
Dividends receivable | 210,309 | |
Distributions receivable from Fidelity Central Funds | 3,372 | |
Prepaid expenses | 1,556 | |
Other receivables | 44,674 | |
Total assets | 454,047,306 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 325,655 | |
Payable for investments purchased | 9,059,541 | |
Payable for fund shares redeemed | 897,280 | |
Accrued management fee | 198,090 | |
Distribution fees payable | 171,298 | |
Other affiliated payables | 128,300 | |
Other payables and accrued expenses | 29,092 | |
Collateral on securities loaned, at value | 27,353,640 | |
Total liabilities | 38,162,896 | |
|
|
|
Net Assets | $ 415,884,410 | |
Net Assets consist of: |
| |
Paid in capital | $ 402,609,737 | |
Accumulated net investment loss | (1,302,047) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,354,505) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 61,931,225 | |
Net Assets | $ 415,884,410 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 19.64 | |
|
|
|
Maximum offering price per share (100/94.25 of $19.64) | $ 20.84 | |
Class T: | $ 19.09 | |
|
|
|
Maximum offering price per share (100/96.50 of $19.09) | $ 19.78 | |
Class B: | $ 17.96 | |
|
|
|
Class C: | $ 17.92 | |
|
|
|
Institutional Class: | $ 20.39 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,564,950 |
Interest |
| 27,273 |
Income from Fidelity Central Funds |
| 20,100 |
Total income |
| 1,612,323 |
|
|
|
Expenses | ||
Management fee | $ 1,135,080 | |
Transfer agent fees | 686,834 | |
Distribution fees | 985,763 | |
Accounting and security lending fees | 80,722 | |
Custodian fees and expenses | 22,112 | |
Independent trustees' compensation | 1,272 | |
Registration fees | 38,344 | |
Audit | 29,422 | |
Legal | 2,218 | |
Miscellaneous | 3,909 | |
Total expenses before reductions | 2,985,676 | |
Expense reductions | (27,484) | 2,958,192 |
Net investment income (loss) | (1,345,869) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 26,621,107 | |
Foreign currency transactions | 9,557 | |
Total net realized gain (loss) |
| 26,630,664 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 28,675,873 | |
Assets and liabilities in foreign currencies | 1,672 | |
Total change in net unrealized appreciation (depreciation) |
| 28,677,545 |
Net gain (loss) | 55,308,209 | |
Net increase (decrease) in net assets resulting from operations | $ 53,962,340 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,345,869) | $ (546,482) |
Net realized gain (loss) | 26,630,664 | (71,981,218) |
Change in net unrealized appreciation (depreciation) | 28,677,545 | 3,789,678 |
Net increase (decrease) in net assets resulting from operations | 53,962,340 | (68,738,022) |
Distributions to shareholders from net realized gain | - | (9,966,416) |
Share transactions - net increase (decrease) | (26,577,287) | (54,481,101) |
Redemption fees | 2,447 | 10,268 |
Total increase (decrease) in net assets | 27,387,500 | (133,175,271) |
|
|
|
Net Assets | ||
Beginning of period | 388,496,910 | 521,672,181 |
End of period (including accumulated net investment loss of $1,302,047 and undistributed net investment income of $43,822, respectively) | $ 415,884,410 | $ 388,496,910 |
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Class A
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 | $ 18.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | .02 | (.03) | (.03) | (.09) | (.05) |
Net realized and unrealized gain (loss) | 2.53 | (2.22) | (1.08) | 1.91 | .96 | 4.08 |
Total from investment operations | 2.49 | (2.20) | (1.11) | 1.88 | .87 | 4.03 |
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 | $ 19.64 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 |
Total Return B,C,D | 14.52% | (11.37)% | (5.64)% | 8.54% | 3.79% | 21.31% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.24% A | 1.23% | 1.20% | 1.22% | 1.25% | 1.28% |
Expenses net of fee waivers, if any | 1.24% A | 1.23% | 1.20% | 1.22% | 1.25% | 1.28% |
Expenses net of all reductions | 1.23% A | 1.23% | 1.19% | 1.21% | 1.21% | 1.26% |
Net investment income (loss) | (.43)% A | .11% | (.13)% | (.14)% | (.38)% | (.22)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 191,250 | $ 177,890 | $ 220,888 | $ 234,656 | $ 199,221 | $ 139,158 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 | $ 18.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.02) | (.08) | (.09) | (.15) | (.09) |
Net realized and unrealized gain (loss) | 2.46 | (2.18) | (1.06) | 1.87 | .95 | 3.99 |
Total from investment operations | 2.40 | (2.20) | (1.14) | 1.78 | .80 | 3.90 |
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 | $ 19.09 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 |
Total Return B,C,D | 14.38% | (11.65)% | (5.86)% | 8.25% | 3.55% | 20.97% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.50% A | 1.49% | 1.46% | 1.48% | 1.50% | 1.53% |
Expenses net of fee waivers, if any | 1.50% A | 1.49% | 1.46% | 1.48% | 1.50% | 1.53% |
Expenses net of all reductions | 1.48% A | 1.49% | 1.45% | 1.47% | 1.47% | 1.51% |
Net investment income (loss) | (.69)% A | (.15)% | (.40)% | (.40)% | (.63)% | (.47)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 113,742 | $ 103,772 | $ 143,237 | $ 186,628 | $ 218,280 | $ 243,353 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 | $ 17.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) | (.09) | (.18) | (.20) | (.25) | (.19) |
Net realized and unrealized gain (loss) | 2.32 | (2.07) | (.99) | 1.79 | .91 | 3.83 |
Total from investment operations | 2.22 | (2.16) | (1.17) | 1.59 | .66 | 3.64 |
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 | $ 17.96 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 |
Total Return B,C,D | 14.10% | (12.07)% | (6.30)% | 7.66% | 3.06% | 20.32% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.95% | 1.99% | 2.01% | 2.04% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.95% | 1.99% | 2.01% | 2.04% |
Expenses net of all reductions | 1.98% A | 1.98% | 1.94% | 1.98% | 1.98% | 2.01% |
Net investment income (loss) | (1.18)% A | (.64)% | (.89)% | (.91)% | (1.14)% | (.98)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29,181 | $ 29,381 | $ 55,589 | $ 113,384 | $ 180,364 | $ 266,319 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 | $ 17.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) | (.09) | (.17) | (.19) | (.24) | (.17) |
Net realized and unrealized gain (loss) | 2.32 | (2.07) | (1.00) | 1.79 | .91 | 3.84 |
Total from investment operations | 2.22 | (2.16) | (1.17) | 1.60 | .67 | 3.67 |
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 | $ 17.92 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 |
Total Return B,C,D | 14.14% | (12.09)% | (6.31)% | 7.75% | 3.10% | 20.46% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions | 1.96% A | 1.98% | 1.94% | 1.94% | 1.94% | 1.97% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 1.94% | 1.94% | 1.94% | 1.97% |
Expenses net of all reductions | 1.94% A | 1.98% | 1.94% | 1.93% | 1.91% | 1.94% |
Net investment income (loss) | (1.15)% A | (.64)% | (.88)% | (.86)% | (1.07)% | (.91)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 66,811 | $ 64,002 | $ 83,133 | $ 105,519 | $ 115,644 | $ 131,277 |
Portfolio turnover rate G | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Health Care
Financial Highlights - Institutional Class
| Six months ended January 31, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 | $ 19.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.02) | .06 | .03 | .05 | - H | .04 |
Net realized and unrealized gain (loss) | 2.63 | (2.30) | (1.12) | 1.96 | .99 | 4.16 |
Total from investment operations | 2.61 | (2.24) | (1.09) | 2.01 | .99 | 4.20 |
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 | $ 20.39 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 |
Total Return B,C | 14.68% | (11.19)% | (5.36)% | 8.90% | 4.21% | 21.78% |
Ratios to Average Net Assets E,G |
|
|
|
|
|
|
Expenses before reductions | .98% A | .98% | .93% | .88% | .86% | .88% |
Expenses net of fee waivers, if any | .98% A | .98% | .93% | .88% | .86% | .88% |
Expenses net of all reductions | .96% A | .98% | .92% | .87% | .83% | .85% |
Net investment income (loss) | (.17)% A | .36% | .14% | .19% | .01% | .18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,900 | $ 13,452 | $ 18,825 | $ 22,174 | $ 20,652 | $ 19,698 |
Portfolio turnover rate F | 98% A | 172% | 134% | 141% | 99% | 71% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Health Care
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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, market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 68,942,062 |
|
Gross unrealized depreciation | (11,150,282) |
|
Net unrealized appreciation (depreciation) | $ 57,791,780 |
|
|
|
|
Tax cost | $ 383,561,011 |
|
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $194,269,334 and $219,824,627, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 233,412 | $ - |
Class T | .25% | .25% | 273,228 | - |
Class B | .75% | .25% | 149,305 | 111,979 |
Class C | .75% | .25% | 329,818 | 11,017 |
|
|
| $ 985,763 | $ 122,996 |
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 |
Class A | $ 13,537 |
Class T | 6,400 |
Class B* | 16,044 |
Class C* | 657 |
| $ 36,638 |
* 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 |
Class A | $ 320,635 | .34 |
Class T | 190,484 | .35 |
Class B | 51,411 | .34 |
Class C | 100,936 | .31 |
Institutional Class | 23,368 | .33 |
| $ 686,834 |
|
* 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 $1,287 for the period.
Health Care
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $796 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $16,747.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $27,484 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain |
|
|
Class A | $ - | $ 4,165,896 |
Class T | - | 2,716,500 |
Class B | - | 1,072,948 |
Class C | - | 1,667,891 |
Institutional Class | - | 343,181 |
Total | $ - | $ 9,966,416 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 675,723 | 2,119,806 | $ 12,724,193 | $ 33,600,941 |
Reinvestment of distributions | - | 190,190 | - | 3,682,080 |
Shares redeemed | (1,310,014) | (3,135,479) | (24,434,895) | (48,422,714) |
Net increase (decrease) | (634,291) | (825,483) | $ (11,710,702) | $ (11,139,693) |
Class T |
|
|
|
|
Shares sold | 368,741 | 602,296 | $ 6,951,711 | $ 9,206,132 |
Reinvestment of distributions | - | 135,003 | - | 2,550,205 |
Shares redeemed | (627,411) | (1,958,228) | (11,383,654) | (29,483,941) |
Net increase (decrease) | (258,670) | (1,220,929) | $ (4,431,943) | $ (17,727,604) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class B |
|
|
|
|
Shares sold | 69,694 | 212,561 | $ 1,201,524 | $ 3,135,162 |
Reinvestment of distributions | - | 53,957 | - | 965,289 |
Shares redeemed | (311,238) | (1,442,718) | (5,336,487) | (20,918,367) |
Net increase (decrease) | (241,544) | (1,176,200) | $ (4,134,963) | $ (16,817,916) |
Class C |
|
|
|
|
Shares sold | 131,201 | 511,934 | $ 2,270,942 | $ 7,440,670 |
Reinvestment of distributions | - | 74,490 | - | 1,329,646 |
Shares redeemed | (478,247) | (1,071,755) | (8,111,130) | (15,223,014) |
Net increase (decrease) | (347,046) | (485,331) | $ (5,840,188) | $ (6,452,698) |
Institutional Class |
|
|
|
|
Shares sold | 73,028 | 260,510 | $ 1,432,423 | $ 4,409,032 |
Reinvestment of distributions | - | 12,578 | - | 251,944 |
Shares redeemed | (98,750) | (439,916) | (1,891,914) | (7,004,166) |
Net increase (decrease) | (25,722) | (166,828) | $ (459,491) | $ (2,343,190) |
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.
Health Care
Advisor Industrials Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Ending | Expenses Paid |
Class A | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.00 | $ 6.45 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.47% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,130.60 | $ 7.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.80 | $ 7.48 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,127.70 | $ 10.73 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,128.00 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,133.60 | $ 4.89 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.62 | $ 4.63 |
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 Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
United Technologies Corp. | 6.7 | 5.6 |
General Electric Co. | 6.1 | 4.4 |
3M Co. | 4.6 | 3.1 |
Union Pacific Corp. | 4.4 | 5.0 |
Honeywell International, Inc. | 3.5 | 4.6 |
Cummins, Inc. | 3.2 | 3.2 |
Danaher Corp. | 3.2 | 3.1 |
Ingersoll-Rand Co. Ltd. | 3.0 | 2.6 |
Raytheon Co. | 2.5 | 2.0 |
Lockheed Martin Corp. | 2.3 | 2.8 |
| 39.5 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Machinery | 22.8% |
|
| Aerospace & Defense | 20.8% |
|
| Industrial Conglomerates | 13.7% |
|
| Road & Rail | 12.2% |
|
| Electrical Equipment | 5.7% |
|
| All Others* | 24.8% |
|
As of July 31, 2009 | |||
| Aerospace & Defense | 19.0% |
|
| Machinery | 18.5% |
|
| Road & Rail | 14.0% |
|
| Industrial Conglomerates | 10.3% |
|
| Electrical Equipment | 8.8% |
|
| All Others* | 29.4% |
|
* Includes short-term investments and net other assets. |
Industrials
Advisor Industrials Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
AEROSPACE & DEFENSE - 20.8% | |||
Aerospace & Defense - 20.8% | |||
BE Aerospace, Inc. (a) | 78,599 | $ 1,762,976 | |
Honeywell International, Inc. | 261,800 | 10,115,952 | |
Lockheed Martin Corp. | 90,500 | 6,744,060 | |
Precision Castparts Corp. | 61,500 | 6,472,875 | |
Raytheon Co. | 135,000 | 7,078,050 | |
Spirit AeroSystems Holdings, Inc. Class A (a) | 105,300 | 2,258,685 | |
The Boeing Co. | 102,400 | 6,205,440 | |
United Technologies Corp. | 283,600 | 19,137,328 | |
| 59,775,366 | ||
AUTO COMPONENTS - 2.7% | |||
Auto Parts & Equipment - 1.9% | |||
BorgWarner, Inc. | 61,300 | 2,151,017 | |
Johnson Controls, Inc. | 103,400 | 2,877,622 | |
Stoneridge, Inc. (a) | 68,714 | 479,624 | |
| 5,508,263 | ||
Tires & Rubber - 0.8% | |||
The Goodyear Tire & Rubber Co. (a) | 164,600 | 2,195,764 | |
TOTAL AUTO COMPONENTS | 7,704,027 | ||
BEVERAGES - 0.2% | |||
Soft Drinks - 0.2% | |||
Heckmann Corp. (a) | 146,000 | 711,020 | |
BUILDING PRODUCTS - 4.5% | |||
Building Products - 4.5% | |||
AAON, Inc. | 53,000 | 1,091,270 | |
Armstrong World Industries, Inc. (a) | 44,875 | 1,634,796 | |
Lennox International, Inc. | 30,296 | 1,157,913 | |
Masco Corp. | 465,800 | 6,316,248 | |
Owens Corning (a) | 109,661 | 2,821,578 | |
| 13,021,805 | ||
COMMERCIAL SERVICES & SUPPLIES - 4.2% | |||
Commercial Printing - 0.5% | |||
R.R. Donnelley & Sons Co. | 69,800 | 1,383,436 | |
Diversified Support Services - 0.7% | |||
Cintas Corp. | 82,600 | 2,074,086 | |
Environmental & Facility Services - 1.9% | |||
Casella Waste Systems, Inc. Class A (a) | 268,122 | 1,166,331 | |
Republic Services, Inc. | 136,660 | 3,661,121 | |
RINO International Corp. (a)(c) | 27,200 | 548,080 | |
| 5,375,532 | ||
Office Services & Supplies - 0.6% | |||
United Stationers, Inc. (a) | 29,000 | 1,582,240 | |
Security & Alarm Services - 0.5% | |||
The Brink's Co. | 66,100 | 1,545,418 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 11,960,712 | ||
| |||
Shares | Value | ||
CONSTRUCTION & ENGINEERING - 3.2% | |||
Construction & Engineering - 3.2% | |||
AECOM Technology Corp. (a) | 37,701 | $ 1,016,796 | |
Fluor Corp. | 86,100 | 3,903,774 | |
Jacobs Engineering Group, Inc. (a) | 84,800 | 3,204,592 | |
MasTec, Inc. (a) | 88,700 | 1,090,123 | |
| 9,215,285 | ||
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Brinks Home Security Holdings, Inc. (a) | 35,660 | 1,462,060 | |
ELECTRICAL EQUIPMENT - 5.7% | |||
Electrical Components & Equipment - 5.7% | |||
Acuity Brands, Inc. (c) | 77,642 | 2,778,031 | |
AMETEK, Inc. | 93,200 | 3,396,208 | |
Cooper Industries PLC Class A | 89,100 | 3,822,390 | |
