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, 2011 |
Item 1. Reports to Stockholders
Fidelity Advisor
Focus Funds®
Class A, Class T, Class B and Class C
Fidelity Advisor® Biotechnology Fund
Fidelity Advisor Communications Equipment Fund
Fidelity Advisor Consumer Discretionary Fund
Fidelity Advisor Electronics Fund
Fidelity Advisor Energy Fund
Fidelity Advisor Financial Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Industrials Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Fidelity Advisor® Biotechnology Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Communications Equipment Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Consumer Discretionary Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Electronics Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Energy Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Financial Services Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Health Care Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Industrials Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Technology Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Utilities Fund | 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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
Semiannual Report
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,137.90 | $ 7.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,135.40 | $ 8.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,134.50 | $ 11.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.70 | $ 11.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,139.70 | $ 6.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Amgen, Inc. | 18.4 | 14.3 |
Alexion Pharmaceuticals, Inc. | 6.7 | 6.9 |
Vertex Pharmaceuticals, Inc. | 6.1 | 3.4 |
United Therapeutics Corp. | 4.4 | 3.7 |
Genzyme Corp. | 4.1 | 6.3 |
Dendreon Corp. | 4.1 | 2.7 |
Biogen Idec, Inc. | 3.2 | 2.4 |
Gilead Sciences, Inc. | 2.8 | 10.6 |
InterMune, Inc. | 2.7 | 0.5 |
Human Genome Sciences, Inc. | 2.6 | 2.6 |
| 55.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
 | Biotechnology | 91.7% |
|
 | Pharmaceuticals | 7.8% |
|
 | Health Care Equipment & Supplies | 0.0% |
|
 | All Others* | 0.5% |
|
As of July 31, 2010 | |||
| Biotechnology | 92.8% |
|
| Pharmaceuticals | 6.2% |
|
 | Health Care Equipment & Supplies | 0.1% |
|
| All Others* | 0.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 91.7% | |||
Biotechnology - 91.7% | |||
Acadia Pharmaceuticals, Inc. (a) | 9,074 | $ 15,426 | |
Acorda Therapeutics, Inc. (a) | 65,316 | 1,433,686 | |
Affymax, Inc. (a) | 4,506 | 30,010 | |
Agenus, Inc. (a)(d) | 21,100 | 19,623 | |
Alexion Pharmaceuticals, Inc. (a) | 45,195 | 3,788,245 | |
Alkermes, Inc. (a) | 37,961 | 490,077 | |
Allos Therapeutics, Inc. (a)(d) | 106,050 | 356,328 | |
Alnylam Pharmaceuticals, Inc. (a) | 13,498 | 139,367 | |
AMAG Pharmaceuticals, Inc. (a) | 12,800 | 227,840 | |
Amarin Corp. PLC ADR (a) | 28,200 | 250,416 | |
Amgen, Inc. (a) | 189,376 | 10,430,825 | |
Amylin Pharmaceuticals, Inc. (a) | 37,784 | 611,345 | |
Antigenics, Inc. warrants 1/9/18 (a)(e) | 452,000 | 140,079 | |
ARIAD Pharmaceuticals, Inc. (a) | 46,380 | 295,673 | |
ArQule, Inc. (a) | 12,366 | 75,804 | |
AVEO Pharmaceuticals, Inc. | 12,900 | 184,857 | |
Biogen Idec, Inc. (a) | 27,426 | 1,795,580 | |
BioMarin Pharmaceutical, Inc. (a) | 58,273 | 1,481,300 | |
Bionovo, Inc. (a) | 113,700 | 94,371 | |
Bionovo, Inc. warrants 1/27/16 (a) | 59,500 | 36,890 | |
Catalyst Pharmaceutical Partners, Inc. (a) | 61,320 | 72,358 | |
Celera Corp. (a) | 1,500 | 9,278 | |
Celgene Corp. (a) | 115 | 5,926 | |
Cephalon, Inc. (a) | 13,094 | 773,594 | |
Cepheid, Inc. (a) | 23,300 | 553,608 | |
Chelsea Therapeutics International Ltd. (a) | 54,836 | 326,823 | |
Clinical Data, Inc. (a)(d) | 42,713 | 1,270,285 | |
Cubist Pharmaceuticals, Inc. (a) | 9,092 | 199,478 | |
Dendreon Corp. (a) | 66,633 | 2,334,820 | |
Dynavax Technologies Corp. (a) | 50,600 | 151,800 | |
Enzon Pharmaceuticals, Inc. (a) | 3,900 | 43,680 | |
Exelixis, Inc. (a)(d) | 62,132 | 538,684 | |
Genomic Health, Inc. (a) | 4,800 | 106,896 | |
Genzyme Corp. (a) | 31,832 | 2,334,877 | |
Gilead Sciences, Inc. (a) | 40,856 | 1,568,053 | |
Halozyme Therapeutics, Inc. (a) | 39,000 | 260,130 | |
Human Genome Sciences, Inc. (a) | 61,708 | 1,497,036 | |
ImmunoGen, Inc. (a) | 5,300 | 43,778 | |
Incyte Corp. (a)(d) | 62,138 | 915,914 | |
Inhibitex, Inc. (a) | 34,000 | 77,350 | |
InterMune, Inc. (a) | 40,417 | 1,510,383 | |
Ironwood Pharmaceuticals, Inc. Class A | 4,700 | 50,713 | |
Isis Pharmaceuticals, Inc. (a) | 500 | 4,550 | |
Keryx Biopharmaceuticals, Inc. (a) | 20,600 | 82,400 | |
Lexicon Pharmaceuticals, Inc. (a) | 226,211 | 382,297 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 500 | 4,350 | |
Martek Biosciences (a) | 11,400 | 358,074 | |
Medivation, Inc. (a)(d) | 16,813 | 236,727 | |
Metabolix, Inc. (a) | 100 | 885 | |
| |||
Shares | Value | ||
Micromet, Inc. (a) | 16,100 | $ 103,523 | |
Momenta Pharmaceuticals, Inc. (a)(d) | 14,529 | 185,826 | |
Myrexis, Inc. (a) | 302 | 1,187 | |
Myriad Genetics, Inc. (a) | 16,335 | 326,047 | |
Neurocrine Biosciences, Inc. (a) | 34,106 | 251,702 | |
NPS Pharmaceuticals, Inc. (a) | 67,400 | 674,337 | |
ONYX Pharmaceuticals, Inc. (a) | 25,195 | 889,006 | |
OREXIGEN Therapeutics, Inc. (a) | 30,600 | 278,154 | |
PDL BioPharma, Inc. | 153,888 | 760,207 | |
Pharmasset, Inc. (a) | 17,942 | 869,469 | |
Progenics Pharmaceuticals, Inc. (a) | 33,006 | 184,339 | |
Protalix BioTherapeutics, Inc. (a)(d) | 30,290 | 294,722 | |
Regeneron Pharmaceuticals, Inc. (a) | 17,049 | 574,210 | |
Rigel Pharmaceuticals, Inc. (a) | 25,577 | 172,005 | |
Sangamo Biosciences, Inc. (a)(d) | 23,828 | 182,522 | |
Savient Pharmaceuticals, Inc. (a) | 29,055 | 268,178 | |
Seattle Genetics, Inc. (a)(d) | 36,221 | 593,662 | |
SIGA Technologies, Inc. (a)(d) | 45,212 | 518,808 | |
Theratechnologies, Inc. (a) | 23,600 | 139,087 | |
Theravance, Inc. (a)(d) | 42,878 | 902,153 | |
United Therapeutics Corp. (a) | 36,976 | 2,513,628 | |
Vertex Pharmaceuticals, Inc. (a) | 89,073 | 3,464,049 | |
ZIOPHARM Oncology, Inc. (a) | 19,900 | 116,117 | |
Zogenix, Inc. | 36,863 | 185,790 | |
| 52,061,217 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.0% | |||
Health Care Equipment - 0.0% | |||
Alsius Corp. (a) | 14,200 | 0 | |
Aradigm Corp. (a) | 21,800 | 3,706 | |
| 3,706 | ||
PHARMACEUTICALS - 7.8% | |||
Pharmaceuticals - 7.8% | |||
Adolor Corp. (a) | 182,099 | 256,760 | |
Akorn, Inc. (a) | 15,479 | 77,395 | |
Ardea Biosciences, Inc. (a) | 3,300 | 87,516 | |
Auxilium Pharmaceuticals, Inc. (a)(d) | 38,858 | 881,688 | |
AVANIR Pharmaceuticals Class A (a)(d) | 174,980 | 708,669 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 12,500 | 97,063 | |
Corcept Therapeutics, Inc. (a) | 71,400 | 289,170 | |
Elan Corp. PLC sponsored ADR (a) | 75,450 | 509,288 | |
Jazz Pharmaceuticals, Inc. (a) | 17,235 | 385,375 | |
NuPathe, Inc. | 900 | 6,588 | |
Optimer Pharmaceuticals, Inc. (a) | 32,588 | 358,468 | |
Questcor Pharmaceuticals, Inc. (a) | 7,818 | 120,866 | |
The Medicines Company (a) | 1,500 | 23,520 | |
ViroPharma, Inc. (a) | 26,188 | 429,483 | |
XenoPort, Inc. (a) | 22,443 | 176,851 | |
| 4,408,700 | ||
TOTAL COMMON STOCKS (Cost $45,705,035) | 56,473,623 | ||
Money Market Funds - 8.6% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.19% (b) | 1,003,588 | $ 1,003,588 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 3,887,750 | 3,887,750 | |
TOTAL MONEY MARKET FUNDS (Cost $4,891,338) | 4,891,338 | ||
TOTAL INVESTMENT PORTFOLIO - 108.1% (Cost $50,596,373) | 61,364,961 | |
NET OTHER ASSETS (LIABILITIES) - (8.1)% | (4,615,172) | |
NET ASSETS - 100% | $ 56,749,789 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $140,079 or 0.2% of net assets. |
Additional information on each restricted 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 | $ 313 |
Fidelity Securities Lending Cash Central Fund | 39,093 |
Total | $ 39,406 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 56,473,623 | $ 56,296,654 | $ 176,969 | $ - |
Money Market Funds | 4,891,338 | 4,891,338 | - | - |
Total Investments in Securities: | $ 61,364,961 | $ 61,187,992 | $ 176,969 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $3,491,594 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $2,681,229 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,867,242) - See accompanying schedule: Unaffiliated issuers (cost $45,705,035) | $ 56,473,623 |
|
Fidelity Central Funds (cost $4,891,338) | 4,891,338 |
|
Total Investments (cost $50,596,373) |
| $ 61,364,961 |
Receivable for investments sold | 454,580 | |
Receivable for fund shares sold | 81,439 | |
Distributions receivable from Fidelity Central Funds | 8,185 | |
Prepaid expenses | 131 | |
Other receivables | 1,080 | |
Total assets | 61,910,376 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,062,216 | |
Payable for fund shares redeemed | 112,078 | |
Accrued management fee | 32,498 | |
Distribution and service plan fees payable | 25,431 | |
Other affiliated payables | 15,410 | |
Other payables and accrued expenses | 25,204 | |
Collateral on securities loaned, at value | 3,887,750 | |
Total liabilities | 5,160,587 | |
|
| |
Net Assets | $ 56,749,789 | |
Net Assets consist of: |
| |
Paid in capital | $ 53,714,783 | |
Accumulated net investment loss | (339,289) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,394,293) | |
Net unrealized appreciation (depreciation) on investments | 10,768,588 | |
Net Assets | $ 56,749,789 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.59) | $ 8.05 | |
Class T: | $ 7.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.38) | $ 7.65 | |
Class B: | $ 7.00 | |
|
|
|
Class C: | $ 7.00 | |
|
|
|
Institutional Class: | $ 7.83 | |
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
Fidelity Advisor Biotechnology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Special dividends |
| $ 76,944 |
Interest |
| 1 |
Income from Fidelity Central Funds (including $39,093 from security lending) |
| 39,406 |
Total income |
| 116,351 |
|
|
|
Expenses | ||
Management fee | $ 151,079 | |
Transfer agent fees | 83,152 | |
Distribution and service plan fees | 146,174 | |
Accounting and security lending fees | 10,888 | |
Custodian fees and expenses | 10,730 | |
Independent trustees' compensation | 152 | |
Registration fees | 49,481 | |
Audit | 22,894 | |
Legal | 194 | |
Miscellaneous | 304 | |
Total expenses before reductions | 475,048 | |
Expense reductions | (19,408) | 455,640 |
Net investment income (loss) | (339,289) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 264,009 | |
Foreign currency transactions | (34) | |
Total net realized gain (loss) |
| 263,975 |
Change in net unrealized appreciation (depreciation) on investment securities | 6,909,262 | |
Net gain (loss) | 7,173,237 | |
Net increase (decrease) in net assets resulting from operations | $ 6,833,948 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (339,289) | $ (784,049) |
Net realized gain (loss) | 263,975 | (2,345,490) |
Change in net unrealized appreciation (depreciation) | 6,909,262 | 88,127 |
Net increase (decrease) in net assets resulting from operations | 6,833,948 | (3,041,412) |
Share transactions - net increase (decrease) | (2,647,170) | 684,738 |
Redemption fees | 254 | 1,690 |
Total increase (decrease) in net assets | 4,187,032 | (2,354,984) |
|
|
|
Net Assets | ||
Beginning of period | 52,562,757 | 54,917,741 |
End of period (including accumulated net investment loss of $339,289 and $0, respectively) | $ 56,749,789 | $ 52,562,757 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.08) I | (.08) | (.09) J | (.09) | (.09) |
Net realized and unrealized gain (loss) | .95 | (.19) | (.79) | 1.20 | .51 | .10 |
Total from investment operations | .92 | (.27) | (.87) | 1.11 | .42 | .01 |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.59 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 |
Total Return B, C, D | 13.79% | (3.89)% | (11.14)% | 15.95% | 6.17% | .15% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.46% A | 1.39% | 1.40% | 1.37% | 1.42% | 1.48% |
Expenses net of fee waivers, if any | 1.40% A | 1.39% | 1.40% | 1.37% | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.38% | 1.40% | 1.37% | 1.40% | 1.37% |
Net investment income (loss) | (.96)% A, H | (1.15)% I | (1.27)% | (1.24)% J | (1.25)% | (1.29)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 21,923 | $ 20,154 | $ 19,858 | $ 18,249 | $ 13,081 | $ 12,539 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.25)%. 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 (1.29)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) H | (.09) I | (.09) | (.11) J | (.11) | (.11) |
Net realized and unrealized gain (loss) | .92 | (.19) | (.78) | 1.18 | .51 | .10 |
Total from investment operations | .88 | (.28) | (.87) | 1.07 | .40 | (.01) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.38 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 |
Total Return B, C, D | 13.54% | (4.13)% | (11.37)% | 15.64% | 5.96% | (.15)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.76% A | 1.69% | 1.71% | 1.69% | 1.75% | 1.79% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.62% |
Net investment income (loss) | (1.21)% A, H | (1.41)% I | (1.52)% | (1.53)% J | (1.49)% | (1.54)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 13,338 | $ 11,684 | $ 13,356 | $ 15,123 | $ 13,008 | $ 13,808 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.50)%. 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 (1.55)%. JInvestment 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)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) I | (.12) | (.14) J | (.14) | (.14) |
Net realized and unrealized gain (loss) | .89 | (.18) | (.75) | 1.13 | .50 | .10 |
Total from investment operations | .83 | (.30) | (.87) | .99 | .36 | (.04) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.00 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Total Return B, C, D | 13.45% | (4.64)% | (11.85)% | 14.96% | 5.52% | (.61)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.21% A | 2.14% | 2.15% | 2.12% | 2.17% | 2.23% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.12% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15% A | 2.13% | 2.15% | 2.12% | 2.15% | 2.12% |
Net investment income (loss) | (1.72)% A, H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% | (2.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,549 | $ 6,297 | $ 7,377 | $ 11,044 | $ 12,656 | $ 14,938 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (2.00)%. 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 (2.04)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) I | (.12) | (.13) J | (.14) | (.14) |
Net realized and unrealized gain (loss) | .88 | (.17) | (.75) | 1.12 | .50 | .09 |
Total from investment operations | .82 | (.29) | (.87) | .99 | .36 | (.05) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.00 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Total Return B, C, D | 13.27% | (4.48)% | (11.85)% | 14.96% | 5.52% | (.76)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.21% A | 2.14% | 2.15% | 2.12% | 2.16% | 2.17% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.12% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15% A | 2.13% | 2.15% | 2.12% | 2.15% | 2.12% |
Net investment income (loss) | (1.72)% A, H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% | (2.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,236 | $ 11,421 | $ 12,426 | $ 13,323 | $ 11,813 | $ 13,787 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (2.00)%. 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 (2.04)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. 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 nd do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.06) H | (.06) | (.07) I | (.07) | (.07) |
Net realized and unrealized gain (loss) | .99 | (.19) | (.82) | 1.23 | .53 | .09 |
Total from investment operations | .96 | (.25) | (.88) | 1.16 | .46 | .02 |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 7.83 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 |
Total Return B, C | 13.97% | (3.51)% | (11.00)% | 16.35% | 6.66% | .29% |
Ratios to Average Net Assets E, J |
|
|
|
|
|
|
Expenses before reductions | 1.15% A | 1.07% | 1.11% | 1.06% | 1.06% | 1.05% |
Expenses net of fee waivers, if any | 1.15% A | 1.07% | 1.11% | 1.06% | 1.06% | 1.05% |
Expenses net of all reductions | 1.15% A | 1.06% | 1.11% | 1.06% | 1.06% | 1.03% |
Net investment income (loss) | (.72)% A, G | (.83)% H | (.98)% | (.94)% I | (.91)% | (.94)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,705 | $ 3,008 | $ 1,901 | $ 1,117 | $ 991 | $ 1,268 |
Portfolio turnover rate F | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.00)%. 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 (.97)%. 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 (1.02)%. 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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 13,205,480 |
Gross unrealized depreciation | (3,107,036) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 10,098,444 |
| |
Tax cost | $ 51,266,517 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 $23,522,379 and $26,296,062, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service |
Total | Retained |
Class A | -% | .25% | $ 26,356 | $ 127 |
Class T | .25% | .25% | 31,126 | - |
Class B | .75% | .25% | 29,863 | 22,397 |
Class C | .75% | .25% | 58,829 | 8,677 |
|
|
| $ 146,174 | $ 31,201 |
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% 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 | $ 4,017 |
Class T | 2,843 |
Class B* | 7,129 |
Class C* | 375 |
| $ 14,364 |
* 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
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, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 31,565 | .30 |
Class T | 21,577 | .35 |
Class B | 9,016 | .30 |
Class C | 17,578 | .30 |
Institutional Class | 3,416 | .24 |
| $ 83,152 |
|
* 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 $337 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $96 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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% | $ 6,295 |
Class T | 1.65% | 6,726 |
Class B | 2.15% | 1,757 |
Class C | 2.15% | 3,491 |
|
| $ 18,269 |
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 $1,139 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 | 295,918 | 1,118,865 | $ 2,157,139 | $ 7,975,997 |
Shares redeemed | (429,664) | (959,085) | (3,073,057) | (6,583,930) |
Net increase (decrease) | (133,746) | 159,780 | $ (915,918) | $ 1,392,067 |
Class T |
|
|
|
|
Shares sold | 173,128 | 412,827 | $ 1,245,880 | $ 2,848,621 |
Shares redeemed | (165,478) | (585,419) | (1,151,771) | (3,906,373) |
Net increase (decrease) | 7,650 | (172,592) | $ 94,109 | $ (1,057,752) |
Class B |
|
|
|
|
Shares sold | 32,957 | 304,652 | $ 195,804 | $ 1,993,007 |
Shares redeemed | (260,303) | (424,638) | (1,717,863) | (2,696,945) |
Net increase (decrease) | (227,346) | (119,986) | $ (1,522,059) | $ (703,938) |
Class C |
|
|
|
|
Shares sold | 102,060 | 489,582 | $ 688,646 | $ 3,216,700 |
Shares redeemed | (204,052) | (559,923) | (1,347,836) | (3,577,484) |
Net increase (decrease) | (101,992) | (70,341) | $ (659,190) | $ (360,784) |
Institutional Class |
|
|
|
|
Shares sold | 174,957 | 453,122 | $ 1,362,263 | $ 3,410,559 |
Shares redeemed | (139,544) | (282,175) | (1,006,375) | (1,995,414) |
Net increase (decrease) | 35,413 | 170,947 | $ 355,888 | $ 1,415,145 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,267.60 | $ 8.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,267.10 | $ 9.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,264.30 | $ 12.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,263.00 | $ 12.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,270.30 | $ 6.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Cisco Systems, Inc. | 16.3 | 8.7 |
QUALCOMM, Inc. | 13.2 | 11.4 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 7.5 | 8.6 |
Juniper Networks, Inc. | 4.7 | 4.6 |
HTC Corp. | 4.5 | 1.2 |
Motorola Mobility Holdings, Inc. | 3.5 | 0.0 |
Adtran, Inc. | 2.7 | 2.3 |
Ciena Corp. | 2.6 | 0.1 |
Alcatel-Lucent SA sponsored ADR | 2.5 | 0.0 |
Apple, Inc. | 2.4 | 2.4 |
| 59.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Communications Equipment | 81.3% |
|
 | Semiconductors & Semiconductor Equipment | 4.5% |
|
 | Electronic Equipment & Components | 3.4% |
|
 | Software | 3.3% |
|
 | Computers & Peripherals | 2.7% |
|
| All Others* | 4.8% |
|
As of July 31, 2010 | |||
| Communications Equipment | 79.5% |
|
| Semiconductors & Semiconductor Equipment | 4.8% |
|
| Computers & Peripherals | 4.3% |
|
| Wireless Telecommunication Services | 3.9% |
|
| Electronic Equipment & Components | 2.6% |
|
| All Others* | 4.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 81.2% | |||
Communications Equipment - 81.2% | |||
Acme Packet, Inc. (a) | 5,971 | $ 321,120 | |
Adtran, Inc. | 15,883 | 653,268 | |
ADVA AG Optical Networking (a) | 15,658 | 135,689 | |
Alcatel-Lucent SA sponsored ADR (a) | 182,857 | 605,257 | |
Arris Group, Inc. (a) | 6,771 | 84,502 | |
Aruba Networks, Inc. (a) | 11,440 | 246,532 | |
Aviat Networks, Inc. (a) | 5,667 | 29,412 | |
BigBand Networks, Inc. (a) | 29,453 | 78,050 | |
Blue Coat Systems, Inc. (a) | 2,600 | 74,906 | |
Brocade Communications Systems, Inc. (a) | 26,759 | 150,921 | |
Calix Networks, Inc. (a)(d) | 6,700 | 109,210 | |
Ceragon Networks Ltd. (a) | 3,115 | 38,346 | |
China Wireless Technologies Ltd. | 116,000 | 64,124 | |
Ciena Corp. (a)(d) | 28,309 | 623,647 | |
Cisco Systems, Inc. (a) | 185,474 | 3,922,773 | |
Comverse Technology, Inc. (a) | 906 | 5,943 | |
DG FastChannel, Inc. (a) | 2,700 | 74,007 | |
Digi International, Inc. (a) | 2,700 | 28,593 | |
DragonWave, Inc. (a) | 7,900 | 56,186 | |
EchoStar Holding Corp. Class A (a) | 2,120 | 57,770 | |
EMCORE Corp. (a)(d) | 4,600 | 6,348 | |
Emulex Corp. (a) | 10,300 | 117,523 | |
Extreme Networks, Inc. (a) | 5,400 | 17,712 | |
F5 Networks, Inc. (a) | 3,130 | 339,229 | |
Finisar Corp. (a) | 3,962 | 131,935 | |
Harmonic, Inc. (a) | 11,860 | 100,098 | |
Harris Corp. | 9,200 | 428,168 | |
HTC Corp. | 32,400 | 1,092,273 | |
Infinera Corp. (a) | 2,800 | 20,538 | |
Ixia (a) | 6,496 | 102,182 | |
JDS Uniphase Corp. (a) | 19,073 | 323,669 | |
Juniper Networks, Inc. (a) | 30,588 | 1,135,427 | |
Motorola Mobility Holdings, Inc. | 30,241 | 842,817 | |
Motorola Solutions, Inc. | 1,247 | 48,346 | |
Nokia Corp. sponsored ADR (d) | 32,365 | 346,306 | |
Oclaro, Inc. (a) | 4,275 | 59,337 | |
Oplink Communications, Inc. (a) | 754 | 18,684 | |
Opnext, Inc. (a) | 9,601 | 17,858 | |
Polycom, Inc. (a) | 7,600 | 333,260 | |
QUALCOMM, Inc. | 58,720 | 3,178,514 | |
Research In Motion Ltd. (a) | 700 | 41,377 | |
Riverbed Technology, Inc. (a) | 11,558 | 414,585 | |
Sandvine Corp. (a) | 56,400 | 162,600 | |
Sandvine Corp. (U.K.) (a) | 18,930 | 55,026 | |
ShoreTel, Inc. (a) | 46,476 | 352,288 | |
Sierra Wireless, Inc. (a) | 7,800 | 110,249 | |
Sycamore Networks, Inc. | 6,100 | 127,246 | |
Tekelec (a) | 17,360 | 199,206 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 146,120 | 1,807,504 | |
| |||
Shares | Value | ||
Tellabs, Inc. | 13,800 | $ 73,140 | |
ZTE Corp. (H Shares) | 48,250 | 190,294 | |
| 19,553,995 | ||
COMPUTERS & PERIPHERALS - 2.7% | |||
Computer Hardware - 2.4% | |||
Apple, Inc. (a) | 1,723 | 584,648 | |
Computer Storage & Peripherals - 0.3% | |||
Novatel Wireless, Inc. (a) | 8,298 | 59,829 | |
TOTAL COMPUTERS & PERIPHERALS | 644,477 | ||
ELECTRICAL EQUIPMENT - 0.0% | |||
Electrical Components & Equipment - 0.0% | |||
A123 Systems, Inc. (a) | 100 | 906 | |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.4% | |||
Electronic Components - 1.5% | |||
Corning, Inc. | 10,400 | 230,984 | |
E Ink Holdings, Inc. (a) | 16,000 | 29,146 | |
Universal Display Corp. (a) | 2,800 | 94,752 | |
| 354,882 | ||
Electronic Manufacturing Services - 1.9% | |||
Jabil Circuit, Inc. | 2,400 | 48,504 | |
SMART Modular Technologies (WWH), Inc. (a) | 4,416 | 29,852 | |
Trimble Navigation Ltd. (a) | 8,219 | 378,732 | |
| 457,088 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 811,970 | ||
INTERNET SOFTWARE & SERVICES - 0.4% | |||
Internet Software & Services - 0.4% | |||
Akamai Technologies, Inc. (a) | 345 | 16,670 | |
Equinix, Inc. (a) | 300 | 26,526 | |
Limelight Networks, Inc. (a) | 2,465 | 15,369 | |
Rackspace Hosting, Inc. (a) | 600 | 20,106 | |
Tencent Holdings Ltd. | 1,100 | 28,499 | |
| 107,170 | ||
IT SERVICES - 0.1% | |||
Data Processing & Outsourced Services - 0.1% | |||
Amadeus IT Holding SA Class A (a) | 700 | 14,681 | |
NeuStar, Inc. Class A (a) | 700 | 18,781 | |
| 33,462 | ||
IT Consulting & Other Services - 0.0% | |||
Yucheng Technologies Ltd. (a) | 1,200 | 4,500 | |
TOTAL IT SERVICES | 37,962 | ||
MEDIA - 0.8% | |||
Advertising - 0.5% | |||
VisionChina Media, Inc. ADR (a)(d) | 24,800 | 107,880 | |
Common Stocks - continued | |||
Shares | Value | ||
MEDIA - CONTINUED | |||
Cable & Satellite - 0.3% | |||
Virgin Media, Inc. | 3,050 | $ 76,738 | |
TOTAL MEDIA | 184,618 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.5% | |||
Semiconductors - 4.5% | |||
Applied Micro Circuits Corp. (a) | 2,758 | 27,139 | |
Avago Technologies Ltd. | 4,800 | 137,808 | |
Cavium Networks, Inc. (a) | 2,499 | 98,810 | |
Cirrus Logic, Inc. (a)(d) | 4,832 | 101,617 | |
Conexant Systems, Inc. (a) | 1,280 | 2,675 | |
CSR PLC (a) | 2,483 | 15,339 | |
Entropic Communications, Inc. (a) | 200 | 2,194 | |
Exar Corp. (a) | 143 | 918 | |
Ikanos Communications, Inc. (a) | 3,985 | 4,782 | |
Infineon Technologies AG | 1,076 | 11,373 | |
Inphi Corp. | 2,400 | 45,432 | |
Marvell Technology Group Ltd. (a) | 2,300 | 43,723 | |
Netlogic Microsystems, Inc. (a) | 2,102 | 73,276 | |
Omnivision Technologies, Inc. (a) | 600 | 15,498 | |
ON Semiconductor Corp. (a) | 7,285 | 80,499 | |
Pericom Semiconductor Corp. (a) | 1,700 | 17,051 | |
Pixelplus Co. Ltd. ADR (a) | 900 | 1,620 | |
PLX Technology, Inc. (a) | 900 | 2,894 | |
PMC-Sierra, Inc. (a) | 3,100 | 24,242 | |
Spreadtrum Communications, Inc. ADR (a)(d) | 13,500 | 290,250 | |
Standard Microsystems Corp. (a) | 1,200 | 28,860 | |
TriQuint Semiconductor, Inc. (a) | 5,000 | 65,800 | |
| 1,091,800 | ||
SOFTWARE - 3.3% | |||
Application Software - 2.1% | |||
AsiaInfo Holdings, Inc. (a) | 3,300 | 70,818 | |
AutoNavi Holdings Ltd. ADR | 5,700 | 93,252 | |
BroadSoft, Inc. (a) | 5,200 | 144,092 | |
KongZhong Corp. sponsored ADR (a) | 100 | 703 | |
NetScout Systems, Inc. (a) | 1,200 | 27,504 | |
Smith Micro Software, Inc. (a) | 1,868 | 23,574 | |
SolarWinds, Inc. (a) | 1,929 | 36,458 | |
Synchronoss Technologies, Inc. (a) | 3,447 | 98,102 | |
Taleo Corp. Class A (a) | 100 | 2,946 | |
TeleNav, Inc. | 300 | 3,150 | |
| 500,599 | ||
Home Entertainment Software - 0.1% | |||
Giant Interactive Group, Inc. ADR | 2,000 | 13,920 | |
Systems Software - 1.1% | |||
Allot Communications Ltd. (a) | 3,700 | 43,253 | |
Fortinet, Inc. (a) | 3,150 | 121,118 | |
| |||
Shares | Value | ||
Opnet Technologies, Inc. | 2,881 | $ 82,368 | |
TeleCommunication Systems, Inc. Class A (a) | 6,977 | 28,536 | |
| 275,275 | ||
TOTAL SOFTWARE | 789,794 | ||
WIRELESS TELECOMMUNICATION SERVICES - 1.9% | |||
Wireless Telecommunication Services - 1.9% | |||
American Tower Corp. Class A (a) | 2,490 | 126,641 | |
Crown Castle International Corp. (a) | 2,900 | 122,293 | |
Leap Wireless International, Inc. (a) | 300 | 4,194 | |
SBA Communications Corp. Class A (a) | 3,552 | 144,922 | |
SOFTBANK CORP. | 800 | 27,515 | |
Sprint Nextel Corp. (a) | 5,000 | 22,600 | |
| 448,165 | ||
TOTAL COMMON STOCKS (Cost $19,391,141) | 23,670,857 | ||
Convertible Bonds - 0.1% | |||
| Principal Amount |
| |
COMMUNICATIONS EQUIPMENT - 0.1% | |||
Communications Equipment - 0.1% | |||
Ciena Corp. 0.25% 5/1/13 | $ 20,000 | 19,240 | |
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 1,416,355 | 1,416,355 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 639,075 | 639,075 | |
TOTAL MONEY MARKET FUNDS (Cost $2,055,430) | 2,055,430 | ||
TOTAL INVESTMENT PORTFOLIO - 106.9% (Cost $21,466,571) | 25,745,527 | |
NET OTHER ASSETS (LIABILITIES) - (6.9)% | (1,670,053) | |
NET ASSETS - 100% | $ 24,075,474 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 358 |
Fidelity Securities Lending Cash Central Fund | 1,354 |
Total | $ 1,712 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 23,670,857 | $ 23,670,857 | $ - | $ - |
Convertible Bonds | 19,240 | - | 19,240 | - |
Money Market Funds | 2,055,430 | 2,055,430 | - | - |
Total Investments in Securities: | $ 25,745,527 | $ 25,726,287 | $ 19,240 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 76.7% |
Sweden | 7.5% |
Taiwan | 4.6% |
Cayman Islands | 2.7% |
France | 2.5% |
Canada | 1.8% |
Finland | 1.4% |
Others (Individually Less Than 1%) | 2.8% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,187,448 of which $207,917, $393,298 and $586,233 will expire in fiscal 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $615,181) - See accompanying schedule: Unaffiliated issuers (cost $19,411,141) | $ 23,690,097 |
|
Fidelity Central Funds (cost $2,055,430) | 2,055,430 |
|
Total Investments (cost $21,466,571) |
| $ 25,745,527 |
Cash | 10,691 | |
Receivable for fund shares sold | 227,040 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 401 | |
Prepaid expenses | 37 | |
Receivable from investment adviser for expense reductions | 962 | |
Other receivables | 562 | |
Total assets | 25,985,232 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,135,446 | |
Payable for fund shares redeemed | 86,359 | |
Accrued management fee | 9,974 | |
Distribution and service plan fees payable | 8,888 | |
Other affiliated payables | 5,221 | |
Other payables and accrued expenses | 24,795 | |
Collateral on securities loaned, at value | 639,075 | |
Total liabilities | 1,909,758 | |
|
| |
Net Assets | $ 24,075,474 | |
Net Assets consist of: |
| |
Paid in capital | $ 19,672,818 | |
Accumulated net investment loss | (113,011) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 236,711 | |
Net unrealized appreciation (depreciation) on investments | 4,278,956 | |
Net Assets | $ 24,075,474 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.99 | |
|
|
|
Maximum offering price per share (100/94.25 of $10.99) | $ 11.66 | |
Class T: | $ 10.72 | |
|
|
|
Maximum offering price per share (100/96.50 of $10.72) | $ 11.11 | |
Class B: | $ 10.19 | |
|
|
|
Class C: | $ 10.18 | |
|
|
|
Institutional Class: | $ 11.28 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 23,927 |
Interest |
| 29 |
Income from Fidelity Central Funds (including $1,354 from security lending) |
| 1,712 |
Total income |
| 25,668 |
|
|
|
Expenses | ||
Management fee | $ 47,244 | |
Transfer agent fees | 25,603 | |
Distribution and service plan fees | 42,838 | |
Accounting and security lending fees | 3,381 | |
Custodian fees and expenses | 6,067 | |
Independent trustees' compensation | 44 | |
Registration fees | 47,586 | |
Audit | 24,147 | |
Legal | 51 | |
Miscellaneous | 75 | |
Total expenses before reductions | 197,036 | |
Expense reductions | (58,357) | 138,679 |
Net investment income (loss) | (113,011) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,611,475 | |
Foreign currency transactions | (1,315) | |
Total net realized gain (loss) |
| 1,610,160 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,442,677 | |
Assets and liabilities in foreign currencies | (5) | |
Total change in net unrealized appreciation (depreciation) | 2,442,672 | |
Net gain (loss) | 4,052,832 | |
Net increase (decrease) in net assets resulting from operations | $ 3,939,821 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (113,011) | $ (225,209) |
Net realized gain (loss) | 1,610,160 | 955,330 |
Change in net unrealized appreciation (depreciation) | 2,442,672 | 1,311,875 |
Net increase (decrease) in net assets resulting from operations | 3,939,821 | 2,041,996 |
Share transactions - net increase (decrease) | 5,848,259 | 1,341,807 |
Redemption fees | 376 | 1,464 |
Total increase (decrease) in net assets | 9,788,456 | 3,385,267 |
|
|
|
Net Assets | ||
Beginning of period | 14,287,018 | 10,901,751 |
End of period (including accumulated net investment loss of $113,011 and undistributed net investment income of $0, respectively) | $ 24,075,474 | $ 14,287,018 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.11) | .02 H | (.08) | (.09) | (.09) |
Net realized and unrealized gain (loss) | 2.37 | 1.50 | (.56) | (1.45) | 2.29 | (.32) |
Total from investment operations | 2.32 | 1.39 | (.54) | (1.53) | 2.20 | (.41) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.99 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 |
Total Return B, C, D | 26.76% | 19.09% | (6.91)% | (16.43)% | 30.18% | (5.32)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.07% A | 1.90% | 3.15% | 2.25% | 2.24% | 2.13% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.38% | 1.40% | 1.39% | 1.40% | 1.32% |
Net investment income (loss) | (1.08)% A | (1.32)% | .26% H | (.91)% | (1.00)% | (1.05)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,629 | $ 4,860 | $ 3,476 | $ 2,459 | $ 2,825 | $ 3,145 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.13) | - H, J | (.10) | (.11) | (.11) |
Net realized and unrealized gain (loss) | 2.32 | 1.46 | (.55) | (1.42) | 2.26 | (.31) |
Total from investment operations | 2.26 | 1.33 | (.55) | (1.52) | 2.15 | (.42) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.72 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 |
Total Return B, C, D | 26.71% | 18.65% | (7.16)% | (16.59)% | 29.90% | (5.52)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.37% A | 2.20% | 3.52% | 2.62% | 2.57% | 2.51% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.63% | 1.65% | 1.65% | 1.64% | 1.57% |
Net investment income (loss) | (1.33)% A | (1.57)% | .01% H | (1.16)% | (1.25)% | (1.30)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,936 | $ 3,273 | $ 2,396 | $ 2,138 | $ 3,271 | $ 2,932 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.16) | (.03) H | (.14) | (.14) | (.14) |
Net realized and unrealized gain (loss) | 2.21 | 1.39 | (.53) | (1.36) | 2.18 | (.31) |
Total from investment operations | 2.13 | 1.23 | (.56) | (1.50) | 2.04 | (.45) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 |
Total Return B, C, D | 26.43% | 18.01% | (7.58)% | (16.94)% | 29.18% | (6.05)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.83% A | 2.68% | 3.98% | 3.03% | 3.00% | 2.94% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.15% | 2.15% | 2.15% | 2.07% |
Net investment income (loss) | (1.83)% A | (2.07)% | (.49)% H | (1.67)% | (1.75)% | (1.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,822 | $ 1,408 | $ 1,281 | $ 1,219 | $ 2,225 | $ 2,406 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.08) | (.16) | (.03) H | (.14) | (.14) | (.15) |
Net realized and unrealized gain (loss) | 2.20 | 1.40 | (.53) | (1.37) | 2.18 | (.30) |
Total from investment operations | 2.12 | 1.24 | (.56) | (1.51) | 2.04 | (.45) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.18 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 |
Total Return B, C, D | 26.30% | 18.18% | (7.59)% | (17.06)% | 29.18% | (6.05)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.82% A | 2.67% | 3.63% | 3.02% | 2.98% | 2.86% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.15% | 2.15% | 2.15% | 2.07% |
Net investment income (loss) | (1.83)% A | (2.07)% | (.49)% H | (1.67)% | (1.75)% | (1.81)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,857 | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 | $ 1,768 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.04) | (.09) | .03 G | (.06) | (.07) | (.07) |
Net realized and unrealized gain (loss) | 2.44 | 1.52 | (.56) | (1.47) | 2.33 | (.33) |
Total from investment operations | 2.40 | 1.43 | (.53) | (1.53) | 2.26 | (.40) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.28 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 |
Total Return B, C | 27.03% | 19.19% | (6.64)% | (16.16)% | 30.58% | (5.13)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.75% A | 1.54% | 2.44% | 1.94% | 1.87% | 1.70% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.14% A | 1.13% | 1.15% | 1.14% | 1.15% | 1.07% |
Net investment income (loss) | (.83)% A | (1.07)% | .51% G | (.66)% | (.75)% | (.80)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,832 | $ 1,717 | $ 957 | $ 229 | $ 324 | $ 379 |
Portfolio turnover rate F | 95% A | 106% | 97% | 63% | 58% | 174% |
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.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices 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.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to 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 | $ 4,758,760 |
Gross unrealized depreciation | (642,639) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,116,121 |
| |
Tax cost | $ 21,629,406 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $13,325,574 and $8,029,166, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 7,528 | $ 284 |
Class T | .25% | .25% | 9,674 | - |
Class B | .75% | .25% | 7,928 | 5,946 |
Class C | .75% | .25% | 17,708 | 3,257 |
|
|
| $ 42,838 | $ 9,487 |
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% 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 | $ 4,115 |
Class T | 1,942 |
Class B* | 786 |
Class C* | 507 |
| $ 7,350 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 8,993 | .30 |
Class T | 6,661 | .34 |
Class B | 2,392 | .30 |
Class C | 5,276 | .30 |
Institutional Class | 2,281 | .24 |
| $ 25,603 |
|
* Annualized
Semiannual Report
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 $1,128 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $28 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
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% | $ 20,290 |
Class T | 1.65% | 14,045 |
Class B | 2.15% | 5,457 |
Class C | 2.15% | 11,993 |
Institutional Class | 1.15% | 5,765 |
|
| $ 57,550 |
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 $807 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 381,170 | 379,066 | $ 4,007,558 | $ 3,104,413 |
Shares redeemed | (66,126) | (295,518) | (650,278) | (2,391,964) |
Net increase (decrease) | 315,044 | 83,548 | $ 3,357,280 | $ 712,449 |
Class T |
|
|
|
|
Shares sold | 107,443 | 156,340 | $ 1,065,170 | $ 1,239,925 |
Shares redeemed | (33,931) | (105,545) | (315,486) | (829,604) |
Net increase (decrease) | 73,512 | 50,795 | $ 749,684 | $ 410,321 |
Class B |
|
|
|
|
Shares sold | 31,305 | 104,878 | $ 290,191 | $ 798,141 |
Shares redeemed | (27,114) | (117,849) | (244,569) | (896,172) |
Net increase (decrease) | 4,191 | (12,971) | $ 45,622 | $ (98,031) |
Class C |
|
|
|
|
Shares sold | 161,535 | 234,346 | $ 1,572,441 | $ 1,790,479 |
Shares redeemed | (60,582) | (267,515) | (545,385) | (1,967,047) |
Net increase (decrease) | 100,953 | (33,169) | $ 1,027,056 | $ (176,568) |
Institutional Class |
|
|
|
|
Shares sold | 99,583 | 263,129 | $ 1,068,885 | $ 2,147,225 |
Shares redeemed | (41,910) | (198,313) | (400,268) | (1,653,589) |
Net increase (decrease) | 57,673 | 64,816 | $ 668,617 | $ 493,636 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.50 | $ 7.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.50 | $ 9.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.40 | $ 11.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.00 | $ 11.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.07% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,208.00 | $ 5.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.81 | $ 5.45 |
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
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Lowe's Companies, Inc. | 5.7 | 5.8 |
The Walt Disney Co. | 5.5 | 5.7 |
McDonald's Corp. | 4.3 | 6.1 |
Target Corp. | 3.6 | 4.2 |
Amazon.com, Inc. | 3.3 | 3.6 |
News Corp. Class A | 3.0 | 0.0 |
DIRECTV | 2.9 | 3.4 |
Bed Bath & Beyond, Inc. | 2.8 | 2.2 |
TJX Companies, Inc. | 2.6 | 1.8 |
Starbucks Corp. | 2.2 | 1.9 |
| 35.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Specialty Retail | 24.6% |
|
| Media | 24.1% |
|
| Hotels, Restaurants & Leisure | 19.4% |
|
| Textiles, Apparel & Luxury Goods | 4.5% |
|
| Automobiles | 4.5% |
|
| All Others* | 22.9% |
|
As of July 31, 2010 | |||
| Media | 26.6% |
|
| Specialty Retail | 21.8% |
|
| Hotels, Restaurants & Leisure | 21.4% |
|
| Multiline Retail | 5.5% |
|
| Household Durables | 4.8% |
|
| All Others* | 19.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value | ||
AUTO COMPONENTS - 4.4% | |||
Auto Parts & Equipment - 4.4% | |||
Autoliv, Inc. | 13,000 | $ 998,400 | |
Tenneco, Inc. (a) | 21,017 | 868,633 | |
TRW Automotive Holdings Corp. (a) | 15,971 | 952,830 | |
| 2,819,863 | ||
AUTOMOBILES - 4.0% | |||
Automobile Manufacturers - 4.0% | |||
Bayerische Motoren Werke AG (BMW) | 4,160 | 319,378 | |
Ford Motor Co. (a) | 53,292 | 850,007 | |
General Motors Co. | 37,700 | 1,375,673 | |
| 2,545,058 | ||
DISTRIBUTORS - 0.3% | |||
Distributors - 0.3% | |||
Li & Fung Ltd. | 28,000 | 181,536 | |
DIVERSIFIED CONSUMER SERVICES - 3.0% | |||
Education Services - 1.5% | |||
DeVry, Inc. | 8,668 | 451,689 | |
Grand Canyon Education, Inc. (a) | 27,756 | 502,106 | |
| 953,795 | ||
Specialized Consumer Services - 1.5% | |||
Sotheby's Class A (ltd. vtg.) | 15,100 | 608,530 | |
Steiner Leisure Ltd. (a) | 7,605 | 337,054 | |
| 945,584 | ||
TOTAL DIVERSIFIED CONSUMER SERVICES | 1,899,379 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.2% | |||
Technology Distributors - 0.2% | |||
Funtalk China Holdings Ltd. (a) | 22,200 | 132,534 | |
FOOD & STAPLES RETAILING - 1.9% | |||
Drug Retail - 0.1% | |||
Droga Raia SA | 3,000 | 47,136 | |
Hypermarkets & Super Centers - 1.8% | |||
BJ's Wholesale Club, Inc. (a) | 5,179 | 227,565 | |
Costco Wholesale Corp. | 13,522 | 971,420 | |
| 1,198,985 | ||
TOTAL FOOD & STAPLES RETAILING | 1,246,121 | ||
HOTELS, RESTAURANTS & LEISURE - 19.4% | |||
Casinos & Gaming - 3.8% | |||
Betfair Group PLC | 11,200 | 164,137 | |
Las Vegas Sands Corp. unit | 1,010 | 796,951 | |
MGM Mirage, Inc. (a)(d) | 28,547 | 423,352 | |
Pinnacle Entertainment, Inc. (a) | 20,000 | 301,600 | |
WMS Industries, Inc. (a) | 17,813 | 747,255 | |
| 2,433,295 | ||
Hotels, Resorts & Cruise Lines - 4.6% | |||
Accor SA | 8,553 | 391,083 | |
| |||
Shares | Value | ||
Carnival Corp. unit | 8,500 | $ 380,035 | |
China Lodging Group Ltd. ADR | 9,848 | 197,255 | |
Club Mediterranee SA (a) | 600 | 13,763 | |
Starwood Hotels & Resorts Worldwide, Inc. | 19,221 | 1,133,462 | |
Wyndham Worldwide Corp. | 29,253 | 822,887 | |
| 2,938,485 | ||
Restaurants - 11.0% | |||
BJ's Restaurants, Inc. (a) | 12,000 | 423,960 | |
Bravo Brio Restaurant Group, Inc. | 6,900 | 112,470 | |
Darden Restaurants, Inc. | 19,573 | 922,084 | |
McDonald's Corp. | 37,400 | 2,755,258 | |
P.F. Chang's China Bistro, Inc. (d) | 10,593 | 487,702 | |
Ruth's Hospitality Group, Inc. (a) | 56,219 | 261,981 | |
Starbucks Corp. | 45,539 | 1,435,845 | |
Texas Roadhouse, Inc. Class A (a) | 40,300 | 669,786 | |
| 7,069,086 | ||
TOTAL HOTELS, RESTAURANTS & LEISURE | 12,440,866 | ||
HOUSEHOLD DURABLES - 2.5% | |||
Home Furnishings - 1.1% | |||
Tempur-Pedic International, Inc. (a) | 16,230 | 708,277 | |
Homebuilding - 1.4% | |||
Lennar Corp. Class A | 35,811 | 693,301 | |
Toll Brothers, Inc. (a) | 10,600 | 214,544 | |
| 907,845 | ||
TOTAL HOUSEHOLD DURABLES | 1,616,122 | ||
INTERNET & CATALOG RETAIL - 4.2% | |||
Internet Retail - 4.2% | |||
Amazon.com, Inc. (a) | 12,600 | 2,137,464 | |
Expedia, Inc. | 21,500 | 540,940 | |
Ocado Group PLC (a) | 4,900 | 17,109 | |
| 2,695,513 | ||
INTERNET SOFTWARE & SERVICES - 0.5% | |||
Internet Software & Services - 0.5% | |||
eBay, Inc. (a) | 10,600 | 321,816 | |
LEISURE EQUIPMENT & PRODUCTS - 0.7% | |||
Leisure Products - 0.7% | |||
Polaris Industries, Inc. | 5,600 | 430,752 | |
MEDIA - 24.1% | |||
Advertising - 2.8% | |||
Interpublic Group of Companies, Inc. (a) | 50,625 | 541,181 | |
Lamar Advertising Co. Class A (a) | 15,916 | 586,345 | |
National CineMedia, Inc. | 38,668 | 682,104 | |
| 1,809,630 | ||
Broadcasting - 0.7% | |||
Scripps Networks Interactive, Inc. Class A | 10,091 | 469,232 | |
Common Stocks - continued | |||
Shares | Value | ||
MEDIA - CONTINUED | |||
Cable & Satellite - 11.4% | |||
Comcast Corp.: | |||
Class A | 44,000 | $ 1,001,000 | |
Class A (special) (non-vtg.) | 37,588 | 805,887 | |
DIRECTV (a) | 43,595 | 1,847,992 | |
Kabel Deutschland Holding AG | 13,483 | 679,263 | |
Sirius XM Radio, Inc. (a) | 263,600 | 425,714 | |
Time Warner Cable, Inc. | 18,639 | 1,264,283 | |
Virgin Media, Inc. (d) | 50,542 | 1,271,637 | |
| 7,295,776 | ||
Movies & Entertainment - 8.5% | |||
News Corp. Class A | 128,461 | 1,929,484 | |
The Walt Disney Co. | 90,927 | 3,534,332 | |
| 5,463,816 | ||
Publishing - 0.7% | |||
United Business Media Ltd. | 40,300 | 453,439 | |
TOTAL MEDIA | 15,491,893 | ||
MULTILINE RETAIL - 4.0% | |||
Department Stores - 0.4% | |||
Nordstrom, Inc. | 3,819 | 157,266 | |
Retail Ventures, Inc. (a) | 7,499 | 113,085 | |
| 270,351 | ||
General Merchandise Stores - 3.6% | |||
Target Corp. | 41,716 | 2,287,288 | |
TOTAL MULTILINE RETAIL | 2,557,639 | ||
PROFESSIONAL SERVICES - 0.3% | |||
Research & Consulting Services - 0.3% | |||
Nielsen Holdings B.V. (a) | 7,700 | 200,739 | |
SPECIALTY RETAIL - 24.6% | |||
Apparel Retail - 6.1% | |||
Chico's FAS, Inc. | 35,000 | 382,200 | |
Citi Trends, Inc. (a) | 21,796 | 499,128 | |
DSW, Inc. Class A (a) | 2,500 | 83,225 | |
Fast Retailing Co. Ltd. | 1,100 | 160,149 | |
Inditex SA | 4,292 | 324,283 | |
TJX Companies, Inc. | 34,934 | 1,655,522 | |
Urban Outfitters, Inc. (a) | 23,978 | 810,936 | |
| 3,915,443 | ||
| |||
Shares | Value | ||
Automotive Retail - 2.0% | |||
Advance Auto Parts, Inc. | 18,320 | $ 1,171,381 | |
Lentuo International, Inc. ADR | 14,100 | 99,969 | |
| 1,271,350 | ||
Computer & Electronics Retail - 1.8% | |||
Best Buy Co., Inc. | 18,900 | 642,600 | |
Carphone Warehouse Group PLC (a) | 3,700 | 23,882 | |
hhgregg, Inc. (a)(d) | 26,831 | 491,812 | |
| 1,158,294 | ||
Home Improvement Retail - 8.5% | |||
Home Depot, Inc. | 32,489 | 1,194,621 | |
Lowe's Companies, Inc. | 146,923 | 3,643,688 | |
Lumber Liquidators Holdings, Inc. (a)(d) | 20,925 | 584,645 | |
| 5,422,954 | ||
Homefurnishing Retail - 2.8% | |||
Bed Bath & Beyond, Inc. (a) | 37,506 | 1,800,288 | |
Specialty Stores - 3.4% | |||
Hengdeli Holdings Ltd. | 530,000 | 298,417 | |
Office Depot, Inc. (a) | 21,200 | 111,300 | |
OfficeMax, Inc. (a) | 42,393 | 681,256 | |
Tractor Supply Co. | 16,234 | 832,967 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 7,600 | 281,504 | |
| 2,205,444 | ||
TOTAL SPECIALTY RETAIL | 15,773,773 | ||
TEXTILES, APPAREL & LUXURY GOODS - 4.5% | |||
Apparel, Accessories & Luxury Goods - 3.0% | |||
China Xiniya Fashion Ltd. ADR | 12,300 | 72,201 | |
Phillips-Van Heusen Corp. | 9,182 | 535,953 | |
Polo Ralph Lauren Corp. Class A | 5,792 | 620,787 | |
Titan Industries Ltd. | 4,661 | 366,279 | |
Vera Bradley, Inc. (d) | 9,700 | 333,632 | |
| 1,928,852 | ||
Footwear - 1.5% | |||
Iconix Brand Group, Inc. (a) | 19,600 | 389,060 | |
NIKE, Inc. Class B | 7,300 | 602,104 | |
| 991,164 | ||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 2,920,016 | ||
TOTAL COMMON STOCKS (Cost $56,294,513) | 63,273,620 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
AUTOMOBILES - 0.5% | |||
Automobile Manufacturers - 0.5% | |||
Volkswagen AG | 1,900 | 306,930 | |
Money Market Funds - 4.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.19% (b) | 323,073 | $ 323,073 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 2,829,006 | 2,829,006 | |
TOTAL MONEY MARKET FUNDS (Cost $3,152,079) | 3,152,079 | ||
TOTAL INVESTMENT PORTFOLIO - 104.0% (Cost $59,763,323) | 66,732,629 | |
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (2,572,523) | |
NET ASSETS - 100% | $ 64,160,106 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 693 |
Fidelity Securities Lending Cash Central Fund | 4,549 |
Total | $ 5,242 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 63,273,620 | $ 62,476,669 | $ 796,951 | $ - |
Nonconvertible Preferred Stocks | 306,930 | 306,930 | - | - |
Money Market Funds | 3,152,079 | 3,152,079 | - | - |
Total Investments in Securities: | $ 66,732,629 | $ 65,935,678 | $ 796,951 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $2,978,434 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,798,998) - See accompanying schedule: Unaffiliated issuers (cost $56,611,244) | $ 63,580,550 |
|
Fidelity Central Funds (cost $3,152,079) | 3,152,079 |
|
Total Investments (cost $59,763,323) |
| $ 66,732,629 |
Receivable for investments sold | 1,474,711 | |
Receivable for fund shares sold | 182,785 | |
Dividends receivable | 25,546 | |
Distributions receivable from Fidelity Central Funds | 630 | |
Prepaid expenses | 119 | |
Other receivables | 3,048 | |
Total assets | 68,419,468 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 797,710 | |
Payable for fund shares redeemed | 519,881 | |
Accrued management fee | 33,382 | |
Distribution and service plan fees payable | 25,309 | |
Other affiliated payables | 15,759 | |
Other payables and accrued expenses | 38,315 | |
Collateral on securities loaned, at value | 2,829,006 | |
Total liabilities | 4,259,362 | |
|
| |
Net Assets | $ 64,160,106 | |
Net Assets consist of: |
| |
Paid in capital | $ 57,569,180 | |
Accumulated net investment loss | (104,574) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (267,853) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 6,963,353 | |
Net Assets | $ 64,160,106 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.37 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.37) | $ 16.31 | |
Class T: | $ 14.84 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.84) | $ 15.38 | |
Class B: | $ 13.72 | |
|
|
|
Class C: | $ 13.74 | |
|
|
|
|
|
|
Institutional Class: | $ 16.03 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 320,172 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 5,242 |
Total income |
| 325,416 |
|
|
|
Expenses | ||
Management fee | $ 151,843 | |
Transfer agent fees | 74,290 | |
Distribution and service plan fees | 125,894 | |
Accounting and security lending fees | 10,799 | |
Custodian fees and expenses | 15,373 | |
Independent trustees' compensation | 151 | |
Registration fees | 40,326 | |
Audit | 23,085 | |
Legal | 160 | |
Miscellaneous | 283 | |
Total expenses before reductions | 442,204 | |
Expense reductions | (12,214) | 429,990 |
Net investment income (loss) | (104,574) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $322) | 3,132,829 | |
Foreign currency transactions | 388 | |
Total net realized gain (loss) |
| 3,133,217 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $5,993) | 6,283,384 | |
Assets and liabilities in foreign currencies | 35 | |
Total change in net unrealized appreciation (depreciation) | 6,283,419 | |
Net gain (loss) | 9,416,636 | |
Net increase (decrease) in net assets resulting from operations | $ 9,312,062 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (104,574) | $ (139,360) |
Net realized gain (loss) | 3,133,217 | 6,027,146 |
Change in net unrealized appreciation (depreciation) | 6,283,419 | 1,905,033 |
Net increase (decrease) in net assets resulting from operations | 9,312,062 | 7,792,819 |
Distributions to shareholders from net investment income | - | (6,476) |
Share transactions - net increase (decrease) | 5,461,195 | 9,354,979 |
Redemption fees | 1,216 | 1,671 |
Total increase (decrease) in net assets | 14,774,473 | 17,142,993 |
|
|
|
Net Assets | ||
Beginning of period | 49,385,633 | 32,242,640 |
End of period (including accumulated net investment loss of $104,574 and undistributed net investment income of $0, respectively) | $ 64,160,106 | $ 49,385,633 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | (.02) | .04 | .02 | .02 H | (.04) |
Net realized and unrealized gain (loss) | 2.63 | 2.51 | (1.16) | (3.09) | 1.83 | (.07) |
Total from investment operations | 2.62 | 2.49 | (1.12) | (3.07) | 1.85 | (.11) |
Distributions from net investment income | - | - | (.03) | - | (.05) | - |
Distributions from net realized gain | - | - | - | (1.41) | (2.30) | (.12) |
Total distributions | - | - | (.03) | (1.41) | (2.35) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.37 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 |
Total Return B, C, D | 20.55% | 24.27% | (9.81)% | (21.24)% | 11.67% | (.69)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.44% A | 1.44% | 1.62% | 1.40% | 1.42% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.39% | 1.40% | 1.40% | 1.39% | 1.39% |
Net investment income (loss) | (.19)% A | (.15)% | .42% | .15% | .11% H | (.23)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,932 | $ 19,423 | $ 13,010 | $ 11,899 | $ 19,708 | $ 16,935 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.05) | .01 | (.01) | (.02) H | (.07) |
Net realized and unrealized gain (loss) | 2.55 | 2.43 | (1.12) | (3.00) | 1.79 | (.07) |
Total from investment operations | 2.52 | 2.38 | (1.11) | (3.01) | 1.77 | (.14) |
Distributions from net investment income | - | - | (.02) | - | (.03) | - |
Distributions from net realized gain | - | - | - | (1.39) | (2.30) | (.12) |
Total distributions | - | - | (.02) | (1.39) | (2.33) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.84 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 |
Total Return B, C, D | 20.45% | 23.94% | (10.04)% | (21.41)% | 11.43% | (.89)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.70% A | 1.71% | 1.89% | 1.64% | 1.69% | 1.69% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.64% | 1.65% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.64% | 1.65% | 1.62% | 1.61% | 1.62% |
Net investment income (loss) | (.43)% A | (.40)% | .17% | (.08)% | (.10)% H | (.46)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,543 | $ 8,018 | $ 6,738 | $ 9,095 | $ 14,787 | $ 14,267 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.03) | (.07) | (.10) H | (.15) |
Net realized and unrealized gain (loss) | 2.36 | 2.26 | (1.06) | (2.81) | 1.70 | (.07) |
Total from investment operations | 2.30 | 2.16 | (1.09) | (2.88) | 1.60 | (.22) |
Distributions from net realized gain | - | - | - | (1.33) | (2.30) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.72 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 |
Total Return B, C, D | 20.14% | 23.33% | (10.53)% | (21.80)% | 10.82% | (1.45)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.19% A | 2.21% | 2.38% | 2.14% | 2.20% | 2.19% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.14% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.14% | 2.15% | 2.14% | 2.15% | 2.14% |
Net investment income (loss) | (.93)% A | (.90)% | (.33)% | (.60)% | (.64)% H | (.98)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,871 | $ 3,643 | $ 3,550 | $ 5,090 | $ 11,081 | $ 14,088 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.03) | (.07) | (.10) H | (.15) |
Net realized and unrealized gain (loss) | 2.36 | 2.27 | (1.07) | (2.81) | 1.71 | (.07) |
Total from investment operations | 2.30 | 2.17 | (1.10) | (2.88) | 1.61 | (.22) |
Distributions from net realized gain | - | - | - | (1.34) | (2.30) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 |
Total Return B, C, D | 20.10% | 23.41% | (10.61)% | (21.77)% | 10.88% | (1.45)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.15% A | 2.12% | 2.38% | 2.15% | 2.16% | 2.12% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.15% | 2.12% |
Expenses net of all reductions | 2.13% A | 2.11% | 2.15% | 2.14% | 2.15% | 2.12% |
Net investment income (loss) | (.93)% A | (.87)% | (.33)% | (.60)% | (.64)% H | (.95)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 16,150 | $ 9,288 | $ 2,955 | $ 3,430 | $ 8,051 | $ 7,160 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .02 | .06 | .06 | .06 G | - I |
Net realized and unrealized gain (loss) | 2.75 | 2.60 | (1.20) | (3.22) | 1.89 | (.07) |
Total from investment operations | 2.76 | 2.62 | (1.14) | (3.16) | 1.95 | (.07) |
Distributions from net investment income | - | (.01) | (.04) | - | (.06) | - |
Distributions from net realized gain | - | - | - | (1.41) | (2.30) | (.12) |
Total distributions | - | (.01) | (.04) | (1.41) | (2.36) | (.12) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.03 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 |
Total Return B, C | 20.80% | 24.62% | (9.59)% | (21.09)% | 12.04% | (.44)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.07% A | 1.09% | 1.15% | 1.14% | 1.15% | 1.18% |
Expenses net of fee waivers, if any | 1.07% A | 1.09% | 1.15% | 1.14% | 1.15% | 1.15% |
Expenses net of all reductions | 1.06% A | 1.08% | 1.15% | 1.14% | 1.14% | 1.14% |
Net investment income (loss) | .14% A | .16% | .67% | .40% | .36% G | .02% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,665 | $ 9,013 | $ 5,990 | $ 398 | $ 1,385 | $ 1,144 |
Portfolio turnover rate F | 153% A | 163% | 99% | 63% | 164% | 81% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on realized short term capital gains on securities of certain issuers domiciled in India. An estimated deferred tax liability for net unrealized gains on these securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 7,968,597 |
Gross unrealized depreciation | (1,279,851) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,688,746 |
| |
Tax cost | $ 60,043,883 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,382,110 and $41,145,991, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 26,965 | $ 118 |
Class T | .25% | .25% | 23,211 | - |
Class B | .75% | .25% | 19,231 | 14,423 |
Class C | .75% | .25% | 56,487 | 6,934 |
|
|
| $ 125,894 | $ 21,475 |
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% 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 | $ 12,143 |
Class T | 4,052 |
Class B* | 2,456 |
Class C* | 434 |
| $ 19,085 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 32,060 | .30 |
Class T | 14,392 | .31 |
Class B | 5,803 | .30 |
Class C | 14,356 | .25 |
Institutional Class | 7,679 | .18 |
| $ 74,290 |
|
* 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 $1,958 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $93 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,549. During the period, there were no securities loaned to FCM.
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% | $ 3,956 |
Class T | 1.65% | 2,379 |
Class B | 2.15% | 847 |
|
| $ 7,182 |
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 $5,032 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 |
|
|
Institutional Class | $ - | $ 6,476 |
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, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 418,946 | 790,157 | $ 6,166,452 | $ 9,916,430 |
Shares redeemed | (385,297) | (535,046) | (5,398,504) | (6,621,987) |
Net increase (decrease) | 33,649 | 255,111 | $ 767,948 | $ 3,294,443 |
Class T |
|
|
|
|
Shares sold | 147,307 | 124,293 | $ 2,144,996 | $ 1,532,286 |
Shares redeemed | (87,438) | (151,532) | (1,245,949) | (1,774,930) |
Net increase (decrease) | 59,869 | (27,239) | $ 899,047 | $ (242,644) |
Class B |
|
|
|
|
Shares sold | 39,461 | 84,992 | $ 498,530 | $ 960,028 |
Shares redeemed | (76,265) | (149,463) | (958,943) | (1,626,686) |
Net increase (decrease) | (36,804) | (64,471) | $ (460,413) | $ (666,658) |
Class C |
|
|
|
|
Shares sold | 512,946 | 651,335 | $ 7,022,340 | $ 6,961,979 |
Shares redeemed | (149,633) | (158,268) | (1,947,404) | (1,769,753) |
Net increase (decrease) | 363,313 | 493,067 | $ 5,074,936 | $ 5,192,226 |
Institutional Class |
|
|
|
|
Shares sold | 196,033 | 718,370 | $ 3,076,446 | $ 9,586,550 |
Reinvestment of distributions | - | 555 | - | 6,322 |
Shares redeemed | (271,916) | (601,861) | (3,896,769) | (7,815,260) |
Net increase (decrease) | (75,883) | 117,064 | $ (820,323) | $ 1,777,612 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,348.70 | $ 8.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,347.10 | $ 9.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,343.80 | $ 12.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,344.30 | $ 12.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,350.60 | $ 6.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Intel Corp. | 11.3 | 18.0 |
Marvell Technology Group Ltd. | 8.7 | 7.6 |
Broadcom Corp. Class A | 5.2 | 2.8 |
National Semiconductor Corp. | 4.9 | 1.5 |
Micron Technology, Inc. | 4.8 | 4.5 |
Amkor Technology, Inc. | 3.9 | 3.8 |
Avago Technologies Ltd. | 3.8 | 3.0 |
Applied Materials, Inc. | 3.8 | 5.2 |
Advanced Micro Devices, Inc. | 3.8 | 4.3 |
NVIDIA Corp. | 3.7 | 2.0 |
| 53.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Semiconductors & Semiconductor Equipment | 81.8% |
|
| Electronic Equipment & Components | 6.3% |
|
| Communications Equipment | 3.9% |
|
| Computers & Peripherals | 1.7% |
|
| Internet Software & Services | 0.3% |
|
| All Others* | 6.0% |
|
As of July 31, 2010 | |||
| Semiconductors & Semiconductor Equipment | 89.6% |
|
| Electronic Equipment & Components | 4.3% |
|
| Communications Equipment | 3.7% |
|
| Computers & Peripherals | 1.5% |
|
| Internet Software & Services | 0.3% |
|
| All Others* | 0.6% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.3% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 3.9% | |||
Communications Equipment - 3.9% | |||
Brocade Communications Systems, Inc. (a) | 6,255 | $ 35,278 | |
Cisco Systems, Inc. (a) | 8,500 | 179,775 | |
Motorola Mobility Holdings, Inc. | 2,218 | 61,816 | |
Motorola Solutions, Inc. | 21 | 814 | |
Nokia Corp. sponsored ADR | 5,040 | 53,928 | |
QUALCOMM, Inc. | 9,977 | 540,055 | |
| 871,666 | ||
COMPUTERS & PERIPHERALS - 1.7% | |||
Computer Hardware - 0.0% | |||
Hewlett-Packard Co. | 100 | 4,569 | |
Computer Storage & Peripherals - 1.7% | |||
Gemalto NV | 408 | 20,630 | |
SanDisk Corp. (a) | 620 | 28,129 | |
Seagate Technology (a) | 8,513 | 119,182 | |
Synaptics, Inc. (a) | 2,900 | 82,534 | |
Western Digital Corp. (a) | 3,810 | 129,616 | |
| 380,091 | ||
TOTAL COMPUTERS & PERIPHERALS | 384,660 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 6.3% | |||
Electronic Components - 0.8% | |||
Aeroflex Holding Corp. | 1,900 | 29,811 | |
Amphenol Corp. Class A | 100 | 5,534 | |
Corning, Inc. | 4,168 | 92,571 | |
Universal Display Corp. (a) | 1,400 | 47,376 | |
| 175,292 | ||
Electronic Equipment & Instruments - 0.0% | |||
Hitachi High-Technologies Corp. | 100 | 2,471 | |
SNU Precision Co. Ltd. | 178 | 3,282 | |
| 5,753 | ||
Electronic Manufacturing Services - 5.5% | |||
Benchmark Electronics, Inc. (a) | 6,065 | 115,174 | |
Flextronics International Ltd. (a) | 48,021 | 383,688 | |
Jabil Circuit, Inc. | 16,588 | 335,243 | |
Multi-Fineline Electronix, Inc. (a) | 1,300 | 37,570 | |
Plexus Corp. (a) | 2,943 | 79,579 | |
SMART Modular Technologies (WWH), Inc. (a) | 17,409 | 117,685 | |
Tyco Electronics Ltd. | 2,000 | 72,460 | |
Viasystems Group, Inc. (a) | 5,090 | 102,971 | |
| 1,244,370 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 1,425,415 | ||
| |||
Shares | Value | ||
INTERNET SOFTWARE & SERVICES - 0.3% | |||
Internet Software & Services - 0.3% | |||
Google, Inc. Class A (a) | 100 | $ 60,036 | |
Support.com, Inc. (a) | 200 | 1,108 | |
| 61,144 | ||
IT SERVICES - 0.2% | |||
IT Consulting & Other Services - 0.2% | |||
BCD Semiconductor Manufacturing Ltd. ADR (a) | 3,300 | 33,891 | |
LEISURE EQUIPMENT & PRODUCTS - 0.1% | |||
Photographic Products - 0.1% | |||
Eastman Kodak Co. (a) | 6,300 | 23,058 | |
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 - 81.8% | |||
Semiconductor Equipment - 13.8% | |||
Advanced Energy Industries, Inc. (a) | 5 | 77 | |
Amkor Technology, Inc. (a)(d) | 107,137 | 872,095 | |
Applied Materials, Inc. | 54,300 | 851,967 | |
ASM International NV unit (a) | 1,100 | 40,029 | |
ASML Holding NV | 2,870 | 120,569 | |
Brooks Automation, Inc. (a) | 400 | 4,696 | |
Cabot Microelectronics Corp. (a) | 50 | 2,256 | |
Cymer, Inc. (a) | 340 | 16,521 | |
Entegris, Inc. (a) | 8,291 | 63,426 | |
KLA-Tencor Corp. | 2,330 | 102,706 | |
Lam Research Corp. (a) | 9,720 | 484,931 | |
MEMC Electronic Materials, Inc. (a) | 11,942 | 132,437 | |
Nanometrics, Inc. (a) | 400 | 6,848 | |
Nova Measuring Instruments Ltd. (a) | 200 | 1,800 | |
Novellus Systems, Inc. (a) | 1,200 | 43,284 | |
Teradyne, Inc. (a) | 800 | 13,344 | |
Tessera Technologies, Inc. (a) | 2,600 | 45,032 | |
Ultratech, Inc. (a) | 200 | 4,507 | |
Ulvac, Inc. | 100 | 2,566 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 6,603 | 293,503 | |
Verigy Ltd. (a) | 600 | 8,004 | |
| 3,110,598 | ||
Semiconductors - 68.0% | |||
Advanced Micro Devices, Inc. (a) | 108,784 | 851,779 | |
Alpha & Omega Semiconductor Ltd. (a) | 8,013 | 113,304 | |
Altera Corp. | 500 | 18,785 | |
Analog Devices, Inc. | 2,900 | 112,607 | |
Applied Micro Circuits Corp. (a) | 9,604 | 94,503 | |
Atheros Communications, Inc. (a) | 828 | 36,921 | |
Avago Technologies Ltd. | 29,884 | 857,970 | |
Broadcom Corp. Class A | 26,038 | 1,174,053 | |
Cree, Inc. (a)(d) | 1,400 | 70,686 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
CSR PLC (a) | 8,992 | $ 55,549 | |
Cypress Semiconductor Corp. (a) | 700 | 15,155 | |
Duksan Hi-Metal Co. Ltd. (a) | 142 | 2,733 | |
Exar Corp. (a) | 200 | 1,284 | |
Fairchild Semiconductor International, Inc. (a) | 29,430 | 523,854 | |
First Solar, Inc. (a) | 258 | 39,882 | |
Himax Technologies, Inc. sponsored ADR | 18,838 | 47,472 | |
Ikanos Communications, Inc. (a) | 17,400 | 20,880 | |
Inphi Corp. | 800 | 15,144 | |
Integrated Device Technology, Inc. (a) | 15,063 | 96,102 | |
Intel Corp. | 118,664 | 2,546,525 | |
International Rectifier Corp. (a) | 6,200 | 198,586 | |
Intersil Corp. Class A | 36,819 | 556,703 | |
Linear Technology Corp. | 30 | 1,044 | |
LSI Corp. (a) | 49,542 | 306,665 | |
Marvell Technology Group Ltd. (a) | 103,259 | 1,962,954 | |
Maxim Integrated Products, Inc. | 1,700 | 43,894 | |
Micron Technology, Inc. (a) | 102,820 | 1,083,723 | |
Monolithic Power Systems, Inc. (a) | 11,852 | 173,869 | |
Motech Industries, Inc. | 1 | 4 | |
National Semiconductor Corp. | 72,365 | 1,097,053 | |
NVIDIA Corp. (a) | 34,368 | 822,083 | |
NXP Semiconductors NV | 14,412 | 370,965 | |
ON Semiconductor Corp. (a) | 49,066 | 542,179 | |
PMC-Sierra, Inc. (a) | 25,836 | 202,038 | |
RDA Microelectronics, Inc. sponsored ADR | 3,700 | 49,728 | |
Rensas Electronics Corp. (a) | 5,400 | 57,895 | |
Semtech Corp. (a) | 1,016 | 22,184 | |
Skyworks Solutions, Inc. (a) | 906 | 28,784 | |
Standard Microsystems Corp. (a) | 1,394 | 33,526 | |
STMicroelectronics NV (NY Shares) unit | 3,900 | 47,268 | |
SunPower Corp. Class B (a) | 6,390 | 84,348 | |
Supertex, Inc. (a) | 2,521 | 57,756 | |
Texas Instruments, Inc. | 11,282 | 382,573 | |
TriQuint Semiconductor, Inc. (a) | 100 | 1,316 | |
| |||
Shares | Value | ||
Volterra Semiconductor Corp. (a) | 2,900 | $ 72,065 | |
Xilinx, Inc. | 11,617 | 374,067 | |
| 15,268,458 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 18,379,056 | ||
TOTAL COMMON STOCKS (Cost $19,698,106) | 21,178,891 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.0% | ||||
Semiconductors - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 10,000 | 9,488 | ||
Money Market Funds - 7.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 1,320,839 | 1,320,839 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 365,500 | 365,500 | |
TOTAL MONEY MARKET FUNDS (Cost $1,686,339) | 1,686,339 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $21,394,445) | 22,874,718 | |
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (406,314) | |
NET ASSETS - 100% | $ 22,468,404 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 284 |
Fidelity Securities Lending Cash Central Fund | 709 |
Total | $ 993 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 21,178,891 | $ 21,178,890 | $ - | $ 1 |
Convertible Bonds | 9,488 | - | 9,488 | - |
Money Market Funds | 1,686,339 | 1,686,339 | - | - |
Total Investments in Securities: | $ 22,874,718 | $ 22,865,229 | $ 9,488 | $ 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 | $ 1 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.0% |
Bermuda | 9.2% |
Singapore | 5.5% |
Netherlands | 2.7% |
Cayman Islands | 1.1% |
Others (Individually Less Than 1%) | 1.5% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $12,180,956 of which $4,122,383, $2,265,871, $279,201, $310,663 and $5,202,838 will expire in fiscal 2011, 2012, 2013, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $359,810) - See accompanying schedule: Unaffiliated issuers (cost $19,708,106) | $ 21,188,379 |
|
Fidelity Central Funds (cost $1,686,339) | 1,686,339 |
|
Total Investments (cost $21,394,445) |
| $ 22,874,718 |
Cash | 1 | |
Receivable for investments sold | 270,986 | |
Receivable for fund shares sold | 351,808 | |
Dividends receivable | 1,441 | |
Interest receivable | 139 | |
Distributions receivable from Fidelity Central Funds | 221 | |
Prepaid expenses | 38 | |
Receivable from investment adviser for expense reductions | 4,229 | |
Other receivables | 465 | |
Total assets | 23,504,046 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 591,553 | |
Payable for fund shares redeemed | 27,218 | |
Accrued management fee | 9,430 | |
Distribution and service plan fees payable | 8,374 | |
Other affiliated payables | 4,985 | |
Other payables and accrued expenses | 28,582 | |
Collateral on securities loaned, at value | 365,500 | |
Total liabilities | 1,035,642 | |
|
| |
Net Assets | $ 22,468,404 | |
Net Assets consist of: |
| |
Paid in capital | $ 32,722,134 | |
Accumulated net investment loss | (58,396) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,675,607) | |
Net unrealized appreciation (depreciation) on investments | 1,480,273 | |
Net Assets | $ 22,468,404 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 9.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $9.63) | $ 10.22 | |
Class T: | $ 9.43 | |
|
|
|
Maximum offering price per share (100/96.50 of $9.43) | $ 9.77 | |
Class B: | $ 8.99 | |
|
|
|
Class C: | $ 8.98 | |
|
|
|
Institutional Class: | $ 9.90 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 70,840 |
Interest |
| 252 |
Income from Fidelity Central Funds |
| 993 |
Total income |
| 72,085 |
|
|
|
Expenses | ||
Management fee | $ 43,849 | |
Transfer agent fees | 24,320 | |
Distribution and service plan fees | 40,982 | |
Accounting and security lending fees | 3,120 | |
Custodian fees and expenses | 22,163 | |
Independent trustees' compensation | 42 | |
Registration fees | 47,865 | |
Audit | 23,284 | |
Legal | 81 | |
Miscellaneous | 77 | |
Total expenses before reductions | 205,783 | |
Expense reductions | (75,990) | 129,793 |
Net investment income (loss) | (57,708) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 906,171 | |
Foreign currency transactions | 245 | |
Total net realized gain (loss) |
| 906,416 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,922,870 | |
Assets and liabilities in foreign currencies | (23) | |
Total change in net unrealized appreciation (depreciation) | 3,922,847 | |
Net gain (loss) | 4,829,263 | |
Net increase (decrease) in net assets resulting from operations | $ 4,771,555 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (57,708) | $ (69,345) |
Net realized gain (loss) | 906,416 | 2,767,217 |
Change in net unrealized appreciation (depreciation) | 3,922,847 | (1,525,207) |
Net increase (decrease) in net assets resulting from operations | 4,771,555 | 1,172,665 |
Distributions to shareholders from net investment income | - | (30,683) |
Share transactions - net increase (decrease) | 3,466,235 | (1,121,329) |
Redemption fees | 156 | 1,611 |
Total increase (decrease) in net assets | 8,237,946 | 22,264 |
|
|
|
Net Assets | ||
Beginning of period | 14,230,458 | 14,208,194 |
End of period (including accumulated net investment loss of $58,396 and accumulated net investment loss of $688, respectively) | $ 22,468,404 | $ 14,230,458 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.01) | .04 | - I | (.03) | (.04) |
Net realized and unrealized gain (loss) | 2.51 | .59 | (.24) | (2.32) | 1.76 | (.62) |
Total from investment operations | 2.49 | .58 | (.20) | (2.32) | 1.73 | (.66) |
Distributions from net investment income | - | (.03) | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.63 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 |
Total Return B, C, D | 34.87% | 8.74% | (2.95)% | (25.47)% | 23.44% | (8.21)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.32% A | 1.97% | 2.44% | 1.72% | 1.60% | 1.50% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.39% | 1.40% | 1.39% | 1.38% | 1.36% |
Net investment income (loss) | (.46)% A | (.15)% | .69% | (.02)% | (.35)% | (.52)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,200 | $ 5,394 | $ 5,433 | $ 3,970 | $ 7,551 | $ 7,916 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.03) | .02 | (.02) | (.05) | (.06) |
Net realized and unrealized gain (loss) | 2.46 | .58 | (.23) | (2.29) | 1.74 | (.61) |
Total from investment operations | 2.43 | .55 | (.21) | (2.31) | 1.69 | (.67) |
Distributions from net investment income | - | (.01) | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.43 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 |
Total Return B, C, D | 34.71% | 8.50% | (3.15)% | (25.72)% | 23.18% | (8.42)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.65% A | 2.26% | 2.77% | 2.02% | 1.89% | 1.82% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.64% | 1.65% | 1.64% | 1.64% | 1.61% |
Net investment income (loss) | (.71)% A | (.40)% | .44% | (.27)% | (.60)% | (.77)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,409 | $ 3,862 | $ 4,195 | $ 4,635 | $ 8,103 | $ 9,048 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.06) | - I | (.06) | (.09) | (.10) |
Net realized and unrealized gain (loss) | 2.34 | .56 | (.24) | (2.21) | 1.69 | (.58) |
Total from investment operations | 2.30 | .50 | (.24) | (2.27) | 1.60 | (.68) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.99 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 |
Total Return B, C, D | 34.38% | 8.08% | (3.73)% | (26.09)% | 22.54% | (8.74)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 3.12% A | 2.73% | 3.22% | 2.48% | 2.36% | 2.29% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.14% | 2.13% | 2.11% |
Net investment income (loss) | (1.21)% A | (.90)% | (.06)% | (.77)% | (1.10)% | (1.27)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,064 | $ 1,073 | $ 1,197 | $ 2,027 | $ 4,572 | $ 6,123 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.06) | - I | (.06) | (.09) | (.10) |
Net realized and unrealized gain (loss) | 2.35 | .56 | (.24) | (2.21) | 1.69 | (.58) |
Total from investment operations | 2.30 | .50 | (.24) | (2.27) | 1.60 | (.68) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.98 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 |
Total Return B, C, D | 34.43% | 8.09% | (3.74)% | (26.12)% | 22.57% | (8.75)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 3.10% A | 2.72% | 3.21% | 2.47% | 2.34% | 2.26% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.14% | 2.15% | 2.14% | 2.13% | 2.11% |
Net investment income (loss) | (1.21)% A | (.90)% | (.06)% | (.77)% | (1.10)% | (1.27)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,543 | $ 3,256 | $ 3,016 | $ 3,325 | $ 8,389 | $ 7,009 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | .01 | .05 | .02 | (.01) | (.02) |
Net realized and unrealized gain (loss) | 2.58 | .60 | (.24) | (2.38) | 1.80 | (.62) |
Total from investment operations | 2.57 | .61 | (.19) | (2.36) | 1.79 | (.64) |
Distributions from net investment income | - | (.03) | - | - | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 9.90 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 |
Total Return B, C | 35.06% | 9.10% | (2.74)% | (25.38)% | 23.83% | (7.85)% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 2.08% A | 1.64% | 2.16% | 1.47% | 1.26% | 1.11% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.11% |
Expenses net of all reductions | 1.13% A | 1.14% | 1.15% | 1.14% | 1.13% | 1.07% |
Net investment income (loss) | (.21)% A | .11% | .94% | .23% | (.10)% | (.23)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,252 | $ 645 | $ 367 | $ 353 | $ 730 | $ 750 |
Portfolio turnover rate F | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 2,942,157 |
Gross unrealized depreciation | (1,788,054) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,154,103 |
Tax cost | $ 21,720,615 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $10,991,934 and $8,769,182, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 7,989 | $ 126 |
Class T | .25% | .25% | 10,430 | - |
Class B | .75% | .25% | 4,990 | 3,742 |
Class C | .75% | .25% | 17,573 | 2,286 |
|
|
| $ 40,982 | $ 6,154 |
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% 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 | $ 3,883 |
Class T | 1,418 |
Class B* | 1,083 |
Class C* | 298 |
| $ 6,682 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 9,313 | .29 |
Class T | 7,268 | .35 |
Class B | 1,530 | .31 |
Class C | 5,292 | .30 |
Institutional Class | 917 | .29 |
| $ 24,320 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 $1,541 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $27 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $709. During the period, there were no securities loaned to FCM.
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% | $ 29,476 |
Class T | 1.65% | 20,879 |
Class B | 2.15% | 4,871 |
Class C | 2.15% | 16,838 |
Institutional Class | 1.15% | 2,958 |
|
| $ 75,022 |
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 $968 for the period.
Semiannual Report
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 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 459,821 | 463,925 | $ 4,099,779 | $ 3,450,517 |
Reinvestment of distributions | - | 3,053 | - | 21,642 |
Shares redeemed | (156,610) | (536,272) | (1,253,895) | (3,911,247) |
Net increase (decrease) | 303,211 | (69,294) | $ 2,845,884 | $ (439,088) |
Class T |
|
|
|
|
Shares sold | 127,234 | 149,748 | $ 1,080,799 | $ 1,082,460 |
Reinvestment of distributions | - | 793 | - | 5,519 |
Shares redeemed | (105,545) | (248,392) | (806,711) | (1,826,132) |
Net increase (decrease) | 21,689 | (97,851) | $ 274,088 | $ (738,153) |
Class B |
|
|
|
|
Shares sold | 11,347 | 71,160 | $ 93,718 | $ 500,056 |
Shares redeemed | (53,505) | (103,890) | (398,979) | (717,856) |
Net increase (decrease) | (42,158) | (32,730) | $ (305,261) | $ (217,800) |
Class C |
|
|
|
|
Shares sold | 98,620 | 184,365 | $ 831,306 | $ 1,261,735 |
Shares redeemed | (80,076) | (184,552) | (599,704) | (1,259,598) |
Net increase (decrease) | 18,544 | (187) | $ 231,602 | $ 2,137 |
Institutional Class |
|
|
|
|
Shares sold | 67,404 | 94,039 | $ 654,731 | $ 728,440 |
Reinvestment of distributions | - | 194 | - | 1,410 |
Shares redeemed | (28,980) | (60,662) | (234,809) | (458,275) |
Net increase (decrease) | 38,424 | 33,571 | $ 419,922 | $ 271,575 |
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
Fidelity Advisor Energy 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,400.30 | $ 7.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.26 | $ 6.01 |
Class T | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,398.90 | $ 8.47 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class B | 1.93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,395.10 | $ 11.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Class C | 1.92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,395.00 | $ 11.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Institutional Class | .88% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,402.10 | $ 5.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.77 | $ 4.48 |
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
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 17.0 | 18.7 |
Schlumberger Ltd. | 6.3 | 5.1 |
Occidental Petroleum Corp. | 6.2 | 3.5 |
Marathon Oil Corp. | 4.5 | 4.9 |
Chevron Corp. | 4.4 | 10.2 |
Baker Hughes, Inc. | 4.3 | 4.2 |
National Oilwell Varco, Inc. | 4.2 | 2.5 |
Apache Corp. | 3.8 | 2.9 |
Halliburton Co. | 3.6 | 3.4 |
Massey Energy Co. | 2.8 | 1.6 |
| 57.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Oil, Gas & Consumable Fuels | 68.1% |
|
| Energy Equipment & Services | 27.9% |
|
| Chemicals | 1.4% |
|
| Construction & Engineering | 1.3% |
|
| Metals & Mining | 0.9% |
|
| All Others* | 0.4% |
|
As of July 31, 2010 | |||
| Oil, Gas & Consumable Fuels | 65.6% |
|
| Energy Equipment & Services | 30.6% |
|
| Construction & Engineering | 1.4% |
|
| Semiconductors & Semiconductor Equipment | 1.4% |
|
| Metals & Mining | 0.2% |
|
| All Others* | 0.8% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CHEMICALS - 1.4% | |||
Specialty Chemicals - 1.4% | |||
LyondellBasell Industries NV Class A (a) | 316,910 | $ 11,389,745 | |
CONSTRUCTION & ENGINEERING - 1.3% | |||
Construction & Engineering - 1.3% | |||
Foster Wheeler Ag (a) | 54,254 | 1,997,090 | |
Jacobs Engineering Group, Inc. (a) | 115,824 | 5,949,879 | |
KBR, Inc. | 75,683 | 2,429,424 | |
| 10,376,393 | ||
ENERGY EQUIPMENT & SERVICES - 27.9% | |||
Oil & Gas Drilling - 4.5% | |||
Ensco International Ltd. ADR | 275,840 | 14,989,146 | |
Noble Corp. | 62,427 | 2,387,833 | |
Northern Offshore Ltd. (a) | 405,087 | 999,046 | |
Ocean Rig UDW, Inc. (a) | 198,000 | 3,906,542 | |
Rowan Companies, Inc. (a) | 67,200 | 2,303,616 | |
Transocean Ltd. (a) | 143,343 | 11,457,406 | |
Tuscany International Drilling, Inc. (a) | 506,500 | 946,114 | |
| 36,989,703 | ||
Oil & Gas Equipment & Services - 23.4% | |||
Baker Hughes, Inc. | 511,069 | 35,013,337 | |
Dresser-Rand Group, Inc. (a) | 58,300 | 2,677,719 | |
Halliburton Co. | 649,711 | 29,236,995 | |
ION Geophysical Corp. (a) | 45,900 | 436,509 | |
National Oilwell Varco, Inc. | 463,795 | 34,274,451 | |
Oceaneering International, Inc. (a) | 185,700 | 14,341,611 | |
Oil States International, Inc. (a) | 83,250 | 5,641,020 | |
Schlumberger Ltd. | 570,982 | 50,811,688 | |
Schoeller-Bleckmann Oilfield Equipment AG | 22,338 | 1,834,843 | |
Superior Energy Services, Inc. (a) | 68,784 | 2,415,694 | |
TSC Offshore Group Ltd. (a) | 1,705,000 | 419,865 | |
Weatherford International Ltd. (a) | 451,279 | 10,704,338 | |
Willbros Group, Inc. (a) | 155,153 | 1,855,630 | |
| 189,663,700 | ||
TOTAL ENERGY EQUIPMENT & SERVICES | 226,653,403 | ||
GAS UTILITIES - 0.0% | |||
Gas Utilities - 0.0% | |||
China Gas Holdings Ltd. | 988,545 | 429,813 | |
MARINE - 0.1% | |||
Marine - 0.1% | |||
Kirby Corp. (a) | 17,900 | 836,646 | |
METALS & MINING - 0.9% | |||
Diversified Metals & Mining - 0.9% | |||
Grande Cache Coal Corp. (a) | 105,069 | 1,131,399 | |
| |||
Shares | Value | ||
MacArthur Coal Ltd. | 146,606 | $ 1,823,331 | |
Walter Energy, Inc. | 31,900 | 4,155,613 | |
| 7,110,343 | ||
OIL, GAS & CONSUMABLE FUELS - 68.1% | |||
Coal & Consumable Fuels - 6.8% | |||
Alpha Natural Resources, Inc. (a) | 330,464 | 17,755,831 | |
Massey Energy Co. | 361,987 | 22,754,503 | |
Peabody Energy Corp. | 228,460 | 14,488,933 | |
| 54,999,267 | ||
Integrated Oil & Gas - 35.9% | |||
Chevron Corp. | 374,155 | 35,518,534 | |
Exxon Mobil Corp. | 1,712,899 | 138,196,694 | |
Hess Corp. | 117,401 | 9,875,772 | |
Marathon Oil Corp. | 805,046 | 36,790,602 | |
Murphy Oil Corp. | 23,861 | 1,581,984 | |
OAO Gazprom sponsored ADR | 147,600 | 3,949,776 | |
Occidental Petroleum Corp. | 519,984 | 50,272,053 | |
Royal Dutch Shell PLC Class B ADR | 215,587 | 15,213,975 | |
| 291,399,390 | ||
Oil & Gas Exploration & Production - 15.8% | |||
Anadarko Petroleum Corp. | 200,559 | 15,459,088 | |
Apache Corp. | 257,039 | 30,680,175 | |
Bankers Petroleum Ltd. (a) | 278,700 | 2,321,804 | |
Brigham Exploration Co. (a) | 27,600 | 817,236 | |
Chesapeake Energy Corp. | 213,500 | 6,304,655 | |
Cimarex Energy Co. | 155,132 | 16,153,895 | |
Concho Resources, Inc. (a) | 8,664 | 833,910 | |
Discovery Offshore S.A. (a)(e) | 266,400 | 532,800 | |
Gran Tierra Energy, Inc. (a) | 300,100 | 2,694,935 | |
Newfield Exploration Co. (a) | 131,494 | 9,621,416 | |
Nexen, Inc. | 44,800 | 1,125,482 | |
Niko Resources Ltd. | 14,500 | 1,412,197 | |
Noble Energy, Inc. | 45,369 | 4,133,116 | |
Northern Oil & Gas, Inc. (a) | 10,000 | 275,700 | |
Pacific Rubiales Energy Corp. | 55,000 | 1,898,711 | |
Painted Pony Petroleum Ltd. Class A (a) | 123,500 | 1,295,325 | |
Petrobank Energy & Resources Ltd. (a) | 23,400 | 549,296 | |
Petroleum Development Corp. (a) | 4,842 | 220,359 | |
Petrominerales Ltd. | 39,272 | 1,531,494 | |
Pioneer Natural Resources Co. | 92,700 | 8,821,332 | |
Talisman Energy, Inc. | 158,000 | 3,620,537 | |
Toreador Resources Corp. (a)(d) | 25,700 | 408,116 | |
Vermilion Energy, Inc. | 8,100 | 383,194 | |
Whiting Petroleum Corp. (a) | 139,190 | 17,576,913 | |
| 128,671,686 | ||
Oil & Gas Refining & Marketing - 9.3% | |||
CVR Energy, Inc. (a) | 358,992 | 6,217,741 | |
Frontier Oil Corp. | 472,723 | 9,832,638 | |
Holly Corp. | 396,001 | 19,431,769 | |
Keyera Corp. | 10,300 | 363,705 | |
Petroplus Holdings AG | 67,010 | 1,097,966 | |
Sunoco, Inc. | 110,665 | 4,697,729 | |
Common Stocks - continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - CONTINUED | |||
Oil & Gas Refining & Marketing - continued | |||
Tesoro Corp. (a) | 556,800 | $ 10,718,400 | |
Valero Energy Corp. | 597,563 | 15,154,198 | |
Western Refining, Inc. (a)(d) | 390,234 | 4,753,050 | |
World Fuel Services Corp. | 83,908 | 3,149,906 | |
| 75,417,102 | ||
Oil & Gas Storage & Transport - 0.3% | |||
El Paso Corp. | 137,400 | 2,181,912 | |
TOTAL OIL, GAS & CONSUMABLE FUELS | 552,669,357 | ||
TOTAL COMMON STOCKS (Cost $624,439,215) | 809,465,700 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.0% | ||||
Semiconductors - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 320,000 | 303,600 | ||
Money Market Funds - 1.3% | |||
|
|
|
|
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 5,871,813 | 5,871,813 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,699,800 | 4,699,800 | |
TOTAL MONEY MARKET FUNDS (Cost $10,571,613) | 10,571,613 | ||
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $635,330,828) | 820,340,913 | |
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (8,422,365) | |
NET ASSETS - 100% | $ 811,918,548 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $532,800 or 0.1% of net assets. |
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 | $ 3,395 |
Fidelity Securities Lending Cash Central Fund | 15,952 |
Total | $ 19,347 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 809,465,700 | $ 808,503,087 | $ 532,800 | $ 429,813 |
Convertible Bonds | 303,600 | - | 303,600 | - |
Money Market Funds | 10,571,613 | 10,571,613 | - | - |
Total Investments in Securities: | $ 820,340,913 | $ 819,074,700 | $ 836,400 | $ 429,813 |
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) | (83,535) |
Cost of Purchases | 513,348 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 429,813 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (83,535) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 81.5% |
Netherlands Antilles | 6.3% |
United Kingdom | 3.7% |
Switzerland | 3.4% |
Canada | 2.0% |
Netherlands | 1.4% |
Others (Individually Less Than 1%) | 1.7% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $108,925,305 of which $106,222,894 and $2,702,411 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Energy Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,748,436) - See accompanying schedule: Unaffiliated issuers (cost $624,759,215) | $ 809,769,300 |
|
Fidelity Central Funds (cost $10,571,613) | 10,571,613 |
|
Total Investments (cost $635,330,828) |
| $ 820,340,913 |
Receivable for investments sold | 9,079,594 | |
Receivable for fund shares sold | 2,640,516 | |
Dividends receivable | 38,252 | |
Interest receivable | 4,433 | |
Distributions receivable from Fidelity Central Funds | 1,981 | |
Prepaid expenses | 1,542 | |
Other receivables | 8,326 | |
Total assets | 832,115,557 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,914,315 | |
Payable for fund shares redeemed | 1,691,633 | |
Accrued management fee | 355,805 | |
Distribution and service plan fees payable | 314,483 | |
Other affiliated payables | 187,436 | |
Other payables and accrued expenses | 33,537 | |
Collateral on securities loaned, at value | 4,699,800 | |
Total liabilities | 20,197,009 | |
|
| |
Net Assets | $ 811,918,548 | |
Net Assets consist of: |
| |
Paid in capital | $ 730,441,423 | |
Accumulated net investment loss | (703,375) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (102,827,514) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 185,008,014 | |
Net Assets | $ 811,918,548 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price | $ 38.67 | |
|
|
|
Maximum offering price per share (100/94.25 of $38.67) | $ 41.03 | |
Class T: | $ 39.55 | |
|
|
|
Maximum offering price per share (100/96.50 of $39.55) | $ 40.98 | |
Class B: | $ 36.34 | |
|
|
|
Class C: | $ 36.60 | |
|
|
|
Institutional Class: | $ 40.32 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,440,312 |
Interest |
| 7,639 |
Income from Fidelity Central Funds |
| 19,347 |
Total income |
| 5,467,298 |
|
|
|
Expenses | ||
Management fee | $ 1,838,589 | |
Transfer agent fees | 935,838 | |
Distribution and service plan fees | 1,635,606 | |
Accounting and security lending fees | 119,741 | |
Custodian fees and expenses | 22,101 | |
Independent trustees' compensation | 1,854 | |
Registration fees | 52,043 | |
Audit | 26,312 | |
Legal | 1,985 | |
Miscellaneous | 3,470 | |
Total expenses before reductions | 4,637,539 | |
Expense reductions | (9,955) | 4,627,584 |
Net investment income (loss) | 839,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 20,113,316 | |
Foreign currency transactions | 19,238 | |
Total net realized gain (loss) |
| 20,132,554 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 207,490,295 | |
Assets and liabilities in foreign currencies | (2,154) | |
Total change in net unrealized appreciation (depreciation) | 207,488,141 | |
Net gain (loss) | 227,620,695 | |
Net increase (decrease) in net assets resulting from operations | $ 228,460,409 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 839,714 | $ (2,588,877) |
Net realized gain (loss) | 20,132,554 | 85,218,986 |
Change in net unrealized appreciation (depreciation) | 207,488,141 | (40,712,055) |
Net increase (decrease) in net assets resulting from operations | 228,460,409 | 41,918,054 |
Distributions to shareholders from net investment income | (1,542,973) | - |
Share transactions - net increase (decrease) | (10,727,287) | (40,286,664) |
Redemption fees | 6,710 | 43,053 |
Total increase (decrease) in net assets | 216,196,859 | 1,674,443 |
|
|
|
Net Assets | ||
Beginning of period | 595,721,689 | 594,047,246 |
End of period (including accumulated net investment loss of $703,375 and accumulated net investment loss of $116, respectively) | $ 811,918,548 | $ 595,721,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .08 | (.05) | (.04) | (.17) | (.02) H | (.04) |
Net realized and unrealized gain (loss) | 11.00 | 1.93 | (17.48) | 5.59 | 8.42 | 12.30 |
Total from investment operations | 11.08 | 1.88 | (17.52) | 5.42 | 8.40 | 12.26 |
Distributions from net investment income | (.11) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.46) | (6.51) | (6.81) |
Total distributions | (.11) | - | (6.90) | (3.46) | (6.51) | (6.81) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 38.67 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 |
Total Return B, C, D | 40.03% | 7.28% | (38.86)% | 11.52% | 22.08% | 32.90% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.18% A | 1.20% | 1.22% | 1.14% | 1.19% | 1.21% |
Expenses net of fee waivers, if any | 1.18% A | 1.20% | 1.22% | 1.14% | 1.19% | 1.21% |
Expenses net of all reductions | 1.17% A | 1.19% | 1.21% | 1.14% | 1.19% | 1.17% |
Net investment income (loss) | .49% A | (.16)% | (.14)% | (.32)% | (.05)% H | (.09)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 299,223 | $ 214,407 | $ 216,595 | $ 355,200 | $ 268,108 | $ 204,391 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | (.11) | (.10) | (.29) | (.11) H | (.13) |
Net realized and unrealized gain (loss) | 11.25 | 1.97 | (17.93) | 5.72 | 8.61 | 12.49 |
Total from investment operations | 11.29 | 1.86 | (18.03) | 5.43 | 8.50 | 12.36 |
Distributions from net investment income | (.07) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.29) | (6.42) | (6.65) |
Total distributions | (.07) | - | (6.90) | (3.29) | (6.42) | (6.65) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 39.55 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 |
Total Return B, C, D | 39.89% | 7.03% | (38.99)% | 11.27% | 21.84% | 32.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.40% A | 1.41% | 1.45% | 1.36% | 1.40% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.41% | 1.45% | 1.36% | 1.40% | 1.42% |
Expenses net of all reductions | 1.39% A | 1.41% | 1.45% | 1.35% | 1.39% | 1.38% |
Net investment income (loss) | .27% A | (.37)% | (.38)% | (.54)% | (.26)% H | (.29)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 291,897 | $ 219,051 | $ 224,376 | $ 407,784 | $ 382,222 | $ 362,272 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.25) | (.22) | (.56) | (.34) H | (.35) |
Net realized and unrealized gain (loss) | 10.33 | 1.83 | (16.75) | 5.41 | 8.17 | 11.98 |
Total from investment operations | 10.29 | 1.58 | (16.97) | 4.85 | 7.83 | 11.63 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.14) | (6.29) | (6.43) |
Total distributions | (.01) | - | (6.90) | (3.14) | (6.29) | (6.43) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 36.34 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 |
Total Return B, C, D | 39.51% | 6.45% | (39.31)% | 10.62% | 21.18% | 31.86% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.93% A | 1.96% | 1.96% | 1.93% | 1.96% | 1.96% |
Expenses net of fee waivers, if any | 1.93% A | 1.96% | 1.96% | 1.93% | 1.96% | 1.96% |
Expenses net of all reductions | 1.93% A | 1.95% | 1.96% | 1.93% | 1.95% | 1.92% |
Net investment income (loss) | (.27)% A | (.92)% | (.89)% | (1.11)% | (.82)% H | (.84)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 54,254 | $ 44,330 | $ 47,795 | $ 98,602 | $ 116,487 | $ 130,973 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.25) | (.21) | (.54) | (.32) H | (.34) |
Net realized and unrealized gain (loss) | 10.41 | 1.85 | (16.87) | 5.45 | 8.20 | 12.06 |
Total from investment operations | 10.37 | 1.60 | (17.08) | 4.91 | 7.88 | 11.72 |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.16) | (6.33) | (6.50) |
Total distributions | (.02) | - | (6.90) | (3.16) | (6.33) | (6.50) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 36.60 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 |
Total Return B, C, D | 39.50% | 6.49% | (39.31)% | 10.71% | 21.22% | 31.96% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.92% A | 1.94% | 1.96% | 1.87% | 1.91% | 1.92% |
Expenses net of fee waivers, if any | 1.92% A | 1.94% | 1.96% | 1.87% | 1.91% | 1.92% |
Expenses net of all reductions | 1.91% A | 1.93% | 1.95% | 1.87% | 1.91% | 1.88% |
Net investment income (loss) | (.25)% A | (.90)% | (.88)% | (1.05)% | (.77)% H | (.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 123,638 | $ 90,596 | $ 86,650 | $ 156,393 | $ 135,072 | $ 125,424 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .13 | .04 | .03 | (.02) | .11 G | .12 |
Net realized and unrealized gain (loss) | 11.46 | 2.00 | (18.06) | 5.74 | 8.67 | 12.56 |
Total from investment operations | 11.59 | 2.04 | (18.03) | 5.72 | 8.78 | 12.68 |
Distributions from net investment income | (.14) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.64) | (6.58) | (6.97) |
Total distributions | (.14) | - | (6.90) | (3.64) | (6.58) | (6.97) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 40.32 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 |
Total Return B, C | 40.21% | 7.60% | (38.68)% | 11.83% | 22.47% | 33.35% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .88% A | .90% | .95% | .85% | .88% | .87% |
Expenses net of fee waivers, if any | .88% A | .90% | .95% | .85% | .88% | .87% |
Expenses net of all reductions | .88% A | .90% | .94% | .85% | .88% | .83% |
Net investment income (loss) | .78% A | .14% | .13% | (.03)% | .25% G | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 42,907 | $ 27,338 | $ 18,631 | $ 22,250 | $ 17,127 | $ 19,553 |
Portfolio turnover rate F | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, deferred trustees compensation, net operating losses, capital loss carryforwards, and losses deferred due to washed sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 186,877,251 |
Gross unrealized depreciation | (10,279,187) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 176,598,064 |
| |
Tax cost | $ 643,742,849 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $296,206,183 and $306,329,075, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 298,132 | $ 3,885 |
Class T | .25% | .25% | 603,476 | - |
Class B | .75% | .25% | 235,426 | 176,569 |
Class C | .75% | .25% | 498,572 | 62,264 |
|
|
| $ 1,635,606 | $ 242,718 |
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% 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 | $ 50,600 |
Class T | 15,545 |
Class B* | 38,504 |
Class C* | 2,987 |
| $ 107,636 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 355,734 | .30 |
Class T | 324,528 | .27 |
Class B | 71,322 | .30 |
Class C | 143,813 | .29 |
Institutional Class | 40,441 | .25 |
| $ 935,838 |
|
* 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 $2,647 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $1,137 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $15,952. During the period, there were no securities loaned to FCM.
Semiannual Report
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 $9,955 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 788,159 | $ - |
Class T | 537,032 | - |
Class B | 21,298 | - |
Class C | 59,061 | - |
Institutional Class | 137,423 | - |
Total | $ 1,542,973 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,000,016 | 2,475,060 | $ 33,360,031 | $ 72,154,427 |
Reinvestment of distributions | 20,238 | - | 701,058 | - |
Shares redeemed | (1,023,017) | (3,122,404) | (31,651,141) | (89,993,205) |
Net increase (decrease) | (2,763) | (647,344) | $ 2,409,948 | $ (17,838,778) |
Class T |
|
|
|
|
Shares sold | 478,047 | 1,265,490 | $ 16,093,655 | $ 38,114,553 |
Reinvestment of distributions | 14,153 | - | 502,263 | - |
Shares redeemed | (843,240) | (2,010,804) | (26,793,936) | (59,843,042) |
Net increase (decrease) | (351,040) | (745,314) | $ (10,198,018) | $ (21,728,489) |
Class B |
|
|
|
|
Shares sold | 53,482 | 320,063 | $ 1,628,782 | $ 8,832,050 |
Reinvestment of distributions | 560 | - | 18,656 | - |
Shares redeemed | (262,154) | (571,409) | (7,731,897) | (15,635,733) |
Net increase (decrease) | (208,112) | (251,346) | $ (6,084,459) | $ (6,803,683) |
Class C |
|
|
|
|
Shares sold | 342,168 | 819,751 | $ 10,879,924 | $ 22,984,733 |
Reinvestment of distributions | 1,512 | - | 50,475 | - |
Shares redeemed | (417,213) | (883,306) | (12,198,114) | (24,290,742) |
Net increase (decrease) | (73,533) | (63,555) | $ (1,267,715) | $ (1,306,009) |
Institutional Class |
|
|
|
|
Shares sold | 263,505 | 669,423 | $ 9,177,399 | $ 20,180,428 |
Reinvestment of distributions | 3,300 | - | 119,041 | - |
Shares redeemed | (149,819) | (416,730) | (4,883,483) | (12,790,133) |
Net increase (decrease) | 116,986 | 252,693 | $ 4,412,957 | $ 7,390,295 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.27% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,069.60 | $ 6.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.46 |
Class T | 1.53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.80 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Class B | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,064.40 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Class C | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.00 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Institutional Class | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Comerica, Inc. | 11.3 | 1.5 |
Regions Financial Corp. | 6.0 | 5.3 |
Visa, Inc. Class A | 5.9 | 4.1 |
Citigroup, Inc. | 5.1 | 4.9 |
Morgan Stanley | 4.8 | 4.8 |
Zions Bancorporation | 4.7 | 5.1 |
Bank of America Corp. | 4.6 | 3.3 |
JPMorgan Chase & Co. | 4.5 | 4.9 |
Alliance Data Systems Corp. | 4.3 | 0.0 |
MasterCard, Inc. Class A | 4.2 | 4.3 |
| 55.4 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Commercial Banks | 35.9% |
|
| Capital Markets | 22.9% |
|
| Diversified Financial Services | 16.1% |
|
| IT Services | 15.0% |
|
| Consumer Finance | 3.4% |
|
| All Others* | 6.7% |
|
As of July 31, 2010 | |||
| Commercial Banks | 40.9% |
|
| Diversified Financial Services | 19.4% |
|
| Capital Markets | 18.4% |
|
| IT Services | 11.2% |
|
| Insurance | 4.6% |
|
| All Others* | 5.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% | |||
Shares | Value | ||
CAPITAL MARKETS - 22.9% | |||
Asset Management & Custody Banks - 6.0% | |||
Bank of New York Mellon Corp. | 73,980 | $ 2,310,395 | |
Franklin Resources, Inc. | 45,621 | 5,504,174 | |
Invesco Ltd. | 33,600 | 831,264 | |
Legg Mason, Inc. | 18,553 | 614,661 | |
| 9,260,494 | ||
Investment Banking & Brokerage - 16.9% | |||
Charles Schwab Corp. | 88,600 | 1,599,230 | |
E*TRADE Financial Corp. (a) | 200,227 | 3,315,759 | |
Evercore Partners, Inc. Class A | 54,700 | 1,766,810 | |
GFI Group, Inc. | 433,378 | 2,218,895 | |
Goldman Sachs Group, Inc. | 38,594 | 6,314,750 | |
Jefferies Group, Inc. (d) | 44,109 | 1,103,166 | |
MF Global Holdings Ltd. (a) | 309,225 | 2,560,383 | |
Morgan Stanley | 251,875 | 7,405,125 | |
| 26,284,118 | ||
TOTAL CAPITAL MARKETS | 35,544,612 | ||
COMMERCIAL BANKS - 35.9% | |||
Diversified Banks - 11.9% | |||
Banco ABC Brasil SA | 83,000 | 671,964 | |
Banco Pine SA | 15,300 | 127,446 | |
Comerica, Inc. | 459,482 | 17,552,213 | |
| 18,351,623 | ||
Regional Banks - 24.0% | |||
Banco Daycoval SA (PN) | 81,800 | 600,930 | |
BancTrust Financial Group, Inc. (a)(d) | 28,700 | 80,073 | |
Bridge Capital Holdings (a) | 4,470 | 39,247 | |
Bridge Capital Holdings (a)(e) | 48,490 | 383,168 | |
CIT Group, Inc. (a) | 67,618 | 3,224,702 | |
CoBiz, Inc. (d) | 209,700 | 1,337,886 | |
First Horizon National Corp. | 151,802 | 1,719,917 | |
First Interstate Bancsystem, Inc. | 38,100 | 494,919 | |
Glacier Bancorp, Inc. | 99,117 | 1,398,541 | |
Huntington Bancshares, Inc. | 147,800 | 1,070,072 | |
Old National Bancorp, Indiana | 6,384 | 68,500 | |
Oriental Financial Group, Inc. | 2,334 | 27,588 | |
Regions Financial Corp. | 1,315,595 | 9,340,725 | |
Savannah Bancorp, Inc. | 5,416 | 40,512 | |
Sun Bancorp, Inc., New Jersey (a) | 1,307 | 5,411 | |
SunTrust Banks, Inc. | 34,000 | 1,034,620 | |
Susquehanna Bancshares, Inc., Pennsylvania | 159,714 | 1,526,866 | |
SVB Financial Group (a) | 23,812 | 1,249,416 | |
Synovus Financial Corp. (d) | 2,055,794 | 5,427,296 | |
United Security Bancshares, California (d) | 4,398 | 15,393 | |
Webster Financial Corp. | 29,600 | 677,248 | |
| |||
Shares | Value | ||
Western Alliance Bancorp. (a) | 21,400 | $ 160,500 | |
Zions Bancorporation | 308,234 | 7,268,158 | |
| 37,191,688 | ||
TOTAL COMMERCIAL BANKS | 55,543,311 | ||
CONSUMER FINANCE - 3.4% | |||
Consumer Finance - 3.4% | |||
Netspend Holdings, Inc. | 116,746 | 1,669,468 | |
SLM Corp. (a) | 247,306 | 3,563,679 | |
| 5,233,147 | ||
DIVERSIFIED FINANCIAL SERVICES - 16.1% | |||
Other Diversified Financial Services - 14.2% | |||
Bank of America Corp. | 521,120 | 7,154,978 | |
Citigroup, Inc. (a) | 1,615,299 | 7,785,741 | |
JPMorgan Chase & Co. | 155,705 | 6,997,383 | |
| 21,938,102 | ||
Specialized Finance - 1.9% | |||
Infrastructure Development Finance Co. Ltd. | 232,315 | 746,500 | |
PHH Corp. (a) | 94,743 | 2,263,410 | |
| 3,009,910 | ||
TOTAL DIVERSIFIED FINANCIAL SERVICES | 24,948,012 | ||
INSURANCE - 2.8% | |||
Multi-Line Insurance - 2.8% | |||
Fairfax Financial Holdings Ltd. (sub. vtg.) | 900 | 343,422 | |
Genworth Financial, Inc. Class A (a) | 297,535 | 4,037,550 | |
| 4,380,972 | ||
INTERNET SOFTWARE & SERVICES - 0.5% | |||
Internet Software & Services - 0.5% | |||
China Finance Online Co. Ltd. ADR (a) | 145,270 | 826,586 | |
IT SERVICES - 15.0% | |||
Data Processing & Outsourced Services - 15.0% | |||
Alliance Data Systems Corp. (a)(d) | 93,468 | 6,611,926 | |
MasterCard, Inc. Class A | 27,500 | 6,504,025 | |
MoneyGram International, Inc. (a) | 397,278 | 981,277 | |
Visa, Inc. Class A | 130,613 | 9,123,318 | |
| 23,220,546 | ||
SPECIALTY RETAIL - 0.2% | |||
Home Improvement Retail - 0.2% | |||
Home Depot, Inc. | 6,600 | 242,682 | |
THRIFTS & MORTGAGE FINANCE - 0.2% | |||
Thrifts & Mortgage Finance - 0.2% | |||
BofI Holding, Inc. (a) | 11,567 | 174,777 | |
Common Stocks - continued | |||
Shares | Value | ||
THRIFTS & MORTGAGE FINANCE - CONTINUED | |||
Thrifts & Mortgage Finance - continued | |||
Cheviot Financial Corp. | 16,255 | $ 145,320 | |
Mayflower Bancorp, Inc. | 2,455 | 21,972 | |
| 342,069 | ||
TOTAL COMMON STOCKS (Cost $144,667,786) | 150,281,937 | ||
Money Market Funds - 6.7% | |||
|
|
|
|
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 10,462,273 | 10,462,273 | |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $155,130,059) | 160,744,210 | |
NET OTHER ASSETS (LIABILITIES) - (3.7)% | (5,749,620) | |
NET ASSETS - 100% | $ 154,994,590 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $383,168 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Bridge Capital Holdings | 11/19/10 | $ 414,590 |
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 | $ 1,276 |
Fidelity Securities Lending Cash Central Fund | 17,054 |
Total | $ 18,330 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 150,281,937 | $ 149,898,769 | $ 383,168 | $ - |
Money Market Funds | 10,462,273 | 10,462,273 | - | - |
Total Investments in Securities: | $ 160,744,210 | $ 160,361,042 | $ 383,168 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $78,880,478 of which $55,672,202 and $23,208,276 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $9,609,877) - See accompanying schedule: Unaffiliated issuers (cost $144,667,786) | $ 150,281,937 |
|
Fidelity Central Funds (cost $10,462,273) | 10,462,273 |
|
Total Investments (cost $155,130,059) |
| $ 160,744,210 |
Receivable for investments sold | 8,412,528 | |
Receivable for fund shares sold | 132,946 | |
Dividends receivable | 37,746 | |
Distributions receivable from Fidelity Central Funds | 2,728 | |
Prepaid expenses | 382 | |
Other receivables | 14,389 | |
Total assets | 169,344,929 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 2,247,905 | |
Payable for investments purchased | 1,123,265 | |
Payable for fund shares redeemed | 305,448 | |
Accrued management fee | 72,894 | |
Distribution and service plan fees payable | 63,718 | |
Other affiliated payables | 41,796 | |
Other payables and accrued expenses | 33,040 | |
Collateral on securities loaned, at value | 10,462,273 | |
Total liabilities | 14,350,339 | |
|
| |
Net Assets | $ 154,994,590 | |
Net Assets consist of: |
| |
Paid in capital | $ 233,268,047 | |
Accumulated net investment loss | (230,572) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (83,657,529) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 5,614,644 | |
Net Assets | $ 154,994,590 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.07 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.07) | $ 11.75 | |
Class T: | $ 11.02 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.02) | $ 11.42 | |
Class B: | $ 10.74 | |
|
|
|
Class C: | $ 10.65 | |
|
|
|
Institutional Class: | $ 11.29 | |
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
Fidelity Advisor Financial Services Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 826,995 |
Income from Fidelity Central Funds |
| 18,330 |
Total income |
| 845,325 |
|
|
|
Expenses | ||
Management fee | $ 404,982 | |
Transfer agent fees | 216,121 | |
Distribution and service plan fees | 359,573 | |
Accounting and security lending fees | 29,460 | |
Custodian fees and expenses | 19,572 | |
Independent trustees' compensation | 452 | |
Registration fees | 43,725 | |
Audit | 24,537 | |
Legal | 623 | |
Miscellaneous | 767 | |
Total expenses before reductions | 1,099,812 | |
Expense reductions | (23,915) | 1,075,897 |
Net investment income (loss) | (230,572) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $437) | (544,040) | |
Foreign currency transactions | (31,268) | |
Total net realized gain (loss) |
| (575,308) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 10,275,611 | |
Assets and liabilities in foreign currencies | (487) | |
Total change in net unrealized appreciation (depreciation) | 10,275,124 | |
Net gain (loss) | 9,699,816 | |
Net increase (decrease) in net assets resulting from operations | $ 9,469,244 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (230,572) | $ (567,469) |
Net realized gain (loss) | (575,308) | 36,190,039 |
Change in net unrealized appreciation (depreciation) | 10,275,124 | (22,169,228) |
Net increase (decrease) in net assets resulting from operations | 9,469,244 | 13,453,342 |
Distributions to shareholders from net investment income | - | (1,313,190) |
Share transactions - net increase (decrease) | (4,465,342) | (11,450,926) |
Redemption fees | 3,326 | 4,230 |
Total increase (decrease) in net assets | 5,007,228 | 693,456 |
|
|
|
Net Assets | ||
Beginning of period | 149,987,362 | 149,293,906 |
End of period (including accumulated net investment loss of $230,572 and undistributed net investment income of $0, respectively) | $ 154,994,590 | $ 149,987,362 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | (.01) | .19 | .30 | .23 | .20 |
Net realized and unrealized gain (loss) | .72 | .93 | (3.58) | (6.41) | .92 | 2.02 |
Total from investment operations | .72 | .92 | (3.39) | (6.11) | 1.15 | 2.22 |
Distributions from net investment income | - | (.10) | (.24) | (.27) | (.22) | (.26) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.10) | (.26) | (1.73) | (3.47) J | (1.89) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.07 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 |
Total Return B, C, D | 6.96% | 9.61% | (25.87)% | (31.67)% | 4.54% | 10.32% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.27% A | 1.27% | 1.29% | 1.21% | 1.23% | 1.25% |
Expenses net of fee waivers, if any | 1.27% A | 1.27% | 1.29% | 1.21% | 1.23% | 1.25% |
Expenses net of all reductions | 1.24% A | 1.22% | 1.28% | 1.21% | 1.22% | 1.23% |
Net investment income (loss) | (.07)% A | (.09)% | 2.12% | 1.75% | 1.01% | .87% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 76,484 | $ 69,723 | $ 68,245 | $ 90,037 | $ 106,722 | $ 85,356 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.04) | .16 | .26 | .18 | .15 |
Net realized and unrealized gain (loss) | .72 | .92 | (3.56) | (6.41) | .91 | 2.02 |
Total from investment operations | .70 | .88 | (3.40) | (6.15) | 1.09 | 2.17 |
Distributions from net investment income | - | (.08) | (.20) | (.19) | (.16) | (.15) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.08) | (.22) | (1.65) | (3.41) J | (1.78) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.02 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 |
Total Return B, C, D | 6.78% | 9.26% | (26.00)% | (31.85)% | 4.25% | 10.11% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.53% A | 1.53% | 1.55% | 1.47% | 1.46% | 1.47% |
Expenses net of fee waivers, if any | 1.53% A | 1.53% | 1.55% | 1.47% | 1.46% | 1.47% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.54% | 1.47% | 1.46% | 1.46% |
Net investment income (loss) | (.33)% A | (.35)% | 1.86% | 1.50% | .77% | .65% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,817 | $ 33,310 | $ 34,927 | $ 53,526 | $ 95,426 | $ 113,344 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.09) | .12 | .18 | .06 | .03 |
Net realized and unrealized gain (loss) | .69 | .91 | (3.50) | (6.29) | .89 | 1.97 |
Total from investment operations | .65 | .82 | (3.38) | (6.11) | .95 | 2.00 |
Distributions from net investment income | - | (.06) | (.12) | (.04) | (.02) | (.01) |
Distributions from net realized gain | - | - | (.02) | (1.44) | (3.25) | (1.57) |
Total distributions | - | (.06) | (.14) | (1.48) | (3.26) J | (1.58) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.74 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 |
Total Return B, C, D | 6.44% | 8.78% | (26.35)% | (32.21)% | 3.71% | 9.52% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.04% | 1.96% | 1.98% | 1.99% |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.04% | 1.96% | 1.98% | 1.99% |
Expenses net of all reductions | 1.99% A | 1.97% | 2.03% | 1.96% | 1.98% | 1.98% |
Net investment income (loss) | (.82)% A | (.85)% | 1.38% | 1.01% | .25% | .13% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,740 | $ 10,992 | $ 12,477 | $ 20,420 | $ 64,837 | $ 113,652 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.09) | .12 | .17 | .06 | .04 |
Net realized and unrealized gain (loss) | .69 | .90 | (3.48) | (6.24) | .90 | 1.98 |
Total from investment operations | .65 | .81 | (3.36) | (6.07) | .96 | 2.02 |
Distributions from net investment income | - | (.06) | (.15) | (.09) | (.05) | (.02) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.60) |
Total distributions | - | (.06) | (.17) | (1.55) | (3.30) J | (1.62) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 |
Total Return B, C, D | 6.50% | 8.79% | (26.38)% | (32.18)% | 3.75% | 9.58% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.04% | 1.96% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.04% | 1.96% | 1.94% | 1.94% |
Expenses net of all reductions | 1.99% A | 1.96% | 2.03% | 1.96% | 1.94% | 1.93% |
Net investment income (loss) | (.82)% A | (.84)% | 1.37% | 1.01% | .29% | .18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29,484 | $ 30,804 | $ 29,849 | $ 37,777 | $ 55,219 | $ 62,469 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .02 | .21 | .36 | .31 | .29 |
Net realized and unrealized gain (loss) | .73 | .95 | (3.63) | (6.51) | .93 | 2.05 |
Total from investment operations | .74 | .97 | (3.42) | (6.15) | 1.24 | 2.34 |
Distributions from net investment income | - | (.11) | (.25) | (.33) | (.30) | (.37) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.11) | (.27) | (1.79) | (3.55) I | (2.00) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 11.29 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 |
Total Return B, C | 7.01% | 9.99% | (25.68)% | (31.47)% | 4.88% | 10.78% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .99% | 1.04% | .93% | .89% | .86% |
Expenses net of fee waivers, if any | .99% A | .99% | 1.04% | .93% | .89% | .86% |
Expenses net of all reductions | .96% A | .94% | 1.03% | .92% | .88% | .85% |
Net investment income (loss) | .21% A | .19% | 2.37% | 2.04% | 1.34% | 1.26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,470 | $ 5,158 | $ 3,797 | $ 5,819 | $ 8,474 | $ 11,892 |
Portfolio turnover rate F | 213% A | 254% | 269% | 48% | 53% | 33% |
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.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE) normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, 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 | $ 9,736,818 |
Gross unrealized depreciation | (8,412,810) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,324,008 |
| |
Tax cost | $ 159,420,202 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
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 $151,200,484 and $160,967,485, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 87,261 | $ 7,326 |
Class T | .25% | .25% | 79,650 | - |
Class B | .75% | .25% | 49,632 | 37,224 |
Class C | .75% | .25% | 143,030 | 19,781 |
|
|
| $ 359,573 | $ 64,331 |
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% 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 | $ 14,003 |
Class T | 3,178 |
Class B* | 11,199 |
Class C* | 2,490 |
| $ 30,870 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financials intermediaries through which the sales are made
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of |
Class A | $ 103,726 | .30 |
Class T | 48,732 | .31 |
Class B | 14,790 | .30 |
Class C | 42,434 | .30 |
Institutional Class | 6,439 | .27 |
| $ 216,121 |
|
* 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 $9,673 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $261 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $17,054. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $23,915 for the period.