Fushi Copperweld, Inc. (a) | 99,300 | 915,546 | |
General Cable Corp. (a) | 59,100 | 1,719,810 | |
Regal-Beloit Corp. | 66,504 | 3,152,290 | |
Zumtobel AG (a) | 33,926 | 725,765 | |
| 16,510,040 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 1.5% | |||
Electronic Equipment & Instruments - 0.5% | |||
Agilent Technologies, Inc. | 50,800 | 1,423,924 | |
Electronic Manufacturing Services - 0.5% | |||
Tyco Electronics Ltd. | 59,100 | 1,470,408 | |
Technology Distributors - 0.5% | |||
Anixter International, Inc. (a) | 32,758 | 1,365,353 | |
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 4,259,685 | ||
HOUSEHOLD DURABLES - 1.9% | |||
Homebuilding - 0.4% | |||
PDG Realty S.A. Empreendimentos e Participacoes | 136,400 | 1,076,004 | |
Household Appliances - 1.5% | |||
Black & Decker Corp. | 69,300 | 4,480,938 | |
TOTAL HOUSEHOLD DURABLES | 5,556,942 | ||
INDUSTRIAL CONGLOMERATES - 13.7% | |||
Industrial Conglomerates - 13.7% | |||
3M Co. | 163,500 | 13,160,115 | |
Carlisle Companies, Inc. | 52,457 | 1,758,359 | |
General Electric Co. | 1,101,429 | 17,710,978 | |
Koninklijke Philips Electronics NV | 26,100 | 788,143 | |
Textron, Inc. | 172,200 | 3,363,066 | |
Tyco International Ltd. | 77,125 | 2,732,539 | |
| 39,513,200 | ||
MACHINERY - 22.8% | |||
Construction & Farm Machinery & Heavy Trucks - 12.1% | |||
Bucyrus International, Inc. Class A | 55,000 | 2,880,900 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - CONTINUED | |||
Construction & Farm Machinery & Heavy Trucks - continued | |||
Caterpillar, Inc. | 52,900 | $ 2,763,496 | |
Cummins, Inc. | 206,191 | 9,311,586 | |
Deere & Co. | 133,900 | 6,688,305 | |
Joy Global, Inc. | 39,900 | 1,825,026 | |
Navistar International Corp. (a) | 120,388 | 4,453,152 | |
Oshkosh Co. | 33,926 | 1,223,711 | |
PACCAR, Inc. | 141,600 | 5,101,848 | |
Sany Heavy Equipment International Holdings Co. Ltd. | 646,000 | 669,801 | |
| 34,917,825 | ||
Industrial Machinery - 10.7% | |||
Actuant Corp. Class A | 43,900 | 736,203 | |
Altra Holdings, Inc. (a) | 106,408 | 1,172,616 | |
Barnes Group, Inc. | 69,960 | 1,122,158 | |
Blount International, Inc. (a) | 54,661 | 608,924 | |
Danaher Corp. | 128,600 | 9,175,610 | |
Ingersoll-Rand Co. Ltd. | 266,300 | 8,644,098 | |
Kennametal, Inc. | 72,900 | 1,784,592 | |
NSK Ltd. | 133,000 | 967,996 | |
SPX Corp. | 26,300 | 1,431,772 | |
The Weir Group PLC | 23,700 | 291,647 | |
Timken Co. | 99,462 | 2,228,943 | |
TriMas Corp. (a) | 194,139 | 1,149,303 | |
Weg SA | 134,600 | 1,288,875 | |
| 30,602,737 | ||
TOTAL MACHINERY | 65,520,562 | ||
MARINE - 0.3% | |||
Marine - 0.3% | |||
Ultrapetrol (Bahamas) Ltd. (a) | 175,033 | 812,153 | |
PROFESSIONAL SERVICES - 2.0% | |||
Human Resource & Employment Services - 0.8% | |||
Manpower, Inc. | 43,700 | 2,263,223 | |
Research & Consulting Services - 1.2% | |||
Equifax, Inc. | 81,007 | 2,592,224 | |
ICF International, Inc. (a) | 38,881 | 910,204 | |
| 3,502,428 | ||
TOTAL PROFESSIONAL SERVICES | 5,765,651 | ||
ROAD & RAIL - 12.2% | |||
Railroads - 9.2% | |||
America Latina Logistica SA unit | 150,200 | 1,192,835 | |
CSX Corp. | 124,600 | 5,340,356 | |
| |||
Shares | Value | ||
Genesee & Wyoming, Inc. Class A (a) | 26,600 | $ 783,902 | |
Kansas City Southern (a) | 54,600 | 1,621,620 | |
Norfolk Southern Corp. | 106,810 | 5,026,479 | |
Union Pacific Corp. | 208,900 | 12,638,450 | |
| 26,603,642 | ||
Trucking - 3.0% | |||
Arkansas Best Corp. | 51,100 | 1,151,794 | |
Avis Budget Group, Inc. (a)(c) | 343,676 | 3,718,574 | |
Con-way, Inc. | 26,500 | 758,430 | |
Hertz Global Holdings, Inc. (a)(c) | 174,100 | 1,803,676 | |
Saia, Inc. (a) | 92,316 | 1,107,792 | |
| 8,540,266 | ||
TOTAL ROAD & RAIL | 35,143,908 | ||
TRADING COMPANIES & DISTRIBUTORS - 2.8% | |||
Trading Companies & Distributors - 2.8% | |||
Interline Brands, Inc. (a) | 167,073 | 2,806,826 | |
Rush Enterprises, Inc. Class A (a) | 453,657 | 5,153,544 | |
| 7,960,370 | ||
TOTAL COMMON STOCKS (Cost $276,260,851) | 284,892,786 | ||
Money Market Funds - 3.1% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 2,893,607 | 2,893,607 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 5,873,275 | 5,873,275 | |
TOTAL MONEY MARKET FUNDS (Cost $8,766,882) | 8,766,882 | ||
TOTAL INVESTMENT PORTFOLIO - 102.1% (Cost $285,027,733) | 293,659,668 | |
NET OTHER ASSETS - (2.1)% | (5,940,956) | |
NET ASSETS - 100% | $ 287,718,712 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 5,298 |
Fidelity Securities Lending Cash Central Fund | 22,750 |
Total | $ 28,048 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 284,892,786 | $ 283,087,231 | $ 1,805,555 | $ - |
Money Market Funds | 8,766,882 | 8,766,882 | - | - |
Total Investments in Securities: | $ 293,659,668 | $ 291,854,113 | $ 1,805,555 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $29,658,388 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $69,957,535 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Industrials Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,618,149) - See accompanying schedule: Unaffiliated issuers (cost $276,260,851) | $ 284,892,786 |
|
Fidelity Central Funds (cost $8,766,882) | 8,766,882 |
|
Total Investments (cost $285,027,733) |
| $ 293,659,668 |
Receivable for investments sold | 7,497,982 | |
Receivable for fund shares sold | 759,341 | |
Dividends receivable | 133,021 | |
Distributions receivable from Fidelity Central Funds | 4,936 | |
Prepaid expenses | 1,046 | |
Other receivables | 6,529 | |
Total assets | 302,062,523 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 7,657,582 | |
Payable for fund shares redeemed | 444,212 | |
Accrued management fee | 142,289 | |
Distribution fees payable | 119,785 | |
Other affiliated payables | 80,366 | |
Other payables and accrued expenses | 26,302 | |
Collateral on securities loaned, at value | 5,873,275 | |
Total liabilities | 14,343,811 | |
|
|
|
Net Assets | $ 287,718,712 | |
Net Assets consist of: |
| |
Paid in capital | $ 357,633,337 | |
Distributions in excess of net investment income | (291,793) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (78,255,041) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 8,632,209 | |
Net Assets | $ 287,718,712 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 19.03 | |
|
|
|
Maximum offering price per share (100/94.25 of $19.03) | $ 20.19 | |
Class T: | $ 18.79 | |
|
|
|
Maximum offering price per share (100/96.50 of $18.79) | $ 19.47 | |
Class B: | $ 17.93 | |
|
|
|
Class C: | $ 17.98 | |
|
|
|
Institutional Class: | $ 19.67 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,046,433 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 28,048 |
Total income |
| 2,074,483 |
|
|
|
Expenses | ||
Management fee | $ 795,307 | |
Transfer agent fees | 422,395 | |
Distribution fees | 668,958 | |
Accounting and security lending fees | 55,992 | |
Custodian fees and expenses | 10,974 | |
Independent trustees' compensation | 826 | |
Registration fees | 41,705 | |
Audit | 27,728 | |
Legal | 953 | |
Miscellaneous | 2,656 | |
Total expenses before reductions | 2,027,494 | |
Expense reductions | (9,800) | 2,017,694 |
Net investment income (loss) | 56,789 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 29,288,947 | |
Foreign currency transactions | (66,825) | |
Total net realized gain (loss) |
| 29,222,122 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,501,290 | |
Assets and liabilities in foreign currencies | 2,219 | |
Total change in net unrealized appreciation (depreciation) |
| 3,503,509 |
Net gain (loss) | 32,725,631 | |
Net increase (decrease) in net assets resulting from operations | $ 32,782,420 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 56,789 | $ 1,715,553 |
Net realized gain (loss) | 29,222,122 | (102,654,173) |
Change in net unrealized appreciation (depreciation) | 3,503,509 | (6,469,546) |
Net increase (decrease) in net assets resulting from operations | 32,782,420 | (107,408,166) |
Distributions to shareholders from net investment income | (658,110) | (1,756,118) |
Distributions to shareholders from net realized gain | - | (285,855) |
Total distributions | (658,110) | (2,041,973) |
Share transactions - net increase (decrease) | 842,172 | (41,067,612) |
Redemption fees | 2,175 | 10,099 |
Total increase (decrease) in net assets | 32,968,657 | (150,507,652) |
|
|
|
Net Assets | ||
Beginning of period | 254,750,055 | 405,257,707 |
End of period (including distributions in excess of net investment income of $291,793 and undistributed net investment income of $309,528, respectively) | $ 287,718,712 | $ 254,750,055 |
See accompanying notes which are an integral part of the financial statements.
Industrials
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 | $ 18.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .03 | .13 | .11 | .09 | .08 | .02 |
Net realized and unrealized gain (loss) | 2.20 | (5.08) | (1.17) | 5.11 | 1.63 | 4.35 |
Total from investment operations | 2.23 | (4.95) | (1.06) | 5.20 | 1.71 | 4.37 |
Distributions from net investment income | (.07) | (.13) | - | (.06) | - | - |
Distributions from net realized gain | - | (.02) | (2.46) | (1.81) | (1.08) | (.94) |
Total distributions | (.07) | (.15) | (2.46) | (1.87) | (1.08) | (.94) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 19.03 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 |
Total Return B, C, D | 13.20% | (22.49)% | (4.71)% | 25.13% | 8.40% | 25.04% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.20% A | 1.23% | 1.17% | 1.21% | 1.26% | 1.34% |
Expenses net of fee waivers, if any | 1.20% A | 1.23% | 1.17% | 1.21% | 1.26% | 1.34% |
Expenses net of all reductions | 1.19% A | 1.23% | 1.16% | 1.21% | 1.24% | 1.29% |
Net investment income (loss) | .27% A | .89% | .46% | .38% | .34% | .09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 145,764 | $ 130,860 | $ 188,859 | $ 157,451 | $ 99,255 | $ 40,264 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 | $ 17.90 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - J | .10 | .05 | .03 | .02 | (.03) |
Net realized and unrealized gain (loss) | 2.17 | (5.03) | (1.15) | 5.05 | 1.61 | 4.31 |
Total from investment operations | 2.17 | (4.93) | (1.10) | 5.08 | 1.63 | 4.28 |
Distributions from net investment income | (.02) | (.08) | - | (.03) | - | - |
Distributions from net realized gain | - | (.02) | (2.40) | (1.74) | (1.04) | (.91) |
Total distributions | (.02) | (.10) | (2.40) | (1.77) | (1.04) | (.91) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.79 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 |
Total Return B, C, D | 13.06% | (22.68)% | (4.96)% | 24.82% | 8.13% | 24.78% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.47% A | 1.48% | 1.41% | 1.46% | 1.49% | 1.57% |
Expenses net of fee waivers, if any | 1.47% A | 1.48% | 1.41% | 1.46% | 1.49% | 1.57% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.41% | 1.46% | 1.47% | 1.52% |
Net investment income (loss) | -% A, H | .63% | .21% | .13% | .11% | (.14)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 56,501 | $ 48,054 | $ 85,025 | $ 75,530 | $ 55,936 | $ 40,126 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 Amount represents less than .01%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 | $ 17.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | .02 | (.07) | (.09) | (.09) | (.13) |
Net realized and unrealized gain (loss) | 2.08 | (4.82) | (1.10) | 4.87 | 1.55 | 4.17 |
Total from investment operations | 2.03 | (4.80) | (1.17) | 4.78 | 1.46 | 4.04 |
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 | - | - | - | - | - | - |
Net asset value, end of period | $ 17.93 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 |
Total Return B, C, D | 12.77% | (23.10)% | (5.46)% | 24.18% | 7.54% | 24.12% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.00% A | 1.98% | 1.95% | 2.00% | 2.04% | 2.11% |
Expenses net of fee waivers, if any | 2.00% A | 1.98% | 1.95% | 2.00% | 2.04% | 2.11% |
Expenses net of all reductions | 2.00% A | 1.98% | 1.95% | 2.00% | 2.02% | 2.07% |
Net investment income (loss) | (.54)% A | .13% | (.33)% | (.41)% | (.44)% | (.68)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 26,932 | $ 25,212 | $ 39,989 | $ 44,330 | $ 37,082 | $ 32,242 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 | $ 17.36 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | .02 | (.06) | (.08) | (.08) | (.12) |
Net realized and unrealized gain (loss) | 2.08 | (4.83) | (1.11) | 4.88 | 1.56 | 4.19 |
Total from investment operations | 2.04 | (4.81) | (1.17) | 4.80 | 1.48 | 4.07 |
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 | - | - | - | - | - | - |
Net asset value, end of period | $ 17.98 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 |
Total Return B, C, D | 12.80% | (23.09)% | (5.44)% | 24.25% | 7.59% | 24.16% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.96% A | 1.98% | 1.91% | 1.94% | 1.99% | 2.07% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 1.91% | 1.94% | 1.99% | 2.07% |
Expenses net of all reductions | 1.95% A | 1.98% | 1.90% | 1.94% | 1.97% | 2.02% |
Net investment income (loss) | (.49)% A | .14% | (.28)% | (.35)% | (.38)% | (.64)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 43,676 | $ 37,862 | $ 57,742 | $ 57,862 | $ 42,363 | $ 20,595 |
Portfolio turnover rate G | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 | $ 18.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .19 | .18 | .16 | .16 | .07 |
Net realized and unrealized gain (loss) | 2.28 | (5.27) | (1.19) | 5.27 | 1.66 | 4.46 |
Total from investment operations | 2.33 | (5.08) | (1.01) | 5.43 | 1.82 | 4.53 |
Distributions from net investment income | (.11) | (.17) | - | (.13) | - | - |
Distributions from net realized gain | - | (.02) | (2.53) | (1.81) | (1.11) | (.95) |
Total distributions | (.11) | (.19) | (2.53) | (1.94) | (1.11) | (.95) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 19.67 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 |
Total Return B, C | 13.36% | (22.31)% | (4.40)% | 25.53% | 8.73% | 25.41% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .91% A | .96% | .88% | .92% | .91% | 1.06% |
Expenses net of fee waivers, if any | .91% A | .96% | .88% | .92% | .91% | 1.06% |
Expenses net of all reductions | .91% A | .95% | .87% | .91% | .89% | 1.01% |
Net investment income (loss) | .55% A | 1.16% | .75% | .67% | .69% | .37% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 14,845 | $ 12,762 | $ 33,642 | $ 19,498 | $ 13,043 | $ 4,379 |
Portfolio turnover rate F | 113% A | 135% | 91% | 130% | 94% | 116% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Industrials
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
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. 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, capital loss carryforwards, deferred trustee compensation, and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,397,521 |
Gross unrealized depreciation | (21,690,902) |
Net unrealized appreciation (depreciation) | $ 3,706,619 |
Tax cost | $ 289,953,049 |
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $153,764,914 and $153,596,907, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 180,677 | $ 487 |
Class T | .25% | .25% | 137,997 | - |
Class B | .75% | .25% | 136,975 | 102,731 |
Class C | .75% | .25% | 213,309 | 27,188 |
|
|
| $ 668,958 | $ 130,406 |
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 |
Class A | $ 20,615 |
Class T | 4,283 |
Class B* | 32,646 |
Class C* | 2,020 |
| $ 59,564 |
* 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 |
Class A | $ 209,728 | .29 |
Class T | 84,607 | .31 |
Class B | 46,908 | .34 |
Class C | 62,428 | .29 |
Institutional Class | 18,724 | .26 |
| $ 422,395 |
|
* Annualized
Industrials
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,596 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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.