Semiannual Report
10. 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 |
Class T | - | 298,090 |
Class B | - | 78,308 |
Class C | - | 206,470 |
Institutional Class | - | 43,682 |
Total | $ - | $ 1,313,190 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,151,755 | 2,082,714 | $ 11,931,630 | $ 22,402,196 |
Reinvestment of distributions | - | 58,808 | - | 610,428 |
Shares redeemed | (976,163) | (2,567,565) | (10,032,895) | (27,335,650) |
Net increase (decrease) | 175,592 | (426,043) | $ 1,898,735 | $ (4,323,026) |
Class T |
|
|
|
|
Shares sold | 243,084 | 481,524 | $ 2,551,889 | $ 5,227,941 |
Reinvestment of distributions | - | 27,047 | - | 280,751 |
Shares redeemed | (401,820) | (952,462) | (4,098,650) | (10,134,806) |
Net increase (decrease) | (158,736) | (443,891) | $ (1,546,761) | $ (4,626,114) |
Class B |
|
|
|
|
Shares sold | 34,282 | 217,909 | $ 354,489 | $ 2,331,426 |
Reinvestment of distributions | - | 6,452 | - | 65,677 |
Shares redeemed | (217,385) | (472,669) | (2,163,349) | (4,904,869) |
Net increase (decrease) | (183,103) | (248,308) | $ (1,808,860) | $ (2,507,766) |
Class C |
|
|
|
|
Shares sold | 222,630 | 749,668 | $ 2,298,151 | $ 8,032,665 |
Reinvestment of distributions | - | 17,064 | - | 172,172 |
Shares redeemed | (534,977) | (913,840) | (5,303,255) | (9,328,999) |
Net increase (decrease) | (312,347) | (147,108) | $ (3,005,104) | $ (1,124,162) |
Institutional Class |
|
|
|
|
Shares sold | 157,223 | 278,977 | $ 1,694,132 | $ 3,114,760 |
Reinvestment of distributions | - | 3,007 | - | 31,721 |
Shares redeemed | (161,902) | (184,671) | (1,697,484) | (2,016,339) |
Net increase (decrease) | (4,679) | 97,313 | $ (3,352) | $ 1,130,142 |
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
Fidelity Advisor Health Care 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,244.10 | $ 6.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,242.10 | $ 8.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.90 | $ 7.38 |
Class B | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,239.60 | $ 11.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Class C | 1.92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.90 | $ 10.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,245.30 | $ 5.32 |
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).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Illumina, Inc. | 6.4 | 5.0 |
Medco Health Solutions, Inc. | 6.5 | 5.1 |
Covidien PLC | 4.9 | 3.5 |
McKesson Corp. | 4.3 | 2.2 |
Gilead Sciences, Inc. | 3.8 | 2.4 |
Merck & Co., Inc. | 3.5 | 5.0 |
Edwards Lifesciences Corp. | 3.3 | 2.0 |
Valeant Pharmaceuticals International, Inc. | 2.9 | 2.8 |
Amgen, Inc. | 2.5 | 2.0 |
Agilent Technologies, Inc. | 2.5 | 1.8 |
| 40.6 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Health Care Providers & Services | 22.5% |
|
| Biotechnology | 19.7% |
|
| Health Care Equipment & Supplies | 18.7% |
|
| Life Sciences Tools & Services | 16.3% |
|
| Pharmaceuticals | 15.3% |
|
| All Others* | 7.5% |
|
As of July 31, 2010 | |||
| Pharmaceuticals | 22.4% |
|
| Biotechnology | 21.4% |
|
| Health Care Providers & Services | 20.4% |
|
| Health Care Equipment & Supplies | 16.5% |
|
| Life Sciences Tools & Services | 10.5% |
|
 | All Others* | 8.8% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 19.7% | |||
Biotechnology - 19.7% | |||
Acorda Therapeutics, Inc. (a) | 69,400 | $ 1,523,330 | |
Alexion Pharmaceuticals, Inc. (a) | 109,998 | 9,220,032 | |
Amgen, Inc. (a) | 201,712 | 11,110,297 | |
Anthera Pharmaceuticals, Inc. | 226,988 | 880,713 | |
ARIAD Pharmaceuticals, Inc. (a) | 454,990 | 2,900,561 | |
ArQule, Inc. (a) | 219,100 | 1,343,083 | |
AVEO Pharmaceuticals, Inc. | 29,639 | 424,727 | |
AVEO Pharmaceuticals, Inc. (e) | 28,715 | 411,486 | |
Biogen Idec, Inc. (a) | 80,679 | 5,282,054 | |
BioMarin Pharmaceutical, Inc. (a) | 279,367 | 7,101,509 | |
Chelsea Therapeutics International Ltd. (a) | 197,200 | 1,175,312 | |
Dynavax Technologies Corp. (a)(d) | 627,600 | 1,882,800 | |
Gilead Sciences, Inc. (a) | 436,465 | 16,751,527 | |
Human Genome Sciences, Inc. (a) | 74,600 | 1,809,796 | |
Incyte Corp. (a)(d) | 181,982 | 2,682,415 | |
Inhibitex, Inc. (a) | 254,500 | 578,988 | |
Keryx Biopharmaceuticals, Inc. (a) | 126,140 | 504,560 | |
Medivir AB (B Shares) (a) | 125,900 | 2,922,483 | |
Micromet, Inc. (a) | 103,300 | 664,219 | |
Neurocrine Biosciences, Inc. (a) | 108,400 | 799,992 | |
Seattle Genetics, Inc. (a) | 137,557 | 2,254,559 | |
Targacept, Inc. (a) | 113,715 | 2,929,298 | |
Theravance, Inc. (a)(d) | 127,600 | 2,684,704 | |
United Therapeutics Corp. (a) | 97,248 | 6,610,919 | |
YM Biosciences, Inc. (a) | 179,800 | 445,414 | |
ZIOPHARM Oncology, Inc. (a)(d) | 210,847 | 1,230,292 | |
| 86,125,070 | ||
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Carriage Services, Inc. (a) | 252,255 | 1,289,023 | |
Stewart Enterprises, Inc. Class A (d) | 167,743 | 1,070,200 | |
| 2,359,223 | ||
FOOD & STAPLES RETAILING - 0.5% | |||
Drug Retail - 0.5% | |||
Droga Raia SA | 16,000 | 251,394 | |
Rite Aid Corp. (a) | 1,403,800 | 1,796,864 | |
| 2,048,258 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 18.7% | |||
Health Care Equipment - 17.4% | |||
American Medical Systems Holdings, Inc. (a) | 205,900 | 4,019,168 | |
ArthroCare Corp. (a) | 69,700 | 1,950,903 | |
Baxter International, Inc. | 50,400 | 2,443,896 | |
Boston Scientific Corp. (a) | 549,200 | 3,833,416 | |
C. R. Bard, Inc. | 111,810 | 10,549,274 | |
Covidien PLC | 453,545 | 21,529,781 | |
Edwards Lifesciences Corp. (a) | 169,072 | 14,251,079 | |
| |||
Shares | Value | ||
Genmark Diagnostics, Inc. | 79,000 | $ 368,140 | |
HeartWare International, Inc. (a)(d) | 27,941 | 2,598,792 | |
Hologic, Inc. (a) | 156,500 | 3,117,480 | |
Masimo Corp. | 154,272 | 4,624,303 | |
Orthofix International NV (a) | 46,105 | 1,318,603 | |
Orthovita, Inc. (a) | 633,763 | 1,302,383 | |
William Demant Holding AS (a) | 32,969 | 2,639,845 | |
Wright Medical Group, Inc. (a) | 91,771 | 1,363,717 | |
| 75,910,780 | ||
Health Care Supplies - 1.3% | |||
Cooper Companies, Inc. | 54,802 | 3,142,347 | |
RTI Biologics, Inc. (a) | 658,976 | 1,766,056 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 340,000 | 880,874 | |
| 5,789,277 | ||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 81,700,057 | ||
HEALTH CARE PROVIDERS & SERVICES - 22.5% | |||
Health Care Distributors & Services - 4.5% | |||
McKesson Corp. | 250,091 | 18,799,340 | |
United Drug PLC (Ireland) | 335,276 | 991,425 | |
| 19,790,765 | ||
Health Care Facilities - 2.2% | |||
Emeritus Corp. (a)(d) | 95,575 | 1,825,483 | |
Hanger Orthopedic Group, Inc. (a) | 90,665 | 1,863,166 | |
Kindred Healthcare, Inc. (a) | 136,010 | 2,544,747 | |
LCA-Vision, Inc. (a) | 164,878 | 1,116,224 | |
Sunrise Senior Living, Inc. (a)(d) | 281,609 | 2,252,872 | |
| 9,602,492 | ||
Health Care Services - 13.4% | |||
Accretive Health, Inc. | 51,708 | 937,983 | |
Air Methods Corp. (a) | 45,700 | 2,341,668 | |
Express Scripts, Inc. (a) | 166,986 | 9,406,321 | |
Fresenius Medical Care AG & Co. KGaA | 64,700 | 3,785,223 | |
HMS Holdings Corp. (a) | 68,000 | 4,375,120 | |
Laboratory Corp. of America Holdings (a) | 33,500 | 3,011,985 | |
Medco Health Solutions, Inc. (a) | 461,275 | 28,147,001 | |
Omnicare, Inc. | 65,300 | 1,692,576 | |
Sun Healthcare Group, Inc. (a) | 145,800 | 1,821,771 | |
Team Health Holdings, Inc. (a) | 180,600 | 2,792,076 | |
| 58,311,724 | ||
Managed Health Care - 2.4% | |||
CIGNA Corp. | 134,100 | 5,634,882 | |
UnitedHealth Group, Inc. | 115,167 | 4,727,605 | |
| 10,362,487 | ||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 98,067,468 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE TECHNOLOGY - 2.2% | |||
Health Care Technology - 2.2% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 335,243 | $ 7,076,980 | |
Computer Programs & Systems, Inc. | 46,521 | 2,414,440 | |
| 9,491,420 | ||
INTERNET SOFTWARE & SERVICES - 0.7% | |||
Internet Software & Services - 0.7% | |||
WebMD Health Corp. (a) | 55,357 | 2,894,064 | |
LIFE SCIENCES TOOLS & SERVICES - 16.3% | |||
Life Sciences Tools & Services - 16.3% | |||
Agilent Technologies, Inc. (a) | 263,212 | 11,010,158 | |
Bruker BioSciences Corp. (a) | 116,000 | 2,030,000 | |
Covance, Inc. (a) | 105,793 | 5,964,609 | |
Illumina, Inc. (a) | 406,000 | 28,152,041 | |
Lonza Group AG | 18,752 | 1,476,684 | |
PAREXEL International Corp. (a) | 104,382 | 2,422,706 | |
PerkinElmer, Inc. | 95,300 | 2,437,774 | |
QIAGEN NV (a)(d) | 379,986 | 7,010,742 | |
Thermo Fisher Scientific, Inc. (a) | 185,000 | 10,594,950 | |
| 71,099,664 | ||
MACHINERY - 0.4% | |||
Industrial Machinery - 0.4% | |||
Pall Corp. | 35,100 | 1,944,891 | |
PERSONAL PRODUCTS - 0.4% | |||
Personal Products - 0.4% | |||
Prestige Brands Holdings, Inc. (a) | 138,572 | 1,529,835 | |
PHARMACEUTICALS - 15.3% | |||
Pharmaceuticals - 15.3% | |||
Ardea Biosciences, Inc. (a) | 182,414 | 4,837,619 | |
Cardiome Pharma Corp. (a) | 279,000 | 1,755,769 | |
Columbia Laboratories, Inc. (a) | 232,000 | 524,320 | |
Jazz Pharmaceuticals, Inc. (a) | 63,700 | 1,424,332 | |
Merck & Co., Inc. | 453,195 | 15,032,478 | |
Optimer Pharmaceuticals, Inc. (a) | 124,354 | 1,367,894 | |
Perrigo Co. | 89,382 | 6,501,647 | |
Pfizer, Inc. | 581,488 | 10,594,711 | |
Piramal Healthcare Ltd. | 162,732 | 1,561,801 | |
Shire PLC sponsored ADR | 89,400 | 7,090,314 | |
Valeant Pharmaceuticals International, Inc. | 347,404 | 12,662,843 | |
Watson Pharmaceuticals, Inc. (a) | 58,000 | 3,162,160 | |
| 66,515,888 | ||
| |||
Shares | Value | ||
SOFTWARE - 0.3% | |||
Application Software - 0.3% | |||
Nuance Communications, Inc. (a) | 70,700 | $ 1,437,331 | |
TOTAL COMMON STOCKS (Cost $325,024,616) | 425,213,169 | ||
Money Market Funds - 3.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 10,536,249 | 10,536,249 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,398,637 | 4,398,637 | |
TOTAL MONEY MARKET FUNDS (Cost $14,934,886) | 14,934,886 | ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $339,959,502) | 440,148,055 | |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (3,930,943) | |
NET ASSETS - 100% | $ 436,217,112 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $411,486 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
AVEO Pharmaceuticals, Inc. | 10/28/10 | $ 387,653 |
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 | $ 6,935 |
Fidelity Securities Lending Cash Central Fund | 104,495 |
Total | $ 111,430 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.1% |
Ireland | 5.1% |
Canada | 3.4% |
Bailiwick of Jersey | 1.6% |
Netherlands | 1.6% |
Others (Individually Less Than 1%) | 3.2% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $32,671,830 of which $30,833,729 and $1,838,101 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,320,296) - See accompanying schedule: Unaffiliated issuers (cost $325,024,616) | $ 425,213,169 |
|
Fidelity Central Funds (cost $14,934,886) | 14,934,886 |
|
Total Investments (cost $339,959,502) |
| $ 440,148,055 |
Foreign currency held at value | 2 | |
Receivable for investments sold | 5,397,973 | |
Receivable for fund shares sold | 471,421 | |
Dividends receivable | 198,188 | |
Distributions receivable from Fidelity Central Funds | 4,261 | |
Prepaid expenses | 991 | |
Other receivables | 11,074 | |
Total assets | 446,231,965 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,071,304 | |
Payable for fund shares redeemed | 1,014,894 | |
Accrued management fee | 203,658 | |
Distribution and service plan fees payable | 170,332 | |
Other affiliated payables | 118,115 | |
Other payables and accrued expenses | 37,913 | |
Collateral on securities loaned, at value | 4,398,637 | |
Total liabilities | 10,014,853 | |
|
| |
Net Assets | $ 436,217,112 | |
Net Assets consist of: |
| |
Paid in capital | $ 344,861,480 | |
Accumulated net investment loss | (1,024,690) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,816,165) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 100,196,487 | |
Net Assets | $ 436,217,112 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 23.65 | |
|
|
|
Maximum offering price per share (100/94.25 of $23.65) | $ 25.09 | |
Class T: | $ 22.93 | |
|
|
|
Maximum offering price per share (100/96.50 of $22.93) | $ 23.76 | |
Class B: | $ 21.47 | |
|
|
|
Class C: | $ 21.42 | |
|
|
|
Institutional Class: | $ 24.62 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,318,047 |
Special dividends |
| 391,090 |
Interest |
| 2,132 |
Income from Fidelity Central Funds (including $104,495 from security lending) |
| 111,430 |
Total income |
| 1,822,699 |
|
|
|
Expenses | ||
Management fee | $ 1,131,693 | |
Transfer agent fees | 599,415 | |
Distribution and service plan fees | 952,185 | |
Accounting and security lending fees | 80,415 | |
Custodian fees and expenses | 21,551 | |
Independent trustees' compensation | 1,194 | |
Registration fees | 44,748 | |
Audit | 28,065 | |
Legal | 1,808 | |
Miscellaneous | 2,269 | |
Total expenses before reductions | 2,863,343 | |
Expense reductions | (15,954) | 2,847,389 |
Net investment income (loss) | (1,024,690) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 28,014,459 | |
Foreign currency transactions | (10,832) | |
Total net realized gain (loss) |
| 28,003,627 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 60,948,251 | |
Assets and liabilities in foreign currencies | 12,210 | |
Total change in net unrealized appreciation (depreciation) | 60,960,461 | |
Net gain (loss) | 88,964,088 | |
Net increase (decrease) in net assets resulting from operations | $ 87,939,398 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,024,690) | $ (2,420,957) |
Net realized gain (loss) | 28,003,627 | 38,061,892 |
Change in net unrealized appreciation (depreciation) | 60,960,461 | 5,982,346 |
Net increase (decrease) in net assets resulting from operations | 87,939,398 | 41,623,281 |
Share transactions - net increase (decrease) | (30,768,285) | (51,082,260) |
Redemption fees | 1,504 | 6,564 |
Total increase (decrease) in net assets | 57,172,617 | (9,452,415) |
|
|
|
Net Assets | ||
Beginning of period | 379,044,495 | 388,496,910 |
End of period (including accumulated net investment loss of $1,024,690 and undistributed net investment income of $0, respectively) | $ 436,217,112 | $ 379,044,495 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) J | (.07) | .02 | (.03) | (.03) | (.09) |
Net realized and unrealized gain (loss) | 4.67 | 1.93 | (2.22) | (1.08) | 1.91 | .96 |
Total from investment operations | 4.64 | 1.86 | (2.20) | (1.11) | 1.88 | .87 |
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 | $ 23.65 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 |
Total Return B, C, D | 24.41% | 10.85% | (11.37)% | (5.64)% | 8.54% | 3.79% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.20% A | 1.22% | 1.23% | 1.20% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.20% A | 1.22% | 1.23% | 1.20% | 1.22% | 1.25% |
Expenses net of all reductions | 1.19% A | 1.21% | 1.23% | 1.19% | 1.21% | 1.21% |
Net investment income (loss) | (.29)% A, J | (.36)% | .11% | (.13)% | (.14)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 209,467 | $ 179,586 | $ 177,890 | $ 220,888 | $ 234,656 | $ 199,221 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.48)%. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) J | (.12) | (.02) | (.08) | (.09) | (.15) |
Net realized and unrealized gain (loss) | 4.53 | 1.89 | (2.18) | (1.06) | 1.87 | .95 |
Total from investment operations | 4.47 | 1.77 | (2.20) | (1.14) | 1.78 | .80 |
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 | $ 22.93 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 |
Total Return B, C, D | 24.21% | 10.61% | (11.65)% | (5.86)% | 8.25% | 3.55% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.45% A | 1.47% | 1.49% | 1.46% | 1.48% | 1.50% |
Expenses net of fee waivers, if any | 1.45% A | 1.47% | 1.49% | 1.46% | 1.48% | 1.50% |
Expenses net of all reductions | 1.45% A | 1.46% | 1.49% | 1.45% | 1.47% | 1.47% |
Net investment income (loss) | (.55)% A, J | (.62)% | (.15)% | (.40)% | (.40)% | (.63)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 117,072 | $ 100,883 | $ 103,772 | $ 143,237 | $ 186,628 | $ 218,280 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.74)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) J | (.20) | (.09) | (.18) | (.20) | (.25) |
Net realized and unrealized gain (loss) | 4.25 | 1.78 | (2.07) | (.99) | 1.79 | .91 |
Total from investment operations | 4.15 | 1.58 | (2.16) | (1.17) | 1.59 | .66 |
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 | $ 21.47 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 |
Total Return B, C, D | 23.96% | 10.04% | (12.07)% | (6.30)% | 7.66% | 3.06% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 1.99% | 2.01% |
Expenses net of fee waivers, if any | 1.95% A | 1.97% | 1.98% | 1.95% | 1.99% | 2.01% |
Expenses net of all reductions | 1.94% A | 1.96% | 1.98% | 1.94% | 1.98% | 1.98% |
Net investment income (loss) | (1.04)% A, J | (1.11)% | (.64)% | (.89)% | (.91)% | (1.14)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22,543 | $ 23,543 | $ 29,381 | $ 55,589 | $ 113,384 | $ 180,364 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.23)%. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) J | (.19) | (.09) | (.17) | (.19) | (.24) |
Net realized and unrealized gain (loss) | 4.23 | 1.78 | (2.07) | (1.00) | 1.79 | .91 |
Total from investment operations | 4.13 | 1.59 | (2.16) | (1.17) | 1.60 | .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 | $ 21.42 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 |
Total Return B, C, D | 23.89% | 10.13% | (12.09)% | (6.31)% | 7.75% | 3.10% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.92% A | 1.94% | 1.98% | 1.94% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 1.92% A | 1.94% | 1.98% | 1.94% | 1.94% | 1.94% |
Expenses net of all reductions | 1.92% A | 1.93% | 1.98% | 1.94% | 1.93% | 1.91% |
Net investment income (loss) | (1.02)% A, J | (1.08)% | (.64)% | (.88)% | (.86)% | (1.07)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 69,226 | $ 60,861 | $ 64,002 | $ 83,133 | $ 105,519 | $ 115,644 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.21)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | - H, I | (.02) | .06 | .03 | .05 | - H |
Net realized and unrealized gain (loss) | 4.85 | 2.01 | (2.30) | (1.12) | 1.96 | .99 |
Total from investment operations | 4.85 | 1.99 | (2.24) | (1.09) | 2.01 | .99 |
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 | $ 24.62 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 |
Total Return B, C | 24.53% | 11.19% | (11.19)% | (5.36)% | 8.90% | 4.21% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .94% A | .96% | .98% | .93% | .88% | .86% |
Expenses net of fee waivers, if any | .94% A | .96% | .98% | .93% | .88% | .86% |
Expenses net of all reductions | .93% A | .95% | .98% | .92% | .87% | .83% |
Net investment income (loss) | (.03)% A, I | (.10)% | .36% | .14% | .19% | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 17,909 | $ 14,172 | $ 13,452 | $ 18,825 | $ 22,174 | $ 20,652 |
Portfolio turnover rate F | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.22)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 on the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, 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 | $ 104,713,637 |
Gross unrealized depreciation | (6,731,559) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 97,982,078 |
| |
Tax cost | $ 342,165,977 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $199,823,478 and $231,679,404, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 240,838 | $ 100 |
Class T | .25% | .25% | 271,274 | - |
Class B | .75% | .25% | 115,279 | 86,508 |
Class C | .75% | .25% | 324,794 | 13,091 |
|
|
| $ 952,185 | $ 99,699 |
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% 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 | $ 11,414 |
Class T | 6,350 |
Class B* | 22,418 |
Class C* | 1,147 |
| $ 41,329 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 286,465 | .30 |
Class T | 165,778 | .31 |
Class B | 34,421 | .30 |
Class C | 89,523 | .28 |
Institutional Class | 23,228 | .29 |
| $ 599,415 |
|
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,555 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $719 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,954 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 514,731 | 1,348,328 | $ 11,038,735 | $ 26,342,454 |
Shares redeemed | (1,102,846) | (2,277,034) | (23,112,791) | (43,802,733) |
Net increase (decrease) | (588,115) | (928,706) | $ (12,074,056) | $ (17,460,279) |
Class T |
|
|
|
|
Shares sold | 184,270 | 653,249 | $ 3,835,683 | $ 12,596,630 |
Shares redeemed | (543,955) | (1,405,398) | (11,176,513) | (26,754,410) |
Net increase (decrease) | (359,685) | (752,149) | $ (7,340,830) | $ (14,157,780) |
Class B |
|
|
|
|
Shares sold | 9,885 | 142,178 | $ 181,210 | $ 2,538,751 |
Shares redeemed | (318,750) | (649,613) | (6,113,352) | (11,572,231) |
Net increase (decrease) | (308,865) | (507,435) | $ (5,932,142) | $ (9,033,480) |
Class C |
|
|
|
|
Shares sold | 104,718 | 307,711 | $ 2,057,150 | $ 5,532,717 |
Shares redeemed | (394,070) | (862,744) | (7,642,616) | (15,167,135) |
Net increase (decrease) | (289,352) | (555,033) | $ (5,585,466) | $ (9,634,418) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 124,466 | 188,384 | $ 2,776,062 | $ 3,842,212 |
Shares redeemed | (113,969) | (227,941) | (2,611,853) | (4,638,515) |
Net increase (decrease) | 10,497 | (39,557) | $ 164,209 | $ (796,303) |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.16% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,242.90 | $ 6.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Class T | 1.41% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,241.30 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.40 | $ 11.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Class C | 1.91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.20 | $ 10.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Institutional Class | .87% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,244.90 | $ 4.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.82 | $ 4.43 |
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
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Electric Co. | 13.6 | 13.4 |
United Technologies Corp. | 5.5 | 6.5 |
Caterpillar, Inc. | 4.4 | 4.1 |
Union Pacific Corp. | 3.6 | 4.5 |
Emerson Electric Co. | 3.4 | 1.2 |
Honeywell International, Inc. | 3.0 | 3.3 |
3M Co. | 3.0 | 5.3 |
Danaher Corp. | 2.6 | 2.8 |
The Boeing Co. | 2.3 | 0.0 |
Ingersoll-Rand Co. Ltd. | 2.1 | 3.9 |
| 43.5 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Machinery | 20.2% |
|
| Industrial Conglomerates | 19.5% |
|
| Aerospace & Defense | 18.7% |
|
| Electrical Equipment | 10.2% |
|
| Road & Rail | 7.5% |
|
| All Others* | 23.9% |
|
As of July 31, 2010 | |||
| Machinery | 25.1% |
|
| Industrial Conglomerates | 20.9% |
|
| Aerospace & Defense | 18.5% |
|
| Road & Rail | 7.6% |
|
| Electrical Equipment | 5.4% |
|
| All Others* | 22.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
AEROSPACE & DEFENSE - 18.7% | |||
Aerospace & Defense - 18.7% | |||
Bombardier, Inc. Class B (sub. vtg.) | 564,600 | $ 3,214,684 | |
DigitalGlobe, Inc. (a) | 108,696 | 3,338,054 | |
Embraer SA sponsored ADR | 47,600 | 1,570,800 | |
Esterline Technologies Corp. (a) | 42,317 | 3,012,124 | |
GeoEye, Inc. (a) | 46,916 | 1,872,887 | |
Goodrich Corp. | 55,100 | 4,993,162 | |
Honeywell International, Inc. | 242,195 | 13,565,342 | |
Meggitt PLC | 179,900 | 1,022,886 | |
Precision Castparts Corp. | 59,152 | 8,458,144 | |
Rockwell Collins, Inc. | 76,397 | 4,900,104 | |
The Boeing Co. | 151,395 | 10,518,925 | |
TransDigm Group, Inc. (a) | 39,087 | 3,028,461 | |
United Technologies Corp. | 302,952 | 24,629,998 | |
| 84,125,571 | ||
AIR FREIGHT & LOGISTICS - 0.5% | |||
Air Freight & Logistics - 0.5% | |||
C.H. Robinson Worldwide, Inc. | 26,804 | 2,066,320 | |
AIRLINES - 0.2% | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 17,800 | 1,001,250 | |
AUTO COMPONENTS - 0.2% | |||
Auto Parts & Equipment - 0.2% | |||
Modine Manufacturing Co. (a) | 63,800 | 1,052,700 | |
AUTOMOBILES - 0.4% | |||
Automobile Manufacturers - 0.4% | |||
General Motors Co. | 54,084 | 1,973,525 | |
BUILDING PRODUCTS - 2.8% | |||
Building Products - 2.8% | |||
A.O. Smith Corp. | 103,301 | 4,422,316 | |
Lennox International, Inc. | 75,200 | 3,695,328 | |
Owens Corning (a) | 137,361 | 4,597,473 | |
| 12,715,117 | ||
COMMERCIAL SERVICES & SUPPLIES - 2.1% | |||
Diversified Support Services - 0.5% | |||
Iron Mountain, Inc. | 86,101 | 2,100,003 | |
Environmental & Facility Services - 0.7% | |||
Republic Services, Inc. | 107,932 | 3,328,623 | |
Security & Alarm Services - 0.9% | |||
The Geo Group, Inc. (a) | 167,235 | 3,975,176 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 9,403,802 | ||
CONSTRUCTION & ENGINEERING - 7.3% | |||
Construction & Engineering - 7.3% | |||
EMCOR Group, Inc. (a) | 164,800 | 4,990,144 | |
Fluor Corp. | 93,960 | 6,501,092 | |
Foster Wheeler Ag (a) | 128,231 | 4,720,183 | |
| |||
Shares | Value | ||
Jacobs Engineering Group, Inc. (a) | 145,911 | $ 7,495,448 | |
MYR Group, Inc. (a) | 109,251 | 2,402,429 | |
Quanta Services, Inc. (a) | 154,500 | 3,666,285 | |
Shaw Group, Inc. (a) | 79,400 | 2,998,938 | |
| 32,774,519 | ||
ELECTRICAL EQUIPMENT - 10.2% | |||
Electrical Components & Equipment - 9.3% | |||
Acuity Brands, Inc. | 26,700 | 1,473,840 | |
AMETEK, Inc. | 92,200 | 3,759,916 | |
Cooper Industries PLC Class A | 83,623 | 5,122,745 | |
Emerson Electric Co. | 258,954 | 15,247,212 | |
Fushi Copperweld, Inc. (a) | 208,221 | 2,007,250 | |
General Cable Corp. (a) | 73,800 | 2,731,338 | |
GrafTech International Ltd. (a) | 127,900 | 2,685,900 | |
Hubbell, Inc. Class B | 16,300 | 998,212 | |
Polypore International, Inc. (a) | 26,300 | 1,266,345 | |
Prysmian SpA | 111,200 | 2,243,911 | |
Regal-Beloit Corp. | 43,912 | 2,930,687 | |
Sensata Technologies Holding BV | 56,000 | 1,764,560 | |
| 42,231,916 | ||
Heavy Electrical Equipment - 0.9% | |||
Alstom SA | 71,131 | 3,969,628 | |
TOTAL ELECTRICAL EQUIPMENT | 46,201,544 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.1% | |||
Electronic Equipment & Instruments - 0.1% | |||
HLS Systems International Ltd. (a) | 18,900 | 303,345 | |
ENERGY EQUIPMENT & SERVICES - 0.5% | |||
Oil & Gas Equipment & Services - 0.5% | |||
Dresser-Rand Group, Inc. (a) | 46,952 | 2,156,505 | |
HOUSEHOLD DURABLES - 1.0% | |||
Household Appliances - 1.0% | |||
Stanley Black & Decker, Inc. | 60,376 | 4,388,128 | |
INDUSTRIAL CONGLOMERATES - 19.5% | |||
Industrial Conglomerates - 19.5% | |||
3M Co. | 153,420 | 13,488,686 | |
General Electric Co. | 3,052,305 | 61,473,424 | |
Textron, Inc. | 327,200 | 8,602,088 | |
Tyco International Ltd. | 99,776 | 4,472,958 | |
| 88,037,156 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.5% | |||
Life Sciences Tools & Services - 0.5% | |||
Agilent Technologies, Inc. (a) | 49,300 | 2,062,219 | |
MACHINERY - 20.2% | |||
Construction & Farm Machinery & Heavy Trucks - 10.3% | |||
Ashok Leyland Ltd. | 469,023 | 603,359 | |
Caterpillar, Inc. | 202,195 | 19,614,937 | |
Cummins, Inc. | 83,971 | 8,890,849 | |
Fiat Industrial SpA (a) | 329,100 | 4,453,567 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - CONTINUED | |||
Construction & Farm Machinery & Heavy Trucks - continued | |||
Komatsu Ltd. | 48,700 | $ 1,450,083 | |
MAN SE | 16,340 | 1,888,877 | |
PACCAR, Inc. | 120,118 | 6,785,466 | |
Tata Motors Ltd. sponsored ADR (d) | 45,900 | 1,113,534 | |
Weichai Power Co. Ltd. (H Shares) | 222,000 | 1,507,657 | |
| 46,308,329 | ||
Industrial Machinery - 9.9% | |||
Actuant Corp. Class A | 103,060 | 2,857,854 | |
Danaher Corp. | 251,654 | 11,591,183 | |
Gardner Denver, Inc. | 40,632 | 2,931,192 | |
Harsco Corp. | 106,031 | 3,421,620 | |
Ingersoll-Rand Co. Ltd. | 202,893 | 9,576,550 | |
Pall Corp. | 75,913 | 4,206,339 | |
Sandvik AB | 62,100 | 1,218,666 | |
SmartHeat, Inc. (a)(d) | 313,515 | 1,492,331 | |
SPX Corp. | 70,400 | 5,517,952 | |
TriMas Corp. (a) | 18,399 | 350,317 | |
Weg SA | 149,400 | 1,779,361 | |
| 44,943,365 | ||
TOTAL MACHINERY | 91,251,694 | ||
MARINE - 0.3% | |||
Marine - 0.3% | |||
Kuehne & Nagel International AG | 9,950 | 1,286,761 | |
PROFESSIONAL SERVICES - 2.1% | |||
Human Resource & Employment Services - 1.4% | |||
Towers Watson & Co. | 119,810 | 6,533,239 | |
Research & Consulting Services - 0.7% | |||
IHS, Inc. Class A (a) | 37,900 | 3,106,284 | |
TOTAL PROFESSIONAL SERVICES | 9,639,523 | ||
ROAD & RAIL - 7.5% | |||
Railroads - 7.2% | |||
CSX Corp. | 108,960 | 7,692,576 | |
Kansas City Southern (a) | 60,231 | 3,010,345 | |
Norfolk Southern Corp. | 92,110 | 5,636,211 | |
Union Pacific Corp. | 169,392 | 16,029,565 | |
| 32,368,697 | ||
| |||
Shares | Value | ||
Trucking - 0.3% | |||
Saia, Inc. (a) | 118,526 | $ 1,696,107 | |
TOTAL ROAD & RAIL | 34,064,804 | ||
TRADING COMPANIES & DISTRIBUTORS - 3.5% | |||
Trading Companies & Distributors - 3.5% | |||
Barloworld Ltd. | 225,900 | 2,178,001 | |
Finning International, Inc. | 53,700 | 1,563,099 | |
Mills Estruturas e Servicos de Engenharia SA | 167,000 | 2,092,132 | |
Rush Enterprises, Inc. Class A (a) | 289,328 | 5,517,485 | |
WESCO International, Inc. (a) | 77,401 | 4,338,326 | |
| 15,689,043 | ||
TOTAL COMMON STOCKS (Cost $360,945,974) | 440,193,526 | ||
Money Market Funds - 4.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 17,368,856 | 17,368,856 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 2,366,351 | 2,366,351 | |
TOTAL MONEY MARKET FUNDS (Cost $19,735,207) | 19,735,207 | ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $380,681,181) | 459,928,733 | |
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (8,991,331) | |
NET ASSETS - 100% | $ 450,937,402 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,537 |
Fidelity Securities Lending Cash Central Fund | 7,419 |
Total | $ 11,956 |
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. |
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 | 3.2% |
Switzerland | 2.4% |
Italy | 1.5% |
Brazil | 1.3% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 4.0% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $49,540,826 of which $29,658,388 and $19,882,438 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,190,045) - See accompanying schedule: Unaffiliated issuers (cost $360,945,974) | $ 440,193,526 |
|
Fidelity Central Funds (cost $19,735,207) | 19,735,207 |
|
Total Investments (cost $380,681,181) |
| $ 459,928,733 |
Receivable for investments sold | 6,060,979 | |
Receivable for fund shares sold | 1,861,292 | |
Dividends receivable | 202,951 | |
Distributions receivable from Fidelity Central Funds | 2,392 | |
Prepaid expenses | 833 | |
Other receivables | 4,834 | |
Total assets | 468,062,014 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 13,292,650 | |
Payable for fund shares redeemed | 981,770 | |
Accrued management fee | 197,798 | |
Distribution and service plan fees payable | 155,475 | |
Other affiliated payables | 95,915 | |
Other payables and accrued expenses | 34,653 | |
Collateral on securities loaned, at value | 2,366,351 | |
Total liabilities | 17,124,612 | |
|
| |
Net Assets | $ 450,937,402 | |
Net Assets consist of: |
| |
Paid in capital | $ 404,341,886 | |
Distributions in excess of net investment income | (144,610) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (32,507,985) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 79,248,111 | |
Net Assets | $ 450,937,402 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 26.74 | |
|
|
|
Maximum offering price per share (100/94.25 of $26.74) | $ 28.37 | |
Class T: | $ 26.36 | |
|
|
|
Maximum offering price per share (100/96.50 of $26.36) | $ 27.32 | |
Class B: | $ 25.04 | |
|
|
|
Class C: | $ 25.11 | |
|
|
|
Institutional Class: | $ 27.70 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,715,404 |
Income from Fidelity Central Funds |
| 11,956 |
Total income |
| 2,727,360 |
|
|
|
Expenses | ||
Management fee | $ 1,023,338 | |
Transfer agent fees | 467,365 | |
Distribution and service plan fees | 820,615 | |
Accounting and security lending fees | 71,632 | |
Custodian fees and expenses | 19,340 | |
Independent trustees' compensation | 992 | |
Registration fees | 50,545 | |
Audit | 23,899 | |
Legal | 1,042 | |
Miscellaneous | 1,906 | |
Total expenses before reductions | 2,480,674 | |
Expense reductions | (8,611) | 2,472,063 |
Net investment income (loss) | 255,297 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 21,302,756 | |
Foreign currency transactions | (33,281) | |
Total net realized gain (loss) |
| 21,269,475 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 59,357,242 | |
Assets and liabilities in foreign currencies | 170 | |
Total change in net unrealized appreciation (depreciation) | 59,357,412 | |
Net gain (loss) | 80,626,887 | |
Net increase (decrease) in net assets resulting from operations | $ 80,882,184 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 255,297 | $ 292,700 |
Net realized gain (loss) | 21,269,475 | 53,593,720 |
Change in net unrealized appreciation (depreciation) | 59,357,412 | 14,761,999 |
Net increase (decrease) in net assets resulting from operations | 80,882,184 | 68,648,419 |
Distributions to shareholders from net investment income | (328,907) | (658,116) |
Share transactions - net increase (decrease) | 36,762,510 | 10,867,809 |
Redemption fees | 3,903 | 9,545 |
Total increase (decrease) in net assets | 117,319,690 | 78,867,657 |
|
|
|
Net Assets | ||
Beginning of period | 333,617,712 | 254,750,055 |
End of period (including distributions in excess of net investment income of $144,610 and distributions in excess of net investment income of $71,000, respectively) | $ 450,937,402 | $ 333,617,712 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .06 | .13 | .11 | .09 | .08 |
Net realized and unrealized gain (loss) | 5.19 | 4.68 | (5.08) | (1.17) | 5.11 | 1.63 |
Total from investment operations | 5.23 | 4.74 | (4.95) | (1.06) | 5.20 | 1.71 |
Distributions from net investment income | (.03) | (.07) | (.13) | - | (.06) | - |
Distributions from net realized gain | - | - | (.02) | (2.46) | (1.81) | (1.08) |
Total distributions | (.03) | (.07) | (.15) | (2.46) | (1.87) | (1.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.74 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 |
Total Return B, C, D | 24.29% | 28.13% | (22.49)% | (4.71)% | 25.13% | 8.40% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.16% A | 1.18% | 1.23% | 1.17% | 1.21% | 1.26% |
Expenses net of fee waivers, if any | 1.16% A | 1.18% | 1.23% | 1.17% | 1.21% | 1.26% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.23% | 1.16% | 1.21% | 1.24% |
Net investment income (loss) | .34% A | .31% | .89% | .46% | .38% | .34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 223,666 | $ 165,029 | $ 130,860 | $ 188,859 | $ 157,451 | $ 99,255 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 | .10 | .05 | .03 | .02 |
Net realized and unrealized gain (loss) | 5.12 | 4.61 | (5.03) | (1.15) | 5.05 | 1.61 |
Total from investment operations | 5.13 | 4.62 | (4.93) | (1.10) | 5.08 | 1.63 |
Distributions from net investment income | (.01) | (.02) | (.08) | - | (.03) | - |
Distributions from net realized gain | - | - | (.02) | (2.40) | (1.74) | (1.04) |
Total distributions | (.01) | (.02) | (.10) | (2.40) | (1.77) | (1.04) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.36 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 |
Total Return B, C, D | 24.13% | 27.80% | (22.68)% | (4.96)% | 24.82% | 8.13% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.41% A | 1.44% | 1.48% | 1.41% | 1.46% | 1.49% |
Expenses net of fee waivers, if any | 1.41% A | 1.44% | 1.48% | 1.41% | 1.46% | 1.49% |
Expenses net of all reductions | 1.40% A | 1.43% | 1.48% | 1.41% | 1.46% | 1.47% |
Net investment income (loss) | .09% A | .06% | .63% | .21% | .13% | .11% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 71,028 | $ 58,202 | $ 48,054 | $ 85,025 | $ 75,530 | $ 55,936 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.09) | .02 | (.07) | (.09) | (.09) |
Net realized and unrealized gain (loss) | 4.87 | 4.41 | (4.82) | (1.10) | 4.87 | 1.55 |
Total from investment operations | 4.82 | 4.32 | (4.80) | (1.17) | 4.78 | 1.46 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | - | - | - | (2.28) | (1.61) | (.99) |
Total distributions | - | - | (.04) | (2.28) | (1.61) | (.99) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.04 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 |
Total Return B, C, D | 23.84% | 27.17% | (23.10)% | (5.46)% | 24.18% | 7.54% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.04% |
Expenses net of fee waivers, if any | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.04% |
Expenses net of all reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.02% |
Net investment income (loss) | (.46)% A | (.48)% | .13% | (.33)% | (.41)% | (.44)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,555 | $ 29,048 | $ 25,212 | $ 39,989 | $ 44,330 | $ 37,082 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.08) | .02 | (.06) | (.08) | (.08) |
Net realized and unrealized gain (loss) | 4.88 | 4.42 | (4.83) | (1.11) | 4.88 | 1.56 |
Total from investment operations | 4.83 | 4.34 | (4.81) | (1.17) | 4.80 | 1.48 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | - | - | - | (2.30) | (1.70) | (1.00) |
Total distributions | - | - | (.04) | (2.30) | (1.70) | (1.00) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.11 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 |
Total Return B, C, D | 23.82% | 27.23% | (23.09)% | (5.44)% | 24.25% | 7.59% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.91% A | 1.93% | 1.98% | 1.91% | 1.94% | 1.99% |
Expenses net of fee waivers, if any | 1.91% A | 1.93% | 1.98% | 1.91% | 1.94% | 1.99% |
Expenses net of all reductions | 1.90% A | 1.92% | 1.98% | 1.90% | 1.94% | 1.97% |
Net investment income (loss) | (.41)% A | (.43)% | .14% | (.28)% | (.35)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 68,464 | $ 51,760 | $ 37,862 | $ 57,742 | $ 57,862 | $ 42,363 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .13 | .19 | .18 | .16 | .16 |
Net realized and unrealized gain (loss) | 5.38 | 4.83 | (5.27) | (1.19) | 5.27 | 1.66 |
Total from investment operations | 5.46 | 4.96 | (5.08) | (1.01) | 5.43 | 1.82 |
Distributions from net investment income | (.06) | (.11) | (.17) | - | (.13) | - |
Distributions from net realized gain | - | - | (.02) | (2.53) | (1.81) | (1.11) |
Total distributions | (.06) | (.11) | (.19) | (2.53) | (1.94) | (1.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.70 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 |
Total Return B, C | 24.49% | 28.52% | (22.31)% | (4.40)% | 25.53% | 8.73% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .87% A | .89% | .96% | .88% | .92% | .91% |
Expenses net of fee waivers, if any | .87% A | .89% | .96% | .88% | .92% | .91% |
Expenses net of all reductions | .86% A | .88% | .95% | .87% | .91% | .89% |
Net investment income (loss) | .63% A | .61% | 1.16% | .75% | .67% | .69% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 55,224 | $ 29,578 | $ 12,762 | $ 33,642 | $ 19,498 | $ 13,043 |
Portfolio turnover rate F | 77% A | 110% | 135% | 91% | 130% | 94% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 79,750,986 |
Gross unrealized depreciation | (3,435,086) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 76,315,900 |
| |
Tax cost | $ 383,612,833 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $166,961,188 and $139,559,238, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 229,809 | - |
Class T | .25% | .25% | 155,188 | - |
Class B | .75% | .25% | 149,492 | 112,119 |
Class C | .75% | .25% | 286,126 | 55,987 |
|
|
| $ 820,615 | 168,106 |
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% 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 | $ 39,050 |
Class T | 7,272 |
Class B* | 34,507 |
Class C* | 1,436 |
| $ 82,265 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 234,679 | .26 |
Class T | 78,987 | .25 |
Class B | 44,754 | .30 |
Class C | 72,743 | .25 |
Institutional Class | 36,202 | .22 |
| $ 467,365 |
|
* 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
5. 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 $2,855 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $631 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $7,419. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $8,611 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2011 | Year ended | |
From net investment income |
|
|
Class A | $ 235,263 | $ 508,657 |
Class T | 13,200 | 67,522 |
Class B | - | - |
Class C | - | - |
Institutional Class | 80,444 | 81,937 |
Total | $ 328,907 | $ 658,116 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended |
Class A |
|
|
|
|
Shares sold | 1,526,260 | 2,293,002 | $ 37,351,822 | $ 46,751,968 |
Reinvestment of distributions | 8,108 | 24,478 | 205,122 | 465,084 |
Shares redeemed | (833,458) | (2,413,077) | (19,577,054) | (48,350,817) |
Net increase (decrease) | 700,910 | (95,597) | $ 17,979,890 | $ (1,133,765) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended |
Class T |
|
|
|
|
Shares sold | 305,538 | 640,220 | $ 7,242,234 | $ 12,504,319 |
Reinvestment of distributions | 500 | 3,441 | 12,596 | 64,976 |
Shares redeemed | (352,465) | (791,417) | (8,009,702) | (15,762,597) |
Net increase (decrease) | (46,427) | (147,756) | $ (754,872) | $ (3,193,302) |
Class B |
|
|
|
|
Shares sold | 40,519 | 230,669 | $ 890,229 | $ 4,429,240 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (176,909) | (379,173) | (3,834,258) | (7,171,787) |
Net increase (decrease) | (136,390) | (148,504) | $ (2,944,029) | $ (2,742,547) |
Class C |
|
|
|
|
Shares sold | 444,395 | 965,412 | $ 10,090,157 | $ 18,697,081 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (270,929) | (787,460) | (5,890,230) | (14,785,582) |
Net increase (decrease) | 173,466 | 177,952 | $ 4,199,927 | $ 3,911,499 |
Institutional Class |
|
|
|
|
Shares sold | 1,064,964 | 1,199,584 | $ 27,581,412 | $ 26,360,020 |
Reinvestment of distributions | 2,269 | 3,299 | 59,382 | 64,789 |
Shares redeemed | (400,004) | (607,717) | (9,359,200) | (12,398,885) |
Net increase (decrease) | 667,229 | 595,166 | $ 18,281,594 | $ 14,025,924 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,315.20 | $ 6.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.21 | $ 6.06 |
Class T | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,313.40 | $ 8.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.95 | $ 7.32 |
Class B | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,310.40 | $ 11.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,310.70 | $ 11.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,316.70 | $ 5.26 |
HypotheticalA |
| $ 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
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 13.7 | 13.3 |
Google, Inc. Class A | 6.3 | 4.9 |
Oracle Corp. | 4.7 | 4.0 |
Corning, Inc. | 3.3 | 0.4 |
QUALCOMM, Inc. | 3.2 | 3.5 |
EMC Corp. | 2.3 | 0.9 |
Cisco Systems, Inc. | 2.2 | 3.5 |
Accenture PLC Class A | 1.8 | 0.5 |
Trimble Navigation Ltd. | 1.7 | 1.4 |
Marvell Technology Group Ltd. | 1.7 | 0.6 |
| 40.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Software | 21.2% |
|
| Computers & Peripherals | 20.5% |
|
| Semiconductors & Semiconductor Equipment | 15.8% |
|
| Internet Software & Services | 10.8% |
|
| Communications Equipment | 10.4% |
|
| All Others* | 21.3% |
|
As of July 31, 2010 | |||
| Software | 23.0% |
|
| Computers & Peripherals | 21.1% |
|
| Communications Equipment | 14.4% |
|
| Semiconductors & Semiconductor Equipment | 14.2% |
|
| Internet Software & Services | 10.4% |
|
| All Others* | 16.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
AUTOMOBILES - 0.0% | |||
Automobile Manufacturers - 0.0% | |||
Tesla Motors, Inc. (a) | 7,300 | $ 175,930 | |
BUILDING PRODUCTS - 0.1% | |||
Building Products - 0.1% | |||
Asahi Glass Co. Ltd. | 33,000 | 411,294 | |
CHEMICALS - 0.0% | |||
Commodity Chemicals - 0.0% | |||
STR Holdings, Inc. (a)(d) | 14,023 | 256,340 | |
COMMUNICATIONS EQUIPMENT - 10.3% | |||
Communications Equipment - 10.3% | |||
Acme Packet, Inc. (a) | 25,817 | 1,388,438 | |
Adtran, Inc. | 73,649 | 3,029,183 | |
Alcatel-Lucent SA sponsored ADR (a) | 133,502 | 441,892 | |
Aruba Networks, Inc. (a) | 9,800 | 211,190 | |
Balda AG (a) | 83,039 | 829,185 | |
China Wireless Technologies Ltd. | 1,176,000 | 650,082 | |
Ciena Corp. (a) | 133,449 | 2,939,881 | |
Cisco Systems, Inc. (a) | 878,218 | 18,574,311 | |
DG FastChannel, Inc. (a) | 31,179 | 854,616 | |
Emulex Corp. (a) | 5,400 | 61,614 | |
F5 Networks, Inc. (a) | 576 | 62,427 | |
Finisar Corp. (a) | 3,674 | 122,344 | |
HTC Corp. | 345,300 | 11,640,796 | |
Infinera Corp. (a) | 70,900 | 520,052 | |
Juniper Networks, Inc. (a) | 60,898 | 2,260,534 | |
Motorola Mobility Holdings, Inc. | 250,273 | 6,975,109 | |
Motorola Solutions, Inc. | 5,662 | 219,516 | |
QUALCOMM, Inc. | 498,217 | 26,968,486 | |
Riverbed Technology, Inc. (a) | 47,870 | 1,717,097 | |
Sandvine Corp. (a) | 751,600 | 2,166,840 | |
Sandvine Corp. (U.K.) (a) | 554,200 | 1,610,950 | |
Sonus Networks, Inc. (a) | 29,060 | 79,915 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 101,641 | 1,257,299 | |
ZTE Corp. (H Shares) | 265,600 | 1,047,507 | |
| 85,629,264 | ||
COMPUTERS & PERIPHERALS - 20.5% | |||
Computer Hardware - 15.4% | |||
Apple, Inc. (a) | 335,634 | 113,887,330 | |
Hewlett-Packard Co. | 269,569 | 12,316,608 | |
Stratasys, Inc. (a) | 56,775 | 1,875,278 | |
| 128,079,216 | ||
Computer Storage & Peripherals - 5.1% | |||
Chicony Electronics Co. Ltd. | 198,748 | 435,275 | |
EMC Corp. (a) | 775,275 | 19,296,595 | |
Imagination Technologies Group PLC (a) | 326,491 | 1,883,050 | |
NetApp, Inc. (a) | 114,047 | 6,241,792 | |
SanDisk Corp. (a) | 131,190 | 5,952,090 | |
Seagate Technology (a) | 228,348 | 3,196,872 | |
| |||
Shares | Value | ||
Smart Technologies, Inc. Class A (a) | 52,300 | $ 492,666 | |
Western Digital Corp. (a) | 140,635 | 4,784,403 | |
| 42,282,743 | ||
TOTAL COMPUTERS & PERIPHERALS | 170,361,959 | ||
CONSUMER FINANCE - 0.1% | |||
Consumer Finance - 0.1% | |||
Discover Financial Services | 40,000 | 823,600 | |
Netspend Holdings, Inc. (d) | 3,100 | 44,330 | |
| 867,930 | ||
DIVERSIFIED CONSUMER SERVICES - 0.0% | |||
Education Services - 0.0% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 809 | 79,816 | |
DIVERSIFIED FINANCIAL SERVICES - 0.0% | |||
Specialized Finance - 0.0% | |||
CME Group, Inc. | 1,213 | 374,283 | |
ELECTRICAL EQUIPMENT - 0.1% | |||
Electrical Components & Equipment - 0.1% | |||
A123 Systems, Inc. (a)(d) | 2,200 | 19,932 | |
Acuity Brands, Inc. | 1,582 | 87,326 | |
American Superconductor Corp. (a)(d) | 10,569 | 288,217 | |
| 395,475 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 9.1% | |||
Electronic Components - 5.2% | |||
Aeroflex Holding Corp. | 47,400 | 743,706 | |
Amphenol Corp. Class A | 1,400 | 77,476 | |
AU Optronics Corp. sponsored ADR (a)(d) | 210,614 | 2,021,894 | |
Cando Corp. (a) | 1,259,298 | 956,182 | |
Cando Corp. rights 2/11/11 (a) | 303,742 | 42,361 | |
Chimei Innolux Corp. (a) | 1,267,000 | 1,603,383 | |
Corning, Inc. | 1,233,867 | 27,404,186 | |
DigiTech Systems Co., Ltd. | 64,859 | 1,169,909 | |
E Ink Holdings, Inc. (a) | 308,000 | 561,061 | |
E Ink Holdings, Inc. GDR (a)(e) | 4,700 | 85,675 | |
J Touch Corp. | 176,000 | 636,364 | |
J Touch Corp. rights 3/11/11 (a) | 11,750 | 10,115 | |
LG Display Co. Ltd. sponsored ADR (d) | 124,732 | 2,114,207 | |
Nippon Electric Glass Co. Ltd. | 218,000 | 3,280,093 | |
Vishay Intertechnology, Inc. (a) | 53,057 | 875,441 | |
Young Fast Optoelectron Co. Ltd. | 196,000 | 1,964,050 | |
| 43,546,103 | ||
Electronic Equipment & Instruments - 0.2% | |||
Chroma ATE, Inc. | 364,003 | 1,128,108 | |
Itron, Inc. (a) | 1,027 | 59,587 | |
Test Research, Inc. | 266,500 | 438,660 | |
Vishay Precision Group, Inc. (a) | 5,039 | 93,473 | |
| 1,719,828 | ||
Common Stocks - continued | |||
Shares | Value | ||
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED | |||
Electronic Manufacturing Services - 2.7% | |||
Benchmark Electronics, Inc. (a) | 1,200 | $ 22,788 | |
Flextronics International Ltd. (a) | 148,900 | 1,189,711 | |
IPG Photonics Corp. (a) | 3,600 | 124,740 | |
Jabil Circuit, Inc. | 334,566 | 6,761,579 | |
Ju Teng International Holdings Ltd. | 190,000 | 88,459 | |
KEMET Corp. (a) | 15,200 | 237,120 | |
Multi-Fineline Electronix, Inc. (a) | 2,289 | 66,152 | |
Trimble Navigation Ltd. (a) | 311,295 | 14,344,474 | |
| 22,835,023 | ||
Technology Distributors - 1.0% | |||
Anixter International, Inc. | 33,635 | 2,128,086 | |
Arrow Electronics, Inc. (a) | 33,478 | 1,265,468 | |
Avnet, Inc. (a) | 35,800 | 1,275,196 | |
Digital China Holdings Ltd. (H Shares) | 795,000 | 1,525,395 | |
Inspur International Ltd. | 1,899,000 | 163,186 | |
Synnex Technology International Corp. | 154,633 | 407,882 | |
VST Holdings Ltd. (a) | 2,000,000 | 728,504 | |
WPG Holding Co. Ltd. | 204,565 | 402,931 | |
| 7,896,648 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 75,997,602 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.6% | |||
Health Care Equipment - 0.3% | |||
Biosensors International Group Ltd. (a) | 2,005,000 | 1,739,798 | |
China Medical Technologies, Inc. sponsored ADR (a)(d) | 1,900 | 23,332 | |
Golden Meditech Holdings Ltd. (a) | 2,168,000 | 408,752 | |
Microport Scientific Corp. | 492,000 | 389,975 | |
Mingyuan Medicare Development Co. Ltd. | 270,000 | 34,283 | |
| 2,596,140 | ||
Health Care Supplies - 0.3% | |||
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 820,000 | 2,124,461 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 4,720,601 | ||
HEALTH CARE PROVIDERS & SERVICES - 0.0% | |||
Health Care Distributors & Services - 0.0% | |||
Sinopharm Group Co. Ltd. (H Shares) | 88,400 | 312,361 | |
HEALTH CARE TECHNOLOGY - 0.1% | |||
Health Care Technology - 0.1% | |||
athenahealth, Inc. (a) | 600 | 25,764 | |
Medidata Solutions, Inc. (a) | 17,600 | 439,120 | |
| 464,884 | ||
| |||
Shares | Value | ||
HOTELS, RESTAURANTS & LEISURE - 0.0% | |||
Hotels, Resorts & Cruise Lines - 0.0% | |||
Ctrip.com International Ltd. sponsored ADR (a) | 1,600 | $ 65,856 | |
HOUSEHOLD DURABLES - 0.2% | |||
Consumer Electronics - 0.0% | |||
Skyworth Digital Holdings Ltd. | 638,651 | 398,092 | |
TomTom Group BV (a) | 160 | 1,580 | |
| 399,672 | ||
Household Appliances - 0.2% | |||
Haier Electronics Group Co. Ltd. (a) | 1,232,000 | 1,289,391 | |
TOTAL HOUSEHOLD DURABLES | 1,689,063 | ||
INTERNET & CATALOG RETAIL - 0.7% | |||
Internet Retail - 0.7% | |||
Amazon.com, Inc. (a) | 4,569 | 775,085 | |
E-Commerce China Dangdang, Inc. ADR | 260 | 7,358 | |
Expedia, Inc. | 113,400 | 2,853,144 | |
MakeMyTrip Ltd. | 8,300 | 238,625 | |
Priceline.com, Inc. (a) | 4,703 | 2,015,330 | |
| 5,889,542 | ||
INTERNET SOFTWARE & SERVICES - 10.8% | |||
Internet Software & Services - 10.8% | |||
Akamai Technologies, Inc. (a) | 15,229 | 735,865 | |
Alibaba.com Ltd. (d) | 1,456,500 | 2,876,834 | |
Baidu.com, Inc. sponsored ADR (a) | 11,435 | 1,242,184 | |
China Finance Online Co. Ltd. ADR (a) | 86,946 | 494,723 | |
ChinaCache International Holdings Ltd. sponsored ADR | 1,400 | 30,912 | |
DealerTrack Holdings, Inc. (a) | 12,300 | 243,110 | |
Digital River, Inc. (a) | 23,641 | 750,365 | |
eBay, Inc. (a) | 355,626 | 10,796,805 | |
Google, Inc. Class A (a) | 86,564 | 51,969,563 | |
IntraLinks Holdings, Inc. | 69,990 | 1,416,598 | |
Kakaku.com, Inc. | 165 | 931,743 | |
LogMeIn, Inc. (a) | 31,900 | 1,229,107 | |
Mail.ru Group Ltd. GDR unit (a)(e) | 42,400 | 1,509,440 | |
MediaMind Technologies, Inc. (a) | 5,100 | 77,163 | |
Mercadolibre, Inc. (a) | 37,634 | 2,550,833 | |
Monster Worldwide, Inc. (a) | 193,304 | 3,218,512 | |
NetEase.com, Inc. sponsored ADR (a) | 21,100 | 851,174 | |
Open Text Corp. (a) | 1,700 | 83,956 | |
OpenTable, Inc. (a) | 10,700 | 841,234 | |
Rackspace Hosting, Inc. (a) | 26,200 | 877,962 | |
RightNow Technologies, Inc. (a) | 15,065 | 390,635 | |
Tencent Holdings Ltd. | 49,500 | 1,282,449 | |
Terremark Worldwide, Inc. (a) | 28,600 | 541,684 | |
The Knot, Inc. (a) | 5,200 | 57,616 | |
VeriSign, Inc. | 21,300 | 716,745 | |
VistaPrint Ltd. (a) | 71,947 | 3,643,396 | |
Common Stocks - continued | |||
Shares | Value | ||
INTERNET SOFTWARE & SERVICES - CONTINUED | |||
Internet Software & Services - continued | |||
Vocus, Inc. (a) | 14,700 | $ 381,171 | |
YouKu.com, Inc. ADR (a)(d) | 7,000 | 207,410 | |
| 89,949,189 | ||
IT SERVICES - 7.7% | |||
Data Processing & Outsourced Services - 2.8% | |||
Computer Sciences Corp. | 71,000 | 3,783,590 | |
DST Systems, Inc. | 8,904 | 423,474 | |
Fidelity National Information Services, Inc. | 11,029 | 335,612 | |
Fiserv, Inc. (a) | 1,300 | 80,301 | |
MasterCard, Inc. Class A | 18,500 | 4,375,435 | |
Paychex, Inc. | 85,000 | 2,720,000 | |
Syntel, Inc. | 4,200 | 234,234 | |
VeriFone Systems, Inc. (a) | 70,406 | 2,812,016 | |
Visa, Inc. Class A | 119,772 | 8,366,074 | |
| 23,130,736 | ||
IT Consulting & Other Services - 4.9% | |||
Accenture PLC Class A | 295,014 | 15,184,371 | |
Atos Origin SA (a) | 45,342 | 2,524,207 | |
Camelot Information Systems, Inc. ADR | 22,500 | 504,000 | |
China Information Technology, Inc. (a) | 17 | 77 | |
Cognizant Technology Solutions Corp. Class A (a) | 157,720 | 11,505,674 | |
Hi Sun Technology (China) Ltd. (a) | 408,000 | 147,568 | |
hiSoft Technology International Ltd. ADR (a) | 83,393 | 2,511,797 | |
International Business Machines Corp. | 25,506 | 4,131,972 | |
Sapient Corp. | 53,100 | 634,545 | |
Teradata Corp. (a) | 82,900 | 3,563,871 | |
| 40,708,082 | ||
TOTAL IT SERVICES | 63,838,818 | ||
LEISURE EQUIPMENT & PRODUCTS - 0.0% | |||
Photographic Products - 0.0% | |||
Eastman Kodak Co. (a) | 77,700 | 284,382 | |
LIFE SCIENCES TOOLS & SERVICES - 0.4% | |||
Life Sciences Tools & Services - 0.4% | |||
Agilent Technologies, Inc. (a) | 49,700 | 2,078,951 | |
Illumina, Inc. (a) | 13,800 | 956,892 | |
| 3,035,843 | ||
MACHINERY - 0.1% | |||
Industrial Machinery - 0.1% | |||
Meyer Burger Technology AG (a) | 88 | 2,717 | |
Mirle Automation Corp. | 359,000 | 412,899 | |
Sunpower Group Ltd. (a) | 1,280,000 | 495,310 | |
| 910,926 | ||
| |||
Shares | Value | ||
MEDIA - 0.6% | |||
Advertising - 0.5% | |||
AirMedia Group, Inc. ADR (a)(d) | 93,500 | $ 634,865 | |
Focus Media Holding Ltd. ADR (a) | 51,200 | 1,275,392 | |
ReachLocal, Inc. | 91,813 | 2,001,523 | |
| 3,911,780 | ||
Cable & Satellite - 0.1% | |||
Virgin Media, Inc. | 40,700 | 1,024,012 | |
TOTAL MEDIA | 4,935,792 | ||
METALS & MINING - 0.1% | |||
Diversified Metals & Mining - 0.0% | |||
Timminco Ltd. (a) | 5,600 | 3,244 | |
Steel - 0.1% | |||
Xingda International Holdings Ltd. | 703,000 | 692,469 | |
TOTAL METALS & MINING | 695,713 | ||
OFFICE ELECTRONICS - 0.2% | |||
Office Electronics - 0.2% | |||
Xerox Corp. | 144,264 | 1,532,084 | |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2% | |||
Real Estate Services - 0.2% | |||
China Real Estate Information Corp. ADR (a)(d) | 167,174 | 1,253,805 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 15.8% | |||
Semiconductor Equipment - 2.9% | |||
Advanced Energy Industries, Inc. (a) | 5,757 | 88,917 | |
Amkor Technology, Inc. (a) | 556,974 | 4,533,768 | |
ASM International NV unit (a) | 12,900 | 469,431 | |
ASML Holding NV | 11,300 | 474,713 | |
centrotherm photovoltaics AG (a) | 1,493 | 61,318 | |
Cymer, Inc. (a) | 73,938 | 3,592,647 | |
GCL-Poly Energy Holdings Ltd. (a) | 250,000 | 116,394 | |
Kulicke & Soffa Industries, Inc. (a) | 33,700 | 328,575 | |
Lam Research Corp. (a) | 3,217 | 160,496 | |
LTX-Credence Corp. (a) | 33,420 | 296,268 | |
MEMC Electronic Materials, Inc. (a) | 7,735 | 85,781 | |
Novellus Systems, Inc. (a) | 8,917 | 321,636 | |
Renewable Energy Corp. ASA (a)(d) | 18,000 | 57,664 | |
Roth & Rau AG (a) | 2,758 | 55,880 | |
Sumco Corp. (a) | 200 | 3,048 | |
Teradyne, Inc. (a) | 332,221 | 5,541,446 | |
Tessera Technologies, Inc. (a) | 3,600 | 62,352 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 85,100 | 3,782,695 | |
Verigy Ltd. (a) | 285,600 | 3,809,904 | |
| 23,842,933 | ||
Semiconductors - 12.9% | |||
Advanced Micro Devices, Inc. (a) | 44,923 | 351,747 | |
Alpha & Omega Semiconductor Ltd. (a) | 69,038 | 976,197 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
Altera Corp. | 2,250 | $ 84,533 | |
Applied Micro Circuits Corp. (a) | 34,350 | 338,004 | |
ARM Holdings PLC sponsored ADR | 16,326 | 408,803 | |
Atmel Corp. (a) | 7,286 | 98,652 | |
Avago Technologies Ltd. | 196,111 | 5,630,347 | |
Broadcom Corp. Class A | 66,271 | 2,988,159 | |
Canadian Solar, Inc. (a) | 100 | 1,402 | |
Cavium Networks, Inc. (a) | 27,551 | 1,089,367 | |
Cirrus Logic, Inc. (a)(d) | 119,164 | 2,506,019 | |
Cree, Inc. (a) | 1,334 | 67,354 | |
CSR PLC (a) | 104,354 | 644,654 | |
Cypress Semiconductor Corp. (a) | 186,719 | 4,042,466 | |
Dialog Semiconductor PLC (a) | 35,000 | 788,202 | |
Duksan Hi-Metal Co. Ltd. (a) | 40,012 | 769,960 | |
Elpida Memory, Inc. (a)(d) | 148,200 | 2,145,000 | |
Energy Conversion Devices, Inc. (a)(d) | 8,000 | 32,640 | |
Fairchild Semiconductor International, Inc. (a) | 238,318 | 4,242,060 | |
First Solar, Inc. (a) | 545 | 84,246 | |
Hittite Microwave Corp. (a) | 1,279 | 76,459 | |
Hynix Semiconductor, Inc. (a) | 91,280 | 2,416,745 | |
Inotera Memories, Inc. (a) | 4,908,000 | 3,109,752 | |
Inphi Corp. | 48,389 | 916,004 | |
Intel Corp. | 2,881 | 61,826 | |
International Rectifier Corp. (a) | 50,565 | 1,619,597 | |
Intersil Corp. Class A | 347,113 | 5,248,349 | |
JA Solar Holdings Co. Ltd. ADR (a) | 10,400 | 71,760 | |
Jinkosolar Holdings Co. Ltd. ADR (d) | 2,756 | 71,959 | |
LSI Corp. (a) | 93,369 | 577,954 | |
Marvell Technology Group Ltd. (a) | 729,062 | 13,859,469 | |
Micron Technology, Inc. (a) | 875,646 | 9,229,309 | |
Microsemi Corp. (a) | 4,100 | 92,209 | |
Monolithic Power Systems, Inc. (a) | 53,832 | 789,715 | |
National Semiconductor Corp. | 109,121 | 1,654,274 | |
Netlogic Microsystems, Inc. (a) | 2,500 | 87,150 | |
NVIDIA Corp. (a) | 549,700 | 13,148,824 | |
NXP Semiconductors NV | 167,453 | 4,310,240 | |
O2Micro International Ltd. sponsored ADR (a) | 38,400 | 253,440 | |
PMC-Sierra, Inc. (a) | 18,400 | 143,888 | |
Power Integrations, Inc. | 77,015 | 2,844,164 | |
Powertech Technology, Inc. | 101,000 | 379,098 | |
Radiant Opto-Electronics Corp. | 8,122 | 17,844 | |
Ralink Technology Corp. | 206,000 | 773,209 | |
Rambus, Inc. (a) | 35,400 | 725,346 | |
RDA Microelectronics, Inc. sponsored ADR | 5,735 | 77,078 | |
Richtek Technology Corp. | 12,000 | 93,802 | |
Silicon Laboratories, Inc. (a) | 8,300 | 369,184 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 264,300 | 1,831,599 | |
Skyworks Solutions, Inc. (a) | 61,890 | 1,966,245 | |
| |||
Shares | Value | ||
Spreadtrum Communications, Inc. ADR (a)(d) | 164,238 | $ 3,531,117 | |
Standard Microsystems Corp. (a) | 76,900 | 1,849,445 | |
SunPower Corp. Class A (a)(d) | 8,600 | 115,584 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 3,200 | 27,168 | |
Texas Instruments, Inc. | 137,365 | 4,658,047 | |
Trina Solar Ltd. (a)(d) | 77,844 | 2,029,393 | |
TriQuint Semiconductor, Inc. (a) | 62,167 | 818,118 | |
Wolfson Microelectronics PLC (a) | 90,265 | 436,610 | |
Xilinx, Inc. | 2,543 | 81,885 | |
Yingli Green Energy Holding Co. Ltd. ADR (a) | 200 | 2,316 | |
YoungTek Electronics Corp. | 33,830 | 98,205 | |
| 107,754,192 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 131,597,125 | ||
SOFTWARE - 21.2% | |||
Application Software - 12.0% | |||
Adobe Systems, Inc. (a) | 124,254 | 4,106,595 | |
ANSYS, Inc. (a) | 44,008 | 2,308,220 | |
AsiaInfo Holdings, Inc. (a) | 58,300 | 1,251,118 | |
Aspen Technology, Inc. (a) | 213,273 | 3,017,813 | |
Autodesk, Inc. (a) | 123,063 | 5,006,203 | |
AutoNavi Holdings Ltd. ADR | 45,521 | 744,724 | |
Autonomy Corp. PLC (a) | 33,675 | 806,876 | |
Blackboard, Inc. (a)(d) | 90,256 | 3,507,348 | |
BroadSoft, Inc. (a) | 62,800 | 1,740,188 | |
Cadence Design Systems, Inc. (a) | 92,487 | 802,787 | |
Citrix Systems, Inc. (a) | 1,082 | 68,361 | |
Compuware Corp. (a) | 358,141 | 3,839,272 | |
Concur Technologies, Inc. (a) | 72,475 | 3,698,399 | |
Descartes Systems Group, Inc. (a) | 122,100 | 847,663 | |
Epicor Software Corp. (a) | 47,232 | 489,324 | |
Informatica Corp. (a) | 171,200 | 7,943,680 | |
Intuit, Inc. (a) | 213,824 | 10,034,760 | |
JDA Software Group, Inc. (a) | 28,190 | 850,774 | |
Kenexa Corp. (a) | 19,469 | 403,787 | |
Kingdee International Software Group Co. Ltd. | 9,554,000 | 6,286,171 | |
Longtop Financial Technologies Ltd. ADR (a) | 89,875 | 2,956,888 | |
Manhattan Associates, Inc. (a) | 2,257 | 66,604 | |
MicroStrategy, Inc. Class A (a) | 7,759 | 825,247 | |
Nuance Communications, Inc. (a) | 243,764 | 4,955,722 | |
Parametric Technology Corp. (a) | 211,106 | 4,692,886 | |
Pegasystems, Inc. | 44,053 | 1,505,732 | |
QLIK Technologies, Inc. | 5,600 | 129,976 | |
Quest Software, Inc. (a) | 64,400 | 1,662,808 | |
RealPage, Inc. | 15,200 | 416,328 | |
salesforce.com, Inc. (a) | 96,342 | 12,441,606 | |
Smith Micro Software, Inc. (a) | 5,003 | 63,138 | |
SolarWinds, Inc. (a) | 20,229 | 382,328 | |
Common Stocks - continued | |||
Shares | Value | ||
SOFTWARE - CONTINUED | |||
Application Software - continued | |||
Sonic Solutions, Inc. (a) | 21,344 | $ 311,302 | |
SuccessFactors, Inc. (a) | 139,300 | 4,056,416 | |
Synopsys, Inc. (a) | 56,700 | 1,538,271 | |
Taleo Corp. Class A (a) | 58,071 | 1,710,772 | |
TIBCO Software, Inc. (a) | 111,289 | 2,446,132 | |
TiVo, Inc. (a) | 8,000 | 77,360 | |
VanceInfo Technologies, Inc. ADR (a) | 47,800 | 1,668,220 | |
| 99,661,799 | ||
Home Entertainment Software - 0.1% | |||
Activision Blizzard, Inc. | 5,800 | 65,482 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 10,300 | 239,166 | |
RealD, Inc. | 3,600 | 85,212 | |
| 389,860 | ||
Systems Software - 9.1% | |||
Ariba, Inc. (a) | 134,419 | 3,775,830 | |
BMC Software, Inc. (a) | 174,813 | 8,338,580 | |
CA, Inc. | 204,296 | 4,862,245 | |
Check Point Software Technologies Ltd. (a) | 1,700 | 75,735 | |
CommVault Systems, Inc. (a) | 100,464 | 3,103,333 | |
Fortinet, Inc. (a) | 52,558 | 2,020,855 | |
Insyde Software Corp. | 100,498 | 397,978 | |
MICROS Systems, Inc. (a) | 15,800 | 722,692 | |
Microsoft Corp. | 288,446 | 7,997,165 | |
Novell, Inc. (a) | 310 | 1,866 | |
Oracle Corp. | 1,221,700 | 39,131,051 | |
Red Hat, Inc. (a) | 35,163 | 1,452,935 | |
Rovi Corp. (a) | 36,921 | 2,280,241 | |
VMware, Inc. Class A (a) | 18,718 | 1,600,763 | |
| 75,761,269 | ||
TOTAL SOFTWARE | 175,812,928 | ||
WIRELESS TELECOMMUNICATION SERVICES - 0.6% | |||
Wireless Telecommunication Services - 0.6% | |||
American Tower Corp. Class A (a) | 31,125 | 1,583,018 | |
Crown Castle International Corp. (a) | 37,100 | 1,564,507 | |
SBA Communications Corp. Class A (a) | 39,147 | 1,597,198 | |
Sprint Nextel Corp. (a) | 18,461 | 83,444 | |
| 4,828,167 | ||
TOTAL COMMON STOCKS (Cost $658,848,778) | 826,366,972 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount | Value | ||
COMMUNICATIONS EQUIPMENT - 0.1% | ||||
Communications Equipment - 0.1% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 1,270,000 | $ 1,221,740 | ||
Master Notes - 0.0% | ||||
| ||||
OZ Optics Ltd. 5% 11/5/14 (f) | 240,883 | 240,883 | ||
Money Market Funds - 2.6% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 8,273,766 | 8,273,766 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 13,204,452 | 13,204,452 | |
TOTAL MONEY MARKET FUNDS (Cost $21,478,218) | 21,478,218 | ||
Cash Equivalents - 0.5% | |||
Maturity Amount |
| ||
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) # | $ 4,031,026 | 4,031,000 | |
TOTAL INVESTMENT PORTFOLIO - 102.7% (Cost $685,874,626) | 853,338,813 | |
NET OTHER ASSETS (LIABILITIES) - (2.7)% | (22,503,824) | |
NET ASSETS - 100% | $ 830,834,989 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $1,595,115 or 0.2% of net assets. |
(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 $240,883 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 246,969 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$4,031,000 due 2/01/11 at 0.23% | |
BNP Paribas Securities Corp. | $ 1,241,584 |
Barclays Capital, Inc. | 761,881 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 2,027,535 |
| $ 4,031,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,695 |
Fidelity Securities Lending Cash Central Fund | 124,118 |
Total | $ 134,813 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 826,366,972 | $ 826,314,496 | $ 52,476 | $ - |
Convertible Bonds | 1,221,740 | - | 1,221,740 | - |
Master Notes | 240,883 | - | - | 240,883 |
Money Market Funds | 21,478,218 | 21,478,218 | - | - |
Cash Equivalents | 4,031,000 | - | 4,031,000 | - |
Total Investments in Securities: | $ 853,338,813 | $ 847,792,714 | $ 5,305,216 | $ 240,883 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 301,240 |
Total Realized Gain (Loss) | (704,097) |
Total Unrealized Gain (Loss) | 696,693 |
Cost of Purchases | 308,711 |
Proceeds of Sales | (361,325) |
Amortization/Accretion | (339) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 240,883 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (5,747) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.7% |
Cayman Islands | 3.6% |
Taiwan | 3.4% |
Bermuda | 2.7% |
Ireland | 2.2% |
Singapore | 1.4% |
China | 1.2% |
Others (Individually Less Than 1%) | 4.8% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $632,644,379 of which $499,806,783 and $132,837,596 will expire in fiscal 2011 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Technology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,898,396 and repurchase agreements of $4,031,000) - See accompanying schedule: Unaffiliated issuers (cost $664,396,408) | $ 831,860,595 |
|
Fidelity Central Funds (cost $21,478,218) | 21,478,218 |
|
Total Investments (cost $685,874,626) |
| $ 853,338,813 |
Cash | 770 | |
Foreign currency held at value (cost $27) | 27 | |
Receivable for investments sold | 9,701,721 | |
Receivable for fund shares sold | 1,642,352 | |
Dividends receivable | 202,559 | |
Interest receivable | 3,656 | |
Distributions receivable from Fidelity Central Funds | 10,134 | |
Prepaid expenses | 1,648 | |
Other receivables | 48,800 | |
Total assets | 864,950,480 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,416,765 | |
Payable for fund shares redeemed | 1,567,262 | |
Accrued management fee | 379,939 | |
Distribution and service plan fees payable | 280,253 | |
Other affiliated payables | 213,998 | |
Other payables and accrued expenses | 52,822 | |
Collateral on securities loaned, at value | 13,204,452 | |
Total liabilities | 34,115,491 | |
|
| |