7. 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 $22,750.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $9,799 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 $1.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 508,658 | $ 1,066,448 |
Class T | 67,515 | 306,371 |
Class B | - | 68,325 |
Class C | - | 103,234 |
Institutional Class | 81,937 | 211,740 |
Total | $ 658,110 | $ 1,756,118 |
From net realized gain |
|
|
Class A | $ - | $ 176,460 |
Class T | - | 79,143 |
Institutional Class | - | 30,252 |
Total | $ - | $ 285,855 |
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, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 962,811 | 2,551,802 | $ 18,382,098 | $ 40,597,092 |
Reinvestment of distributions | 24,478 | 72,593 | 465,084 | 1,139,555 |
Shares redeemed | (1,085,802) | (3,461,949) | (20,353,787) | (50,255,155) |
Net increase (decrease) | (98,513) | (837,554) | $ (1,506,605) | $ (8,518,508) |
Class T |
|
|
|
|
Shares sold | 405,237 | 1,041,987 | $ 7,577,852 | $ 15,774,329 |
Reinvestment of distributions | 3,441 | 24,634 | 64,970 | 365,354 |
Shares redeemed | (289,781) | (2,101,374) | (5,332,260) | (29,010,054) |
Net increase (decrease) | 118,897 | (1,034,753) | $ 2,310,562 | $ (12,870,371) |
Class B |
|
|
|
|
Shares sold | 92,304 | 339,206 | $ 1,643,738 | $ 5,035,039 |
Reinvestment of distributions | - | 4,471 | - | 56,194 |
Shares redeemed | (175,886) | (686,403) | (3,110,150) | (9,410,134) |
Net increase (decrease) | (83,582) | (342,726) | $ (1,466,412) | $ (4,318,901) |
Class C |
|
|
|
|
Shares sold | 323,330 | 638,949 | $ 5,816,590 | $ 9,440,300 |
Reinvestment of distributions | - | 6,551 | - | 82,541 |
Shares redeemed | (269,373) | (1,047,655) | (4,803,942) | (14,427,567) |
Net increase (decrease) | 53,957 | (402,155) | $ 1,012,648 | $ (4,904,726) |
Institutional Class |
|
|
|
|
Shares sold | 236,982 | 291,640 | $ 4,614,850 | $ 4,730,735 |
Reinvestment of distributions | 3,299 | 10,868 | 64,789 | 192,321 |
Shares redeemed | (217,068) | (1,052,089) | (4,187,660) | (15,378,162) |
Net increase (decrease) | 23,213 | (749,581) | $ 491,979 | $ (10,455,106) |
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.
Industrials
Advisor Technology Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Ending | Expenses Paid |
Class A | 1.24% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,124.80 | $ 6.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.95 | $ 6.31 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,123.20 | $ 8.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.70 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Class C | 1.99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,120.10 | $ 10.63 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 10.11 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,126.00 | $ 5.04 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.47 | $ 4.79 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
Microsoft Corp. | 10.7 | 8.7 |
Apple, Inc. | 8.2 | 7.5 |
Google, Inc. Class A | 5.1 | 4.8 |
Hewlett-Packard Co. | 3.9 | 3.2 |
Oracle Corp. | 3.7 | 3.1 |
Cisco Systems, Inc. | 3.1 | 0.8 |
QUALCOMM, Inc. | 2.6 | 2.2 |
BMC Software, Inc. | 2.1 | 2.1 |
Intel Corp. | 2.0 | 5.4 |
SanDisk Corp. | 1.5 | 1.0 |
| 42.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Software | 28.8% |
|
| Semiconductors & Semiconductor Equipment | 17.5% |
|
| Computers & Peripherals | 16.7% |
|
| Communications Equipment | 10.6% |
|
| Internet Software & Services | 10.2% |
|
| All Others* | 16.2% |
|
As of July 31, 2009 | |||
| Software | 26.7% |
|
| Semiconductors & Semiconductor Equipment | 25.6% |
|
| Computers & Peripherals | 14.4% |
|
| Internet Software & Services | 11.9% |
|
| Communications Equipment | 9.8% |
|
| All Others* | 11.6% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Advisor Technology Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
CHEMICALS - 0.2% | |||
Specialty Chemicals - 0.2% | |||
Shin-Etsu Chemical Co., Ltd. | 17,500 | $ 916,971 | |
COMMERCIAL SERVICES & SUPPLIES - 0.0% | |||
Commercial Printing - 0.0% | |||
Nissha Printing Co. Ltd. | 5,400 | 229,113 | |
COMMUNICATIONS EQUIPMENT - 10.4% | |||
Communications Equipment - 10.4% | |||
Acme Packet, Inc. (a) | 42,600 | 440,910 | |
Adtran, Inc. | 56,500 | 1,197,800 | |
Aruba Networks, Inc. (a) | 9,800 | 101,822 | |
Brocade Communications Systems, Inc. (a) | 294,800 | 2,025,276 | |
Cisco Systems, Inc. (a) | 800,163 | 17,979,663 | |
Emulex Corp. (a) | 50,100 | 563,124 | |
F5 Networks, Inc. (a) | 62,308 | 3,079,884 | |
Infinera Corp. (a) | 70,900 | 485,665 | |
Juniper Networks, Inc. (a) | 221,300 | 5,494,879 | |
Motorola, Inc. | 295,400 | 1,816,710 | |
Netronix, Inc. (a) | 115,000 | 332,786 | |
OZ Optics Ltd. unit (a)(f) | 68,000 | 320,960 | |
Palm, Inc. (a) | 120,000 | 1,246,800 | |
Polycom, Inc. (a) | 135,900 | 3,048,237 | |
QUALCOMM, Inc. | 392,866 | 15,396,419 | |
Research In Motion Ltd. (a) | 28,900 | 1,819,544 | |
Riverbed Technology, Inc. (a) | 85,400 | 1,914,668 | |
Sandvine Corp. (a) | 1,450,464 | 1,763,400 | |
Sandvine Corp. (U.K.) (a) | 1,078,100 | 1,317,644 | |
Sonus Networks, Inc. (a) | 29,060 | 61,317 | |
Tekelec (a) | 35,500 | 531,790 | |
| 60,939,298 | ||
COMPUTERS & PERIPHERALS - 16.7% | |||
Computer Hardware - 12.7% | |||
3PAR, Inc. (a) | 71,337 | 689,829 | |
Apple, Inc. (a) | 252,255 | 48,463,231 | |
Hewlett-Packard Co. | 483,883 | 22,776,373 | |
Stratasys, Inc. (a)(c) | 108,790 | 2,502,170 | |
Toshiba Corp. (a) | 58,000 | 319,331 | |
| 74,750,934 | ||
Computer Storage & Peripherals - 4.0% | |||
Chicony Electronics Co. Ltd. | 189,284 | 467,214 | |
Compellent Technologies, Inc. (a) | 13,900 | 276,332 | |
EMC Corp. (a) | 178,200 | 2,970,594 | |
NetApp, Inc. (a) | 26,300 | 766,119 | |
Netezza Corp. (a) | 6,100 | 55,449 | |
Qisda Corp. (a) | 828,000 | 431,290 | |
SanDisk Corp. (a) | 346,313 | 8,803,276 | |
Seagate Technology | 326,000 | 5,453,980 | |
SIMPLO Technology Co. Ltd. | 68,200 | 389,379 | |
| |||
Shares | Value | ||
Synaptics, Inc. (a) | 88,018 | $ 2,227,736 | |
Western Digital Corp. (a) | 36,300 | 1,379,037 | |
| 23,220,406 | ||
TOTAL COMPUTERS & PERIPHERALS | 97,971,340 | ||
DIVERSIFIED CONSUMER SERVICES - 0.0% | |||
Education Services - 0.0% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a)(c) | 809 | 55,012 | |
ELECTRICAL EQUIPMENT - 1.3% | |||
Electrical Components & Equipment - 1.3% | |||
A123 Systems, Inc. (c) | 2,200 | 35,156 | |
Canadian Solar, Inc. (a) | 37,300 | 788,149 | |
centrotherm photovoltaics AG (a) | 19,273 | 1,074,627 | |
Energy Conversion Devices, Inc. (a) | 8,000 | 72,880 | |
First Solar, Inc. (a) | 514 | 58,236 | |
GT Solar International, Inc. (a)(c) | 268,000 | 1,541,000 | |
JA Solar Holdings Co. Ltd. ADR (a) | 14,500 | 62,350 | |
Q-Cells SE (a) | 1,200 | 16,427 | |
Roth & Rau AG (a) | 16,416 | 661,182 | |
SunPower Corp.: | |||
Class A (a) | 27,100 | 552,569 | |
Class B (a) | 46,044 | 855,037 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(c) | 3,200 | 43,232 | |
Trina Solar Ltd. ADR (a)(c) | 94,800 | 2,078,964 | |
| 7,839,809 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 6.4% | |||
Electronic Components - 2.0% | |||
Amphenol Corp. Class A | 1,400 | 55,776 | |
BYD Co. Ltd. (H Shares) (a) | 88,500 | 648,594 | |
Corning, Inc. | 198,092 | 3,581,503 | |
DTS, Inc. (a) | 20,300 | 574,490 | |
Everlight Electronics Co. Ltd. | 91,999 | 283,207 | |
Prime View International Co. Ltd. (a) | 2,859,000 | 5,241,276 | |
Prime View International Co. Ltd. sponsored GDR (a)(d) | 4,700 | 86,214 | |
TDK Corp. | 9,400 | 610,214 | |
Vishay Intertechnology, Inc. (a) | 108,991 | 821,792 | |
| 11,903,066 | ||
Electronic Equipment & Instruments - 1.2% | |||
Agilent Technologies, Inc. | 94,800 | 2,657,244 | |
China Security & Surveillance Technology, Inc. warrants 8/25/10 (a)(f) | 42,000 | 34,684 | |
Chroma ATE, Inc. | 1,111,641 | 2,190,940 | |
Coretronic Corp. | 174,300 | 248,104 | |
Itron, Inc. (a) | 900 | 55,386 | |
National Instruments Corp. | 51,863 | 1,524,254 | |
Wasion Group Holdings Ltd. | 928,000 | 643,054 | |
| 7,353,666 | ||
Common Stocks - continued | |||
Shares | Value | ||
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED | |||
Electronic Manufacturing Services - 1.9% | |||
Benchmark Electronics, Inc. (a) | 31,800 | $ 579,396 | |
Flextronics International Ltd. (a) | 359,200 | 2,277,328 | |
Ju Teng International Holdings Ltd. | 476,000 | 407,705 | |
Multi-Fineline Electronix, Inc. (a) | 2,289 | 54,638 | |
Trimble Navigation Ltd. (a) | 331,515 | 7,588,378 | |
| 10,907,445 | ||
Technology Distributors - 1.3% | |||
Digital China Holdings Ltd. (H Shares) | 2,949,000 | 4,702,325 | |
Inspur International Ltd. | 1,899,000 | 271,497 | |
Supreme Electronics Co. Ltd. (a) | 798,000 | 595,411 | |
Synnex Technology International Corp. | 273,500 | 563,000 | |
WPG Holding Co. Ltd. | 948,000 | 1,476,940 | |
| 7,609,173 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 37,773,350 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4% | |||
Health Care Equipment - 0.1% | |||
China Medical Technologies, Inc. sponsored ADR (c) | 1,900 | 24,833 | |
Golden Meditech Co. Ltd. (a)(c) | 2,168,000 | 427,236 | |
Mindray Medical International Ltd. sponsored ADR | 200 | 6,974 | |
Mingyuan Medicare Development Co. Ltd. (a) | 1,020,000 | 162,907 | |
| 621,950 | ||
Health Care Supplies - 0.3% | |||
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 410,000 | 1,499,752 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 2,121,702 | ||
HEALTH CARE TECHNOLOGY - 0.3% | |||
Health Care Technology - 0.3% | |||
athenahealth, Inc. (a) | 600 | 23,604 | |
Cerner Corp. (a) | 22,200 | 1,679,430 | |
| 1,703,034 | ||
HOTELS, RESTAURANTS & LEISURE - 0.6% | |||
Hotels, Resorts & Cruise Lines - 0.6% | |||
Ctrip.com International Ltd. sponsored ADR (a) | 105,700 | 3,307,353 | |
HOUSEHOLD DURABLES - 0.7% | |||
Consumer Electronics - 0.7% | |||
Panasonic Corp. | 113,600 | 1,774,826 | |
Panasonic Corp. ADR | 17,600 | 276,496 | |
Sony Corp. sponsored ADR | 64,800 | 2,153,304 | |
TomTom Group BV (a) | 160 | 1,297 | |
| 4,205,923 | ||
| |||
Shares | Value | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.0% | |||
Independent Power Producers & Energy Traders - 0.0% | |||
GCL-Poly Energy Holdings Ltd. | 578,000 | $ 136,982 | |
INTERNET & CATALOG RETAIL - 1.5% | |||
Internet Retail - 1.5% | |||
Amazon.com, Inc. (a) | 36,500 | 4,577,465 | |
Expedia, Inc. (a) | 53,000 | 1,134,730 | |
Priceline.com, Inc. (a) | 15,112 | 2,952,129 | |
| 8,664,324 | ||
INTERNET SOFTWARE & SERVICES - 10.2% | |||
Internet Software & Services - 10.2% | |||
Akamai Technologies, Inc. (a) | 100 | 2,470 | |
Alibaba.com Ltd. | 259,000 | 587,124 | |
AOL, Inc. (a) | 49,800 | 1,193,706 | |
Art Technology Group, Inc. (a) | 73,824 | 330,732 | |
Baidu.com, Inc. sponsored ADR (a) | 1,507 | 620,447 | |
DealerTrack Holdings, Inc. (a) | 12,300 | 221,031 | |
eBay, Inc. (a) | 349,500 | 8,045,490 | |
Google, Inc. Class A (a) | 56,600 | 29,965,172 | |
GREE, Inc. | 16,000 | 932,314 | |
LogMeIn, Inc. | 4,100 | 69,495 | |
Mercadolibre, Inc. (a) | 43,234 | 1,644,189 | |
NetEase.com, Inc. sponsored ADR (a) | 59,800 | 1,961,440 | |
NHN Corp. (a) | 3,754 | 560,395 | |
Open Text Corp. (a) | 83,100 | 3,274,107 | |
OpenTable, Inc. | 400 | 9,956 | |
Rackspace Hosting, Inc. (a) | 14,100 | 256,902 | |
Tencent Holdings Ltd. | 162,800 | 3,044,656 | |
VeriSign, Inc. (a) | 133,600 | 3,060,776 | |
VistaPrint Ltd. (a) | 66,800 | 3,741,468 | |
Vocus, Inc. (a) | 10,300 | 166,036 | |
| 59,687,906 | ||
IT SERVICES - 1.9% | |||
Data Processing & Outsourced Services - 0.8% | |||
Visa, Inc. Class A | 57,900 | 4,749,537 | |
IT Consulting & Other Services - 1.1% | |||
Atos Origin SA (a) | 22,032 | 1,024,615 | |
China Information Security Technology, Inc. (a) | 17 | 83 | |
Cognizant Technology Solutions Corp. Class A (a) | 69,800 | 3,047,468 | |
RightNow Technologies, Inc. (a) | 117,400 | 1,877,226 | |
Yucheng Technologies Ltd. (a)(c) | 89,400 | 317,370 | |
| 6,266,762 | ||
TOTAL IT SERVICES | 11,016,299 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.1% | |||
Life Sciences Tools & Services - 0.1% | |||
Life Technologies Corp. (a) | 6,000 | 298,260 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - 0.2% | |||
Industrial Machinery - 0.2% | |||
Meyer Burger Technology AG (a) | 24,700 | $ 622,675 | |
Shin Zu Shing Co. Ltd. | 156,732 | 637,421 | |
| 1,260,096 | ||
MEDIA - 0.9% | |||
Advertising - 0.8% | |||
AirMedia Group, Inc. ADR (a) | 128,600 | 997,936 | |
Focus Media Holding Ltd. ADR (a)(c) | 114,100 | 1,531,222 | |
VisionChina Media, Inc. ADR (a) | 274,900 | 2,388,881 | |
| 4,918,039 | ||
Cable & Satellite - 0.1% | |||
Virgin Media, Inc. | 40,700 | 577,533 | |
TOTAL MEDIA | 5,495,572 | ||
METALS & MINING - 0.0% | |||
Diversified Metals & Mining - 0.0% | |||
Globe Specialty Metals, Inc. | 22,200 | 206,238 | |
Timminco Ltd. (a) | 5,600 | 6,127 | |
| 212,365 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 17.5% | |||
Semiconductor Equipment - 4.1% | |||
Aixtron AG | 84,800 | 2,550,943 | |
Amkor Technology, Inc. (a) | 251,255 | 1,429,641 | |
ASM International NV (NASDAQ) (a) | 12,900 | 295,926 | |
ASML Holding NV (NY Shares) | 258,300 | 8,071,875 | |
Cymer, Inc. (a) | 16,400 | 514,468 | |
Lam Research Corp. (a) | 78,200 | 2,581,382 | |
LTX-Credence Corp. (a) | 497,102 | 1,247,726 | |
MEMC Electronic Materials, Inc. (a) | 80,900 | 1,017,722 | |
Photronics, Inc. (a) | 82,700 | 318,395 | |
Sumco Corp. | 35,000 | 604,077 | |
Tessera Technologies, Inc. (a) | 129,100 | 2,216,647 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 107,800 | 3,161,774 | |
Veeco Instruments, Inc. (a) | 12,398 | 394,504 | |
| 24,405,080 | ||
Semiconductors - 13.4% | |||
Advanced Micro Devices, Inc. (a) | 185,200 | 1,381,592 | |
Altera Corp. | 41,300 | 880,516 | |
Applied Micro Circuits Corp. (a) | 8,650 | 63,405 | |
Atmel Corp. (a) | 215,785 | 1,001,242 | |
Avago Technologies Ltd. | 487,600 | 8,474,488 | |
Broadcom Corp. Class A (a) | 172,400 | 4,606,528 | |
Cavium Networks, Inc. (a) | 250,018 | 5,402,889 | |
Cree, Inc. (a) | 95,040 | 5,313,686 | |
CSR PLC (a) | 177,985 | 1,270,944 | |
Cypress Semiconductor Corp. (a) | 230,800 | 2,319,540 | |
Epistar Corp. | 366,000 | 1,162,177 | |
| |||
Shares | Value | ||
Fairchild Semiconductor International, Inc. (a) | 73,300 | $ 658,234 | |
Global Unichip Corp. | 182,291 | 835,465 | |
Hittite Microwave Corp. (a) | 22,479 | 835,769 | |
Hynix Semiconductor, Inc. (a) | 56,830 | 1,115,612 | |
Infineon Technologies AG (a) | 106,796 | 582,038 | |
Inotera Memories, Inc. (a) | 997,000 | 718,938 | |
Inotera Memories, Inc. rights 2/3/10 (a) | 128,337 | 2,208 | |
Integrated Device Technology, Inc. (a) | 262,850 | 1,490,360 | |
Intel Corp. | 617,400 | 11,977,560 | |
International Rectifier Corp. (a) | 120,000 | 2,164,800 | |
Intersil Corp. Class A | 117,800 | 1,586,766 | |
LSI Corp. (a) | 111,500 | 556,385 | |
Marvell Technology Group Ltd. (a) | 325,705 | 5,677,038 | |
MediaTek, Inc. | 19,038 | 309,706 | |
Micron Technology, Inc. (a) | 469,785 | 4,096,525 | |
Microsemi Corp. (a) | 4,100 | 61,254 | |
Monolithic Power Systems, Inc. (a) | 50,500 | 1,041,310 | |
Netlogic Microsystems, Inc. (a) | 20,500 | 839,680 | |
NVIDIA Corp. (a) | 326,800 | 5,029,452 | |
Omnivision Technologies, Inc. (a) | 4,499 | 58,037 | |
Power Integrations, Inc. | 12,400 | 387,004 | |
Radiant Opto-Electronics Corp. | 334,750 | 463,403 | |
Rambus, Inc. (a) | 35,400 | 776,676 | |
Silicon Laboratories, Inc. (a) | 39,900 | 1,685,376 | |
Spreadtrum Communications, Inc. ADR (a) | 110,400 | 698,832 | |