Net Assets | $ 830,834,989 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,209,818,896 | |
Accumulated net investment loss | (3,493,140) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (542,955,991) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 167,465,224 | |
Net Assets | $ 830,834,989 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 26.08 | |
|
|
|
Maximum offering price per share (100/94.25 of $26.08) | $ 27.67 | |
Class T: | $ 25.27 | |
|
|
|
Maximum offering price per share (100/96.50 of $25.27) | $ 26.19 | |
Class B: | $ 23.60 | |
|
|
|
Class C: | $ 23.71 | |
|
|
|
Institutional Class: | $ 27.23 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,100,838 |
Interest |
| 4,463 |
Income from Fidelity Central Funds (including $124,118 from security lending) |
| 134,813 |
Total income |
| 1,240,114 |
|
|
|
Expenses | ||
Management fee | $ 1,994,936 | |
Transfer agent fees | 1,055,630 | |
Distribution and service plan fees | 1,481,594 | |
Accounting and security lending fees | 128,717 | |
Custodian fees and expenses | 59,053 | |
Independent trustees' compensation | 2,025 | |
Registration fees | 55,639 | |
Audit | 29,342 | |
Legal | 2,638 | |
Miscellaneous | 3,666 | |
Total expenses before reductions | 4,813,240 | |
Expense reductions | (79,986) | 4,733,254 |
Net investment income (loss) | (3,493,140) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 93,704,330 | |
Foreign currency transactions | (63,091) | |
Total net realized gain (loss) |
| 93,641,239 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 102,499,825 | |
Assets and liabilities in foreign currencies | 5,272 | |
Total change in net unrealized appreciation (depreciation) | 102,505,097 | |
Net gain (loss) | 196,146,336 | |
Net increase (decrease) in net assets resulting from operations | $ 192,653,196 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (3,493,140) | $ (6,176,617) |
Net realized gain (loss) | 93,641,239 | 117,224,365 |
Change in net unrealized appreciation (depreciation) | 102,505,097 | 9,231,846 |
Net increase (decrease) in net assets resulting from operations | 192,653,196 | 120,279,594 |
Share transactions - net increase (decrease) | 14,994,562 | (19,248,670) |
Redemption fees | 9,199 | 34,453 |
Total increase (decrease) in net assets | 207,656,957 | 101,065,377 |
|
|
|
Net Assets | ||
Beginning of period | 623,178,032 | 522,112,655 |
End of period (including accumulated net investment loss of $3,493,140 and $0, respectively) | $ 830,834,989 | $ 623,178,032 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.09) | (.16) | .02 H | (.10) | (.17) | (.15) |
Net realized and unrealized gain (loss) | 6.34 | 3.96 | (1.03) | (3.41) | 5.13 | (.42) |
Total from investment operations | 6.25 | 3.80 | (1.01) | (3.51) | 4.96 | (.57) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 26.08 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 |
Total Return B, C, D | 31.52% | 23.71% | (5.93)% | (17.08)% | 31.82% | (3.53)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.19% A | 1.21% | 1.23% | 1.21% | 1.25% | 1.30% |
Expenses net of fee waivers, if any | 1.19% A | 1.21% | 1.23% | 1.21% | 1.25% | 1.30% |
Expenses net of all reductions | 1.16% A | 1.18% | 1.22% | 1.19% | 1.24% | 1.20% |
Net investment income (loss) | (.82)% A | (.83)% | .17% H | (.49)% | (.91)% | (.88)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 418,756 | $ 312,659 | $ 258,433 | $ 275,117 | $ 309,105 | $ 189,054 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.20) | (.01) H | (.14) | (.21) | (.19) |
Net realized and unrealized gain (loss) | 6.15 | 3.85 | (1.02) | (3.33) | 5.02 | (.41) |
Total from investment operations | 6.03 | 3.65 | (1.03) | (3.47) | 4.81 | (.60) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 25.27 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 |
Total Return B, C, D | 31.34% | 23.41% | (6.20)% | (17.27)% | 31.48% | (3.78)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.44% A | 1.46% | 1.49% | 1.46% | 1.51% | 1.55% |
Expenses net of fee waivers, if any | 1.44% A | 1.46% | 1.49% | 1.46% | 1.51% | 1.55% |
Expenses net of all reductions | 1.42% A | 1.44% | 1.48% | 1.45% | 1.49% | 1.44% |
Net investment income (loss) | (1.07)% A | (1.09)% | (.09)% H | (.74)% | (1.16)% | (1.13)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 219,333 | $ 169,049 | $ 151,170 | $ 173,917 | $ 260,339 | $ 260,966 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.16) | (.27) | (.07) H | (.23) | (.28) | (.27) |
Net realized and unrealized gain (loss) | 5.75 | 3.61 | (.98) | (3.15) | 4.79 | (.38) |
Total from investment operations | 5.59 | 3.34 | (1.05) | (3.38) | 4.51 | (.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.60 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 |
Total Return B, C, D | 31.04% | 22.77% | (6.68)% | (17.70)% | 30.91% | (4.27)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of all reductions | 1.92% A | 1.94% | 1.97% | 1.94% | 2.00% | 1.94% |
Net investment income (loss) | (1.57)% A | (1.59)% | (.58)% H | (1.24)% | (1.67)% | (1.63)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,066 | $ 29,176 | $ 30,580 | $ 47,294 | $ 102,655 | $ 192,790 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.16) | (.28) | (.07) H | (.23) | (.29) | (.27) |
Net realized and unrealized gain (loss) | 5.78 | 3.63 | (.98) | (3.16) | 4.81 | (.38) |
Total from investment operations | 5.62 | 3.35 | (1.05) | (3.39) | 4.52 | (.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.71 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 |
Total Return B, C, D | 31.07% | 22.73% | (6.65)% | (17.67)% | 30.83% | (4.25)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of all reductions | 1.91% A | 1.93% | 1.97% | 1.94% | 1.99% | 1.94% |
Net investment income (loss) | (1.57)% A | (1.58)% | (.58)% H | (1.24)% | (1.66)% | (1.63)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 94,062 | $ 70,017 | $ 55,645 | $ 63,590 | $ 86,974 | $ 82,835 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.06) | (.11) | .06 G | (.04) | (.11) | (.09) |
Net realized and unrealized gain (loss) | 6.61 | 4.12 | (1.07) | (3.54) | 5.30 | (.44) |
Total from investment operations | 6.55 | 4.01 | (1.01) | (3.58) | 5.19 | (.53) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.23 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 |
Total Return B, C | 31.67% | 24.06% | (5.71)% | (16.84)% | 32.30% | (3.19)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .90% A | .92% | .98% | .94% | .93% | .90% |
Expenses net of fee waivers, if any | .90% A | .92% | .98% | .94% | .93% | .90% |
Expenses net of all reductions | .87% A | .90% | .97% | .92% | .92% | .80% |
Net investment income (loss) | (.53)% A | (.55)% | .42% G | (.22)% | (.59)% | (.49)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 66,618 | $ 42,277 | $ 26,285 | $ 22,021 | $ 21,111 | $ 11,681 |
Portfolio turnover rate F | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 177,810,364 |
Gross unrealized depreciation | (13,153,170) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 164,657,194 |
| |
Tax cost | $ 688,681,619 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 $581,494,987 and $551,073,928, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 450,192 | $ 2,018 |
Class T | .25% | .25% | 478,314 | - |
Class B | .75% | .25% | 152,955 | 114,716 |
Class C | .75% | .25% | 400,133 | 52,069 |
|
|
| $ 1,481,594 | $ 168,803 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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% 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 | $ 37,716 |
Class T | 12,160 |
Class B* | 26,466 |
Class C* | 4,301 |
| $ 80,643 |
* 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.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 534,873 | .30 |
Class T | 288,356 | .30 |
Class B | 45,793 | .30 |
Class C | 118,925 | .30 |
Institutional Class | 67,683 | .26 |
| $ 1,055,630 |
|
* 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 $22,008 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $1,233 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Semiannual Report
8. Security Lending - continued
Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $79,986 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,959,242 | 4,395,059 | $ 46,663,375 | $ 83,404,216 |
Shares redeemed | (1,669,792) | (4,747,519) | (38,043,093) | (89,682,006) |
Net increase (decrease) | 289,450 | (352,460) | $ 8,620,282 | $ (6,277,790) |
Class T |
|
|
|
|
Shares sold | 772,322 | 1,549,777 | $ 17,914,876 | $ 28,544,536 |
Shares redeemed | (879,845) | (2,457,153) | (19,147,967) | (44,605,674) |
Net increase (decrease) | (107,523) | (907,376) | $ (1,233,091) | $ (16,061,138) |
Class B |
|
|
|
|
Shares sold | 67,452 | 364,834 | $ 1,449,774 | $ 6,301,624 |
Shares redeemed | (328,505) | (829,145) | (6,798,835) | (14,327,782) |
Net increase (decrease) | (261,053) | (464,311) | $ (5,349,061) | $ (8,026,158) |
Class C |
|
|
|
|
Shares sold | 532,775 | 985,847 | $ 11,674,548 | $ 17,180,918 |
Shares redeemed | (434,903) | (891,510) | (8,913,220) | (15,514,588) |
Net increase (decrease) | 97,872 | 94,337 | $ 2,761,328 | $ 1,666,330 |
Institutional Class |
|
|
|
|
Shares sold | 698,285 | 1,270,106 | $ 17,067,085 | $ 25,258,423 |
Shares redeemed | (296,712) | (802,290) | (6,871,981) | (15,808,337) |
Net increase (decrease) | 401,573 | 467,816 | $ 10,195,104 | $ 9,450,086 |
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
Fidelity Advisor Utilities 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.26% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.00 | $ 6.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.41 |
Class T | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.20 | $ 8.06 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.54 | $ 7.73 |
Class B | 2.01% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.07 | $ 10.21 |
Class C | 2.01% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.60 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.07 | $ 10.21 |
Institutional Class | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.80 | $ 5.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.06 | $ 5.19 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
NextEra Energy, Inc. | 12.0 | 10.5 |
Sempra Energy | 7.4 | 8.7 |
Southern Co. | 7.4 | 1.5 |
ONEOK, Inc. | 6.2 | 0.0 |
Edison International | 6.2 | 0.0 |
PPL Corp. | 5.2 | 6.9 |
ITC Holdings Corp. | 4.9 | 4.7 |
NV Energy, Inc. | 4.9 | 5.0 |
National Fuel Gas Co. New Jersey | 4.8 | 2.1 |
PG&E Corp. | 4.7 | 5.0 |
| 63.7 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Electric Utilities | 46.3% |
|
| Multi-Utilities | 29.3% |
|
| Gas Utilities | 11.0% |
|
| Independent Power Producers & Energy Traders | 8.5% |
|
| Oil, Gas & Consumable Fuels | 3.2% |
|
| All Others* | 1.7% |
|
As of July 31, 2010 | |||
| Electric Utilities | 52.4% |
|
| Multi-Utilities | 37.2% |
|
| Independent Power Producers & Energy Traders | 3.4% |
|
| Oil, Gas & Consumable Fuels | 3.1% |
|
| Gas Utilities | 2.9% |
|
| All Others* | 1.0% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value | ||
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2% | |||
Integrated Telecommunication Services - 0.2% | |||
China Unicom (Hong Kong) Ltd. sponsored ADR | 22,300 | $ 367,058 | |
ELECTRIC UTILITIES - 46.3% | |||
Electric Utilities - 46.3% | |||
Edison International | 247,274 | 8,971,101 | |
FirstEnergy Corp. (d) | 90,500 | 3,540,360 | |
ITC Holdings Corp. | 108,844 | 7,151,051 | |
NextEra Energy, Inc. | 327,482 | 17,507,189 | |
NV Energy, Inc. | 497,466 | 7,148,586 | |
Pepco Holdings, Inc. | 106,400 | 1,975,848 | |
Pinnacle West Capital Corp. | 66,901 | 2,723,540 | |
PPL Corp. | 292,118 | 7,533,723 | |
Southern Co. | 286,040 | 10,760,825 | |
| 67,312,223 | ||
GAS UTILITIES - 11.0% | |||
Gas Utilities - 11.0% | |||
National Fuel Gas Co. New Jersey | 102,072 | 6,975,600 | |
ONEOK, Inc. | 153,878 | 9,061,875 | |
| 16,037,475 | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 8.5% | |||
Independent Power Producers & Energy Traders - 8.5% | |||
AES Corp. (a) | 312,400 | 3,873,760 | |
Calpine Corp. (a) | 151,800 | 2,166,186 | |
Constellation Energy Group, Inc. | 147,405 | 4,753,811 | |
GenOn Energy, Inc. (a) | 366,497 | 1,517,298 | |
| 12,311,055 | ||
MULTI-UTILITIES - 29.3% | |||
Multi-Utilities - 29.3% | |||
CenterPoint Energy, Inc. | 302,045 | 4,878,027 | |
NiSource, Inc. | 290,400 | 5,407,248 | |
OGE Energy Corp. | 70,187 | 3,220,881 | |
PG&E Corp. | 147,432 | 6,823,153 | |
Public Service Enterprise Group, Inc. | 196,359 | 6,367,922 | |
Sempra Energy | 207,021 | 10,779,583 | |
TECO Energy, Inc. | 100,000 | 1,841,000 | |
Veolia Environnement sponsored ADR (d) | 104,484 | 3,280,798 | |
| 42,598,612 | ||
| |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - 3.2% | |||
Oil & Gas Exploration & Production - 2.4% | |||
Canacol Energy Ltd. (a) | 353,700 | $ 537,033 | |
Pacific Rubiales Energy Corp. | 84,500 | 2,917,111 | |
| 3,454,144 | ||
Oil & Gas Storage & Transport - 0.8% | |||
SemGroup Corp. Class A (a) | 40,600 | 1,169,280 | |
TOTAL OIL, GAS & CONSUMABLE FUELS | 4,623,424 | ||
TOTAL COMMON STOCKS (Cost $134,449,379) | 143,249,847 | ||
Money Market Funds - 4.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 1,072,789 | 1,072,789 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,751,775 | 4,751,775 | |
TOTAL MONEY MARKET FUNDS (Cost $5,824,564) | 5,824,564 | ||
TOTAL INVESTMENT PORTFOLIO - 102.5% (Cost $140,273,943) | 149,074,411 | |
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (3,687,668) | |
NET ASSETS - 100% | $ 145,386,743 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,064 |
Fidelity Securities Lending Cash Central Fund | 5,230 |
Total | $ 6,294 |
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, 2010, the Fund had a capital loss carryforward of approximately $196,362,484 of which $154,412,532, $13,867,918 and $28,082,034 will expire in fiscal 2011, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $4,837,964 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Utilities Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,691,196) - See accompanying schedule: Unaffiliated issuers (cost $134,449,379) | $ 143,249,847 |
|
Fidelity Central Funds (cost $5,824,564) | 5,824,564 |
|
Total Investments (cost $140,273,943) |
| $ 149,074,411 |
Receivable for investments sold | 5,708,449 | |
Receivable for fund shares sold | 133,090 | |
Dividends receivable | 182,972 | |
Distributions receivable from Fidelity Central Funds | 698 | |
Prepaid expenses | 364 | |
Other receivables | 15,678 | |
Total assets | 155,115,662 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,531,875 | |
Payable for fund shares redeemed | 253,121 | |
Accrued management fee | 67,270 | |
Distribution and service plan fees payable | 56,108 | |
Other affiliated payables | 40,106 | |
Other payables and accrued expenses | 28,664 | |
Collateral on securities loaned, at value | 4,751,775 | |
Total liabilities | 9,728,919 | |
|
| |
Net Assets | $ 145,386,743 | |
Net Assets consist of: |
| |
Paid in capital | $ 332,295,315 | |
Distributions in excess of net investment income | (16,018) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (195,693,083) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 8,800,529 | |
Net Assets | $ 145,386,743 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.92) | $ 19.01 | |
Class T: | $ 17.94 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.94) | $ 18.59 | |
Class B: | $ 17.76 | |
|
|
|
Class C: | $ 17.66 | |
|
|
|
Institutional Class: | $ 18.19 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,578,771 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 6,294 |
Total income |
| 2,585,066 |
|
|
|
Expenses | ||
Management fee | $ 395,595 | |
Transfer agent fees | 216,361 | |
Distribution and service plan fees | 330,334 | |
Accounting and security lending fees | 27,715 | |
Custodian fees and expenses | 10,110 | |
Independent trustees' compensation | 415 | |
Registration fees | 42,098 | |
Audit | 23,292 | |
Legal | 1,405 | |
Miscellaneous | 779 | |
Total expenses before reductions | 1,048,104 | |
Expense reductions | (25,295) | 1,022,809 |
Net investment income (loss) | 1,562,257 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 8,330,121 | |
Foreign currency transactions | (19,363) | |
Total net realized gain (loss) |
| 8,310,758 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,006,286 | |
Assets and liabilities in foreign currencies | 3,519 | |
Total change in net unrealized appreciation (depreciation) | 4,009,805 | |
Net gain (loss) | 12,320,563 | |
Net increase (decrease) in net assets resulting from operations | $ 13,882,820 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,562,257 | $ 3,071,475 |
Net realized gain (loss) | 8,310,758 | 6,308,221 |
Change in net unrealized appreciation (depreciation) | 4,009,805 | 4,895,678 |
Net increase (decrease) in net assets resulting from operations | 13,882,820 | 14,275,374 |
Distributions to shareholders from net investment income | (2,864,390) | (3,192,017) |
Share transactions - net increase (decrease) | (892,427) | (13,238,224) |
Redemption fees | 472 | 1,956 |
Total increase (decrease) in net assets | 10,126,475 | (2,152,911) |
|
|
|
Net Assets | ||
Beginning of period | 135,260,268 | 137,413,179 |
End of period (including distributions in excess of net investment income of $16,018 and undistributed net investment income of $1,286,115, respectively) | $ 145,386,743 | $ 135,260,268 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .21 | .40 | .35 | .24 | .21 | .24 |
Net realized and unrealized gain (loss) | 1.51 | 1.32 | (5.10) | (.38) | 3.56 | 2.06 |
Total from investment operations | 1.72 | 1.72 | (4.75) | (.14) | 3.77 | 2.30 |
Distributions from net investment income | (.39) | (.40) | (.26) | (.32) | (.23) | (.27) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.92 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 |
Total Return B, C, D | 10.50% | 11.42% | (23.44)% | (.82)% | 22.14% | 15.38% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.26% A | 1.26% | 1.26% | 1.21% | 1.27% | 1.34% |
Expenses net of fee waivers, if any | 1.26% A | 1.26% | 1.26% | 1.21% | 1.27% | 1.34% |
Expenses net of all reductions | 1.22% A | 1.22% | 1.26% | 1.21% | 1.26% | 1.32% |
Net investment income (loss) | 2.43% A | 2.49% | 2.37% | 1.11% | 1.04% | 1.51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 70,940 | $ 64,890 | $ 66,064 | $ 105,219 | $ 94,842 | $ 40,599 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .19 | .35 | .31 | .18 | .15 | .19 |
Net realized and unrealized gain (loss) | 1.51 | 1.33 | (5.10) | (.39) | 3.56 | 2.08 |
Total from investment operations | 1.70 | 1.68 | (4.79) | (.21) | 3.71 | 2.27 |
Distributions from net investment income | (.35) | (.36) | (.20) | (.24) | (.18) | (.19) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.94 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 |
Total Return B, C, D | 10.32% | 11.13% | (23.61)% | (1.11)% | 21.74% | 15.20% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.52% A | 1.52% | 1.52% | 1.47% | 1.54% | 1.60% |
Expenses net of fee waivers, if any | 1.52% A | 1.52% | 1.52% | 1.47% | 1.54% | 1.60% |
Expenses net of all reductions | 1.49% A | 1.49% | 1.52% | 1.47% | 1.54% | 1.58% |
Net investment income (loss) | 2.16% A | 2.23% | 2.11% | .84% | .76% | 1.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 34,842 | $ 33,651 | $ 33,989 | $ 54,346 | $ 62,592 | $ 52,128 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .27 | .24 | .08 | .05 | .12 |
Net realized and unrealized gain (loss) | 1.50 | 1.31 | (5.04) | (.39) | 3.52 | 2.03 |
Total from investment operations | 1.64 | 1.58 | (4.80) | (.31) | 3.57 | 2.15 |
Distributions from net investment income | (.26) | (.28) | (.13) | (.08) | (.07) | (.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.76 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 |
Total Return B, C, D | 10.05% | 10.56% | (23.97)% | (1.59)% | 21.18% | 14.57% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.01% A | 2.01% | 2.01% | 1.96% | 2.04% | 2.09% |
Expenses net of fee waivers, if any | 2.01% A | 2.01% | 2.01% | 1.96% | 2.04% | 2.09% |
Expenses net of all reductions | 1.98% A | 1.98% | 2.01% | 1.95% | 2.03% | 2.06% |
Net investment income (loss) | 1.68% A | 1.74% | 1.62% | .36% | .27% | .76% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8,366 | $ 8,794 | $ 10,634 | $ 20,747 | $ 43,845 | $ 65,959 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .27 | .24 | .08 | .06 | .13 |
Net realized and unrealized gain (loss) | 1.49 | 1.30 | (5.02) | (.39) | 3.51 | 2.04 |
Total from investment operations | 1.63 | 1.57 | (4.78) | (.31) | 3.57 | 2.17 |
Distributions from net investment income | (.27) | (.29) | (.13) | (.14) | (.10) | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.66 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 |
Total Return B, C, D | 10.06% | 10.54% | (23.96)% | (1.58)% | 21.23% | 14.72% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.01% A | 2.01% | 2.01% | 1.95% | 1.99% | 2.02% |
Expenses net of fee waivers, if any | 2.01% A | 2.01% | 2.01% | 1.95% | 1.99% | 2.02% |
Expenses net of all reductions | 1.97% A | 1.97% | 2.01% | 1.95% | 1.99% | 2.00% |
Net investment income (loss) | 1.68% A | 1.74% | 1.62% | .36% | .32% | .83% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,963 | $ 21,415 | $ 22,352 | $ 37,387 | $ 43,292 | $ 32,823 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .24 | .44 | .39 | .31 | .29 | .30 |
Net realized and unrealized gain (loss) | 1.54 | 1.35 | (5.17) | (.38) | 3.58 | 2.10 |
Total from investment operations | 1.78 | 1.79 | (4.78) | (.07) | 3.87 | 2.40 |
Distributions from net investment income | (.44) | (.45) | (.23) | (.36) | (.30) | (.33) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 18.19 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 |
Total Return B, C | 10.68% | 11.66% | (23.24)% | (.49)% | 22.54% | 15.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.02% A | 1.00% | 1.00% | .91% | .92% | .94% |
Expenses net of fee waivers, if any | 1.02% A | 1.00% | 1.00% | .91% | .92% | .94% |
Expenses net of all reductions | .98% A | .97% | 1.00% | .90% | .92% | .92% |
Net investment income (loss) | 2.67% A | 2.75% | 2.63% | 1.41% | 1.39% | 1.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,275 | $ 6,511 | $ 4,373 | $ 5,704 | $ 12,822 | $ 6,479 |
Portfolio turnover rate F | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 (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 C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, capital loss carryforwards, expiring 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 | $ 9,132,610 |
Gross unrealized depreciation | (2,378,134) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,754,476 |
| |
Tax cost | $ 142,319,935 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $155,463,723 and $158,438,363, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 85,837 | $ - |
Class T | .25% | .25% | 86,376 | - |
Class B | .75% | .25% | 43,886 | 32,914 |
Class C | .75% | .25% | 114,235 | 11,696 |
|
|
| $ 330,334 | $ 44,610 |
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% 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 | $ 13,218 |
Class T | 3,822 |
Class B* | 8,231 |
Class C* | 402 |
| $ 25,673 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 103,655 | .30 |
Class T | 54,494 | .32 |
Class B | 13,305 | .30 |
Class C | 34,397 | .30 |
Institutional Class | 10,510 | .31 |
| $ 216,361 |
|
* 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 $4,777 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $254 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $5,230. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $25,295 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 | $ 1,536,373 | $ 1,700,301 |
Class T | 680,070 | 782,544 |
Class B | 128,700 | 184,067 |
Class C | 350,529 | 413,366 |
Institutional Class | 168,718 | 111,739 |
Total | $ 2,864,390 | $ 3,192,017 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 375,349 | 582,593 | $ 6,535,738 | $ 9,269,210 |
Reinvestment of distributions | 78,008 | 96,455 | 1,339,641 | 1,532,370 |
Shares redeemed | (406,189) | (1,092,389) | (7,095,467) | (17,388,823) |
Net increase (decrease) | 47,168 | (413,341) | $ 779,912 | $ (6,587,243) |
Class T |
|
|
|
|
Shares sold | 110,020 | 214,231 | $ 1,929,184 | $ 3,421,542 |
Reinvestment of distributions | 37,445 | 46,549 | 644,378 | 741,068 |
Shares redeemed | (234,387) | (457,353) | (4,084,224) | (7,262,506) |
Net increase (decrease) | (86,922) | (196,573) | $ (1,510,662) | $ (3,099,896) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class B |
|
|
|
|
Shares sold | 31,033 | 89,148 | $ 529,223 | $ 1,411,608 |
Reinvestment of distributions | 6,858 | 10,582 | 116,904 | 167,069 |
Shares redeemed | (103,837) | (267,950) | (1,791,517) | (4,203,072) |
Net increase (decrease) | (65,946) | (168,220) | $ (1,145,390) | $ (2,624,395) |
Class C |
|
|
|
|
Shares sold | 176,279 | 188,570 | $ 3,027,658 | $ 2,992,972 |
Reinvestment of distributions | 15,668 | 20,486 | 265,763 | 322,145 |
Shares redeemed | (149,211) | (383,514) | (2,558,776) | (5,996,156) |
Net increase (decrease) | 42,736 | (174,458) | $ 734,645 | $ (2,681,039) |
Institutional Class |
|
|
|
|
Shares sold | 75,459 | 287,925 | $ 1,339,176 | $ 4,699,845 |
Reinvestment of distributions | 7,398 | 5,221 | 128,959 | 84,041 |
Shares redeemed | (69,176) | (188,687) | (1,219,067) | (3,029,537) |
Net increase (decrease) | 13,681 | 104,459 | $ 249,068 | $ 1,754,349 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank †
New York, NY
Brown Brothers Harriman & Co. ††
Boston, MA
State Street Bank and Trust †††
Quincy, MA
† Custodian for Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor
Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor
Industrials Fund, Fidelity Advisor Technology Fund, and Fidelity Advisor Utilities
Fund.
†† Custodian for Fidelity Advisor Energy Fund.
††† Custodian for Fidelity Advisor Biotechnology Fund, Fidelity Advisor
Communications Equipment Fund, and Fidelity Advisor Electronics Fund.
AFOC-USAN-0311
1.789279.108
Fidelity Advisor
Focus Funds®
Institutional Class
Fidelity Advisor® Biotechnology Fund
Fidelity Advisor Communications Equipment Fund
Fidelity Advisor Consumer Discretionary Fund
Fidelity Advisor Electronics Fund
Fidelity Advisor Energy Fund
Fidelity Advisor Financial Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Industrials Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Fund
Semiannual Report
January 31, 2011
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | The Chairman's message to shareholders. | |
Fidelity Advisor® Biotechnology Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Communications Equipment Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Consumer Discretionary Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Electronics Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Energy Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Financial Services Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Health Care Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Industrials Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Technology Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements | |
Fidelity Advisor Utilities Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to the Financial Statements |
Semiannual Report
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
Semiannual Report
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,137.90 | $ 7.54 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,135.40 | $ 8.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,134.50 | $ 11.57 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,132.70 | $ 11.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,139.70 | $ 6.20 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Amgen, Inc. | 18.4 | 14.3 |
Alexion Pharmaceuticals, Inc. | 6.7 | 6.9 |
Vertex Pharmaceuticals, Inc. | 6.1 | 3.4 |
United Therapeutics Corp. | 4.4 | 3.7 |
Genzyme Corp. | 4.1 | 6.3 |
Dendreon Corp. | 4.1 | 2.7 |
Biogen Idec, Inc. | 3.2 | 2.4 |
Gilead Sciences, Inc. | 2.8 | 10.6 |
InterMune, Inc. | 2.7 | 0.5 |
Human Genome Sciences, Inc. | 2.6 | 2.6 |
| 55.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
 | Biotechnology | 91.7% |
|
 | Pharmaceuticals | 7.8% |
|
 | Health Care Equipment & Supplies | 0.0% |
|
 | All Others* | 0.5% |
|
As of July 31, 2010 | |||
| Biotechnology | 92.8% |
|
| Pharmaceuticals | 6.2% |
|
| Health Care Equipment & Supplies | 0.1% |
|
| All Others* | 0.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Biotechnology Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 91.7% | |||
Biotechnology - 91.7% | |||
Acadia Pharmaceuticals, Inc. (a) | 9,074 | $ 15,426 | |
Acorda Therapeutics, Inc. (a) | 65,316 | 1,433,686 | |
Affymax, Inc. (a) | 4,506 | 30,010 | |
Agenus, Inc. (a)(d) | 21,100 | 19,623 | |
Alexion Pharmaceuticals, Inc. (a) | 45,195 | 3,788,245 | |
Alkermes, Inc. (a) | 37,961 | 490,077 | |
Allos Therapeutics, Inc. (a)(d) | 106,050 | 356,328 | |
Alnylam Pharmaceuticals, Inc. (a) | 13,498 | 139,367 | |
AMAG Pharmaceuticals, Inc. (a) | 12,800 | 227,840 | |
Amarin Corp. PLC ADR (a) | 28,200 | 250,416 | |
Amgen, Inc. (a) | 189,376 | 10,430,825 | |
Amylin Pharmaceuticals, Inc. (a) | 37,784 | 611,345 | |
Antigenics, Inc. warrants 1/9/18 (a)(e) | 452,000 | 140,079 | |
ARIAD Pharmaceuticals, Inc. (a) | 46,380 | 295,673 | |
ArQule, Inc. (a) | 12,366 | 75,804 | |
AVEO Pharmaceuticals, Inc. | 12,900 | 184,857 | |
Biogen Idec, Inc. (a) | 27,426 | 1,795,580 | |
BioMarin Pharmaceutical, Inc. (a) | 58,273 | 1,481,300 | |
Bionovo, Inc. (a) | 113,700 | 94,371 | |
Bionovo, Inc. warrants 1/27/16 (a) | 59,500 | 36,890 | |
Catalyst Pharmaceutical Partners, Inc. (a) | 61,320 | 72,358 | |
Celera Corp. (a) | 1,500 | 9,278 | |
Celgene Corp. (a) | 115 | 5,926 | |
Cephalon, Inc. (a) | 13,094 | 773,594 | |
Cepheid, Inc. (a) | 23,300 | 553,608 | |
Chelsea Therapeutics International Ltd. (a) | 54,836 | 326,823 | |
Clinical Data, Inc. (a)(d) | 42,713 | 1,270,285 | |
Cubist Pharmaceuticals, Inc. (a) | 9,092 | 199,478 | |
Dendreon Corp. (a) | 66,633 | 2,334,820 | |
Dynavax Technologies Corp. (a) | 50,600 | 151,800 | |
Enzon Pharmaceuticals, Inc. (a) | 3,900 | 43,680 | |
Exelixis, Inc. (a)(d) | 62,132 | 538,684 | |
Genomic Health, Inc. (a) | 4,800 | 106,896 | |
Genzyme Corp. (a) | 31,832 | 2,334,877 | |
Gilead Sciences, Inc. (a) | 40,856 | 1,568,053 | |
Halozyme Therapeutics, Inc. (a) | 39,000 | 260,130 | |
Human Genome Sciences, Inc. (a) | 61,708 | 1,497,036 | |
ImmunoGen, Inc. (a) | 5,300 | 43,778 | |
Incyte Corp. (a)(d) | 62,138 | 915,914 | |
Inhibitex, Inc. (a) | 34,000 | 77,350 | |
InterMune, Inc. (a) | 40,417 | 1,510,383 | |
Ironwood Pharmaceuticals, Inc. Class A | 4,700 | 50,713 | |
Isis Pharmaceuticals, Inc. (a) | 500 | 4,550 | |
Keryx Biopharmaceuticals, Inc. (a) | 20,600 | 82,400 | |
Lexicon Pharmaceuticals, Inc. (a) | 226,211 | 382,297 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 500 | 4,350 | |
Martek Biosciences (a) | 11,400 | 358,074 | |
Medivation, Inc. (a)(d) | 16,813 | 236,727 | |
Metabolix, Inc. (a) | 100 | 885 | |
| |||
Shares | Value | ||
Micromet, Inc. (a) | 16,100 | $ 103,523 | |
Momenta Pharmaceuticals, Inc. (a)(d) | 14,529 | 185,826 | |
Myrexis, Inc. (a) | 302 | 1,187 | |
Myriad Genetics, Inc. (a) | 16,335 | 326,047 | |
Neurocrine Biosciences, Inc. (a) | 34,106 | 251,702 | |
NPS Pharmaceuticals, Inc. (a) | 67,400 | 674,337 | |
ONYX Pharmaceuticals, Inc. (a) | 25,195 | 889,006 | |
OREXIGEN Therapeutics, Inc. (a) | 30,600 | 278,154 | |
PDL BioPharma, Inc. | 153,888 | 760,207 | |
Pharmasset, Inc. (a) | 17,942 | 869,469 | |
Progenics Pharmaceuticals, Inc. (a) | 33,006 | 184,339 | |
Protalix BioTherapeutics, Inc. (a)(d) | 30,290 | 294,722 | |
Regeneron Pharmaceuticals, Inc. (a) | 17,049 | 574,210 | |
Rigel Pharmaceuticals, Inc. (a) | 25,577 | 172,005 | |
Sangamo Biosciences, Inc. (a)(d) | 23,828 | 182,522 | |
Savient Pharmaceuticals, Inc. (a) | 29,055 | 268,178 | |
Seattle Genetics, Inc. (a)(d) | 36,221 | 593,662 | |
SIGA Technologies, Inc. (a)(d) | 45,212 | 518,808 | |
Theratechnologies, Inc. (a) | 23,600 | 139,087 | |
Theravance, Inc. (a)(d) | 42,878 | 902,153 | |
United Therapeutics Corp. (a) | 36,976 | 2,513,628 | |
Vertex Pharmaceuticals, Inc. (a) | 89,073 | 3,464,049 | |
ZIOPHARM Oncology, Inc. (a) | 19,900 | 116,117 | |
Zogenix, Inc. | 36,863 | 185,790 | |
| 52,061,217 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.0% | |||
Health Care Equipment - 0.0% | |||
Alsius Corp. (a) | 14,200 | 0 | |
Aradigm Corp. (a) | 21,800 | 3,706 | |
| 3,706 | ||
PHARMACEUTICALS - 7.8% | |||
Pharmaceuticals - 7.8% | |||
Adolor Corp. (a) | 182,099 | 256,760 | |
Akorn, Inc. (a) | 15,479 | 77,395 | |
Ardea Biosciences, Inc. (a) | 3,300 | 87,516 | |
Auxilium Pharmaceuticals, Inc. (a)(d) | 38,858 | 881,688 | |
AVANIR Pharmaceuticals Class A (a)(d) | 174,980 | 708,669 | |
Cadence Pharmaceuticals, Inc. (a)(d) | 12,500 | 97,063 | |
Corcept Therapeutics, Inc. (a) | 71,400 | 289,170 | |
Elan Corp. PLC sponsored ADR (a) | 75,450 | 509,288 | |
Jazz Pharmaceuticals, Inc. (a) | 17,235 | 385,375 | |
NuPathe, Inc. | 900 | 6,588 | |
Optimer Pharmaceuticals, Inc. (a) | 32,588 | 358,468 | |
Questcor Pharmaceuticals, Inc. (a) | 7,818 | 120,866 | |
The Medicines Company (a) | 1,500 | 23,520 | |
ViroPharma, Inc. (a) | 26,188 | 429,483 | |
XenoPort, Inc. (a) | 22,443 | 176,851 | |
| 4,408,700 | ||
TOTAL COMMON STOCKS (Cost $45,705,035) | 56,473,623 | ||
Money Market Funds - 8.6% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.19% (b) | 1,003,588 | $ 1,003,588 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 3,887,750 | 3,887,750 | |
TOTAL MONEY MARKET FUNDS (Cost $4,891,338) | 4,891,338 | ||
TOTAL INVESTMENT PORTFOLIO - 108.1% (Cost $50,596,373) | 61,364,961 | |
NET OTHER ASSETS (LIABILITIES) - (8.1)% | (4,615,172) | |
NET ASSETS - 100% | $ 56,749,789 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $140,079 or 0.2% of net assets. |
Additional information on each restricted 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 | $ 313 |
Fidelity Securities Lending Cash Central Fund | 39,093 |
Total | $ 39,406 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 56,473,623 | $ 56,296,654 | $ 176,969 | $ - |
Money Market Funds | 4,891,338 | 4,891,338 | - | - |
Total Investments in Securities: | $ 61,364,961 | $ 61,187,992 | $ 176,969 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $3,491,594 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $2,681,229 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $3,867,242) - See accompanying schedule: Unaffiliated issuers (cost $45,705,035) | $ 56,473,623 |
|
Fidelity Central Funds (cost $4,891,338) | 4,891,338 |
|
Total Investments (cost $50,596,373) |
| $ 61,364,961 |
Receivable for investments sold | 454,580 | |
Receivable for fund shares sold | 81,439 | |
Distributions receivable from Fidelity Central Funds | 8,185 | |
Prepaid expenses | 131 | |
Other receivables | 1,080 | |
Total assets | 61,910,376 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,062,216 | |
Payable for fund shares redeemed | 112,078 | |
Accrued management fee | 32,498 | |
Distribution and service plan fees payable | 25,431 | |
Other affiliated payables | 15,410 | |
Other payables and accrued expenses | 25,204 | |
Collateral on securities loaned, at value | 3,887,750 | |
Total liabilities | 5,160,587 | |
|
| |
Net Assets | $ 56,749,789 | |
Net Assets consist of: |
| |
Paid in capital | $ 53,714,783 | |
Accumulated net investment loss | (339,289) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,394,293) | |
Net unrealized appreciation (depreciation) on investments | 10,768,588 | |
Net Assets | $ 56,749,789 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 7.59 | |
|
|
|
Maximum offering price per share (100/94.25 of $7.59) | $ 8.05 | |
Class T: | $ 7.38 | |
|
|
|
Maximum offering price per share (100/96.50 of $7.38) | $ 7.65 | |
Class B: | $ 7.00 | |
|
|
|
Class C: | $ 7.00 | |
|
|
|
Institutional Class: | $ 7.83 | |
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
Fidelity Advisor Biotechnology Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Special dividends |
| $ 76,944 |
Interest |
| 1 |
Income from Fidelity Central Funds (including $39,093 from security lending) |
| 39,406 |
Total income |
| 116,351 |
|
|
|
Expenses | ||
Management fee | $ 151,079 | |
Transfer agent fees | 83,152 | |
Distribution and service plan fees | 146,174 | |
Accounting and security lending fees | 10,888 | |
Custodian fees and expenses | 10,730 | |
Independent trustees' compensation | 152 | |
Registration fees | 49,481 | |
Audit | 22,894 | |
Legal | 194 | |
Miscellaneous | 304 | |
Total expenses before reductions | 475,048 | |
Expense reductions | (19,408) | 455,640 |
Net investment income (loss) | (339,289) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 264,009 | |
Foreign currency transactions | (34) | |
Total net realized gain (loss) |
| 263,975 |
Change in net unrealized appreciation (depreciation) on investment securities | 6,909,262 | |
Net gain (loss) | 7,173,237 | |
Net increase (decrease) in net assets resulting from operations | $ 6,833,948 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (339,289) | $ (784,049) |
Net realized gain (loss) | 263,975 | (2,345,490) |
Change in net unrealized appreciation (depreciation) | 6,909,262 | 88,127 |
Net increase (decrease) in net assets resulting from operations | 6,833,948 | (3,041,412) |
Share transactions - net increase (decrease) | (2,647,170) | 684,738 |
Redemption fees | 254 | 1,690 |
Total increase (decrease) in net assets | 4,187,032 | (2,354,984) |
|
|
|
Net Assets | ||
Beginning of period | 52,562,757 | 54,917,741 |
End of period (including accumulated net investment loss of $339,289 and $0, respectively) | $ 56,749,789 | $ 52,562,757 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 | $ 6.80 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) H | (.08) I | (.08) | (.09) J | (.09) | (.09) |
Net realized and unrealized gain (loss) | .95 | (.19) | (.79) | 1.20 | .51 | .10 |
Total from investment operations | .92 | (.27) | (.87) | 1.11 | .42 | .01 |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.59 | $ 6.67 | $ 6.94 | $ 7.81 | $ 7.23 | $ 6.81 |
Total Return B, C, D | 13.79% | (3.89)% | (11.14)% | 15.95% | 6.17% | .15% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.46% A | 1.39% | 1.40% | 1.37% | 1.42% | 1.48% |
Expenses net of fee waivers, if any | 1.40% A | 1.39% | 1.40% | 1.37% | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.38% | 1.40% | 1.37% | 1.40% | 1.37% |
Net investment income (loss) | (.96)% A, H | (1.15)% I | (1.27)% | (1.24)% J | (1.25)% | (1.29)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 21,923 | $ 20,154 | $ 19,858 | $ 18,249 | $ 13,081 | $ 12,539 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.25)%. 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 (1.29)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.33)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 | $ 6.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) H | (.09) I | (.09) | (.11) J | (.11) | (.11) |
Net realized and unrealized gain (loss) | .92 | (.19) | (.78) | 1.18 | .51 | .10 |
Total from investment operations | .88 | (.28) | (.87) | 1.07 | .40 | (.01) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.38 | $ 6.50 | $ 6.78 | $ 7.65 | $ 7.11 | $ 6.71 |
Total Return B, C, D | 13.54% | (4.13)% | (11.37)% | 15.64% | 5.96% | (.15)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 1.76% A | 1.69% | 1.71% | 1.69% | 1.75% | 1.79% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.64% | 1.65% | 1.65% | 1.65% | 1.62% |
Net investment income (loss) | (1.21)% A, H | (1.41)% I | (1.52)% | (1.53)% J | (1.49)% | (1.54)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 13,338 | $ 11,684 | $ 13,356 | $ 15,123 | $ 13,008 | $ 13,808 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.50)%. 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 (1.55)%. JInvestment 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)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.56 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) I | (.12) | (.14) J | (.14) | (.14) |
Net realized and unrealized gain (loss) | .89 | (.18) | (.75) | 1.13 | .50 | .10 |
Total from investment operations | .83 | (.30) | (.87) | .99 | .36 | (.04) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.00 | $ 6.17 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Total Return B, C, D | 13.45% | (4.64)% | (11.85)% | 14.96% | 5.52% | (.61)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.21% A | 2.14% | 2.15% | 2.12% | 2.17% | 2.23% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.12% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15% A | 2.13% | 2.15% | 2.12% | 2.15% | 2.12% |
Net investment income (loss) | (1.72)% A, H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% | (2.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,549 | $ 6,297 | $ 7,377 | $ 11,044 | $ 12,656 | $ 14,938 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (2.00)%. 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 (2.04)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. 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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 | $ 6.57 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) H | (.12) I | (.12) | (.13) J | (.14) | (.14) |
Net realized and unrealized gain (loss) | .88 | (.17) | (.75) | 1.12 | .50 | .09 |
Total from investment operations | .82 | (.29) | (.87) | .99 | .36 | (.05) |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital E, L | - | - | - | - | - | - |
Net asset value, end of period | $ 7.00 | $ 6.18 | $ 6.47 | $ 7.34 | $ 6.88 | $ 6.52 |
Total Return B, C, D | 13.27% | (4.48)% | (11.85)% | 14.96% | 5.52% | (.76)% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions | 2.21% A | 2.14% | 2.15% | 2.12% | 2.16% | 2.17% |
Expenses net of fee waivers, if any | 2.15% A | 2.14% | 2.15% | 2.12% | 2.15% | 2.15% |
Expenses net of all reductions | 2.15% A | 2.13% | 2.15% | 2.12% | 2.15% | 2.12% |
Net investment income (loss) | (1.72)% A, H | (1.90)% I | (2.02)% | (2.00)% J | (1.99)% | (2.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,236 | $ 11,421 | $ 12,426 | $ 13,323 | $ 11,813 | $ 13,787 |
Portfolio turnover rate G | 88% A | 130% | 73% | 132% | 120% | 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 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 (2.00)%. 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 (2.04)%. J Investment income per share reflects a special dividend which amounted to $.01 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (2.08)%. 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 nd do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. L Amount represents less than $.01 per share. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 | $ 6.89 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.03) G | (.06) H | (.06) | (.07) I | (.07) | (.07) |
Net realized and unrealized gain (loss) | .99 | (.19) | (.82) | 1.23 | .53 | .09 |
Total from investment operations | .96 | (.25) | (.88) | 1.16 | .46 | .02 |
Distributions from net realized gain | - | - | - | (.53) | - | - |
Redemption fees added to paid in capital D, K | - | - | - | - | - | - |
Net asset value, end of period | $ 7.83 | $ 6.87 | $ 7.12 | $ 8.00 | $ 7.37 | $ 6.91 |
Total Return B, C | 13.97% | (3.51)% | (11.00)% | 16.35% | 6.66% | .29% |
Ratios to Average Net Assets E, J |
|
|
|
|
|
|
Expenses before reductions | 1.15% A | 1.07% | 1.11% | 1.06% | 1.06% | 1.05% |
Expenses net of fee waivers, if any | 1.15% A | 1.07% | 1.11% | 1.06% | 1.06% | 1.05% |
Expenses net of all reductions | 1.15% A | 1.06% | 1.11% | 1.06% | 1.06% | 1.03% |
Net investment income (loss) | (.72)% A, G | (.83)% H | (.98)% | (.94)% I | (.91)% | (.94)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,705 | $ 3,008 | $ 1,901 | $ 1,117 | $ 991 | $ 1,268 |
Portfolio turnover rate F | 88% A | 130% | 73% | 132% | 120% | 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 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 (1.00)%. 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 (.97)%. 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 (1.02)%. 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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, 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 | $ 13,205,480 |
Gross unrealized depreciation | (3,107,036) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 10,098,444 |
| |
Tax cost | $ 51,266,517 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 $23,522,379 and $26,296,062, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service |
Total | Retained |
Class A | -% | .25% | $ 26,356 | $ 127 |
Class T | .25% | .25% | 31,126 | - |
Class B | .75% | .25% | 29,863 | 22,397 |
Class C | .75% | .25% | 58,829 | 8,677 |
|
|
| $ 146,174 | $ 31,201 |
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% 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 | $ 4,017 |
Class T | 2,843 |
Class B* | 7,129 |
Class C* | 375 |
| $ 14,364 |
* 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
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, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 31,565 | .30 |
Class T | 21,577 | .35 |
Class B | 9,016 | .30 |
Class C | 17,578 | .30 |
Institutional Class | 3,416 | .24 |
| $ 83,152 |
|
* 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 $337 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $96 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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% | $ 6,295 |
Class T | 1.65% | 6,726 |
Class B | 2.15% | 1,757 |
Class C | 2.15% | 3,491 |
|
| $ 18,269 |
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 $1,139 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 | 295,918 | 1,118,865 | $ 2,157,139 | $ 7,975,997 |
Shares redeemed | (429,664) | (959,085) | (3,073,057) | (6,583,930) |
Net increase (decrease) | (133,746) | 159,780 | $ (915,918) | $ 1,392,067 |
Class T |
|
|
|
|
Shares sold | 173,128 | 412,827 | $ 1,245,880 | $ 2,848,621 |
Shares redeemed | (165,478) | (585,419) | (1,151,771) | (3,906,373) |
Net increase (decrease) | 7,650 | (172,592) | $ 94,109 | $ (1,057,752) |
Class B |
|
|
|
|
Shares sold | 32,957 | 304,652 | $ 195,804 | $ 1,993,007 |
Shares redeemed | (260,303) | (424,638) | (1,717,863) | (2,696,945) |
Net increase (decrease) | (227,346) | (119,986) | $ (1,522,059) | $ (703,938) |
Class C |
|
|
|
|
Shares sold | 102,060 | 489,582 | $ 688,646 | $ 3,216,700 |
Shares redeemed | (204,052) | (559,923) | (1,347,836) | (3,577,484) |
Net increase (decrease) | (101,992) | (70,341) | $ (659,190) | $ (360,784) |
Institutional Class |
|
|
|
|
Shares sold | 174,957 | 453,122 | $ 1,362,263 | $ 3,410,559 |
Shares redeemed | (139,544) | (282,175) | (1,006,375) | (1,995,414) |
Net increase (decrease) | 35,413 | 170,947 | $ 355,888 | $ 1,415,145 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,267.60 | $ 8.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,267.10 | $ 9.43 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,264.30 | $ 12.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,263.00 | $ 12.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,270.30 | $ 6.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Cisco Systems, Inc. | 16.3 | 8.7 |
QUALCOMM, Inc. | 13.2 | 11.4 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 7.5 | 8.6 |
Juniper Networks, Inc. | 4.7 | 4.6 |
HTC Corp. | 4.5 | 1.2 |
Motorola Mobility Holdings, Inc. | 3.5 | 0.0 |
Adtran, Inc. | 2.7 | 2.3 |
Ciena Corp. | 2.6 | 0.1 |
Alcatel-Lucent SA sponsored ADR | 2.5 | 0.0 |
Apple, Inc. | 2.4 | 2.4 |
| 59.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Communications Equipment | 81.3% |
|
 | Semiconductors & Semiconductor Equipment | 4.5% |
|
 | Electronic Equipment & Components | 3.4% |
|
 | Software | 3.3% |
|
 | Computers & Peripherals | 2.7% |
|
| All Others* | 4.8% |
|
As of July 31, 2010 | |||
| Communications Equipment | 79.5% |
|
| Semiconductors & Semiconductor Equipment | 4.8% |
|
| Computers & Peripherals | 4.3% |
|
| Wireless Telecommunication Services | 3.9% |
|
| Electronic Equipment & Components | 2.6% |
|
| All Others* | 4.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 81.2% | |||
Communications Equipment - 81.2% | |||
Acme Packet, Inc. (a) | 5,971 | $ 321,120 | |
Adtran, Inc. | 15,883 | 653,268 | |
ADVA AG Optical Networking (a) | 15,658 | 135,689 | |
Alcatel-Lucent SA sponsored ADR (a) | 182,857 | 605,257 | |
Arris Group, Inc. (a) | 6,771 | 84,502 | |
Aruba Networks, Inc. (a) | 11,440 | 246,532 | |
Aviat Networks, Inc. (a) | 5,667 | 29,412 | |
BigBand Networks, Inc. (a) | 29,453 | 78,050 | |
Blue Coat Systems, Inc. (a) | 2,600 | 74,906 | |
Brocade Communications Systems, Inc. (a) | 26,759 | 150,921 | |
Calix Networks, Inc. (a)(d) | 6,700 | 109,210 | |
Ceragon Networks Ltd. (a) | 3,115 | 38,346 | |
China Wireless Technologies Ltd. | 116,000 | 64,124 | |
Ciena Corp. (a)(d) | 28,309 | 623,647 | |
Cisco Systems, Inc. (a) | 185,474 | 3,922,773 | |
Comverse Technology, Inc. (a) | 906 | 5,943 | |
DG FastChannel, Inc. (a) | 2,700 | 74,007 | |
Digi International, Inc. (a) | 2,700 | 28,593 | |
DragonWave, Inc. (a) | 7,900 | 56,186 | |
EchoStar Holding Corp. Class A (a) | 2,120 | 57,770 | |
EMCORE Corp. (a)(d) | 4,600 | 6,348 | |
Emulex Corp. (a) | 10,300 | 117,523 | |
Extreme Networks, Inc. (a) | 5,400 | 17,712 | |
F5 Networks, Inc. (a) | 3,130 | 339,229 | |
Finisar Corp. (a) | 3,962 | 131,935 | |
Harmonic, Inc. (a) | 11,860 | 100,098 | |
Harris Corp. | 9,200 | 428,168 | |
HTC Corp. | 32,400 | 1,092,273 | |
Infinera Corp. (a) | 2,800 | 20,538 | |
Ixia (a) | 6,496 | 102,182 | |
JDS Uniphase Corp. (a) | 19,073 | 323,669 | |
Juniper Networks, Inc. (a) | 30,588 | 1,135,427 | |
Motorola Mobility Holdings, Inc. | 30,241 | 842,817 | |
Motorola Solutions, Inc. | 1,247 | 48,346 | |
Nokia Corp. sponsored ADR (d) | 32,365 | 346,306 | |
Oclaro, Inc. (a) | 4,275 | 59,337 | |
Oplink Communications, Inc. (a) | 754 | 18,684 | |
Opnext, Inc. (a) | 9,601 | 17,858 | |
Polycom, Inc. (a) | 7,600 | 333,260 | |
QUALCOMM, Inc. | 58,720 | 3,178,514 | |
Research In Motion Ltd. (a) | 700 | 41,377 | |
Riverbed Technology, Inc. (a) | 11,558 | 414,585 | |
Sandvine Corp. (a) | 56,400 | 162,600 | |
Sandvine Corp. (U.K.) (a) | 18,930 | 55,026 | |
ShoreTel, Inc. (a) | 46,476 | 352,288 | |
Sierra Wireless, Inc. (a) | 7,800 | 110,249 | |
Sycamore Networks, Inc. | 6,100 | 127,246 | |
Tekelec (a) | 17,360 | 199,206 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 146,120 | 1,807,504 | |
| |||
Shares | Value | ||
Tellabs, Inc. | 13,800 | $ 73,140 | |
ZTE Corp. (H Shares) | 48,250 | 190,294 | |
| 19,553,995 | ||
COMPUTERS & PERIPHERALS - 2.7% | |||
Computer Hardware - 2.4% | |||
Apple, Inc. (a) | 1,723 | 584,648 | |
Computer Storage & Peripherals - 0.3% | |||
Novatel Wireless, Inc. (a) | 8,298 | 59,829 | |
TOTAL COMPUTERS & PERIPHERALS | 644,477 | ||
ELECTRICAL EQUIPMENT - 0.0% | |||
Electrical Components & Equipment - 0.0% | |||
A123 Systems, Inc. (a) | 100 | 906 | |
ELECTRONIC EQUIPMENT & COMPONENTS - 3.4% | |||
Electronic Components - 1.5% | |||
Corning, Inc. | 10,400 | 230,984 | |
E Ink Holdings, Inc. (a) | 16,000 | 29,146 | |
Universal Display Corp. (a) | 2,800 | 94,752 | |
| 354,882 | ||
Electronic Manufacturing Services - 1.9% | |||
Jabil Circuit, Inc. | 2,400 | 48,504 | |
SMART Modular Technologies (WWH), Inc. (a) | 4,416 | 29,852 | |
Trimble Navigation Ltd. (a) | 8,219 | 378,732 | |
| 457,088 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 811,970 | ||
INTERNET SOFTWARE & SERVICES - 0.4% | |||
Internet Software & Services - 0.4% | |||
Akamai Technologies, Inc. (a) | 345 | 16,670 | |
Equinix, Inc. (a) | 300 | 26,526 | |
Limelight Networks, Inc. (a) | 2,465 | 15,369 | |
Rackspace Hosting, Inc. (a) | 600 | 20,106 | |
Tencent Holdings Ltd. | 1,100 | 28,499 | |
| 107,170 | ||
IT SERVICES - 0.1% | |||
Data Processing & Outsourced Services - 0.1% | |||
Amadeus IT Holding SA Class A (a) | 700 | 14,681 | |
NeuStar, Inc. Class A (a) | 700 | 18,781 | |
| 33,462 | ||
IT Consulting & Other Services - 0.0% | |||
Yucheng Technologies Ltd. (a) | 1,200 | 4,500 | |
TOTAL IT SERVICES | 37,962 | ||
MEDIA - 0.8% | |||
Advertising - 0.5% | |||
VisionChina Media, Inc. ADR (a)(d) | 24,800 | 107,880 | |
Common Stocks - continued | |||
Shares | Value | ||
MEDIA - CONTINUED | |||
Cable & Satellite - 0.3% | |||
Virgin Media, Inc. | 3,050 | $ 76,738 | |
TOTAL MEDIA | 184,618 | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 4.5% | |||
Semiconductors - 4.5% | |||
Applied Micro Circuits Corp. (a) | 2,758 | 27,139 | |
Avago Technologies Ltd. | 4,800 | 137,808 | |
Cavium Networks, Inc. (a) | 2,499 | 98,810 | |
Cirrus Logic, Inc. (a)(d) | 4,832 | 101,617 | |
Conexant Systems, Inc. (a) | 1,280 | 2,675 | |
CSR PLC (a) | 2,483 | 15,339 | |
Entropic Communications, Inc. (a) | 200 | 2,194 | |
Exar Corp. (a) | 143 | 918 | |
Ikanos Communications, Inc. (a) | 3,985 | 4,782 | |
Infineon Technologies AG | 1,076 | 11,373 | |
Inphi Corp. | 2,400 | 45,432 | |
Marvell Technology Group Ltd. (a) | 2,300 | 43,723 | |
Netlogic Microsystems, Inc. (a) | 2,102 | 73,276 | |
Omnivision Technologies, Inc. (a) | 600 | 15,498 | |
ON Semiconductor Corp. (a) | 7,285 | 80,499 | |
Pericom Semiconductor Corp. (a) | 1,700 | 17,051 | |
Pixelplus Co. Ltd. ADR (a) | 900 | 1,620 | |
PLX Technology, Inc. (a) | 900 | 2,894 | |
PMC-Sierra, Inc. (a) | 3,100 | 24,242 | |
Spreadtrum Communications, Inc. ADR (a)(d) | 13,500 | 290,250 | |
Standard Microsystems Corp. (a) | 1,200 | 28,860 | |
TriQuint Semiconductor, Inc. (a) | 5,000 | 65,800 | |
| 1,091,800 | ||
SOFTWARE - 3.3% | |||
Application Software - 2.1% | |||
AsiaInfo Holdings, Inc. (a) | 3,300 | 70,818 | |
AutoNavi Holdings Ltd. ADR | 5,700 | 93,252 | |
BroadSoft, Inc. (a) | 5,200 | 144,092 | |
KongZhong Corp. sponsored ADR (a) | 100 | 703 | |
NetScout Systems, Inc. (a) | 1,200 | 27,504 | |
Smith Micro Software, Inc. (a) | 1,868 | 23,574 | |
SolarWinds, Inc. (a) | 1,929 | 36,458 | |
Synchronoss Technologies, Inc. (a) | 3,447 | 98,102 | |
Taleo Corp. Class A (a) | 100 | 2,946 | |
TeleNav, Inc. | 300 | 3,150 | |
| 500,599 | ||
Home Entertainment Software - 0.1% | |||
Giant Interactive Group, Inc. ADR | 2,000 | 13,920 | |
Systems Software - 1.1% | |||
Allot Communications Ltd. (a) | 3,700 | 43,253 | |
Fortinet, Inc. (a) | 3,150 | 121,118 | |
| |||
Shares | Value | ||
Opnet Technologies, Inc. | 2,881 | $ 82,368 | |
TeleCommunication Systems, Inc. Class A (a) | 6,977 | 28,536 | |
| 275,275 | ||
TOTAL SOFTWARE | 789,794 | ||
WIRELESS TELECOMMUNICATION SERVICES - 1.9% | |||
Wireless Telecommunication Services - 1.9% | |||
American Tower Corp. Class A (a) | 2,490 | 126,641 | |
Crown Castle International Corp. (a) | 2,900 | 122,293 | |
Leap Wireless International, Inc. (a) | 300 | 4,194 | |
SBA Communications Corp. Class A (a) | 3,552 | 144,922 | |
SOFTBANK CORP. | 800 | 27,515 | |
Sprint Nextel Corp. (a) | 5,000 | 22,600 | |
| 448,165 | ||
TOTAL COMMON STOCKS (Cost $19,391,141) | 23,670,857 | ||
Convertible Bonds - 0.1% | |||
| Principal Amount |
| |
COMMUNICATIONS EQUIPMENT - 0.1% | |||
Communications Equipment - 0.1% | |||
Ciena Corp. 0.25% 5/1/13 | $ 20,000 | 19,240 | |
Money Market Funds - 8.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 1,416,355 | 1,416,355 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 639,075 | 639,075 | |
TOTAL MONEY MARKET FUNDS (Cost $2,055,430) | 2,055,430 | ||
TOTAL INVESTMENT PORTFOLIO - 106.9% (Cost $21,466,571) | 25,745,527 | |
NET OTHER ASSETS (LIABILITIES) - (6.9)% | (1,670,053) | |
NET ASSETS - 100% | $ 24,075,474 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 358 |
Fidelity Securities Lending Cash Central Fund | 1,354 |
Total | $ 1,712 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 23,670,857 | $ 23,670,857 | $ - | $ - |
Convertible Bonds | 19,240 | - | 19,240 | - |
Money Market Funds | 2,055,430 | 2,055,430 | - | - |
Total Investments in Securities: | $ 25,745,527 | $ 25,726,287 | $ 19,240 | $ - |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 76.7% |
Sweden | 7.5% |
Taiwan | 4.6% |
Cayman Islands | 2.7% |
France | 2.5% |
Canada | 1.8% |
Finland | 1.4% |
Others (Individually Less Than 1%) | 2.8% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $1,187,448 of which $207,917, $393,298 and $586,233 will expire in fiscal 2016, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $615,181) - See accompanying schedule: Unaffiliated issuers (cost $19,411,141) | $ 23,690,097 |
|
Fidelity Central Funds (cost $2,055,430) | 2,055,430 |
|
Total Investments (cost $21,466,571) |
| $ 25,745,527 |
Cash | 10,691 | |
Receivable for fund shares sold | 227,040 | |
Interest receivable | 12 | |
Distributions receivable from Fidelity Central Funds | 401 | |
Prepaid expenses | 37 | |
Receivable from investment adviser for expense reductions | 962 | |
Other receivables | 562 | |
Total assets | 25,985,232 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,135,446 | |
Payable for fund shares redeemed | 86,359 | |
Accrued management fee | 9,974 | |
Distribution and service plan fees payable | 8,888 | |
Other affiliated payables | 5,221 | |
Other payables and accrued expenses | 24,795 | |
Collateral on securities loaned, at value | 639,075 | |
Total liabilities | 1,909,758 | |
|
| |
Net Assets | $ 24,075,474 | |
Net Assets consist of: |
| |
Paid in capital | $ 19,672,818 | |
Accumulated net investment loss | (113,011) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 236,711 | |
Net unrealized appreciation (depreciation) on investments | 4,278,956 | |
Net Assets | $ 24,075,474 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 10.99 | |
|
|
|
Maximum offering price per share (100/94.25 of $10.99) | $ 11.66 | |
Class T: | $ 10.72 | |
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|
|
Maximum offering price per share (100/96.50 of $10.72) | $ 11.11 | |
Class B: | $ 10.19 | |
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Class C: | $ 10.18 | |
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Institutional Class: | $ 11.28 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 23,927 |
Interest |
| 29 |
Income from Fidelity Central Funds (including $1,354 from security lending) |
| 1,712 |
Total income |
| 25,668 |
|
|
|
Expenses | ||
Management fee | $ 47,244 | |
Transfer agent fees | 25,603 | |
Distribution and service plan fees | 42,838 | |
Accounting and security lending fees | 3,381 | |
Custodian fees and expenses | 6,067 | |
Independent trustees' compensation | 44 | |
Registration fees | 47,586 | |
Audit | 24,147 | |
Legal | 51 | |
Miscellaneous | 75 | |
Total expenses before reductions | 197,036 | |
Expense reductions | (58,357) | 138,679 |
Net investment income (loss) | (113,011) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,611,475 | |
Foreign currency transactions | (1,315) | |
Total net realized gain (loss) |
| 1,610,160 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 2,442,677 | |
Assets and liabilities in foreign currencies | (5) | |
Total change in net unrealized appreciation (depreciation) | 2,442,672 | |
Net gain (loss) | 4,052,832 | |
Net increase (decrease) in net assets resulting from operations | $ 3,939,821 | |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (113,011) | $ (225,209) |
Net realized gain (loss) | 1,610,160 | 955,330 |
Change in net unrealized appreciation (depreciation) | 2,442,672 | 1,311,875 |
Net increase (decrease) in net assets resulting from operations | 3,939,821 | 2,041,996 |
Share transactions - net increase (decrease) | 5,848,259 | 1,341,807 |
Redemption fees | 376 | 1,464 |
Total increase (decrease) in net assets | 9,788,456 | 3,385,267 |
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|
|
Net Assets | ||
Beginning of period | 14,287,018 | 10,901,751 |
End of period (including accumulated net investment loss of $113,011 and undistributed net investment income of $0, respectively) | $ 24,075,474 | $ 14,287,018 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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|
|
|
|
|
Net asset value, beginning of period | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 | $ 7.70 |
Income from Investment Operations |
|
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|
|
|
|
Net investment income (loss) E | (.05) | (.11) | .02 H | (.08) | (.09) | (.09) |
Net realized and unrealized gain (loss) | 2.37 | 1.50 | (.56) | (1.45) | 2.29 | (.32) |
Total from investment operations | 2.32 | 1.39 | (.54) | (1.53) | 2.20 | (.41) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.99 | $ 8.67 | $ 7.28 | $ 7.82 | $ 9.49 | $ 7.29 |
Total Return B, C, D | 26.76% | 19.09% | (6.91)% | (16.43)% | 30.18% | (5.32)% |
Ratios to Average Net Assets F, I |
|
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|
|
|
|
Expenses before reductions | 2.07% A | 1.90% | 3.15% | 2.25% | 2.24% | 2.13% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.39% A | 1.38% | 1.40% | 1.39% | 1.40% | 1.32% |
Net investment income (loss) | (1.08)% A | (1.32)% | .26% H | (.91)% | (1.00)% | (1.05)% |
Supplemental Data |
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|
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|
Net assets, end of period (000 omitted) | $ 9,629 | $ 4,860 | $ 3,476 | $ 2,459 | $ 2,825 | $ 3,145 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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|
|
|
|
|
Net asset value, beginning of period | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 | $ 7.61 |
Income from Investment Operations |
|
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|
|
|
|
Net investment income (loss) E | (.06) | (.13) | - H, J | (.10) | (.11) | (.11) |
Net realized and unrealized gain (loss) | 2.32 | 1.46 | (.55) | (1.42) | 2.26 | (.31) |
Total from investment operations | 2.26 | 1.33 | (.55) | (1.52) | 2.15 | (.42) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.72 | $ 8.46 | $ 7.13 | $ 7.68 | $ 9.34 | $ 7.19 |
Total Return B, C, D | 26.71% | 18.65% | (7.16)% | (16.59)% | 29.90% | (5.52)% |
Ratios to Average Net Assets F, I |
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|
Expenses before reductions | 2.37% A | 2.20% | 3.52% | 2.62% | 2.57% | 2.51% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.64% A | 1.63% | 1.65% | 1.65% | 1.64% | 1.57% |
Net investment income (loss) | (1.33)% A | (1.57)% | .01% H | (1.16)% | (1.25)% | (1.30)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 4,936 | $ 3,273 | $ 2,396 | $ 2,138 | $ 3,271 | $ 2,932 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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|
|
|
Net asset value, beginning of period | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 | $ 7.44 |
Income from Investment Operations |
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|
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Net investment income (loss) E | (.08) | (.16) | (.03) H | (.14) | (.14) | (.14) |
Net realized and unrealized gain (loss) | 2.21 | 1.39 | (.53) | (1.36) | 2.18 | (.31) |
Total from investment operations | 2.13 | 1.23 | (.56) | (1.50) | 2.04 | (.45) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 8.06 | $ 6.83 | $ 7.39 | $ 9.03 | $ 6.99 |
Total Return B, C, D | 26.43% | 18.01% | (7.58)% | (16.94)% | 29.18% | (6.05)% |
Ratios to Average Net Assets F, I |
|
|
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|
|
Expenses before reductions | 2.83% A | 2.68% | 3.98% | 3.03% | 3.00% | 2.94% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.15% | 2.15% | 2.15% | 2.07% |
Net investment income (loss) | (1.83)% A | (2.07)% | (.49)% H | (1.67)% | (1.75)% | (1.80)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 1,822 | $ 1,408 | $ 1,281 | $ 1,219 | $ 2,225 | $ 2,406 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
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|
|
|
Net asset value, beginning of period | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 | $ 7.44 |
Income from Investment Operations |
|
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|
|
Net investment income (loss) E | (.08) | (.16) | (.03) H | (.14) | (.14) | (.15) |
Net realized and unrealized gain (loss) | 2.20 | 1.40 | (.53) | (1.37) | 2.18 | (.30) |
Total from investment operations | 2.12 | 1.24 | (.56) | (1.51) | 2.04 | (.45) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 10.18 | $ 8.06 | $ 6.82 | $ 7.38 | $ 9.03 | $ 6.99 |
Total Return B, C, D | 26.30% | 18.18% | (7.59)% | (17.06)% | 29.18% | (6.05)% |
Ratios to Average Net Assets F, I |
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Expenses before reductions | 2.82% A | 2.67% | 3.63% | 3.02% | 2.98% | 2.86% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.15% | 2.15% | 2.15% | 2.07% |
Net investment income (loss) | (1.83)% A | (2.07)% | (.49)% H | (1.67)% | (1.75)% | (1.81)% |
Supplemental Data |
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Net assets, end of period (000 omitted) | $ 4,857 | $ 3,029 | $ 2,792 | $ 1,097 | $ 1,745 | $ 1,768 |
Portfolio turnover rate G | 95% A | 106% | 97% | 63% | 58% | 174% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 | $ 7.79 |
Income from Investment Operations |
|
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|
|
Net investment income (loss) D | (.04) | (.09) | .03 G | (.06) | (.07) | (.07) |
Net realized and unrealized gain (loss) | 2.44 | 1.52 | (.56) | (1.47) | 2.33 | (.33) |
Total from investment operations | 2.40 | 1.43 | (.53) | (1.53) | 2.26 | (.40) |
Distributions from net realized gain | - | - | - | (.14) | - | - |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.28 | $ 8.88 | $ 7.45 | $ 7.98 | $ 9.65 | $ 7.39 |
Total Return B, C | 27.03% | 19.19% | (6.64)% | (16.16)% | 30.58% | (5.13)% |
Ratios to Average Net Assets E, H |
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Expenses before reductions | 1.75% A | 1.54% | 2.44% | 1.94% | 1.87% | 1.70% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Expenses net of all reductions | 1.14% A | 1.13% | 1.15% | 1.14% | 1.15% | 1.07% |
Net investment income (loss) | (.83)% A | (1.07)% | .51% G | (.66)% | (.75)% | (.80)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 2,832 | $ 1,717 | $ 957 | $ 229 | $ 324 | $ 379 |
Portfolio turnover rate F | 95% A | 106% | 97% | 63% | 58% | 174% |
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.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices 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.
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to 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 | $ 4,758,760 |
Gross unrealized depreciation | (642,639) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 4,116,121 |
| |
Tax cost | $ 21,629,406 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $13,325,574 and $8,029,166, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 7,528 | $ 284 |
Class T | .25% | .25% | 9,674 | - |
Class B | .75% | .25% | 7,928 | 5,946 |
Class C | .75% | .25% | 17,708 | 3,257 |
|
|
| $ 42,838 | $ 9,487 |
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% 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 | $ 4,115 |
Class T | 1,942 |
Class B* | 786 |
Class C* | 507 |
| $ 7,350 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 8,993 | .30 |
Class T | 6,661 | .34 |
Class B | 2,392 | .30 |
Class C | 5,276 | .30 |
Institutional Class | 2,281 | .24 |
| $ 25,603 |
|
* Annualized
Semiannual Report
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 $1,128 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $28 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
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% | $ 20,290 |
Class T | 1.65% | 14,045 |
Class B | 2.15% | 5,457 |
Class C | 2.15% | 11,993 |
Institutional Class | 1.15% | 5,765 |
|
| $ 57,550 |
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 $807 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 381,170 | 379,066 | $ 4,007,558 | $ 3,104,413 |
Shares redeemed | (66,126) | (295,518) | (650,278) | (2,391,964) |
Net increase (decrease) | 315,044 | 83,548 | $ 3,357,280 | $ 712,449 |
Class T |
|
|
|
|
Shares sold | 107,443 | 156,340 | $ 1,065,170 | $ 1,239,925 |
Shares redeemed | (33,931) | (105,545) | (315,486) | (829,604) |
Net increase (decrease) | 73,512 | 50,795 | $ 749,684 | $ 410,321 |
Class B |
|
|
|
|
Shares sold | 31,305 | 104,878 | $ 290,191 | $ 798,141 |
Shares redeemed | (27,114) | (117,849) | (244,569) | (896,172) |
Net increase (decrease) | 4,191 | (12,971) | $ 45,622 | $ (98,031) |
Class C |
|
|
|
|
Shares sold | 161,535 | 234,346 | $ 1,572,441 | $ 1,790,479 |
Shares redeemed | (60,582) | (267,515) | (545,385) | (1,967,047) |
Net increase (decrease) | 100,953 | (33,169) | $ 1,027,056 | $ (176,568) |
Institutional Class |
|
|
|
|
Shares sold | 99,583 | 263,129 | $ 1,068,885 | $ 2,147,225 |
Shares redeemed | (41,910) | (198,313) | (400,268) | (1,653,589) |
Net increase (decrease) | 57,673 | 64,816 | $ 668,617 | $ 493,636 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,205.50 | $ 7.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,204.50 | $ 9.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.40 | $ 11.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,201.00 | $ 11.93 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.07% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,208.00 | $ 5.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.81 | $ 5.45 |
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
Fidelity Advisor Consumer Discretionary Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Lowe's Companies, Inc. | 5.7 | 5.8 |
The Walt Disney Co. | 5.5 | 5.7 |
McDonald's Corp. | 4.3 | 6.1 |
Target Corp. | 3.6 | 4.2 |
Amazon.com, Inc. | 3.3 | 3.6 |
News Corp. Class A | 3.0 | 0.0 |
DIRECTV | 2.9 | 3.4 |
Bed Bath & Beyond, Inc. | 2.8 | 2.2 |
TJX Companies, Inc. | 2.6 | 1.8 |
Starbucks Corp. | 2.2 | 1.9 |
| 35.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Specialty Retail | 24.6% |
|
| Media | 24.1% |
|
| Hotels, Restaurants & Leisure | 19.4% |
|
| Textiles, Apparel & Luxury Goods | 4.5% |
|
| Automobiles | 4.5% |
|
| All Others* | 22.9% |
|
As of July 31, 2010 | |||
| Media | 26.6% |
|
| Specialty Retail | 21.8% |
|
| Hotels, Restaurants & Leisure | 21.4% |
|
| Multiline Retail | 5.5% |
|
| Household Durables | 4.8% |
|
| All Others* | 19.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value | ||
AUTO COMPONENTS - 4.4% | |||
Auto Parts & Equipment - 4.4% | |||
Autoliv, Inc. | 13,000 | $ 998,400 | |
Tenneco, Inc. (a) | 21,017 | 868,633 | |
TRW Automotive Holdings Corp. (a) | 15,971 | 952,830 | |
| 2,819,863 | ||
AUTOMOBILES - 4.0% | |||
Automobile Manufacturers - 4.0% | |||
Bayerische Motoren Werke AG (BMW) | 4,160 | 319,378 | |
Ford Motor Co. (a) | 53,292 | 850,007 | |
General Motors Co. | 37,700 | 1,375,673 | |
| 2,545,058 | ||
DISTRIBUTORS - 0.3% | |||
Distributors - 0.3% | |||
Li & Fung Ltd. | 28,000 | 181,536 | |
DIVERSIFIED CONSUMER SERVICES - 3.0% | |||
Education Services - 1.5% | |||
DeVry, Inc. | 8,668 | 451,689 | |
Grand Canyon Education, Inc. (a) | 27,756 | 502,106 | |
| 953,795 | ||
Specialized Consumer Services - 1.5% | |||
Sotheby's Class A (ltd. vtg.) | 15,100 | 608,530 | |
Steiner Leisure Ltd. (a) | 7,605 | 337,054 | |
| 945,584 | ||
TOTAL DIVERSIFIED CONSUMER SERVICES | 1,899,379 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.2% | |||
Technology Distributors - 0.2% | |||
Funtalk China Holdings Ltd. (a) | 22,200 | 132,534 | |
FOOD & STAPLES RETAILING - 1.9% | |||
Drug Retail - 0.1% | |||
Droga Raia SA | 3,000 | 47,136 | |
Hypermarkets & Super Centers - 1.8% | |||
BJ's Wholesale Club, Inc. (a) | 5,179 | 227,565 | |
Costco Wholesale Corp. | 13,522 | 971,420 | |
| 1,198,985 | ||
TOTAL FOOD & STAPLES RETAILING | 1,246,121 | ||
HOTELS, RESTAURANTS & LEISURE - 19.4% | |||
Casinos & Gaming - 3.8% | |||
Betfair Group PLC | 11,200 | 164,137 | |
Las Vegas Sands Corp. unit | 1,010 | 796,951 | |
MGM Mirage, Inc. (a)(d) | 28,547 | 423,352 | |
Pinnacle Entertainment, Inc. (a) | 20,000 | 301,600 | |
WMS Industries, Inc. (a) | 17,813 | 747,255 | |
| 2,433,295 | ||
Hotels, Resorts & Cruise Lines - 4.6% | |||
Accor SA | 8,553 | 391,083 | |
| |||
Shares | Value | ||
Carnival Corp. unit | 8,500 | $ 380,035 | |
China Lodging Group Ltd. ADR | 9,848 | 197,255 | |
Club Mediterranee SA (a) | 600 | 13,763 | |
Starwood Hotels & Resorts Worldwide, Inc. | 19,221 | 1,133,462 | |
Wyndham Worldwide Corp. | 29,253 | 822,887 | |
| 2,938,485 | ||
Restaurants - 11.0% | |||
BJ's Restaurants, Inc. (a) | 12,000 | 423,960 | |
Bravo Brio Restaurant Group, Inc. | 6,900 | 112,470 | |
Darden Restaurants, Inc. | 19,573 | 922,084 | |
McDonald's Corp. | 37,400 | 2,755,258 | |
P.F. Chang's China Bistro, Inc. (d) | 10,593 | 487,702 | |
Ruth's Hospitality Group, Inc. (a) | 56,219 | 261,981 | |
Starbucks Corp. | 45,539 | 1,435,845 | |
Texas Roadhouse, Inc. Class A (a) | 40,300 | 669,786 | |
| 7,069,086 | ||
TOTAL HOTELS, RESTAURANTS & LEISURE | 12,440,866 | ||
HOUSEHOLD DURABLES - 2.5% | |||
Home Furnishings - 1.1% | |||
Tempur-Pedic International, Inc. (a) | 16,230 | 708,277 | |
Homebuilding - 1.4% | |||
Lennar Corp. Class A | 35,811 | 693,301 | |
Toll Brothers, Inc. (a) | 10,600 | 214,544 | |
| 907,845 | ||
TOTAL HOUSEHOLD DURABLES | 1,616,122 | ||
INTERNET & CATALOG RETAIL - 4.2% | |||
Internet Retail - 4.2% | |||
Amazon.com, Inc. (a) | 12,600 | 2,137,464 | |
Expedia, Inc. | 21,500 | 540,940 | |
Ocado Group PLC (a) | 4,900 | 17,109 | |
| 2,695,513 | ||
INTERNET SOFTWARE & SERVICES - 0.5% | |||
Internet Software & Services - 0.5% | |||
eBay, Inc. (a) | 10,600 | 321,816 | |
LEISURE EQUIPMENT & PRODUCTS - 0.7% | |||
Leisure Products - 0.7% | |||
Polaris Industries, Inc. | 5,600 | 430,752 | |
MEDIA - 24.1% | |||
Advertising - 2.8% | |||
Interpublic Group of Companies, Inc. (a) | 50,625 | 541,181 | |
Lamar Advertising Co. Class A (a) | 15,916 | 586,345 | |
National CineMedia, Inc. | 38,668 | 682,104 | |
| 1,809,630 | ||
Broadcasting - 0.7% | |||
Scripps Networks Interactive, Inc. Class A | 10,091 | 469,232 | |
Common Stocks - continued | |||
Shares | Value | ||
MEDIA - CONTINUED | |||
Cable & Satellite - 11.4% | |||
Comcast Corp.: | |||
Class A | 44,000 | $ 1,001,000 | |
Class A (special) (non-vtg.) | 37,588 | 805,887 | |
DIRECTV (a) | 43,595 | 1,847,992 | |
Kabel Deutschland Holding AG | 13,483 | 679,263 | |
Sirius XM Radio, Inc. (a) | 263,600 | 425,714 | |
Time Warner Cable, Inc. | 18,639 | 1,264,283 | |
Virgin Media, Inc. (d) | 50,542 | 1,271,637 | |
| 7,295,776 | ||
Movies & Entertainment - 8.5% | |||
News Corp. Class A | 128,461 | 1,929,484 | |
The Walt Disney Co. | 90,927 | 3,534,332 | |
| 5,463,816 | ||
Publishing - 0.7% | |||
United Business Media Ltd. | 40,300 | 453,439 | |
TOTAL MEDIA | 15,491,893 | ||
MULTILINE RETAIL - 4.0% | |||
Department Stores - 0.4% | |||
Nordstrom, Inc. | 3,819 | 157,266 | |
Retail Ventures, Inc. (a) | 7,499 | 113,085 | |
| 270,351 | ||
General Merchandise Stores - 3.6% | |||
Target Corp. | 41,716 | 2,287,288 | |
TOTAL MULTILINE RETAIL | 2,557,639 | ||
PROFESSIONAL SERVICES - 0.3% | |||
Research & Consulting Services - 0.3% | |||
Nielsen Holdings B.V. (a) | 7,700 | 200,739 | |
SPECIALTY RETAIL - 24.6% | |||
Apparel Retail - 6.1% | |||
Chico's FAS, Inc. | 35,000 | 382,200 | |
Citi Trends, Inc. (a) | 21,796 | 499,128 | |
DSW, Inc. Class A (a) | 2,500 | 83,225 | |
Fast Retailing Co. Ltd. | 1,100 | 160,149 | |
Inditex SA | 4,292 | 324,283 | |
TJX Companies, Inc. | 34,934 | 1,655,522 | |
Urban Outfitters, Inc. (a) | 23,978 | 810,936 | |
| 3,915,443 | ||
| |||
Shares | Value | ||
Automotive Retail - 2.0% | |||
Advance Auto Parts, Inc. | 18,320 | $ 1,171,381 | |
Lentuo International, Inc. ADR | 14,100 | 99,969 | |
| 1,271,350 | ||
Computer & Electronics Retail - 1.8% | |||
Best Buy Co., Inc. | 18,900 | 642,600 | |
Carphone Warehouse Group PLC (a) | 3,700 | 23,882 | |
hhgregg, Inc. (a)(d) | 26,831 | 491,812 | |
| 1,158,294 | ||
Home Improvement Retail - 8.5% | |||
Home Depot, Inc. | 32,489 | 1,194,621 | |
Lowe's Companies, Inc. | 146,923 | 3,643,688 | |
Lumber Liquidators Holdings, Inc. (a)(d) | 20,925 | 584,645 | |
| 5,422,954 | ||
Homefurnishing Retail - 2.8% | |||
Bed Bath & Beyond, Inc. (a) | 37,506 | 1,800,288 | |
Specialty Stores - 3.4% | |||
Hengdeli Holdings Ltd. | 530,000 | 298,417 | |
Office Depot, Inc. (a) | 21,200 | 111,300 | |
OfficeMax, Inc. (a) | 42,393 | 681,256 | |
Tractor Supply Co. | 16,234 | 832,967 | |
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 7,600 | 281,504 | |
| 2,205,444 | ||
TOTAL SPECIALTY RETAIL | 15,773,773 | ||
TEXTILES, APPAREL & LUXURY GOODS - 4.5% | |||
Apparel, Accessories & Luxury Goods - 3.0% | |||
China Xiniya Fashion Ltd. ADR | 12,300 | 72,201 | |
Phillips-Van Heusen Corp. | 9,182 | 535,953 | |
Polo Ralph Lauren Corp. Class A | 5,792 | 620,787 | |
Titan Industries Ltd. | 4,661 | 366,279 | |
Vera Bradley, Inc. (d) | 9,700 | 333,632 | |
| 1,928,852 | ||
Footwear - 1.5% | |||
Iconix Brand Group, Inc. (a) | 19,600 | 389,060 | |
NIKE, Inc. Class B | 7,300 | 602,104 | |
| 991,164 | ||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | 2,920,016 | ||
TOTAL COMMON STOCKS (Cost $56,294,513) | 63,273,620 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
|
|
|
|
AUTOMOBILES - 0.5% | |||
Automobile Manufacturers - 0.5% | |||
Volkswagen AG | 1,900 | 306,930 | |
Money Market Funds - 4.9% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.19% (b) | 323,073 | $ 323,073 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 2,829,006 | 2,829,006 | |
TOTAL MONEY MARKET FUNDS (Cost $3,152,079) | 3,152,079 | ||
TOTAL INVESTMENT PORTFOLIO - 104.0% (Cost $59,763,323) | 66,732,629 | |
NET OTHER ASSETS (LIABILITIES) - (4.0)% | (2,572,523) | |
NET ASSETS - 100% | $ 64,160,106 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 693 |
Fidelity Securities Lending Cash Central Fund | 4,549 |
Total | $ 5,242 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 63,273,620 | $ 62,476,669 | $ 796,951 | $ - |
Nonconvertible Preferred Stocks | 306,930 | 306,930 | - | - |
Money Market Funds | 3,152,079 | 3,152,079 | - | - |
Total Investments in Securities: | $ 66,732,629 | $ 65,935,678 | $ 796,951 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $2,978,434 all of which will expire in fiscal 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,798,998) - See accompanying schedule: Unaffiliated issuers (cost $56,611,244) | $ 63,580,550 |
|
Fidelity Central Funds (cost $3,152,079) | 3,152,079 |
|
Total Investments (cost $59,763,323) |
| $ 66,732,629 |
Receivable for investments sold | 1,474,711 | |
Receivable for fund shares sold | 182,785 | |
Dividends receivable | 25,546 | |
Distributions receivable from Fidelity Central Funds | 630 | |
Prepaid expenses | 119 | |
Other receivables | 3,048 | |
Total assets | 68,419,468 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 797,710 | |
Payable for fund shares redeemed | 519,881 | |
Accrued management fee | 33,382 | |
Distribution and service plan fees payable | 25,309 | |
Other affiliated payables | 15,759 | |
Other payables and accrued expenses | 38,315 | |
Collateral on securities loaned, at value | 2,829,006 | |
Total liabilities | 4,259,362 | |
|
| |
Net Assets | $ 64,160,106 | |
Net Assets consist of: |
| |
Paid in capital | $ 57,569,180 | |
Accumulated net investment loss | (104,574) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (267,853) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 6,963,353 | |
Net Assets | $ 64,160,106 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 15.37 | |
|
|
|
Maximum offering price per share (100/94.25 of $15.37) | $ 16.31 | |
Class T: | $ 14.84 | |
|
|
|
Maximum offering price per share (100/96.50 of $14.84) | $ 15.38 | |
Class B: | $ 13.72 | |
|
|
|
Class C: | $ 13.74 | |
|
|
|
|
|
|
Institutional Class: | $ 16.03 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 320,172 |
Interest |
| 2 |
Income from Fidelity Central Funds |
| 5,242 |
Total income |
| 325,416 |
|
|
|
Expenses | ||
Management fee | $ 151,843 | |
Transfer agent fees | 74,290 | |
Distribution and service plan fees | 125,894 | |
Accounting and security lending fees | 10,799 | |
Custodian fees and expenses | 15,373 | |
Independent trustees' compensation | 151 | |
Registration fees | 40,326 | |
Audit | 23,085 | |
Legal | 160 | |
Miscellaneous | 283 | |
Total expenses before reductions | 442,204 | |
Expense reductions | (12,214) | 429,990 |
Net investment income (loss) | (104,574) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $322) | 3,132,829 | |
Foreign currency transactions | 388 | |
Total net realized gain (loss) |
| 3,133,217 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $5,993) | 6,283,384 | |
Assets and liabilities in foreign currencies | 35 | |
Total change in net unrealized appreciation (depreciation) | 6,283,419 | |
Net gain (loss) | 9,416,636 | |
Net increase (decrease) in net assets resulting from operations | $ 9,312,062 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (104,574) | $ (139,360) |
Net realized gain (loss) | 3,133,217 | 6,027,146 |
Change in net unrealized appreciation (depreciation) | 6,283,419 | 1,905,033 |
Net increase (decrease) in net assets resulting from operations | 9,312,062 | 7,792,819 |
Distributions to shareholders from net investment income | - | (6,476) |
Share transactions - net increase (decrease) | 5,461,195 | 9,354,979 |
Redemption fees | 1,216 | 1,671 |
Total increase (decrease) in net assets | 14,774,473 | 17,142,993 |
|
|
|
Net Assets | ||
Beginning of period | 49,385,633 | 32,242,640 |
End of period (including accumulated net investment loss of $104,574 and undistributed net investment income of $0, respectively) | $ 64,160,106 | $ 49,385,633 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 | $ 16.62 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.01) | (.02) | .04 | .02 | .02 H | (.04) |
Net realized and unrealized gain (loss) | 2.63 | 2.51 | (1.16) | (3.09) | 1.83 | (.07) |
Total from investment operations | 2.62 | 2.49 | (1.12) | (3.07) | 1.85 | (.11) |
Distributions from net investment income | - | - | (.03) | - | (.05) | - |
Distributions from net realized gain | - | - | - | (1.41) | (2.30) | (.12) |
Total distributions | - | - | (.03) | (1.41) | (2.35) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 15.37 | $ 12.75 | $ 10.26 | $ 11.41 | $ 15.89 | $ 16.39 |
Total Return B, C, D | 20.55% | 24.27% | (9.81)% | (21.24)% | 11.67% | (.69)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.44% A | 1.44% | 1.62% | 1.40% | 1.42% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.39% | 1.40% | 1.40% | 1.39% | 1.39% |
Net investment income (loss) | (.19)% A | (.15)% | .42% | .15% | .11% H | (.23)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,932 | $ 19,423 | $ 13,010 | $ 11,899 | $ 19,708 | $ 16,935 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 | $ 16.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.05) | .01 | (.01) | (.02) H | (.07) |
Net realized and unrealized gain (loss) | 2.55 | 2.43 | (1.12) | (3.00) | 1.79 | (.07) |
Total from investment operations | 2.52 | 2.38 | (1.11) | (3.01) | 1.77 | (.14) |
Distributions from net investment income | - | - | (.02) | - | (.03) | - |
Distributions from net realized gain | - | - | - | (1.39) | (2.30) | (.12) |
Total distributions | - | - | (.02) | (1.39) | (2.33) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 14.84 | $ 12.32 | $ 9.94 | $ 11.07 | $ 15.47 | $ 16.03 |
Total Return B, C, D | 20.45% | 23.94% | (10.04)% | (21.41)% | 11.43% | (.89)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.70% A | 1.71% | 1.89% | 1.64% | 1.69% | 1.69% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.64% | 1.65% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.64% | 1.65% | 1.62% | 1.61% | 1.62% |
Net investment income (loss) | (.43)% A | (.40)% | .17% | (.08)% | (.10)% H | (.46)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,543 | $ 8,018 | $ 6,738 | $ 9,095 | $ 14,787 | $ 14,267 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 | $ 15.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.03) | (.07) | (.10) H | (.15) |
Net realized and unrealized gain (loss) | 2.36 | 2.26 | (1.06) | (2.81) | 1.70 | (.07) |
Total from investment operations | 2.30 | 2.16 | (1.09) | (2.88) | 1.60 | (.22) |
Distributions from net realized gain | - | - | - | (1.33) | (2.30) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.72 | $ 11.42 | $ 9.26 | $ 10.35 | $ 14.56 | $ 15.26 |
Total Return B, C, D | 20.14% | 23.33% | (10.53)% | (21.80)% | 10.82% | (1.45)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.19% A | 2.21% | 2.38% | 2.14% | 2.20% | 2.19% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.14% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.14% | 2.15% | 2.14% | 2.15% | 2.14% |
Net investment income (loss) | (.93)% A | (.90)% | (.33)% | (.60)% | (.64)% H | (.98)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,871 | $ 3,643 | $ 3,550 | $ 5,090 | $ 11,081 | $ 14,088 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 | $ 15.62 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) | (.10) | (.03) | (.07) | (.10) H | (.15) |
Net realized and unrealized gain (loss) | 2.36 | 2.27 | (1.07) | (2.81) | 1.71 | (.07) |
Total from investment operations | 2.30 | 2.17 | (1.10) | (2.88) | 1.61 | (.22) |
Distributions from net realized gain | - | - | - | (1.34) | (2.30) | (.12) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 13.74 | $ 11.44 | $ 9.27 | $ 10.37 | $ 14.59 | $ 15.28 |
Total Return B, C, D | 20.10% | 23.41% | (10.61)% | (21.77)% | 10.88% | (1.45)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 2.15% A | 2.12% | 2.38% | 2.15% | 2.16% | 2.12% |
Expenses net of fee waivers, if any | 2.15% A | 2.12% | 2.15% | 2.15% | 2.15% | 2.12% |
Expenses net of all reductions | 2.13% A | 2.11% | 2.15% | 2.14% | 2.15% | 2.12% |
Net investment income (loss) | (.93)% A | (.87)% | (.33)% | (.60)% | (.64)% H | (.95)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 16,150 | $ 9,288 | $ 2,955 | $ 3,430 | $ 8,051 | $ 7,160 |
Portfolio turnover rate G | 153% A | 163% | 99% | 63% | 164% | 81% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 | $ 17.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .02 | .06 | .06 | .06 G | - I |
Net realized and unrealized gain (loss) | 2.75 | 2.60 | (1.20) | (3.22) | 1.89 | (.07) |
Total from investment operations | 2.76 | 2.62 | (1.14) | (3.16) | 1.95 | (.07) |
Distributions from net investment income | - | (.01) | (.04) | - | (.06) | - |
Distributions from net realized gain | - | - | - | (1.41) | (2.30) | (.12) |
Total distributions | - | (.01) | (.04) | (1.41) | (2.36) | (.12) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 16.03 | $ 13.27 | $ 10.66 | $ 11.84 | $ 16.41 | $ 16.82 |
Total Return B, C | 20.80% | 24.62% | (9.59)% | (21.09)% | 12.04% | (.44)% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.07% A | 1.09% | 1.15% | 1.14% | 1.15% | 1.18% |
Expenses net of fee waivers, if any | 1.07% A | 1.09% | 1.15% | 1.14% | 1.15% | 1.15% |
Expenses net of all reductions | 1.06% A | 1.08% | 1.15% | 1.14% | 1.14% | 1.14% |
Net investment income (loss) | .14% A | .16% | .67% | .40% | .36% G | .02% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,665 | $ 9,013 | $ 5,990 | $ 398 | $ 1,385 | $ 1,144 |
Portfolio turnover rate F | 153% A | 163% | 99% | 63% | 164% | 81% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on realized short term capital gains on securities of certain issuers domiciled in India. An estimated deferred tax liability for net unrealized gains on these securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 7,968,597 |
Gross unrealized depreciation | (1,279,851) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,688,746 |
| |
Tax cost | $ 60,043,883 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,382,110 and $41,145,991, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 26,965 | $ 118 |
Class T | .25% | .25% | 23,211 | - |
Class B | .75% | .25% | 19,231 | 14,423 |
Class C | .75% | .25% | 56,487 | 6,934 |
|
|
| $ 125,894 | $ 21,475 |
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% 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 | $ 12,143 |
Class T | 4,052 |
Class B* | 2,456 |
Class C* | 434 |
| $ 19,085 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 32,060 | .30 |
Class T | 14,392 | .31 |
Class B | 5,803 | .30 |
Class C | 14,356 | .25 |
Institutional Class | 7,679 | .18 |
| $ 74,290 |
|
* 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 $1,958 for the period.
Semiannual Report
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $93 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,549. During the period, there were no securities loaned to FCM.
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% | $ 3,956 |
Class T | 1.65% | 2,379 |
Class B | 2.15% | 847 |
|
| $ 7,182 |
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 $5,032 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 |
|
|
Institutional Class | $ - | $ 6,476 |
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, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 418,946 | 790,157 | $ 6,166,452 | $ 9,916,430 |
Shares redeemed | (385,297) | (535,046) | (5,398,504) | (6,621,987) |
Net increase (decrease) | 33,649 | 255,111 | $ 767,948 | $ 3,294,443 |
Class T |
|
|
|
|
Shares sold | 147,307 | 124,293 | $ 2,144,996 | $ 1,532,286 |
Shares redeemed | (87,438) | (151,532) | (1,245,949) | (1,774,930) |
Net increase (decrease) | 59,869 | (27,239) | $ 899,047 | $ (242,644) |
Class B |
|
|
|
|
Shares sold | 39,461 | 84,992 | $ 498,530 | $ 960,028 |
Shares redeemed | (76,265) | (149,463) | (958,943) | (1,626,686) |
Net increase (decrease) | (36,804) | (64,471) | $ (460,413) | $ (666,658) |
Class C |
|
|
|
|
Shares sold | 512,946 | 651,335 | $ 7,022,340 | $ 6,961,979 |
Shares redeemed | (149,633) | (158,268) | (1,947,404) | (1,769,753) |
Net increase (decrease) | 363,313 | 493,067 | $ 5,074,936 | $ 5,192,226 |
Institutional Class |
|
|
|
|
Shares sold | 196,033 | 718,370 | $ 3,076,446 | $ 9,586,550 |
Reinvestment of distributions | - | 555 | - | 6,322 |
Shares redeemed | (271,916) | (601,861) | (3,896,769) | (7,815,260) |
Net increase (decrease) | (75,883) | 117,064 | $ (820,323) | $ 1,777,612 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,348.70 | $ 8.29 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,347.10 | $ 9.76 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.89 | $ 8.39 |
Class B | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,343.80 | $ 12.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Class C | 2.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,344.30 | $ 12.70 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.37 | $ 10.92 |
Institutional Class | 1.15% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,350.60 | $ 6.81 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.41 | $ 5.85 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Electronics Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Intel Corp. | 11.3 | 18.0 |
Marvell Technology Group Ltd. | 8.7 | 7.6 |
Broadcom Corp. Class A | 5.2 | 2.8 |
National Semiconductor Corp. | 4.9 | 1.5 |
Micron Technology, Inc. | 4.8 | 4.5 |
Amkor Technology, Inc. | 3.9 | 3.8 |
Avago Technologies Ltd. | 3.8 | 3.0 |
Applied Materials, Inc. | 3.8 | 5.2 |
Advanced Micro Devices, Inc. | 3.8 | 4.3 |
NVIDIA Corp. | 3.7 | 2.0 |
| 53.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Semiconductors & Semiconductor Equipment | 81.8% |
|
| Electronic Equipment & Components | 6.3% |
|
| Communications Equipment | 3.9% |
|
| Computers & Peripherals | 1.7% |
|
| Internet Software & Services | 0.3% |
|
| All Others* | 6.0% |
|
As of July 31, 2010 | |||
| Semiconductors & Semiconductor Equipment | 89.6% |
|
| Electronic Equipment & Components | 4.3% |
|
| Communications Equipment | 3.7% |
|
| Computers & Peripherals | 1.5% |
|
| Internet Software & Services | 0.3% |
|
| All Others* | 0.6% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Electronics Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.3% | |||
Shares | Value | ||
COMMUNICATIONS EQUIPMENT - 3.9% | |||
Communications Equipment - 3.9% | |||
Brocade Communications Systems, Inc. (a) | 6,255 | $ 35,278 | |
Cisco Systems, Inc. (a) | 8,500 | 179,775 | |
Motorola Mobility Holdings, Inc. | 2,218 | 61,816 | |
Motorola Solutions, Inc. | 21 | 814 | |
Nokia Corp. sponsored ADR | 5,040 | 53,928 | |
QUALCOMM, Inc. | 9,977 | 540,055 | |
| 871,666 | ||
COMPUTERS & PERIPHERALS - 1.7% | |||
Computer Hardware - 0.0% | |||
Hewlett-Packard Co. | 100 | 4,569 | |
Computer Storage & Peripherals - 1.7% | |||
Gemalto NV | 408 | 20,630 | |
SanDisk Corp. (a) | 620 | 28,129 | |
Seagate Technology (a) | 8,513 | 119,182 | |
Synaptics, Inc. (a) | 2,900 | 82,534 | |
Western Digital Corp. (a) | 3,810 | 129,616 | |
| 380,091 | ||
TOTAL COMPUTERS & PERIPHERALS | 384,660 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 6.3% | |||
Electronic Components - 0.8% | |||
Aeroflex Holding Corp. | 1,900 | 29,811 | |
Amphenol Corp. Class A | 100 | 5,534 | |
Corning, Inc. | 4,168 | 92,571 | |
Universal Display Corp. (a) | 1,400 | 47,376 | |
| 175,292 | ||
Electronic Equipment & Instruments - 0.0% | |||
Hitachi High-Technologies Corp. | 100 | 2,471 | |
SNU Precision Co. Ltd. | 178 | 3,282 | |
| 5,753 | ||
Electronic Manufacturing Services - 5.5% | |||
Benchmark Electronics, Inc. (a) | 6,065 | 115,174 | |
Flextronics International Ltd. (a) | 48,021 | 383,688 | |
Jabil Circuit, Inc. | 16,588 | 335,243 | |
Multi-Fineline Electronix, Inc. (a) | 1,300 | 37,570 | |
Plexus Corp. (a) | 2,943 | 79,579 | |
SMART Modular Technologies (WWH), Inc. (a) | 17,409 | 117,685 | |
Tyco Electronics Ltd. | 2,000 | 72,460 | |
Viasystems Group, Inc. (a) | 5,090 | 102,971 | |
| 1,244,370 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 1,425,415 | ||
| |||
Shares | Value | ||
INTERNET SOFTWARE & SERVICES - 0.3% | |||
Internet Software & Services - 0.3% | |||
Google, Inc. Class A (a) | 100 | $ 60,036 | |
Support.com, Inc. (a) | 200 | 1,108 | |
| 61,144 | ||
IT SERVICES - 0.2% | |||
IT Consulting & Other Services - 0.2% | |||
BCD Semiconductor Manufacturing Ltd. ADR (a) | 3,300 | 33,891 | |
LEISURE EQUIPMENT & PRODUCTS - 0.1% | |||
Photographic Products - 0.1% | |||
Eastman Kodak Co. (a) | 6,300 | 23,058 | |
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 - 81.8% | |||
Semiconductor Equipment - 13.8% | |||
Advanced Energy Industries, Inc. (a) | 5 | 77 | |
Amkor Technology, Inc. (a)(d) | 107,137 | 872,095 | |
Applied Materials, Inc. | 54,300 | 851,967 | |
ASM International NV unit (a) | 1,100 | 40,029 | |
ASML Holding NV | 2,870 | 120,569 | |
Brooks Automation, Inc. (a) | 400 | 4,696 | |
Cabot Microelectronics Corp. (a) | 50 | 2,256 | |
Cymer, Inc. (a) | 340 | 16,521 | |
Entegris, Inc. (a) | 8,291 | 63,426 | |
KLA-Tencor Corp. | 2,330 | 102,706 | |
Lam Research Corp. (a) | 9,720 | 484,931 | |
MEMC Electronic Materials, Inc. (a) | 11,942 | 132,437 | |
Nanometrics, Inc. (a) | 400 | 6,848 | |
Nova Measuring Instruments Ltd. (a) | 200 | 1,800 | |
Novellus Systems, Inc. (a) | 1,200 | 43,284 | |
Teradyne, Inc. (a) | 800 | 13,344 | |
Tessera Technologies, Inc. (a) | 2,600 | 45,032 | |
Ultratech, Inc. (a) | 200 | 4,507 | |
Ulvac, Inc. | 100 | 2,566 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 6,603 | 293,503 | |
Verigy Ltd. (a) | 600 | 8,004 | |
| 3,110,598 | ||
Semiconductors - 68.0% | |||
Advanced Micro Devices, Inc. (a) | 108,784 | 851,779 | |
Alpha & Omega Semiconductor Ltd. (a) | 8,013 | 113,304 | |
Altera Corp. | 500 | 18,785 | |
Analog Devices, Inc. | 2,900 | 112,607 | |
Applied Micro Circuits Corp. (a) | 9,604 | 94,503 | |
Atheros Communications, Inc. (a) | 828 | 36,921 | |
Avago Technologies Ltd. | 29,884 | 857,970 | |
Broadcom Corp. Class A | 26,038 | 1,174,053 | |
Cree, Inc. (a)(d) | 1,400 | 70,686 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
CSR PLC (a) | 8,992 | $ 55,549 | |
Cypress Semiconductor Corp. (a) | 700 | 15,155 | |
Duksan Hi-Metal Co. Ltd. (a) | 142 | 2,733 | |
Exar Corp. (a) | 200 | 1,284 | |
Fairchild Semiconductor International, Inc. (a) | 29,430 | 523,854 | |
First Solar, Inc. (a) | 258 | 39,882 | |
Himax Technologies, Inc. sponsored ADR | 18,838 | 47,472 | |
Ikanos Communications, Inc. (a) | 17,400 | 20,880 | |
Inphi Corp. | 800 | 15,144 | |
Integrated Device Technology, Inc. (a) | 15,063 | 96,102 | |
Intel Corp. | 118,664 | 2,546,525 | |
International Rectifier Corp. (a) | 6,200 | 198,586 | |
Intersil Corp. Class A | 36,819 | 556,703 | |
Linear Technology Corp. | 30 | 1,044 | |
LSI Corp. (a) | 49,542 | 306,665 | |
Marvell Technology Group Ltd. (a) | 103,259 | 1,962,954 | |
Maxim Integrated Products, Inc. | 1,700 | 43,894 | |
Micron Technology, Inc. (a) | 102,820 | 1,083,723 | |
Monolithic Power Systems, Inc. (a) | 11,852 | 173,869 | |
Motech Industries, Inc. | 1 | 4 | |
National Semiconductor Corp. | 72,365 | 1,097,053 | |
NVIDIA Corp. (a) | 34,368 | 822,083 | |
NXP Semiconductors NV | 14,412 | 370,965 | |
ON Semiconductor Corp. (a) | 49,066 | 542,179 | |
PMC-Sierra, Inc. (a) | 25,836 | 202,038 | |
RDA Microelectronics, Inc. sponsored ADR | 3,700 | 49,728 | |
Rensas Electronics Corp. (a) | 5,400 | 57,895 | |
Semtech Corp. (a) | 1,016 | 22,184 | |
Skyworks Solutions, Inc. (a) | 906 | 28,784 | |
Standard Microsystems Corp. (a) | 1,394 | 33,526 | |
STMicroelectronics NV (NY Shares) unit | 3,900 | 47,268 | |
SunPower Corp. Class B (a) | 6,390 | 84,348 | |
Supertex, Inc. (a) | 2,521 | 57,756 | |
Texas Instruments, Inc. | 11,282 | 382,573 | |
TriQuint Semiconductor, Inc. (a) | 100 | 1,316 | |
| |||
Shares | Value | ||
Volterra Semiconductor Corp. (a) | 2,900 | $ 72,065 | |
Xilinx, Inc. | 11,617 | 374,067 | |
| 15,268,458 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 18,379,056 | ||
TOTAL COMMON STOCKS (Cost $19,698,106) | 21,178,891 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.0% | ||||
Semiconductors - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 10,000 | 9,488 | ||
Money Market Funds - 7.5% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 1,320,839 | 1,320,839 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 365,500 | 365,500 | |
TOTAL MONEY MARKET FUNDS (Cost $1,686,339) | 1,686,339 | ||
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $21,394,445) | 22,874,718 | |
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (406,314) | |
NET ASSETS - 100% | $ 22,468,404 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 284 |
Fidelity Securities Lending Cash Central Fund | 709 |
Total | $ 993 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 21,178,891 | $ 21,178,890 | $ - | $ 1 |
Convertible Bonds | 9,488 | - | 9,488 | - |
Money Market Funds | 1,686,339 | 1,686,339 | - | - |
Total Investments in Securities: | $ 22,874,718 | $ 22,865,229 | $ 9,488 | $ 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 | $ 1 |
Total Realized Gain (Loss) | - |
Total Unrealized Gain (Loss) | - |
Cost of Purchases | - |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 1 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.0% |
Bermuda | 9.2% |
Singapore | 5.5% |
Netherlands | 2.7% |
Cayman Islands | 1.1% |
Others (Individually Less Than 1%) | 1.5% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $12,180,956 of which $4,122,383, $2,265,871, $279,201, $310,663 and $5,202,838 will expire in fiscal 2011, 2012, 2013, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Electronics Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $359,810) - See accompanying schedule: Unaffiliated issuers (cost $19,708,106) | $ 21,188,379 |
|
Fidelity Central Funds (cost $1,686,339) | 1,686,339 |
|
Total Investments (cost $21,394,445) |
| $ 22,874,718 |
Cash | 1 | |
Receivable for investments sold | 270,986 | |
Receivable for fund shares sold | 351,808 | |
Dividends receivable | 1,441 | |
Interest receivable | 139 | |
Distributions receivable from Fidelity Central Funds | 221 | |
Prepaid expenses | 38 | |
Receivable from investment adviser for expense reductions | 4,229 | |
Other receivables | 465 | |
Total assets | 23,504,046 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 591,553 | |
Payable for fund shares redeemed | 27,218 | |
Accrued management fee | 9,430 | |
Distribution and service plan fees payable | 8,374 | |
Other affiliated payables | 4,985 | |
Other payables and accrued expenses | 28,582 | |
Collateral on securities loaned, at value | 365,500 | |
Total liabilities | 1,035,642 | |
|
| |
Net Assets | $ 22,468,404 | |
Net Assets consist of: |
| |
Paid in capital | $ 32,722,134 | |
Accumulated net investment loss | (58,396) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,675,607) | |
Net unrealized appreciation (depreciation) on investments | 1,480,273 | |
Net Assets | $ 22,468,404 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 9.63 | |
|
|
|
Maximum offering price per share (100/94.25 of $9.63) | $ 10.22 | |
Class T: | $ 9.43 | |
|
|
|
Maximum offering price per share (100/96.50 of $9.43) | $ 9.77 | |
Class B: | $ 8.99 | |
|
|
|
Class C: | $ 8.98 | |
|
|
|
Institutional Class: | $ 9.90 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 70,840 |
Interest |
| 252 |
Income from Fidelity Central Funds |
| 993 |
Total income |
| 72,085 |
|
|
|
Expenses | ||
Management fee | $ 43,849 | |
Transfer agent fees | 24,320 | |
Distribution and service plan fees | 40,982 | |
Accounting and security lending fees | 3,120 | |
Custodian fees and expenses | 22,163 | |
Independent trustees' compensation | 42 | |
Registration fees | 47,865 | |
Audit | 23,284 | |
Legal | 81 | |
Miscellaneous | 77 | |
Total expenses before reductions | 205,783 | |
Expense reductions | (75,990) | 129,793 |
Net investment income (loss) | (57,708) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 906,171 | |
Foreign currency transactions | 245 | |
Total net realized gain (loss) |
| 906,416 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 3,922,870 | |
Assets and liabilities in foreign currencies | (23) | |
Total change in net unrealized appreciation (depreciation) | 3,922,847 | |
Net gain (loss) | 4,829,263 | |
Net increase (decrease) in net assets resulting from operations | $ 4,771,555 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (57,708) | $ (69,345) |
Net realized gain (loss) | 906,416 | 2,767,217 |
Change in net unrealized appreciation (depreciation) | 3,922,847 | (1,525,207) |
Net increase (decrease) in net assets resulting from operations | 4,771,555 | 1,172,665 |
Distributions to shareholders from net investment income | - | (30,683) |
Share transactions - net increase (decrease) | 3,466,235 | (1,121,329) |
Redemption fees | 156 | 1,611 |
Total increase (decrease) in net assets | 8,237,946 | 22,264 |
|
|
|
Net Assets | ||
Beginning of period | 14,230,458 | 14,208,194 |
End of period (including accumulated net investment loss of $58,396 and accumulated net investment loss of $688, respectively) | $ 22,468,404 | $ 14,230,458 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 | $ 8.04 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.01) | .04 | - I | (.03) | (.04) |
Net realized and unrealized gain (loss) | 2.51 | .59 | (.24) | (2.32) | 1.76 | (.62) |
Total from investment operations | 2.49 | .58 | (.20) | (2.32) | 1.73 | (.66) |
Distributions from net investment income | - | (.03) | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.63 | $ 7.14 | $ 6.59 | $ 6.79 | $ 9.11 | $ 7.38 |
Total Return B, C, D | 34.87% | 8.74% | (2.95)% | (25.47)% | 23.44% | (8.21)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.32% A | 1.97% | 2.44% | 1.72% | 1.60% | 1.50% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
Expenses net of all reductions | 1.38% A | 1.39% | 1.40% | 1.39% | 1.38% | 1.36% |
Net investment income (loss) | (.46)% A | (.15)% | .69% | (.02)% | (.35)% | (.52)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,200 | $ 5,394 | $ 5,433 | $ 3,970 | $ 7,551 | $ 7,916 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 | $ 7.96 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) | (.03) | .02 | (.02) | (.05) | (.06) |
Net realized and unrealized gain (loss) | 2.46 | .58 | (.23) | (2.29) | 1.74 | (.61) |
Total from investment operations | 2.43 | .55 | (.21) | (2.31) | 1.69 | (.67) |
Distributions from net investment income | - | (.01) | - | - | - | - |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 9.43 | $ 7.00 | $ 6.46 | $ 6.67 | $ 8.98 | $ 7.29 |
Total Return B, C, D | 34.71% | 8.50% | (3.15)% | (25.72)% | 23.18% | (8.42)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.65% A | 2.26% | 2.77% | 2.02% | 1.89% | 1.82% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Expenses net of all reductions | 1.63% A | 1.64% | 1.65% | 1.64% | 1.64% | 1.61% |
Net investment income (loss) | (.71)% A | (.40)% | .44% | (.27)% | (.60)% | (.77)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,409 | $ 3,862 | $ 4,195 | $ 4,635 | $ 8,103 | $ 9,048 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 | $ 7.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.06) | - I | (.06) | (.09) | (.10) |
Net realized and unrealized gain (loss) | 2.34 | .56 | (.24) | (2.21) | 1.69 | (.58) |
Total from investment operations | 2.30 | .50 | (.24) | (2.27) | 1.60 | (.68) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.99 | $ 6.69 | $ 6.19 | $ 6.43 | $ 8.70 | $ 7.10 |
Total Return B, C, D | 34.38% | 8.08% | (3.73)% | (26.09)% | 22.54% | (8.74)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 3.12% A | 2.73% | 3.22% | 2.48% | 2.36% | 2.29% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.15% | 2.15% | 2.14% | 2.13% | 2.11% |
Net investment income (loss) | (1.21)% A | (.90)% | (.06)% | (.77)% | (1.10)% | (1.27)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,064 | $ 1,073 | $ 1,197 | $ 2,027 | $ 4,572 | $ 6,123 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 | $ 7.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.06) | - I | (.06) | (.09) | (.10) |
Net realized and unrealized gain (loss) | 2.35 | .56 | (.24) | (2.21) | 1.69 | (.58) |
Total from investment operations | 2.30 | .50 | (.24) | (2.27) | 1.60 | (.68) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 8.98 | $ 6.68 | $ 6.18 | $ 6.42 | $ 8.69 | $ 7.09 |
Total Return B, C, D | 34.43% | 8.09% | (3.74)% | (26.12)% | 22.57% | (8.75)% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 3.10% A | 2.72% | 3.21% | 2.47% | 2.34% | 2.26% |
Expenses net of fee waivers, if any | 2.15% A | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
Expenses net of all reductions | 2.13% A | 2.14% | 2.15% | 2.14% | 2.13% | 2.11% |
Net investment income (loss) | (1.21)% A | (.90)% | (.06)% | (.77)% | (1.10)% | (1.27)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,543 | $ 3,256 | $ 3,016 | $ 3,325 | $ 8,389 | $ 7,009 |
Portfolio turnover rate G | 112% A | 87% | 92% | 93% | 97% | 95% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 | $ 8.15 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.01) | .01 | .05 | .02 | (.01) | (.02) |
Net realized and unrealized gain (loss) | 2.58 | .60 | (.24) | (2.38) | 1.80 | (.62) |
Total from investment operations | 2.57 | .61 | (.19) | (2.36) | 1.79 | (.64) |
Distributions from net investment income | - | (.03) | - | - | - | - |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 9.90 | $ 7.33 | $ 6.75 | $ 6.94 | $ 9.30 | $ 7.51 |
Total Return B, C | 35.06% | 9.10% | (2.74)% | (25.38)% | 23.83% | (7.85)% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 2.08% A | 1.64% | 2.16% | 1.47% | 1.26% | 1.11% |
Expenses net of fee waivers, if any | 1.15% A | 1.15% | 1.15% | 1.15% | 1.15% | 1.11% |
Expenses net of all reductions | 1.13% A | 1.14% | 1.15% | 1.14% | 1.13% | 1.07% |
Net investment income (loss) | (.21)% A | .11% | .94% | .23% | (.10)% | (.23)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,252 | $ 645 | $ 367 | $ 353 | $ 730 | $ 750 |
Portfolio turnover rate F | 112% A | 87% | 92% | 93% | 97% | 95% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 2,942,157 |
Gross unrealized depreciation | (1,788,054) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,154,103 |
Tax cost | $ 21,720,615 |
Semiannual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $10,991,934 and $8,769,182, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 7,989 | $ 126 |
Class T | .25% | .25% | 10,430 | - |
Class B | .75% | .25% | 4,990 | 3,742 |
Class C | .75% | .25% | 17,573 | 2,286 |
|
|
| $ 40,982 | $ 6,154 |
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% 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 | $ 3,883 |
Class T | 1,418 |
Class B* | 1,083 |
Class C* | 298 |
| $ 6,682 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 9,313 | .29 |
Class T | 7,268 | .35 |
Class B | 1,530 | .31 |
Class C | 5,292 | .30 |
Institutional Class | 917 | .29 |
| $ 24,320 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 $1,541 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $27 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $709. During the period, there were no securities loaned to FCM.
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% | $ 29,476 |
Class T | 1.65% | 20,879 |
Class B | 2.15% | 4,871 |
Class C | 2.15% | 16,838 |
Institutional Class | 1.15% | 2,958 |
|
| $ 75,022 |
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 $968 for the period.