Standard Microsystems Corp. (a) | 83,000 | 1,655,850 | |
Volterra Semiconductor Corp. (a) | 15,500 | 302,095 | |
Xilinx, Inc. | 37,600 | 886,608 | |
YoungTek Electronics Corp. | 83,000 | 186,954 | |
| 78,556,942 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 102,962,022 | ||
SOFTWARE - 28.8% | |||
Application Software - 9.3% | |||
ANSYS, Inc. (a) | 5,900 | 246,974 | |
AsiaInfo Holdings, Inc. (a) | 32,000 | 764,800 | |
Citrix Systems, Inc. (a) | 148,000 | 6,149,400 | |
Concur Technologies, Inc. (a) | 69,300 | 2,747,745 | |
Epicor Software Corp. (a) | 203,705 | 1,562,417 | |
Informatica Corp. (a) | 192,600 | 4,562,694 | |
JDA Software Group, Inc. (a) | 51,690 | 1,354,795 | |
Kingdee International Software Group Co. Ltd. | 13,588,000 | 3,360,269 | |
Longtop Financial Technologies Ltd. ADR (a) | 46,800 | 1,622,088 | |
Manhattan Associates, Inc. (a) | 14,412 | 302,220 | |
Mentor Graphics Corp. (a) | 113,900 | 913,478 | |
MicroStrategy, Inc. Class A (a) | 22,660 | 2,123,695 | |
Nuance Communications, Inc. (a) | 210,900 | 3,167,718 | |
Parametric Technology Corp. (a) | 254,700 | 4,217,832 | |
Common Stocks - continued | |||
Shares | Value | ||
SOFTWARE - CONTINUED | |||
Application Software - continued | |||
Pegasystems, Inc. | 50,500 | $ 1,679,125 | |
Salesforce.com, Inc. (a) | 133,100 | 8,458,505 | |
Smith Micro Software, Inc. (a) | 84,400 | 654,100 | |
SolarWinds, Inc. | 2,700 | 52,461 | |
SuccessFactors, Inc. (a) | 212,200 | 3,458,860 | |
Synchronoss Technologies, Inc. (a) | 69,848 | 1,170,652 | |
Synopsys, Inc. (a) | 100 | 2,127 | |
Taleo Corp. Class A (a) | 103,788 | 2,107,934 | |
TIBCO Software, Inc. (a) | 282,900 | 2,534,784 | |
Ulticom, Inc. | 79,731 | 765,418 | |
VanceInfo Technologies, Inc. ADR (a) | 22,000 | 352,660 | |
| 54,332,751 | ||
Home Entertainment Software - 0.5% | |||
Activision Blizzard, Inc. (a) | 114,000 | 1,158,240 | |
Changyou.com Ltd. (A Shares) ADR | 800 | 26,872 | |
Giant Interactive Group, Inc. ADR | 79,211 | 579,825 | |
NCsoft Corp. | 12,016 | 1,353,083 | |
Neowiz Games Corp. | 3,456 | 95,727 | |
| 3,213,747 | ||
Systems Software - 19.0% | |||
Ariba, Inc. (a) | 139,707 | 1,758,911 | |
BMC Software, Inc. (a) | 315,200 | 12,179,328 | |
Check Point Software Technologies Ltd. (a) | 1,700 | 54,366 | |
CommVault Systems, Inc. (a) | 33,100 | 701,389 | |
Fortinet, Inc. | 10,401 | 179,209 | |
Insyde Software Corp. | 209,539 | 845,629 | |
Microsoft Corp. | 2,222,375 | 62,626,529 | |
Oracle Corp. | 942,558 | 21,735,387 | |
Red Hat, Inc. (a) | 243,000 | 6,614,460 | |
Rovi Corp. (a) | 30,500 | 880,535 | |
Symantec Corp. (a) | 14,300 | 242,385 | |
VMware, Inc. Class A (a) | 80,426 | 3,652,145 | |
| 111,470,273 | ||
TOTAL SOFTWARE | 169,016,771 | ||
WIRELESS TELECOMMUNICATION SERVICES - 0.9% | |||
Wireless Telecommunication Services - 0.9% | |||
American Tower Corp. Class A (a) | 22,000 | 933,900 | |
Crown Castle International Corp. (a) | 25,100 | 927,194 | |
SBA Communications Corp. Class A (a) | 27,047 | 894,985 | |
Sprint Nextel Corp. (a) | 459,800 | 1,508,144 | |
Syniverse Holdings, Inc. (a) | 69,057 | 1,160,848 | |
| 5,425,071 | ||
TOTAL COMMON STOCKS (Cost $532,262,045) | 581,238,573 | ||
Convertible Bonds - 0.2% | ||||
| Principal Amount | Value | ||
COMMUNICATIONS EQUIPMENT - 0.2% | ||||
Communications Equipment - 0.2% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 1,270,000 | $ 1,037,082 | ||
Money Market Funds - 2.1% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.17% (e) | 6,122,884 | 6,122,884 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 6,267,263 | 6,267,263 | |
TOTAL MONEY MARKET FUNDS (Cost $12,390,147) | 12,390,147 | ||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $545,922,192) | 594,665,802 | |
NET OTHER ASSETS - (1.3)% | (7,522,569) | |
NET ASSETS - 100% | $ 587,143,233 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $86,214 or 0.0% of net assets. |
(e) 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. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $355,644 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
China Security & Surveillance Technology, Inc. warrants 8/25/10 | 8/25/09 | $ 4 |
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 | $ 1,846 |
Fidelity Securities Lending Cash Central Fund | 78,852 |
Total | $ 80,698 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 581,238,573 | $ 569,983,503 | $ 10,934,110 | $ 320,960 |
Convertible Bonds | 1,037,082 | - | 1,037,082 | - |
Money Market Funds | 12,390,147 | 12,390,147 | - | - |
Total Investments in Securities: | $ 594,665,802 | $ 582,373,650 | $ 11,971,192 | $ 320,960 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 320,960 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in/out of Level 3 | - |
Ending Balance | $ 320,960 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2010 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 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. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.7% |
Cayman Islands | 4.0% |
Taiwan | 3.2% |
China | 2.3% |
Singapore | 1.8% |
Bermuda | 1.6% |
Canada | 1.6% |
Netherlands | 1.4% |
Japan | 1.4% |
Others (individually less than 1%) | 2.0% |
| 100.0% |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $1,522,364,216 of which $889,719,837, $499,806,783 and $132,837,596 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $110,337,017 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Advisor Technology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,795,545) - See accompanying schedule: Unaffiliated issuers (cost $533,532,045) | $ 582,275,655 |
|
Fidelity Central Funds (cost $12,390,147) | 12,390,147 |
|
Total Investments (cost $545,922,192) |
| $ 594,665,802 |
Cash | 83,820 | |
Foreign currency held at value (cost $23) | 23 | |
Receivable for investments sold | 7,098,787 | |
Receivable for fund shares sold | 679,783 | |
Dividends receivable | 57,369 | |
Interest receivable | 785 | |
Distributions receivable from Fidelity Central Funds | 10,739 | |
Prepaid expenses | 2,084 | |
Other receivables | 47,891 | |
Total assets | 602,647,083 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 6,664,202 | |
Payable for fund shares redeemed | 1,818,837 | |
Accrued management fee | 296,894 | |
Distribution fees payable | 227,784 | |
Other affiliated payables | 195,975 | |
Other payables and accrued expenses | 32,895 | |
Collateral on securities loaned, at value | 6,267,263 | |
Total liabilities | 15,503,850 | |
|
|
|
Net Assets | $ 587,143,233 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,109,828,793 | |
Accumulated net investment loss | (2,207,064) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,569,214,212) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 48,735,716 | |
Net Assets | $ 587,143,233 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 18.03 | |
|
|
|
Maximum offering price per share (100/94.25 of $18.03) | $ 19.13 | |
Class T: | $ 17.51 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.51) | $ 18.15 | |
Class B: | $ 16.44 | |
|
|
|
Class C: | $ 16.51 | |
|
|
|
Institutional Class: | $ 18.77 | |
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, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,163,814 |
Interest |
| 170,630 |
Income from Fidelity Central Funds (including $78,852 from security lending) |
| 80,698 |
Total income |
| 1,415,142 |
|
|
|
Expenses | ||
Management fee | $ 1,636,534 | |
Transfer agent fees | 1,003,399 | |
Distribution fees | 1,261,156 | |
Accounting and security lending fees | 115,296 | |
Custodian fees and expenses | 45,127 | |
Independent trustees' compensation | 1,783 | |
Registration fees | 51,271 | |
Audit | 28,611 | |
Legal | 2,650 | |
Interest | 52 | |
Miscellaneous | 4,570 | |
Total expenses before reductions | 4,150,449 | |
Expense reductions | (102,715) | 4,047,734 |
Net investment income (loss) | (2,632,592) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 72,881,270 | |
Foreign currency transactions | (8,557) | |
Capital gain distributions from Fidelity Central Funds | 1,063 | |
Total net realized gain (loss) |
| 72,873,776 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,983,619) | |
Assets and liabilities in foreign currencies | (8,946) | |
Total change in net unrealized appreciation (depreciation) |
| (6,992,565) |
Net gain (loss) | 65,881,211 | |
Net increase (decrease) in net assets resulting from operations | $ 63,248,619 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (2,632,592) | $ (112,131) |
Net realized gain (loss) | 72,873,776 | (206,821,306) |
Change in net unrealized appreciation (depreciation) | (6,992,565) | 162,039,261 |
Net increase (decrease) in net assets resulting from operations | 63,248,619 | (44,894,176) |
Share transactions - net increase (decrease) | 1,764,420 | (14,948,367) |
Redemption fees | 17,539 | 15,958 |
Total increase (decrease) in net assets | 65,030,578 | (59,826,585) |
|
|
|
Net Assets | ||
Beginning of period | 522,112,655 | 581,939,240 |
End of period (including accumulated net investment loss of $2,207,064 and undistributed net investment income of $425,528, respectively) | $ 587,143,233 | $ 522,112,655 |
See accompanying notes which are an integral part of the financial statements.
Technology
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 | $ 13.98 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.07) | .02 H | (.10) | (.17) | (.15) | .02 I |
Net realized and unrealized gain (loss) | 2.07 | (1.03) | (3.41) | 5.13 | (.42) | 2.24 |
Total from investment operations | 2.00 | (1.01) | (3.51) | 4.96 | (.57) | 2.26 |
Distributions from net investment income | - | - | - | - | - | (.08) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 18.03 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 |
Total Return B, C, D | 12.48% | (5.93)% | (17.08)% | 31.82% | (3.53)% | 16.20% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.24% A | 1.23% | 1.21% | 1.25% | 1.30% | 1.37% |
Expenses net of fee waivers, if any | 1.24% A | 1.23% | 1.21% | 1.25% | 1.30% | 1.37% |
Expenses net of all reductions | 1.21% A | 1.22% | 1.19% | 1.24% | 1.20% | 1.26% |
Net investment income (loss) | (.72)% A | .17% H | (.49)% | (.91)% | (.88)% | .12% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 294,903 | $ 258,433 | $ 275,117 | $ 309,105 | $ 189,054 | $ 144,970 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.18)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 | $ 13.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.09) | (.01) H | (.14) | (.21) | (.19) | (.02) I |
Net realized and unrealized gain (loss) | 2.01 | (1.02) | (3.33) | 5.02 | (.41) | 2.21 |
Total from investment operations | 1.92 | (1.03) | (3.47) | 4.81 | (.60) | 2.19 |
Distributions from net investment income | - | - | - | - | - | (.07) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 17.51 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 |
Total Return B, C, D | 12.32% | (6.20)% | (17.27)% | 31.48% | (3.78)% | 15.94% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.50% A | 1.49% | 1.46% | 1.51% | 1.55% | 1.60% |
Expenses net of fee waivers, if any | 1.50% A | 1.49% | 1.46% | 1.51% | 1.55% | 1.60% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.45% | 1.49% | 1.44% | 1.48% |
Net investment income (loss) | (.98)% A | (.09)% H | (.74)% | (1.16)% | (1.13)% | (.11)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 161,773 | $ 151,170 | $ 173,917 | $ 260,339 | $ 260,966 | $ 315,930 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.44)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 | $ 13.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.07) H | (.23) | (.28) | (.27) | (.09) I |
Net realized and unrealized gain (loss) | 1.89 | (.98) | (3.15) | 4.79 | (.38) | 2.12 |
Total from investment operations | 1.77 | (1.05) | (3.38) | 4.51 | (.65) | 2.03 |
Distributions from net investment income | - | - | - | - | - | (.04) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.44 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 |
Total Return B, C, D | 12.07% | (6.68)% | (17.70)% | 30.91% | (4.27)% | 15.33% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.13% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.13% |
Expenses net of all reductions | 1.96% A | 1.97% | 1.94% | 2.00% | 1.94% | 2.02% |
Net investment income (loss) | (1.47)% A | (.58)% H | (1.24)% | (1.67)% | (1.63)% | (.65)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 31,088 | $ 30,580 | $ 47,294 | $ 102,655 | $ 192,790 | $ 309,020 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 | $ 13.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.07) H | (.23) | (.29) | (.27) | (.08) I |
Net realized and unrealized gain (loss) | 1.89 | (.98) | (3.16) | 4.81 | (.38) | 2.12 |
Total from investment operations | 1.77 | (1.05) | (3.39) | 4.52 | (.65) | 2.04 |
Distributions from net investment income | - | - | - | - | - | (.04) |
Redemption fees added to paid in capital E, K | - | - | - | - | - | - |
Net asset value, end of period | $ 16.51 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 |
Total Return B, C, D | 12.01% | (6.65)% | (17.67)% | 30.83% | (4.25)% | 15.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.10% |
Expenses net of fee waivers, if any | 1.99% A | 1.98% | 1.96% | 2.01% | 2.05% | 2.10% |
Expenses net of all reductions | 1.96% A | 1.97% | 1.94% | 1.99% | 1.94% | 1.99% |
Net investment income (loss) | (1.47)% A | (.58)% H | (1.24)% | (1.66)% | (1.63)% | (.61)% I |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 65,483 | $ 55,645 | $ 63,590 | $ 86,974 | $ 82,835 | $ 108,287 |
Portfolio turnover rate G | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.93)%. I 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)%. 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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 | $ 14.32 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | .06 G | (.04) | (.11) | (.09) | .09 H |
Net realized and unrealized gain (loss) | 2.14 | (1.07) | (3.54) | 5.30 | (.44) | 2.30 |
Total from investment operations | 2.10 | (1.01) | (3.58) | 5.19 | (.53) | 2.39 |
Distributions from net investment income | - | - | - | - | - | (.11) |
Redemption fees added to paid in capital D, J | - | - | - | - | - | - |
Net asset value, end of period | $ 18.77 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 |
Total Return B, C | 12.60% | (5.71)% | (16.84)% | 32.30% | (3.19)% | 16.73% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions | .94% A | .98% | .94% | .93% | .90% | .92% |
Expenses net of fee waivers, if any | .94% A | .98% | .94% | .93% | .90% | .92% |
Expenses net of all reductions | .90% A | .97% | .92% | .92% | .80% | .81% |
Net investment income (loss) | (.42)% A | .42% G | (.22)% | (.59)% | (.49)% | .57% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,896 | $ 26,285 | $ 22,021 | $ 21,111 | $ 11,681 | $ 11,640 |
Portfolio turnover rate F | 133% A | 225% | 214% | 208% | 258% | 180% |
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 $.04 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .07%. 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 (.42)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2010 (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 Securities and Exchange Commission
(the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon
request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. 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, net operating losses, market discount, capital loss carryforwards, and losses deferred to wash sales and excise tax regulations.
Technology
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 88,149,170 |
Gross unrealized depreciation | (44,784,086) |
Net unrealized appreciation (depreciation) | $ 43,365,084 |
|
|
Tax cost | $ 551,300,718 |
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.
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 $379,072,768 and $385,577,454, 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 366,188 | $ 3,567 |
Class T | .25% | .25% | 412,310 | - |
Class B | .75% | .25% | 162,923 | 122,193 |
Class C | .75% | .25% | 319,735 | 32,476 |
|
|
| $ 1,261,156 | $ 158,236 |
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 |
Class A | $ 51,710 |
Class T | 10,200 |
Class B* | 22,806 |
Class C* | 1,707 |
| $ 86,423 |
* 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 |
Class A | $ 504,326 | .35 |
Class T | 287,528 | .35 |
Class B | 56,473 | .35 |
Class C | 110,072 | .35 |
Institutional Class | 45,000 | .29 |
| $ 1,003,399 |
|
* 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 $7,551 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 | Weighted Average | Interest |
Borrower | $ 5,042,000 | .37% | $ 52 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,110 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Technology
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 in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $102,715 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 2,567,733 | 3,881,770 | $ 47,062,667 | $ 49,340,225 |
Shares redeemed | (2,330,855) | (3,900,491) | (42,481,210) | (47,190,702) |
Net increase (decrease) | 236,878 | (18,721) | $ 4,581,457 | $ 2,149,523 |
Class T |
|
|
|
|
Shares sold | 887,760 | 2,072,898 | $ 15,740,848 | $ 24,512,394 |
Shares redeemed | (1,345,529) | (2,840,598) | (23,220,777) | (33,936,510) |
Net increase (decrease) | (457,769) | (767,700) | $ (7,479,929) | $ (9,424,116) |
Class B |
|
|
|
|
Shares sold | 214,176 | 327,585 | $ 3,573,195 | $ 3,794,593 |
Shares redeemed | (407,165) | (1,251,978) | (6,703,065) | (14,128,827) |
Net increase (decrease) | (192,989) | (924,393) | $ (3,129,870) | $ (10,334,234) |
Class C |
|
|
|
|
Shares sold | 555,406 | 654,688 | $ 9,319,120 | $ 7,947,929 |
Shares redeemed | (365,265) | (906,545) | (6,039,782) | (10,144,084) |
Net increase (decrease) | 190,141 | (251,857) | $ 3,279,338 | $ (2,196,155) |
Institutional Class |
|
|
|
|
Shares sold | 588,408 | 753,599 | $ 11,338,105 | $ 10,483,415 |
Shares redeemed | (359,829) | (422,236) | (6,824,681) | (5,626,800) |
Net increase (decrease) | 228,579 | 331,363 | $ 4,513,424 | $ 4,856,615 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.30% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,046.30 | $ 6.71 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.65 | $ 6.61 |
Class T | 1.56% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,045.00 | $ 8.04 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.34 | $ 7.93 |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,042.20 | $ 10.55 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.87 | $ 10.41 |
Class C | 2.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,041.60 | $ 10.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.92 | $ 10.36 |
Institutional Class | 1.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,047.70 | $ 5.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.01 | $ 5.24 |
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, 2010 | ||
| % of fund's | % of fund's net assets |
American Electric Power Co., Inc. | 9.5 | 13.3 |
FirstEnergy Corp. | 9.1 | 9.6 |
PG&E Corp. | 8.8 | 4.9 |
Entergy Corp. | 8.2 | 4.8 |
CenterPoint Energy, Inc. | 6.9 | 6.2 |
FPL Group, Inc. | 6.8 | 6.8 |
Wisconsin Energy Corp. | 4.9 | 0.0 |
TECO Energy, Inc. | 4.9 | 5.0 |
Alliant Energy Corp. | 4.9 | 0.0 |
CMS Energy Corp. | 4.9 | 3.4 |
| 68.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2010 | |||
| Electric Utilities | 45.7% |
|
| Multi-Utilities | 35.3% |
|
| Independent Power Producers & Energy Traders | 12.5% |
|
| Gas Utilities | 5.5% |
|
| All Others* | 1.0% |
|
| |||
As of July 31, 2009 | |||
| Electric Utilities | 51.3% |
|
| Multi-Utilities | 29.9% |
|
| Independent Power Producers & Energy Traders | 17.1% |
|
| Commercial Services & Supplies | 0.9% |
|
| Electrical Equipment | 0.5% |
|
| All Others* | 0.3% |
|
* Includes short-term investments and net other assets. |
Utilities
Advisor Utilities Fund
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
ELECTRIC UTILITIES - 45.7% | |||
Electric Utilities - 45.7% | |||
American Electric Power Co., Inc. | 371,600 | $ 12,875,940 | |
Entergy Corp. | 145,000 | 11,064,950 | |
FirstEnergy Corp. | 280,500 | 12,235,410 | |
FPL Group, Inc. | 188,200 | 9,176,632 | |
Hawaiian Electric Industries, Inc. (c) | 132,000 | 2,610,960 | |
ITC Holdings Corp. | 95,801 | 5,146,430 | |
NV Energy, Inc. | 417,100 | 4,804,992 | |
Pinnacle West Capital Corp. | 106,000 | 3,796,920 | |
| 61,712,234 | ||
GAS UTILITIES - 5.5% | |||
Gas Utilities - 5.5% | |||
Questar Corp. | 62,100 | 2,575,908 | |
UGI Corp. | 196,837 | 4,824,475 | |
| 7,400,383 | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 12.5% | |||
Independent Power Producers & Energy Traders - 12.5% | |||
AES Corp. | 306,700 | 3,873,621 | |
Calpine Corp. (a) | 598,200 | 6,550,290 | |
Constellation Energy Group, Inc. | 199,200 | 6,430,176 | |
| 16,854,087 | ||
MULTI-UTILITIES - 35.3% | |||
Multi-Utilities - 35.3% | |||
Alliant Energy Corp. | 212,300 | 6,623,760 | |
CenterPoint Energy, Inc. | 664,100 | 9,264,195 | |
CMS Energy Corp. | 436,600 | 6,623,222 | |
PG&E Corp. | 281,204 | 11,878,057 | |
| |||
Shares | Value | ||
TECO Energy, Inc. | 425,600 | $ 6,626,592 | |
Wisconsin Energy Corp. | 136,692 | 6,689,706 | |
| 47,705,532 | ||
TOTAL COMMON STOCKS (Cost $131,291,472) | 133,672,236 | ||
Money Market Funds - 2.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (d) | 2,571,923 | 2,571,923 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(d) | 473,550 | 473,550 | |
TOTAL MONEY MARKET FUNDS (Cost $3,045,473) | 3,045,473 | ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $134,336,945) | 136,717,709 | |
NET OTHER ASSETS - (1.2)% | (1,682,828) | |
NET ASSETS - 100% | $ 135,034,881 | |
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) 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 | $ 1,482 |
Fidelity Securities Lending Cash Central Fund | 2,560 |
Total | $ 4,042 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $246,849,971 of which $78,569,521, $154,412,532 and $13,867,918 will expire on July 31, 2010, 2011 and 2017, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $34,108,371 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $456,918) - See accompanying schedule: Unaffiliated issuers (cost $131,291,472) | $ 133,672,236 |
|
Fidelity Central Funds (cost $3,045,473) | 3,045,473 |
|
Total Investments (cost $134,336,945) |
| $ 136,717,709 |
Receivable for investments sold | 9,462,882 | |
Receivable for fund shares sold | 91,819 | |
Dividends receivable | 86,744 | |
Distributions receivable from Fidelity Central Funds | 327 | |
Prepaid expenses | 551 | |
Other receivables | 10,750 | |
Total assets | 146,370,782 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,240,664 | |
Payable for fund shares redeemed | 430,593 | |
Accrued management fee | 65,780 | |
Distribution fees payable | 56,085 | |
Other affiliated payables | 44,778 | |
Other payables and accrued expenses | 24,451 | |
Collateral on securities loaned, at value | 473,550 | |
Total liabilities | 11,335,901 | |
|
|
|
Net Assets | $ 135,034,881 | |
Net Assets consist of: |
| |
Paid in capital | $ 419,785,584 | |
Distributions in excess of net investment income | (156,372) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (286,980,162) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,385,831 | |
Net Assets | $ 135,034,881 | |
Statement of Assets and Liabilities - continued
| January 31, 2010 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.58) | $ 16.53 | |
Class T: | $ 15.60 | |
|
|
|
Maximum offering price per share (100/96.50 of $15.60) | $ 16.17 | |
Class B: | $ 15.44 | |
|
|
|
Class C: | $ 15.36 | |
|
|
|
Institutional Class: | $ 15.81 | |
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 Utilities Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2010 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,628,021 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 4,042 |
Total income |
| 2,632,065 |
|
|
|
Expenses | ||
Management fee | $ 385,919 | |
Transfer agent fees | 241,570 | |
Distribution fees | 332,199 | |
Accounting and security lending fees | 27,139 | |
Custodian fees and expenses | 3,920 | |
Independent trustees' compensation | 433 | |
Registration fees | 34,787 | |
Audit | 25,715 | |
Legal | 1,796 | |
Miscellaneous | 1,428 | |
Total expenses before reductions | 1,054,906 | |
Expense reductions | (23,031) | 1,031,875 |
Net investment income (loss) | 1,600,190 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,929,466 | |
Foreign currency transactions | 742 | |
Total net realized gain (loss) |
| 1,930,208 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,485,902 | |
Assets and liabilities in foreign currencies | 4,883 | |
Total change in net unrealized appreciation (depreciation) |
| 2,490,785 |
Net gain (loss) | 4,420,993 | |
Net increase (decrease) in net assets resulting from operations | $ 6,021,183 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,600,190 | $ 3,120,844 |
Net realized gain (loss) | 1,930,208 | (55,782,452) |
Change in net unrealized appreciation (depreciation) | 2,490,785 | (1,796,906) |
Net increase (decrease) in net assets resulting from operations | 6,021,183 | (54,458,514) |
Distributions to shareholders from net investment income | (3,192,007) | (2,162,549) |
Share transactions - net increase (decrease) | (5,208,027) | (29,372,654) |
Redemption fees | 553 | 4,076 |
Total increase (decrease) in net assets | (2,378,298) | (85,989,641) |
|
|
|
Net Assets | ||
Beginning of period | 137,413,179 | 223,402,820 |
End of period (including distributions in excess of net investment income of $156,372 and undistributed net investment income of $1,435,445, respectively) | $ 135,034,881 | $ 137,413,179 |
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 | $ 12.09 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .20 | .35 | .24 | .21 | .24 | .28 H |
Net realized and unrealized gain (loss) | .51 | (5.10) | (.38) | 3.56 | 2.06 | 3.01 |
Total from investment operations | .71 | (4.75) | (.14) | 3.77 | 2.30 | 3.29 |
Distributions from net investment income | (.40) | (.26) | (.32) | (.23) | (.27) | (.21) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.58 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 |
Total Return B, C, D | 4.63% | (23.44)% | (.82)% | 22.14% | 15.38% | 27.48% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.30% A | 1.26% | 1.21% | 1.27% | 1.34% | 1.39% |
Expenses net of fee waivers, if any | 1.30% A | 1.26% | 1.21% | 1.27% | 1.34% | 1.39% |
Expenses net of all reductions | 1.26% A | 1.26% | 1.21% | 1.26% | 1.32% | 1.36% |
Net investment income (loss) | 2.55% A | 2.37% | 1.11% | 1.04% | 1.51% | 2.03% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 64,523 | $ 66,064 | $ 105,219 | $ 94,842 | $ 40,599 | $ 29,150 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class T
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 | $ 12.04 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .18 | .31 | .18 | .15 | .19 | .24 H |
Net realized and unrealized gain (loss) | .51 | (5.10) | (.39) | 3.56 | 2.08 | 2.99 |
Total from investment operations | .69 | (4.79) | (.21) | 3.71 | 2.27 | 3.23 |
Distributions from net investment income | (.36) | (.20) | (.24) | (.18) | (.19) | (.17) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.60 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 |
Total Return B, C, D | 4.50% | (23.61)% | (1.11)% | 21.74% | 15.20% | 27.03% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.56% A | 1.52% | 1.47% | 1.54% | 1.60% | 1.67% |
Expenses net of fee waivers, if any | 1.56% A | 1.52% | 1.47% | 1.54% | 1.60% | 1.67% |
Expenses net of all reductions | 1.52% A | 1.52% | 1.47% | 1.54% | 1.58% | 1.64% |
Net investment income (loss) | 2.29% A | 2.11% | .84% | .76% | 1.25% | 1.76% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,545 | $ 33,989 | $ 54,346 | $ 62,592 | $ 52,128 | $ 55,683 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 | $ 11.82 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .24 | .08 | .05 | .12 | .17 H |
Net realized and unrealized gain (loss) | .50 | (5.04) | (.39) | 3.52 | 2.03 | 2.95 |
Total from investment operations | .64 | (4.80) | (.31) | 3.57 | 2.15 | 3.12 |
Distributions from net investment income | (.28) | (.13) | (.08) | (.07) | (.08) | (.11) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.44 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 |
Total Return B, C, D | 4.22% | (23.97)% | (1.59)% | 21.18% | 14.57% | 26.51% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.05% A | 2.01% | 1.96% | 2.04% | 2.09% | 2.14% |
Expenses net of fee waivers, if any | 2.05% A | 2.01% | 1.96% | 2.04% | 2.09% | 2.14% |
Expenses net of all reductions | 2.01% A | 2.01% | 1.95% | 2.03% | 2.06% | 2.11% |
Net investment income (loss) | 1.80% A | 1.62% | .36% | .27% | .76% | 1.28% H |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,424 | $ 10,634 | $ 20,747 | $ 43,845 | $ 65,959 | $ 82,577 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
Financial Highlights - Class C
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 | $ 11.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .24 | .08 | .06 | .13 | .18 H |
Net realized and unrealized gain (loss) | .49 | (5.02) | (.39) | 3.51 | 2.04 | 2.94 |
Total from investment operations | .63 | (4.78) | (.31) | 3.57 | 2.17 | 3.12 |
Distributions from net investment income | (.29) | (.13) | (.14) | (.10) | (.10) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.36 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 |
Total Return B, C, D | 4.16% | (23.96)% | (1.58)% | 21.23% | 14.72% | 26.48% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.04% A | 2.01% | 1.95% | 1.99% | 2.02% | 2.07% |
Expenses net of fee waivers, if any | 2.04% A | 2.01% | 1.95% | 1.99% | 2.02% | 2.07% |
Expenses net of all reductions | 2.01% A | 2.01% | 1.95% | 1.99% | 2.00% | 2.04% |
Net investment income (loss) | 1.80% A | 1.62% | .36% | .32% | .83% | 1.36% H |
Supplemental Data |
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|
|
|
Net assets, end of period (000 omitted) | $ 21,856 | $ 22,352 | $ 37,387 | $ 43,292 | $ 32,823 | $ 34,827 |
Portfolio turnover rate G | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Utilities
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
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|
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|
|
Net asset value, beginning of period | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 | $ 12.20 |
Income from Investment Operations |
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|
Net investment income (loss) D | .23 | .39 | .31 | .29 | .30 | .33 G |
Net realized and unrealized gain (loss) | .52 | (5.17) | (.38) | 3.58 | 2.10 | 3.03 |
Total from investment operations | .75 | (4.78) | (.07) | 3.87 | 2.40 | 3.36 |
Distributions from net investment income | (.45) | (.23) | (.36) | (.30) | (.33) | (.25) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 15.81 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 |
Total Return B, C | 4.77% | (23.24)% | (.49)% | 22.54% | 15.95% | 27.88% |
Ratios to Average Net Assets E, H |
|
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|
Expenses before reductions | 1.03% A | 1.00% | .91% | .92% | .94% | .99% |
Expenses net of fee waivers, if any | 1.03% A | 1.00% | .91% | .92% | .94% | .99% |
Expenses net of all reductions | .99% A | 1.00% | .90% | .92% | .92% | .96% |
Net investment income (loss) | 2.82% A | 2.63% | 1.41% | 1.39% | 1.91% | 2.44% G |
Supplemental Data |
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|
|
|
Net assets, end of period (000 omitted) | $ 5,687 | $ 4,373 | $ 5,704 | $ 12,822 | $ 6,479 | $ 1,766 |
Portfolio turnover rate F | 204% A | 247% | 77% | 118% | 64% | 44% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Utilities
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.