Semiannual Report
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 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 459,821 | 463,925 | $ 4,099,779 | $ 3,450,517 |
Reinvestment of distributions | - | 3,053 | - | 21,642 |
Shares redeemed | (156,610) | (536,272) | (1,253,895) | (3,911,247) |
Net increase (decrease) | 303,211 | (69,294) | $ 2,845,884 | $ (439,088) |
Class T |
|
|
|
|
Shares sold | 127,234 | 149,748 | $ 1,080,799 | $ 1,082,460 |
Reinvestment of distributions | - | 793 | - | 5,519 |
Shares redeemed | (105,545) | (248,392) | (806,711) | (1,826,132) |
Net increase (decrease) | 21,689 | (97,851) | $ 274,088 | $ (738,153) |
Class B |
|
|
|
|
Shares sold | 11,347 | 71,160 | $ 93,718 | $ 500,056 |
Shares redeemed | (53,505) | (103,890) | (398,979) | (717,856) |
Net increase (decrease) | (42,158) | (32,730) | $ (305,261) | $ (217,800) |
Class C |
|
|
|
|
Shares sold | 98,620 | 184,365 | $ 831,306 | $ 1,261,735 |
Shares redeemed | (80,076) | (184,552) | (599,704) | (1,259,598) |
Net increase (decrease) | 18,544 | (187) | $ 231,602 | $ 2,137 |
Institutional Class |
|
|
|
|
Shares sold | 67,404 | 94,039 | $ 654,731 | $ 728,440 |
Reinvestment of distributions | - | 194 | - | 1,410 |
Shares redeemed | (28,980) | (60,662) | (234,809) | (458,275) |
Net increase (decrease) | 38,424 | 33,571 | $ 419,922 | $ 271,575 |
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
Fidelity Advisor Energy 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.18% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,400.30 | $ 7.14 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.26 | $ 6.01 |
Class T | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,398.90 | $ 8.47 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class B | 1.93% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,395.10 | $ 11.65 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.48 | $ 9.80 |
Class C | 1.92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,395.00 | $ 11.59 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Institutional Class | .88% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,402.10 | $ 5.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.77 | $ 4.48 |
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
Fidelity Advisor Energy Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Exxon Mobil Corp. | 17.0 | 18.7 |
Schlumberger Ltd. | 6.3 | 5.1 |
Occidental Petroleum Corp. | 6.2 | 3.5 |
Marathon Oil Corp. | 4.5 | 4.9 |
Chevron Corp. | 4.4 | 10.2 |
Baker Hughes, Inc. | 4.3 | 4.2 |
National Oilwell Varco, Inc. | 4.2 | 2.5 |
Apache Corp. | 3.8 | 2.9 |
Halliburton Co. | 3.6 | 3.4 |
Massey Energy Co. | 2.8 | 1.6 |
| 57.1 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Oil, Gas & Consumable Fuels | 68.1% |
|
| Energy Equipment & Services | 27.9% |
|
| Chemicals | 1.4% |
|
| Construction & Engineering | 1.3% |
|
| Metals & Mining | 0.9% |
|
| All Others* | 0.4% |
|
As of July 31, 2010 | |||
| Oil, Gas & Consumable Fuels | 65.6% |
|
| Energy Equipment & Services | 30.6% |
|
| Construction & Engineering | 1.4% |
|
| Semiconductors & Semiconductor Equipment | 1.4% |
|
| Metals & Mining | 0.2% |
|
| All Others* | 0.8% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Energy Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.7% | |||
Shares | Value | ||
CHEMICALS - 1.4% | |||
Specialty Chemicals - 1.4% | |||
LyondellBasell Industries NV Class A (a) | 316,910 | $ 11,389,745 | |
CONSTRUCTION & ENGINEERING - 1.3% | |||
Construction & Engineering - 1.3% | |||
Foster Wheeler Ag (a) | 54,254 | 1,997,090 | |
Jacobs Engineering Group, Inc. (a) | 115,824 | 5,949,879 | |
KBR, Inc. | 75,683 | 2,429,424 | |
| 10,376,393 | ||
ENERGY EQUIPMENT & SERVICES - 27.9% | |||
Oil & Gas Drilling - 4.5% | |||
Ensco International Ltd. ADR | 275,840 | 14,989,146 | |
Noble Corp. | 62,427 | 2,387,833 | |
Northern Offshore Ltd. (a) | 405,087 | 999,046 | |
Ocean Rig UDW, Inc. (a) | 198,000 | 3,906,542 | |
Rowan Companies, Inc. (a) | 67,200 | 2,303,616 | |
Transocean Ltd. (a) | 143,343 | 11,457,406 | |
Tuscany International Drilling, Inc. (a) | 506,500 | 946,114 | |
| 36,989,703 | ||
Oil & Gas Equipment & Services - 23.4% | |||
Baker Hughes, Inc. | 511,069 | 35,013,337 | |
Dresser-Rand Group, Inc. (a) | 58,300 | 2,677,719 | |
Halliburton Co. | 649,711 | 29,236,995 | |
ION Geophysical Corp. (a) | 45,900 | 436,509 | |
National Oilwell Varco, Inc. | 463,795 | 34,274,451 | |
Oceaneering International, Inc. (a) | 185,700 | 14,341,611 | |
Oil States International, Inc. (a) | 83,250 | 5,641,020 | |
Schlumberger Ltd. | 570,982 | 50,811,688 | |
Schoeller-Bleckmann Oilfield Equipment AG | 22,338 | 1,834,843 | |
Superior Energy Services, Inc. (a) | 68,784 | 2,415,694 | |
TSC Offshore Group Ltd. (a) | 1,705,000 | 419,865 | |
Weatherford International Ltd. (a) | 451,279 | 10,704,338 | |
Willbros Group, Inc. (a) | 155,153 | 1,855,630 | |
| 189,663,700 | ||
TOTAL ENERGY EQUIPMENT & SERVICES | 226,653,403 | ||
GAS UTILITIES - 0.0% | |||
Gas Utilities - 0.0% | |||
China Gas Holdings Ltd. | 988,545 | 429,813 | |
MARINE - 0.1% | |||
Marine - 0.1% | |||
Kirby Corp. (a) | 17,900 | 836,646 | |
METALS & MINING - 0.9% | |||
Diversified Metals & Mining - 0.9% | |||
Grande Cache Coal Corp. (a) | 105,069 | 1,131,399 | |
| |||
Shares | Value | ||
MacArthur Coal Ltd. | 146,606 | $ 1,823,331 | |
Walter Energy, Inc. | 31,900 | 4,155,613 | |
| 7,110,343 | ||
OIL, GAS & CONSUMABLE FUELS - 68.1% | |||
Coal & Consumable Fuels - 6.8% | |||
Alpha Natural Resources, Inc. (a) | 330,464 | 17,755,831 | |
Massey Energy Co. | 361,987 | 22,754,503 | |
Peabody Energy Corp. | 228,460 | 14,488,933 | |
| 54,999,267 | ||
Integrated Oil & Gas - 35.9% | |||
Chevron Corp. | 374,155 | 35,518,534 | |
Exxon Mobil Corp. | 1,712,899 | 138,196,694 | |
Hess Corp. | 117,401 | 9,875,772 | |
Marathon Oil Corp. | 805,046 | 36,790,602 | |
Murphy Oil Corp. | 23,861 | 1,581,984 | |
OAO Gazprom sponsored ADR | 147,600 | 3,949,776 | |
Occidental Petroleum Corp. | 519,984 | 50,272,053 | |
Royal Dutch Shell PLC Class B ADR | 215,587 | 15,213,975 | |
| 291,399,390 | ||
Oil & Gas Exploration & Production - 15.8% | |||
Anadarko Petroleum Corp. | 200,559 | 15,459,088 | |
Apache Corp. | 257,039 | 30,680,175 | |
Bankers Petroleum Ltd. (a) | 278,700 | 2,321,804 | |
Brigham Exploration Co. (a) | 27,600 | 817,236 | |
Chesapeake Energy Corp. | 213,500 | 6,304,655 | |
Cimarex Energy Co. | 155,132 | 16,153,895 | |
Concho Resources, Inc. (a) | 8,664 | 833,910 | |
Discovery Offshore S.A. (a)(e) | 266,400 | 532,800 | |
Gran Tierra Energy, Inc. (a) | 300,100 | 2,694,935 | |
Newfield Exploration Co. (a) | 131,494 | 9,621,416 | |
Nexen, Inc. | 44,800 | 1,125,482 | |
Niko Resources Ltd. | 14,500 | 1,412,197 | |
Noble Energy, Inc. | 45,369 | 4,133,116 | |
Northern Oil & Gas, Inc. (a) | 10,000 | 275,700 | |
Pacific Rubiales Energy Corp. | 55,000 | 1,898,711 | |
Painted Pony Petroleum Ltd. Class A (a) | 123,500 | 1,295,325 | |
Petrobank Energy & Resources Ltd. (a) | 23,400 | 549,296 | |
Petroleum Development Corp. (a) | 4,842 | 220,359 | |
Petrominerales Ltd. | 39,272 | 1,531,494 | |
Pioneer Natural Resources Co. | 92,700 | 8,821,332 | |
Talisman Energy, Inc. | 158,000 | 3,620,537 | |
Toreador Resources Corp. (a)(d) | 25,700 | 408,116 | |
Vermilion Energy, Inc. | 8,100 | 383,194 | |
Whiting Petroleum Corp. (a) | 139,190 | 17,576,913 | |
| 128,671,686 | ||
Oil & Gas Refining & Marketing - 9.3% | |||
CVR Energy, Inc. (a) | 358,992 | 6,217,741 | |
Frontier Oil Corp. | 472,723 | 9,832,638 | |
Holly Corp. | 396,001 | 19,431,769 | |
Keyera Corp. | 10,300 | 363,705 | |
Petroplus Holdings AG | 67,010 | 1,097,966 | |
Sunoco, Inc. | 110,665 | 4,697,729 | |
Common Stocks - continued | |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - CONTINUED | |||
Oil & Gas Refining & Marketing - continued | |||
Tesoro Corp. (a) | 556,800 | $ 10,718,400 | |
Valero Energy Corp. | 597,563 | 15,154,198 | |
Western Refining, Inc. (a)(d) | 390,234 | 4,753,050 | |
World Fuel Services Corp. | 83,908 | 3,149,906 | |
| 75,417,102 | ||
Oil & Gas Storage & Transport - 0.3% | |||
El Paso Corp. | 137,400 | 2,181,912 | |
TOTAL OIL, GAS & CONSUMABLE FUELS | 552,669,357 | ||
TOTAL COMMON STOCKS (Cost $624,439,215) | 809,465,700 | ||
Convertible Bonds - 0.0% | ||||
| Principal Amount |
| ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.0% | ||||
Semiconductors - 0.0% | ||||
SunPower Corp. 4.75% 4/15/14 | $ 320,000 | 303,600 | ||
Money Market Funds - 1.3% | |||
|
|
|
|
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 5,871,813 | 5,871,813 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,699,800 | 4,699,800 | |
TOTAL MONEY MARKET FUNDS (Cost $10,571,613) | 10,571,613 | ||
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $635,330,828) | 820,340,913 | |
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (8,422,365) | |
NET ASSETS - 100% | $ 811,918,548 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $532,800 or 0.1% of net assets. |
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 | $ 3,395 |
Fidelity Securities Lending Cash Central Fund | 15,952 |
Total | $ 19,347 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 809,465,700 | $ 808,503,087 | $ 532,800 | $ 429,813 |
Convertible Bonds | 303,600 | - | 303,600 | - |
Money Market Funds | 10,571,613 | 10,571,613 | - | - |
Total Investments in Securities: | $ 820,340,913 | $ 819,074,700 | $ 836,400 | $ 429,813 |
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) | (83,535) |
Cost of Purchases | 513,348 |
Proceeds of Sales | - |
Amortization/Accretion | - |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 429,813 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (83,535) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 81.5% |
Netherlands Antilles | 6.3% |
United Kingdom | 3.7% |
Switzerland | 3.4% |
Canada | 2.0% |
Netherlands | 1.4% |
Others (Individually Less Than 1%) | 1.7% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $108,925,305 of which $106,222,894 and $2,702,411 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Energy Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,748,436) - See accompanying schedule: Unaffiliated issuers (cost $624,759,215) | $ 809,769,300 |
|
Fidelity Central Funds (cost $10,571,613) | 10,571,613 |
|
Total Investments (cost $635,330,828) |
| $ 820,340,913 |
Receivable for investments sold | 9,079,594 | |
Receivable for fund shares sold | 2,640,516 | |
Dividends receivable | 38,252 | |
Interest receivable | 4,433 | |
Distributions receivable from Fidelity Central Funds | 1,981 | |
Prepaid expenses | 1,542 | |
Other receivables | 8,326 | |
Total assets | 832,115,557 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 12,914,315 | |
Payable for fund shares redeemed | 1,691,633 | |
Accrued management fee | 355,805 | |
Distribution and service plan fees payable | 314,483 | |
Other affiliated payables | 187,436 | |
Other payables and accrued expenses | 33,537 | |
Collateral on securities loaned, at value | 4,699,800 | |
Total liabilities | 20,197,009 | |
|
| |
Net Assets | $ 811,918,548 | |
Net Assets consist of: |
| |
Paid in capital | $ 730,441,423 | |
Accumulated net investment loss | (703,375) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (102,827,514) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 185,008,014 | |
Net Assets | $ 811,918,548 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price | $ 38.67 | |
|
|
|
Maximum offering price per share (100/94.25 of $38.67) | $ 41.03 | |
Class T: | $ 39.55 | |
|
|
|
Maximum offering price per share (100/96.50 of $39.55) | $ 40.98 | |
Class B: | $ 36.34 | |
|
|
|
Class C: | $ 36.60 | |
|
|
|
Institutional Class: | $ 40.32 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,440,312 |
Interest |
| 7,639 |
Income from Fidelity Central Funds |
| 19,347 |
Total income |
| 5,467,298 |
|
|
|
Expenses | ||
Management fee | $ 1,838,589 | |
Transfer agent fees | 935,838 | |
Distribution and service plan fees | 1,635,606 | |
Accounting and security lending fees | 119,741 | |
Custodian fees and expenses | 22,101 | |
Independent trustees' compensation | 1,854 | |
Registration fees | 52,043 | |
Audit | 26,312 | |
Legal | 1,985 | |
Miscellaneous | 3,470 | |
Total expenses before reductions | 4,637,539 | |
Expense reductions | (9,955) | 4,627,584 |
Net investment income (loss) | 839,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 20,113,316 | |
Foreign currency transactions | 19,238 | |
Total net realized gain (loss) |
| 20,132,554 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 207,490,295 | |
Assets and liabilities in foreign currencies | (2,154) | |
Total change in net unrealized appreciation (depreciation) | 207,488,141 | |
Net gain (loss) | 227,620,695 | |
Net increase (decrease) in net assets resulting from operations | $ 228,460,409 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 839,714 | $ (2,588,877) |
Net realized gain (loss) | 20,132,554 | 85,218,986 |
Change in net unrealized appreciation (depreciation) | 207,488,141 | (40,712,055) |
Net increase (decrease) in net assets resulting from operations | 228,460,409 | 41,918,054 |
Distributions to shareholders from net investment income | (1,542,973) | - |
Share transactions - net increase (decrease) | (10,727,287) | (40,286,664) |
Redemption fees | 6,710 | 43,053 |
Total increase (decrease) in net assets | 216,196,859 | 1,674,443 |
|
|
|
Net Assets | ||
Beginning of period | 595,721,689 | 594,047,246 |
End of period (including accumulated net investment loss of $703,375 and accumulated net investment loss of $116, respectively) | $ 811,918,548 | $ 595,721,689 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 | $ 40.93 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .08 | (.05) | (.04) | (.17) | (.02) H | (.04) |
Net realized and unrealized gain (loss) | 11.00 | 1.93 | (17.48) | 5.59 | 8.42 | 12.30 |
Total from investment operations | 11.08 | 1.88 | (17.52) | 5.42 | 8.40 | 12.26 |
Distributions from net investment income | (.11) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.46) | (6.51) | (6.81) |
Total distributions | (.11) | - | (6.90) | (3.46) | (6.51) | (6.81) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 38.67 | $ 27.70 | $ 25.82 | $ 50.24 | $ 48.28 | $ 46.39 |
Total Return B, C, D | 40.03% | 7.28% | (38.86)% | 11.52% | 22.08% | 32.90% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.18% A | 1.20% | 1.22% | 1.14% | 1.19% | 1.21% |
Expenses net of fee waivers, if any | 1.18% A | 1.20% | 1.22% | 1.14% | 1.19% | 1.21% |
Expenses net of all reductions | 1.17% A | 1.19% | 1.21% | 1.14% | 1.19% | 1.17% |
Net investment income (loss) | .49% A | (.16)% | (.14)% | (.32)% | (.05)% H | (.09)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 299,223 | $ 214,407 | $ 216,595 | $ 355,200 | $ 268,108 | $ 204,391 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 | $ 41.46 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | (.11) | (.10) | (.29) | (.11) H | (.13) |
Net realized and unrealized gain (loss) | 11.25 | 1.97 | (17.93) | 5.72 | 8.61 | 12.49 |
Total from investment operations | 11.29 | 1.86 | (18.03) | 5.43 | 8.50 | 12.36 |
Distributions from net investment income | (.07) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.29) | (6.42) | (6.65) |
Total distributions | (.07) | - | (6.90) | (3.29) | (6.42) | (6.65) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 39.55 | $ 28.33 | $ 26.47 | $ 51.40 | $ 49.26 | $ 47.18 |
Total Return B, C, D | 39.89% | 7.03% | (38.99)% | 11.27% | 21.84% | 32.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.40% A | 1.41% | 1.45% | 1.36% | 1.40% | 1.42% |
Expenses net of fee waivers, if any | 1.40% A | 1.41% | 1.45% | 1.36% | 1.40% | 1.42% |
Expenses net of all reductions | 1.39% A | 1.41% | 1.45% | 1.35% | 1.39% | 1.38% |
Net investment income (loss) | .27% A | (.37)% | (.38)% | (.54)% | (.26)% H | (.29)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 291,897 | $ 219,051 | $ 224,376 | $ 407,784 | $ 382,222 | $ 362,272 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 | $ 39.89 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.25) | (.22) | (.56) | (.34) H | (.35) |
Net realized and unrealized gain (loss) | 10.33 | 1.83 | (16.75) | 5.41 | 8.17 | 11.98 |
Total from investment operations | 10.29 | 1.58 | (16.97) | 4.85 | 7.83 | 11.63 |
Distributions from net investment income | (.01) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.14) | (6.29) | (6.43) |
Total distributions | (.01) | - | (6.90) | (3.14) | (6.29) | (6.43) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 36.34 | $ 26.06 | $ 24.48 | $ 48.35 | $ 46.64 | $ 45.10 |
Total Return B, C, D | 39.51% | 6.45% | (39.31)% | 10.62% | 21.18% | 31.86% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.93% A | 1.96% | 1.96% | 1.93% | 1.96% | 1.96% |
Expenses net of fee waivers, if any | 1.93% A | 1.96% | 1.96% | 1.93% | 1.96% | 1.96% |
Expenses net of all reductions | 1.93% A | 1.95% | 1.96% | 1.93% | 1.95% | 1.92% |
Net investment income (loss) | (.27)% A | (.92)% | (.89)% | (1.11)% | (.82)% H | (.84)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 54,254 | $ 44,330 | $ 47,795 | $ 98,602 | $ 116,487 | $ 130,973 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 | $ 40.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.25) | (.21) | (.54) | (.32) H | (.34) |
Net realized and unrealized gain (loss) | 10.41 | 1.85 | (16.87) | 5.45 | 8.20 | 12.06 |
Total from investment operations | 10.37 | 1.60 | (17.08) | 4.91 | 7.88 | 11.72 |
Distributions from net investment income | (.02) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.16) | (6.33) | (6.50) |
Total distributions | (.02) | - | (6.90) | (3.16) | (6.33) | (6.50) |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | .01 |
Net asset value, end of period | $ 36.60 | $ 26.25 | $ 24.65 | $ 48.63 | $ 46.88 | $ 45.33 |
Total Return B, C, D | 39.50% | 6.49% | (39.31)% | 10.71% | 21.22% | 31.96% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.92% A | 1.94% | 1.96% | 1.87% | 1.91% | 1.92% |
Expenses net of fee waivers, if any | 1.92% A | 1.94% | 1.96% | 1.87% | 1.91% | 1.92% |
Expenses net of all reductions | 1.91% A | 1.93% | 1.95% | 1.87% | 1.91% | 1.88% |
Net investment income (loss) | (.25)% A | (.90)% | (.88)% | (1.05)% | (.77)% H | (.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 123,638 | $ 90,596 | $ 86,650 | $ 156,393 | $ 135,072 | $ 125,424 |
Portfolio turnover rate G | 91% A | 103% | 148% | 90% | 80% | 139% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 | $ 41.76 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .13 | .04 | .03 | (.02) | .11 G | .12 |
Net realized and unrealized gain (loss) | 11.46 | 2.00 | (18.06) | 5.74 | 8.67 | 12.56 |
Total from investment operations | 11.59 | 2.04 | (18.03) | 5.72 | 8.78 | 12.68 |
Distributions from net investment income | (.14) | - | - | - | - | - |
Distributions from net realized gain | - | - | (6.90) | (3.64) | (6.58) | (6.97) |
Total distributions | (.14) | - | (6.90) | (3.64) | (6.58) | (6.97) |
Redemption fees added to paid in capital D | - I | - I | - I | - I | - I | .01 |
Net asset value, end of period | $ 40.32 | $ 28.87 | $ 26.83 | $ 51.76 | $ 49.68 | $ 47.48 |
Total Return B, C | 40.21% | 7.60% | (38.68)% | 11.83% | 22.47% | 33.35% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .88% A | .90% | .95% | .85% | .88% | .87% |
Expenses net of fee waivers, if any | .88% A | .90% | .95% | .85% | .88% | .87% |
Expenses net of all reductions | .88% A | .90% | .94% | .85% | .88% | .83% |
Net investment income (loss) | .78% A | .14% | .13% | (.03)% | .25% G | .26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 42,907 | $ 27,338 | $ 18,631 | $ 22,250 | $ 17,127 | $ 19,553 |
Portfolio turnover rate F | 91% A | 103% | 148% | 90% | 80% | 139% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, deferred trustees compensation, net operating losses, capital loss carryforwards, and losses deferred due to washed sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 186,877,251 |
Gross unrealized depreciation | (10,279,187) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 176,598,064 |
| |
Tax cost | $ 643,742,849 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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 $296,206,183 and $306,329,075, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 298,132 | $ 3,885 |
Class T | .25% | .25% | 603,476 | - |
Class B | .75% | .25% | 235,426 | 176,569 |
Class C | .75% | .25% | 498,572 | 62,264 |
|
|
| $ 1,635,606 | $ 242,718 |
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% 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 | $ 50,600 |
Class T | 15,545 |
Class B* | 38,504 |
Class C* | 2,987 |
| $ 107,636 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 355,734 | .30 |
Class T | 324,528 | .27 |
Class B | 71,322 | .30 |
Class C | 143,813 | .29 |
Institutional Class | 40,441 | .25 |
| $ 935,838 |
|
* 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 $2,647 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $1,137 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $15,952. During the period, there were no securities loaned to FCM.
Semiannual Report
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 $9,955 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 788,159 | $ - |
Class T | 537,032 | - |
Class B | 21,298 | - |
Class C | 59,061 | - |
Institutional Class | 137,423 | - |
Total | $ 1,542,973 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,000,016 | 2,475,060 | $ 33,360,031 | $ 72,154,427 |
Reinvestment of distributions | 20,238 | - | 701,058 | - |
Shares redeemed | (1,023,017) | (3,122,404) | (31,651,141) | (89,993,205) |
Net increase (decrease) | (2,763) | (647,344) | $ 2,409,948 | $ (17,838,778) |
Class T |
|
|
|
|
Shares sold | 478,047 | 1,265,490 | $ 16,093,655 | $ 38,114,553 |
Reinvestment of distributions | 14,153 | - | 502,263 | - |
Shares redeemed | (843,240) | (2,010,804) | (26,793,936) | (59,843,042) |
Net increase (decrease) | (351,040) | (745,314) | $ (10,198,018) | $ (21,728,489) |
Class B |
|
|
|
|
Shares sold | 53,482 | 320,063 | $ 1,628,782 | $ 8,832,050 |
Reinvestment of distributions | 560 | - | 18,656 | - |
Shares redeemed | (262,154) | (571,409) | (7,731,897) | (15,635,733) |
Net increase (decrease) | (208,112) | (251,346) | $ (6,084,459) | $ (6,803,683) |
Class C |
|
|
|
|
Shares sold | 342,168 | 819,751 | $ 10,879,924 | $ 22,984,733 |
Reinvestment of distributions | 1,512 | - | 50,475 | - |
Shares redeemed | (417,213) | (883,306) | (12,198,114) | (24,290,742) |
Net increase (decrease) | (73,533) | (63,555) | $ (1,267,715) | $ (1,306,009) |
Institutional Class |
|
|
|
|
Shares sold | 263,505 | 669,423 | $ 9,177,399 | $ 20,180,428 |
Reinvestment of distributions | 3,300 | - | 119,041 | - |
Shares redeemed | (149,819) | (416,730) | (4,883,483) | (12,790,133) |
Net increase (decrease) | 116,986 | 252,693 | $ 4,412,957 | $ 7,390,295 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.27% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,069.60 | $ 6.62 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.80 | $ 6.46 |
Class T | 1.53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,067.80 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Class B | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,064.40 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Class C | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,065.00 | $ 10.51 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.02 | $ 10.26 |
Institutional Class | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,070.10 | $ 5.17 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.21 | $ 5.04 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Financial Services Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Comerica, Inc. | 11.3 | 1.5 |
Regions Financial Corp. | 6.0 | 5.3 |
Visa, Inc. Class A | 5.9 | 4.1 |
Citigroup, Inc. | 5.1 | 4.9 |
Morgan Stanley | 4.8 | 4.8 |
Zions Bancorporation | 4.7 | 5.1 |
Bank of America Corp. | 4.6 | 3.3 |
JPMorgan Chase & Co. | 4.5 | 4.9 |
Alliance Data Systems Corp. | 4.3 | 0.0 |
MasterCard, Inc. Class A | 4.2 | 4.3 |
| 55.4 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Commercial Banks | 35.9% |
|
| Capital Markets | 22.9% |
|
| Diversified Financial Services | 16.1% |
|
| IT Services | 15.0% |
|
| Consumer Finance | 3.4% |
|
| All Others* | 6.7% |
|
As of July 31, 2010 | |||
| Commercial Banks | 40.9% |
|
| Diversified Financial Services | 19.4% |
|
| Capital Markets | 18.4% |
|
| IT Services | 11.2% |
|
| Insurance | 4.6% |
|
| All Others* | 5.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Financial Services Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% | |||
Shares | Value | ||
CAPITAL MARKETS - 22.9% | |||
Asset Management & Custody Banks - 6.0% | |||
Bank of New York Mellon Corp. | 73,980 | $ 2,310,395 | |
Franklin Resources, Inc. | 45,621 | 5,504,174 | |
Invesco Ltd. | 33,600 | 831,264 | |
Legg Mason, Inc. | 18,553 | 614,661 | |
| 9,260,494 | ||
Investment Banking & Brokerage - 16.9% | |||
Charles Schwab Corp. | 88,600 | 1,599,230 | |
E*TRADE Financial Corp. (a) | 200,227 | 3,315,759 | |
Evercore Partners, Inc. Class A | 54,700 | 1,766,810 | |
GFI Group, Inc. | 433,378 | 2,218,895 | |
Goldman Sachs Group, Inc. | 38,594 | 6,314,750 | |
Jefferies Group, Inc. (d) | 44,109 | 1,103,166 | |
MF Global Holdings Ltd. (a) | 309,225 | 2,560,383 | |
Morgan Stanley | 251,875 | 7,405,125 | |
| 26,284,118 | ||
TOTAL CAPITAL MARKETS | 35,544,612 | ||
COMMERCIAL BANKS - 35.9% | |||
Diversified Banks - 11.9% | |||
Banco ABC Brasil SA | 83,000 | 671,964 | |
Banco Pine SA | 15,300 | 127,446 | |
Comerica, Inc. | 459,482 | 17,552,213 | |
| 18,351,623 | ||
Regional Banks - 24.0% | |||
Banco Daycoval SA (PN) | 81,800 | 600,930 | |
BancTrust Financial Group, Inc. (a)(d) | 28,700 | 80,073 | |
Bridge Capital Holdings (a) | 4,470 | 39,247 | |
Bridge Capital Holdings (a)(e) | 48,490 | 383,168 | |
CIT Group, Inc. (a) | 67,618 | 3,224,702 | |
CoBiz, Inc. (d) | 209,700 | 1,337,886 | |
First Horizon National Corp. | 151,802 | 1,719,917 | |
First Interstate Bancsystem, Inc. | 38,100 | 494,919 | |
Glacier Bancorp, Inc. | 99,117 | 1,398,541 | |
Huntington Bancshares, Inc. | 147,800 | 1,070,072 | |
Old National Bancorp, Indiana | 6,384 | 68,500 | |
Oriental Financial Group, Inc. | 2,334 | 27,588 | |
Regions Financial Corp. | 1,315,595 | 9,340,725 | |
Savannah Bancorp, Inc. | 5,416 | 40,512 | |
Sun Bancorp, Inc., New Jersey (a) | 1,307 | 5,411 | |
SunTrust Banks, Inc. | 34,000 | 1,034,620 | |
Susquehanna Bancshares, Inc., Pennsylvania | 159,714 | 1,526,866 | |
SVB Financial Group (a) | 23,812 | 1,249,416 | |
Synovus Financial Corp. (d) | 2,055,794 | 5,427,296 | |
United Security Bancshares, California (d) | 4,398 | 15,393 | |
Webster Financial Corp. | 29,600 | 677,248 | |
| |||
Shares | Value | ||
Western Alliance Bancorp. (a) | 21,400 | $ 160,500 | |
Zions Bancorporation | 308,234 | 7,268,158 | |
| 37,191,688 | ||
TOTAL COMMERCIAL BANKS | 55,543,311 | ||
CONSUMER FINANCE - 3.4% | |||
Consumer Finance - 3.4% | |||
Netspend Holdings, Inc. | 116,746 | 1,669,468 | |
SLM Corp. (a) | 247,306 | 3,563,679 | |
| 5,233,147 | ||
DIVERSIFIED FINANCIAL SERVICES - 16.1% | |||
Other Diversified Financial Services - 14.2% | |||
Bank of America Corp. | 521,120 | 7,154,978 | |
Citigroup, Inc. (a) | 1,615,299 | 7,785,741 | |
JPMorgan Chase & Co. | 155,705 | 6,997,383 | |
| 21,938,102 | ||
Specialized Finance - 1.9% | |||
Infrastructure Development Finance Co. Ltd. | 232,315 | 746,500 | |
PHH Corp. (a) | 94,743 | 2,263,410 | |
| 3,009,910 | ||
TOTAL DIVERSIFIED FINANCIAL SERVICES | 24,948,012 | ||
INSURANCE - 2.8% | |||
Multi-Line Insurance - 2.8% | |||
Fairfax Financial Holdings Ltd. (sub. vtg.) | 900 | 343,422 | |
Genworth Financial, Inc. Class A (a) | 297,535 | 4,037,550 | |
| 4,380,972 | ||
INTERNET SOFTWARE & SERVICES - 0.5% | |||
Internet Software & Services - 0.5% | |||
China Finance Online Co. Ltd. ADR (a) | 145,270 | 826,586 | |
IT SERVICES - 15.0% | |||
Data Processing & Outsourced Services - 15.0% | |||
Alliance Data Systems Corp. (a)(d) | 93,468 | 6,611,926 | |
MasterCard, Inc. Class A | 27,500 | 6,504,025 | |
MoneyGram International, Inc. (a) | 397,278 | 981,277 | |
Visa, Inc. Class A | 130,613 | 9,123,318 | |
| 23,220,546 | ||
SPECIALTY RETAIL - 0.2% | |||
Home Improvement Retail - 0.2% | |||
Home Depot, Inc. | 6,600 | 242,682 | |
THRIFTS & MORTGAGE FINANCE - 0.2% | |||
Thrifts & Mortgage Finance - 0.2% | |||
BofI Holding, Inc. (a) | 11,567 | 174,777 | |
Common Stocks - continued | |||
Shares | Value | ||
THRIFTS & MORTGAGE FINANCE - CONTINUED | |||
Thrifts & Mortgage Finance - continued | |||
Cheviot Financial Corp. | 16,255 | $ 145,320 | |
Mayflower Bancorp, Inc. | 2,455 | 21,972 | |
| 342,069 | ||
TOTAL COMMON STOCKS (Cost $144,667,786) | 150,281,937 | ||
Money Market Funds - 6.7% | |||
|
|
|
|
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 10,462,273 | 10,462,273 | |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $155,130,059) | 160,744,210 | |
NET OTHER ASSETS (LIABILITIES) - (3.7)% | (5,749,620) | |
NET ASSETS - 100% | $ 154,994,590 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $383,168 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Bridge Capital Holdings | 11/19/10 | $ 414,590 |
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 | $ 1,276 |
Fidelity Securities Lending Cash Central Fund | 17,054 |
Total | $ 18,330 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 150,281,937 | $ 149,898,769 | $ 383,168 | $ - |
Money Market Funds | 10,462,273 | 10,462,273 | - | - |
Total Investments in Securities: | $ 160,744,210 | $ 160,361,042 | $ 383,168 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $78,880,478 of which $55,672,202 and $23,208,276 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $9,609,877) - See accompanying schedule: Unaffiliated issuers (cost $144,667,786) | $ 150,281,937 |
|
Fidelity Central Funds (cost $10,462,273) | 10,462,273 |
|
Total Investments (cost $155,130,059) |
| $ 160,744,210 |
Receivable for investments sold | 8,412,528 | |
Receivable for fund shares sold | 132,946 | |
Dividends receivable | 37,746 | |
Distributions receivable from Fidelity Central Funds | 2,728 | |
Prepaid expenses | 382 | |
Other receivables | 14,389 | |
Total assets | 169,344,929 | |
|
|
|
Liabilities | ||
Payable to custodian bank | $ 2,247,905 | |
Payable for investments purchased | 1,123,265 | |
Payable for fund shares redeemed | 305,448 | |
Accrued management fee | 72,894 | |
Distribution and service plan fees payable | 63,718 | |
Other affiliated payables | 41,796 | |
Other payables and accrued expenses | 33,040 | |
Collateral on securities loaned, at value | 10,462,273 | |
Total liabilities | 14,350,339 | |
|
| |
Net Assets | $ 154,994,590 | |
Net Assets consist of: |
| |
Paid in capital | $ 233,268,047 | |
Accumulated net investment loss | (230,572) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (83,657,529) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 5,614,644 | |
Net Assets | $ 154,994,590 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.07 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.07) | $ 11.75 | |
Class T: | $ 11.02 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.02) | $ 11.42 | |
Class B: | $ 10.74 | |
|
|
|
Class C: | $ 10.65 | |
|
|
|
Institutional Class: | $ 11.29 | |
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
Fidelity Advisor Financial Services Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 826,995 |
Income from Fidelity Central Funds |
| 18,330 |
Total income |
| 845,325 |
|
|
|
Expenses | ||
Management fee | $ 404,982 | |
Transfer agent fees | 216,121 | |
Distribution and service plan fees | 359,573 | |
Accounting and security lending fees | 29,460 | |
Custodian fees and expenses | 19,572 | |
Independent trustees' compensation | 452 | |
Registration fees | 43,725 | |
Audit | 24,537 | |
Legal | 623 | |
Miscellaneous | 767 | |
Total expenses before reductions | 1,099,812 | |
Expense reductions | (23,915) | 1,075,897 |
Net investment income (loss) | (230,572) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers (net of foreign taxes of $437) | (544,040) | |
Foreign currency transactions | (31,268) | |
Total net realized gain (loss) |
| (575,308) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 10,275,611 | |
Assets and liabilities in foreign currencies | (487) | |
Total change in net unrealized appreciation (depreciation) | 10,275,124 | |
Net gain (loss) | 9,699,816 | |
Net increase (decrease) in net assets resulting from operations | $ 9,469,244 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (230,572) | $ (567,469) |
Net realized gain (loss) | (575,308) | 36,190,039 |
Change in net unrealized appreciation (depreciation) | 10,275,124 | (22,169,228) |
Net increase (decrease) in net assets resulting from operations | 9,469,244 | 13,453,342 |
Distributions to shareholders from net investment income | - | (1,313,190) |
Share transactions - net increase (decrease) | (4,465,342) | (11,450,926) |
Redemption fees | 3,326 | 4,230 |
Total increase (decrease) in net assets | 5,007,228 | 693,456 |
|
|
|
Net Assets | ||
Beginning of period | 149,987,362 | 149,293,906 |
End of period (including accumulated net investment loss of $230,572 and undistributed net investment income of $0, respectively) | $ 154,994,590 | $ 149,987,362 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 | $ 23.01 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | (.01) | .19 | .30 | .23 | .20 |
Net realized and unrealized gain (loss) | .72 | .93 | (3.58) | (6.41) | .92 | 2.02 |
Total from investment operations | .72 | .92 | (3.39) | (6.11) | 1.15 | 2.22 |
Distributions from net investment income | - | (.10) | (.24) | (.27) | (.22) | (.26) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.10) | (.26) | (1.73) | (3.47) J | (1.89) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.07 | $ 10.35 | $ 9.53 | $ 13.18 | $ 21.02 | $ 23.34 |
Total Return B, C, D | 6.96% | 9.61% | (25.87)% | (31.67)% | 4.54% | 10.32% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.27% A | 1.27% | 1.29% | 1.21% | 1.23% | 1.25% |
Expenses net of fee waivers, if any | 1.27% A | 1.27% | 1.29% | 1.21% | 1.23% | 1.25% |
Expenses net of all reductions | 1.24% A | 1.22% | 1.28% | 1.21% | 1.22% | 1.23% |
Net investment income (loss) | (.07)% A | (.09)% | 2.12% | 1.75% | 1.01% | .87% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 76,484 | $ 69,723 | $ 68,245 | $ 90,037 | $ 106,722 | $ 85,356 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 | $ 22.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | (.04) | .16 | .26 | .18 | .15 |
Net realized and unrealized gain (loss) | .72 | .92 | (3.56) | (6.41) | .91 | 2.02 |
Total from investment operations | .70 | .88 | (3.40) | (6.15) | 1.09 | 2.17 |
Distributions from net investment income | - | (.08) | (.20) | (.19) | (.16) | (.15) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.08) | (.22) | (1.65) | (3.41) J | (1.78) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 11.02 | $ 10.32 | $ 9.52 | $ 13.14 | $ 20.94 | $ 23.26 |
Total Return B, C, D | 6.78% | 9.26% | (26.00)% | (31.85)% | 4.25% | 10.11% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.53% A | 1.53% | 1.55% | 1.47% | 1.46% | 1.47% |
Expenses net of fee waivers, if any | 1.53% A | 1.53% | 1.55% | 1.47% | 1.46% | 1.47% |
Expenses net of all reductions | 1.50% A | 1.47% | 1.54% | 1.47% | 1.46% | 1.46% |
Net investment income (loss) | (.33)% A | (.35)% | 1.86% | 1.50% | .77% | .65% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 33,817 | $ 33,310 | $ 34,927 | $ 53,526 | $ 95,426 | $ 113,344 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 | $ 22.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.09) | .12 | .18 | .06 | .03 |
Net realized and unrealized gain (loss) | .69 | .91 | (3.50) | (6.29) | .89 | 1.97 |
Total from investment operations | .65 | .82 | (3.38) | (6.11) | .95 | 2.00 |
Distributions from net investment income | - | (.06) | (.12) | (.04) | (.02) | (.01) |
Distributions from net realized gain | - | - | (.02) | (1.44) | (3.25) | (1.57) |
Total distributions | - | (.06) | (.14) | (1.48) | (3.26) J | (1.58) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.74 | $ 10.09 | $ 9.33 | $ 12.85 | $ 20.44 | $ 22.75 |
Total Return B, C, D | 6.44% | 8.78% | (26.35)% | (32.21)% | 3.71% | 9.52% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.04% | 1.96% | 1.98% | 1.99% |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.04% | 1.96% | 1.98% | 1.99% |
Expenses net of all reductions | 1.99% A | 1.97% | 2.03% | 1.96% | 1.98% | 1.98% |
Net investment income (loss) | (.82)% A | (.85)% | 1.38% | 1.01% | .25% | .13% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 9,740 | $ 10,992 | $ 12,477 | $ 20,420 | $ 64,837 | $ 113,652 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 | $ 22.34 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.04) | (.09) | .12 | .17 | .06 | .04 |
Net realized and unrealized gain (loss) | .69 | .90 | (3.48) | (6.24) | .90 | 1.98 |
Total from investment operations | .65 | .81 | (3.36) | (6.07) | .96 | 2.02 |
Distributions from net investment income | - | (.06) | (.15) | (.09) | (.05) | (.02) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.60) |
Total distributions | - | (.06) | (.17) | (1.55) | (3.30) J | (1.62) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 10.65 | $ 10.00 | $ 9.25 | $ 12.78 | $ 20.40 | $ 22.74 |
Total Return B, C, D | 6.50% | 8.79% | (26.38)% | (32.18)% | 3.75% | 9.58% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.04% | 1.96% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.04% | 1.96% | 1.94% | 1.94% |
Expenses net of all reductions | 1.99% A | 1.96% | 2.03% | 1.96% | 1.94% | 1.93% |
Net investment income (loss) | (.82)% A | (.84)% | 1.37% | 1.01% | .29% | .18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 29,484 | $ 30,804 | $ 29,849 | $ 37,777 | $ 55,219 | $ 62,469 |
Portfolio turnover rate G | 213% A | 254% | 269% | 48% | 53% | 33% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 | $ 23.29 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .01 | .02 | .21 | .36 | .31 | .29 |
Net realized and unrealized gain (loss) | .73 | .95 | (3.63) | (6.51) | .93 | 2.05 |
Total from investment operations | .74 | .97 | (3.42) | (6.15) | 1.24 | 2.34 |
Distributions from net investment income | - | (.11) | (.25) | (.33) | (.30) | (.37) |
Distributions from net realized gain | - | - | (.02) | (1.46) | (3.25) | (1.63) |
Total distributions | - | (.11) | (.27) | (1.79) | (3.55) I | (2.00) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 11.29 | $ 10.55 | $ 9.69 | $ 13.38 | $ 21.32 | $ 23.63 |
Total Return B, C | 7.01% | 9.99% | (25.68)% | (31.47)% | 4.88% | 10.78% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .99% | 1.04% | .93% | .89% | .86% |
Expenses net of fee waivers, if any | .99% A | .99% | 1.04% | .93% | .89% | .86% |
Expenses net of all reductions | .96% A | .94% | 1.03% | .92% | .88% | .85% |
Net investment income (loss) | .21% A | .19% | 2.37% | 2.04% | 1.34% | 1.26% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,470 | $ 5,158 | $ 3,797 | $ 5,819 | $ 8,474 | $ 11,892 |
Portfolio turnover rate F | 213% A | 254% | 269% | 48% | 53% | 33% |
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.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE) normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, partnerships, 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 | $ 9,736,818 |
Gross unrealized depreciation | (8,412,810) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,324,008 |
| |
Tax cost | $ 159,420,202 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Semiannual Report
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 $151,200,484 and $160,967,485, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 87,261 | $ 7,326 |
Class T | .25% | .25% | 79,650 | - |
Class B | .75% | .25% | 49,632 | 37,224 |
Class C | .75% | .25% | 143,030 | 19,781 |
|
|
| $ 359,573 | $ 64,331 |
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% 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 | $ 14,003 |
Class T | 3,178 |
Class B* | 11,199 |
Class C* | 2,490 |
| $ 30,870 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financials intermediaries through which the sales are made
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of |
Class A | $ 103,726 | .30 |
Class T | 48,732 | .31 |
Class B | 14,790 | .30 |
Class C | 42,434 | .30 |
Institutional Class | 6,439 | .27 |
| $ 216,121 |
|
* 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 $9,673 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $261 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $17,054. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $23,915 for the period.
Semiannual Report
10. 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 |
Class T | - | 298,090 |
Class B | - | 78,308 |
Class C | - | 206,470 |
Institutional Class | - | 43,682 |
Total | $ - | $ 1,313,190 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,151,755 | 2,082,714 | $ 11,931,630 | $ 22,402,196 |
Reinvestment of distributions | - | 58,808 | - | 610,428 |
Shares redeemed | (976,163) | (2,567,565) | (10,032,895) | (27,335,650) |
Net increase (decrease) | 175,592 | (426,043) | $ 1,898,735 | $ (4,323,026) |
Class T |
|
|
|
|
Shares sold | 243,084 | 481,524 | $ 2,551,889 | $ 5,227,941 |
Reinvestment of distributions | - | 27,047 | - | 280,751 |
Shares redeemed | (401,820) | (952,462) | (4,098,650) | (10,134,806) |
Net increase (decrease) | (158,736) | (443,891) | $ (1,546,761) | $ (4,626,114) |
Class B |
|
|
|
|
Shares sold | 34,282 | 217,909 | $ 354,489 | $ 2,331,426 |
Reinvestment of distributions | - | 6,452 | - | 65,677 |
Shares redeemed | (217,385) | (472,669) | (2,163,349) | (4,904,869) |
Net increase (decrease) | (183,103) | (248,308) | $ (1,808,860) | $ (2,507,766) |
Class C |
|
|
|
|
Shares sold | 222,630 | 749,668 | $ 2,298,151 | $ 8,032,665 |
Reinvestment of distributions | - | 17,064 | - | 172,172 |
Shares redeemed | (534,977) | (913,840) | (5,303,255) | (9,328,999) |
Net increase (decrease) | (312,347) | (147,108) | $ (3,005,104) | $ (1,124,162) |
Institutional Class |
|
|
|
|
Shares sold | 157,223 | 278,977 | $ 1,694,132 | $ 3,114,760 |
Reinvestment of distributions | - | 3,007 | - | 31,721 |
Shares redeemed | (161,902) | (184,671) | (1,697,484) | (2,016,339) |
Net increase (decrease) | (4,679) | 97,313 | $ (3,352) | $ 1,130,142 |
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
Fidelity Advisor Health Care 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | $ 1,244.10 | $ 6.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,242.10 | $ 8.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.90 | $ 7.38 |
Class B | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,239.60 | $ 11.01 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Class C | 1.92% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.90 | $ 10.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.53 | $ 9.75 |
Institutional Class | .94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,245.30 | $ 5.32 |
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).
Semiannual Report
Fidelity Advisor Health Care Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Illumina, Inc. | 6.4 | 5.0 |
Medco Health Solutions, Inc. | 6.5 | 5.1 |
Covidien PLC | 4.9 | 3.5 |
McKesson Corp. | 4.3 | 2.2 |
Gilead Sciences, Inc. | 3.8 | 2.4 |
Merck & Co., Inc. | 3.5 | 5.0 |
Edwards Lifesciences Corp. | 3.3 | 2.0 |
Valeant Pharmaceuticals International, Inc. | 2.9 | 2.8 |
Amgen, Inc. | 2.5 | 2.0 |
Agilent Technologies, Inc. | 2.5 | 1.8 |
| 40.6 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Health Care Providers & Services | 22.5% |
|
| Biotechnology | 19.7% |
|
| Health Care Equipment & Supplies | 18.7% |
|
| Life Sciences Tools & Services | 16.3% |
|
| Pharmaceuticals | 15.3% |
|
| All Others* | 7.5% |
|
As of July 31, 2010 | |||
| Pharmaceuticals | 22.4% |
|
| Biotechnology | 21.4% |
|
| Health Care Providers & Services | 20.4% |
|
| Health Care Equipment & Supplies | 16.5% |
|
| Life Sciences Tools & Services | 10.5% |
|
| All Others* | 8.8% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Health Care Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value | ||
BIOTECHNOLOGY - 19.7% | |||
Biotechnology - 19.7% | |||
Acorda Therapeutics, Inc. (a) | 69,400 | $ 1,523,330 | |
Alexion Pharmaceuticals, Inc. (a) | 109,998 | 9,220,032 | |
Amgen, Inc. (a) | 201,712 | 11,110,297 | |
Anthera Pharmaceuticals, Inc. | 226,988 | 880,713 | |
ARIAD Pharmaceuticals, Inc. (a) | 454,990 | 2,900,561 | |
ArQule, Inc. (a) | 219,100 | 1,343,083 | |
AVEO Pharmaceuticals, Inc. | 29,639 | 424,727 | |
AVEO Pharmaceuticals, Inc. (e) | 28,715 | 411,486 | |
Biogen Idec, Inc. (a) | 80,679 | 5,282,054 | |
BioMarin Pharmaceutical, Inc. (a) | 279,367 | 7,101,509 | |
Chelsea Therapeutics International Ltd. (a) | 197,200 | 1,175,312 | |
Dynavax Technologies Corp. (a)(d) | 627,600 | 1,882,800 | |
Gilead Sciences, Inc. (a) | 436,465 | 16,751,527 | |
Human Genome Sciences, Inc. (a) | 74,600 | 1,809,796 | |
Incyte Corp. (a)(d) | 181,982 | 2,682,415 | |
Inhibitex, Inc. (a) | 254,500 | 578,988 | |
Keryx Biopharmaceuticals, Inc. (a) | 126,140 | 504,560 | |
Medivir AB (B Shares) (a) | 125,900 | 2,922,483 | |
Micromet, Inc. (a) | 103,300 | 664,219 | |
Neurocrine Biosciences, Inc. (a) | 108,400 | 799,992 | |
Seattle Genetics, Inc. (a) | 137,557 | 2,254,559 | |
Targacept, Inc. (a) | 113,715 | 2,929,298 | |
Theravance, Inc. (a)(d) | 127,600 | 2,684,704 | |
United Therapeutics Corp. (a) | 97,248 | 6,610,919 | |
YM Biosciences, Inc. (a) | 179,800 | 445,414 | |
ZIOPHARM Oncology, Inc. (a)(d) | 210,847 | 1,230,292 | |
| 86,125,070 | ||
DIVERSIFIED CONSUMER SERVICES - 0.5% | |||
Specialized Consumer Services - 0.5% | |||
Carriage Services, Inc. (a) | 252,255 | 1,289,023 | |
Stewart Enterprises, Inc. Class A (d) | 167,743 | 1,070,200 | |
| 2,359,223 | ||
FOOD & STAPLES RETAILING - 0.5% | |||
Drug Retail - 0.5% | |||
Droga Raia SA | 16,000 | 251,394 | |
Rite Aid Corp. (a) | 1,403,800 | 1,796,864 | |
| 2,048,258 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 18.7% | |||
Health Care Equipment - 17.4% | |||
American Medical Systems Holdings, Inc. (a) | 205,900 | 4,019,168 | |
ArthroCare Corp. (a) | 69,700 | 1,950,903 | |
Baxter International, Inc. | 50,400 | 2,443,896 | |
Boston Scientific Corp. (a) | 549,200 | 3,833,416 | |
C. R. Bard, Inc. | 111,810 | 10,549,274 | |
Covidien PLC | 453,545 | 21,529,781 | |
Edwards Lifesciences Corp. (a) | 169,072 | 14,251,079 | |
| |||
Shares | Value | ||
Genmark Diagnostics, Inc. | 79,000 | $ 368,140 | |
HeartWare International, Inc. (a)(d) | 27,941 | 2,598,792 | |
Hologic, Inc. (a) | 156,500 | 3,117,480 | |
Masimo Corp. | 154,272 | 4,624,303 | |
Orthofix International NV (a) | 46,105 | 1,318,603 | |
Orthovita, Inc. (a) | 633,763 | 1,302,383 | |
William Demant Holding AS (a) | 32,969 | 2,639,845 | |
Wright Medical Group, Inc. (a) | 91,771 | 1,363,717 | |
| 75,910,780 | ||
Health Care Supplies - 1.3% | |||
Cooper Companies, Inc. | 54,802 | 3,142,347 | |
RTI Biologics, Inc. (a) | 658,976 | 1,766,056 | |
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 340,000 | 880,874 | |
| 5,789,277 | ||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 81,700,057 | ||
HEALTH CARE PROVIDERS & SERVICES - 22.5% | |||
Health Care Distributors & Services - 4.5% | |||
McKesson Corp. | 250,091 | 18,799,340 | |
United Drug PLC (Ireland) | 335,276 | 991,425 | |
| 19,790,765 | ||
Health Care Facilities - 2.2% | |||
Emeritus Corp. (a)(d) | 95,575 | 1,825,483 | |
Hanger Orthopedic Group, Inc. (a) | 90,665 | 1,863,166 | |
Kindred Healthcare, Inc. (a) | 136,010 | 2,544,747 | |
LCA-Vision, Inc. (a) | 164,878 | 1,116,224 | |
Sunrise Senior Living, Inc. (a)(d) | 281,609 | 2,252,872 | |
| 9,602,492 | ||
Health Care Services - 13.4% | |||
Accretive Health, Inc. | 51,708 | 937,983 | |
Air Methods Corp. (a) | 45,700 | 2,341,668 | |
Express Scripts, Inc. (a) | 166,986 | 9,406,321 | |
Fresenius Medical Care AG & Co. KGaA | 64,700 | 3,785,223 | |
HMS Holdings Corp. (a) | 68,000 | 4,375,120 | |
Laboratory Corp. of America Holdings (a) | 33,500 | 3,011,985 | |
Medco Health Solutions, Inc. (a) | 461,275 | 28,147,001 | |
Omnicare, Inc. | 65,300 | 1,692,576 | |
Sun Healthcare Group, Inc. (a) | 145,800 | 1,821,771 | |
Team Health Holdings, Inc. (a) | 180,600 | 2,792,076 | |
| 58,311,724 | ||
Managed Health Care - 2.4% | |||
CIGNA Corp. | 134,100 | 5,634,882 | |
UnitedHealth Group, Inc. | 115,167 | 4,727,605 | |
| 10,362,487 | ||
TOTAL HEALTH CARE PROVIDERS & SERVICES | 98,067,468 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE TECHNOLOGY - 2.2% | |||
Health Care Technology - 2.2% | |||
Allscripts-Misys Healthcare Solutions, Inc. (a) | 335,243 | $ 7,076,980 | |
Computer Programs & Systems, Inc. | 46,521 | 2,414,440 | |
| 9,491,420 | ||
INTERNET SOFTWARE & SERVICES - 0.7% | |||
Internet Software & Services - 0.7% | |||
WebMD Health Corp. (a) | 55,357 | 2,894,064 | |
LIFE SCIENCES TOOLS & SERVICES - 16.3% | |||
Life Sciences Tools & Services - 16.3% | |||
Agilent Technologies, Inc. (a) | 263,212 | 11,010,158 | |
Bruker BioSciences Corp. (a) | 116,000 | 2,030,000 | |
Covance, Inc. (a) | 105,793 | 5,964,609 | |
Illumina, Inc. (a) | 406,000 | 28,152,041 | |
Lonza Group AG | 18,752 | 1,476,684 | |
PAREXEL International Corp. (a) | 104,382 | 2,422,706 | |
PerkinElmer, Inc. | 95,300 | 2,437,774 | |
QIAGEN NV (a)(d) | 379,986 | 7,010,742 | |
Thermo Fisher Scientific, Inc. (a) | 185,000 | 10,594,950 | |
| 71,099,664 | ||
MACHINERY - 0.4% | |||
Industrial Machinery - 0.4% | |||
Pall Corp. | 35,100 | 1,944,891 | |
PERSONAL PRODUCTS - 0.4% | |||
Personal Products - 0.4% | |||
Prestige Brands Holdings, Inc. (a) | 138,572 | 1,529,835 | |
PHARMACEUTICALS - 15.3% | |||
Pharmaceuticals - 15.3% | |||
Ardea Biosciences, Inc. (a) | 182,414 | 4,837,619 | |
Cardiome Pharma Corp. (a) | 279,000 | 1,755,769 | |
Columbia Laboratories, Inc. (a) | 232,000 | 524,320 | |
Jazz Pharmaceuticals, Inc. (a) | 63,700 | 1,424,332 | |
Merck & Co., Inc. | 453,195 | 15,032,478 | |
Optimer Pharmaceuticals, Inc. (a) | 124,354 | 1,367,894 | |
Perrigo Co. | 89,382 | 6,501,647 | |
Pfizer, Inc. | 581,488 | 10,594,711 | |
Piramal Healthcare Ltd. | 162,732 | 1,561,801 | |
Shire PLC sponsored ADR | 89,400 | 7,090,314 | |
Valeant Pharmaceuticals International, Inc. | 347,404 | 12,662,843 | |
Watson Pharmaceuticals, Inc. (a) | 58,000 | 3,162,160 | |
| 66,515,888 | ||
| |||
Shares | Value | ||
SOFTWARE - 0.3% | |||
Application Software - 0.3% | |||
Nuance Communications, Inc. (a) | 70,700 | $ 1,437,331 | |
TOTAL COMMON STOCKS (Cost $325,024,616) | 425,213,169 | ||
Money Market Funds - 3.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 10,536,249 | 10,536,249 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,398,637 | 4,398,637 | |
TOTAL MONEY MARKET FUNDS (Cost $14,934,886) | 14,934,886 | ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $339,959,502) | 440,148,055 | |
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (3,930,943) | |
NET ASSETS - 100% | $ 436,217,112 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $411,486 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
AVEO Pharmaceuticals, Inc. | 10/28/10 | $ 387,653 |
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 | $ 6,935 |
Fidelity Securities Lending Cash Central Fund | 104,495 |
Total | $ 111,430 |
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. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 85.1% |
Ireland | 5.1% |
Canada | 3.4% |
Bailiwick of Jersey | 1.6% |
Netherlands | 1.6% |
Others (Individually Less Than 1%) | 3.2% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $32,671,830 of which $30,833,729 and $1,838,101 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,320,296) - See accompanying schedule: Unaffiliated issuers (cost $325,024,616) | $ 425,213,169 |
|
Fidelity Central Funds (cost $14,934,886) | 14,934,886 |
|
Total Investments (cost $339,959,502) |
| $ 440,148,055 |
Foreign currency held at value | 2 | |
Receivable for investments sold | 5,397,973 | |
Receivable for fund shares sold | 471,421 | |
Dividends receivable | 198,188 | |
Distributions receivable from Fidelity Central Funds | 4,261 | |
Prepaid expenses | 991 | |
Other receivables | 11,074 | |
Total assets | 446,231,965 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,071,304 | |
Payable for fund shares redeemed | 1,014,894 | |
Accrued management fee | 203,658 | |
Distribution and service plan fees payable | 170,332 | |
Other affiliated payables | 118,115 | |
Other payables and accrued expenses | 37,913 | |
Collateral on securities loaned, at value | 4,398,637 | |
Total liabilities | 10,014,853 | |
|
| |
Net Assets | $ 436,217,112 | |
Net Assets consist of: |
| |
Paid in capital | $ 344,861,480 | |
Accumulated net investment loss | (1,024,690) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,816,165) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 100,196,487 | |
Net Assets | $ 436,217,112 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 23.65 | |
|
|
|
Maximum offering price per share (100/94.25 of $23.65) | $ 25.09 | |
Class T: | $ 22.93 | |
|
|
|
Maximum offering price per share (100/96.50 of $22.93) | $ 23.76 | |
Class B: | $ 21.47 | |
|
|
|
Class C: | $ 21.42 | |
|
|
|
Institutional Class: | $ 24.62 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Health Care Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 1,318,047 |
Special dividends |
| 391,090 |
Interest |
| 2,132 |
Income from Fidelity Central Funds (including $104,495 from security lending) |
| 111,430 |
Total income |
| 1,822,699 |
|
|
|
Expenses | ||
Management fee | $ 1,131,693 | |
Transfer agent fees | 599,415 | |
Distribution and service plan fees | 952,185 | |
Accounting and security lending fees | 80,415 | |
Custodian fees and expenses | 21,551 | |
Independent trustees' compensation | 1,194 | |
Registration fees | 44,748 | |
Audit | 28,065 | |
Legal | 1,808 | |
Miscellaneous | 2,269 | |
Total expenses before reductions | 2,863,343 | |
Expense reductions | (15,954) | 2,847,389 |
Net investment income (loss) | (1,024,690) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 28,014,459 | |
Foreign currency transactions | (10,832) | |
Total net realized gain (loss) |
| 28,003,627 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 60,948,251 | |
Assets and liabilities in foreign currencies | 12,210 | |
Total change in net unrealized appreciation (depreciation) | 60,960,461 | |
Net gain (loss) | 88,964,088 | |
Net increase (decrease) in net assets resulting from operations | $ 87,939,398 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (1,024,690) | $ (2,420,957) |
Net realized gain (loss) | 28,003,627 | 38,061,892 |
Change in net unrealized appreciation (depreciation) | 60,960,461 | 5,982,346 |
Net increase (decrease) in net assets resulting from operations | 87,939,398 | 41,623,281 |
Share transactions - net increase (decrease) | (30,768,285) | (51,082,260) |
Redemption fees | 1,504 | 6,564 |
Total increase (decrease) in net assets | 57,172,617 | (9,452,415) |
|
|
|
Net Assets | ||
Beginning of period | 379,044,495 | 388,496,910 |
End of period (including accumulated net investment loss of $1,024,690 and undistributed net investment income of $0, respectively) | $ 436,217,112 | $ 379,044,495 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 | $ 22.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.03) J | (.07) | .02 | (.03) | (.03) | (.09) |
Net realized and unrealized gain (loss) | 4.67 | 1.93 | (2.22) | (1.08) | 1.91 | .96 |
Total from investment operations | 4.64 | 1.86 | (2.20) | (1.11) | 1.88 | .87 |
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 | $ 23.65 | $ 19.01 | $ 17.15 | $ 19.72 | $ 22.90 | $ 23.77 |
Total Return B, C, D | 24.41% | 10.85% | (11.37)% | (5.64)% | 8.54% | 3.79% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.20% A | 1.22% | 1.23% | 1.20% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.20% A | 1.22% | 1.23% | 1.20% | 1.22% | 1.25% |
Expenses net of all reductions | 1.19% A | 1.21% | 1.23% | 1.19% | 1.21% | 1.21% |
Net investment income (loss) | (.29)% A, J | (.36)% | .11% | (.13)% | (.14)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 209,467 | $ 179,586 | $ 177,890 | $ 220,888 | $ 234,656 | $ 199,221 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.48)%. | ||||||
Financial Highlights - Class T
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 | $ 22.50 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.06) J | (.12) | (.02) | (.08) | (.09) | (.15) |
Net realized and unrealized gain (loss) | 4.53 | 1.89 | (2.18) | (1.06) | 1.87 | .95 |
Total from investment operations | 4.47 | 1.77 | (2.20) | (1.14) | 1.78 | .80 |
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 | $ 22.93 | $ 18.46 | $ 16.69 | $ 19.26 | $ 22.39 | $ 23.26 |
Total Return B, C, D | 24.21% | 10.61% | (11.65)% | (5.86)% | 8.25% | 3.55% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.45% A | 1.47% | 1.49% | 1.46% | 1.48% | 1.50% |
Expenses net of fee waivers, if any | 1.45% A | 1.47% | 1.49% | 1.46% | 1.48% | 1.50% |
Expenses net of all reductions | 1.45% A | 1.46% | 1.49% | 1.45% | 1.47% | 1.47% |
Net investment income (loss) | (.55)% A, J | (.62)% | (.15)% | (.40)% | (.40)% | (.63)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 117,072 | $ 100,883 | $ 103,772 | $ 143,237 | $ 186,628 | $ 218,280 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.74)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 | $ 21.55 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) J | (.20) | (.09) | (.18) | (.20) | (.25) |
Net realized and unrealized gain (loss) | 4.25 | 1.78 | (2.07) | (.99) | 1.79 | .91 |
Total from investment operations | 4.15 | 1.58 | (2.16) | (1.17) | 1.59 | .66 |
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 | $ 21.47 | $ 17.32 | $ 15.74 | $ 18.27 | $ 21.29 | $ 22.17 |
Total Return B, C, D | 23.96% | 10.04% | (12.07)% | (6.30)% | 7.66% | 3.06% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 1.99% | 2.01% |
Expenses net of fee waivers, if any | 1.95% A | 1.97% | 1.98% | 1.95% | 1.99% | 2.01% |
Expenses net of all reductions | 1.94% A | 1.96% | 1.98% | 1.94% | 1.98% | 1.98% |
Net investment income (loss) | (1.04)% A, J | (1.11)% | (.64)% | (.89)% | (.91)% | (1.14)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22,543 | $ 23,543 | $ 29,381 | $ 55,589 | $ 113,384 | $ 180,364 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.23)%. | ||||||
Financial Highlights - Class C
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 | $ 21.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.10) J | (.19) | (.09) | (.17) | (.19) | (.24) |
Net realized and unrealized gain (loss) | 4.23 | 1.78 | (2.07) | (1.00) | 1.79 | .91 |
Total from investment operations | 4.13 | 1.59 | (2.16) | (1.17) | 1.60 | .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 | $ 21.42 | $ 17.29 | $ 15.70 | $ 18.23 | $ 21.29 | $ 22.24 |
Total Return B, C, D | 23.89% | 10.13% | (12.09)% | (6.31)% | 7.75% | 3.10% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.92% A | 1.94% | 1.98% | 1.94% | 1.94% | 1.94% |
Expenses net of fee waivers, if any | 1.92% A | 1.94% | 1.98% | 1.94% | 1.94% | 1.94% |
Expenses net of all reductions | 1.92% A | 1.93% | 1.98% | 1.94% | 1.93% | 1.91% |
Net investment income (loss) | (1.02)% A, J | (1.08)% | (.64)% | (.88)% | (.86)% | (1.07)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 69,226 | $ 60,861 | $ 64,002 | $ 83,133 | $ 105,519 | $ 115,644 |
Portfolio turnover rate G | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (1.21)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 | $ 23.48 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | - H, I | (.02) | .06 | .03 | .05 | - H |
Net realized and unrealized gain (loss) | 4.85 | 2.01 | (2.30) | (1.12) | 1.96 | .99 |
Total from investment operations | 4.85 | 1.99 | (2.24) | (1.09) | 2.01 | .99 |
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 | $ 24.62 | $ 19.77 | $ 17.78 | $ 20.39 | $ 23.62 | $ 24.43 |
Total Return B, C | 24.53% | 11.19% | (11.19)% | (5.36)% | 8.90% | 4.21% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .94% A | .96% | .98% | .93% | .88% | .86% |
Expenses net of fee waivers, if any | .94% A | .96% | .98% | .93% | .88% | .86% |