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. 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, market discount, capital loss carryforwards, and losses deferred to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 8,118,601 |
Gross unrealized depreciation | (13,743,068) |
Net unrealized appreciation (depreciation) | $ (5,624,467) |
|
|
Tax cost | $ 142,342,176 |
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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $137,612,401 and $145,244,727, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and 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 | Service | Paid to | Retained |
Class A | 0% | .25% | $ 83,589 | $ 1,659 |
Class T | .25% | .25% | 86,000 | - |
Class B | .75% | .25% | 51,619 | 38,714 |
Class C | .75% | .25% | 110,991 | 7,036 |
|
|
| $ 332,199 | $ 47,409 |
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 |
Class A | $ 12,290 |
Class T | 3,450 |
Class B* | 11,117 |
Class C* | 473 |
| $ 27,330 |
* 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 |
Class A | $ 116,248 | .35 |
Class T | 61,891 | .36 |
Class B | 18,078 | .35 |
Class C | 38,412 | .35 |
Institutional Class | 6,941 | .33 |
| $ 241,570 |
|
* Annualized
Utilities
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $539 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $275 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. 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 $2,560.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $23,031 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2010 | Year ended | |
From net investment income |
|
|
Class A | $ 1,700,299 | $ 1,279,763 |
Class T | 782,544 | 508,856 |
Class B | 184,052 | 107,816 |
Class C | 413,373 | 209,682 |
Institutional Class | 111,739 | 56,432 |
Total | $ 3,192,007 | $ 2,162,549 |
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, 2010 | Year ended | Six months ended January 31, 2010 | Year ended | |
Class A |
|
|
|
|
Shares sold | 318,418 | 856,135 | $ 5,058,639 | $ 12,539,810 |
Reinvestment of distributions | 96,455 | 73,926 | 1,532,368 | 1,138,401 |
Shares redeemed | (598,478) | (1,794,060) | (9,489,270) | (25,956,960) |
Net increase (decrease) | (183,605) | (863,999) | $ (2,898,263) | $ (12,278,749) |
Class T |
|
|
|
|
Shares sold | 130,816 | 257,339 | $ 2,085,489 | $ 3,753,639 |
Reinvestment of distributions | 46,549 | 31,967 | 741,068 | 480,828 |
Shares redeemed | (252,246) | (746,038) | (3,990,532) | (10,889,452) |
Net increase (decrease) | (74,881) | (456,732) | $ (1,163,975) | $ (6,654,985) |
Class B |
|
|
|
|
Shares sold | 38,033 | 154,111 | $ 596,720 | $ 2,249,187 |
Reinvestment of distributions | 10,581 | 6,919 | 167,054 | 98,250 |
Shares redeemed | (143,424) | (492,642) | (2,243,240) | (7,223,742) |
Net increase (decrease) | (94,810) | (331,612) | $ (1,479,466) | $ (4,876,305) |
Class C |
|
|
|
|
Shares sold | 112,885 | 216,794 | $ 1,784,938 | $ 3,077,077 |
Reinvestment of distributions | 20,487 | 11,490 | 322,152 | 162,462 |
Shares redeemed | (199,276) | (615,787) | (3,098,449) | (8,815,385) |
Net increase (decrease) | (65,904) | (387,503) | $ (991,359) | $ (5,575,846) |
Institutional Class |
|
|
|
|
Shares sold | 170,310 | 137,801 | $ 2,803,315 | $ 1,988,698 |
Reinvestment of distributions | 5,221 | 2,995 | 84,041 | 45,330 |
Shares redeemed | (97,698) | (136,905) | (1,562,320) | (2,020,797) |
Net increase (decrease) | 77,833 | 3,891 | $ 1,325,036 | $ 13,231 |
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.
Utilities
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
FIL 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-0310
1.789280.107
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Real Estate
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | 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/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com 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
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
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, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,301.70 | $ 7.25 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,299.70 | $ 8.69 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,295.80 | $ 11.57 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,296.30 | $ 11.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,301.70 | $ 5.80 |
Hypothetical A |
| $ 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, 2010 | ||
| % of fund's | % of fund's net assets |
Simon Property Group, Inc. | 10.7 | 9.0 |
Ventas, Inc. | 6.4 | 6.3 |
ProLogis Trust | 5.5 | 4.7 |
Vornado Realty Trust | 4.6 | 3.5 |
SL Green Realty Corp. | 4.4 | 3.6 |
Public Storage | 4.2 | 4.8 |
Digital Realty Trust, Inc. | 3.8 | 3.9 |
Equity Residential (SBI) | 3.6 | 2.4 |
HCP, Inc. | 3.2 | 3.2 |
Sunstone Hotel Investors, Inc. | 3.0 | 2.5 |
| 49.4 | |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Office Buildings | 15.6 | 17.8 |
REITs - Malls | 14.6 | 13.4 |
REITs - Industrial Buildings | 14.3 | 13.0 |
REITs - Apartments | 13.9 | 13.6 |
REITs - Health Care Facilities | 11.4 | 11.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
 | Stocks 98.3% |
| | Stocks 96.2% |
| ||
 | Convertible |
| | Convertible |
| ||
 | Short-Term |
| | Short-Term |
| ||
* Foreign investments | 1.4% |
| ** Foreign investments | 1.6% |
| ||
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - 1.7% | |||
Health Care Facilities - 1.7% | |||
Brookdale Senior Living, Inc. (a) | 25,800 | $ 470,850 | |
Emeritus Corp. (a) | 196,088 | 3,568,802 | |
Sunrise Senior Living, Inc. (a) | 74,674 | 221,782 | |
TOTAL HEALTH CARE FACILITIES | 4,261,434 | ||
HOTELS, RESTAURANTS & LEISURE - 0.3% | |||
Hotels, Resorts & Cruise Lines - 0.3% | |||
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 21,400 | 658,264 | |
HOUSEHOLD DURABLES - 0.7% | |||
Homebuilding - 0.7% | |||
D.R. Horton, Inc. | 13,800 | 162,702 | |
Lennar Corp. Class A | 21,900 | 336,384 | |
M/I Homes, Inc. (a) | 14,900 | 153,768 | |
Pulte Homes, Inc. | 67,877 | 714,066 | |
Toll Brothers, Inc. (a) | 16,700 | 308,449 | |
TOTAL HOMEBUILDING | 1,675,369 | ||
REAL ESTATE INVESTMENT TRUSTS - 91.0% | |||
REITs - Apartments - 13.9% | |||
Apartment Investment & Management Co. Class A | 410,247 | 6,301,394 | |
Associated Estates Realty Corp. | 56,700 | 669,627 | |
AvalonBay Communities, Inc. | 43,731 | 3,350,232 | |
Camden Property Trust (SBI) | 69,700 | 2,702,269 | |
Education Realty Trust, Inc. | 215,111 | 1,135,786 | |
Equity Residential (SBI) | 279,181 | 8,947,751 | |
Essex Property Trust, Inc. (c) | 92,100 | 7,339,449 | |
Home Properties, Inc. | 54,800 | 2,429,284 | |
Mid-America Apartment Communities, Inc. | 31,700 | 1,487,364 | |
TOTAL REITS - APARTMENTS | 34,363,156 | ||
REITs - Factory Outlets - 0.3% | |||
Tanger Factory Outlet Centers, Inc. | 17,702 | 677,987 | |
REITs - Health Care Facilities - 11.4% | |||
HCP, Inc. | 282,200 | 8,000,370 | |
Healthcare Realty Trust, Inc. | 154,269 | 3,235,021 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Health Care Facilities - continued | |||
National Health Investors, Inc. | 25,100 | $ 853,902 | |
Omega Healthcare Investors, Inc. | 23,800 | 445,298 | |
Ventas, Inc. | 374,600 | 15,808,120 | |
TOTAL REITS - HEALTH CARE FACILITIES | 28,342,711 | ||
REITs - Hotels - 6.9% | |||
Chesapeake Lodging Trust (a) | 26,100 | 494,595 | |
DiamondRock Hospitality Co. | 699,960 | 5,697,674 | |
Host Hotels & Resorts, Inc. | 318,749 | 3,378,739 | |
Sunstone Hotel Investors, Inc. | 877,866 | 7,540,869 | |
TOTAL REITS - HOTELS | 17,111,877 | ||
REITs - Industrial Buildings - 14.3% | |||
Duke Realty LP | 460,416 | 5,211,909 | |
First Industrial Realty Trust, Inc. (c) | 223,500 | 1,144,320 | |
ProLogis Trust | 1,088,351 | 13,713,223 | |
Public Storage | 132,418 | 10,484,857 | |
U-Store-It Trust | 699,808 | 4,842,671 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 35,396,980 | ||
REITs - Malls - 14.6% | |||
CBL & Associates Properties, Inc. (c) | 440,512 | 4,405,120 | |
Simon Property Group, Inc. | 368,712 | 26,547,264 | |
The Macerich Co. (c) | 164,704 | 5,081,118 | |
TOTAL REITS - MALLS | 36,033,502 | ||
REITs - Management/Investment - 3.8% | |||
Digital Realty Trust, Inc. (c) | 196,700 | 9,441,600 | |
REITs - Office Buildings - 15.6% | |||
Alexandria Real Estate Equities, Inc. (c) | 92,800 | 5,542,944 | |
Boston Properties, Inc. | 108,900 | 7,064,343 | |
Brandywine Realty Trust (SBI) | 377,100 | 4,234,833 | |
Corporate Office Properties Trust (SBI) | 164,200 | 5,860,298 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Office Buildings - continued | |||
Highwoods Properties, Inc. (SBI) | 170,000 | $ 5,135,700 | |
SL Green Realty Corp. | 238,300 | 10,840,267 | |
TOTAL REITS - OFFICE BUILDINGS | 38,678,385 | ||
REITs - Shopping Centers - 10.2% | |||
Acadia Realty Trust (SBI) | 269,800 | 4,297,914 | |
Developers Diversified Realty Corp. | 399,038 | 3,292,064 | |
Kimco Realty Corp. | 394,116 | 4,973,744 | |
Kite Realty Group Trust | 382,610 | 1,450,092 | |
Vornado Realty Trust | 175,525 | 11,352,957 | |
TOTAL REITS - SHOPPING CENTERS | 25,366,771 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 225,412,969 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 4.6% | |||
Real Estate Operating Companies - 2.3% | |||
Brookfield Properties Corp. | 220,900 | 2,650,469 | |
Forest City Enterprises, Inc. Class A (a)(c) | 264,100 | 2,986,971 | |
TOTAL REAL ESTATE OPERATING COMPANIES | 5,637,440 | ||
Real Estate Services - 2.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 475,523 | 5,848,933 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 11,486,373 | ||
TOTAL COMMON STOCKS (Cost $245,968,544) | 243,494,409 | ||
Convertible Preferred Stocks - 0.3% | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.3% | |||
Real Estate Services - 0.3% | |||
Grubb & Ellis Co.: | |||
12.00% (d) | 5,900 | $ 587,050 | |
12.00% (a)(d) | 2,200 | 218,900 | |
TOTAL REAL ESTATE SERVICES | 805,950 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $810,000) | 805,950 | ||
Money Market Funds - 11.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 3,892,183 | 3,892,183 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 24,858,658 | 24,858,658 | |
TOTAL MONEY MARKET FUNDS (Cost $28,750,841) | 28,750,841 | ||
TOTAL INVESTMENT PORTFOLIO - 110.2% (Cost $275,529,385) | 273,051,200 | ||
NET OTHER ASSETS - (10.2)% | (25,230,016) | ||
NET ASSETS - 100% | $ 247,821,184 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $805,950 or 0.3% of net assets. |
(e) 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 | $ 7,488 |
Fidelity Securities Lending Cash Central Fund | 32,748 |
Total | $ 40,236 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 243,494,409 | $ 243,494,409 | $ - | $ - |
Convertible Preferred Stocks | 805,950 | - | 805,950 | - |
Money Market Funds | 28,750,841 | 28,750,841 | - | - |
Total Investments in Securities: | $ 273,051,200 | $ 272,245,250 | $ 805,950 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $15,429,654 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $47,012,174 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $24,105,152) - See accompanying schedule: Unaffiliated issuers (cost $246,778,544) | $ 244,300,359 |
|
Fidelity Central Funds (cost $28,750,841) | 28,750,841 |
|
Total Investments (cost $275,529,385) |
| $ 273,051,200 |
Cash | 27,418 | |
Receivable for investments sold | 1,946,841 | |
Receivable for fund shares sold | 303,155 | |
Dividends receivable | 385,429 | |
Distributions receivable from Fidelity Central Funds | 3,432 | |
Prepaid expenses | 810 | |
Receivable from investment adviser for expense reductions | 6,165 | |
Other receivables | 4,661 | |
Total assets | 275,729,111 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,339,469 | |
Payable for fund shares redeemed | 413,837 | |
Accrued management fee | 120,393 | |
Distribution fees payable | 66,599 | |
Other affiliated payables | 80,094 | |
Other payables and accrued expenses | 28,877 | |
Collateral on securities loaned, at value | 24,858,658 | |
Total liabilities | 27,907,927 | |
|
|
|
Net Assets | $ 247,821,184 | |
Net Assets consist of: |
| |
Paid in capital | $ 324,002,733 | |
Undistributed net investment income | 115,286 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (73,818,328) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,478,507) | |
Net Assets | $ 247,821,184 | |
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, 2010 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 12.13 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.13) | $ 12.87 | |
Class T: | $ 12.14 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.14) | $ 12.58 | |
Class B: | $ 12.04 | |
|
|
|
Class C: | $ 12.03 | |
|
|
|
Institutional Class: | $ 12.18 | |
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, 2010 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,574,287 |
Income from Fidelity Central Funds |
| 40,236 |
Total income |
| 3,614,523 |
|
|
|
Expenses | ||
Management fee | $ 649,382 | |
Transfer agent fees | 399,618 | |
Distribution fees | 361,572 | |
Accounting and security lending fees | 47,501 | |
Custodian fees and expenses | 18,663 | |
Independent trustees' compensation | 646 | |
Registration fees | 58,395 | |
Audit | 24,152 | |
Legal | 676 | |
Miscellaneous | 2,041 | |
Total expenses before reductions | 1,562,646 | |
Expense reductions | (56,128) | 1,506,518 |
Net investment income (loss) | 2,108,005 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 13,774,655 | |
Foreign currency transactions | (29,942) | |
Capital gain distributions from Fidelity Central Funds | 1,624 | |
Total net realized gain (loss) |
| 13,746,337 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 37,663,573 | |
Assets and liabilities in foreign currencies | 1,444 | |
Total change in net unrealized appreciation (depreciation) |
| 37,665,017 |
Net gain (loss) | 51,411,354 | |
Net increase (decrease) in net assets resulting from operations | $ 53,519,359 | |
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, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,108,005 | $ 4,597,200 |
Net realized gain (loss) | 13,746,337 | (79,840,498) |
Change in net unrealized appreciation (depreciation) | 37,665,017 | (44,021,577) |
Net increase (decrease) in net assets resulting from operations | 53,519,359 | (119,264,875) |
Distributions to shareholders from net investment income | (2,209,057) | (5,963,213) |
Distributions to shareholders from net realized gain | - | (564,328) |
Total distributions | (2,209,057) | (6,527,541) |
Share transactions - net increase (decrease) | 17,477,487 | (1,196,796) |
Total increase (decrease) in net assets | 68,787,789 | (126,989,212) |
|
|
|
Net Assets | ||
Beginning of period | 179,033,395 | 306,022,607 |
End of period (including undistributed net investment income of $115,286 and undistributed net investment income of $216,338, respectively) | $ 247,821,184 | $ 179,033,395 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .11 | .27 | .30 | .18 | .29 | .31 |
Net realized and unrealized gain (loss) | 2.73 | (6.86) | (1.24) | (.17) | 2.85 | 5.52 |
Total from investment operations | 2.84 | (6.59) | (.94) | .01 | 3.14 | 5.83 |
Distributions from net investment income | (.12) | (.36) | (.26) | (.18) | (.23) | (.29) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.12) | (.39) | (1.34) I | (1.68) | (1.03) | (.82) |
Net asset value, end of period | $ 12.13 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 |
Total Return B,C,D | 30.17% | (40.19)% | (5.66)% | (.65)% | 18.32% | 45.48% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.29% A | 1.27% | 1.22% | 1.25% | 1.29% | 1.31% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.22% | 1.25% | 1.25% | 1.28% |
Expenses net of all reductions | 1.24% A | 1.25% | 1.21% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | 1.88% A | 2.73% | 1.71% | .81% | 1.59% | 1.98% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 83,778 | $ 62,422 | $ 109,442 | $ 117,831 | $ 85,000 | $ 53,097 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | .25 | .26 | .12 | .24 | .26 |