Expenses net of all reductions | .93% A | .95% | .98% | .92% | .87% | .83% |
Net investment income (loss) | (.03)% A, I | (.10)% | .36% | .14% | .19% | .01% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 17,909 | $ 14,172 | $ 13,452 | $ 18,825 | $ 22,174 | $ 20,652 |
Portfolio turnover rate F | 102% A | 103% | 172% | 134% | 141% | 99% |
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 Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.22)%. | ||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. 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 on the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, 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 | $ 104,713,637 |
Gross unrealized depreciation | (6,731,559) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 97,982,078 |
| |
Tax cost | $ 342,165,977 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $199,823,478 and $231,679,404, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 240,838 | $ 100 |
Class T | .25% | .25% | 271,274 | - |
Class B | .75% | .25% | 115,279 | 86,508 |
Class C | .75% | .25% | 324,794 | 13,091 |
|
|
| $ 952,185 | $ 99,699 |
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% 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 | $ 11,414 |
Class T | 6,350 |
Class B* | 22,418 |
Class C* | 1,147 |
| $ 41,329 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 286,465 | .30 |
Class T | 165,778 | .31 |
Class B | 34,421 | .30 |
Class C | 89,523 | .28 |
Institutional Class | 23,228 | .29 |
| $ 599,415 |
|
* Annualized
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $3,555 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $719 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $15,954 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 514,731 | 1,348,328 | $ 11,038,735 | $ 26,342,454 |
Shares redeemed | (1,102,846) | (2,277,034) | (23,112,791) | (43,802,733) |
Net increase (decrease) | (588,115) | (928,706) | $ (12,074,056) | $ (17,460,279) |
Class T |
|
|
|
|
Shares sold | 184,270 | 653,249 | $ 3,835,683 | $ 12,596,630 |
Shares redeemed | (543,955) | (1,405,398) | (11,176,513) | (26,754,410) |
Net increase (decrease) | (359,685) | (752,149) | $ (7,340,830) | $ (14,157,780) |
Class B |
|
|
|
|
Shares sold | 9,885 | 142,178 | $ 181,210 | $ 2,538,751 |
Shares redeemed | (318,750) | (649,613) | (6,113,352) | (11,572,231) |
Net increase (decrease) | (308,865) | (507,435) | $ (5,932,142) | $ (9,033,480) |
Class C |
|
|
|
|
Shares sold | 104,718 | 307,711 | $ 2,057,150 | $ 5,532,717 |
Shares redeemed | (394,070) | (862,744) | (7,642,616) | (15,167,135) |
Net increase (decrease) | (289,352) | (555,033) | $ (5,585,466) | $ (9,634,418) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Institutional Class |
|
|
|
|
Shares sold | 124,466 | 188,384 | $ 2,776,062 | $ 3,842,212 |
Shares redeemed | (113,969) | (227,941) | (2,611,853) | (4,638,515) |
Net increase (decrease) | 10,497 | (39,557) | $ 164,209 | $ (796,303) |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.16% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,242.90 | $ 6.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.36 | $ 5.90 |
Class T | 1.41% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,241.30 | $ 7.97 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.10 | $ 7.17 |
Class B | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.40 | $ 11.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.38 | $ 9.91 |
Class C | 1.91% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,238.20 | $ 10.78 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.58 | $ 9.70 |
Institutional Class | .87% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,244.90 | $ 4.92 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.82 | $ 4.43 |
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
Fidelity Advisor Industrials Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
General Electric Co. | 13.6 | 13.4 |
United Technologies Corp. | 5.5 | 6.5 |
Caterpillar, Inc. | 4.4 | 4.1 |
Union Pacific Corp. | 3.6 | 4.5 |
Emerson Electric Co. | 3.4 | 1.2 |
Honeywell International, Inc. | 3.0 | 3.3 |
3M Co. | 3.0 | 5.3 |
Danaher Corp. | 2.6 | 2.8 |
The Boeing Co. | 2.3 | 0.0 |
Ingersoll-Rand Co. Ltd. | 2.1 | 3.9 |
| 43.5 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Machinery | 20.2% |
|
| Industrial Conglomerates | 19.5% |
|
| Aerospace & Defense | 18.7% |
|
| Electrical Equipment | 10.2% |
|
| Road & Rail | 7.5% |
|
| All Others* | 23.9% |
|
As of July 31, 2010 | |||
| Machinery | 25.1% |
|
| Industrial Conglomerates | 20.9% |
|
| Aerospace & Defense | 18.5% |
|
| Road & Rail | 7.6% |
|
| Electrical Equipment | 5.4% |
|
| All Others* | 22.5% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Industrials Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
AEROSPACE & DEFENSE - 18.7% | |||
Aerospace & Defense - 18.7% | |||
Bombardier, Inc. Class B (sub. vtg.) | 564,600 | $ 3,214,684 | |
DigitalGlobe, Inc. (a) | 108,696 | 3,338,054 | |
Embraer SA sponsored ADR | 47,600 | 1,570,800 | |
Esterline Technologies Corp. (a) | 42,317 | 3,012,124 | |
GeoEye, Inc. (a) | 46,916 | 1,872,887 | |
Goodrich Corp. | 55,100 | 4,993,162 | |
Honeywell International, Inc. | 242,195 | 13,565,342 | |
Meggitt PLC | 179,900 | 1,022,886 | |
Precision Castparts Corp. | 59,152 | 8,458,144 | |
Rockwell Collins, Inc. | 76,397 | 4,900,104 | |
The Boeing Co. | 151,395 | 10,518,925 | |
TransDigm Group, Inc. (a) | 39,087 | 3,028,461 | |
United Technologies Corp. | 302,952 | 24,629,998 | |
| 84,125,571 | ||
AIR FREIGHT & LOGISTICS - 0.5% | |||
Air Freight & Logistics - 0.5% | |||
C.H. Robinson Worldwide, Inc. | 26,804 | 2,066,320 | |
AIRLINES - 0.2% | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 17,800 | 1,001,250 | |
AUTO COMPONENTS - 0.2% | |||
Auto Parts & Equipment - 0.2% | |||
Modine Manufacturing Co. (a) | 63,800 | 1,052,700 | |
AUTOMOBILES - 0.4% | |||
Automobile Manufacturers - 0.4% | |||
General Motors Co. | 54,084 | 1,973,525 | |
BUILDING PRODUCTS - 2.8% | |||
Building Products - 2.8% | |||
A.O. Smith Corp. | 103,301 | 4,422,316 | |
Lennox International, Inc. | 75,200 | 3,695,328 | |
Owens Corning (a) | 137,361 | 4,597,473 | |
| 12,715,117 | ||
COMMERCIAL SERVICES & SUPPLIES - 2.1% | |||
Diversified Support Services - 0.5% | |||
Iron Mountain, Inc. | 86,101 | 2,100,003 | |
Environmental & Facility Services - 0.7% | |||
Republic Services, Inc. | 107,932 | 3,328,623 | |
Security & Alarm Services - 0.9% | |||
The Geo Group, Inc. (a) | 167,235 | 3,975,176 | |
TOTAL COMMERCIAL SERVICES & SUPPLIES | 9,403,802 | ||
CONSTRUCTION & ENGINEERING - 7.3% | |||
Construction & Engineering - 7.3% | |||
EMCOR Group, Inc. (a) | 164,800 | 4,990,144 | |
Fluor Corp. | 93,960 | 6,501,092 | |
Foster Wheeler Ag (a) | 128,231 | 4,720,183 | |
| |||
Shares | Value | ||
Jacobs Engineering Group, Inc. (a) | 145,911 | $ 7,495,448 | |
MYR Group, Inc. (a) | 109,251 | 2,402,429 | |
Quanta Services, Inc. (a) | 154,500 | 3,666,285 | |
Shaw Group, Inc. (a) | 79,400 | 2,998,938 | |
| 32,774,519 | ||
ELECTRICAL EQUIPMENT - 10.2% | |||
Electrical Components & Equipment - 9.3% | |||
Acuity Brands, Inc. | 26,700 | 1,473,840 | |
AMETEK, Inc. | 92,200 | 3,759,916 | |
Cooper Industries PLC Class A | 83,623 | 5,122,745 | |
Emerson Electric Co. | 258,954 | 15,247,212 | |
Fushi Copperweld, Inc. (a) | 208,221 | 2,007,250 | |
General Cable Corp. (a) | 73,800 | 2,731,338 | |
GrafTech International Ltd. (a) | 127,900 | 2,685,900 | |
Hubbell, Inc. Class B | 16,300 | 998,212 | |
Polypore International, Inc. (a) | 26,300 | 1,266,345 | |
Prysmian SpA | 111,200 | 2,243,911 | |
Regal-Beloit Corp. | 43,912 | 2,930,687 | |
Sensata Technologies Holding BV | 56,000 | 1,764,560 | |
| 42,231,916 | ||
Heavy Electrical Equipment - 0.9% | |||
Alstom SA | 71,131 | 3,969,628 | |
TOTAL ELECTRICAL EQUIPMENT | 46,201,544 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 0.1% | |||
Electronic Equipment & Instruments - 0.1% | |||
HLS Systems International Ltd. (a) | 18,900 | 303,345 | |
ENERGY EQUIPMENT & SERVICES - 0.5% | |||
Oil & Gas Equipment & Services - 0.5% | |||
Dresser-Rand Group, Inc. (a) | 46,952 | 2,156,505 | |
HOUSEHOLD DURABLES - 1.0% | |||
Household Appliances - 1.0% | |||
Stanley Black & Decker, Inc. | 60,376 | 4,388,128 | |
INDUSTRIAL CONGLOMERATES - 19.5% | |||
Industrial Conglomerates - 19.5% | |||
3M Co. | 153,420 | 13,488,686 | |
General Electric Co. | 3,052,305 | 61,473,424 | |
Textron, Inc. | 327,200 | 8,602,088 | |
Tyco International Ltd. | 99,776 | 4,472,958 | |
| 88,037,156 | ||
LIFE SCIENCES TOOLS & SERVICES - 0.5% | |||
Life Sciences Tools & Services - 0.5% | |||
Agilent Technologies, Inc. (a) | 49,300 | 2,062,219 | |
MACHINERY - 20.2% | |||
Construction & Farm Machinery & Heavy Trucks - 10.3% | |||
Ashok Leyland Ltd. | 469,023 | 603,359 | |
Caterpillar, Inc. | 202,195 | 19,614,937 | |
Cummins, Inc. | 83,971 | 8,890,849 | |
Fiat Industrial SpA (a) | 329,100 | 4,453,567 | |
Common Stocks - continued | |||
Shares | Value | ||
MACHINERY - CONTINUED | |||
Construction & Farm Machinery & Heavy Trucks - continued | |||
Komatsu Ltd. | 48,700 | $ 1,450,083 | |
MAN SE | 16,340 | 1,888,877 | |
PACCAR, Inc. | 120,118 | 6,785,466 | |
Tata Motors Ltd. sponsored ADR (d) | 45,900 | 1,113,534 | |
Weichai Power Co. Ltd. (H Shares) | 222,000 | 1,507,657 | |
| 46,308,329 | ||
Industrial Machinery - 9.9% | |||
Actuant Corp. Class A | 103,060 | 2,857,854 | |
Danaher Corp. | 251,654 | 11,591,183 | |
Gardner Denver, Inc. | 40,632 | 2,931,192 | |
Harsco Corp. | 106,031 | 3,421,620 | |
Ingersoll-Rand Co. Ltd. | 202,893 | 9,576,550 | |
Pall Corp. | 75,913 | 4,206,339 | |
Sandvik AB | 62,100 | 1,218,666 | |
SmartHeat, Inc. (a)(d) | 313,515 | 1,492,331 | |
SPX Corp. | 70,400 | 5,517,952 | |
TriMas Corp. (a) | 18,399 | 350,317 | |
Weg SA | 149,400 | 1,779,361 | |
| 44,943,365 | ||
TOTAL MACHINERY | 91,251,694 | ||
MARINE - 0.3% | |||
Marine - 0.3% | |||
Kuehne & Nagel International AG | 9,950 | 1,286,761 | |
PROFESSIONAL SERVICES - 2.1% | |||
Human Resource & Employment Services - 1.4% | |||
Towers Watson & Co. | 119,810 | 6,533,239 | |
Research & Consulting Services - 0.7% | |||
IHS, Inc. Class A (a) | 37,900 | 3,106,284 | |
TOTAL PROFESSIONAL SERVICES | 9,639,523 | ||
ROAD & RAIL - 7.5% | |||
Railroads - 7.2% | |||
CSX Corp. | 108,960 | 7,692,576 | |
Kansas City Southern (a) | 60,231 | 3,010,345 | |
Norfolk Southern Corp. | 92,110 | 5,636,211 | |
Union Pacific Corp. | 169,392 | 16,029,565 | |
| 32,368,697 | ||
| |||
Shares | Value | ||
Trucking - 0.3% | |||
Saia, Inc. (a) | 118,526 | $ 1,696,107 | |
TOTAL ROAD & RAIL | 34,064,804 | ||
TRADING COMPANIES & DISTRIBUTORS - 3.5% | |||
Trading Companies & Distributors - 3.5% | |||
Barloworld Ltd. | 225,900 | 2,178,001 | |
Finning International, Inc. | 53,700 | 1,563,099 | |
Mills Estruturas e Servicos de Engenharia SA | 167,000 | 2,092,132 | |
Rush Enterprises, Inc. Class A (a) | 289,328 | 5,517,485 | |
WESCO International, Inc. (a) | 77,401 | 4,338,326 | |
| 15,689,043 | ||
TOTAL COMMON STOCKS (Cost $360,945,974) | 440,193,526 | ||
Money Market Funds - 4.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 17,368,856 | 17,368,856 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 2,366,351 | 2,366,351 | |
TOTAL MONEY MARKET FUNDS (Cost $19,735,207) | 19,735,207 | ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $380,681,181) | 459,928,733 | |
NET OTHER ASSETS (LIABILITIES) - (2.0)% | (8,991,331) | |
NET ASSETS - 100% | $ 450,937,402 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 4,537 |
Fidelity Securities Lending Cash Central Fund | 7,419 |
Total | $ 11,956 |
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. |
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 | 3.2% |
Switzerland | 2.4% |
Italy | 1.5% |
Brazil | 1.3% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 4.0% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $49,540,826 of which $29,658,388 and $19,882,438 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $2,190,045) - See accompanying schedule: Unaffiliated issuers (cost $360,945,974) | $ 440,193,526 |
|
Fidelity Central Funds (cost $19,735,207) | 19,735,207 |
|
Total Investments (cost $380,681,181) |
| $ 459,928,733 |
Receivable for investments sold | 6,060,979 | |
Receivable for fund shares sold | 1,861,292 | |
Dividends receivable | 202,951 | |
Distributions receivable from Fidelity Central Funds | 2,392 | |
Prepaid expenses | 833 | |
Other receivables | 4,834 | |
Total assets | 468,062,014 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 13,292,650 | |
Payable for fund shares redeemed | 981,770 | |
Accrued management fee | 197,798 | |
Distribution and service plan fees payable | 155,475 | |
Other affiliated payables | 95,915 | |
Other payables and accrued expenses | 34,653 | |
Collateral on securities loaned, at value | 2,366,351 | |
Total liabilities | 17,124,612 | |
|
| |
Net Assets | $ 450,937,402 | |
Net Assets consist of: |
| |
Paid in capital | $ 404,341,886 | |
Distributions in excess of net investment income | (144,610) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (32,507,985) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 79,248,111 | |
Net Assets | $ 450,937,402 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 26.74 | |
|
|
|
Maximum offering price per share (100/94.25 of $26.74) | $ 28.37 | |
Class T: | $ 26.36 | |
|
|
|
Maximum offering price per share (100/96.50 of $26.36) | $ 27.32 | |
Class B: | $ 25.04 | |
|
|
|
Class C: | $ 25.11 | |
|
|
|
Institutional Class: | $ 27.70 | |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Industrials Fund
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,715,404 |
Income from Fidelity Central Funds |
| 11,956 |
Total income |
| 2,727,360 |
|
|
|
Expenses | ||
Management fee | $ 1,023,338 | |
Transfer agent fees | 467,365 | |
Distribution and service plan fees | 820,615 | |
Accounting and security lending fees | 71,632 | |
Custodian fees and expenses | 19,340 | |
Independent trustees' compensation | 992 | |
Registration fees | 50,545 | |
Audit | 23,899 | |
Legal | 1,042 | |
Miscellaneous | 1,906 | |
Total expenses before reductions | 2,480,674 | |
Expense reductions | (8,611) | 2,472,063 |
Net investment income (loss) | 255,297 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 21,302,756 | |
Foreign currency transactions | (33,281) | |
Total net realized gain (loss) |
| 21,269,475 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 59,357,242 | |
Assets and liabilities in foreign currencies | 170 | |
Total change in net unrealized appreciation (depreciation) | 59,357,412 | |
Net gain (loss) | 80,626,887 | |
Net increase (decrease) in net assets resulting from operations | $ 80,882,184 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 255,297 | $ 292,700 |
Net realized gain (loss) | 21,269,475 | 53,593,720 |
Change in net unrealized appreciation (depreciation) | 59,357,412 | 14,761,999 |
Net increase (decrease) in net assets resulting from operations | 80,882,184 | 68,648,419 |
Distributions to shareholders from net investment income | (328,907) | (658,116) |
Share transactions - net increase (decrease) | 36,762,510 | 10,867,809 |
Redemption fees | 3,903 | 9,545 |
Total increase (decrease) in net assets | 117,319,690 | 78,867,657 |
|
|
|
Net Assets | ||
Beginning of period | 333,617,712 | 254,750,055 |
End of period (including distributions in excess of net investment income of $144,610 and distributions in excess of net investment income of $71,000, respectively) | $ 450,937,402 | $ 333,617,712 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 | $ 21.53 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .06 | .13 | .11 | .09 | .08 |
Net realized and unrealized gain (loss) | 5.19 | 4.68 | (5.08) | (1.17) | 5.11 | 1.63 |
Total from investment operations | 5.23 | 4.74 | (4.95) | (1.06) | 5.20 | 1.71 |
Distributions from net investment income | (.03) | (.07) | (.13) | - | (.06) | - |
Distributions from net realized gain | - | - | (.02) | (2.46) | (1.81) | (1.08) |
Total distributions | (.03) | (.07) | (.15) | (2.46) | (1.87) | (1.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.74 | $ 21.54 | $ 16.87 | $ 21.97 | $ 25.49 | $ 22.16 |
Total Return B, C, D | 24.29% | 28.13% | (22.49)% | (4.71)% | 25.13% | 8.40% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.16% A | 1.18% | 1.23% | 1.17% | 1.21% | 1.26% |
Expenses net of fee waivers, if any | 1.16% A | 1.18% | 1.23% | 1.17% | 1.21% | 1.26% |
Expenses net of all reductions | 1.15% A | 1.17% | 1.23% | 1.16% | 1.21% | 1.24% |
Net investment income (loss) | .34% A | .31% | .89% | .46% | .38% | .34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 223,666 | $ 165,029 | $ 130,860 | $ 188,859 | $ 157,451 | $ 99,255 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 | $ 21.27 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .01 | .01 | .10 | .05 | .03 | .02 |
Net realized and unrealized gain (loss) | 5.12 | 4.61 | (5.03) | (1.15) | 5.05 | 1.61 |
Total from investment operations | 5.13 | 4.62 | (4.93) | (1.10) | 5.08 | 1.63 |
Distributions from net investment income | (.01) | (.02) | (.08) | - | (.03) | - |
Distributions from net realized gain | - | - | (.02) | (2.40) | (1.74) | (1.04) |
Total distributions | (.01) | (.02) | (.10) | (2.40) | (1.77) | (1.04) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 26.36 | $ 21.24 | $ 16.64 | $ 21.67 | $ 25.17 | $ 21.86 |
Total Return B, C, D | 24.13% | 27.80% | (22.68)% | (4.96)% | 24.82% | 8.13% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.41% A | 1.44% | 1.48% | 1.41% | 1.46% | 1.49% |
Expenses net of fee waivers, if any | 1.41% A | 1.44% | 1.48% | 1.41% | 1.46% | 1.49% |
Expenses net of all reductions | 1.40% A | 1.43% | 1.48% | 1.41% | 1.46% | 1.47% |
Net investment income (loss) | .09% A | .06% | .63% | .21% | .13% | .11% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 71,028 | $ 58,202 | $ 48,054 | $ 85,025 | $ 75,530 | $ 55,936 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 | $ 20.55 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.09) | .02 | (.07) | (.09) | (.09) |
Net realized and unrealized gain (loss) | 4.87 | 4.41 | (4.82) | (1.10) | 4.87 | 1.55 |
Total from investment operations | 4.82 | 4.32 | (4.80) | (1.17) | 4.78 | 1.46 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | - | - | - | (2.28) | (1.61) | (.99) |
Total distributions | - | - | (.04) | (2.28) | (1.61) | (.99) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.04 | $ 20.22 | $ 15.90 | $ 20.74 | $ 24.19 | $ 21.02 |
Total Return B, C, D | 23.84% | 27.17% | (23.10)% | (5.46)% | 24.18% | 7.54% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.04% |
Expenses net of fee waivers, if any | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.04% |
Expenses net of all reductions | 1.95% A | 1.97% | 1.98% | 1.95% | 2.00% | 2.02% |
Net investment income (loss) | (.46)% A | (.48)% | .13% | (.33)% | (.41)% | (.44)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 32,555 | $ 29,048 | $ 25,212 | $ 39,989 | $ 44,330 | $ 37,082 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 | $ 20.68 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.05) | (.08) | .02 | (.06) | (.08) | (.08) |
Net realized and unrealized gain (loss) | 4.88 | 4.42 | (4.83) | (1.11) | 4.88 | 1.56 |
Total from investment operations | 4.83 | 4.34 | (4.81) | (1.17) | 4.80 | 1.48 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | - | - | - | (2.30) | (1.70) | (1.00) |
Total distributions | - | - | (.04) | (2.30) | (1.70) | (1.00) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 25.11 | $ 20.28 | $ 15.94 | $ 20.79 | $ 24.26 | $ 21.16 |
Total Return B, C, D | 23.82% | 27.23% | (23.09)% | (5.44)% | 24.25% | 7.59% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.91% A | 1.93% | 1.98% | 1.91% | 1.94% | 1.99% |
Expenses net of fee waivers, if any | 1.91% A | 1.93% | 1.98% | 1.91% | 1.94% | 1.99% |
Expenses net of all reductions | 1.90% A | 1.92% | 1.98% | 1.90% | 1.94% | 1.97% |
Net investment income (loss) | (.41)% A | (.43)% | .14% | (.28)% | (.35)% | (.38)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 68,464 | $ 51,760 | $ 37,862 | $ 57,742 | $ 57,862 | $ 42,363 |
Portfolio turnover rate G | 77% A | 110% | 135% | 91% | 130% | 94% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 | $ 22.06 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .08 | .13 | .19 | .18 | .16 | .16 |
Net realized and unrealized gain (loss) | 5.38 | 4.83 | (5.27) | (1.19) | 5.27 | 1.66 |
Total from investment operations | 5.46 | 4.96 | (5.08) | (1.01) | 5.43 | 1.82 |
Distributions from net investment income | (.06) | (.11) | (.17) | - | (.13) | - |
Distributions from net realized gain | - | - | (.02) | (2.53) | (1.81) | (1.11) |
Total distributions | (.06) | (.11) | (.19) | (2.53) | (1.94) | (1.11) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 27.70 | $ 22.30 | $ 17.45 | $ 22.72 | $ 26.26 | $ 22.77 |
Total Return B, C | 24.49% | 28.52% | (22.31)% | (4.40)% | 25.53% | 8.73% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .87% A | .89% | .96% | .88% | .92% | .91% |
Expenses net of fee waivers, if any | .87% A | .89% | .96% | .88% | .92% | .91% |
Expenses net of all reductions | .86% A | .88% | .95% | .87% | .91% | .89% |
Net investment income (loss) | .63% A | .61% | 1.16% | .75% | .67% | .69% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 55,224 | $ 29,578 | $ 12,762 | $ 33,642 | $ 19,498 | $ 13,043 |
Portfolio turnover rate F | 77% A | 110% | 135% | 91% | 130% | 94% |
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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 79,750,986 |
Gross unrealized depreciation | (3,435,086) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 76,315,900 |
| |
Tax cost | $ 383,612,833 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $166,961,188 and $139,559,238, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 229,809 | - |
Class T | .25% | .25% | 155,188 | - |
Class B | .75% | .25% | 149,492 | 112,119 |
Class C | .75% | .25% | 286,126 | 55,987 |
|
|
| $ 820,615 | 168,106 |
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% 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 | $ 39,050 |
Class T | 7,272 |
Class B* | 34,507 |
Class C* | 1,436 |
| $ 82,265 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 234,679 | .26 |
Class T | 78,987 | .25 |
Class B | 44,754 | .30 |
Class C | 72,743 | .25 |
Institutional Class | 36,202 | .22 |
| $ 467,365 |
|
* 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
5. 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 $2,855 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $631 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $7,419. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $8,611 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2011 | Year ended | |
From net investment income |
|
|
Class A | $ 235,263 | $ 508,657 |
Class T | 13,200 | 67,522 |
Class B | - | - |
Class C | - | - |
Institutional Class | 80,444 | 81,937 |
Total | $ 328,907 | $ 658,116 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended |
Class A |
|
|
|
|
Shares sold | 1,526,260 | 2,293,002 | $ 37,351,822 | $ 46,751,968 |
Reinvestment of distributions | 8,108 | 24,478 | 205,122 | 465,084 |
Shares redeemed | (833,458) | (2,413,077) | (19,577,054) | (48,350,817) |
Net increase (decrease) | 700,910 | (95,597) | $ 17,979,890 | $ (1,133,765) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended |
Class T |
|
|
|
|
Shares sold | 305,538 | 640,220 | $ 7,242,234 | $ 12,504,319 |
Reinvestment of distributions | 500 | 3,441 | 12,596 | 64,976 |
Shares redeemed | (352,465) | (791,417) | (8,009,702) | (15,762,597) |
Net increase (decrease) | (46,427) | (147,756) | $ (754,872) | $ (3,193,302) |
Class B |
|
|
|
|
Shares sold | 40,519 | 230,669 | $ 890,229 | $ 4,429,240 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (176,909) | (379,173) | (3,834,258) | (7,171,787) |
Net increase (decrease) | (136,390) | (148,504) | $ (2,944,029) | $ (2,742,547) |
Class C |
|
|
|
|
Shares sold | 444,395 | 965,412 | $ 10,090,157 | $ 18,697,081 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (270,929) | (787,460) | (5,890,230) | (14,785,582) |
Net increase (decrease) | 173,466 | 177,952 | $ 4,199,927 | $ 3,911,499 |
Institutional Class |
|
|
|
|
Shares sold | 1,064,964 | 1,199,584 | $ 27,581,412 | $ 26,360,020 |
Reinvestment of distributions | 2,269 | 3,299 | 59,382 | 64,789 |
Shares redeemed | (400,004) | (607,717) | (9,359,200) | (12,398,885) |
Net increase (decrease) | 667,229 | 595,166 | $ 18,281,594 | $ 14,025,924 |
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
Fidelity 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.19% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,315.20 | $ 6.94 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.21 | $ 6.06 |
Class T | 1.44% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,313.40 | $ 8.40 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.95 | $ 7.32 |
Class B | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,310.40 | $ 11.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Class C | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,310.70 | $ 11.30 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.43 | $ 9.86 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,316.70 | $ 5.26 |
HypotheticalA |
| $ 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
Fidelity Advisor Technology Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
Apple, Inc. | 13.7 | 13.3 |
Google, Inc. Class A | 6.3 | 4.9 |
Oracle Corp. | 4.7 | 4.0 |
Corning, Inc. | 3.3 | 0.4 |
QUALCOMM, Inc. | 3.2 | 3.5 |
EMC Corp. | 2.3 | 0.9 |
Cisco Systems, Inc. | 2.2 | 3.5 |
Accenture PLC Class A | 1.8 | 0.5 |
Trimble Navigation Ltd. | 1.7 | 1.4 |
Marvell Technology Group Ltd. | 1.7 | 0.6 |
| 40.9 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Software | 21.2% |
|
| Computers & Peripherals | 20.5% |
|
| Semiconductors & Semiconductor Equipment | 15.8% |
|
| Internet Software & Services | 10.8% |
|
| Communications Equipment | 10.4% |
|
| All Others* | 21.3% |
|
As of July 31, 2010 | |||
| Software | 23.0% |
|
| Computers & Peripherals | 21.1% |
|
| Communications Equipment | 14.4% |
|
| Semiconductors & Semiconductor Equipment | 14.2% |
|
| Internet Software & Services | 10.4% |
|
| All Others* | 16.9% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Technology Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
AUTOMOBILES - 0.0% | |||
Automobile Manufacturers - 0.0% | |||
Tesla Motors, Inc. (a) | 7,300 | $ 175,930 | |
BUILDING PRODUCTS - 0.1% | |||
Building Products - 0.1% | |||
Asahi Glass Co. Ltd. | 33,000 | 411,294 | |
CHEMICALS - 0.0% | |||
Commodity Chemicals - 0.0% | |||
STR Holdings, Inc. (a)(d) | 14,023 | 256,340 | |
COMMUNICATIONS EQUIPMENT - 10.3% | |||
Communications Equipment - 10.3% | |||
Acme Packet, Inc. (a) | 25,817 | 1,388,438 | |
Adtran, Inc. | 73,649 | 3,029,183 | |
Alcatel-Lucent SA sponsored ADR (a) | 133,502 | 441,892 | |
Aruba Networks, Inc. (a) | 9,800 | 211,190 | |
Balda AG (a) | 83,039 | 829,185 | |
China Wireless Technologies Ltd. | 1,176,000 | 650,082 | |
Ciena Corp. (a) | 133,449 | 2,939,881 | |
Cisco Systems, Inc. (a) | 878,218 | 18,574,311 | |
DG FastChannel, Inc. (a) | 31,179 | 854,616 | |
Emulex Corp. (a) | 5,400 | 61,614 | |
F5 Networks, Inc. (a) | 576 | 62,427 | |
Finisar Corp. (a) | 3,674 | 122,344 | |
HTC Corp. | 345,300 | 11,640,796 | |
Infinera Corp. (a) | 70,900 | 520,052 | |
Juniper Networks, Inc. (a) | 60,898 | 2,260,534 | |
Motorola Mobility Holdings, Inc. | 250,273 | 6,975,109 | |
Motorola Solutions, Inc. | 5,662 | 219,516 | |
QUALCOMM, Inc. | 498,217 | 26,968,486 | |
Riverbed Technology, Inc. (a) | 47,870 | 1,717,097 | |
Sandvine Corp. (a) | 751,600 | 2,166,840 | |
Sandvine Corp. (U.K.) (a) | 554,200 | 1,610,950 | |
Sonus Networks, Inc. (a) | 29,060 | 79,915 | |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 101,641 | 1,257,299 | |
ZTE Corp. (H Shares) | 265,600 | 1,047,507 | |
| 85,629,264 | ||
COMPUTERS & PERIPHERALS - 20.5% | |||
Computer Hardware - 15.4% | |||
Apple, Inc. (a) | 335,634 | 113,887,330 | |
Hewlett-Packard Co. | 269,569 | 12,316,608 | |
Stratasys, Inc. (a) | 56,775 | 1,875,278 | |
| 128,079,216 | ||
Computer Storage & Peripherals - 5.1% | |||
Chicony Electronics Co. Ltd. | 198,748 | 435,275 | |
EMC Corp. (a) | 775,275 | 19,296,595 | |
Imagination Technologies Group PLC (a) | 326,491 | 1,883,050 | |
NetApp, Inc. (a) | 114,047 | 6,241,792 | |
SanDisk Corp. (a) | 131,190 | 5,952,090 | |
Seagate Technology (a) | 228,348 | 3,196,872 | |
| |||
Shares | Value | ||
Smart Technologies, Inc. Class A (a) | 52,300 | $ 492,666 | |
Western Digital Corp. (a) | 140,635 | 4,784,403 | |
| 42,282,743 | ||
TOTAL COMPUTERS & PERIPHERALS | 170,361,959 | ||
CONSUMER FINANCE - 0.1% | |||
Consumer Finance - 0.1% | |||
Discover Financial Services | 40,000 | 823,600 | |
Netspend Holdings, Inc. (d) | 3,100 | 44,330 | |
| 867,930 | ||
DIVERSIFIED CONSUMER SERVICES - 0.0% | |||
Education Services - 0.0% | |||
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 809 | 79,816 | |
DIVERSIFIED FINANCIAL SERVICES - 0.0% | |||
Specialized Finance - 0.0% | |||
CME Group, Inc. | 1,213 | 374,283 | |
ELECTRICAL EQUIPMENT - 0.1% | |||
Electrical Components & Equipment - 0.1% | |||
A123 Systems, Inc. (a)(d) | 2,200 | 19,932 | |
Acuity Brands, Inc. | 1,582 | 87,326 | |
American Superconductor Corp. (a)(d) | 10,569 | 288,217 | |
| 395,475 | ||
ELECTRONIC EQUIPMENT & COMPONENTS - 9.1% | |||
Electronic Components - 5.2% | |||
Aeroflex Holding Corp. | 47,400 | 743,706 | |
Amphenol Corp. Class A | 1,400 | 77,476 | |
AU Optronics Corp. sponsored ADR (a)(d) | 210,614 | 2,021,894 | |
Cando Corp. (a) | 1,259,298 | 956,182 | |
Cando Corp. rights 2/11/11 (a) | 303,742 | 42,361 | |
Chimei Innolux Corp. (a) | 1,267,000 | 1,603,383 | |
Corning, Inc. | 1,233,867 | 27,404,186 | |
DigiTech Systems Co., Ltd. | 64,859 | 1,169,909 | |
E Ink Holdings, Inc. (a) | 308,000 | 561,061 | |
E Ink Holdings, Inc. GDR (a)(e) | 4,700 | 85,675 | |
J Touch Corp. | 176,000 | 636,364 | |
J Touch Corp. rights 3/11/11 (a) | 11,750 | 10,115 | |
LG Display Co. Ltd. sponsored ADR (d) | 124,732 | 2,114,207 | |
Nippon Electric Glass Co. Ltd. | 218,000 | 3,280,093 | |
Vishay Intertechnology, Inc. (a) | 53,057 | 875,441 | |
Young Fast Optoelectron Co. Ltd. | 196,000 | 1,964,050 | |
| 43,546,103 | ||
Electronic Equipment & Instruments - 0.2% | |||
Chroma ATE, Inc. | 364,003 | 1,128,108 | |
Itron, Inc. (a) | 1,027 | 59,587 | |
Test Research, Inc. | 266,500 | 438,660 | |
Vishay Precision Group, Inc. (a) | 5,039 | 93,473 | |
| 1,719,828 | ||
Common Stocks - continued | |||
Shares | Value | ||
ELECTRONIC EQUIPMENT & COMPONENTS - CONTINUED | |||
Electronic Manufacturing Services - 2.7% | |||
Benchmark Electronics, Inc. (a) | 1,200 | $ 22,788 | |
Flextronics International Ltd. (a) | 148,900 | 1,189,711 | |
IPG Photonics Corp. (a) | 3,600 | 124,740 | |
Jabil Circuit, Inc. | 334,566 | 6,761,579 | |
Ju Teng International Holdings Ltd. | 190,000 | 88,459 | |
KEMET Corp. (a) | 15,200 | 237,120 | |
Multi-Fineline Electronix, Inc. (a) | 2,289 | 66,152 | |
Trimble Navigation Ltd. (a) | 311,295 | 14,344,474 | |
| 22,835,023 | ||
Technology Distributors - 1.0% | |||
Anixter International, Inc. | 33,635 | 2,128,086 | |
Arrow Electronics, Inc. (a) | 33,478 | 1,265,468 | |
Avnet, Inc. (a) | 35,800 | 1,275,196 | |
Digital China Holdings Ltd. (H Shares) | 795,000 | 1,525,395 | |
Inspur International Ltd. | 1,899,000 | 163,186 | |
Synnex Technology International Corp. | 154,633 | 407,882 | |
VST Holdings Ltd. (a) | 2,000,000 | 728,504 | |
WPG Holding Co. Ltd. | 204,565 | 402,931 | |
| 7,896,648 | ||
TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 75,997,602 | ||
HEALTH CARE EQUIPMENT & SUPPLIES - 0.6% | |||
Health Care Equipment - 0.3% | |||
Biosensors International Group Ltd. (a) | 2,005,000 | 1,739,798 | |
China Medical Technologies, Inc. sponsored ADR (a)(d) | 1,900 | 23,332 | |
Golden Meditech Holdings Ltd. (a) | 2,168,000 | 408,752 | |
Microport Scientific Corp. | 492,000 | 389,975 | |
Mingyuan Medicare Development Co. Ltd. | 270,000 | 34,283 | |
| 2,596,140 | ||
Health Care Supplies - 0.3% | |||
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares) | 820,000 | 2,124,461 | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 4,720,601 | ||
HEALTH CARE PROVIDERS & SERVICES - 0.0% | |||
Health Care Distributors & Services - 0.0% | |||
Sinopharm Group Co. Ltd. (H Shares) | 88,400 | 312,361 | |
HEALTH CARE TECHNOLOGY - 0.1% | |||
Health Care Technology - 0.1% | |||
athenahealth, Inc. (a) | 600 | 25,764 | |
Medidata Solutions, Inc. (a) | 17,600 | 439,120 | |
| 464,884 | ||
| |||
Shares | Value | ||
HOTELS, RESTAURANTS & LEISURE - 0.0% | |||
Hotels, Resorts & Cruise Lines - 0.0% | |||
Ctrip.com International Ltd. sponsored ADR (a) | 1,600 | $ 65,856 | |
HOUSEHOLD DURABLES - 0.2% | |||
Consumer Electronics - 0.0% | |||
Skyworth Digital Holdings Ltd. | 638,651 | 398,092 | |
TomTom Group BV (a) | 160 | 1,580 | |
| 399,672 | ||
Household Appliances - 0.2% | |||
Haier Electronics Group Co. Ltd. (a) | 1,232,000 | 1,289,391 | |
TOTAL HOUSEHOLD DURABLES | 1,689,063 | ||
INTERNET & CATALOG RETAIL - 0.7% | |||
Internet Retail - 0.7% | |||
Amazon.com, Inc. (a) | 4,569 | 775,085 | |
E-Commerce China Dangdang, Inc. ADR | 260 | 7,358 | |
Expedia, Inc. | 113,400 | 2,853,144 | |
MakeMyTrip Ltd. | 8,300 | 238,625 | |
Priceline.com, Inc. (a) | 4,703 | 2,015,330 | |
| 5,889,542 | ||
INTERNET SOFTWARE & SERVICES - 10.8% | |||
Internet Software & Services - 10.8% | |||
Akamai Technologies, Inc. (a) | 15,229 | 735,865 | |
Alibaba.com Ltd. (d) | 1,456,500 | 2,876,834 | |
Baidu.com, Inc. sponsored ADR (a) | 11,435 | 1,242,184 | |
China Finance Online Co. Ltd. ADR (a) | 86,946 | 494,723 | |
ChinaCache International Holdings Ltd. sponsored ADR | 1,400 | 30,912 | |
DealerTrack Holdings, Inc. (a) | 12,300 | 243,110 | |
Digital River, Inc. (a) | 23,641 | 750,365 | |
eBay, Inc. (a) | 355,626 | 10,796,805 | |
Google, Inc. Class A (a) | 86,564 | 51,969,563 | |
IntraLinks Holdings, Inc. | 69,990 | 1,416,598 | |
Kakaku.com, Inc. | 165 | 931,743 | |
LogMeIn, Inc. (a) | 31,900 | 1,229,107 | |
Mail.ru Group Ltd. GDR unit (a)(e) | 42,400 | 1,509,440 | |
MediaMind Technologies, Inc. (a) | 5,100 | 77,163 | |
Mercadolibre, Inc. (a) | 37,634 | 2,550,833 | |
Monster Worldwide, Inc. (a) | 193,304 | 3,218,512 | |
NetEase.com, Inc. sponsored ADR (a) | 21,100 | 851,174 | |
Open Text Corp. (a) | 1,700 | 83,956 | |
OpenTable, Inc. (a) | 10,700 | 841,234 | |
Rackspace Hosting, Inc. (a) | 26,200 | 877,962 | |
RightNow Technologies, Inc. (a) | 15,065 | 390,635 | |
Tencent Holdings Ltd. | 49,500 | 1,282,449 | |
Terremark Worldwide, Inc. (a) | 28,600 | 541,684 | |
The Knot, Inc. (a) | 5,200 | 57,616 | |
VeriSign, Inc. | 21,300 | 716,745 | |
VistaPrint Ltd. (a) | 71,947 | 3,643,396 | |
Common Stocks - continued | |||
Shares | Value | ||
INTERNET SOFTWARE & SERVICES - CONTINUED | |||
Internet Software & Services - continued | |||
Vocus, Inc. (a) | 14,700 | $ 381,171 | |
YouKu.com, Inc. ADR (a)(d) | 7,000 | 207,410 | |
| 89,949,189 | ||
IT SERVICES - 7.7% | |||
Data Processing & Outsourced Services - 2.8% | |||
Computer Sciences Corp. | 71,000 | 3,783,590 | |
DST Systems, Inc. | 8,904 | 423,474 | |
Fidelity National Information Services, Inc. | 11,029 | 335,612 | |
Fiserv, Inc. (a) | 1,300 | 80,301 | |
MasterCard, Inc. Class A | 18,500 | 4,375,435 | |
Paychex, Inc. | 85,000 | 2,720,000 | |
Syntel, Inc. | 4,200 | 234,234 | |
VeriFone Systems, Inc. (a) | 70,406 | 2,812,016 | |
Visa, Inc. Class A | 119,772 | 8,366,074 | |
| 23,130,736 | ||
IT Consulting & Other Services - 4.9% | |||
Accenture PLC Class A | 295,014 | 15,184,371 | |
Atos Origin SA (a) | 45,342 | 2,524,207 | |
Camelot Information Systems, Inc. ADR | 22,500 | 504,000 | |
China Information Technology, Inc. (a) | 17 | 77 | |
Cognizant Technology Solutions Corp. Class A (a) | 157,720 | 11,505,674 | |
Hi Sun Technology (China) Ltd. (a) | 408,000 | 147,568 | |
hiSoft Technology International Ltd. ADR (a) | 83,393 | 2,511,797 | |
International Business Machines Corp. | 25,506 | 4,131,972 | |
Sapient Corp. | 53,100 | 634,545 | |
Teradata Corp. (a) | 82,900 | 3,563,871 | |
| 40,708,082 | ||
TOTAL IT SERVICES | 63,838,818 | ||
LEISURE EQUIPMENT & PRODUCTS - 0.0% | |||
Photographic Products - 0.0% | |||
Eastman Kodak Co. (a) | 77,700 | 284,382 | |
LIFE SCIENCES TOOLS & SERVICES - 0.4% | |||
Life Sciences Tools & Services - 0.4% | |||
Agilent Technologies, Inc. (a) | 49,700 | 2,078,951 | |
Illumina, Inc. (a) | 13,800 | 956,892 | |
| 3,035,843 | ||
MACHINERY - 0.1% | |||
Industrial Machinery - 0.1% | |||
Meyer Burger Technology AG (a) | 88 | 2,717 | |
Mirle Automation Corp. | 359,000 | 412,899 | |
Sunpower Group Ltd. (a) | 1,280,000 | 495,310 | |
| 910,926 | ||
| |||
Shares | Value | ||
MEDIA - 0.6% | |||
Advertising - 0.5% | |||
AirMedia Group, Inc. ADR (a)(d) | 93,500 | $ 634,865 | |
Focus Media Holding Ltd. ADR (a) | 51,200 | 1,275,392 | |
ReachLocal, Inc. | 91,813 | 2,001,523 | |
| 3,911,780 | ||
Cable & Satellite - 0.1% | |||
Virgin Media, Inc. | 40,700 | 1,024,012 | |
TOTAL MEDIA | 4,935,792 | ||
METALS & MINING - 0.1% | |||
Diversified Metals & Mining - 0.0% | |||
Timminco Ltd. (a) | 5,600 | 3,244 | |
Steel - 0.1% | |||
Xingda International Holdings Ltd. | 703,000 | 692,469 | |
TOTAL METALS & MINING | 695,713 | ||
OFFICE ELECTRONICS - 0.2% | |||
Office Electronics - 0.2% | |||
Xerox Corp. | 144,264 | 1,532,084 | |
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2% | |||
Real Estate Services - 0.2% | |||
China Real Estate Information Corp. ADR (a)(d) | 167,174 | 1,253,805 | |
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 15.8% | |||
Semiconductor Equipment - 2.9% | |||
Advanced Energy Industries, Inc. (a) | 5,757 | 88,917 | |
Amkor Technology, Inc. (a) | 556,974 | 4,533,768 | |
ASM International NV unit (a) | 12,900 | 469,431 | |
ASML Holding NV | 11,300 | 474,713 | |
centrotherm photovoltaics AG (a) | 1,493 | 61,318 | |
Cymer, Inc. (a) | 73,938 | 3,592,647 | |
GCL-Poly Energy Holdings Ltd. (a) | 250,000 | 116,394 | |
Kulicke & Soffa Industries, Inc. (a) | 33,700 | 328,575 | |
Lam Research Corp. (a) | 3,217 | 160,496 | |
LTX-Credence Corp. (a) | 33,420 | 296,268 | |
MEMC Electronic Materials, Inc. (a) | 7,735 | 85,781 | |
Novellus Systems, Inc. (a) | 8,917 | 321,636 | |
Renewable Energy Corp. ASA (a)(d) | 18,000 | 57,664 | |
Roth & Rau AG (a) | 2,758 | 55,880 | |
Sumco Corp. (a) | 200 | 3,048 | |
Teradyne, Inc. (a) | 332,221 | 5,541,446 | |
Tessera Technologies, Inc. (a) | 3,600 | 62,352 | |
Varian Semiconductor Equipment Associates, Inc. (a) | 85,100 | 3,782,695 | |
Verigy Ltd. (a) | 285,600 | 3,809,904 | |
| 23,842,933 | ||
Semiconductors - 12.9% | |||
Advanced Micro Devices, Inc. (a) | 44,923 | 351,747 | |
Alpha & Omega Semiconductor Ltd. (a) | 69,038 | 976,197 | |
Common Stocks - continued | |||
Shares | Value | ||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED | |||
Semiconductors - continued | |||
Altera Corp. | 2,250 | $ 84,533 | |
Applied Micro Circuits Corp. (a) | 34,350 | 338,004 | |
ARM Holdings PLC sponsored ADR | 16,326 | 408,803 | |
Atmel Corp. (a) | 7,286 | 98,652 | |
Avago Technologies Ltd. | 196,111 | 5,630,347 | |
Broadcom Corp. Class A | 66,271 | 2,988,159 | |
Canadian Solar, Inc. (a) | 100 | 1,402 | |
Cavium Networks, Inc. (a) | 27,551 | 1,089,367 | |
Cirrus Logic, Inc. (a)(d) | 119,164 | 2,506,019 | |
Cree, Inc. (a) | 1,334 | 67,354 | |
CSR PLC (a) | 104,354 | 644,654 | |
Cypress Semiconductor Corp. (a) | 186,719 | 4,042,466 | |
Dialog Semiconductor PLC (a) | 35,000 | 788,202 | |
Duksan Hi-Metal Co. Ltd. (a) | 40,012 | 769,960 | |
Elpida Memory, Inc. (a)(d) | 148,200 | 2,145,000 | |
Energy Conversion Devices, Inc. (a)(d) | 8,000 | 32,640 | |
Fairchild Semiconductor International, Inc. (a) | 238,318 | 4,242,060 | |
First Solar, Inc. (a) | 545 | 84,246 | |
Hittite Microwave Corp. (a) | 1,279 | 76,459 | |
Hynix Semiconductor, Inc. (a) | 91,280 | 2,416,745 | |
Inotera Memories, Inc. (a) | 4,908,000 | 3,109,752 | |
Inphi Corp. | 48,389 | 916,004 | |
Intel Corp. | 2,881 | 61,826 | |
International Rectifier Corp. (a) | 50,565 | 1,619,597 | |
Intersil Corp. Class A | 347,113 | 5,248,349 | |
JA Solar Holdings Co. Ltd. ADR (a) | 10,400 | 71,760 | |
Jinkosolar Holdings Co. Ltd. ADR (d) | 2,756 | 71,959 | |
LSI Corp. (a) | 93,369 | 577,954 | |
Marvell Technology Group Ltd. (a) | 729,062 | 13,859,469 | |
Micron Technology, Inc. (a) | 875,646 | 9,229,309 | |
Microsemi Corp. (a) | 4,100 | 92,209 | |
Monolithic Power Systems, Inc. (a) | 53,832 | 789,715 | |
National Semiconductor Corp. | 109,121 | 1,654,274 | |
Netlogic Microsystems, Inc. (a) | 2,500 | 87,150 | |
NVIDIA Corp. (a) | 549,700 | 13,148,824 | |
NXP Semiconductors NV | 167,453 | 4,310,240 | |
O2Micro International Ltd. sponsored ADR (a) | 38,400 | 253,440 | |
PMC-Sierra, Inc. (a) | 18,400 | 143,888 | |
Power Integrations, Inc. | 77,015 | 2,844,164 | |
Powertech Technology, Inc. | 101,000 | 379,098 | |
Radiant Opto-Electronics Corp. | 8,122 | 17,844 | |
Ralink Technology Corp. | 206,000 | 773,209 | |
Rambus, Inc. (a) | 35,400 | 725,346 | |
RDA Microelectronics, Inc. sponsored ADR | 5,735 | 77,078 | |
Richtek Technology Corp. | 12,000 | 93,802 | |
Silicon Laboratories, Inc. (a) | 8,300 | 369,184 | |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 264,300 | 1,831,599 | |
Skyworks Solutions, Inc. (a) | 61,890 | 1,966,245 | |
| |||
Shares | Value | ||
Spreadtrum Communications, Inc. ADR (a)(d) | 164,238 | $ 3,531,117 | |
Standard Microsystems Corp. (a) | 76,900 | 1,849,445 | |
SunPower Corp. Class A (a)(d) | 8,600 | 115,584 | |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 3,200 | 27,168 | |
Texas Instruments, Inc. | 137,365 | 4,658,047 | |
Trina Solar Ltd. (a)(d) | 77,844 | 2,029,393 | |
TriQuint Semiconductor, Inc. (a) | 62,167 | 818,118 | |
Wolfson Microelectronics PLC (a) | 90,265 | 436,610 | |
Xilinx, Inc. | 2,543 | 81,885 | |
Yingli Green Energy Holding Co. Ltd. ADR (a) | 200 | 2,316 | |
YoungTek Electronics Corp. | 33,830 | 98,205 | |
| 107,754,192 | ||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 131,597,125 | ||
SOFTWARE - 21.2% | |||
Application Software - 12.0% | |||
Adobe Systems, Inc. (a) | 124,254 | 4,106,595 | |
ANSYS, Inc. (a) | 44,008 | 2,308,220 | |
AsiaInfo Holdings, Inc. (a) | 58,300 | 1,251,118 | |
Aspen Technology, Inc. (a) | 213,273 | 3,017,813 | |
Autodesk, Inc. (a) | 123,063 | 5,006,203 | |
AutoNavi Holdings Ltd. ADR | 45,521 | 744,724 | |
Autonomy Corp. PLC (a) | 33,675 | 806,876 | |
Blackboard, Inc. (a)(d) | 90,256 | 3,507,348 | |
BroadSoft, Inc. (a) | 62,800 | 1,740,188 | |
Cadence Design Systems, Inc. (a) | 92,487 | 802,787 | |
Citrix Systems, Inc. (a) | 1,082 | 68,361 | |
Compuware Corp. (a) | 358,141 | 3,839,272 | |
Concur Technologies, Inc. (a) | 72,475 | 3,698,399 | |
Descartes Systems Group, Inc. (a) | 122,100 | 847,663 | |
Epicor Software Corp. (a) | 47,232 | 489,324 | |
Informatica Corp. (a) | 171,200 | 7,943,680 | |
Intuit, Inc. (a) | 213,824 | 10,034,760 | |
JDA Software Group, Inc. (a) | 28,190 | 850,774 | |
Kenexa Corp. (a) | 19,469 | 403,787 | |
Kingdee International Software Group Co. Ltd. | 9,554,000 | 6,286,171 | |
Longtop Financial Technologies Ltd. ADR (a) | 89,875 | 2,956,888 | |
Manhattan Associates, Inc. (a) | 2,257 | 66,604 | |
MicroStrategy, Inc. Class A (a) | 7,759 | 825,247 | |
Nuance Communications, Inc. (a) | 243,764 | 4,955,722 | |
Parametric Technology Corp. (a) | 211,106 | 4,692,886 | |
Pegasystems, Inc. | 44,053 | 1,505,732 | |
QLIK Technologies, Inc. | 5,600 | 129,976 | |
Quest Software, Inc. (a) | 64,400 | 1,662,808 | |
RealPage, Inc. | 15,200 | 416,328 | |
salesforce.com, Inc. (a) | 96,342 | 12,441,606 | |
Smith Micro Software, Inc. (a) | 5,003 | 63,138 | |
SolarWinds, Inc. (a) | 20,229 | 382,328 | |
Common Stocks - continued | |||
Shares | Value | ||
SOFTWARE - CONTINUED | |||
Application Software - continued | |||
Sonic Solutions, Inc. (a) | 21,344 | $ 311,302 | |
SuccessFactors, Inc. (a) | 139,300 | 4,056,416 | |
Synopsys, Inc. (a) | 56,700 | 1,538,271 | |
Taleo Corp. Class A (a) | 58,071 | 1,710,772 | |
TIBCO Software, Inc. (a) | 111,289 | 2,446,132 | |
TiVo, Inc. (a) | 8,000 | 77,360 | |
VanceInfo Technologies, Inc. ADR (a) | 47,800 | 1,668,220 | |
| 99,661,799 | ||
Home Entertainment Software - 0.1% | |||
Activision Blizzard, Inc. | 5,800 | 65,482 | |
Perfect World Co. Ltd. sponsored ADR Class B (a) | 10,300 | 239,166 | |
RealD, Inc. | 3,600 | 85,212 | |
| 389,860 | ||
Systems Software - 9.1% | |||
Ariba, Inc. (a) | 134,419 | 3,775,830 | |
BMC Software, Inc. (a) | 174,813 | 8,338,580 | |
CA, Inc. | 204,296 | 4,862,245 | |
Check Point Software Technologies Ltd. (a) | 1,700 | 75,735 | |
CommVault Systems, Inc. (a) | 100,464 | 3,103,333 | |
Fortinet, Inc. (a) | 52,558 | 2,020,855 | |
Insyde Software Corp. | 100,498 | 397,978 | |
MICROS Systems, Inc. (a) | 15,800 | 722,692 | |
Microsoft Corp. | 288,446 | 7,997,165 | |
Novell, Inc. (a) | 310 | 1,866 | |
Oracle Corp. | 1,221,700 | 39,131,051 | |
Red Hat, Inc. (a) | 35,163 | 1,452,935 | |
Rovi Corp. (a) | 36,921 | 2,280,241 | |
VMware, Inc. Class A (a) | 18,718 | 1,600,763 | |
| 75,761,269 | ||
TOTAL SOFTWARE | 175,812,928 | ||
WIRELESS TELECOMMUNICATION SERVICES - 0.6% | |||
Wireless Telecommunication Services - 0.6% | |||
American Tower Corp. Class A (a) | 31,125 | 1,583,018 | |
Crown Castle International Corp. (a) | 37,100 | 1,564,507 | |
SBA Communications Corp. Class A (a) | 39,147 | 1,597,198 | |
Sprint Nextel Corp. (a) | 18,461 | 83,444 | |
| 4,828,167 | ||
TOTAL COMMON STOCKS (Cost $658,848,778) | 826,366,972 | ||
Convertible Bonds - 0.1% | ||||
| Principal Amount | Value | ||
COMMUNICATIONS EQUIPMENT - 0.1% | ||||
Communications Equipment - 0.1% | ||||
Ciena Corp. 0.25% 5/1/13 | $ 1,270,000 | $ 1,221,740 | ||
Master Notes - 0.0% | ||||
| ||||
OZ Optics Ltd. 5% 11/5/14 (f) | 240,883 | 240,883 | ||
Money Market Funds - 2.6% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 8,273,766 | 8,273,766 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 13,204,452 | 13,204,452 | |
TOTAL MONEY MARKET FUNDS (Cost $21,478,218) | 21,478,218 | ||
Cash Equivalents - 0.5% | |||
Maturity Amount |
| ||
Investments in repurchase agreements in a joint trading account at 0.23%, dated 1/31/11 due 2/1/11 (Collateralized by U.S. Government Obligations) # | $ 4,031,026 | 4,031,000 | |
TOTAL INVESTMENT PORTFOLIO - 102.7% (Cost $685,874,626) | 853,338,813 | |
NET OTHER ASSETS (LIABILITIES) - (2.7)% | (22,503,824) | |
NET ASSETS - 100% | $ 830,834,989 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $1,595,115 or 0.2% of net assets. |
(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 $240,883 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
OZ Optics Ltd. 5% 11/5/14 | 11/5/10 | $ 246,969 |
# Additional information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$4,031,000 due 2/01/11 at 0.23% | |
BNP Paribas Securities Corp. | $ 1,241,584 |
Barclays Capital, Inc. | 761,881 |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 2,027,535 |
| $ 4,031,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 10,695 |
Fidelity Securities Lending Cash Central Fund | 124,118 |
Total | $ 134,813 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 826,366,972 | $ 826,314,496 | $ 52,476 | $ - |
Convertible Bonds | 1,221,740 | - | 1,221,740 | - |
Master Notes | 240,883 | - | - | 240,883 |
Money Market Funds | 21,478,218 | 21,478,218 | - | - |
Cash Equivalents | 4,031,000 | - | 4,031,000 | - |
Total Investments in Securities: | $ 853,338,813 | $ 847,792,714 | $ 5,305,216 | $ 240,883 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Investments in Securities: | |
Beginning Balance | $ 301,240 |
Total Realized Gain (Loss) | (704,097) |
Total Unrealized Gain (Loss) | 696,693 |
Cost of Purchases | 308,711 |
Proceeds of Sales | (361,325) |
Amortization/Accretion | (339) |
Transfers in to Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ 240,883 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2011 | $ (5,747) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 80.7% |
Cayman Islands | 3.6% |
Taiwan | 3.4% |
Bermuda | 2.7% |
Ireland | 2.2% |
Singapore | 1.4% |
China | 1.2% |
Others (Individually Less Than 1%) | 4.8% |
| 100.0% |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $632,644,379 of which $499,806,783 and $132,837,596 will expire in fiscal 2011 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Technology Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,898,396 and repurchase agreements of $4,031,000) - See accompanying schedule: Unaffiliated issuers (cost $664,396,408) | $ 831,860,595 |
|
Fidelity Central Funds (cost $21,478,218) | 21,478,218 |
|
Total Investments (cost $685,874,626) |
| $ 853,338,813 |
Cash | 770 | |
Foreign currency held at value (cost $27) | 27 | |
Receivable for investments sold | 9,701,721 | |
Receivable for fund shares sold | 1,642,352 | |
Dividends receivable | 202,559 | |
Interest receivable | 3,656 | |
Distributions receivable from Fidelity Central Funds | 10,134 | |
Prepaid expenses | 1,648 | |
Other receivables | 48,800 | |
Total assets | 864,950,480 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,416,765 | |
Payable for fund shares redeemed | 1,567,262 | |
Accrued management fee | 379,939 | |
Distribution and service plan fees payable | 280,253 | |
Other affiliated payables | 213,998 | |
Other payables and accrued expenses | 52,822 | |
Collateral on securities loaned, at value | 13,204,452 | |
Total liabilities | 34,115,491 | |
|
| |
Net Assets | $ 830,834,989 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,209,818,896 | |
Accumulated net investment loss | (3,493,140) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (542,955,991) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 167,465,224 | |
Net Assets | $ 830,834,989 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 26.08 | |
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Maximum offering price per share (100/94.25 of $26.08) | $ 27.67 | |
Class T: | $ 25.27 | |
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Maximum offering price per share (100/96.50 of $25.27) | $ 26.19 | |
Class B: | $ 23.60 | |
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Class C: | $ 23.71 | |
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Institutional Class: | $ 27.23 | |
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, 2011 (Unaudited) | ||
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|
|
Investment Income |
|
|
Dividends |
| $ 1,100,838 |
Interest |
| 4,463 |
Income from Fidelity Central Funds (including $124,118 from security lending) |
| 134,813 |
Total income |
| 1,240,114 |
|
|
|
Expenses | ||
Management fee | $ 1,994,936 | |
Transfer agent fees | 1,055,630 | |
Distribution and service plan fees | 1,481,594 | |
Accounting and security lending fees | 128,717 | |
Custodian fees and expenses | 59,053 | |
Independent trustees' compensation | 2,025 | |
Registration fees | 55,639 | |
Audit | 29,342 | |
Legal | 2,638 | |
Miscellaneous | 3,666 | |
Total expenses before reductions | 4,813,240 | |
Expense reductions | (79,986) | 4,733,254 |
Net investment income (loss) | (3,493,140) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 93,704,330 | |
Foreign currency transactions | (63,091) | |
Total net realized gain (loss) |
| 93,641,239 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 102,499,825 | |
Assets and liabilities in foreign currencies | 5,272 | |
Total change in net unrealized appreciation (depreciation) | 102,505,097 | |
Net gain (loss) | 196,146,336 | |
Net increase (decrease) in net assets resulting from operations | $ 192,653,196 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (3,493,140) | $ (6,176,617) |
Net realized gain (loss) | 93,641,239 | 117,224,365 |
Change in net unrealized appreciation (depreciation) | 102,505,097 | 9,231,846 |
Net increase (decrease) in net assets resulting from operations | 192,653,196 | 120,279,594 |
Share transactions - net increase (decrease) | 14,994,562 | (19,248,670) |
Redemption fees | 9,199 | 34,453 |
Total increase (decrease) in net assets | 207,656,957 | 101,065,377 |
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|
Net Assets | ||
Beginning of period | 623,178,032 | 522,112,655 |
End of period (including accumulated net investment loss of $3,493,140 and $0, respectively) | $ 830,834,989 | $ 623,178,032 |
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) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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|
|
|
|
|
Net asset value, beginning of period | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 | $ 16.16 |
Income from Investment Operations |
|
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|
|
|
|
Net investment income (loss) E | (.09) | (.16) | .02 H | (.10) | (.17) | (.15) |
Net realized and unrealized gain (loss) | 6.34 | 3.96 | (1.03) | (3.41) | 5.13 | (.42) |
Total from investment operations | 6.25 | 3.80 | (1.01) | (3.51) | 4.96 | (.57) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 26.08 | $ 19.83 | $ 16.03 | $ 17.04 | $ 20.55 | $ 15.59 |
Total Return B, C, D | 31.52% | 23.71% | (5.93)% | (17.08)% | 31.82% | (3.53)% |
Ratios to Average Net Assets F, I |
|
|
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Expenses before reductions | 1.19% A | 1.21% | 1.23% | 1.21% | 1.25% | 1.30% |
Expenses net of fee waivers, if any | 1.19% A | 1.21% | 1.23% | 1.21% | 1.25% | 1.30% |
Expenses net of all reductions | 1.16% A | 1.18% | 1.22% | 1.19% | 1.24% | 1.20% |
Net investment income (loss) | (.82)% A | (.83)% | .17% H | (.49)% | (.91)% | (.88)% |
Supplemental Data |
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|
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Net assets, end of period (000 omitted) | $ 418,756 | $ 312,659 | $ 258,433 | $ 275,117 | $ 309,105 | $ 189,054 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 | $ 15.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.12) | (.20) | (.01) H | (.14) | (.21) | (.19) |
Net realized and unrealized gain (loss) | 6.15 | 3.85 | (1.02) | (3.33) | 5.02 | (.41) |
Total from investment operations | 6.03 | 3.65 | (1.03) | (3.47) | 4.81 | (.60) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 25.27 | $ 19.24 | $ 15.59 | $ 16.62 | $ 20.09 | $ 15.28 |
Total Return B, C, D | 31.34% | 23.41% | (6.20)% | (17.27)% | 31.48% | (3.78)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.44% A | 1.46% | 1.49% | 1.46% | 1.51% | 1.55% |
Expenses net of fee waivers, if any | 1.44% A | 1.46% | 1.49% | 1.46% | 1.51% | 1.55% |
Expenses net of all reductions | 1.42% A | 1.44% | 1.48% | 1.45% | 1.49% | 1.44% |
Net investment income (loss) | (1.07)% A | (1.09)% | (.09)% H | (.74)% | (1.16)% | (1.13)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 219,333 | $ 169,049 | $ 151,170 | $ 173,917 | $ 260,339 | $ 260,966 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 | $ 15.24 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.16) | (.27) | (.07) H | (.23) | (.28) | (.27) |
Net realized and unrealized gain (loss) | 5.75 | 3.61 | (.98) | (3.15) | 4.79 | (.38) |
Total from investment operations | 5.59 | 3.34 | (1.05) | (3.38) | 4.51 | (.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.60 | $ 18.01 | $ 14.67 | $ 15.72 | $ 19.10 | $ 14.59 |
Total Return B, C, D | 31.04% | 22.77% | (6.68)% | (17.70)% | 30.91% | (4.27)% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of all reductions | 1.92% A | 1.94% | 1.97% | 1.94% | 2.00% | 1.94% |
Net investment income (loss) | (1.57)% A | (1.59)% | (.58)% H | (1.24)% | (1.67)% | (1.63)% |
Supplemental Data |
|
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|
|
|
|
Net assets, end of period (000 omitted) | $ 32,066 | $ 29,176 | $ 30,580 | $ 47,294 | $ 102,655 | $ 192,790 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 | $ 15.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.16) | (.28) | (.07) H | (.23) | (.29) | (.27) |
Net realized and unrealized gain (loss) | 5.78 | 3.63 | (.98) | (3.16) | 4.81 | (.38) |
Total from investment operations | 5.62 | 3.35 | (1.05) | (3.39) | 4.52 | (.65) |
Redemption fees added to paid in capital E, J | - | - | - | - | - | - |
Net asset value, end of period | $ 23.71 | $ 18.09 | $ 14.74 | $ 15.79 | $ 19.18 | $ 14.66 |
Total Return B, C, D | 31.07% | 22.73% | (6.65)% | (17.67)% | 30.83% | (4.25)% |
Ratios to Average Net Assets F, I |
|
|
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|
|
|
Expenses before reductions | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.94% A | 1.96% | 1.98% | 1.96% | 2.01% | 2.05% |
Expenses net of all reductions | 1.91% A | 1.93% | 1.97% | 1.94% | 1.99% | 1.94% |
Net investment income (loss) | (1.57)% A | (1.58)% | (.58)% H | (1.24)% | (1.66)% | (1.63)% |
Supplemental Data |
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|
Net assets, end of period (000 omitted) | $ 94,062 | $ 70,017 | $ 55,645 | $ 63,590 | $ 86,974 | $ 82,835 |
Portfolio turnover rate G | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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 January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 | $ 16.60 |
Income from Investment Operations |
|
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|
Net investment income (loss) D | (.06) | (.11) | .06 G | (.04) | (.11) | (.09) |
Net realized and unrealized gain (loss) | 6.61 | 4.12 | (1.07) | (3.54) | 5.30 | (.44) |
Total from investment operations | 6.55 | 4.01 | (1.01) | (3.58) | 5.19 | (.53) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 27.23 | $ 20.68 | $ 16.67 | $ 17.68 | $ 21.26 | $ 16.07 |
Total Return B, C | 31.67% | 24.06% | (5.71)% | (16.84)% | 32.30% | (3.19)% |
Ratios to Average Net Assets E, H |
|
|
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|
Expenses before reductions | .90% A | .92% | .98% | .94% | .93% | .90% |
Expenses net of fee waivers, if any | .90% A | .92% | .98% | .94% | .93% | .90% |
Expenses net of all reductions | .87% A | .90% | .97% | .92% | .92% | .80% |
Net investment income (loss) | (.53)% A | (.55)% | .42% G | (.22)% | (.59)% | (.49)% |
Supplemental Data |
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|
|
Net assets, end of period (000 omitted) | $ 66,618 | $ 42,277 | $ 26,285 | $ 22,021 | $ 21,111 | $ 11,681 |
Portfolio turnover rate F | 157% A | 115% | 225% | 214% | 208% | 258% |
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 Expense ratios reflect 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, 2011 (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 C, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices 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 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 fair 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, market discount, net operating losses, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 177,810,364 |
Gross unrealized depreciation | (13,153,170) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 164,657,194 |
| |
Tax cost | $ 688,681,619 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the SEC which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 $581,494,987 and $551,073,928, 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 Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 450,192 | $ 2,018 |
Class T | .25% | .25% | 478,314 | - |
Class B | .75% | .25% | 152,955 | 114,716 |
Class C | .75% | .25% | 400,133 | 52,069 |
|
|
| $ 1,481,594 | $ 168,803 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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% 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 | $ 37,716 |
Class T | 12,160 |
Class B* | 26,466 |
Class C* | 4,301 |
| $ 80,643 |
* 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.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 534,873 | .30 |
Class T | 288,356 | .30 |
Class B | 45,793 | .30 |
Class C | 118,925 | .30 |
Institutional Class | 67,683 | .26 |
| $ 1,055,630 |
|
* 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 $22,008 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $1,233 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash
Semiannual Report
8. Security Lending - continued
Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $79,986 for the period.