Net realized and unrealized gain (loss) | 2.72 | (6.87) | (1.24) | (.16) | 2.84 | 5.53 |
Total from investment operations | 2.82 | (6.62) | (.98) | (.04) | 3.08 | 5.79 |
Distributions from net investment income | (.10) | (.33) | (.17) | (.13) | (.20) | (.24) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.10) | (.36) | (1.26) I | (1.63) | (1.00) | (.77) |
Net asset value, end of period | $ 12.14 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 |
Total Return B,C,D | 29.97% | (40.33)% | (5.88)% | (.89)% | 17.98% | 45.12% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.54% A | 1.54% | 1.47% | 1.50% | 1.55% | 1.61% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.47% | 1.50% | 1.50% | 1.57% |
Expenses net of all reductions | 1.49% A | 1.50% | 1.47% | 1.49% | 1.49% | 1.54% |
Net investment income (loss) | 1.63% A | 2.48% | 1.45% | .57% | 1.34% | 1.70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 50,949 | $ 40,276 | $ 81,938 | $ 100,621 | $ 91,224 | $ 66,303 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .20 | .17 | .01 | .15 | .18 |
Net realized and unrealized gain (loss) | 2.69 | (6.81) | (1.23) | (.16) | 2.83 | 5.50 |
Total from investment operations | 2.76 | (6.61) | (1.06) | (.15) | 2.98 | 5.68 |
Distributions from net investment income | (.07) | (.27) | (.10) | (.05) | (.15) | (.17) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.48) | (.80) | (.53) |
Total distributions | (.07) | (.30) | (1.19) I | (1.53) | (.95) | (.70) |
Net asset value, end of period | $ 12.04 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 |
Total Return B,C,D | 29.58% | (40.60)% | (6.37)% | (1.45)% | 17.42% | 44.31% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 2.04% A | 2.04% | 1.96% | 2.02% | 2.05% | 2.10% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 1.96% | 2.00% | 2.00% | 2.07% |
Expenses net of all reductions | 1.99% A | 2.00% | 1.96% | 2.00% | 1.98% | 2.03% |
Net investment income (loss) | 1.13% A | 1.98% | .96% | .07% | .84% | 1.20% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,902 | $ 7,933 | $ 16,879 | $ 25,114 | $ 27,397 | $ 26,349 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .19 | .17 | .01 | .15 | .19 |
Net realized and unrealized gain (loss) | 2.70 | (6.81) | (1.23) | (.16) | 2.84 | 5.50 |
Total from investment operations | 2.77 | (6.62) | (1.06) | (.15) | 2.99 | 5.69 |
Distributions from net investment income | (.08) | (.27) | (.11) | (.05) | (.15) | (.17) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.08) | (.30) | (1.19) I | (1.55) | (.95) | (.70) |
Net asset value, end of period | $ 12.03 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 |
Total Return B,C,D | 29.63% | (40.64)% | (6.35)% | (1.45)% | 17.46% | 44.38% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.01% | 1.96% | 2.01% | 2.05% | 2.09% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 1.96% | 2.00% | 2.00% | 2.05% |
Expenses net of all reductions | 1.99% A | 2.00% | 1.96% | 2.00% | 1.98% | 2.02% |
Net investment income (loss) | 1.13% A | 1.98% | .96% | .06% | .84% | 1.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 20,082 | $ 13,226 | $ 24,984 | $ 36,854 | $ 36,669 | $ 29,410 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .13 | .30 | .34 | .24 | .35 | .36 |
Net realized and unrealized gain (loss) | 2.72 | (6.90) | (1.23) | (.17) | 2.85 | 5.56 |
Total from investment operations | 2.85 | (6.60) | (.89) | .07 | 3.20 | 5.92 |
Distributions from net investment income | (.13) | (.38) | (.35) | (.24) | (.26) | (.34) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.13) | (.41) | (1.44) H | (1.74) | (1.06) | (.87) |
Net asset value, end of period | $ 12.18 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 |
Total Return B,C | 30.17% | (40.03)% | (5.39)% | (.37)% | 18.61% | 46.05% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.01% | .95% | .98% | .94% | .91% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | .95% | .98% | .94% | .91% |
Expenses net of all reductions | .99% A | 1.00% | .95% | .97% | .92% | .88% |
Net investment income (loss) | 2.13% A | 2.98% | 1.97% | 1.09% | 1.90% | 2.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 83,110 | $ 55,177 | $ 72,780 | $ 12,259 | $ 7,152 | $ 4,162 |
Portfolio turnover rate F | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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), capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,026,637 |
Gross unrealized depreciation | (51,937,400) |
Net unrealized appreciation (depreciation) | $ (26,910,763) |
|
|
Tax cost | $ 299,961,963 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Restricted Securities - continued
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 $94,392,031 and $72,525,512, 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 | Service | Paid to | Retained |
Class A | -% | .25% | $ 101,565 | $ 1,957 |
Class T | .25% | .25% | 123,214 | - |
Class B | .75% | .25% | 49,577 | 37,182 |
Class C | .75% | .25% | 87,216 | 11,176 |
|
|
| $ 361,572 | $ 50,315 |
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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
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 |
Class A | $ 22,968 |
Class T | 3,263 |
Class B* | 10,073 |
Class C* | 1,349 |
| $ 37,653 |
* 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 |
Class A | $ 139,464 | .34 |
Class T | 86,275 | .35 |
Class B | 17,102 | .35 |
Class C | 29,452 | .34 |
Institutional Class | 127,325 | .34 |
| $ 399,618 |
|
* 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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 $2,113 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $426 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 $32,748.
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.
Semiannual Report
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 14,478 |
Class T | 1.50% | 11,221 |
Class B | 2.00% | 1,948 |
Class C | 2.00% | 3,137 |
Institutional Class | 1.00% | 12,686 |
|
| $ 43,470 |
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 $12,635 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 $23.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 796,054 | $ 2,373,225 |
Class T | 414,954 | 1,559,018 |
Class B | 61,766 | 251,874 |
Class C | 113,329 | 401,222 |
Institutional Class | 822,954 | 1,377,874 |
Total | $ 2,209,057 | $ 5,963,213 |
From net realized gain |
|
|
Class A | $ - | $ 204,885 |
Class T | - | 150,062 |
Class B | - | 31,214 |
Class C | - | 46,271 |
Institutional Class | - | 131,896 |
Total | $ - | $ 564,328 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,644,994 | 3,043,573 | $ 19,434,268 | $ 29,321,172 |
Reinvestment of distributions | 63,970 | 261,214 | 757,695 | 2,477,765 |
Shares redeemed | (1,432,812) | (3,348,691) | (16,952,543) | (29,451,189) |
Net increase (decrease) | 276,152 | (43,904) | $ 3,239,420 | $ 2,347,748 |
Class T |
|
|
|
|
Shares sold | 754,439 | 1,740,100 | $ 9,143,684 | $ 16,246,028 |
Reinvestment of distributions | 34,175 | 166,425 | 405,045 | 1,591,698 |
Shares redeemed | (866,694) | (2,627,118) | (10,250,911) | (23,368,486) |
Net increase (decrease) | (78,080) | (720,593) | $ (702,182) | $ (5,530,760) |
Class B |
|
|
|
|
Shares sold | 95,302 | 136,838 | $ 1,114,487 | $ 1,421,735 |
Reinvestment of distributions | 4,760 | 27,253 | 56,191 | 256,567 |
Shares redeemed | (126,429) | (353,148) | (1,501,064) | (3,397,456) |
Net increase (decrease) | (26,367) | (189,057) | $ (330,386) | $ (1,719,154) |
Class C |
|
|
|
|
Shares sold | 421,689 | 422,080 | $ 5,161,578 | $ 4,270,150 |
Reinvestment of distributions | 8,691 | 43,425 | 103,500 | 402,486 |
Shares redeemed | (177,223) | (586,087) | (2,088,071) | (5,492,116) |
Net increase (decrease) | 253,157 | (120,582) | $ 3,177,007 | $ (819,480) |
Institutional Class |
|
|
|
|
Shares sold | 2,098,519 | 7,788,306 | $ 25,166,144 | $ 62,314,949 |
Reinvestment of distributions | 31,361 | 54,679 | 377,302 | 559,339 |
Shares redeemed | (1,144,432) | (6,427,386) | (13,449,818) | (58,349,438) |
Net increase (decrease) | 985,448 | 1,415,599 | $ 12,093,628 | $ 4,524,850 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
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.
FIL 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-0310 1.789730.107
(Fidelity Investment logo)(registered trademark)
Fidelity ® Advisor
Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2010
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | 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/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com 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
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The turnaround in global capital markets that marked most of 2009 stalled in early 2010, as investors considered the risks to a sustained recovery, including increased political uncertainty, high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The chairman's signature appears here.)
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, 2009 to January 31, 2010).
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 | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,301.70 | $ 7.25 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.90 | $ 6.36 |
Class T | 1.50% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,299.70 | $ 8.69 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Class B | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,295.80 | $ 11.57 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Class C | 2.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,296.30 | $ 11.58 |
Hypothetical A |
| $ 1,000.00 | $ 1,015.12 | $ 10.16 |
Institutional Class | 1.00% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,301.70 | $ 5.80 |
Hypothetical A |
| $ 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, 2010 | ||
| % of fund's | % of fund's net assets |
Simon Property Group, Inc. | 10.7 | 9.0 |
Ventas, Inc. | 6.4 | 6.3 |
ProLogis Trust | 5.5 | 4.7 |
Vornado Realty Trust | 4.6 | 3.5 |
SL Green Realty Corp. | 4.4 | 3.6 |
Public Storage | 4.2 | 4.8 |
Digital Realty Trust, Inc. | 3.8 | 3.9 |
Equity Residential (SBI) | 3.6 | 2.4 |
HCP, Inc. | 3.2 | 3.2 |
Sunstone Hotel Investors, Inc. | 3.0 | 2.5 |
| 49.4 | |
Top Five REIT Sectors as of January 31, 2010 | ||
| % of fund's | % of fund's net assets |
REITs - Office Buildings | 15.6 | 17.8 |
REITs - Malls | 14.6 | 13.4 |
REITs - Industrial Buildings | 14.3 | 13.0 |
REITs - Apartments | 13.9 | 13.6 |
REITs - Health Care Facilities | 11.4 | 11.4 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2010* | As of July 31, 2009** | ||||||
| Stocks 98.3% |
| | Stocks 96.2% |
| ||
| Convertible |
| | Convertible |
| ||
| Short-Term |
| | Short-Term |
| ||
* Foreign investments | 1.4% |
| ** Foreign investments | 1.6% |
| ||
Semiannual Report
Investments January 31, 2010 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
HEALTH CARE PROVIDERS & SERVICES - 1.7% | |||
Health Care Facilities - 1.7% | |||
Brookdale Senior Living, Inc. (a) | 25,800 | $ 470,850 | |
Emeritus Corp. (a) | 196,088 | 3,568,802 | |
Sunrise Senior Living, Inc. (a) | 74,674 | 221,782 | |
TOTAL HEALTH CARE FACILITIES | 4,261,434 | ||
HOTELS, RESTAURANTS & LEISURE - 0.3% | |||
Hotels, Resorts & Cruise Lines - 0.3% | |||
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 21,400 | 658,264 | |
HOUSEHOLD DURABLES - 0.7% | |||
Homebuilding - 0.7% | |||
D.R. Horton, Inc. | 13,800 | 162,702 | |
Lennar Corp. Class A | 21,900 | 336,384 | |
M/I Homes, Inc. (a) | 14,900 | 153,768 | |
Pulte Homes, Inc. | 67,877 | 714,066 | |
Toll Brothers, Inc. (a) | 16,700 | 308,449 | |
TOTAL HOMEBUILDING | 1,675,369 | ||
REAL ESTATE INVESTMENT TRUSTS - 91.0% | |||
REITs - Apartments - 13.9% | |||
Apartment Investment & Management Co. Class A | 410,247 | 6,301,394 | |
Associated Estates Realty Corp. | 56,700 | 669,627 | |
AvalonBay Communities, Inc. | 43,731 | 3,350,232 | |
Camden Property Trust (SBI) | 69,700 | 2,702,269 | |
Education Realty Trust, Inc. | 215,111 | 1,135,786 | |
Equity Residential (SBI) | 279,181 | 8,947,751 | |
Essex Property Trust, Inc. (c) | 92,100 | 7,339,449 | |
Home Properties, Inc. | 54,800 | 2,429,284 | |
Mid-America Apartment Communities, Inc. | 31,700 | 1,487,364 | |
TOTAL REITS - APARTMENTS | 34,363,156 | ||
REITs - Factory Outlets - 0.3% | |||
Tanger Factory Outlet Centers, Inc. | 17,702 | 677,987 | |
REITs - Health Care Facilities - 11.4% | |||
HCP, Inc. | 282,200 | 8,000,370 | |
Healthcare Realty Trust, Inc. | 154,269 | 3,235,021 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Health Care Facilities - continued | |||
National Health Investors, Inc. | 25,100 | $ 853,902 | |
Omega Healthcare Investors, Inc. | 23,800 | 445,298 | |
Ventas, Inc. | 374,600 | 15,808,120 | |
TOTAL REITS - HEALTH CARE FACILITIES | 28,342,711 | ||
REITs - Hotels - 6.9% | |||
Chesapeake Lodging Trust (a) | 26,100 | 494,595 | |
DiamondRock Hospitality Co. | 699,960 | 5,697,674 | |
Host Hotels & Resorts, Inc. | 318,749 | 3,378,739 | |
Sunstone Hotel Investors, Inc. | 877,866 | 7,540,869 | |
TOTAL REITS - HOTELS | 17,111,877 | ||
REITs - Industrial Buildings - 14.3% | |||
Duke Realty LP | 460,416 | 5,211,909 | |
First Industrial Realty Trust, Inc. (c) | 223,500 | 1,144,320 | |
ProLogis Trust | 1,088,351 | 13,713,223 | |
Public Storage | 132,418 | 10,484,857 | |
U-Store-It Trust | 699,808 | 4,842,671 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 35,396,980 | ||
REITs - Malls - 14.6% | |||
CBL & Associates Properties, Inc. (c) | 440,512 | 4,405,120 | |
Simon Property Group, Inc. | 368,712 | 26,547,264 | |
The Macerich Co. (c) | 164,704 | 5,081,118 | |
TOTAL REITS - MALLS | 36,033,502 | ||
REITs - Management/Investment - 3.8% | |||
Digital Realty Trust, Inc. (c) | 196,700 | 9,441,600 | |
REITs - Office Buildings - 15.6% | |||
Alexandria Real Estate Equities, Inc. (c) | 92,800 | 5,542,944 | |
Boston Properties, Inc. | 108,900 | 7,064,343 | |
Brandywine Realty Trust (SBI) | 377,100 | 4,234,833 | |
Corporate Office Properties Trust (SBI) | 164,200 | 5,860,298 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Office Buildings - continued | |||
Highwoods Properties, Inc. (SBI) | 170,000 | $ 5,135,700 | |
SL Green Realty Corp. | 238,300 | 10,840,267 | |
TOTAL REITS - OFFICE BUILDINGS | 38,678,385 | ||
REITs - Shopping Centers - 10.2% | |||
Acadia Realty Trust (SBI) | 269,800 | 4,297,914 | |
Developers Diversified Realty Corp. | 399,038 | 3,292,064 | |
Kimco Realty Corp. | 394,116 | 4,973,744 | |
Kite Realty Group Trust | 382,610 | 1,450,092 | |
Vornado Realty Trust | 175,525 | 11,352,957 | |
TOTAL REITS - SHOPPING CENTERS | 25,366,771 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 225,412,969 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 4.6% | |||
Real Estate Operating Companies - 2.3% | |||
Brookfield Properties Corp. | 220,900 | 2,650,469 | |
Forest City Enterprises, Inc. Class A (a)(c) | 264,100 | 2,986,971 | |
TOTAL REAL ESTATE OPERATING COMPANIES | 5,637,440 | ||
Real Estate Services - 2.3% | |||
CB Richard Ellis Group, Inc. Class A (a) | 475,523 | 5,848,933 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 11,486,373 | ||
TOTAL COMMON STOCKS (Cost $245,968,544) | 243,494,409 | ||
Convertible Preferred Stocks - 0.3% | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.3% | |||
Real Estate Services - 0.3% | |||
Grubb & Ellis Co.: | |||
12.00% (d) | 5,900 | $ 587,050 | |
12.00% (a)(d) | 2,200 | 218,900 | |
TOTAL REAL ESTATE SERVICES | 805,950 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $810,000) | 805,950 | ||
Money Market Funds - 11.6% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.17% (e) | 3,892,183 | 3,892,183 | |
Fidelity Securities Lending Cash Central Fund, 0.18% (b)(e) | 24,858,658 | 24,858,658 | |
TOTAL MONEY MARKET FUNDS (Cost $28,750,841) | 28,750,841 | ||
TOTAL INVESTMENT PORTFOLIO - 110.2% (Cost $275,529,385) | 273,051,200 | ||
NET OTHER ASSETS - (10.2)% | (25,230,016) | ||
NET ASSETS - 100% | $ 247,821,184 | ||
Legend |