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 1,959,242 | 4,395,059 | $ 46,663,375 | $ 83,404,216 |
Shares redeemed | (1,669,792) | (4,747,519) | (38,043,093) | (89,682,006) |
Net increase (decrease) | 289,450 | (352,460) | $ 8,620,282 | $ (6,277,790) |
Class T |
|
|
|
|
Shares sold | 772,322 | 1,549,777 | $ 17,914,876 | $ 28,544,536 |
Shares redeemed | (879,845) | (2,457,153) | (19,147,967) | (44,605,674) |
Net increase (decrease) | (107,523) | (907,376) | $ (1,233,091) | $ (16,061,138) |
Class B |
|
|
|
|
Shares sold | 67,452 | 364,834 | $ 1,449,774 | $ 6,301,624 |
Shares redeemed | (328,505) | (829,145) | (6,798,835) | (14,327,782) |
Net increase (decrease) | (261,053) | (464,311) | $ (5,349,061) | $ (8,026,158) |
Class C |
|
|
|
|
Shares sold | 532,775 | 985,847 | $ 11,674,548 | $ 17,180,918 |
Shares redeemed | (434,903) | (891,510) | (8,913,220) | (15,514,588) |
Net increase (decrease) | 97,872 | 94,337 | $ 2,761,328 | $ 1,666,330 |
Institutional Class |
|
|
|
|
Shares sold | 698,285 | 1,270,106 | $ 17,067,085 | $ 25,258,423 |
Shares redeemed | (296,712) | (802,290) | (6,871,981) | (15,808,337) |
Net increase (decrease) | 401,573 | 467,816 | $ 10,195,104 | $ 9,450,086 |
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
Fidelity Advisor Utilities 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.26% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,105.00 | $ 6.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.85 | $ 6.41 |
Class T | 1.52% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,103.20 | $ 8.06 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.54 | $ 7.73 |
Class B | 2.01% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.50 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.07 | $ 10.21 |
Class C | 2.01% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,100.60 | $ 10.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.07 | $ 10.21 |
Institutional Class | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,106.80 | $ 5.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.06 | $ 5.19 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Advisor Utilities Fund
Investment Changes (Unaudited)
Top Ten Stocks as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
NextEra Energy, Inc. | 12.0 | 10.5 |
Sempra Energy | 7.4 | 8.7 |
Southern Co. | 7.4 | 1.5 |
ONEOK, Inc. | 6.2 | 0.0 |
Edison International | 6.2 | 0.0 |
PPL Corp. | 5.2 | 6.9 |
ITC Holdings Corp. | 4.9 | 4.7 |
NV Energy, Inc. | 4.9 | 5.0 |
National Fuel Gas Co. New Jersey | 4.8 | 2.1 |
PG&E Corp. | 4.7 | 5.0 |
| 63.7 | |
Top Industries (% of fund's net assets) | |||
As of January 31, 2011 | |||
| Electric Utilities | 46.3% |
|
| Multi-Utilities | 29.3% |
|
| Gas Utilities | 11.0% |
|
| Independent Power Producers & Energy Traders | 8.5% |
|
| Oil, Gas & Consumable Fuels | 3.2% |
|
| All Others* | 1.7% |
|
As of July 31, 2010 | |||
| Electric Utilities | 52.4% |
|
| Multi-Utilities | 37.2% |
|
| Independent Power Producers & Energy Traders | 3.4% |
|
| Oil, Gas & Consumable Fuels | 3.1% |
|
| Gas Utilities | 2.9% |
|
| All Others* | 1.0% |
|
* Includes short-term investments and net other assets. |
Semiannual Report
Fidelity Advisor Utilities Fund
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.5% | |||
Shares | Value | ||
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.2% | |||
Integrated Telecommunication Services - 0.2% | |||
China Unicom (Hong Kong) Ltd. sponsored ADR | 22,300 | $ 367,058 | |
ELECTRIC UTILITIES - 46.3% | |||
Electric Utilities - 46.3% | |||
Edison International | 247,274 | 8,971,101 | |
FirstEnergy Corp. (d) | 90,500 | 3,540,360 | |
ITC Holdings Corp. | 108,844 | 7,151,051 | |
NextEra Energy, Inc. | 327,482 | 17,507,189 | |
NV Energy, Inc. | 497,466 | 7,148,586 | |
Pepco Holdings, Inc. | 106,400 | 1,975,848 | |
Pinnacle West Capital Corp. | 66,901 | 2,723,540 | |
PPL Corp. | 292,118 | 7,533,723 | |
Southern Co. | 286,040 | 10,760,825 | |
| 67,312,223 | ||
GAS UTILITIES - 11.0% | |||
Gas Utilities - 11.0% | |||
National Fuel Gas Co. New Jersey | 102,072 | 6,975,600 | |
ONEOK, Inc. | 153,878 | 9,061,875 | |
| 16,037,475 | ||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 8.5% | |||
Independent Power Producers & Energy Traders - 8.5% | |||
AES Corp. (a) | 312,400 | 3,873,760 | |
Calpine Corp. (a) | 151,800 | 2,166,186 | |
Constellation Energy Group, Inc. | 147,405 | 4,753,811 | |
GenOn Energy, Inc. (a) | 366,497 | 1,517,298 | |
| 12,311,055 | ||
MULTI-UTILITIES - 29.3% | |||
Multi-Utilities - 29.3% | |||
CenterPoint Energy, Inc. | 302,045 | 4,878,027 | |
NiSource, Inc. | 290,400 | 5,407,248 | |
OGE Energy Corp. | 70,187 | 3,220,881 | |
PG&E Corp. | 147,432 | 6,823,153 | |
Public Service Enterprise Group, Inc. | 196,359 | 6,367,922 | |
Sempra Energy | 207,021 | 10,779,583 | |
TECO Energy, Inc. | 100,000 | 1,841,000 | |
Veolia Environnement sponsored ADR (d) | 104,484 | 3,280,798 | |
| 42,598,612 | ||
| |||
Shares | Value | ||
OIL, GAS & CONSUMABLE FUELS - 3.2% | |||
Oil & Gas Exploration & Production - 2.4% | |||
Canacol Energy Ltd. (a) | 353,700 | $ 537,033 | |
Pacific Rubiales Energy Corp. | 84,500 | 2,917,111 | |
| 3,454,144 | ||
Oil & Gas Storage & Transport - 0.8% | |||
SemGroup Corp. Class A (a) | 40,600 | 1,169,280 | |
TOTAL OIL, GAS & CONSUMABLE FUELS | 4,623,424 | ||
TOTAL COMMON STOCKS (Cost $134,449,379) | 143,249,847 | ||
Money Market Funds - 4.0% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.19% (b) | 1,072,789 | 1,072,789 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 4,751,775 | 4,751,775 | |
TOTAL MONEY MARKET FUNDS (Cost $5,824,564) | 5,824,564 | ||
TOTAL INVESTMENT PORTFOLIO - 102.5% (Cost $140,273,943) | 149,074,411 | |
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (3,687,668) | |
NET ASSETS - 100% | $ 145,386,743 | |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 1,064 |
Fidelity Securities Lending Cash Central Fund | 5,230 |
Total | $ 6,294 |
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, 2010, the Fund had a capital loss carryforward of approximately $196,362,484 of which $154,412,532, $13,867,918 and $28,082,034 will expire in fiscal 2011, 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
The Fund intends to elect to defer to its fiscal year ending July 31, 2011 approximately $4,837,964 of losses recognized during the period November 1, 2009 to July 31, 2010. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Advisor Utilities Fund
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $4,691,196) - See accompanying schedule: Unaffiliated issuers (cost $134,449,379) | $ 143,249,847 |
|
Fidelity Central Funds (cost $5,824,564) | 5,824,564 |
|
Total Investments (cost $140,273,943) |
| $ 149,074,411 |
Receivable for investments sold | 5,708,449 | |
Receivable for fund shares sold | 133,090 | |
Dividends receivable | 182,972 | |
Distributions receivable from Fidelity Central Funds | 698 | |
Prepaid expenses | 364 | |
Other receivables | 15,678 | |
Total assets | 155,115,662 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 4,531,875 | |
Payable for fund shares redeemed | 253,121 | |
Accrued management fee | 67,270 | |
Distribution and service plan fees payable | 56,108 | |
Other affiliated payables | 40,106 | |
Other payables and accrued expenses | 28,664 | |
Collateral on securities loaned, at value | 4,751,775 | |
Total liabilities | 9,728,919 | |
|
| |
Net Assets | $ 145,386,743 | |
Net Assets consist of: |
| |
Paid in capital | $ 332,295,315 | |
Distributions in excess of net investment income | (16,018) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (195,693,083) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 8,800,529 | |
Net Assets | $ 145,386,743 | |
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 17.92 | |
|
|
|
Maximum offering price per share (100/94.25 of $17.92) | $ 19.01 | |
Class T: | $ 17.94 | |
|
|
|
Maximum offering price per share (100/96.50 of $17.94) | $ 18.59 | |
Class B: | $ 17.76 | |
|
|
|
Class C: | $ 17.66 | |
|
|
|
Institutional Class: | $ 18.19 | |
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, 2011 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,578,771 |
Interest |
| 1 |
Income from Fidelity Central Funds |
| 6,294 |
Total income |
| 2,585,066 |
|
|
|
Expenses | ||
Management fee | $ 395,595 | |
Transfer agent fees | 216,361 | |
Distribution and service plan fees | 330,334 | |
Accounting and security lending fees | 27,715 | |
Custodian fees and expenses | 10,110 | |
Independent trustees' compensation | 415 | |
Registration fees | 42,098 | |
Audit | 23,292 | |
Legal | 1,405 | |
Miscellaneous | 779 | |
Total expenses before reductions | 1,048,104 | |
Expense reductions | (25,295) | 1,022,809 |
Net investment income (loss) | 1,562,257 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 8,330,121 | |
Foreign currency transactions | (19,363) | |
Total net realized gain (loss) |
| 8,310,758 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,006,286 | |
Assets and liabilities in foreign currencies | 3,519 | |
Total change in net unrealized appreciation (depreciation) | 4,009,805 | |
Net gain (loss) | 12,320,563 | |
Net increase (decrease) in net assets resulting from operations | $ 13,882,820 | |
Statement of Changes in Net Assets
| Six months ended January 31, 2011 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,562,257 | $ 3,071,475 |
Net realized gain (loss) | 8,310,758 | 6,308,221 |
Change in net unrealized appreciation (depreciation) | 4,009,805 | 4,895,678 |
Net increase (decrease) in net assets resulting from operations | 13,882,820 | 14,275,374 |
Distributions to shareholders from net investment income | (2,864,390) | (3,192,017) |
Share transactions - net increase (decrease) | (892,427) | (13,238,224) |
Redemption fees | 472 | 1,956 |
Total increase (decrease) in net assets | 10,126,475 | (2,152,911) |
|
|
|
Net Assets | ||
Beginning of period | 135,260,268 | 137,413,179 |
End of period (including distributions in excess of net investment income of $16,018 and undistributed net investment income of $1,286,115, respectively) | $ 145,386,743 | $ 135,260,268 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 | $ 15.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .21 | .40 | .35 | .24 | .21 | .24 |
Net realized and unrealized gain (loss) | 1.51 | 1.32 | (5.10) | (.38) | 3.56 | 2.06 |
Total from investment operations | 1.72 | 1.72 | (4.75) | (.14) | 3.77 | 2.30 |
Distributions from net investment income | (.39) | (.40) | (.26) | (.32) | (.23) | (.27) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.92 | $ 16.59 | $ 15.27 | $ 20.28 | $ 20.74 | $ 17.20 |
Total Return B, C, D | 10.50% | 11.42% | (23.44)% | (.82)% | 22.14% | 15.38% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.26% A | 1.26% | 1.26% | 1.21% | 1.27% | 1.34% |
Expenses net of fee waivers, if any | 1.26% A | 1.26% | 1.26% | 1.21% | 1.27% | 1.34% |
Expenses net of all reductions | 1.22% A | 1.22% | 1.26% | 1.21% | 1.26% | 1.32% |
Net investment income (loss) | 2.43% A | 2.49% | 2.37% | 1.11% | 1.04% | 1.51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 70,940 | $ 64,890 | $ 66,064 | $ 105,219 | $ 94,842 | $ 40,599 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 | $ 15.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .19 | .35 | .31 | .18 | .15 | .19 |
Net realized and unrealized gain (loss) | 1.51 | 1.33 | (5.10) | (.39) | 3.56 | 2.08 |
Total from investment operations | 1.70 | 1.68 | (4.79) | (.21) | 3.71 | 2.27 |
Distributions from net investment income | (.35) | (.36) | (.20) | (.24) | (.18) | (.19) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.94 | $ 16.59 | $ 15.27 | $ 20.26 | $ 20.71 | $ 17.18 |
Total Return B, C, D | 10.32% | 11.13% | (23.61)% | (1.11)% | 21.74% | 15.20% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.52% A | 1.52% | 1.52% | 1.47% | 1.54% | 1.60% |
Expenses net of fee waivers, if any | 1.52% A | 1.52% | 1.52% | 1.47% | 1.54% | 1.60% |
Expenses net of all reductions | 1.49% A | 1.49% | 1.52% | 1.47% | 1.54% | 1.58% |
Net investment income (loss) | 2.16% A | 2.23% | 2.11% | .84% | .76% | 1.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 34,842 | $ 33,651 | $ 33,989 | $ 54,346 | $ 62,592 | $ 52,128 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 | $ 14.83 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .27 | .24 | .08 | .05 | .12 |
Net realized and unrealized gain (loss) | 1.50 | 1.31 | (5.04) | (.39) | 3.52 | 2.03 |
Total from investment operations | 1.64 | 1.58 | (4.80) | (.31) | 3.57 | 2.15 |
Distributions from net investment income | (.26) | (.28) | (.13) | (.08) | (.07) | (.08) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.76 | $ 16.38 | $ 15.08 | $ 20.01 | $ 20.40 | $ 16.90 |
Total Return B, C, D | 10.05% | 10.56% | (23.97)% | (1.59)% | 21.18% | 14.57% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.01% A | 2.01% | 2.01% | 1.96% | 2.04% | 2.09% |
Expenses net of fee waivers, if any | 2.01% A | 2.01% | 2.01% | 1.96% | 2.04% | 2.09% |
Expenses net of all reductions | 1.98% A | 1.98% | 2.01% | 1.95% | 2.03% | 2.06% |
Net investment income (loss) | 1.68% A | 1.74% | 1.62% | .36% | .27% | .76% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 8,366 | $ 8,794 | $ 10,634 | $ 20,747 | $ 43,845 | $ 65,959 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 | $ 14.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .14 | .27 | .24 | .08 | .06 | .13 |
Net realized and unrealized gain (loss) | 1.49 | 1.30 | (5.02) | (.39) | 3.51 | 2.04 |
Total from investment operations | 1.63 | 1.57 | (4.78) | (.31) | 3.57 | 2.17 |
Distributions from net investment income | (.27) | (.29) | (.13) | (.14) | (.10) | (.10) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, end of period | $ 17.66 | $ 16.30 | $ 15.02 | $ 19.93 | $ 20.38 | $ 16.91 |
Total Return B, C, D | 10.06% | 10.54% | (23.96)% | (1.58)% | 21.23% | 14.72% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.01% A | 2.01% | 2.01% | 1.95% | 1.99% | 2.02% |
Expenses net of fee waivers, if any | 2.01% A | 2.01% | 2.01% | 1.95% | 1.99% | 2.02% |
Expenses net of all reductions | 1.97% A | 1.97% | 2.01% | 1.95% | 1.99% | 2.00% |
Net investment income (loss) | 1.68% A | 1.74% | 1.62% | .36% | .32% | .83% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 23,963 | $ 21,415 | $ 22,352 | $ 37,387 | $ 43,292 | $ 32,823 |
Portfolio turnover rate G | 223% A | 216% | 247% | 77% | 118% | 64% |
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.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 | $ 15.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .24 | .44 | .39 | .31 | .29 | .30 |
Net realized and unrealized gain (loss) | 1.54 | 1.35 | (5.17) | (.38) | 3.58 | 2.10 |
Total from investment operations | 1.78 | 1.79 | (4.78) | (.07) | 3.87 | 2.40 |
Distributions from net investment income | (.44) | (.45) | (.23) | (.36) | (.30) | (.33) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 18.19 | $ 16.85 | $ 15.51 | $ 20.52 | $ 20.95 | $ 17.38 |
Total Return B, C | 10.68% | 11.66% | (23.24)% | (.49)% | 22.54% | 15.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.02% A | 1.00% | 1.00% | .91% | .92% | .94% |
Expenses net of fee waivers, if any | 1.02% A | 1.00% | 1.00% | .91% | .92% | .94% |
Expenses net of all reductions | .98% A | .97% | 1.00% | .90% | .92% | .92% |
Net investment income (loss) | 2.67% A | 2.75% | 2.63% | 1.41% | 1.39% | 1.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,275 | $ 6,511 | $ 4,373 | $ 5,704 | $ 12,822 | $ 6,479 |
Portfolio turnover rate F | 223% A | 216% | 247% | 77% | 118% | 64% |
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, 2011 (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 C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of January 31, 2011 is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds ,including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, capital loss carryforwards, expiring 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 | $ 9,132,610 |
Gross unrealized depreciation | (2,378,134) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 6,754,476 |
| |
Tax cost | $ 142,319,935 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .75% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $155,463,723 and $158,438,363, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total | Retained |
Class A | -% | .25% | $ 85,837 | $ - |
Class T | .25% | .25% | 86,376 | - |
Class B | .75% | .25% | 43,886 | 32,914 |
Class C | .75% | .25% | 114,235 | 11,696 |
|
|
| $ 330,334 | $ 44,610 |
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% 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 | $ 13,218 |
Class T | 3,822 |
Class B* | 8,231 |
Class C* | 402 |
| $ 25,673 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 103,655 | .30 |
Class T | 54,494 | .32 |
Class B | 13,305 | .30 |
Class C | 34,397 | .30 |
Institutional Class | 10,510 | .31 |
| $ 216,361 |
|
* 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 $4,777 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $254 and is reflected in Miscellaneous expenses 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 through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $5,230. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $25,295 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 | $ 1,536,373 | $ 1,700,301 |
Class T | 680,070 | 782,544 |
Class B | 128,700 | 184,067 |
Class C | 350,529 | 413,366 |
Institutional Class | 168,718 | 111,739 |
Total | $ 2,864,390 | $ 3,192,017 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class A |
|
|
|
|
Shares sold | 375,349 | 582,593 | $ 6,535,738 | $ 9,269,210 |
Reinvestment of distributions | 78,008 | 96,455 | 1,339,641 | 1,532,370 |
Shares redeemed | (406,189) | (1,092,389) | (7,095,467) | (17,388,823) |
Net increase (decrease) | 47,168 | (413,341) | $ 779,912 | $ (6,587,243) |
Class T |
|
|
|
|
Shares sold | 110,020 | 214,231 | $ 1,929,184 | $ 3,421,542 |
Reinvestment of distributions | 37,445 | 46,549 | 644,378 | 741,068 |
Shares redeemed | (234,387) | (457,353) | (4,084,224) | (7,262,506) |
Net increase (decrease) | (86,922) | (196,573) | $ (1,510,662) | $ (3,099,896) |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended January 31, 2011 | Year ended | Six months ended January 31, 2011 | Year ended | |
Class B |
|
|
|
|
Shares sold | 31,033 | 89,148 | $ 529,223 | $ 1,411,608 |
Reinvestment of distributions | 6,858 | 10,582 | 116,904 | 167,069 |
Shares redeemed | (103,837) | (267,950) | (1,791,517) | (4,203,072) |
Net increase (decrease) | (65,946) | (168,220) | $ (1,145,390) | $ (2,624,395) |
Class C |
|
|
|
|
Shares sold | 176,279 | 188,570 | $ 3,027,658 | $ 2,992,972 |
Reinvestment of distributions | 15,668 | 20,486 | 265,763 | 322,145 |
Shares redeemed | (149,211) | (383,514) | (2,558,776) | (5,996,156) |
Net increase (decrease) | 42,736 | (174,458) | $ 734,645 | $ (2,681,039) |
Institutional Class |
|
|
|
|
Shares sold | 75,459 | 287,925 | $ 1,339,176 | $ 4,699,845 |
Reinvestment of distributions | 7,398 | 5,221 | 128,959 | 84,041 |
Shares redeemed | (69,176) | (188,687) | (1,219,067) | (3,029,537) |
Net increase (decrease) | 13,681 | 104,459 | $ 249,068 | $ 1,754,349 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank †
New York, NY
Brown Brothers Harriman & Co. ††
Boston, MA
State Street Bank and Trust †††
Quincy, MA
† Custodian for Fidelity Advisor Consumer Discretionary Fund,
Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund,
Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund, and
Fidelity Advisor Utilities Fund.
†† Custodian for Fidelity Advisor Energy Fund.
††† Custodian for Fidelity Advisor Biotechnology Fund, Fidelity Advisor
Communications Equipment Fund, and Fidelity Advisor Electronics Fund.
AFOCI-USAN-0311
1.789280.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
January 31, 2011
(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, as well as financial highlights. | |
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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,150.20 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,148.40 | $ 7.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class B | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.40 | $ 10.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.20 | $ 10.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,151.50 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.37 | $ 4.89 |
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, 2011 | ||
| % of fund's | % of fund's net assets |
Simon Property Group, Inc. | 10.0 | 10.6 |
Public Storage | 7.4 | 7.6 |
Ventas, Inc. | 5.5 | 5.5 |
ProLogis Trust | 5.4 | 3.9 |
Digital Realty Trust, Inc. | 4.4 | 3.6 |
SL Green Realty Corp. | 4.3 | 3.9 |
Boston Properties, Inc. | 4.0 | 3.4 |
Vornado Realty Trust | 3.7 | 5.5 |
Alexandria Real Estate Equities, Inc. | 3.7 | 3.3 |
Mid-America Apartment Communities, Inc. | 3.2 | 3.2 |
| 51.6 | |
Top Five REIT Sectors as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
REITs - Office Buildings | 15.2 | 14.9 |
REITs - Malls | 14.9 | 15.9 |
REITs - Apartments | 14.7 | 15.1 |
REITs - Industrial Buildings | 13.6 | 12.3 |
REITs - Health Care Facilities | 10.6 | 12.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2011* | As of July 31, 2010** | ||||||
 | Stocks 97.6% |
| | Stocks 97.4% |
| ||
 | Convertible |
| | Convertible |
| ||
 | Short-Term |
| | Short-Term |
| ||
* Foreign investments | 1.2% |
| ** Foreign investments | 1.4% |
| ||
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES - 0.3% | |||
Security & Alarm Services - 0.3% | |||
The Geo Group, Inc. (a) | 51,884 | $ 1,233,283 | |
HEALTH CARE PROVIDERS & SERVICES - 3.3% | |||
Health Care Facilities - 3.3% | |||
Brookdale Senior Living, Inc. (a) | 257,386 | 5,623,884 | |
Emeritus Corp. (a) | 361,165 | 6,898,252 | |
Sunrise Senior Living, Inc. (a) | 281,192 | 2,249,536 | |
TOTAL HEALTH CARE FACILITIES | 14,771,672 | ||
REAL ESTATE INVESTMENT TRUSTS - 90.7% | |||
REITs - Apartments - 14.7% | |||
American Campus Communities, Inc. | 32,116 | 1,038,631 | |
AvalonBay Communities, Inc. | 40,123 | 4,651,459 | |
Camden Property Trust (SBI) | 44,300 | 2,455,549 | |
Colonial Properties Trust (SBI) | 50,500 | 969,095 | |
Education Realty Trust, Inc. | 1,066,711 | 8,320,346 | |
Equity Residential (SBI) | 254,455 | 13,788,916 | |
Essex Property Trust, Inc. (d) | 109,707 | 12,726,012 | |
Mid-America Apartment Communities, Inc. | 220,002 | 14,025,128 | |
Post Properties, Inc. | 191,382 | 7,086,875 | |
TOTAL REITS - APARTMENTS | 65,062,011 | ||
REITs - Factory Outlets - 0.8% | |||
Tanger Factory Outlet Centers, Inc. | 128,700 | 3,360,357 | |
REITs - Health Care Facilities - 10.6% | |||
HCP, Inc. | 354,311 | 13,141,395 | |
Healthcare Realty Trust, Inc. | 256,169 | 5,379,549 | |
Omega Healthcare Investors, Inc. | 176,784 | 3,938,748 | |
Ventas, Inc. | 442,150 | 24,521,639 | |
TOTAL REITS - HEALTH CARE FACILITIES | 46,981,331 | ||
REITs - Hotels - 7.0% | |||
Chesapeake Lodging Trust | 209,844 | 3,840,145 | |
DiamondRock Hospitality Co. (a) | 1,023,744 | 12,418,015 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Hotels - continued | |||
Host Hotels & Resorts, Inc. | 468,153 | $ 8,665,512 | |
Sunstone Hotel Investors, Inc. (a) | 565,750 | 5,776,308 | |
TOTAL REITS - HOTELS | 30,699,980 | ||
REITs - Industrial Buildings - 13.6% | |||
DCT Industrial Trust, Inc. | 496,600 | 2,751,164 | |
First Industrial Realty Trust, Inc. (a) | 88,600 | 905,492 | |
ProLogis Trust | 1,613,102 | 24,067,482 | |
Public Storage | 298,041 | 32,480,508 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 60,204,646 | ||
REITs - Malls - 14.9% | |||
CBL & Associates Properties, Inc. | 610,844 | 10,420,999 | |
Simon Property Group, Inc. | 435,012 | 44,131,968 | |
The Macerich Co. | 234,493 | 11,410,429 | |
TOTAL REITS - MALLS | 65,963,396 | ||
REITs - Management/Investment - 5.1% | |||
American Assets Trust, Inc. (a) | 50,200 | 1,068,758 | |
Digital Realty Trust, Inc. (d) | 356,968 | 19,419,059 | |
Weyerhaeuser Co. | 86,949 | 2,015,478 | |
TOTAL REITS - MANAGEMENT/INVESTMENT | 22,503,295 | ||
REITs - Office Buildings - 15.2% | |||
Alexandria Real Estate Equities, Inc. | 215,056 | 16,567,914 | |
Boston Properties, Inc. | 186,520 | 17,601,892 | |
Brandywine Realty Trust (SBI) | 551,700 | 6,399,720 | |
Highwoods Properties, Inc. (SBI) | 234,756 | 7,692,954 | |
SL Green Realty Corp. | 261,800 | 19,048,568 | |
TOTAL REITS - OFFICE BUILDINGS | 67,311,048 | ||
REITs - Shopping Centers - 8.8% | |||
Acadia Realty Trust (SBI) | 323,000 | 5,969,040 | |
Developers Diversified Realty Corp. | 383,089 | 5,210,010 | |
Excel Trust, Inc. | 76,900 | 982,782 | |
Glimcher Realty Trust | 232,200 | 2,045,682 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Shopping Centers - continued | |||
Kimco Realty Corp. | 339,100 | $ 6,134,319 | |
Kite Realty Group Trust | 402,946 | 2,127,555 | |
Vornado Realty Trust | 188,358 | 16,592,456 | |
TOTAL REITS - SHOPPING CENTERS | 39,061,844 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 401,147,908 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.3% | |||
Diversified Real Estate Activities - 0.4% | |||
Beni Stabili SpA Siiq | 480,300 | 457,641 | |
Coresite Realty Corp. | 88,307 | 1,268,972 | |
TOTAL DIVERSIFIED REAL ESTATE ACTIVITIES | 1,726,613 | ||
Real Estate Development - 0.1% | |||
Helical Bar PLC | 90,300 | 408,432 | |
Real Estate Operating Companies - 1.4% | |||
Brookfield Properties Corp. (d) | 252,030 | 4,423,301 | |
Forest City Enterprises, Inc. Class A (a)(d) | 112,367 | 1,900,126 | |
TOTAL REAL ESTATE OPERATING COMPANIES | 6,323,427 | ||
Real Estate Services - 1.4% | |||
CB Richard Ellis Group, Inc. Class A (a) | 270,662 | 6,005,990 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 14,464,462 | ||
TOTAL COMMON STOCKS (Cost $369,701,649) | 431,617,325 | ||
Convertible Preferred Stocks - 0.1% | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1% | |||
Real Estate Services - 0.1% | |||
Grubb & Ellis Co. 12.00% (e) | 8,100 | $ 720,171 | |
Convertible Bonds - 0.1% | |||
Principal |
| ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1% | |||
Real Estate Services - 0.1% | |||
Grubb & Ellis Co. 7.95% 5/1/15 (e) | $ 340,000 | 301,750 | |
Money Market Funds - 6.8% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 9,224,761 | 9,224,761 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 20,791,275 | 20,791,275 | |
TOTAL MONEY MARKET FUNDS (Cost $30,016,036) | 30,016,036 | ||
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $400,867,685) | 462,655,282 | ||
NET OTHER ASSETS (LIABILITIES) - (4.6)% | (20,484,240) | ||
NET ASSETS - 100% | $ 442,171,042 | ||
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $1,021,921 or 0.2% of net assets. |
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 | $ 9,855 |
Fidelity Securities Lending Cash Central Fund | 31,551 |
Total | $ 41,406 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 431,617,325 | $ 431,617,325 | $ - | $ - |
Convertible Preferred Stocks | 720,171 | - | 720,171 | - |
Convertible Bonds | 301,750 | - | 301,750 | - |
Money Market Funds | 30,016,036 | 30,016,036 | - | - |
Total Investments in Securities: | $ 462,655,282 | $ 461,633,361 | $ 1,021,921 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $36,010,469 of which $15,429,654 and $20,580,815 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $20,549,892) - Unaffiliated issuers (cost $370,851,649) | $ 432,639,246 |
|
Fidelity Central Funds (cost $30,016,036) | 30,016,036 |
|
Total Investments (cost $400,867,685) |
| $ 462,655,282 |
Receivable for investments sold | 4,040,062 | |
Receivable for fund shares sold | 963,799 | |
Dividends receivable | 344,617 | |
Interest receivable | 6,795 | |
Distributions receivable from Fidelity Central Funds | 6,093 | |
Prepaid expenses | 1,002 | |
Other receivables | 7,321 | |
Total assets | 468,024,971 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,821,663 | |
Payable for fund shares redeemed | 785,182 | |
Accrued management fee | 202,315 | |
Distribution and service plan fees payable | 101,068 | |
Other affiliated payables | 119,447 | |
Other payables and accrued expenses | 32,979 | |
Collateral on securities loaned, at value | 20,791,275 | |
Total liabilities | 25,853,929 | |
|
| |
Net Assets | $ 442,171,042 | |
Net Assets consist of: |
| |
Paid in capital | $ 403,523,116 | |
Distributions in excess of net investment income | (1,620,002) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (21,519,669) | |
Net unrealized appreciation (depreciation) on investments | 61,787,597 | |
Net Assets | $ 442,171,042 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 16.97 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.97) | $ 18.01 | |
Class T: | $ 16.99 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.99) | $ 17.61 | |
Class B: | $ 16.85 | |
|
|
|
Class C: | $ 16.83 | |
|
|
|
Institutional Class: | $ 17.06 | |
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
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,615,399 |
Interest |
| 13,615 |
Income from Fidelity Central Funds |
| 41,406 |
Total income |
| 3,670,420 |
|
|
|
Expenses | ||
Management fee | $ 1,183,538 | |
Transfer agent fees | 637,967 | |
Distribution and service plan fees | 567,030 | |
Accounting and security lending fees | 84,379 | |
Custodian fees and expenses | 17,093 | |
Independent trustees' compensation | 1,168 | |
Registration fees | 73,243 | |
Audit | 25,026 | |
Legal | 1,157 | |
Miscellaneous | 2,127 | |
Total expenses before reductions | 2,592,728 | |
Expense reductions | (12,628) | 2,580,100 |
Net investment income (loss) | 1,090,320 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 29,930,314 | |
Foreign currency transactions | (5,299) | |
Total net realized gain (loss) |
| 29,925,015 |
Change in net unrealized appreciation (depreciation) on investment securities | 27,504,779 | |
Net gain (loss) | 57,429,794 | |
Net increase (decrease) in net assets resulting from operations | $ 58,520,114 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,090,320 | $ 3,902,914 |
Net realized gain (loss) | 29,925,015 | 36,224,187 |
Change in net unrealized appreciation (depreciation) | 27,504,779 | 74,426,342 |
Net increase (decrease) in net assets resulting | 58,520,114 | 114,553,443 |
Distributions to shareholders from net investment income | (3,454,822) | (3,478,958) |
Share transactions - net increase (decrease) | (1,333,125) | 98,330,995 |
Total increase (decrease) in net assets | 53,732,167 | 209,405,480 |
|
|
|
Net Assets | ||
Beginning of period | 388,438,875 | 179,033,395 |
End of period (including distributions in excess of net investment income of $1,620,002 and undistributed net investment income of $744,500, respectively) | $ 442,171,042 | $ 388,438,875 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 |
Income from Investment Operations |
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Net investment income (loss) E | .04 | .19 | .27 | .30 | .18 | .29 |
Net realized and unrealized gain (loss) | 2.18 | 5.46 | (6.86) | (1.24) | (.17) | 2.85 |
Total from investment operations | 2.22 | 5.65 | (6.59) | (.94) | .01 | 3.14 |
Distributions from net investment income | (.13) | (.18) | (.36) | (.26) | (.18) | (.23) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.13) | (.18) | (.39) | (1.34) I | (1.68) | (1.03) |
Net asset value, end of period | $ 16.97 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 |
Total Return B, C, D | 15.02% | 60.38% | (40.19)% | (5.66)% | (.65)% | 18.32% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.20% A | 1.23% | 1.27% | 1.22% | 1.25% | 1.29% |
Expenses net of fee waivers, if any | 1.20% A | 1.23% | 1.25% | 1.22% | 1.25% | 1.25% |
Expenses net of all reductions | 1.20% A | 1.22% | 1.25% | 1.21% | 1.25% | 1.24% |
Net investment income (loss) | .53% A | 1.45% | 2.73% | 1.71% | .81% | 1.59% |
Supplemental Data |
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Net assets, | $ 148,859 | $ 117,929 | $ 62,422 | $ 109,442 | $ 117,831 | $ 85,000 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.34 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 |
Income from Investment Operations |
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Net investment income (loss) E | .02 | .15 | .25 | .26 | .12 | .24 |
Net realized and unrealized gain (loss) | 2.18 | 5.47 | (6.87) | (1.24) | (.16) | 2.84 |
Total from investment operations | 2.20 | 5.62 | (6.62) | (.98) | (.04) | 3.08 |
Distributions from net investment income | (.11) | (.14) | (.33) | (.17) | (.13) | (.20) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.11) | (.14) | (.36) | (1.26) I | (1.63) | (1.00) |
Net asset value, end of period | $ 16.99 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 |
Total Return B, C, D | 14.84% | 60.02% | (40.33)% | (5.88)% | (.89)% | 17.98% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.46% A | 1.49% | 1.54% | 1.47% | 1.50% | 1.55% |
Expenses net of fee waivers, if any | 1.46% A | 1.49% | 1.50% | 1.47% | 1.50% | 1.50% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.50% | 1.47% | 1.49% | 1.49% |
Net investment income (loss) | .28% A | 1.19% | 2.48% | 1.45% | .57% | 1.34% |
Supplemental Data |
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Net assets, | $ 70,697 | $ 59,529 | $ 40,276 | $ 81,938 | $ 100,621 | $ 91,224 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.26 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 |
Income from Investment Operations |
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Net investment income (loss) E | (.02) | .09 | .20 | .17 | .01 | .15 |
Net realized and unrealized gain (loss) | 2.16 | 5.42 | (6.81) | (1.23) | (.16) | 2.83 |
Total from investment operations | 2.14 | 5.51 | (6.61) | (1.06) | (.15) | 2.98 |
Distributions from net investment income | (.06) | (.09) | (.27) | (.10) | (.05) | (.15) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.48) | (.80) |
Total distributions | (.06) | (.09) | (.30) | (1.19) I | (1.53) | (.95) |
Net asset value, end of period | $ 16.85 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 |
Total Return B, C, D | 14.54% | 59.14% | (40.60)% | (6.37)% | (1.45)% | 17.42% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.96% A | 1.98% | 2.04% | 1.96% | 2.02% | 2.05% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 2.00% | 1.96% | 2.00% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.97% | 2.00% | 1.96% | 2.00% | 1.98% |
Net investment income (loss) | (.22)% A | .70% | 1.98% | .96% | .07% | .84% |
Supplemental Data |
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Net assets, | $ 12,329 | $ 12,078 | $ 7,933 | $ 16,879 | $ 25,114 | $ 27,397 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.19 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 |
Income from Investment Operations |
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Net investment income (loss) E | (.02) | .09 | .19 | .17 | .01 | .15 |
Net realized and unrealized gain (loss) | 2.16 | 5.43 | (6.81) | (1.23) | (.16) | 2.84 |
Total from investment operations | 2.14 | 5.52 | (6.62) | (1.06) | (.15) | 2.99 |
Distributions from net investment income | (.07) | (.10) | (.27) | (.11) | (.05) | (.15) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.07) | (.10) | (.30) | (1.19) I | (1.55) | (.95) |
Net asset value, end of period | $ 16.83 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 |
Total Return B, C, D | 14.52% | 59.28% | (40.64)% | (6.35)% | (1.45)% | 17.46% |
Ratios to Average Net Assets F, H |
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Expenses before reductions | 1.96% A | 1.98% | 2.01% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 2.00% | 1.96% | 2.00% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.97% | 2.00% | 1.96% | 2.00% | 1.98% |
Net investment income (loss) | (.22)% A | .71% | 1.98% | .96% | .06% | .84% |
Supplemental Data |
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Net assets, | $ 39,293 | $ 31,204 | $ 13,226 | $ 24,984 | $ 36,854 | $ 36,669 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.19 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 |
Income from Investment Operations |
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Net investment income (loss) D | .06 | .23 | .30 | .34 | .24 | .35 |
Net realized and unrealized gain (loss) | 2.19 | 5.47 | (6.90) | (1.23) | (.17) | 2.85 |
Total from investment operations | 2.25 | 5.70 | (6.60) | (.89) | .07 | 3.20 |
Distributions from net investment income | (.15) | (.20) | (.38) | (.35) | (.24) | (.26) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.15) | (.20) | (.41) | (1.44) H | (1.74) | (1.06) |
Net asset value, end of period | $ 17.06 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 |
Total Return B, C | 15.15% | 60.75% | (40.03)% | (5.39)% | (.37)% | 18.61% |
Ratios to Average Net Assets E, G |
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Expenses before reductions | .96% A | .97% | 1.01% | .95% | .98% | .94% |
Expenses net of fee waivers, if any | .96% A | .97% | 1.00% | .95% | .98% | .94% |
Expenses net of all reductions | .95% A | .96% | 1.00% | .95% | .97% | .92% |
Net investment income (loss) | .78% A | 1.71% | 2.98% | 1.97% | 1.09% | 1.90% |
Supplemental Data |
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Net assets, | $ 170,993 | $ 167,699 | $ 55,177 | $ 72,780 | $ 12,259 | $ 7,152 |
Portfolio turnover rate F | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.44 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, 2011 (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 C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 71,382,199 |
Gross unrealized depreciation | (20,822,122) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 50,560,077 |
| |
Tax cost | $ 412,095,205 |
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 $134,133,829 and $135,240,529, 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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 166,179 | $ 3,494 |
Class T | .25% | .25% | 164,784 | - |
Class B | .75% | .25% | 61,446 | 46,085 |
Class C | .75% | .25% | 174,621 | 39,200 |
|
|
| $ 567,030 | $ 88,779 |
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% 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 | $ 27,286 |
Class T | 5,241 |
Class B* | 15,402 |
Class C* | 1,766 |
| $ 49,695 |
* 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, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 198,478 | .30 |
Class T | 100,622 | .31 |
Class B | 18,476 | .30 |
Class C | 52,249 | .30 |
Institutional Class | 268,142 | .30 |
| $ 637,967 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,493 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $746 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,339,200. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $31,551, including $1,906 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $12,628 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 1,134,664 | $ 1,234,313 |
Class T | 470,285 | 586,319 |
Class B | 48,095 | 73,937 |
Class C | 150,708 | 151,383 |
Institutional Class | 1,651,070 | 1,433,006 |
Total | $ 3,454,822 | $ 3,478,958 |
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 | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 2,248,264 | 3,838,345 | $ 35,535,246 | $ 50,713,463 |
Reinvestment of distributions | 65,899 | 94,331 | 1,031,847 | 1,168,282 |
Shares redeemed | (1,464,548) | (2,642,928) | (23,191,294) | (33,936,194) |
Net increase (decrease) | 849,615 | 1,289,748 | $ 13,375,799 | $ 17,945,551 |
Class T |
|
|
|
|
Shares sold | 947,671 | 1,600,698 | $ 14,944,020 | $ 21,094,229 |
Reinvestment of distributions | 29,190 | 46,490 | 457,659 | 571,730 |
Shares redeemed | (810,845) | (1,927,214) | (12,858,886) | (25,063,300) |
Net increase (decrease) | 166,016 | (280,026) | $ 2,542,793 | $ (3,397,341) |
Class B |
|
|
|
|
Shares sold | 62,504 | 214,509 | $ 961,674 | $ 2,825,349 |
Reinvestment of distributions | 2,787 | 5,594 | 43,338 | 67,395 |
Shares redeemed | (151,360) | (251,258) | (2,374,144) | (3,248,064) |
Net increase (decrease) | (86,069) | (31,155) | $ (1,369,132) | $ (355,320) |
Class C |
|
|
|
|
Shares sold | 513,489 | 1,050,192 | $ 8,028,597 | $ 14,008,372 |
Reinvestment of distributions | 8,843 | 11,301 | 137,445 | 138,548 |
Shares redeemed | (302,208) | (362,839) | (4,719,368) | (4,691,785) |
Net increase (decrease) | 220,124 | 698,654 | $ 3,446,674 | $ 9,455,135 |
Institutional Class |
|
|
|
|
Shares sold | 2,453,225 | 7,306,218 | $ 38,563,767 | $ 99,355,047 |
Reinvestment of distributions | 72,024 | 57,970 | 1,131,385 | 738,990 |
Shares redeemed | (3,709,560) | (1,990,258) | (59,024,411) | (25,411,067) |
Net increase (decrease) | (1,184,311) | 5,373,930 | $ (19,329,259) | $ 74,682,970 |
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.
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-0311 1.789730.108
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2011
(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, as well as financial highlights. | |
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, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_James_C_Curvey)
Dear Shareholder:
Following a year in which the investment environment was volatile but generally supportive of most major asset classes, 2011 began on a positive note. U.S. equities gained ground in January, reaching their highest point since August 2008, amid indications the U.S. economy had turned a corner. Still, questions remained about the longer-term outlook, most notably persistently high unemployment. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
(The acting chairman's signature appears here.)
James C. Curvey
Acting Chairman
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, 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, 2010 to January 31, 2011).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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 | 1.20% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,150.20 | $ 6.50 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.16 | $ 6.11 |
Class T | 1.46% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,148.40 | $ 7.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.43 |
Class B | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.40 | $ 10.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Class C | 1.96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,145.20 | $ 10.60 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.32 | $ 9.96 |
Institutional Class | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,151.50 | $ 5.21 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.37 | $ 4.89 |
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, 2011 | ||
| % of fund's | % of fund's net assets |
Simon Property Group, Inc. | 10.0 | 10.6 |
Public Storage | 7.4 | 7.6 |
Ventas, Inc. | 5.5 | 5.5 |
ProLogis Trust | 5.4 | 3.9 |
Digital Realty Trust, Inc. | 4.4 | 3.6 |
SL Green Realty Corp. | 4.3 | 3.9 |
Boston Properties, Inc. | 4.0 | 3.4 |
Vornado Realty Trust | 3.7 | 5.5 |
Alexandria Real Estate Equities, Inc. | 3.7 | 3.3 |
Mid-America Apartment Communities, Inc. | 3.2 | 3.2 |
| 51.6 | |
Top Five REIT Sectors as of January 31, 2011 | ||
| % of fund's | % of fund's net assets |
REITs - Office Buildings | 15.2 | 14.9 |
REITs - Malls | 14.9 | 15.9 |
REITs - Apartments | 14.7 | 15.1 |
REITs - Industrial Buildings | 13.6 | 12.3 |
REITs - Health Care Facilities | 10.6 | 12.1 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2011* | As of July 31, 2010** | ||||||
| Stocks 97.6% |
| | Stocks 97.4% |
| ||
| Convertible |
| | Convertible |
| ||
| Short-Term |
| | Short-Term |
| ||
* Foreign investments | 1.2% |
| ** Foreign investments | 1.4% |
| ||
Semiannual Report
Investments January 31, 2011 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% | |||
Shares | Value | ||
COMMERCIAL SERVICES & SUPPLIES - 0.3% | |||
Security & Alarm Services - 0.3% | |||
The Geo Group, Inc. (a) | 51,884 | $ 1,233,283 | |
HEALTH CARE PROVIDERS & SERVICES - 3.3% | |||
Health Care Facilities - 3.3% | |||
Brookdale Senior Living, Inc. (a) | 257,386 | 5,623,884 | |
Emeritus Corp. (a) | 361,165 | 6,898,252 | |
Sunrise Senior Living, Inc. (a) | 281,192 | 2,249,536 | |
TOTAL HEALTH CARE FACILITIES | 14,771,672 | ||
REAL ESTATE INVESTMENT TRUSTS - 90.7% | |||
REITs - Apartments - 14.7% | |||
American Campus Communities, Inc. | 32,116 | 1,038,631 | |
AvalonBay Communities, Inc. | 40,123 | 4,651,459 | |
Camden Property Trust (SBI) | 44,300 | 2,455,549 | |
Colonial Properties Trust (SBI) | 50,500 | 969,095 | |
Education Realty Trust, Inc. | 1,066,711 | 8,320,346 | |
Equity Residential (SBI) | 254,455 | 13,788,916 | |
Essex Property Trust, Inc. (d) | 109,707 | 12,726,012 | |
Mid-America Apartment Communities, Inc. | 220,002 | 14,025,128 | |
Post Properties, Inc. | 191,382 | 7,086,875 | |
TOTAL REITS - APARTMENTS | 65,062,011 | ||
REITs - Factory Outlets - 0.8% | |||
Tanger Factory Outlet Centers, Inc. | 128,700 | 3,360,357 | |
REITs - Health Care Facilities - 10.6% | |||
HCP, Inc. | 354,311 | 13,141,395 | |
Healthcare Realty Trust, Inc. | 256,169 | 5,379,549 | |
Omega Healthcare Investors, Inc. | 176,784 | 3,938,748 | |
Ventas, Inc. | 442,150 | 24,521,639 | |
TOTAL REITS - HEALTH CARE FACILITIES | 46,981,331 | ||
REITs - Hotels - 7.0% | |||
Chesapeake Lodging Trust | 209,844 | 3,840,145 | |
DiamondRock Hospitality Co. (a) | 1,023,744 | 12,418,015 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Hotels - continued | |||
Host Hotels & Resorts, Inc. | 468,153 | $ 8,665,512 | |
Sunstone Hotel Investors, Inc. (a) | 565,750 | 5,776,308 | |
TOTAL REITS - HOTELS | 30,699,980 | ||
REITs - Industrial Buildings - 13.6% | |||
DCT Industrial Trust, Inc. | 496,600 | 2,751,164 | |
First Industrial Realty Trust, Inc. (a) | 88,600 | 905,492 | |
ProLogis Trust | 1,613,102 | 24,067,482 | |
Public Storage | 298,041 | 32,480,508 | |
TOTAL REITS - INDUSTRIAL BUILDINGS | 60,204,646 | ||
REITs - Malls - 14.9% | |||
CBL & Associates Properties, Inc. | 610,844 | 10,420,999 | |
Simon Property Group, Inc. | 435,012 | 44,131,968 | |
The Macerich Co. | 234,493 | 11,410,429 | |
TOTAL REITS - MALLS | 65,963,396 | ||
REITs - Management/Investment - 5.1% | |||
American Assets Trust, Inc. (a) | 50,200 | 1,068,758 | |
Digital Realty Trust, Inc. (d) | 356,968 | 19,419,059 | |
Weyerhaeuser Co. | 86,949 | 2,015,478 | |
TOTAL REITS - MANAGEMENT/INVESTMENT | 22,503,295 | ||
REITs - Office Buildings - 15.2% | |||
Alexandria Real Estate Equities, Inc. | 215,056 | 16,567,914 | |
Boston Properties, Inc. | 186,520 | 17,601,892 | |
Brandywine Realty Trust (SBI) | 551,700 | 6,399,720 | |
Highwoods Properties, Inc. (SBI) | 234,756 | 7,692,954 | |
SL Green Realty Corp. | 261,800 | 19,048,568 | |
TOTAL REITS - OFFICE BUILDINGS | 67,311,048 | ||
REITs - Shopping Centers - 8.8% | |||
Acadia Realty Trust (SBI) | 323,000 | 5,969,040 | |
Developers Diversified Realty Corp. | 383,089 | 5,210,010 | |
Excel Trust, Inc. | 76,900 | 982,782 | |
Glimcher Realty Trust | 232,200 | 2,045,682 | |
Common Stocks - continued | |||
Shares | Value | ||
REAL ESTATE INVESTMENT TRUSTS - CONTINUED | |||
REITs - Shopping Centers - continued | |||
Kimco Realty Corp. | 339,100 | $ 6,134,319 | |
Kite Realty Group Trust | 402,946 | 2,127,555 | |
Vornado Realty Trust | 188,358 | 16,592,456 | |
TOTAL REITS - SHOPPING CENTERS | 39,061,844 | ||
TOTAL REAL ESTATE INVESTMENT TRUSTS | 401,147,908 | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.3% | |||
Diversified Real Estate Activities - 0.4% | |||
Beni Stabili SpA Siiq | 480,300 | 457,641 | |
Coresite Realty Corp. | 88,307 | 1,268,972 | |
TOTAL DIVERSIFIED REAL ESTATE ACTIVITIES | 1,726,613 | ||
Real Estate Development - 0.1% | |||
Helical Bar PLC | 90,300 | 408,432 | |
Real Estate Operating Companies - 1.4% | |||
Brookfield Properties Corp. (d) | 252,030 | 4,423,301 | |
Forest City Enterprises, Inc. Class A (a)(d) | 112,367 | 1,900,126 | |
TOTAL REAL ESTATE OPERATING COMPANIES | 6,323,427 | ||
Real Estate Services - 1.4% | |||
CB Richard Ellis Group, Inc. Class A (a) | 270,662 | 6,005,990 | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 14,464,462 | ||
TOTAL COMMON STOCKS (Cost $369,701,649) | 431,617,325 | ||
Convertible Preferred Stocks - 0.1% | |||
Shares | Value | ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1% | |||
Real Estate Services - 0.1% | |||
Grubb & Ellis Co. 12.00% (e) | 8,100 | $ 720,171 | |
Convertible Bonds - 0.1% | |||
Principal |
| ||
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1% | |||
Real Estate Services - 0.1% | |||
Grubb & Ellis Co. 7.95% 5/1/15 (e) | $ 340,000 | 301,750 | |
Money Market Funds - 6.8% | |||
Shares |
| ||
Fidelity Cash Central Fund, 0.19% (b) | 9,224,761 | 9,224,761 | |
Fidelity Securities Lending Cash Central Fund, 0.21% (b)(c) | 20,791,275 | 20,791,275 | |
TOTAL MONEY MARKET FUNDS (Cost $30,016,036) | 30,016,036 | ||
TOTAL INVESTMENT PORTFOLIO - 104.6% (Cost $400,867,685) | 462,655,282 | ||
NET OTHER ASSETS (LIABILITIES) - (4.6)% | (20,484,240) | ||
NET ASSETS - 100% | $ 442,171,042 | ||
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security 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 $1,021,921 or 0.2% of net assets. |
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 | $ 9,855 |
Fidelity Securities Lending Cash Central Fund | 31,551 |
Total | $ 41,406 |
Other Information |
The following is a summary of the inputs used, as of January 31, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Common Stocks | $ 431,617,325 | $ 431,617,325 | $ - | $ - |
Convertible Preferred Stocks | 720,171 | - | 720,171 | - |
Convertible Bonds | 301,750 | - | 301,750 | - |
Money Market Funds | 30,016,036 | 30,016,036 | - | - |
Total Investments in Securities: | $ 462,655,282 | $ 461,633,361 | $ 1,021,921 | $ - |
Income Tax Information |
At July 31, 2010, the Fund had a capital loss carryforward of approximately $36,010,469 of which $15,429,654 and $20,580,815 will expire in fiscal 2017 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| January 31, 2011 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $20,549,892) - Unaffiliated issuers (cost $370,851,649) | $ 432,639,246 |
|
Fidelity Central Funds (cost $30,016,036) | 30,016,036 |
|
Total Investments (cost $400,867,685) |
| $ 462,655,282 |
Receivable for investments sold | 4,040,062 | |
Receivable for fund shares sold | 963,799 | |
Dividends receivable | 344,617 | |
Interest receivable | 6,795 | |
Distributions receivable from Fidelity Central Funds | 6,093 | |
Prepaid expenses | 1,002 | |
Other receivables | 7,321 | |
Total assets | 468,024,971 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,821,663 | |
Payable for fund shares redeemed | 785,182 | |
Accrued management fee | 202,315 | |
Distribution and service plan fees payable | 101,068 | |
Other affiliated payables | 119,447 | |
Other payables and accrued expenses | 32,979 | |
Collateral on securities loaned, at value | 20,791,275 | |
Total liabilities | 25,853,929 | |
|
| |
Net Assets | $ 442,171,042 | |
Net Assets consist of: |
| |
Paid in capital | $ 403,523,116 | |
Distributions in excess of net investment income | (1,620,002) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (21,519,669) | |
Net unrealized appreciation (depreciation) on investments | 61,787,597 | |
Net Assets | $ 442,171,042 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| January 31, 2011 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price | $ 16.97 | |
|
|
|
Maximum offering price per share (100/94.25 of $16.97) | $ 18.01 | |
Class T: | $ 16.99 | |
|
|
|
Maximum offering price per share (100/96.50 of $16.99) | $ 17.61 | |
Class B: | $ 16.85 | |
|
|
|
Class C: | $ 16.83 | |
|
|
|
Institutional Class: | $ 17.06 | |
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
Financial Statements - continued
Statement of Operations
Six months ended January 31, 2011 (Unaudited) | ||
Investment Income |
|
|
Dividends |
| $ 3,615,399 |
Interest |
| 13,615 |
Income from Fidelity Central Funds |
| 41,406 |
Total income |
| 3,670,420 |
|
|
|
Expenses | ||
Management fee | $ 1,183,538 | |
Transfer agent fees | 637,967 | |
Distribution and service plan fees | 567,030 | |
Accounting and security lending fees | 84,379 | |
Custodian fees and expenses | 17,093 | |
Independent trustees' compensation | 1,168 | |
Registration fees | 73,243 | |
Audit | 25,026 | |
Legal | 1,157 | |
Miscellaneous | 2,127 | |
Total expenses before reductions | 2,592,728 | |
Expense reductions | (12,628) | 2,580,100 |
Net investment income (loss) | 1,090,320 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 29,930,314 | |
Foreign currency transactions | (5,299) | |
Total net realized gain (loss) |
| 29,925,015 |
Change in net unrealized appreciation (depreciation) on investment securities | 27,504,779 | |
Net gain (loss) | 57,429,794 | |
Net increase (decrease) in net assets resulting from operations | $ 58,520,114 | |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 1,090,320 | $ 3,902,914 |
Net realized gain (loss) | 29,925,015 | 36,224,187 |
Change in net unrealized appreciation (depreciation) | 27,504,779 | 74,426,342 |
Net increase (decrease) in net assets resulting | 58,520,114 | 114,553,443 |
Distributions to shareholders from net investment income | (3,454,822) | (3,478,958) |
Share transactions - net increase (decrease) | (1,333,125) | 98,330,995 |
Total increase (decrease) in net assets | 53,732,167 | 209,405,480 |
|
|
|
Net Assets | ||
Beginning of period | 388,438,875 | 179,033,395 |
End of period (including distributions in excess of net investment income of $1,620,002 and undistributed net investment income of $744,500, respectively) | $ 442,171,042 | $ 388,438,875 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended January 31, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 | $ 18.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .04 | .19 | .27 | .30 | .18 | .29 |
Net realized and unrealized gain (loss) | 2.18 | 5.46 | (6.86) | (1.24) | (.17) | 2.85 |
Total from investment operations | 2.22 | 5.65 | (6.59) | (.94) | .01 | 3.14 |
Distributions from net investment income | (.13) | (.18) | (.36) | (.26) | (.18) | (.23) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.13) | (.18) | (.39) | (1.34) I | (1.68) | (1.03) |
Net asset value, end of period | $ 16.97 | $ 14.88 | $ 9.41 | $ 16.39 | $ 18.67 | $ 20.34 |
Total Return B, C, D | 15.02% | 60.38% | (40.19)% | (5.66)% | (.65)% | 18.32% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.20% A | 1.23% | 1.27% | 1.22% | 1.25% | 1.29% |
Expenses net of fee waivers, if any | 1.20% A | 1.23% | 1.25% | 1.22% | 1.25% | 1.25% |
Expenses net of all reductions | 1.20% A | 1.22% | 1.25% | 1.21% | 1.25% | 1.24% |
Net investment income (loss) | .53% A | 1.45% | 2.73% | 1.71% | .81% | 1.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, | $ 148,859 | $ 117,929 | $ 62,422 | $ 109,442 | $ 117,831 | $ 85,000 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.34 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 | $ 18.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .15 | .25 | .26 | .12 | .24 |
Net realized and unrealized gain (loss) | 2.18 | 5.47 | (6.87) | (1.24) | (.16) | 2.84 |
Total from investment operations | 2.20 | 5.62 | (6.62) | (.98) | (.04) | 3.08 |
Distributions from net investment income | (.11) | (.14) | (.33) | (.17) | (.13) | (.20) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.11) | (.14) | (.36) | (1.26) I | (1.63) | (1.00) |
Net asset value, end of period | $ 16.99 | $ 14.90 | $ 9.42 | $ 16.40 | $ 18.64 | $ 20.31 |
Total Return B, C, D | 14.84% | 60.02% | (40.33)% | (5.88)% | (.89)% | 17.98% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.46% A | 1.49% | 1.54% | 1.47% | 1.50% | 1.55% |
Expenses net of fee waivers, if any | 1.46% A | 1.49% | 1.50% | 1.47% | 1.50% | 1.50% |
Expenses net of all reductions | 1.46% A | 1.48% | 1.50% | 1.47% | 1.49% | 1.49% |
Net investment income (loss) | .28% A | 1.19% | 2.48% | 1.45% | .57% | 1.34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, | $ 70,697 | $ 59,529 | $ 40,276 | $ 81,938 | $ 100,621 | $ 91,224 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.26 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 | $ 18.16 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | .09 | .20 | .17 | .01 | .15 |
Net realized and unrealized gain (loss) | 2.16 | 5.42 | (6.81) | (1.23) | (.16) | 2.83 |
Total from investment operations | 2.14 | 5.51 | (6.61) | (1.06) | (.15) | 2.98 |
Distributions from net investment income | (.06) | (.09) | (.27) | (.10) | (.05) | (.15) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.48) | (.80) |
Total distributions | (.06) | (.09) | (.30) | (1.19) I | (1.53) | (.95) |
Net asset value, end of period | $ 16.85 | $ 14.77 | $ 9.35 | $ 16.26 | $ 18.51 | $ 20.19 |
Total Return B, C, D | 14.54% | 59.14% | (40.60)% | (6.37)% | (1.45)% | 17.42% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.96% A | 1.98% | 2.04% | 1.96% | 2.02% | 2.05% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 2.00% | 1.96% | 2.00% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.97% | 2.00% | 1.96% | 2.00% | 1.98% |
Net investment income (loss) | (.22)% A | .70% | 1.98% | .96% | .07% | .84% |
Supplemental Data |
|
|
|
|
|
|
Net assets, | $ 12,329 | $ 12,078 | $ 7,933 | $ 16,879 | $ 25,114 | $ 27,397 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.19 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 | $ 18.17 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.02) | .09 | .19 | .17 | .01 | .15 |
Net realized and unrealized gain (loss) | 2.16 | 5.43 | (6.81) | (1.23) | (.16) | 2.84 |
Total from investment operations | 2.14 | 5.52 | (6.62) | (1.06) | (.15) | 2.99 |
Distributions from net investment income | (.07) | (.10) | (.27) | (.11) | (.05) | (.15) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.07) | (.10) | (.30) | (1.19) I | (1.55) | (.95) |
Net asset value, end of period | $ 16.83 | $ 14.76 | $ 9.34 | $ 16.26 | $ 18.51 | $ 20.21 |
Total Return B, C, D | 14.52% | 59.28% | (40.64)% | (6.35)% | (1.45)% | 17.46% |
Ratios to Average Net Assets F, H |
|
|
|
|
| |
Expenses before reductions | 1.96% A | 1.98% | 2.01% | 1.96% | 2.01% | 2.05% |
Expenses net of fee waivers, if any | 1.96% A | 1.98% | 2.00% | 1.96% | 2.00% | 2.00% |
Expenses net of all reductions | 1.95% A | 1.97% | 2.00% | 1.96% | 2.00% | 1.98% |
Net investment income (loss) | (.22)% A | .71% | 1.98% | .96% | .06% | .84% |
Supplemental Data |
|
|
|
|
|
|
Net assets, | $ 39,293 | $ 31,204 | $ 13,226 | $ 24,984 | $ 36,854 | $ 36,669 |
Portfolio turnover rate G | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.19 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, 2011 | Years ended July 31, | ||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 |
Selected Per-Share Data |
|
|
|
|
| |
Net asset value, beginning of period | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 | $ 18.33 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .23 | .30 | .34 | .24 | .35 |
Net realized and unrealized gain (loss) | 2.19 | 5.47 | (6.90) | (1.23) | (.17) | 2.85 |
Total from investment operations | 2.25 | 5.70 | (6.60) | (.89) | .07 | 3.20 |
Distributions from net investment income | (.15) | (.20) | (.38) | (.35) | (.24) | (.26) |
Distributions from net realized gain | - | - | (.03) | (1.09) | (1.50) | (.80) |
Total distributions | (.15) | (.20) | (.41) | (1.44) H | (1.74) | (1.06) |
Net asset value, end of period | $ 17.06 | $ 14.96 | $ 9.46 | $ 16.47 | $ 18.80 | $ 20.47 |
Total Return B, C | 15.15% | 60.75% | (40.03)% | (5.39)% | (.37)% | 18.61% |
Ratios to Average Net Assets E, G |
|
|
|
|
| |
Expenses before reductions | .96% A | .97% | 1.01% | .95% | .98% | .94% |
Expenses net of fee waivers, if any | .96% A | .97% | 1.00% | .95% | .98% | .94% |
Expenses net of all reductions | .95% A | .96% | 1.00% | .95% | .97% | .92% |
Net investment income (loss) | .78% A | 1.71% | 2.98% | 1.97% | 1.09% | 1.90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, | $ 170,993 | $ 167,699 | $ 55,177 | $ 72,780 | $ 12,259 | $ 7,152 |
Portfolio turnover rate F | 66% A | 60% | 98% | 86% | 84% | 65% |
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 $1.44 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, 2011 (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 C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. 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 may also differ by class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.
Semiannual Report
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The 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, 2011, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
(ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices 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 Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 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. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, 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 | $ 71,382,199 |
Gross unrealized depreciation | (20,822,122) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 50,560,077 |
| |
Tax cost | $ 412,095,205 |
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 $134,133,829 and $135,240,529, 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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 166,179 | $ 3,494 |
Class T | .25% | .25% | 164,784 | - |
Class B | .75% | .25% | 61,446 | 46,085 |
Class C | .75% | .25% | 174,621 | 39,200 |
|
|
| $ 567,030 | $ 88,779 |
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% 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 | $ 27,286 |
Class T | 5,241 |
Class B* | 15,402 |
Class C* | 1,766 |
| $ 49,695 |
* 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, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 198,478 | .30 |
Class T | 100,622 | .31 |
Class B | 18,476 | .30 |
Class C | 52,249 | .30 |
Institutional Class | 268,142 | .30 |
| $ 637,967 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,493 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $3.75 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 $746 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. The lending agent may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,339,200. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $31,551, including $1,906 from securities loaned to FCM.
9. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $12,628 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 1,134,664 | $ 1,234,313 |
Class T | 470,285 | 586,319 |
Class B | 48,095 | 73,937 |
Class C | 150,708 | 151,383 |
Institutional Class | 1,651,070 | 1,433,006 |
Total | $ 3,454,822 | $ 3,478,958 |
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 | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 2,248,264 | 3,838,345 | $ 35,535,246 | $ 50,713,463 |
Reinvestment of distributions | 65,899 | 94,331 | 1,031,847 | 1,168,282 |
Shares redeemed | (1,464,548) | (2,642,928) | (23,191,294) | (33,936,194) |
Net increase (decrease) | 849,615 | 1,289,748 | $ 13,375,799 | $ 17,945,551 |
Class T |
|
|
|
|
Shares sold | 947,671 | 1,600,698 | $ 14,944,020 | $ 21,094,229 |
Reinvestment of distributions | 29,190 | 46,490 | 457,659 | 571,730 |
Shares redeemed | (810,845) | (1,927,214) | (12,858,886) | (25,063,300) |
Net increase (decrease) | 166,016 | (280,026) | $ 2,542,793 | $ (3,397,341) |
Class B |
|
|
|
|
Shares sold | 62,504 | 214,509 | $ 961,674 | $ 2,825,349 |
Reinvestment of distributions | 2,787 | 5,594 | 43,338 | 67,395 |
Shares redeemed | (151,360) | (251,258) | (2,374,144) | (3,248,064) |
Net increase (decrease) | (86,069) | (31,155) | $ (1,369,132) | $ (355,320) |
Class C |
|
|
|
|
Shares sold | 513,489 | 1,050,192 | $ 8,028,597 | $ 14,008,372 |
Reinvestment of distributions | 8,843 | 11,301 | 137,445 | 138,548 |
Shares redeemed | (302,208) | (362,839) | (4,719,368) | (4,691,785) |
Net increase (decrease) | 220,124 | 698,654 | $ 3,446,674 | $ 9,455,135 |
Institutional Class |
|
|
|
|
Shares sold | 2,453,225 | 7,306,218 | $ 38,563,767 | $ 99,355,047 |
Reinvestment of distributions | 72,024 | 57,970 | 1,131,385 | 738,990 |
Shares redeemed | (3,709,560) | (1,990,258) | (59,024,411) | (25,411,067) |
Net increase (decrease) | (1,184,311) | 5,373,930 | $ (19,329,259) | $ 74,682,970 |
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.
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-0311 1.789731.108
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 28, 2011 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | March 28, 2011 |
By: | /s/ Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | March 28, 2011 |