(a) Non-income producing |
(b) Investment made with cash collateral received from securities on loan. |
(c) Security or a portion of the security is on loan at period end. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $805,950 or 0.3% of net assets. |
(e) 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 | $ 7,488 |
Fidelity Securities Lending Cash Central Fund | 32,748 |
Total | $ 40,236 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2010, involving the Fund's assets and liabilities 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: | ||||
Common Stocks | $ 243,494,409 | $ 243,494,409 | $ - | $ - |
Convertible Preferred Stocks | 805,950 | - | 805,950 | - |
Money Market Funds | 28,750,841 | 28,750,841 | - | - |
Total Investments in Securities: | $ 273,051,200 | $ 272,245,250 | $ 805,950 | $ - |
Income Tax Information |
At July 31, 2009, the fund had a capital loss carryforward of approximately $15,429,654 all of which will expire on July 31, 2017. |
The fund intends to elect to defer to its fiscal year ending July 31, 2010 approximately $47,012,174 of losses recognized during the period November 1, 2008 to July 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2010 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $24,105,152) - See accompanying schedule: Unaffiliated issuers (cost $246,778,544) | $ 244,300,359 |
|
Fidelity Central Funds (cost $28,750,841) | 28,750,841 |
|
Total Investments (cost $275,529,385) |
| $ 273,051,200 |
Cash | 27,418 | |
Receivable for investments sold | 1,946,841 | |
Receivable for fund shares sold | 303,155 | |
Dividends receivable | 385,429 | |
Distributions receivable from Fidelity Central Funds | 3,432 | |
Prepaid expenses | 810 | |
Receivable from investment adviser for expense reductions | 6,165 | |
Other receivables | 4,661 | |
Total assets | 275,729,111 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,339,469 | |
Payable for fund shares redeemed | 413,837 | |
Accrued management fee | 120,393 | |
Distribution fees payable | 66,599 | |
Other affiliated payables | 80,094 | |
Other payables and accrued expenses | 28,877 | |
Collateral on securities loaned, at value | 24,858,658 | |
Total liabilities | 27,907,927 | |
|
|
|
Net Assets | $ 247,821,184 | |
Net Assets consist of: |
| |
Paid in capital | $ 324,002,733 | |
Undistributed net investment income | 115,286 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (73,818,328) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (2,478,507) | |
Net Assets | $ 247,821,184 | |
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, 2010 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 12.13 | |
|
|
|
Maximum offering price per share (100/94.25 of $12.13) | $ 12.87 | |
Class T: | $ 12.14 | |
|
|
|
Maximum offering price per share (100/96.50 of $12.14) | $ 12.58 | |
Class B: | $ 12.04 | |
|
|
|
Class C: | $ 12.03 | |
|
|
|
Institutional Class: | $ 12.18 | |
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, 2010 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,574,287 |
Income from Fidelity Central Funds |
| 40,236 |
Total income |
| 3,614,523 |
|
|
|
Expenses | ||
Management fee | $ 649,382 | |
Transfer agent fees | 399,618 | |
Distribution fees | 361,572 | |
Accounting and security lending fees | 47,501 | |
Custodian fees and expenses | 18,663 | |
Independent trustees' compensation | 646 | |
Registration fees | 58,395 | |
Audit | 24,152 | |
Legal | 676 | |
Miscellaneous | 2,041 | |
Total expenses before reductions | 1,562,646 | |
Expense reductions | (56,128) | 1,506,518 |
Net investment income (loss) | 2,108,005 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 13,774,655 | |
Foreign currency transactions | (29,942) | |
Capital gain distributions from Fidelity Central Funds | 1,624 | |
Total net realized gain (loss) |
| 13,746,337 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 37,663,573 | |
Assets and liabilities in foreign currencies | 1,444 | |
Total change in net unrealized appreciation (depreciation) |
| 37,665,017 |
Net gain (loss) | 51,411,354 | |
Net increase (decrease) in net assets resulting from operations | $ 53,519,359 | |
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, 2010 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,108,005 | $ 4,597,200 |
Net realized gain (loss) | 13,746,337 | (79,840,498) |
Change in net unrealized appreciation (depreciation) | 37,665,017 | (44,021,577) |
Net increase (decrease) in net assets resulting from operations | 53,519,359 | (119,264,875) |
Distributions to shareholders from net investment income | (2,209,057) | (5,963,213) |
Distributions to shareholders from net realized gain | - | (564,328) |
Total distributions | (2,209,057) | (6,527,541) |
Share transactions - net increase (decrease) | 17,477,487 | (1,196,796) |
Total increase (decrease) in net assets | 68,787,789 | (126,989,212) |
|
|
|
Net Assets | ||
Beginning of period | 179,033,395 | 306,022,607 |
End of period (including undistributed net investment income of $115,286 and undistributed net investment income of $216,338, respectively) | $ 247,821,184 | $ 179,033,395 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 | $ 13.22 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .11 | .27 | .30 | .18 | .29 | .31 |
Net realized and unrealized gain (loss) | 2.73 | (6.86) | (1.24) | (.17) | 2.85 | 5.52 |
Total from investment operations | 2.84 | (6.59) | (.94) | .01 | 3.14 | 5.83 |
Distributions from net investment income | (.12) | (.36) | (.26) | (.18) | (.23) | (.29) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.12) | (.39) | (1.34) I | (1.68) | (1.03) | (.82) |
Net asset value, end of period | $ 12.13 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 |
Total Return B,C,D | 30.17% | (40.19)% | (5.66)% | (.65)% | 18.32% | 45.48% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.29% A | 1.27% | 1.22% | 1.25% | 1.29% | 1.31% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.22% | 1.25% | 1.25% | 1.28% |
Expenses net of all reductions | 1.24% A | 1.25% | 1.21% | 1.25% | 1.24% | 1.25% |
Net investment income (loss) | 1.88% A | 2.73% | 1.71% | .81% | 1.59% | 1.98% |
Supplemental Data |
|
|
|
|
| |
Net assets, end of period (000 omitted) | $ 83,778 | $ 62,422 | $ 109,442 | $ 117,831 | $ 85,000 | $ 53,097 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 | $ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .10 | .25 | .26 | .12 | .24 | .26 |
Net realized and unrealized gain (loss) | 2.72 | (6.87) | (1.24) | (.16) | 2.84 | 5.53 |
Total from investment operations | 2.82 | (6.62) | (.98) | (.04) | 3.08 | 5.79 |
Distributions from net investment income | (.10) | (.33) | (.17) | (.13) | (.20) | (.24) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.10) | (.36) | (1.26) I | (1.63) | (1.00) | (.77) |
Net asset value, end of period | $ 12.14 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 |
Total Return B,C,D | 29.97% | (40.33)% | (5.88)% | (.89)% | 17.98% | 45.12% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 1.54% A | 1.54% | 1.47% | 1.50% | 1.55% | 1.61% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.47% | 1.50% | 1.50% | 1.57% |
Expenses net of all reductions | 1.49% A | 1.50% | 1.47% | 1.49% | 1.49% | 1.54% |
Net investment income (loss) | 1.63% A | 2.48% | 1.45% | .57% | 1.34% | 1.70% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 50,949 | $ 40,276 | $ 81,938 | $ 100,621 | $ 91,224 | $ 66,303 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 | $ 13.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .20 | .17 | .01 | .15 | .18 |
Net realized and unrealized gain (loss) | 2.69 | (6.81) | (1.23) | (.16) | 2.83 | 5.50 |
Total from investment operations | 2.76 | (6.61) | (1.06) | (.15) | 2.98 | 5.68 |
Distributions from net investment income | (.07) | (.27) | (.10) | (.05) | (.15) | (.17) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.48) | (.80) | (.53) |
Total distributions | (.07) | (.30) | (1.19) I | (1.53) | (.95) | (.70) |
Net asset value, end of period | $ 12.04 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 |
Total Return B,C,D | 29.58% | (40.60)% | (6.37)% | (1.45)% | 17.42% | 44.31% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 2.04% A | 2.04% | 1.96% | 2.02% | 2.05% | 2.10% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 1.96% | 2.00% | 2.00% | 2.07% |
Expenses net of all reductions | 1.99% A | 2.00% | 1.96% | 2.00% | 1.98% | 2.03% |
Net investment income (loss) | 1.13% A | 1.98% | .96% | .07% | .84% | 1.20% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,902 | $ 7,933 | $ 16,879 | $ 25,114 | $ 27,397 | $ 26,349 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 | $ 13.18 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .07 | .19 | .17 | .01 | .15 | .19 |
Net realized and unrealized gain (loss) | 2.70 | (6.81) | (1.23) | (.16) | 2.84 | 5.50 |
Total from investment operations | 2.77 | (6.62) | (1.06) | (.15) | 2.99 | 5.69 |
Distributions from net investment income | (.08) | (.27) | (.11) | (.05) | (.15) | (.17) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.08) | (.30) | (1.19) I | (1.55) | (.95) | (.70) |
Net asset value, end of period | $ 12.03 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 |
Total Return B,C,D | 29.63% | (40.64)% | (6.35)% | (1.45)% | 17.46% | 44.38% |
Ratios to Average Net Assets F,H |
|
|
|
|
| |
Expenses before reductions | 2.03% A | 2.01% | 1.96% | 2.01% | 2.05% | 2.09% |
Expenses net of fee waivers, if any | 2.00% A | 2.00% | 1.96% | 2.00% | 2.00% | 2.05% |
Expenses net of all reductions | 1.99% A | 2.00% | 1.96% | 2.00% | 1.98% | 2.02% |
Net investment income (loss) | 1.13% A | 1.98% | .96% | .06% | .84% | 1.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 20,082 | $ 13,226 | $ 24,984 | $ 36,854 | $ 36,669 | $ 29,410 |
Portfolio turnover rate G | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I 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, 2010 | Years ended July 31, | ||||
(Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 | $ 13.28 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .13 | .30 | .34 | .24 | .35 | .36 |
Net realized and unrealized gain (loss) | 2.72 | (6.90) | (1.23) | (.17) | 2.85 | 5.56 |
Total from investment operations | 2.85 | (6.60) | (.89) | .07 | 3.20 | 5.92 |
Distributions from net investment income | (.13) | (.38) | (.35) | (.24) | (.26) | (.34) |
Distributions from net realized gain | - | (.03) | (1.09) | (1.50) | (.80) | (.53) |
Total distributions | (.13) | (.41) | (1.44) H | (1.74) | (1.06) | (.87) |
Net asset value, end of period | $ 12.18 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 |
Total Return B,C | 30.17% | (40.03)% | (5.39)% | (.37)% | 18.61% | 46.05% |
Ratios to Average Net Assets E,G |
|
|
|
|
| |
Expenses before reductions | 1.04% A | 1.01% | .95% | .98% | .94% | .91% |
Expenses net of fee waivers, if any | 1.00% A | 1.00% | .95% | .98% | .94% | .91% |
Expenses net of all reductions | .99% A | 1.00% | .95% | .97% | .92% | .88% |
Net investment income (loss) | 2.13% A | 2.98% | 1.97% | 1.09% | 1.90% | 2.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 83,110 | $ 55,177 | $ 72,780 | $ 12,259 | $ 7,152 | $ 4,162 |
Portfolio turnover rate F | 66% A | 98% | 86% | 84% | 65% | 62% |
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 reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H 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, 2010 (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 Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, 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. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2010 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.
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. 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), capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,026,637 |
Gross unrealized depreciation | (51,937,400) |
Net unrealized appreciation (depreciation) | $ (26,910,763) |
|
|
Tax cost | $ 299,961,963 |
4. Operating Policies.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Restricted Securities - continued
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 $94,392,031 and $72,525,512, 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 | Service | Paid to | Retained |
Class A | -% | .25% | $ 101,565 | $ 1,957 |
Class T | .25% | .25% | 123,214 | - |
Class B | .75% | .25% | 49,577 | 37,182 |
Class C | .75% | .25% | 87,216 | 11,176 |
|
|
| $ 361,572 | $ 50,315 |
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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
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 |
Class A | $ 22,968 |
Class T | 3,263 |
Class B* | 10,073 |
Class C* | 1,349 |
| $ 37,653 |
* 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 |
Class A | $ 139,464 | .34 |
Class T | 86,275 | .35 |
Class B | 17,102 | .35 |
Class C | 29,452 | .34 |
Institutional Class | 127,325 | .34 |
| $ 399,618 |
|
* 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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 $2,113 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 $426 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 $32,748.
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.
Semiannual Report
9. Expense Reductions - continued
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.25% | $ 14,478 |
Class T | 1.50% | 11,221 |
Class B | 2.00% | 1,948 |
Class C | 2.00% | 3,137 |
Institutional Class | 1.00% | 12,686 |
|
| $ 43,470 |
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 $12,635 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 $23.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 796,054 | $ 2,373,225 |
Class T | 414,954 | 1,559,018 |
Class B | 61,766 | 251,874 |
Class C | 113,329 | 401,222 |
Institutional Class | 822,954 | 1,377,874 |
Total | $ 2,209,057 | $ 5,963,213 |
From net realized gain |
|
|
Class A | $ - | $ 204,885 |
Class T | - | 150,062 |
Class B | - | 31,214 |
Class C | - | 46,271 |
Institutional Class | - | 131,896 |
Total | $ - | $ 564,328 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, | Year ended | Six months ended January 31, | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,644,994 | 3,043,573 | $ 19,434,268 | $ 29,321,172 |
Reinvestment of distributions | 63,970 | 261,214 | 757,695 | 2,477,765 |
Shares redeemed | (1,432,812) | (3,348,691) | (16,952,543) | (29,451,189) |
Net increase (decrease) | 276,152 | (43,904) | $ 3,239,420 | $ 2,347,748 |
Class T |
|
|
|
|
Shares sold | 754,439 | 1,740,100 | $ 9,143,684 | $ 16,246,028 |
Reinvestment of distributions | 34,175 | 166,425 | 405,045 | 1,591,698 |
Shares redeemed | (866,694) | (2,627,118) | (10,250,911) | (23,368,486) |
Net increase (decrease) | (78,080) | (720,593) | $ (702,182) | $ (5,530,760) |
Class B |
|
|
|
|
Shares sold | 95,302 | 136,838 | $ 1,114,487 | $ 1,421,735 |
Reinvestment of distributions | 4,760 | 27,253 | 56,191 | 256,567 |
Shares redeemed | (126,429) | (353,148) | (1,501,064) | (3,397,456) |
Net increase (decrease) | (26,367) | (189,057) | $ (330,386) | $ (1,719,154) |
Class C |
|
|
|
|
Shares sold | 421,689 | 422,080 | $ 5,161,578 | $ 4,270,150 |
Reinvestment of distributions | 8,691 | 43,425 | 103,500 | 402,486 |
Shares redeemed | (177,223) | (586,087) | (2,088,071) | (5,492,116) |
Net increase (decrease) | 253,157 | (120,582) | $ 3,177,007 | $ (819,480) |
Institutional Class |
|
|
|
|
Shares sold | 2,098,519 | 7,788,306 | $ 25,166,144 | $ 62,314,949 |
Reinvestment of distributions | 31,361 | 54,679 | 377,302 | 559,339 |
Shares redeemed | (1,144,432) | (6,427,386) | (13,449,818) | (58,349,438) |
Net increase (decrease) | 985,448 | 1,415,599 | $ 12,093,628 | $ 4,524,850 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
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.
FIL 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-0310 1.789731.107
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: | March 26, 2010 |
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: | March 26, 2010 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 26, 2010 |